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Fair Value (Tables) | 9 Months Ended
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Sep. 30, 2021
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 assets that were measured at fair value on a recurring and nonrecurring basis at September 30, 2021.
($ in thousands)
Description of Financial Assets |  | Fair Value at September 30, 2021 |  | 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 |  | $ | 68,608 |  |  | — |  |  | 68,608 |  |  | — |
Mortgage-backed securities |  | 2,191,530 |  |  | — |  |  | 2,191,530 |  |  | — |
Corporate bonds |  | 44,937 |  |  | — |  |  | 44,937 |  |  | — |
Total available for sale securities |  | $ | 2,305,075 |  |  | — |  |  | 2,305,075 |  |  | — |
Presold mortgages in process of settlement |  | $ | 16,746 |  |  | 16,746 |  |  | — |  |  | — |
Nonrecurring |  |  |  |  |  |  |  |
Individually evaluated loans |  | $ | 12,279 |  |  | — |  |  | — |  |  | 12,279 |
Foreclosed real estate |  | 462 |  |  | — |  |  | — |  |  | 462 |
The following table summarizes the Company’s financial assets that were measured at fair value on a recurring and nonrecurring basis at December 31, 2020.
($ in thousands) |  |  |  |
Description of Financial Assets |  | Fair Value at December 31, 2020 |  | 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 |  | $ | 70,206 |  |  | — |  |  | 70,206 |  |  | — |
Mortgage-backed securities |  | 1,337,706 |  |  | — |  |  | 1,337,706 |  |  | — |
Corporate bonds |  | 45,220 |  |  | — |  |  | 45,220 |  |  | — |
Total available for sale securities |  | $ | 1,453,132 |  |  | — |  |  | 1,453,132 |  |  | — |
Presold mortgages in process of settlement |  | $ | 42,271 |  |  | 42,271 |  |  | — |  |  | — |
Nonrecurring |  |  |  |  |  |  |  |
Impaired loans |  | $ | 22,142 |  |  | — |  |  | — |  |  | 22,142 |
Foreclosed real estate |  | 1,484 |  |  | — |  |  | — |  |  | 1,484 |
Schedule of significant unobservable inputs | For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of September 30, 2021, the significant unobservable inputs used in the fair value measurements were as follows:
($ in thousands) |  |  |  |  |  |
Description |  | Fair Value at September 30, 2021 |  | Valuation Technique |  | Significant Unobservable Inputs |  | Range (Weighted Average)
Individually evaluated loans - collateral-dependent |  | $ | 7,973 |  |  | Appraised value |  | Discounts applied for estimated costs to sell |  | 10%
Individually evaluated loans - cash flow dependent |  | 4,306 |  |  | PV of expected cash flows |  | Discount rates used in the calculation of the present value ("PV") of expected cash flows |  | 4%-11% (6.23%)
Foreclosed real estate |  | 462 |  |  | Appraised value |  | Discounts for estimated costs to sell |  | 10%
For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2020, the significant unobservable inputs used in the fair value measurements were as follows:
($ in thousands) |  |  |  |  |  |
Description |  | Fair Value at December 31, 2020 |  | Valuation Technique |  | Significant Unobservable Inputs |  | Range (Weighted Average)
Impaired loans - valued at collateral value |  | $ | 16,000 |  |  | Appraised value |  | Discounts applied for estimated costs to sell |  | 10%
Impaired loans - valued at PV of expected cash flows |  | 6,142 |  |  | PV of expected cash flows |  | Discount rates used in the calculation of PV of expected cash flows |  | 4%-11% (6.21%)
Foreclosed real estate |  | 1,484 |  |  | Appraised value |  | Discounts for estimated costs to sell |  | 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 at September 30, 2021 and December 31, 2020 are as follows:
|  |  | September 30, 2021 |  | December 31, 2020
($ 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 |  | $ | 80,090 |  |  | 80,090 |  |  | 93,724 |  |  | 93,724 |
Due from banks, interest-bearing | Level 1 |  | 314,103 |  |  | 314,103 |  |  | 273,566 |  |  | 273,566 |
Securities held to maturity | Level 2 |  | 367,893 |  |  | 369,953 |  |  | 167,551 |  |  | 170,734 |
SBA loans held for sale | Level 2 |  | 1,518 |  |  | 1,766 |  |  | 6,077 |  |  | 7,465 |
Total loans, net of allowance | Level 3 |  | 4,806,213 |  |  | 4,799,181 |  |  | 4,678,927 |  |  | 4,661,197 |
Accrued interest receivable | Level 1 |  | 19,422 |  |  | 19,422 |  |  | 20,272 |  |  | 20,272 |
Bank-owned life insurance | Level 1 |  | 133,919 |  |  | 133,919 |  |  | 106,974 |  |  | 106,974 |
SBA Servicing Asset | Level 3 |  | 5,895 |  |  | 6,954 |  |  | 5,788 |  |  | 6,569 |
Deposits | Level 2 |  | 7,432,765 |  |  | 7,433,494 |  |  | 6,273,596 |  |  | 6,275,329 |
Borrowings | Level 2 |  | 60,764 |  |  | 53,962 |  |  | 61,829 |  |  | 53,321 |
Accrued interest payable | Level 2 |  | 609 |  |  | 609 |  |  | 904 |  |  | 904 |
Commitments to extend credit | Level 3 |  | — |  |  | 11,074 |  |  | — |  |  | 461 |

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- 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=123874694&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19279-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2C -URI http://asc.fasb.org/extlink&oid=123874694&loc=SL7498348-110258 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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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) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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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 Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=123594938&loc=d3e13467-108611 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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