Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of financial instruments carried at fair value on a recurring basis

The following table details the financial instruments carried at fair value on a recurring basis at September 30, 2022 and December 31, 2021, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value. The Company had no transfers into or out of Levels 1, 2 or 3 during the nine months ended September 30, 2022 and for the year ended December 31, 2021.


	Fair Value
(In thousands)	Level 1		Level 2		Level 3
September 30, 2022:
Marketable equity securities	$	1,973	$	—	$	—
Available for sale investment securities:
U.S. Government and agency obligations	41,605		37,832		—

Corporate bonds	—		15,658		—
Derivative asset	—		12,987		—
Derivative liability	—		4,310		—

December 31, 2021:
Marketable equity securities	$	2,168	$	—	$	—
Available for sale investment securities:
U.S. Government and agency obligations	25,569		49,620		—

Corporate bonds	—		15,009		—
Derivative asset	—		3,628		—
Derivative liability	—		16,780		—

Schedule of financial instruments carried at fair value on a nonrecurring basis

The following table details the financial instruments measured at fair value on a nonrecurring basis at September 30, 2022 and December 31, 2021, and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value:


	Fair Value
(In thousands)	Level 1		Level 2		Level 3
September 30, 2022:
Impaired loans	$	—	$	—	$	42,327

Servicing asset, net	—		—		839


December 31, 2021:
Impaired loans	$	—	$	—	$	44,313
Servicing asset, net	—		—		804
Assets held for sale	—		—		2,268

Schedule of quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on a nonrecurring basis

The following table presents information about quantitative inputs and assumptions for Level 3 financial instruments carried at fair value on a nonrecurring basis at September 30, 2022 and December 31, 2021:


	Fair Value		Valuation Methodology	Unobservable Input	Range
	(Dollars in thousands)
September 30, 2022:
Impaired loans	$	17,795	Appraisals	Discount to appraised value	8.00%
	24,532		Discounted cash flows	Discount rate	3.00 - 6.50%
	$	42,327



Servicing asset, net	$	839	Discounted cash flows	Discount rate	10.00 - 11.50%(1)
				Prepayment rate	3.00 - 17.00%

December 31, 2021:
Impaired loans	$	18,548	Appraisals	Discount to appraised value	8.00%
	25,765		Discounted cash flows	Discount rate	3.00 - 6.75%
	$	44,313

Servicing asset, net	$	804	Discounted cash flows	Discount rate	10.00%(2)
				Prepayment rate	3.00 - 17.00%

Assets held for sale	$	2,268	Sale & income approach	Adjustment to valuation and cost to sell	N/A

(1) Servicing liabilities totaling $1 thousand were valued using a discount rate of 3.5%.

(2) Servicing liabilities totaling $14 thousand were valued using a discount rate of 0.8%.