XML 87 R41.htm IDEA: XBRL DOCUMENT v3.20.4
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Financial Instruments Measured at Fair Value on a Recurring and Non-recurring Basis
The results of the fair value hierarchy as of December 31, 2020, are as follows:
 
           
Fair Value Measurements Using
  
    
Carrying
Value
     
Quoted Prices
in Active Markets
for Identical Assets
(Level 1)
     
Significant
Observable Inputs
(Level 2)
     
Significant Other
Unobservable
Inputs
(Level 3)
  
(dollars in thousands)
                            
Financial Instruments Measured at Fair Value on a Recurring Basis
                                    
Securities AFS
                                    
SBA Backed Securities
   
$
44,039
 
   
$
—  
 
   
$
44,039
 
   
$
—  
 
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities
   
 
177,741
 
   
 
—  
 
   
 
177,741
 
   
 
—  
 
Privately Issued Residential Mortgage-Backed Securities
   
 
328
 
   
 
—  
 
   
 
328
 
   
 
—  
 
Obligations Issued by States and Political Subdivisions
   
 
52,276
 
   
 
—  
 
   
 
—  
 
   
 
52,276
 
Other Debt Securities
   
 
8,064
 
   
 
—  
 
   
 
8,064
 
   
 
—  
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Total
   
$
 282,448
 
   
$
—  
 
   
$
230,172
 
   
$
52,276
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Equity Securities
   
$
1,668
 
   
$
303
 
   
$
1,365
 
   
$
—  
 
Financial Instruments Measured at Fair Value on a
Non-recurring
Basis
                                    
Impaired Loans
   
$
3,178
 
   
$
—  
 
   
$
—  
 
   
$
3,178
 
The results of the fair value hierarchy as of December 31, 2019, are as follows:
 
            Fair Value Measurements Using  
     Carrying
Value		      Quoted Prices
in Active Markets
for Identical Assets
(Level 1)		      Significant
Observable Inputs
(Level 2)		      Significant Other
Unobservable
Inputs
(Level 3)		  
(dollars in thousands)                            
Financial Instruments Measured at Fair Value on a Recurring Basis
                                    
Securities AFS
                                    
SBA Backed Securities
    $ 54,211      $ —        $ 54,211      $ —    
U.S. Government Agency and Sponsored Enterprises Mortgage-Backed Securities
      184,187        —          184,187        —    
Privately Issued Residential Mortgage-Backed Securities
      396        —          396        —    
Obligations Issued by States and Political Subdivisions
      18,076        —          4,775        13,301  
Other Debt Securities
      3,632        —          3,632        —    
    
 
 
     
 
 
     
 
 
     
 
 
  
Total
    $  260,502      $ —        $  247,201      $ 13,301  
    
 
 
     
 
 
     
 
 
     
 
 
  
Equity Securities
    $ 1,688      $ 343      $ 1,345      $ —    
Financial Instruments Measured at Fair Value on a
Non-recurring
Basis
                                    
Impaired Loans
    $ 877      $ —        $ —        $ 877  
Assets Measured at Fair Value
The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in
 
thousands) at December 31, 2020. Management continues to monitor the assumptions used to value the assets listed below.
 
Asset
  
Fair Value
  
Valuation Technique
  
Unobservable Input
  
Unobservable Input
Value or Range
Securities AFS
(1)
  
$ 52,276
  
Discounted cash flow
  
Discount rate
  
0%-1.0%
(2)
Impaired Loans
  
3,178
  
Appraisal of collateral
(3)
  
Appraisal adjustments
(4)
 
0%-17% discount
The following table presents additional information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands) at December 31, 2019. Management continues to monitor the assumptions used to value the assets listed below.
 
Asset
  
Fair Value
  
Valuation Technique
  
Unobservable Input
  
Unobservable Input
Value or Range
Securities AFS
(1)
   $ 13,301   Discounted cash flow   Discount rate  
1.5%-3.2%
(2)
Impaired Loans
   877   Appraisal of collateral
(3)
   Appraisal adjustments
(4)
 
0%-30% discount
 
(1)
 
Municipal securities generally have maturities of one year or less and, therefore, the amortized cost equates to the fair value.
(2)
 
Weighted averages.
(3)
 
Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.
(4)
 
Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated expenses.
Changes in Level 3 Securities
The changes in Level 3 securities for the year ended December 31, 2019 are as shown in the table below:
 
     Obligations
Issued by States
and Political
Subdivisions		  
(dollars in thousands)       
Balance at December 31, 2018
    $ 88,728  
Purchases
      21,408  
Maturities/redemptions
      (96,812 ) 
Transfer to Level 2
      —    
Amortization
      (23 ) 
Change in fair value
      —    
    
 
 
  
Balance at December 31, 2019
    $ 13,301