Fair Value (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The Company has categorized its financial instruments measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021 as follows:


Fair Value of Financial Instruments
(in thousands)
June 30, 2022	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Investment securities available for sale
U.S. Treasuries	$	168,649	$	168,649	$	—	$	—

Municipal	8,442		—		8,442		—
Corporate	4,759		—		4,759		—
Asset-backed securities	9,415		—		9,415		—
Mortgage-backed securities	35,244		—		35,244		—
Total	$	226,509	$	168,649	$	57,860	$	—
Marketable equity securities	$	245	$	—	$	245	$	—
Loans held for sale	$	11,708	$	—	$	11,708	$	—
Derivative assets	$	12	$	—	$	12	$	—
Derivative liabilities	$	34	$	—	$	34	$	—


December 31, 2021
Investment securities available for sale
U.S. Treasuries	$	131,001	$	131,001	$	—	$	—

Municipal	10,474		—		10,474		—
Corporate	4,934		—		4,934		—
Asset-backed securities	10,140		—		10,140		—
Mortgage-backed securities	27,906		—		27,906		—
Total	$	184,455	$	131,001	$	53,454	$	—
Marketable equity securities	$	245	$	—	$	245	$	—
Loans held for sale	$	15,989	$	—	$	15,989	$	—
Derivative assets	$	34	$	—	$	34	$	—
Derivative liabilities	$	16	$	—	$	16	$	—

Schedule of Fair Value of Loans Held For Sale

The following table reflects the difference between the fair value carrying amount of loans held for sale, measured at fair value under FASB ASC 825-10, and the aggregate unpaid principal amount the Company is contractually entitled to receive at maturity:


Fair Value of Loans Held for Sale
(in thousands)	June 30, 2022		December 31, 2021
Aggregate fair value	$	11,708	$	15,989
Contractual principal	10,851		14,504
Difference	$	857	$	1,485

Fair Value Measurements, Nonrecurring

The Company has categorized its impaired loans and foreclosed real estate as follows:


Fair Value of Impaired Loans and Foreclosed Real Estate
(in thousands)	June 30, 2022		December 31, 2021
Impaired loans


Level 3 inputs	$	6,893	$	11,121
Total	$	6,893	$	11,121

Foreclosed real estate


Level 3 inputs	$	—	$	86
Total	$	—	$	86

Fair Value Measurement Inputs and Valuation Techniques

The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at June 30, 2022 and December 31, 2021:

Unobservable Inputs

Valuation Technique

Unobservable Inputs

Range of Inputs

Impaired Loans

Appraised Value/Discounted Cash Flows

Discounts to appraisals or cash flows for estimated holding and/or selling costs

11 to 25%

Foreclosed Real Estate

Appraised Value/Comparable Sales

Discounts to appraisals for estimated holding and/or selling costs

11 to 25%

Fair Value Measurements, Recurring and Nonrecurring


Fair Value of Selected Financial Instruments
	June 30, 2022				December 31, 2021
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Level 1
Cash and due from banks	$	14,776	$	14,776	$	42,914	$	42,914
Interest bearing deposits at other financial institutions	234,823		234,823		136,824		136,824
Federal funds sold	1,285		1,285		3,657		3,657
Level 3

Loans receivable, net (1)	$	1,597,122	$	1,568,011	$	1,607,086	$	1,598,228
Marketable equity securities	245		245		245		245
Restricted investments	3,615		3,615		3,498		3,498

Financial liabilities
Level 1
Noninterest bearing deposits	$	842,363	$	842,363	$	787,650	$	787,650

Level 3
Interest bearing deposits	$	1,046,557	$	1,047,194	$	1,009,487	$	1,011,121
FHLB advances and other borrowed funds	34,062		32,979		34,062		34,263

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(1) Includes SBA-PPP loans and portfolio loans.