Fair Value of Assets and liabilities (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021.

March 31, 2022 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Interest-bearing deposits	$	—	$	1,250	$	—	$	1,250
Available for sale investment securities		—		47,075		—		47,075
Equity securities		1,859		—		—		1,859
Total(1)	$	1,859	$	48,325	$	—	$	50,184

(1)Total unrealized losses of $1.7 million, net of tax, was included in accumulated other comprehensive loss for the three months ended March 31, 2022 related to these assets.

December 31, 2021 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Interest-bearing deposits	$	—	$	1,250	$	—	$	1,250
Available for sale investment securities		—		44,772		—		44,772
Equity securities		1,950		—		—		1,950
Total(1)	$	1,950	$	46,022	$	—	$	47,972

(1)Total unrealized losses of $1.0 million, net of tax, was included in accumulated other comprehensive income (loss) for the year ended December 31, 2021 related to these assets.

Summary of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

The following tables present the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a non-recurring basis as of March 31, 2022 and December 31, 2021.

March 31, 2022 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Equity investments	$	—	$	—	$	10,076	$	10,076
Impaired loans		—		—		32,891		32,891
Loan collateral in process of foreclosure		—		—		33,834		33,834
Total	$	—	$	—	$	76,801	$	76,801

December 31, 2021 (Dollars in thousands)	Level 1		Level 2		Level 3		Total
Assets
Equity investments	$	—	$	—	$	9,726	$	9,726
Impaired loans		—		—		35,571		35,571
Loan collateral in process of foreclosure		—		—		37,430		37,430
Total	$	—	$	—	$	82,727	$	82,727

Summary of Valuation Techniques and Significant Unobservable Inputs Used in Non-Recurring Level 3 Fair Value Measurements of Assets and Liabilities

The valuation techniques and significant unobservable inputs used in non-recurring level 3 fair value measurements of assets and liabilities as of March 31, 2022 and December 31, 2021.

(Dollars in thousands)	Fair Value at March 31, 2022		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Equity investments	$	9,803	Investee financial analysis	Financial condition and operating performance of the borrower (1)	N/A
				Collateral support	N/A
		273	Precedent market transaction	Offering price	$8.73 / share
Impaired loans		32,891	Market approach	Historical and actual loss experience	0.11% - 6.00%
					60% of balance
				Transfer prices (2)	$0.0 - 79.5
				Collateral value	N/A
Loan collateral in process of foreclosure		33,834	Market approach	Transfer prices (2)	$0.0 - 79.5
				Collateral value (3)	$2.3 - 42.8

(1)Includes projections based on revenue, EBITDA, leverage, and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry, and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.

(2)Represents amount net of liquidation costs.

(3)Relates to the recreation portfolio.

(Dollars in thousands)	Fair Value at December 31, 2021		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)
Equity investments	$	9,453	Investee financial analysis	Financial condition and operating performance of the borrower (1)	N/A
				Collateral support	N/A
		273	Precedent market transaction	Offering price	$8.73 / share
Impaired loans		35,571	Market approach	Historical and actual loss experience	1.50% - 6.00%
					60% of balance
				Transfer prices (2)	$0.0 - 79.5
				Collateral value	N/A
Loan collateral in process of foreclosure		37,430	Market approach	Transfer prices (2)	$0.0 - 79.5
				Collateral value (3)	$3.6 - 49.8

(1)Includes projections based on revenue, EBITDA, leverage, and liquidation amounts. These assumptions are based on a variety of factors, including economic conditions, industry, and market developments, market valuations of comparable companies, and company-specific developments, including exit strategies and realization opportunities.

(2)Represents amount net of liquidation costs.

(3)Relates to the recreation portfolio.