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Fair Value Measurements (Tables) | 12 Months Ended
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Dec. 31, 2020
Fair Value Disclosures [Abstract] |
Assets Measured at Fair Value on a Recurring and Non-Recurring Basis | The following tables present for each of the fair-value hierarchy levels the Company’s assets that are measured at fair value on a recurring and non-recurring basis as of December 31 (in thousands):
|  | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Total |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Measured on a recurring basis: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies and government sponsored enterprises |  | $ | - |  |  | $ | 6,635 |  |  | $ | - |  |  | $ | 6,635 |
Mortgage-backed securities |  |  | - |  |  |  | 621,424 |  |  |  | - |  |  |  | 621,424 |
Other liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedging derivative instruments |  |  | - |  |  |  | (311 | ) |  |  | - |  |  |  | (311 | )
Fair value adjusted through comprehensive income |  | $ | - |  |  | $ | 627,748 |  |  | $ | - |  |  | $ | 627,748 |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments – cash flow hedges |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Derivative instruments – interest rate products |  |  | - |  |  |  | 19,626 |  |  |  | - |  |  |  | 19,626 |
Derivative instruments – credit contracts |  |  | - |  |  |  | 23 |  |  |  | - |  |  |  | 23 |
Derivative instruments – mortgage banking |  |  | - |  |  |  | 471 |  |  |  | - |  |  |  | 471 |
Other liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments – interest rate products |  |  | - |  |  |  | (19,837 | ) |  |  | - |  |  |  | (19,837 | )
Derivative instruments – credit contracts |  |  | - |  |  |  | (86 | ) |  |  | - |  |  |  | (86 | )
Derivative instruments – mortgage banking |  |  | - |  |  |  | (1 | ) |  |  | - |  |  |  | (1 | )
Fair value adjusted through net income |  | $ | - |  |  | $ | 196 |  |  | $ | - |  |  | $ | 196 |
Measured on a nonrecurring basis: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans held for sale |  | $ | - |  |  | $ | 4,305 |  |  | $ | - |  |  | $ | 4,305 |
Collateral dependent loans |  |  | - |  |  |  | - |  |  |  | 29,434 |  |  |  | 29,434 |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan servicing rights |  |  | - |  |  |  | - |  |  |  | 1,320 |  |  |  | 1,320 |
Other real estate owned |  |  | - |  |  |  | - |  |  |  | 2,966 |  |  |  | 2,966 |
Total |  | $ | - |  |  | $ | 4,305 |  |  | $ | 33,720 |  |  | $ | 38,025 |
There were no transfers between Levels 1 and 2 during the years ended December 31, 2020 and 2019. There were no liabilities measured at fair value on a nonrecurring basis during the years ended December 31, 2020 and 2019.
|  | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Total |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Measured on a recurring basis: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agencies and government sponsored enterprises |  | $ | - |  |  | $ | 26,877 |  |  | $ | - |  |  | $ | 26,877 |
Mortgage-backed securities |  |  | - |  |  |  | 391,040 |  |  |  | - |  |  |  | 391,040 |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedging derivative instruments |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Fair value adjusted through comprehensive income |  | $ | - |  |  | $ | 417,917 |  |  | $ | - |  |  | $ | 417,917 |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments – interest rate products |  | $ | - |  |  | $ | 6,599 |  |  | $ | - |  |  | $ | 6,599 |
Derivative instruments – credit contracts |  |  | - |  |  |  | 13 |  |  |  | - |  |  |  | 13 |
Derivative instruments – mortgage banking |  |  | - |  |  |  | 119 |  |  |  | - |  |  |  | 119 |
Other liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments – interest rate products |  |  | - |  |  |  | (6,720 | ) |  |  | - |  |  |  | (6,720 | )
Derivative instruments – credit contracts |  |  | - |  |  |  | (18 | ) |  |  | - |  |  |  | (18 | )
Derivative instruments – mortgage banking |  |  | - |  |  |  | (7 | ) |  |  | - |  |  |  | (7 | )
Fair value adjusted through net income |  | $ | - |  |  | $ | (14 | ) |  | $ | - |  |  | $ | (14 | )
Measured on a nonrecurring basis: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans held for sale |  | $ | - |  |  | $ | 4,224 |  |  | $ | - |  |  | $ | 4,224 |
Collateral dependent impaired loans |  |  | - |  |  |  | - |  |  |  | 3,630 |  |  |  | 3,630 |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loan servicing rights |  |  | - |  |  |  | - |  |  |  | 1,129 |  |  |  | 1,129 |
Other real estate owned |  |  | - |  |  |  | - |  |  |  | 468 |  |  |  | 468 |
Total |  | $ | - |  |  | $ | 4,224 |  |  | $ | 5,227 |  |  | $ | 9,451 |
There were no transfers between Levels 1 and 2 during the years ended December 31, 2019 and 2018. There were no liabilities measured at fair value on a nonrecurring basis during the years ended December 31, 2019 and 2018.
