Fair Value Measurements

9 Months Ended

Sep. 30, 2022

Fair Value Measurements

Fair Value Measurements

NOTE 8 — Fair Value Measurements

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values.

Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

For available-for-sale securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2).

Assets and liabilities measured at fair value on a recurring basis are summarized below:

	Fair Value Measurements Using
	Quoted Prices In Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	(Level 1)		(Level 2)		(Level 3)
	(In thousands)
September 30, 2022
Assets
Available-for-sale securities
Mortgage-backed securities – agency	$	—	$	94,071	$	—
CMOs – agency		—		17,304		—
Total	$	—	$	111,375	$	—
December 31, 2021
Assets
Available-for-sale securities
Mortgage-backed securities – agency	$	—	$	120,881	$	—
CMOs – agency		—		27,503		—
Total	$	—	$	148,384	$	—

There were no transfers between Level 1 and Level 2 during the three and nine months ended September 30, 2022 and 2021.

There were no assets at fair value measured on a nonrecurring basis at September 30, 2022. The legacy NFL consumer loan portfolio was measured on a nonrecurring basis and assigned a Level 3 fair value of $14.1 million at December 31, 2021.

The following tables present the carrying amounts and fair values (represents exit price) of financial instruments not carried at fair value at September 30, 2022 and December 31, 2021:

	Fair Value Measurement at September 30, 2022, Using:
	Carrying
	Value		(Level 1)		(Level 2)		(Level 3)		Total
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	182,125	$	1,217	$	180,908	$	—	$	182,125
Securities purchased under agreements to resell, at cost		50,225		—		—		50,225		50,225
Securities, held-to-maturity		80,102		—		71,436		—		71,436
Securities, restricted, at cost		2,810		N/A		N/A		N/A		N/A
Loans held for investment, net		864,229		—		—		856,612		856,612
Accrued interest receivable		5,228		—		298		4,728		5,026
Financial Liabilities:
Time deposits		18,928		—		18,813		—		18,813
Demand and other deposits		1,168,529		1,168,529		—		—		1,168,529
Secured borrowings		47		—		47		—		47
Accrued interest payable		10		—		10		—		10

	Fair Value Measurement at December 31, 2021, Using:
	Carrying
	Value		(Level 1)		(Level 2)		(Level 3)		Total
	(In thousands)
Financial Assets:
Cash and cash equivalents	$	149,156	$	2,202	$	146,954	$	—	$	149,156
Securities purchased under agreements to resell, at cost		50,271		—		—		50,271		50,271
Securities, restricted, at cost		2,680		N/A		N/A		N/A		N/A
Loans held for investment, net		775,441		—		—		774,114		774,114
Accrued interest receivable		4,197		—		252		3,945		4,197
Financial Liabilities:
Time deposits		19,312		—		19,330		—		19,330
Demand and other deposits		1,009,097		1,009,097		—		—		1,009,097
Secured borrowings		48		—		48		—		48