XML 43 R34.htm IDEA: XBRL DOCUMENT v3.22.2.2
Fair Value Disclosures (Tables)
 9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets and liabilities measured at fair value on a recurring basis are summarized in the table below.
(Dollars in thousands)Fair Value Measurements UsingTotal
Fair Value
September 30, 2022Level 1Level 2Level 3
Assets measured at fair value on a recurring basis
Securities available for sale
Mortgage-backed securities, residential$— $44,675 $— $44,675 
Asset-backed securities— 6,476 — 6,476 
State and municipal— 14,262 — 14,262 
CLO securities— 169,708 — 169,708 
Corporate bonds— 1,249 — 1,249 
SBA pooled securities— 2,064 — 2,064 
$— $238,434 $— $238,434 
Equity securities with readily determinable fair values
Mutual fund$4,916 $— $— $4,916 
Loans held for sale$— $78 $— $78 
Indemnification asset$— $— $4,173 $4,173 
Revenue share asset$— $— $6,178 $6,178 
Liabilities measured at fair value on a recurring basis
Return of premium liability$— $— $570 $570 
(Dollars in thousands)Fair Value Measurements UsingTotal
Fair Value
December 31, 2021Level 1Level 2Level 3
Assets measured at fair value on a recurring basis
Securities available for sale
Mortgage-backed securities, residential$— $37,449 $— $37,449 
Asset-backed securities— 6,764 — 6,764 
State and municipal— 26,825 — 26,825 
CLO Securities— 106,634 — 106,634 
Corporate bonds— 2,056 — 2,056 
SBA pooled securities— 2,698 — 2,698 
$— $182,426 $— $182,426 
Equity securities with readily determinable fair values
Mutual fund$5,504 $— $— $5,504 
Loans held for sale$— $7,330 $— $7,330 
Derivative financial instruments (cash flow hedges)
Interest rate swap$— $6,164 $— $6,164 
Indemnification asset$— $— $4,786 $4,786 
Reconciliation of Opening Balance to Closing Balance of Fair Value of Contingent Consideration A reconciliation of the opening balance to the closing balance of the fair value of the indemnification asset is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands)2022202120222021
Beginning balance$4,377 $5,246 $4,786 $36,225 
Indemnification asset recognized in business combination— — — — 
Change in fair value of indemnification asset recognized in earnings(204)(460)(613)4,194 
Indemnification reduction— — — (35,633)
Ending balance$4,173 $4,786 $4,173 $4,786 
A reconciliation of the opening balance to the closing balance of the fair value of the revenue share asset is as follows:
(Dollars in thousands)Three Months Ended September 30, 2022Nine Months Ended September 30, 2022
Beginning balance$5,210 $— 
Revenue share asset recognized 1,027 6,237 
Change in fair value of revenue share asset recognized in earnings171 171 
Revenue share payments received(230)(230)
Ending balance$6,178 $6,178 
A reconciliation of the opening balance to the closing balance of the fair value of the return of premium liability is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands)2022202120222021
Beginning balance$708 $— $— $— 
Return of premium liability recognized in business combination— — 708 — 
Change in fair value of return of premium liability recognized in earnings(104)— (104)— 
Return of premium payments made(34)— (34)— 
Ending balance$570 $— $570 $— 
Fair Value of Assets Measured on Non-recurring Basis
Assets measured at fair value on a non-recurring basis are summarized in the table below. There were no liabilities measured at fair value on a non-recurring basis at September 30, 2022 and December 31, 2021.
(Dollars in thousands)Fair Value Measurements UsingTotal
Fair Value
September 30, 2022Level 1Level 2Level 3
Collateral dependent loans
Commercial real estate$— $— $283 $283 
1-4 family residential— — 25 25 
Commercial— — 9,771 9,771 
Factored receivables— — 34,604 34,604 
Consumer— — 29 29 
$— $— $44,712 $44,712 
(Dollars in thousands)Fair Value Measurements UsingTotal
Fair Value
December 31, 2021Level 1Level 2Level 3
Collateral dependent loans
Commercial real estate$— $— $366 $366 
1-4 family residential— — 61 61 
Commercial— — 2,435 2,435 
Factored receivables— — 30,224 30,224 
Consumer— — 60 60 
Other real estate owned (1)
Commercial real estate— — 7 7 
Construction, land development, land— — 63 63 
$— $— $33,216 $33,216 
(1)Represents the fair value of OREO that was adjusted during the year to date period and subsequent to its initial classification as OREO.
Estimated Fair Value of Company's Financial Assets and Financial Liabilities
The estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis at September 30, 2022 and December 31, 2021 were as follows:
(Dollars in thousands)Carrying
Amount		Fair Value Measurements UsingTotal
Fair Value
September 30, 2022Level 1Level 2Level 3
Financial assets:
Cash and cash equivalents$421,729 $421,729 $— $— $421,729 
Securities - held to maturity4,149 — — 5,603 5,603 
Loans not previously presented, gross4,388,592 228,971 — 4,080,885 4,309,856 
FHLB and other restricted stock6,213  N/A  N/A  N/A N/A
Accrued interest receivable18,214 18,214 — — 18,214 
Financial liabilities:
Deposits4,441,354 — 4,429,225 — 4,429,225 
Customer repurchase agreements13,463 — 13,463 — 13,463 
Federal Home Loan Bank advances30,000 — 30,000 — 30,000 
Subordinated notes107,587 — 106,327 — 106,327 
Junior subordinated debentures41,016 — 42,847 — 42,847 
Accrued interest payable2,538 2,538 — — 2,538 
(Dollars in thousands)Carrying
Amount		Fair Value Measurements UsingTotal
Fair Value
December 31, 2021Level 1Level 2Level 3
Financial assets:
Cash and cash equivalents$383,178 $383,178 $— $— $383,178 
Securities - held to maturity4,947 — — 5,447 5,447 
Loans not previously presented, gross4,834,426 142,962 — 4,685,058 4,828,020 
FHLB and other restricted stock10,146 N/AN/AN/AN/A
Accrued interest receivable15,319 15,319 — — 15,319 
Financial liabilities:
Deposits4,646,679 — 4,646,552 — 4,646,552 
Customer repurchase agreements2,103 — 2,103 — 2,103 
Federal Home Loan Bank advances180,000 — 180,000 — 180,000 
Paycheck Protection Program Liquidity Facility27,144 — 27,144 — 27,144 
Subordinated notes106,957 — 110,045 — 110,045 
Junior subordinated debentures40,602 — 41,286 — 41,286 
Accrued interest payable1,951 1,951 — — 1,951