FAIR VALUE (Tables)
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12 Months Ended |
Dec. 31, 2022 |
FAIR VALUE |
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Schedule of fair values of assets and liabilities measured on recurring and non-recurring basis |
| | | | | | | | | | | | | | | | | | December 31, 2022 | | | | | | | | | | | | | | | 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 | | $ | 5,059 | | $ | — | | $ | — | | $ | 5,059 | | | | States and political subdivisions | | | 6,403 | | | — | | | 6,403 | | | — | | | | Mortgage-backed GSE residential | | | 7,783 | | | — | | | 7,783 | | | — | | | | Total securities available for sale | | | 19,245 | | | — | | | 14,186 | | | 5,059 | | | | | | | | | | | | | | | | | | | | Equity securities | | | 10,300 | | | 10,300 | | | — | | | — | | | | SBA servicing asset | | | 7,038 | | | — | | | — | | | 7,038 | | | | Interest only strip | | | 47 | | | — | | | — | | | 47 | | | | Interest rate derivatives | | | 28,781 | | | — | | | 28,781 | | | — | | | | | | $ | 65,411 | | $ | 10,300 | | $ | 42,967 | | $ | 12,144 | | | | Nonrecurring fair value measurements: | | | | | | | | | | | | | | | | Impaired loans | | $ | 1,045 | | $ | — | | $ | — | | $ | 1,045 | | $ | 229 | | | | | | | | | | | | | | | | | Liabilities | | | | | | | | | | | | | | | | Recurring fair value measurements: | | | | | | | | | | | | | | | | Interest rate derivatives | | $ | 779 | | $ | — | | $ | 779 | | $ | — | | | |
| | | | | | | | | | | | | | | | | | December 31, 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 | | $ | 6,949 | | $ | — | | $ | — | | $ | 6,949 | | | | States and political subdivisions | | | 8,361 | | | — | | | 8,361 | | | — | | | | Mortgage-backed GSE residential | | | 10,423 | | | — | | | 10,423 | | | — | | | | Total securities available for sale | | | 25,733 | | | — | | | 18,784 | | | 6,949 | | | | | | | | | | | | | | | | | | | | Equity securities | | | 11,386 | | | 11,386 | | | — | | | — | | | | SBA servicing asset | | | 10,091 | | | — | | | — | | | 10,091 | | | | Interest only strip | | | 143 | | | — | | | — | | | 143 | | | | Interest rate derivatives | | | 367 | | | — | | | 367 | | | — | | | | | | $ | 47,720 | | $ | 11,386 | | $ | 19,151 | | $ | 17,183 | | | | Nonrecurring fair value measurements: | | | | | | | | | | | | | | | | Impaired loans | | $ | 947 | | $ | — | | $ | — | | $ | 947 | | $ | (7) | | | | | | | | | | | | | | | | | Liabilities | | | | | | | | | | | | | | | | Recurring fair value measurements: | | | | | | | | | | | | | | | | Interest rate derivatives | | $ | 46 | | $ | — | | $ | 46 | | $ | — | | | |
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Schedule of reconciliation of fair values of assets and liabilities measured on recurring basis using unobservable inputs |
| | | | | | | | | | | | | | | Obligations of | | SBA | | | | | | | | | U.S. Government | | Servicing | | Interest Only | | | | (Dollars in thousands) | | Entities and Agencies | | Asset | | Strip | | Liabilities | | | | | | | | | | | | | | Fair value, January 1, 2022 | | $ | 6,949 | | $ | 10,091 | | $ | 143 | | $ | — | Total loss included in income | | | — | | | (3,053) | | | (96) | | | — | Settlements | | | — | | | — | | | — | | | — | Prepayments/paydowns | | | (1,890) | | | — | | | — | | | — | Transfers in and/or out of level 3 | | | — | | | — | | | — | | | — | Fair value, December 31, 2022 | | $ | 5,059 | | $ | 7,038 | | $ | 47 | | $ | — | | | | | | | | | | | | | | Fair value, January 1, 2021 | | $ | 9,306 | | $ | 9,488 | | $ | 155 | | $ | — | Total gain (loss) included in income | | | — | | | 603 | | | (12) | | | — | Settlements | | | — | | | — | | | — | | | — | Prepayments/paydowns | | | (2,357) | | | — | | | — | | | — | Transfers in and/or out of level 3 | | | — | | | — | | | — | | | — | Fair value, December 31, 2021 | | $ | 6,949 | | $ | 10,091 | | $ | 143 | | $ | — | | | | | | | | | | | | | | Fair value, January 1, 2020 | | $ | 12,436 | | $ | 8,162 | | $ | 26 | | $ | — | Total loss included in income | | | — | | | 1,326 | | | 129 | | | — | Settlements | | | — | | | — | | | — | | | — | Prepayments/paydowns | | | (3,130) | | | — | | | — | | | — | Transfers in and/or out of level 3 | | | — | | | — | | | — | | | — | Fair value, December 31, 2020 | | $ | 9,306 | | $ | 9,488 | | $ | 155 | | $ | — |
