XML 41 R32.htm IDEA: XBRL DOCUMENT v3.23.1
Fair Value Disclosures (Tables)
 3 Months Ended
Mar. 31, 2023
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
March 31, 2023Level 1Level 2Level 3
Assets measured at fair value on a recurring basis
Securities available for sale
Mortgage-backed securities, residential$— $47,955 $— $47,955 
Asset-backed securities— 6,293 — 6,293 
State and municipal— 13,417 — 13,417 
CLO securities— 246,869 — 246,869 
Corporate bonds— 770 — 770 
SBA pooled securities— 1,793 — 1,793 
$— $317,097 $— $317,097 
Equity securities with readily determinable fair values
Mutual fund$4,498 $— $— $4,498 
Loans held for sale$— $3,954 $— $3,954 
Indemnification asset$— $— $3,691 $3,691 
Revenue share asset$— $— $4,532 $4,532 
Liabilities measured at fair value on a recurring basis
Return of premium liability$— $— $476 $476 
(Dollars in thousands)Fair Value Measurements UsingTotal
Fair Value
December 31, 2022Level 1Level 2Level 3
Assets measured at fair value on a recurring basis
Securities available for sale
Mortgage-backed securities, residential$— $50,633 $— $50,633 
Asset-backed securities— 6,331 — 6,331 
State and municipal— 13,438 — 13,438 
CLO Securities— 181,011 — 181,011 
Corporate bonds— 1,263 — 1,263 
SBA pooled securities— 1,828 — 1,828 
$— $254,504 $— $254,504 
Equity securities with readily determinable fair values
Mutual fund$5,191 $— $— $5,191 
Loans held for sale$— $5,641 $— $5,641 
Indemnification asset$— $— $3,896 $3,896 
Revenue share asset$— $— $5,515 $5,515 
Liabilities measured at fair value on a recurring basis
Return of premium liability$— $— $575 $575 
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 March 31,
(Dollars in thousands)20232022
Beginning balance$3,896 $4,786 
Indemnification asset recognized in business combination— — 
Change in fair value of indemnification asset recognized in earnings(205)(204)
Indemnification reduction— — 
Ending balance$3,691 $4,582 
A reconciliation of the opening balance to the closing balance of the fair value of the revenue share asset is as follows:
Three Months Ended March 31,
(Dollars in thousands)20232022
Beginning balance$5,515 $— 
Revenue share asset recognized — — 
Change in fair value of revenue share asset recognized in earnings(620)— 
Revenue share payments received(363)— 
Ending balance$4,532 $— 
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 March 31,
(Dollars in thousands)20232022
Beginning balance$575 $— 
Return of premium liability recognized in business combination— — 
Change in fair value of return of premium liability recognized in earnings(99)— 
Return of premium payments made— — 
Ending balance$476 $— 
Fair Value of Assets Measured on Non-recurring Basis
Assets measured at fair value on a non-recurring basis are summarized in the table below. There were no liabilities measured at fair value on a non-recurring basis at March 31, 2023 and December 31, 2022.
(Dollars in thousands)Fair Value Measurements UsingTotal
Fair Value
March 31, 2023Level 1Level 2Level 3
Collateral dependent loans
Commercial real estate$— $— $98 $98 
1-4 family residential— — 80 80 
Commercial— — 4,855 4,855 
Factored receivables— — 27,780 27,780 
$— $— $32,813 $32,813 
(Dollars in thousands)Fair Value Measurements UsingTotal
Fair Value
December 31, 2022Level 1Level 2Level 3
Collateral dependent loans
Commercial real estate$— $— $269 $269 
1-4 family residential— — 46 46 
Commercial— — 6,994 6,994 
Factored receivables— — 29,367 29,367 
Equity investment without readily determinable fair value38,088 — — 38,088 
$38,088 $— $36,676 $74,764 
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 March 31, 2023 and December 31, 2022 were as follows:
(Dollars in thousands)Carrying
Amount		Fair Value Measurements UsingTotal
Fair Value
March 31, 2023Level 1Level 2Level 3
Financial assets:
Cash and cash equivalents$417,715 $417,715 $— $— $417,715 
Securities - held to maturity3,868 — — 5,184 5,184 
Loans not previously presented, gross4,284,232 147,334 — 4,050,201 4,197,535 
FHLB and other restricted stock24,506  N/A  N/A  N/A N/A
Accrued interest receivable25,277 25,277 — — 25,277 
Financial liabilities:
Deposits4,038,994 — 4,028,969 — 4,028,969 
Customer repurchase agreements3,208 — 3,208 — 3,208 
Federal Home Loan Bank advances530,000 — 530,000 — 530,000 
Subordinated notes108,016 — 107,301 — 107,301 
Junior subordinated debentures41,299 — 42,874 — 42,874 
Accrued interest payable4,018 4,018 — — 4,018 

(Dollars in thousands)Carrying
Amount		Fair Value Measurements UsingTotal
Fair Value
December 31, 2022Level 1Level 2Level 3
Financial assets:
Cash and cash equivalents$408,182 $408,182 $— $— $408,182 
Securities - held to maturity4,077 — — 5,476 5,476 
Loans not previously presented, gross4,088,411 187,729 — 3,805,701 3,993,430 
FHLB and other restricted stock6,252 N/AN/AN/AN/A
Accrued interest receivable21,977 21,977 — — 21,977 
Financial liabilities:
Deposits4,171,336 — 4,159,695 — 4,159,695 
Customer repurchase agreements340 — 340 — 340 
Federal Home Loan Bank advances30,000 — 30,000 — 30,000 
Subordinated notes107,800 — 104,400 — 104,400 
Junior subordinated debentures41,158 — 42,721 — 42,721 
Accrued interest payable2,830 2,830 — — 2,830