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Note 9 - Fair Value of Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2022
Notes Tables  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

(dollars in thousands)

 

Total

  

(Level 1)

Quoted Prices

in Active

Markets for

Identical Assets

  

(Level 2)

Significant

Other

Observable

Inputs

  

(Level 3)

Significant

Unobservable

Inputs

 
                 

September 30, 2022

                

Assets:

                
                 

U.S. Government agencies

 $18,395  $-  $18,395  $- 

Collateralized mortgage obligations

  321,015   -   321,015   - 

Agency mortgage-backed securities

  416,022   -   416,022   - 

Municipal securities

  45,773   -   45,773   - 

Corporate bonds

  198,316   -   194,808   3,508 

Investment securities available for sale

 $999,521     $996,013  $3,508 

Equity securities

  6,627   6,627   -   - 
                 

Mortgage Loans Held for Sale

 $6,038  $-  $6,038  $- 

SBA Servicing Assets

  4,181   -   -   4,181 

Interest Rate Lock Commitments

  38   -   38   - 

Best Efforts Forward Loan Sales Commitments

  114   -   114   - 

Mandatory Forward Loan Sales Commitments

  94   -   94   - 
                 

Liabilities:

                
                 

Interest Rate Lock Commitments

  60   -   60   - 

Best Efforts Forward Loan Sales Commitments

  6   -   6   - 

Mandatory Forward Loan Sales Commitments

  5   -   5   - 
                 

December 31, 2021

                

Assets:

                
                 

U.S. Government agencies

 $24,928  $-  $24,928  $- 

Collateralized mortgage obligations

  371,549   -   371,549   - 

Agency mortgage-backed securities

  441,483   -   441,483   - 

Municipal securities

  6,940   -   6,940   - 

Corporate bonds

  230,466   -   227,841   2,625 

Investment securities available for sale

 $1,075,366     $1,072,741  $2,625 

Equity securities

  9,173   9,173   -   - 
                 

Mortgage Loans Held for Sale

 $8,538  $-  $8,538  $- 

SBA Servicing Assets

  4,705   -   -   4,705 

Interest Rate Lock Commitments

  378   -   378   - 

Best Efforts Forward Loan Sales Commitments

  5   -   5   - 

Mandatory Forward Loan Sales Commitments

  5   -   5   - 
                 

Liabilities:

                
                 

Interest Rate Lock Commitments

  -   -   -   - 

Best Efforts Forward Loan Sales Commitments

  96   -   96   - 

Mandatory Forward Loan Sales Commitments

  44   -   44   - 
Schedule of Servicing Assets at Fair Value [Table Text Block]
  

Three Months Ended September 30,

 

(dollars in thousands)

 

2022

  

2021

 

Beginning balance, July 1st

 $4,318  $4,641 

Additions

  197   178 

Fair value adjustments

  (334)  (247)

Ending balance, September 30th

 $4,181  $4,572 
  

Nine Months Ended

September 30,

 

(dollars in thousands)

 

2022

  

2021

 

Beginning balance, January 1st

 $4,705  $4,626 

Additions

  480   491 

Fair value adjustments

  (1,004)  (545)

Ending balance, September 30th

 $4,181  $4,572 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
  

Three Months Ended

September 30,

 
  

2022

  

2021

 

Level 3 Investments Only

(dollars in thousands)

 

Corporate

Bonds

  

Corporate

Bonds

 

Balance, July 1st

 $3,109  $2,603 

Unrealized gains (losses)

  399   - 

Proceeds from sales

  -   - 

Realized losses

  -   - 

Balance, September 30th

 $3,508  $2,603 
  

Nine Months Ended

September 30,

 
  

2022

  

2021

 

Level 3 Investments Only

(dollars in thousands)

 

Corporate

Bonds

  

Corporate

Bonds

 

Balance, January 1st

 $2,625  $2,631 

Unrealized gains (losses)

  883   (28)

Proceeds from sales

  -   - 

Realized losses

  -   - 

Balance, September 30th

 $3,508  $2,603 
Fair Value Measurements, Nonrecurring [Table Text Block]

(dollars in thousands)

 

Total

  

(Level 1)

Quoted Prices in Active Markets for Identical Assets

  

(Level 2)

Significant Other Observable Inputs

  

(Level 3)

Significant Unobservable Inputs

 

September 30, 2022

                

Individually evaluated loans

 $514  $-  $-  $514 

Other real estate owned

  876   -   -   876 
                 

December 31, 2021

                

Impaired loans

 $11,664  $-  $-  $11,664 

Other real estate owned

  360   -   -   360 
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]
  

Quantitative Information about Level 3 Fair Value Measurements

 

Asset Description

 

Fair Value

 

Valuation Technique

 

Unobservable Input

 

Range (Weighted Average)

 

September 30, 2022

            

Corporate bonds

 $3,508 

Discounted Cash Flows

 

Discount Rate

   (9.35%) 
             

SBA servicing assets

 $4,318 

Discounted Cash Flows

 

Conditional Prepayment Rate Discount Rate

   (14.85%)(12.25%) 
             

Individually evaluated loans

 $755 

Appraised Value of Collateral (1)

 

Liquidation expenses (2)

   13% - 16%(14%) (3) 
             

Other real estate owned

 $876 

Appraised Value of Collateral (1)

 

Liquidation expenses (2)

   12% - 34%(24%) (3) 
     

Sales Price

 

Liquidation expenses (2)

   (17%) (3) 
             

December 31, 2021

            

Corporate bonds

 $2,625 

Discounted Cash Flows

 

Discount Rate

   (3.42%) 
             

SBA servicing assets

 $4,705 

Discounted Cash Flows

 

Conditional Prepayment Rate Discount Rate

   (13.93%)(10.00%) 
             