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Schedule of quantitative information about recurring Level 3 fair value measures |
| | | | | | | | | Valuation | | Unobservable | | General | | | Technique | | Input | | Range | December 31, 2022 | | | | | | | 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 | | 13.12%-17.60% | | | | | Discount rate | | 8.21%-19.30% | Nonrecurring: | | | | | | | Impaired loans | | Appraisal value less estimated selling costs | | Estimated selling costs | | 6% | | | | | | | | December 31, 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 | | 14.43%-17.12% | | | | | Discount rate | | 7.57%-12.25% | Nonrecurring: | | | | | | | Impaired loans | | Appraisal value less estimated selling costs | | Estimated selling costs | | 6% | | | | | | | |
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Schedule of carrying amounts and estimated fair values of Company's financial instruments |
| | | | | | | | | | | | | | | | | | Carrying | | | Estimated Fair Value at December 31, 2022 | (Dollars in thousands) | | Amount | | Level 1 | | Level 2 | | Level 3 | | Total | Financial Assets: | | | | | | | | | | | | | | | | Cash, due from banks, and federal funds sold | | $ | 179,485 | | $ | — | | $ | 179,485 | | $ | — | | $ | 179,485 | Investment securities | | | 29,545 | | | 10,300 | | | 14,186 | | | 5,059 | | | 29,545 | Federal Home Loan Bank stock | | | 17,493 | | | — | | | — | | | — | | | N/A | Loans, net | | | 3,041,801 | | | — | | | — | | | 2,999,520 | | | 2,999,520 | Accrued interest receivable | | | 13,171 | | | — | | | 98 | | | 13,073 | | | 13,171 | SBA servicing assets | | | 7,038 | | | — | | | — | | | 7,038 | | | 7,038 | Interest only strips | | | 47 | | | — | | | — | | | 47 | | | 47 | Mortgage servicing assets | | | 3,973 | | | — | | | — | | | 7,209 | | | 7,209 | Interest rate derivatives | | | 28,781 | | | — | | | 28,781 | | | — | | | 28,781 | Financial Liabilities: | | | | | | | | | | | | | | | | Deposits | | | 2,666,838 | | | — | | | 2,658,837 | | | — | | | 2,658,837 | Federal Home Loan Bank advances | | | 375,000 | | | — | | | 376,575 | | | — | | | 376,575 | Other borrowings | | | 392 | | | — | | | 392 | | | — | | | 392 | Accrued interest payable | | | 2,739 | | | — | | | 2,739 | | | — | | | 2,739 | Interest rate derivatives | | | 779 | | | — | | | 779 | | | — | | | 779 |
| | | | | | | | | | | | | | | | | | Carrying | | Estimated Fair Value at December 31, 2021 | (Dollars in thousands) | | Amount | | Level 1 | | Level 2 | | Level 3 | | Total | Financial Assets: | | | | | | | | | | | | | | | | Cash, due from banks, and federal funds sold | | $ | 441,341 | | $ | — | | $ | 441,341 | | $ | — | | $ | 441,341 | Investment securities | | | 37,119 | | | 11,386 | | | 18,784 | | | 6,949 | | | 37,119 | Federal Home Loan Bank stock | | | 19,701 | | | — | | | — | | | — | | | N/A | Loans, net | | | 2,488,118 | | | — | | | — | | | 2,561,269 | | | 2,561,269 | Accrued interest receivable | | | 11,052 | | | — | | | 100 | | | 10,952 | | | 11,052 | SBA servicing assets | | | 10,091 | | | — | | | — | | | 10,091 | | | 10,091 | Interest only strips | | | 143 | | | — | | | — | | | 143 | | | 143 | Mortgage servicing assets | | | 7,747 | | | — | | | — | | | 7,937 | | | 7,937 | Interest rate derivatives | | | 367 | | | — | | | 367 | | | — | | | 367 | Financial Liabilities: | | | | | | | | | | | | | | | | Deposits | | | 2,263,020 | | | — | | | 2,263,246 | | | — | | | 2,263,246 | Federal Home Loan Bank advances | | | 500,000 | | | — | | | 501,450 | | | — | | | 501,450 | Other borrowings | | | 459 | | | — | | | 459 | | | — | | | 459 | Accrued interest payable | | | 204 | | | — | | | 204 | | | — | | | 204 | Interest rate derivatives | | | 46 | | | — | | | 46 | | | — | | | 46 |
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