XML 41 R30.htm IDEA: XBRL DOCUMENT

FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2021

Schedule of fair values of assets and liabilities measured on recurring and non-recurring basis


	June 30, 2021
									Total Gains
(Dollars in thousands)	Total		Level 1		Level 2		Level 3		(Losses)
Assets
Recurring fair value measurements:
Securities available for sale:
Obligations of U.S. Government entities and agencies	$	7,209	$	—	$	—	$	7,209
States and political subdivisions		8,397		—		8,397		—
Mortgage-backed GSE residential		1,116		—		1,116		—
Total securities available for sale		16,722		—		9,513		7,209

SBA servicing asset		10,983		—		—		10,983
Interest only strip		172		—		—		172
	$	27,877	$	—	$	9,513	$	18,364
Nonrecurring fair value measurements:
Impaired loans	$	1,482	$	—	$	—	$	1,482	$	(2)


	December 31, 2020
									Total Gains
(Dollars in thousands)	Total		Level 1		Level 2		Level 3		(Losses)
Assets
Recurring fair value measurements:
Securities available for sale:
Obligations of U.S. Government entities and agencies	$	9,306	$	—	$	—	$	9,306
States and political subdivisions		7,429		—		7,429		—
Mortgage-backed GSE residential		1,382		—		1,382		—
Total securities available for sale		18,117		—		8,811		9,306

SBA servicing asset		9,488		—		—		9,488
Interest only strip		155		—		—		155
	$	27,760	$	—	$	8,811	$	18,949
Nonrecurring fair value measurements:
Impaired loans	$	2,523	$	—	$	—	$	2,523	$	324
Foreclosed real estate, net		282		—		—		282		(141)
	$	2,805	$	—	$	—	$	2,805	$	183

Schedule of reconciliation of fair values of assets and liabilities measured on recurring basis using unobservable inputs


	Obligations of		SBA
(Dollars in thousands)	U.S. Government		Servicing		Interest Only
Three Months Ended:	Entities and Agencies		Asset		Strip		Liabilities
Fair value, April 1, 2021	$	9,232	$	10,374	$	161	$	—
Total gain included in income		—		609		11		—
Settlements		—		—		—		—
Prepayments/paydowns		(2,023)		—		—		—
Transfers in and/or out of level 3		—		—		—		—
Fair value, June 30, 2021	$	7,209	$	10,983	$	172	$	—

Fair value, April 1, 2020	$	11,663	$	7,573	$	25	$	—
Total gain (loss) included in income		—		849		(1)		—
Settlements		—		—		—		—
Prepayments/paydowns		(88)		—		—		—
Transfers in and/or out of level 3		—		—		—		—
Fair value, June 30, 2020	$	11,575	$	8,422	$	24	$	—

Six Months Ended:
Fair value, January 1, 2021	$	9,306	$	9,488	$	155	$	—
Total gain included in income		—		1,495		17		—
Settlements		—		—		—		—
Prepayments/paydowns		(2,097)		—		—		—
Transfers in and/or out of level 3		—		—		—		—
Fair value, June 30, 2021	$	7,209	$	10,983	$	172	$	—

Fair value, January 1, 2020	$	12,436	$	8,162	$	26	$	—
Total gain (loss) included in income		—		260		(2)		—
Settlements		—		—		—		—
Prepayments/paydowns		(861)		—		—		—
Transfers in and/or out of level 3		—		—		—		—
Fair value, June 30, 2020	$	11,575	$	8,422	$	24	$	—

Schedule of quantitative information about recurring Level 3 fair value measures


	Valuation	Unobservable	General
	Technique	Input	Range
June 30, 2021
Recurring:
Obligations of U.S. Government entities and agencies	Discounted cash flows	Discount rate	0%-3%
SBA servicing asset and interest only strip	Discounted cash flows	Prepayment speed	14.64%-17.97%
		Discount rate	4.26%-8.62%
Nonrecurring:
Impaired loans	Appraised value less estimated selling costs	Estimated selling costs	6%

December 31, 2020
Recurring:
Obligations of U.S. Government entities and agencies	Discounted cash flows	Discount rate	0%-3%
SBA servicing asset and interest only strip	Discounted cash flows	Prepayment speed	14.04%-17.71%
		Discount rate	4.67%-10.89%
Nonrecurring:
Impaired Loans	Appraised value less estimated selling costs	Estimated selling costs	6%
Foreclosed real estate	Appraised value less estimated selling costs	Estimated selling costs	6%

Schedule of carrying amounts and estimated fair values of Company's financial instruments


	Carrying			Estimated Fair Value at June 30, 2021
(Dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash, due from banks, and federal funds sold	$	313,933	$	—	$	313,933	$	—	$	313,933
Investment securities		16,722		—		9,513		7,209		16,722
FHLB stock		8,451		—		—		—		N/A
Loans, net		2,077,907		—		—		2,147,932		2,147,932
Accrued interest receivable		10,668		—		82		10,586		10,668
SBA servicing assets		10,983		—		—		10,983		10,983
Interest only strips		172		—		—		172		172
Mortgage servicing assets		9,529		—		—		9,556		9,556
Financial Liabilities:
Deposits		1,974,831		—		1,975,818		—		1,975,818
Federal Home Loan Bank advances		200,000		—		200,000		—		200,000
Other borrowings		474		—		474		—		474
Accrued interest payable		202		—		202		—		202


	Carrying		Estimated Fair Value at December 31, 2020
(Dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash, due from banks, and federal funds sold	$	150,688	$	—	$	150,688	$	—	$	150,688
Investment securities		18,117		—		8,811		9,306		18,117
FHLB stock		6,147		—		—		—		N/A
Loans, net		1,620,209		—		—		1,665,413		1,665,413
Accrued interest receivable		10,671		—		—		10,671		10,671
SBA servicing asset		9,488		—		—		9,488		9,488
Interest only strips		155		—		—		155		155
Mortgage servicing assets		12,991		—		—		13,069		13,069
Financial Liabilities:
Deposits		1,479,889		—		1,480,777		—		1,480,777
Federal Home Loan Bank advances		110,000		—		110,000		—		110,000
Other borrowings		483		—		483		—		483
Accrued interest payable		222		—		222		—		222

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details