     

Appraised Value of Collateral (1)

 

Liquidation expenses (2)

   11% - 27%(16%) (3) 
             

Impaired loans

 $11,664 

Sales Price

 

Liquidation expenses (2)

   (12%) (3) 
             
     

Estimated Value of Insurance Proceeds (4)

       
             

Other real estate owned

 $360 

Appraised Value of Collateral (1)

 

Liquidation expenses (2)

   (19%) (3) 
     

Sales Price

 

Liquidation expenses (2)

   (13%) (3) 
Fair Value Option, Disclosures [Table Text Block]
  

Carrying

Amount

  

Aggregate Unpaid

Principal Balance

  

Excess Carrying

Amount Over

Aggregate Unpaid

Principal Balance

 

September 30, 2022

 $6,038  $5,994  $44 
             

December 31, 2021

 $8,538  $8,241  $297 
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block]

(dollars in thousands)

 

September 30, 2022

  

December 31, 2021

 
         

SBA Servicing Asset

        

Fair Value of SBA Servicing Asset

 $4,181  $4,705 

Composition of SBA Loans Serviced for Others

        

Fixed-rate SBA loans

  3%  4%

Adjustable-rate SBA loans

  97%  96%

Total

  100%  100%

Weighted Average Remaining Term (in years)

 

19.5

  

19.6

 

Prepayment Speed

  14.85%  13.93%

Effect on fair value of a 10% increase

 $(169) $(204)

Effect on fair value of a 20% increase

  (326)  (393)

Weighted Average Discount Rate

  12.25%  10.00%

Effect on fair value of a 10% increase

 $(152) $(148)

Effect on fair value of a 20% increase

  (293)  (288)
Fair Value, by Balance Sheet Grouping [Table Text Block]
  

Fair Value Measurements as of September 30, 2022

 

(dollars in thousands)

 

Carrying

Amount

  

Fair

Value

  

Quoted Prices

in Active

Markets for

Identical Assets

(Level 1)

  

Significant

Other

Observable

Inputs

(Level 2)

  

Significant

Unobservable

Inputs

(Level 3)

 

Balance Sheet Data

                    

Financial assets:

                    

Cash and cash equivalents

 $52,452  $52,452  $52,452  $-  $- 

Investment securities available for sale

  999,521   999,521   -   996,013   3,508 

Investment securities held to maturity

  1,562,376   1,267,546   -   1,267,546   - 

Equity securities

  6,627   6,627   6,627   -   - 

Restricted stock

  21,907   N/A   N/A   N/A   N/A 

Loans held for sale

  10,823   10,823   -   6,038   4,785 

Loans receivable, net

  3,035,597   3,032,619   -   -   3,032,619 

SBA servicing assets

  4,181   4,181   -   -   4,181 

Accrued interest receivable

  18,783   18,783   -   18,783   - 

Interest rate lock commitments

  38   38   -   38   - 

Best efforts forward loan sales commitments

  114   114   -   114   - 

Mandatory forward loan sales commitments

  94   94   -   94   - 
                     

Financial liabilities:

                    

Deposits

                    

Demand, savings and money market

 $5,133,401  $5,133,401  $-  $5,133,401  $- 

Time

  118,183   112,233   -   112,233   - 

Subordinated debt

  11,282   8,798   -   -   8,798 

Other borrowings

  442,500   442,500   -   442,500   - 

Accrued interest payable

  401   401   -   401   - 

Interest rate lock commitments

  60   60   -   60   - 

Best efforts forward loan sales commitments

  6   6   -   6   - 

Mandatory forward loan sales commitments

  5   5   -   5   - 
                     

Off-Balance Sheet Data

                    

Commitments to extend credit

  -   -   -   -   - 

Standby letters-of-credit

  -   -   -   -   - 
  Fair Value Measurements as of December 31, 2021 
(dollars in thousands) 

Carrying

Amount

  

Fair

Value

  

Quoted Prices

in Active

Markets for

Identical

Assets

(Level 1

  

Significant

Other

Observable

Inputs

(Level 2)

  

Significant

Unobservable

Inputs

(Level 3)

 
Balance Sheet Data                    

Financial assets:

                    

Cash and cash equivalents

 $118,884  $118,884  $118,884  $-  $- 

Investment securities available for sale

  1,075,366   1,075,366   -   1,072,741   2,625 

Investment securities held to maturity

  1,660,292   1,647,360   -   1,647,360   - 

Equity securities

  9,173   9,173   9,173   -   - 

Restricted stock

  3,510   N/A   N/A   N/A   N/A 

Loans held for sale

  13,762   13,762   -   8,538   5,224 

Loans receivable, net

  2,488,401   2,475,944   -   -   2,475,944 

SBA servicing assets

  4,705   4,705   -   -   4,705 

Accrued interest receivable

  15,073   15,073   -   15,073   - 

Interest rate lock commitments

  378   378   -   378   - 

Best efforts forward loan sales commitments

  5   5   -   5   - 

Mandatory forward loan sales commitments

  5   5   -   5   - 
                     

Financial liabilities:

                    

Deposits

                    

Demand, savings and money market

 $4,993,235  $4,993,235  $-  $4,993,235  $- 

Time

  197,945   197,764   -   197,764   - 

Subordinated debt

  11,278   8,644   -   -   8,644 

Accrued interest payable

  550   550   -   550   - 

Interest rate lock commitments

  -   -   -   -   - 

Best efforts forward loan sales commitments

  96   96   -   96   - 

Mandatory forward loan sales commitments

  44   44   -   44   - 
                     

Off-Balance Sheet Data

                    

Commitments to extend credit

  -   -   -   -   - 

Standby letters-of-credit

  -   -   -   -   -