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Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables summarize the Company’s financial assets and liabilities that were measured at fair value on a recurring basis at September 30, 2021 and December 31, 2020:

						Fair Value Measurements Using
September 30, 2021		Fair Value				Level 1				Level 2				Level 3
Financial assets
Securities available-for-sale
U.S. Treasury Notes		$	8,578			$	8,578			$	—			$	—
U.S. Government agencies			123,264				—				123,264				—
Obligations of states, municipalities, and political    subdivisions			105,060				—				105,060				—
Mortgage-backed securities; residential
Agency			785,173				—				785,173				—
Non-Agency			64,009				—				64,009				—
Mortgage-backed securities; commercial
Agency			237,409				—				237,409				—
Corporate securities			66,827				—				66,827				—
Asset-backed securities			37,285				—				37,285				—
Equity and other securities, at fair value
Mutual funds			4,424				4,424				—				—
Equity securities			5,875				—				5,189				686
Servicing assets			23,597				—				—				23,597
Derivative assets			13,463				—				13,463				—
Financial liabilities
Derivative liabilities			12,348				—				12,348				—

						Fair Value Measurements Using
December 31, 2020		Fair Value				Level 1				Level 2				Level 3
Financial assets
Securities available-for-sale
U.S. Treasury Notes		$	23,812			$	23,812			$	—			$	—
U.S. Government agencies			113,551				—				113,551				—
Obligations of states, municipalities, and political    subdivisions			142,419				—				142,419
Mortgage-backed securities; residential
Agency			778,391				—				778,391				—
Non-Agency			32,981				—				32,981				—
Mortgage-backed securities; commercial
Agency			250,152				—				250,152				—
Corporate securities			60,768				—				60,768				—
Asset-backed securities			45,156				—				45,156				—
Equity and other securities, at fair value
Mutual funds			2,983				2,983				—				—
Equity securities			5,781				—				5,096				685
Servicing assets			22,042				—				—				22,042
Derivative assets			17,149				—				17,149				—
Financial liabilities
Derivative liabilities			18,133				—				18,133				—

Summary of Financial Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The following table presents additional information about financial assets measured at fair value on recurring basis for which the Company used significant unobservable inputs (Level 3):

	Nine Months Ended September 30,
	2021				2020				2021				2020
	Investment Securities								Servicing Assets
Balance, beginning of period	$	685			$	700			$	22,042			$	19,471
Additions, net		—				—				5,703				4,449
Change in fair value		1				(16	)			(4,148	)			(2,653	)
Balance, end of period	$	686			$	684			$	23,597			$	21,267

Summary of Unobservable Inputs Used in the Fair Value Measurements on Recurring Basis

The following table presents additional information about the unobservable inputs used in the fair value measurements on recurring basis that were categorized within Level 3 of the fair value hierarchy as of September 30, 2021:

Financial Instruments

Valuation Technique

Unobservable Inputs

Range of Inputs

Weighted Average Range

Impact to Valuation from an Increased or Higher Input Value

Single issuer trust preferred

Discounted cash flow

Discount rate

3.1% - 6.4%

4.5

%

Decrease

Servicing assets

Discounted cash flow

Prepayment speeds

0.5% - 31.8%

14.3

%

Decrease

Discount rate

(3.0)% - 50.0%

8.1

%

Decrease

Expected weighted average loan life

0.2 - 8.5 years

3.9 years

Increase

Summary of Assets Measured at Fair Value on Non-Recurring Basis, Excluding Acquired Impaired Loans

The following tables summarize the

Company’s assets that were measured at fair value on a non-recurring basis, excluding acquired impaired loans, as of September 30, 2021 and December 31, 2020:

						Fair Value Measurements Using
September 30, 2021		Fair Value				Level 1				Level 2				Level 3
Non-recurring
Impaired loans (excluding acquired impaired loans)
Commercial real estate		$	37,143			$	—			$	—			$	37,143
Residential real estate			3,946				—				—				3,946
Commercial and industrial			21,547				—				—				21,547
Assets held for sale			10,982				—				—				10,982
Other real estate owned			3,033				—				—				3,033

						Fair Value Measurements Using
December 31, 2020		Fair Value				Level 1				Level 2				Level 3
Non-recurring
Impaired loans (excluding acquired impaired loans)
Commercial real estate		$	41,135			$	—			$	—			$	41,135
Residential real estate			1,752				—				—				1,752
Commercial and industrial			28,508				—				—				28,508
Assets held for sale			13,023				—				—				13,023
Other real estate owned			6,350				—				—				6,350

Summary of Estimated Fair Values of Financial Instruments

The estimated fair values of financial instruments not carried at fair value and levels within the fair value hierarchy are as follows:

						September 30,								December 31,
		Fair Value				2021								2020
		Hierarchy Level				Carrying Amount				Estimated Fair Value				Carrying Amount				Estimated Fair Value
Financial assets
Cash and due from banks			1			$	46,900			$	46,900			$	41,432			$	41,432
Interest bearing deposits with other banks			2				95,978				95,978				41,988				41,988
Securities held-to-maturity			2				3,887				4,033				4,395				4,573
Other restricted stock			2				15,927				15,927				10,507				10,507
Loans held for sale			3				48,372				54,739				7,924				8,848
Loans and lease receivables, net (less impaired    loans at fair value)			3				4,485,994				4,478,323				4,202,793				4,205,906
Accrued interest receivable			3				18,857				18,857				20,678				20,678
Financial liabilities
Non-interest-bearing deposits			2				2,117,749				2,117,749				1,762,676				1,762,676
Interest-bearing deposits			2				3,040,529				3,041,101				2,989,355				2,990,735
Accrued interest payable			2				1,687				1,687				1,478				1,478
Paycheck Protection Program Liquidity Facility			2				156,404				156,404				371,907				371,907
Federal Home Loan Bank advances			2				355,000				355,000				234,000				234,000
Securities sold under repurchase agreement			2				27,715				27,715				41,994				41,994
Subordinated notes			2				73,473				83,291				73,342				76,627
Junior subordinated debentures			3				36,796				40,777				36,451				40,543

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Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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