Additional Quantitative Information about Assets Measured at Fair Value on Recurring and Non-Recurring Basis | The following table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands)
Asset |  | Fair Value |  |  | Valuation Technique |  | Unobservable Input |  | Unobservable Input Value / Range
Collateral dependent loans |  | $ | 29,434 |  |  | Appraisal of collateral (1) |  | Appraisal adjustments (2) |  | 33.2% (3) / 0 - 35%
Loan servicing rights |  | $ | 1,320 |  |  | Discounted cash flow |  | Discount rate |  | 10.3% (3)
|  |  |  |  |  |  |  | Constant prepayment rate |  | 16.7% (3)
Other real estate owned |  | $ | 2,966 |  |  | Appraisal of collateral (1) |  | Appraisal adjustments (2) |  | 27.7% (3) / 20 - 46%
(1) | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.
(2) | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.
(3) | Weighted averages.
Carrying Amount, Estimated Fair Value, and Placement in Fair Value Hierarchy of Financial Instruments | The following presents the carrying amount, estimated fair value, and placement in the fair value measurement hierarchy of the Company’s financial instruments as of December 31(in thousands)
|  | Level in |  | 2020 |  |  | 2019 |
|  | Fair Value |  |  |  |  |  | Estimated |  |  |  |  |  |  | Estimated |
|  | Measurement |  | Carrying |  |  | Fair |  |  | Carrying |  |  | Fair |
|  | Hierarchy |  | Amount |  |  | Value |  |  | Amount |  |  | Value |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | Level 1 |  | $ | 93,878 |  |  | $ | 93,878 |  |  | $ | 112,947 |  |  | $ | 112,947 |
Securities available for sale |  | Level 2 |  |  | 628,059 |  |  |  | 628,059 |  |  |  | 417,917 |  |  |  | 417,917 |
Securities held to maturity |  | Level 2 |  |  | 271,973 |  |  |  | 282,035 |  |  |  | 359,000 |  |  |  | 363,259 |
Loans held for sale |  | Level 2 |  |  | 4,305 |  |  |  | 4,305 |  |  |  | 4,224 |  |  |  | 4,224 |
Loans |  | Level 2 |  |  | 3,513,284 |  |  |  | 3,549,770 |  |  |  | 3,186,875 |  |  |  | 3,201,814 |
Loans (1) |  | Level 3 |  |  | 29,434 |  |  |  | 29,434 |  |  |  | 3,630 |  |  |  | 3,630 |
Accrued interest receivable |  | Level 1 |  |  | 15,635 |  |  |  | 15,635 |  |  |  | 11,308 |  |  |  | 11,308 |
FHLB and FRB stock |  | Level 2 |  |  | 8,619 |  |  |  | 8,619 |  |  |  | 20,637 |  |  |  | 20,637 |
Derivative instruments – cash flow hedge |  | Level 2 |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Derivative instruments – interest rate products |  | Level 2 |  |  | 19,626 |  |  |  | 19,626 |  |  |  | 6,599 |  |  |  | 6,599 |
Derivative instruments – credit contracts |  | Level 2 |  |  | 23 |  |  |  | 23 |  |  |  | 13 |  |  |  | 13 |
Derivative instruments – mortgage banking |  | Level 2 |  |  | 471 |  |  |  | 471 |  |  |  | 119 |  |  |  | 119 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-maturity deposits |  | Level 1 |  |  | 3,392,774 |  |  |  | 3,392,774 |  |  |  | 2,375,486 |  |  |  | 2,375,486 |
Time deposits |  | Level 2 |  |  | 885,593 |  |  |  | 887,113 |  |  |  | 1,180,189 |  |  |  | 1,179,991 |
Short-term borrowings |  | Level 1 |  |  | 5,300 |  |  |  | 5,300 |  |  |  | 275,500 |  |  |  | 275,500 |
Long-term borrowings |  | Level 2 |  |  | 73,623 |  |  |  | 83,953 |  |  |  | 39,273 |  |  |  | 41,083 |
Accrued interest payable |  | Level 1 |  |  | 4,381 |  |  |  | 4,381 |  |  |  | 10,942 |  |  |  | 10,942 |
Derivative instruments – cash flow hedges |  | Level 2 |  |  | 311 |  |  |  | 311 |  |  |  | - |  |  |  | - |
Derivative instruments – interest rate products |  | Level 2 |  |  | 19,837 |  |  |  | 19,837 |  |  |  | 6,720 |  |  |  | 6,720 |
Derivative instruments – credit contracts |  | Level 2 |  |  | 86 |  |  |  | 86 |  |  |  | 18 |  |  |  | 18 |
Derivative instruments – mortgage banking |  | Level 2 |  |  | 1 |  |  |  | 1 |  |  |  | 7 |  |  |  | 7 |
(1) | Comprised of collateral dependent loans.

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