FAIR VALUE (Tables)
|
9 Months Ended |
Sep. 30, 2024 |
Fair Value Disclosures [Abstract] |
|
Schedule of Fair Value Hierarchy and Fair Value of Financial Instruments |
The estimated fair value hierarchy level and estimated fair value of financial instruments at September 30, 2024 and December 31, 2023, is summarized as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | September 30, 2024 | | December 31, 2023 | | | | | | | Estimated | | | | Estimated | | | Fair Value | | Carrying | | Fair | | Carrying | | Fair | (dollars in thousands) | | Hierarchy | | Value | | Value | | Value | | Value | Financial assets: | | | | | | | | | | | Cash and due from banks | | Level 1 | | $ | 115,165 | | | $ | 115,165 | | | $ | 33,008 | | | $ | 33,008 | | Fed funds and interest-bearing balances | | Level 1 | | 499,258 | | | 499,258 | | | 53,785 | | | 53,785 | | Debt securities available for sale | | Level 1/2 | | 159,330 | | | 159,330 | | | 130,035 | | | 130,035 | | Debt securities held to maturity | | Level 2 | | 53,364 | | | 49,487 | | | 53,616 | | | 50,432 | | Loans held for sale | | Level 2 | | 33,704 | | | 34,508 | | | 7,349 | | | 7,834 | | Loans held for investment, net | | Level 3 | | 3,146,162 | | | 3,144,451 | | | 1,934,873 | | | 1,883,154 | | Restricted stock, at cost | | Level 2 | | 27,394 | | | 27,394 | | | 16,055 | | | 16,055 | | Other equity securities | | Level 2 | | 14,712 | | | 14,712 | | | 9,187 | | | 9,187 | | Accrued interest receivable | | Level 2 | | 15,632 | | | 15,632 | | | 7,301 | | | 7,301 | | | | | | | | | | | | | Financial liabilities: | | | | | | | | | | | Deposits | | Level 2 | | 3,740,915 | | | 3,740,963 | | | 1,943,556 | | | 1,943,007 | | Borrowings | | Level 2 | | 69,142 | | | 69,053 | | | 102,865 | | | 102,447 | | Accrued interest payable | | Level 2 | | 4,976 | | | 4,976 | | | 477 | | | 477 | |
|
Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis |
The following table provides the hierarchy and fair value for each major category of assets and liabilities measured at fair value on a recurring basis at the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Recurring Fair Value Measurements | | | (dollars in thousands) | | Level 1 | | Level 2 | | Level 3 | | Total | September 30, 2024 | | | | | | | | | Securities available for sale: | | | | | | | | | U.S. government and agency and government sponsored enterprise securities: | | | | | | | | | Mortgage-backed securities | | $ | — | | | $ | 92,259 | | | $ | — | | | $ | 92,259 | | SBA securities | | — | | | 5,684 | | | — | | | 5,684 | | U.S. Treasury | | 17,321 | | | — | | | — | | | 17,321 | | U.S. Agency | | — | | | 1,743 | | | — | | | 1,743 | | Collateralized mortgage obligations | | — | | | 40,573 | | | — | | | 40,573 | | Taxable municipals | | — | | | 923 | | | — | | | 923 | | Tax exempt bank-qualified municipals | | — | | | 827 | | | — | | | 827 | | | | | | | | | | | | | $ | 17,321 | | | $ | 142,009 | | | $ | — | | | $ | 159,330 | | | | | | | | | | | December 31, 2023 | | | | | | | | | Securities available for sale: | | | | | | | | | U.S. government and agency and government sponsored enterprise securities: | | | | | | | | | Mortgage-backed securities | | $ | — | | | $ | 74,434 | | | $ | — | | | $ | 74,434 | | SBA securities | | — | | | 5,782 | | | — | | | 5,782 | | U.S. Treasury | | 2,417 | | | — | | | — | | | 2,417 | | U.S. Agency | | — | | | 1,670 | | | — | | | 1,670 | | Collateralized mortgage obligations | | — | | | 43,501 | | | — | | | 43,501 | | Taxable municipals | | — | | | 1,421 | | | — | | | 1,421 | | Tax exempt bank-qualified municipals | | — | | | 810 | | | — | | | 810 | | | | | | | | | | | | | $ | 2,417 | | | $ | 127,618 | | | $ | — | | | $ | 130,035 | |
|
Schedule of Fair Value Measurements, Nonrecurring |
The following tables summarize the fair value of assets and liabilities measured at fair value on a nonrecurring basis as of September 30, 2024 and December 31, 2023.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurement Level | | | | | Quoted Prices in | | | | | | | | | Active Markets for | | Significant Other | | Significant | | | Fair | | Identical Assets | | Observable Inputs | | Unobservable Inputs | (dollars in thousands) | | Value | | (Level 1) | | (Level 2) | | (Level 3) | September 30, 2024 | | | | | | | | | Collateral dependent loans (1): | | | | | | | | | | | | | | | | | | Construction and Land | | $ | 10,000 | | | $ | — | | | $ | — | | | $ | 10,000 | | 1-4 Family Residential | | 4,600 | | | — | | | — | | | 4,600 | | Foreclosed assets: | | | | | | | | | Other real estate owned, net | | $ | 4,083 | | | $ | — | | | $ | — | | | $ | 4,083 | | | | | | | | | | | December 31, 2023 | | | | | | | | | Collateral dependent loans (1): | | | | | | | | | Multifamily Residential | | $ | 13,000 | | | $ | — | | | $ | — | | | $ | 13,000 | |
(1) Collateral-dependent loans whose fair value is based upon appraisals.
|
Schedule of Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques |
Quantitative information about Level 3 fair value measurements measured on a non-recurring basis are summarized below as of September 30, 2024 and December 31, 2023. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Asset Fair | | Valuation | | Unobservable | | % or Range % | (dollars in thousands) | | Value | | Technique | | Input | | (Weighted Average) | September 30, 2024 | | | | | | | | | | | | | | | | | | | | | | | | | | | Construction and Land | | $ | 10,000 | | | Market approach | | Land value | | N/A | 1-4 Family Residential | | 4,600 | | | Market approach | | Cost to sell | | 7.50%-7.50% (7.50%) | Other real estate owned, net | | $ | 4,083 | | | Market approach | | Cost to sell | | 5.75%-5.75% (5.75%) | | | | | | | | | | | | | | | | | | | December 31, 2023 | | | | | | | | | Multifamily Residential | | $ | 13,000 | | | Income approach | | Capitalization rate | | 3.84%-4.94% (4.50%) |
|