Fair Value (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Summary of Financial Assets Measured at Fair Value on Recurring Basis

The following tables present the balances of financial assets measured at fair value on a recurring basis as of the dates stated.

	December 31, 2021
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Securities available for sale:
State and municipals	$	51,113	$	—	$	51,113	$	—
U.S. Treasury and agencies	$	64,066	$	—	$	64,066	$	—
Mortgage backed securities		219,110		—		219,110		—
Corporate bonds		39,243		—		39,243		—
Total securities available for sale	$	373,532	$	—	$	373,532	$	—
Other assets:
Rabbi trust assets	$	994	$	994	$	—	$	—
Mortgage derivative asset		1,876		—		1,876		—
Interest rate swap asset		199		—		199		—
Other liabilities:
Mortgage derivative liability	$	75	$	—	$	75	$	—
Interest rate swap liability		199		—		199		—

	December 31, 2020
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Securities available for sale:
State and municipals	$	14,259	$	—	$	14,259	$	—
U.S. Treasury and agencies		2,409		—		2,409		—
Mortgage backed securities		72,635		—		72,635		—
Corporate bonds		20,172		—		20,172		—
Total investment securities available for sale	$	109,475	$	—	$	109,475	$	—
Other assets:
Mortgage derivative asset	$	5,293	$	—	$	5,293	$	—
Interest rate swap asset		1,716		—		1,716		—
Other liabilities:
Mortgage derivative liability	$	1,569	$	—	$	1,569	$	—
Interest rate swap liability		2,735		—		2,735		—

Summary of Change in MSR Assets

The following tables present the change in MSR assets as of and for the periods stated.

(Dollars in thousands)	MSR Assets
Balance, December 31, 2020	$	7,084
Acquired in Bay Banks Merger		997
Additions		11,809
Write-offs		(959	)
Amortization		(2,462	)
Impairments		—
Fair value adjustments		4,484
Balance, December 31, 2021 - Fair value	$	20,953
Balance, December 31, 2021 - Amortized cost	$	16,469
(Dollars in thousands)	MSR Assets
Balance, December 31, 2019	$	—
Additions		7,539
Write-offs		(61	)
Amortization		(391	)
Impairments		(3	)
Fair value adjustments		207
Balance, December 31, 2020 - Fair value	$	7,291
Balance, December 31, 2020 - Amortized cost	$	7,084

Summary of Assets Measured at Fair Value on Nonrecurring Basis

The following tables summarize assets that were measured at fair value on a nonrecurring basis as of the dates stated.

	December 31, 2021
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Impaired loans, net	$	8,344	$	—	$	—	$	8,344
Loans held for sale		121,943		—		121,943		—
OREO		157		—		—		157

	December 31, 2020
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Impaired loans, net	$	2,187	$	—	$	—	$	2,187
Loans held for sale		152,931		—		152,931		—

Summary of Quantitative Information about Level 3 Fair Value Measurements

The following tables present quantitative information about Level 3 fair value measurements as of the dates stated.

(Dollars in thousands)	Balance as of December 31, 2021		Unobservable Input	Weighted Average
Impaired loans, net
Discounted appraised value technique	$	8,108	Selling Costs		7	%
Discounted cash flows technique		236	Discount Rate	4% - 7%
OREO
Discounted appraised value technique		157	Discount Rate		7	%

(Dollars in thousands)	Balance as of December 31, 2020		Unobservable Input	Weighted Average
Impaired loans, net
Discounted appraised value technique	$	2,097	Selling Costs		10	%
Discounted cash flows technique		90	Discount Rate		6	%

Summary of Estimated Fair Values and Related Carrying Amounts of Financial Instruments

The following tables present estimated fair values and related carrying amounts of the Company’s financial instruments as of the dates stated.

	December 31, 2021
					Fair Value Measurements at
(Dollars in thousands)	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	130,643	$	130,643	$	130,643	$	—	$	—
Federal funds sold		43,903		43,903		43,903		—		—
Securities available for sale		373,532		373,532		—		373,532		—
Restricted and other equity investments		22,518		22,518		—		22,518		—
PPP loans receivable, net		30,406		30,406		—		—		30,406
Loans held for investment, net		1,765,051		1,766,820		—		—		1,766,820
Accrued interest receivable		9,573		9,573		—		9,573		—
Bank owned life insurance		46,545		46,545		—		46,545		—
Financial Liabilities
Noninterest-bearing deposits	$	706,088	$	706,088	$	706,088	$	—	$	—
Interest-bearing demand and money market deposits		941,805		941,805		—		941,805		—
Savings deposits		150,376		150,376		—		150,376		—
Time deposits		499,502		503,968		—		—		503,968
FHLB borrowings		10,111		9,943		—		9,943		—
FRB borrowings		17,901		17,901		—		17,901		—
Subordinated notes, net		39,986		41,388		—		—		41,388

	December 31, 2020
					Fair Value Measurements at
(Dollars in thousands)	Carrying Value		Fair Value		Level 1		Level 2		Level 3
Financial Assets
Cash and due from banks	$	117,945	$	117,945	$	117,945	$	—	$	—
Federal funds sold		775		775		775		—		—
Securities available for sale		109,475		109,475		—		109,475		—
Restricted and other equity investments		11,173		11,173		—		11,173		—
PPP loans receivable, net		288,533		288,533		—		—		288,533
Loans held for investment, net		714,334		715,674		—		—		715,674
Accrued interest receivable		5,428		5,428		—		5,428		—
Bank owned life insurance		15,724		15,724		—		15,724		—
Financial Liabilities
Noninterest-bearing deposits	$	333,051	$	333,051	$	333,051	$	—	$	—
Interest-bearing demand and money market deposits		282,263		282,263		—		282,263		—
Savings deposits		78,352		78,352		—		78,352		—
Time deposits		251,443		257,647		—		—		257,647
FHLB borrowings		115,000		114,983				114,983		—
FRB borrowings		281,650		281,650		—		281,650		—
Subordinated notes, net		24,506		25,830		—		—		25,830