Fair Value of Financial Instruments and Fair Value Measurements (Tables)
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6 Months Ended |
Jun. 30, 2020 |
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| Fair Value Disclosures [Abstract] |
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| 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 June 30, 2020 and December 31, 2019 are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements | | | | | | | | | | (dollars in thousands) | Carrying
Value | | Estimated
Fair Value | | Level
1 | | Level
2 | | Level
3 | | June 30, 2020 | | | | | | | | | | | Assets | | | | | | | | | | | Cash and short-term investments | $ | 191,046 | | | $ | 191,046 | | | $ | 191,046 | | | $ | — | | | $ | — | | | Investment securities available for sale | 373,610 | | | 373,610 | | | — | | | 371,604 | | | 2,006 | | | Other investments, at cost | 3,954 | | | 3,954 | | | 3,225 | | | 729 | | | — | | | Loans held for sale | 16,537 | | | 16,537 | | | — | | | 16,537 | | | — | | | Loans, net | 1,103,688 | | | 1,125,455 | | | — | | | — | | | 1,125,455 | | | | | | | | | | | | | Liabilities | | | | | | | | | | | Deposits | 1,421,758 | | | 1,421,287 | | | — | | | 1,421,287 | | | — | | | Paycheck Protection Program Liquidity Facility | 134,500 | | | 134,500 | | | — | | | 134,500 | | | — | | | Federal Home Loan Bank advances | 36,500 | | | 33,820 | | | — | | | 33,820 | | | — | | | Other borrowings | 38,292 | | | 38,292 | | | — | | | 38,292 | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements | | | | | | | | | | (dollars in thousands) | Carrying
Value | | Estimated
Fair Value | | Level
1 | | Level
2 | | Level
3 | | December 31, 2019 | | | | | | | | | | | Assets | | | | | | | | | | | Cash and short-term investments | $ | 104,092 | | | $ | 104,092 | | | $ | 104,192 | | | $ | — | | | $ | — | | | Investment securities available for sale | 347,332 | | | 347,332 | | | — | | | 345,310 | | | 2,022 | | | Other investments, at cost | 4,288 | | | 4,288 | | | 3,559 | | | 729 | | | — | | | Loans held for sale | 10,076 | | | 10,076 | | | — | | | 10,076 | | | — | | | Loans, net | 961,951 | | | 938,475 | | | — | | | — | | | 938,475 | | | | | | | | | | | | | Liabilities | | | | | | | | | | | Deposits | 1,293,742 | | | 1,294,506 | | | — | | | 1,294,506 | | | — | | | Federal Home Loan Bank advances | 47,000 | | | 44,402 | | | — | | | 44,402 | | | — | | | Other borrowings | 38,792 | | | 38,792 | | | — | | | 38,792 | | | — | |
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| 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 June 30, 2020 and December 31, 2019, 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 June 30, 2020 and December 31, 2019. 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 | | Quoted Prices in
Active Markets for
Identical Assets (Level 1) | | Significant Other
Observable Inputs (Level 2) | | Significant
Unobservable
Inputs (Level 3) | | June 30, 2020 | | | | | | | | Recurring Securities Available for Sale | | | | | | | | | U.S. treasury securities | $ | 245 | | | $ | — | | | $ | 245 | | | $ | — | | | State, county & municipal securities | 29,700 | | | — | | | 29,700 | | | — | | | Corporate Debt securities | 3,006 | | | — | | | 1,000 | | | 2,006 | | | Mortgage-backed securities | 340,659 | | | — | | | 340,659 | | | — | | | Total available for sale securities | $ | 373,610 | | | $ | — | | | $ | 371,604 | | | $ | 2,006 | | | | | | | | | | | Nonrecurring | | | | | | | | | Collateral Dependent Impaired Loans | $ | 4,820 | | | $ | — | | | $ | — | | | $ | 4,820 | | | Other Real Estate | 1,769 | | | — | | | — | | | 1,769 | | | Total nonrecurring assets | $ | 6,589 | | | $ | — | | | $ | — | | | $ | 6,589 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value Measurements at Reporting Date Using | | | | | | (dollars in thousands) | Total Fair
Value | | Quoted Prices in
Active Markets for
Identical Assets (Level 1) | | Significant Other
Observable Inputs (Level 2) | | Significant
Unobservable
Inputs (Level 3) | | December 31, 2019 | | | | | | | | Recurring Securities Available for Sale | | | | | | | | | State, county & municipal securities | $ | 5,115 | | | $ | — | | | $ | 5,115 | | | $ | — | | | Corporate Debt securities | 2,806 | | | — | | | 784 | | | 2,022 | | | Mortgage-backed securities | 339,411 | | | — | | | 339,411 | | | — | | | Total available for sale securities | $ | 347,332 | | | $ | — | | | $ | 345,310 | | | $ | 2,022 | | | | | | | | | | | Nonrecurring | | | | | | | | | Collateral Dependent Impaired Loans | $ | 5,985 | | | $ | — | | | $ | — | | | 5,985 | | | Other Real Estate | 1,320 | | | — | | | — | | | 1,320 | | | Total nonrecurring assets | $ | 7,305 | | | $ | — | | | $ | — | | | $ | 7,305 | |
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| 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 June 30, 2020 and December 31, 2019. This table is comprised primarily of collateral dependent impaired loans and other real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (dollars in thousands) | June 30, 2020 | | Valuation
Techniques | | Unobservable
Inputs | | Range
Weighted Avg | | | | Collateral Dependent Impaired Loans | $ | 4,820 | | | Appraised Value | | Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell | | 10 | % | | 80 | % | | Other Real Estate | 1,769 | | | Appraised Value/Comparable Sales | | Discounts to reflect current market conditions and estimated costs to sell | | — | % | | 20 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (dollars in thousands) | December 31, 2019 | | Valuation
Techniques | | Unobservable
Inputs | | Range
Weighted Avg | | | | Collateral Dependent Impaired Loans | $ | 5,985 | | | Appraised Value | | Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell | | — | % | | 20 | % | | Other Real Estate | 1,320 | | | 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 June 30, 2020 and December 31, 2019. | | | | | | | | | | | | | | | | | | | | | | | | | (dollars in thousands) | | | | | | | | | June 30, 2020 | Fair Value | | Valuation Techniques | | Unobservable
Inputs | | Range
(Weighted Avg) | | Corporate debt securities | $ | 2,006 | | | Discounted Cash Flow | | Discount Rate or Yield | | N/A* | | December 31, 2019 | | | | | | | | | Corporate debt securities | $ | 2,022 | | | 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.
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| 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 six months ended June 30, 2020 and 2019. | | | | | | | | | | | | | Available for Sale Securities | | | | (dollars in thousands) | June 30, 2020 | | June 30, 2019 | | Balance, Beginning | $ | 2,022 | | | $ | 4,277 | | | Transfers out of Level 3 | — | | | — | | | Sales | — | | | — | | | Paydowns | (16) | | | (883) | | | Realized Loss on Sale of Security | — | | | — | | | Unrealized gains included in Other Comprehensive Income | — | | | 40 | | | Balance, Ending | $ | 2,006 | | | $ | 3,434 | |
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