XML 53 R42.htm IDEA: XBRL DOCUMENT

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2021

FAIR VALUE OF FINANCIAL INSTRUMENTS

Summary of assets measured at fair value on a recurring basis


June 30, 2021		Level 1 Inputs			Level 2 Inputs			Level 3 Inputs			Total Fair Value

			(dollars in thousands)
Debt securities available-for-sale:
U.S. Treasury		$	60,593		$	—		$	—		$	60,593
U.S. government agency			—			129,872			—			129,872
Municipal			—			291,251			—			291,251
Mortgage-backed:
Agency residential			—			147,147			—			147,147
Agency commercial			—			133,440			—			133,440
Corporate			—			73,964			—			73,964
Equity securities with readily determinable fair values			3,338			—			—			3,338
Mortgage servicing rights			—			—			7,319			7,319
Derivative financial assets			—			10,694			—			10,694
Derivative financial liabilities			—			11,770			—			11,770


December 31, 2020		Level 1 Inputs			Level 2 Inputs			Level 3 Inputs			Total Fair Value

			(dollars in thousands)
Debt securities available-for-sale:
U.S. government agency		$	—		$	121,993		$	—		$	121,993
Municipal			—			274,261			—			274,261
Mortgage-backed:
Agency residential			—			203,252			—			203,252
Agency commercial			—			250,766			—			250,766
Corporate			—			72,597			—			72,597
Equity securities with readily determinable fair values			3,292			—			—			3,292
Mortgage servicing rights			—			—			5,934			5,934
Derivative financial assets			—			15,360			—			15,360
Derivative financial liabilities			—			16,818			—			16,818

Schedule of quantitative information about the unobservable inputs used in recurring Level 3 fair value measurements

The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands):


June 30, 2021		Fair Value			Valuation Technique		Unobservable Inputs		Range (Weighted Average)
Mortgage servicing rights		$	7,319		Discounted cash flows		Constant pre-payment rates (CPR)		7.0% to 85.0% (12.8%)
							Discount rate		9.0% to 11.0% (9.0%)

December 31, 2020		Fair Value			Valuation Technique		Unobservable Inputs		Range (Weighted Average)
Mortgage servicing rights		$	5,934		Discounted cash flows		Constant pre-payment rates (CPR)		7.0% to 85.0% (17.3%)
							Discount rate		9.0% to 11.0% (9.0%)

Summary of assets measured at fair value on a nonrecurring basis


June 30, 2021		Level 1 Inputs			Level 2 Inputs			Level 3 Inputs			Total Fair Value

			(dollars in thousands)
Loans held for sale		$	—		$	5,951		$	—		$	5,951
Collateral-dependent impaired loans			—			—			23,926			23,926
Bank premises held for sale			—			—			121			121
Foreclosed assets			—			—			7,757			7,757


December 31, 2020		Level 1 Inputs			Level 2 Inputs			Level 3 Inputs			Total Fair Value

			(dollars in thousands)
Loans held for sale		$	—		$	14,713		$	—		$	14,713
Collateral-dependent impaired loans			—			—			33,320			33,320
Bank premises held for sale			—			—			121			121
Foreclosed assets			—			—			4,168			4,168

Schedule of quantitative information about the unobservable inputs used in non-recurring Level 3 fair value measurements

The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands):


June 30, 2021		Fair Value			Valuation Technique		Unobservable Inputs		Range (Weighted Average)
Collateral-dependent impaired loans		$	23,926		Appraisal of collateral		Appraisal adjustments		Not meaningful
Bank premises held for sale			121		Appraisal		Appraisal adjustments		7% (7%)
Foreclosed assets			7,757		Appraisal		Appraisal adjustments		7% (7%)

December 31, 2020		Fair Value			Valuation Technique		Unobservable Inputs		Range (Weighted Average)
Collateral-dependent impaired loans		$	33,320		Appraisal of collateral		Appraisal adjustments		Not meaningful
Bank premises held for sale			121		Appraisal		Appraisal adjustments		7% (7%)
Foreclosed assets			4,168		Appraisal		Appraisal adjustments		7% (7%)

Summary information on the carrying amounts and estimated fair values of the Company's financial instruments


		Fair Value		June 30, 2021						December 31, 2020
		Hierarchy		Carrying			Estimated			Carrying			Estimated
		Level		Amount			Fair Value			Amount			Fair Value

					(dollars in thousands)
Financial assets:
Cash and cash equivalents		Level 1		$	545,603		$	545,603		$	312,451		$	312,451
Debt securities held-to-maturity		Level 2			309,132			314,924			68,395			72,441
Restricted stock		Level 3			2,739			2,739			2,498			2,498
Loans, net		Level 3			2,125,612			2,146,730			2,215,168			2,235,767
Investments in unconsolidated subsidiaries		Level 3			1,165			1,165			1,165			1,165
Accrued interest receivable		Level 2			12,785			12,785			14,255			14,255

Financial liabilities:
Time deposits		Level 3			278,859			279,531			299,474			300,989
Securities sold under agreements to repurchase		Level 2			46,756			46,756			45,736			45,736
Subordinated notes		Level 3			39,277			38,830			39,238			38,403
Junior subordinated debentures		Level 3			37,681			28,851			37,648			23,766
Accrued interest payable		Level 2			957			957			1,151			1,151