XML 45 R35.htm IDEA: XBRL DOCUMENT

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2022

FAIR VALUE OF FINANCIAL INSTRUMENTS

Summary of assets measured at fair value on a recurring basis


March 31, 2022		Level 1 Inputs			Level 2 Inputs			Level 3 Inputs			Total Fair Value

			(dollars in thousands)
Debt securities available-for-sale:
U.S. Treasury		$	162,637		$	—		$	—		$	162,637
U.S. government agency			—			50,017			—			50,017
Municipal			—			275,564			—			275,564
Mortgage-backed:
Agency residential			—			237,528			—			237,528
Agency commercial			—			149,311			—			149,311
Corporate			—			58,865			—			58,865
Equity securities with readily determinable fair values			3,256			—			—			3,256
Mortgage servicing rights			—			—			9,723			9,723
Derivative financial assets			—			3,946			—			3,946
Derivative financial liabilities			—			3,936			—			3,936


December 31, 2021		Level 1 Inputs			Level 2 Inputs			Level 3 Inputs			Total Fair Value

			(dollars in thousands)
Debt securities available-for-sale:
U.S. Treasury		$	108,976		$	—		$	—		$	108,976
U.S. government agency			—			128,105			—			128,105
Municipal			—			297,077			—			297,077
Mortgage-backed:
Agency residential			—			179,466			—			179,466
Agency commercial			—			164,061			—			164,061
Corporate			—			64,483			—			64,483
Equity securities with readily determinable fair values			3,443			—			—			3,443
Mortgage servicing rights			—			—			7,994			7,994
Derivative financial assets			—			8,697			—			8,697
Derivative financial liabilities			—			9,377			—			9,377

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):


March 31, 2022		Fair Value			Valuation Technique		Unobservable Inputs		Range (Weighted Average)
Mortgage servicing rights		$	9,723		Discounted cash flows		Constant pre-payment rates (CPR)		7.0% to 83.4% (8.6%)
							Discount rate		9.0% to 11.0% (9.0%)

December 31, 2021		Fair Value			Valuation Technique		Unobservable Inputs		Range (Weighted Average)
Mortgage servicing rights		$	7,994		Discounted cash flows		Constant pre-payment rates (CPR)		7.0% to 88.9% (11.7%)
							Discount rate		9.0% to 11.0% (9.0%)

Summary of assets measured at fair value on a nonrecurring basis


March 31, 2022		Level 1 Inputs			Level 2 Inputs			Level 3 Inputs			Total Fair Value

			(dollars in thousands)
Loans held for sale		$	—		$	1,777		$	—		$	1,777
Collateral-dependent impaired loans			—			—			19,242			19,242
Bank premises held for sale			—			—			1,081			1,081
Foreclosed assets			—			—			3,043			3,043


December 31, 2021		Level 1 Inputs			Level 2 Inputs			Level 3 Inputs			Total Fair Value

			(dollars in thousands)
Loans held for sale		$	—		$	4,942		$	—		$	4,942
Collateral-dependent impaired loans			—			—			22,423			22,423
Bank premises held for sale			—			—			1,452			1,452
Foreclosed assets			—			—			3,278			3,278

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):


March 31, 2022		Fair Value			Valuation Technique		Unobservable Inputs		Range (Weighted Average)
Collateral-dependent impaired loans		$	19,242		Appraisal of collateral		Appraisal adjustments		Not meaningful
Bank premises held for sale			1,081		Appraisal		Appraisal adjustments		7% (7%)
Foreclosed assets			3,043		Appraisal		Appraisal adjustments		7% (7%)

December 31, 2021		Fair Value			Valuation Technique		Unobservable Inputs		Range (Weighted Average)
Collateral-dependent impaired loans		$	22,423		Appraisal of collateral		Appraisal adjustments		Not meaningful
Bank premises held for sale			1,452		Appraisal		Appraisal adjustments		7% (7%)
Foreclosed assets			3,278		Appraisal		Appraisal adjustments		7% (7%)

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


		Fair Value		March 31, 2022						December 31, 2021
		Hierarchy		Carrying			Estimated			Carrying			Estimated
		Level		Amount			Fair Value			Amount			Fair Value

					(dollars in thousands)
Financial assets:
Cash and cash equivalents		Level 1		$	358,979		$	358,979		$	409,268		$	409,268
Debt securities held-to-maturity		Level 2			438,054			416,603			336,185			336,027
Restricted stock		Level 3			2,739			2,739			2,739			2,739
Loans, net		Level 3			2,463,277			2,476,472			2,475,753			2,494,686
Investments in unconsolidated subsidiaries		Level 3			1,165			1,165			1,165			1,165
Accrued interest receivable		Level 2			13,527			13,527			14,901			14,901

Financial liabilities:
Time deposits		Level 3			295,169			291,367			328,208			327,779
Securities sold under agreements to repurchase		Level 2			50,834			50,834			61,256			61,256
Subordinated notes		Level 3			39,336			40,546			39,316			41,602
Junior subordinated debentures		Level 3			37,731			33,683			37,714			33,640
Accrued interest payable		Level 2			560			560			1,043			1,043