Disclosures about Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2022

Disclosures about Fair Value of Financial Instruments

Note 7. 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 June 30, 2022 and December 31, 2021. Fair values for June 30, 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 June 30, 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 June 30, 2022
Assets:
Cash and cash equivalents	$	17,254	$	17,254	$	-	$	-	$	17,254
Securities		446,948		-		446,948		-		446,948
Loans held for sale		5,449		-		5,449		-		5,449
Loans held for investment, net		690,497		-		-		676,687		676,687
Interest receivable		3,567		-		3,567		-		3,567
Bank owned life insurance		23,210		-		23,210		-		23,210
Forward sales commitments		535		-		535		-		535
Total	$	1,187,460	$	17,254	$	479,709	$	676,687	$	1,173,650
Liabilities:
Deposits	$	1,100,210	$	-	$	980,822	$	116,563	$	1,097,385
Short-term debt		30,000		-				30,015		30,015
Long-term debt		11,788		-		-		11,890		11,890
IRLC		273		-		273				273
Interest payable		341		-		341		-		341
Total	$	1,142,612	$	-	$	981,436	$	158,468	$	1,139,904

	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	$	-	$	956,439	$	123,718	$	1,080,157
Long-term debt		21,772		-		-		22,443		22,443
Interest payable		491		-		491		-		491
Total	$	1,102,558	$	-	$	956,930	$	146,161	$	1,103,091