Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Summary of Estimated Fair Values of Financial Instruments

The following tables present estimated fair values of the Company’s financial instruments as of the period indicated, whether or not recognized or recorded in the consolidated balance sheets at the period indicated:

	September 30, 2024				Fair Value Measurements Using
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands; unaudited)
Financial assets
Cash and due from banks	$	45,327	$	45,327	$	45,327	$	—	$	—
Interest earning deposits with other banks	438,699		438,699		438,699		—		—
Investment securities	48,620		49,197		—		49,197		—
Other investments	10,757		10,757		—		8,138		2,619
Loans receivable	3,418,832		3,413,386		—		—		3,413,386
Accrued interest receivable	23,664		23,664		—		23,664		—
Financial liabilities
Deposits	$	3,627,288	3,626,949		$	—	$	3,626,949	$	—
Subordinated debt	44,256		45,783		—		45,783		—
Junior subordinated debentures	3,591		3,498		—		3,498		—
Accrued interest payable	1,070		1,070		—		1,070		—

	December 31, 2023				Fair Value Measurements Using
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands; unaudited)
Financial assets
Cash and due from banks	$	31,345	$	31,345	$	31,345	$	—	$	—
Interest earning deposits with other banks	451,783		451,783		451,783		—		—
Investment securities	150,364		150,545		99,461		51,084		—
Other investments	10,227		10,227		—		7,605		2,622
Loans receivable, net	3,026,092		2,936,917		—		—		2,936,917
Accrued interest receivable	26,819		26,819		—		26,819		—
Financial liabilities
Deposits	$	3,360,363	$	3,359,867	$	—	$	3,359,867	$	—
Subordinated debt	44,144		43,908		—		43,908		—
Junior subordinated debentures	3,590		3,491		—		3,491		—
Accrued interest payable	892		892		—		892		—

Summary of Assets Measured at Fair Value on Recurring Basis

Items measured at fair value on a recurring basis – The following fair value hierarchy table presents information about the Company’s assets that are measured at fair value on a recurring basis at the dates indicated:

	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in thousands; unaudited)
September 30, 2024
Available-for-sale
U.S. Agency collateralized mortgage obligations	$	—	$	38	$	—	$	38
	$	—	$	38	$	—	$	38
December 31, 2023
Available-for-sale
U.S. Treasury securities	$	99,461	$	—	$	—	$	99,461
U.S. Agency collateralized mortgage obligations	—		43		—		43
	$	99,461	$	43	$	—	$	99,504

Summary of Financial Assets and Liabilities Measured at Fair Value on Nonrecurring Basis

Items measured at fair value on a nonrecurring basis – The following table presents financial assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy of the fair value measurements for those assets at the dates indicated:

	Level 1		Level 2		Level 3		Total Fair Value
	(dollars in thousands; unaudited)
September 30, 2024
Collateral dependent loans	$	—	$	—	$	933	$	933
Equity securities	$	—	$	—	$	2,619	$	2,619
Total	$	—	$	—	$	3,552	$	3,552
December 31, 2023
Collateral dependent loans	$	—	$	—	$	7,315	$	7,315
Equity securities	—		—		2,622		2,622
Total	$	—	$	—	$	9,937	$	9,937

Summary of Carrying Value of Equity Securities Without Readily Determinable Fair Values

The following table presents the carrying value of equity securities without readily determinable fair values, as of September 30, 2024, with adjustments recorded during the periods presented for those securities with observable price changes, if applicable. These equity securities are included in other investments on the balance sheet.

•As of September 30, 2024 and December 31, 2023, we had a $2.2 million equity interest in a specialized bank technology company.

•We had a $350,000 equity interest in a technology company as of September 30, 2024 and December 31, 2023.

•We had a $47,000 and $50,000 equity interest in an additional technology company as of September 30, 2024 and December 31, 2023, respectively.

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(dollars in thousands; unaudited)	2024		2023		2024		2023
Carrying value, beginning of period	$	2,622	$	2,572	$	2,622	$	2,572
Purchases	—		—		—		—
Observable price change	(3)		—		(3)		—
Carrying value, end of period	$	2,619	$	2,572	$	2,619	$	2,572

Summary of Assets and Liabilities Classified as Level 3 and Measured at Fair Value on Nonrecurring Basis

The following table provides a description of the valuation technique, unobservable inputs, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a nonrecurring basis at the date indicated:

(unaudited)	Valuation Technique	Unobservable Inputs	September 30, 2024 Weighted Average Rate	December 31, 2023 Weighted Average Rate
Collateral dependent loans	Collateral valuations	Discount to appraised value	8.4%	8.0%