Disclosures about Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2022

Allowance for Loan Losses

Disclosures about Fair Value of Financial Instruments

Note 7. Disclosures about Fair Value of Financial Instruments

The following presents the carrying amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments as of March 31, 2022 and December 31, 2021. Fair values for March 31, 2022 and December 31, 2021 are estimated under the exit price notion in accordance with the prospective adoption of ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.

The estimated fair values, and related carrying amounts (dollars in thousands), of the Company’s financial instruments are as follows (dollars in thousands):

			Fair Value Measurements at March 31, 2022 Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at March 31, 2022
Assets:
Cash and cash equivalents	$	48,376	$	48,376	$	-	$	-	$	48,376
Securities		461,947		-		461,947		-		461,947
Loans held for sale		2,479		-		2,479		-		2,479
Loans held for investment, net		659,560		-		-		646,369		646,369
Interest receivable		3,345		-		3,345		-		3,345
Bank owned life insurance		23,042		-		23,042		-		23,042
Forward sales commitments		637		-		637		-		637
Total	$	1,199,386	$	48,376	$	491,450	$	646,369	$	1,186,195
Liabilities:
Deposits	$	1,112,295	$	-	$	1,004,305	$	117,811	$	1,122,116
Long-term debt		21,780		-		-		22,105		22,105
IRLC		262		-		262		-		262
Interest payable		251		-		251		-		251
Total	$	1,134,588	$	-	$	1,004,818	$	139,916	$	1,144,734

Note 7. Disclosures about Fair Value of Financial Instruments, continued

			Fair Value Measurements at December 31, 2021 Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at December 31, 2021
Assets:
Cash and cash equivalents	$	88,121	$	88,121	$	-	$	-	$	88,121
Securities		404,007		-		404,007		-		404,007
Loans held for sale		4,887		-		4,887		-		4,887
IRLC		258		-		258		-		258
Loans held for investment, net		662,421		-		-		652,096		652,096
Interest receivable		3,117		-		3,117		-		3,117
Bank owned life insurance		22,878		-		22,878		-		22,878
Forward sales commitments		112		-		112		-		112
Total	$	1,185,801	$	88,121	$	435,259	$	652,096	$	1,175,476
Liabilities:
Deposits	$	1,080,295	$	-	$	968,604	$	123,718	$	1,092,322
Long-term debt		21,772		-		-		22,443		22,443
Interest payable		491		-		491		-		491
Total	$	1,102,558	$	-	$	969,095	$	146,161	$	1,115,256