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 | |
|