Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments at June 30, 2023 and December 31, 2022 are as follows:

	Carrying Amount		Fair Value Measurements
(Dollars in thousands)			Level 1		Level 2		Level 3		Total
As of June 30, 2023:
Financial assets:
Cash and cash equivalents	$	207,667	$	207,667	$	—	$	—	$	207,667
Investment securities:
Available for sale		44,867		—		44,687		—		44,687
Held to maturity		106,262				86,750		7,387		94,137
Loans, net		1,569,546		—		—		1,503,599		1,503,599
Accrued interest receivable		7,289		—		957		6,292		7,249
Financial liabilities:
Deposits	$	1,738,296	$	1,405,104	$	333,711	$	—	$	1,738,815
Subordinated debt		54,221		—		—		49,378		49,378
Accrued interest payable		4,047		—		3,379		668		4,047
As of December 31, 2022:
Financial assets:
Cash and due from banks	$	232,382	$	232,382	$	—	$	—	$	232,382
Investment securities:
Available for sale		47,012		—		47,012		—		47,012
Held to maturity		108,866				89,433		7,450		96,883
Loans, net		1,578,456				—		1,519,903		1,519,903
Accrued interest receivable		7,769		—		926		6,843		7,769
Financial liabilities:
Deposits	$	1,791,740	$	1,520,502	$	271,178	$	—	$	1,791,680
Other borrowings		—		—		—		—		—
Subordinated debt		54,152		—		—		49,027		49,027
Accrued interest payable		1,678		—		1,007		671		1,678

Summary of Assets at Fair Value on a Recurring Basis

The Company is required or permitted to record the following assets at fair value on a recurring basis as of June 30, 2023 and December 31, 2022.

(Dollars in thousands)	Fair Value		Level 1		Level 2		Level 3
As of June 30, 2023:
Investments available for sale:
Mortgage backed securities	$	16,006	$	—	$	16,006	$	—
Government agencies		28,861		—		28,861		—
Total assets measured at fair value on a recurring basis	$	44,867	$	—	$	44,867	$	—
As of December 31, 2022:
Investments available for sale:
Mortgage backed securities	$	17,758	$	—	$	17,758	$	—
Government agencies		28,766		—		28,766		—
Corporate bonds		488		—		488		—
Total assets measured at fair value on a recurring basis	$	47,012	$	—	$	47,012	$	—

Summary of Impaired Loans Measured at Fair Value on a Non-Recurring Basis

The following table summarizes impaired loans measured at fair value on a non-recurring basis as of June 30, 2023 and December 31, 2022.

	Carrying Amount		Fair Value Measurements
(Dollars in thousands)			Level 1		Level 2		Level 3
As of June 30, 2023:
Individually evaluated loans - SBA	$	181	$	—	$	—	$	181
Total assets measured at fair value on a non-recurring basis	$	181	$	—	$	—	$	181
As of December 31, 2022:
Impaired loans - Commercial	$	1,028	$	—	$	—	$	1,028
Impaired loans - SBA		222		—		—		222
Total assets measured at fair value on a non-recurring basis	$	1,250	$	—	$	—	$	1,250