Fair Value of Financial Instruments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping

The carrying amount, estimated fair values, and placement in the fair value hierarchy of the Company’s financial instruments as of March 31, 2022 and December 31, 2021 are as follows:

	Fair Value Measurements
(dollars in thousands)	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
March 31, 2022
Assets
Cash and short-term investments	$	156,417	$	156,417	$	156,417	$	—	$	—
Investment securities available for sale	653,292		653,292		—		653,292		—
Investment securities held to maturity	307,009		288,810		—		288,810
Other investments, at cost	13,827		13,827		—		9,744		4,083
Loans held for sale	24,228		24,228		—		24,228		—
Loans, net	1,341,113		1,328,231		—		—		1,328,231
Liabilities
Deposits	2,350,786		2,351,458		—		2,351,458		—
Federal Home Loan Bank advances	51,712		51,656		—		51,656		—
Other borrowings	24,229		24,229		—		24,229		—

	Fair Value Measurements
(dollars in thousands)	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
December 31, 2021
Assets
Cash and short-term investments	$	197,232	$	197,232	$	197,232	$	—	$	—
Investment securities available for sale	938,164		938,164		87,551		850,613		—
Other investments, at cost	14,012		14,012		5,574		4,183		4,255
Loans held for sale	38,150		38,150		—		38,150		—
Loans, net	1,325,067		1,328,853		—		—		1,328,853
Liabilities
Deposits	2,374,608		2,375,385		—		2,375,385		—
Federal Home Loan Bank advances	51,656		51,162		—		51,162		—
Other borrowings	36,792		36,796		—		36,796		—

Fair Value Measurements, Recurring and Nonrecurring

The following table presents the recorded amount of the Company’s assets measured at fair value on a recurring and nonrecurring basis as of March 31, 2022 and December 31, 2021, aggregated by the level in the fair value hierarchy within which those measurements fall. The table below includes only impaired loans with a specific reserve and only other real estate properties with a valuation allowance at March 31, 2022 and December 31, 2021. Those impaired loans and other real estate properties are shown net of the related specific reserves and valuation allowances.

			Fair Value Measurements at Reporting Date Using
(dollars in thousands)	Total Fair Value		(Level 1)		(Level 2)		(Level 3)
March 31, 2022
Nonrecurring
Collateral dependent impaired loans	$	426	$	—	$	—	$	426
Other real estate owned	246		—		—		246
Total nonrecurring assets	$	672	$	—	$	—	$	672

			Fair Value Measurements at Reporting Date Using
(dollars in thousands)	Total Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2021
Nonrecurring
Collateral dependent impaired loans	$	1,837	$	—	$	—	$	1,837
Other real estate owned	281		—		—		281
Total nonrecurring assets	$	2,118	$	—	$	—	$	2,118

Fair Value Measurement Inputs and Valuation Techniques

The following table presents quantitative information about the significant unobservable inputs used in the fair value measurements for assets in level 3 of the fair value hierarchy measured on a nonrecurring basis at March 31, 2022 and December 31, 2021. This table is comprised primarily of collateral dependent impaired loans and other real estate owned:

(dollars in thousands)	March 31, 2022		Valuation Techniques	Unobservable Inputs	Range Weighted Avg
Collateral dependent impaired loans	$	426	Appraised Value	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	25	%	100	%
Other real estate owned	246		Appraised Value/Comparable Sales	Discounts to reflect current market conditions and estimated costs to sell	—	%	20	%

(dollars in thousands)	December 31, 2021		Valuation Techniques	Unobservable Inputs	Range Weighted Avg
Collateral dependent impaired loans	$	1,837	Appraised Value	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	25	%	100	%
Other real estate owned	281		Appraised Value/Comparable Sales	Discounts to reflect current market conditions and estimated costs to sell	—	%	20	%

The following table presents quantitative information about recurring level 3 fair value measurements as of March 31, 2022 and December 31, 2021.

	As of March 31, 2022
(dollars in thousands)	Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Avg)
Other investments	$	4,083	Discounted Cash Flow	Discount Rate or Yield	N/A*

	As of December 31, 2021
(dollars in thousands)	Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Avg)
Other investments	$	4,255	Discounted Cash Flow	Discount Rate or Yield	N/A*

* The Company relies on a third-party pricing service to value its securities. The details of the unobservable inputs and other adjustments used by the third-party pricing service were not readily available to the Company.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The table below presents a reconciliation and statement of income classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (level 3) for the three months ended March 31, 2022.

	Available for Sale Securities
(dollars in thousands)	March 31, 2022
Balance, Beginning	$	4,255
Unrealized/realized losses included in earnings	(172)
Balance, Ending	$	4,083