Disclosures about Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2023

Disclosures about Fair Value of Financial Instruments

Disclosures about Fair Value of Financial Instruments

Note 8. 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 September 30, 2023 and December 31, 2022. Fair values for September 30, 2023 and December 31, 2022 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, of the Company’s financial instruments are as follows (dollars in thousands):

			Fair Value Measurements at September 30, 2023 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 September 30, 2023
Assets:
Cash and cash equivalents	$	22,158	$	22,158	$	-	$	-	$	22,158
Securities available for sale		372,339		-		372,339		-		372,339
Securities held to maturity		125		-		113		-		113
Loans held for sale		2,027		-		2,027		-		2,027
Loans held for investment, net		805,602		-		-		773,821		773,821
Interest receivable		4,645		-		4,645		-		4,645
Bank owned life insurance		22,705		-		22,705		-		22,705
IRLC		122		-		122		-		122
Forward sales commitments		21		-		21		-		21
Total	$	1,229,744	$	22,158	$	401,972	$	773,821	$	1,197,951
Liabilities:
Deposits	$	1,133,910	$	-	$	1,131,833	$	-	$	1,133,833
Short-term debt		60,000		-		-		60,000		60,000
Long-term debt		6,922		-		-		6,656		6,656
Interest payable		1,215		-		1,215		-		1,215
Total	$	1,202,047	$	-	$	1,133,048	$	66,656	$	1,199,704

			Fair Value Measurements at December 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 December 31, 2022
Assets:
Cash and cash equivalents	$	34,953	$	34,953	$	-	$	-	$	34,953
Securities		392,220		-		392,220		-		392,220
Loans held for sale		1,373		-		1,373		-		1,373
Loans held for investment, net		743,604		-		-		720,806		720,806
Interest receivable		3,995		-		3,995		-		3,995
Bank owned life insurance		23,554		-		23,554		-		23,554
Forward sales commitments		186		-		186		-		186
Total	$	1,199,885	$	34,953	$	421,328	$	720,806	$	1,177,087
Liabilities:
Deposits	$	1,083,377	$	-	$	1,080,909	$	-	$	1,080,909
Short-term debt		70,000		-		-		70,000		70,000
Long-term debt		6,890		-		-		6,778		6,778
IRLC		92		-		92		-		92
Interest payable		295		-		295		-		295
Total	$	1,160,654	$	-	$	1,081,296	$	76,778	$	1,158,074