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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Financial instruments that were measured at fair value on a recurring and nonrecurring basis

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2019.

($ in thousands)
Description of Financial Instruments		Fair Value at December 31, 2019				Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
Government-sponsored enterprise securities		$	20,009			—			20,009			—
Mortgage-backed securities		767,285				—			767,285			—
Corporate bonds		34,651				—			34,651			—
Total available for sale securities		$	821,945			—			821,945			—
Presold mortgages in process of settlement		$	19,712			19,712			—			—
Nonrecurring
Impaired loans		$	16,215			—			—			16,215
Foreclosed real estate		1,830				—			—			1,830

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2018.

($ in thousands)
Description of Financial Instruments		Fair Value at December 31, 2018				Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Recurring
Securities available for sale:
Government-sponsored enterprise securities		$	82,662			—			82,662			—
Mortgage-backed securities		385,551				—			385,551			—
Corporate bonds		33,138				—			33,138			—
Total available for sale securities		$	501,351			—			501,351			—
Presold mortgages in process of settlement		$	4,279			4,279			—			—
Nonrecurring
Impaired loans		$	13,071			—			—			13,071
Foreclosed real estate		7,440				—			—			7,440

Schedule of significant unobservable inputs

For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)
Description		Fair Value at December 31, 2019				Valuation Technique		Significant Unobservable Inputs		Range (Weighted Average)
Impaired loans - valued at collateral value		$	10,718			Appraised value		Discounts applied for estimated costs to sell		10%
Impaired loans - valued at PV of expected cash flows		$	5,497			PV of expected cash flows		Discount rates used in the calculation of PV of expected cash flows		4-11% (6.50%)
Foreclosed real estate		1,830				Appraised value		Discounts for estimated costs to sell		10%

For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2018, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)
Description		Fair Value at December 31, 2018				Valuation Technique		Significant Unobservable Inputs		General Range of Significant Unobservable Input Values
Impaired loans		$	13,071			Appraised value; PV of expected cash flows		Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell		0-10%
Foreclosed real estate		7,440				Appraised value; List or contract price		Discounts to reflect current market conditions and estimated costs to sell		0-10%

Schedule of the carrying amounts and estimated fair values of financial instruments

The carrying amounts and estimated fair values of financial instruments not carried at fair value as of December 31, 2019 and 2018 are as follows:

			December 31, 2019							December 31, 2018
($ in thousands)	Level in Fair Value Hierarchy		Carrying Amount				Estimated Fair Value			Carrying Amount			Estimated Fair Value
Cash and due from banks, noninterest-bearing	Level 1		$	64,519			64,519			56,050			56,050
Due from banks, interest-bearing	Level 1		166,783				166,783			406,848			406,848
Securities held to maturity	Level 2		67,932				68,333			101,237			99,906
Total loans, net of allowance	Level 3		4,432,068				4,407,610			4,228,025			4,181,139
Accrued interest receivable	Level 1		16,648				16,648			16,004			16,004
Bank-owned life insurance	Level 1		104,441				104,441			101,878			101,878
SBA Servicing Asset	Level 3		5,383				5,649			4,419			4,617
Deposits	Level 2		4,931,355				4,930,751			4,659,339			4,653,522
Borrowings	Level 2		300,671				295,399			406,609			402,556
Accrued interest payable	Level 2		2,154				2,154			1,976			1,976

X

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

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-Publisher FASB
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- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (bbb)
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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References

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-Topic 825
-SubTopic 10
-Section 50
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