Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

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, 2021				Fair Value Measurements Using
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
Financial assets
Cash and due from banks	$	31,722	$	31,722	$	31,722	$	-	$	-
Interest earning deposits with other banks		638,003		638,003		638,003		-		-
Investment securities		34,924		35,020		32,498		2,522		-
Other investments		8,349		8,349		-		6,027		2,322
Loans receivable		1,685,460		1,682,602		-		-		1,682,602
Accrued interest receivable		7,549		7,549		-		7,549		-
Financial liabilities
Deposits	$	2,223,540		2,223,498	$	-	$	2,223,498	$	-
FHLB advances		24,999		24,619		-		24,619		-
Subordinated debt		24,269		22,021		-		22,021		-
Junior subordinated debentures		3,586		2,745		-		2,745		-
Accrued interest payable		147		147		-		147		-

	December 31, 2020				Fair Value Measurements Using
	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
	(dollars in thousands)
Financial assets
Cash and due from banks	$	18,965	$	18,965	$	18,965	$	-	$	-
Interest earning deposits with other banks		144,152		144,152		144,152		-		-
Investment securities		23,247		23,356		20,028		3,328		-
Other investments		6,059		6,059		-		5,209		850
Loans receivable, net		1,527,876		1,535,541		-		-		1,535,541
Accrued interest receivable		8,616		8,616		-		8,616		-
Financial liabilities
Deposits	$	1,421,307	$	1,421,534	$	-	$	1,421,534	$	-
Paycheck Protection Program Liquidity Facility		153,716		153,716		-		153,716		-
FHLB advances		24,999		24,787		-		24,787		-
Subordinated debt		9,993		9,913		-		9,913		-
Junior subordinated debentures		3,584		2,707		-		2,707		-
Accrued interest payable		531		531		-		531		-

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)
September 30, 2021
Available-for-sale
U.S. Treasury securities	$	32,498	$	-	$	-	$	32,498
U.S. Agency collateralized mortgage obligations		-		77		-		77
U.S. Agency residential mortgage-backed securities		-		5		-		5
Municipals		-		258		-		258
	$	32,498	$	340	$	-	$	32,838
December 31, 2020
Available-for-sale
U.S. Treasury securities	$	20,028	$	-	$	-	$	20,028
U.S. Agency collateralized mortgage obligations		-		100		-		100
U.S. Agency residential mortgage-backed securities		-		10		-		10
Municipals		-		261		-		261
	$	20,028	$	371	$	-	$	20,399

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

The following table presents the carrying value of equity securities without readily determinable fair values, as of September 30, 2021, with adjustments recorded during the periods presented for those securities with observable price changes.

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2021		2020		2021		2020
Carrying value, beginning of period	$	850	$	750	$	850	$	500
Addition of equity securities		-		-		-		250
Upward carrying value changes		1,472		-		1,472		-
Carrying value, end of period	$	2,322	$	750	$	2,322	$	750

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 dates indicated:

	Valuation Technique	Unobservable Inputs	September 30, 2021 Weighted Average Rate	December 31, 2020 Weighted Average Rate
Impaired loans	Collateral valuations	Discount to appraised value	9%	9%

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, 2021, with adjustments recorded during the periods presented for those securities with observable price changes.

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2021		2020		2021		2020
Carrying value, beginning of period	$	850	$	750	$	850	$	500
Addition of equity securities		-		-		-		250
Upward carrying value changes		1,472		-		1,472		-
Carrying value, end of period	$	2,322	$	750	$	2,322	$	750

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)
September 30, 2021
Impaired loans	$	-	$	-	$	451	$	451
Equity securities						2,322		2,322
Total	$	-	$	-	$	2,773	$	2,773
December 31, 2020
Impaired loans	$	-	$	-	$	712	$	712
Equity securities						850		850
Total	$	-	$	-	$	1,562	$	1,562