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Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 2021
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 nonrecurring basis as of the dates indicated (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 |
September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Measured on a recurring basis: |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agency and government sponsored enterprises |  | $ | — |  |  | $ | 6,531 |  |  | $ | — |  |  | $ | 6,531 |
Mortgage-backed securities |  |  | — |  |  |  | 1,091,419 |  |  |  | — |  |  |  | 1,091,419 |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |
Hedging derivative instruments |  |  | — |  |  |  | 1,112 |  |  |  | — |  |  |  | 1,112 |
Fair value adjusted through comprehensive income |  | $ | — |  |  | $ | 1,099,062 |  |  | $ | — |  |  | $ | 1,099,062 |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments - interest rate swaps |  |  | — |  |  |  | 14,653 |  |  |  | — |  |  |  | 14,653 |
Derivative instruments - credit contracts |  |  | — |  |  |  | - |  |  |  | — |  |  |  | - |
Derivative instruments - mortgage banking |  |  | — |  |  |  | 374 |  |  |  | — |  |  |  | 374 |
Other liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments - interest rate swaps |  |  | — |  |  |  | (14,658 | ) |  |  | — |  |  |  | (14,658 | )
Derivative instruments - credit contracts |  |  | — |  |  |  | (1 | ) |  |  | — |  |  |  | (1 | )
Derivative instruments - mortgage banking |  |  | — |  |  |  | (5 | ) |  |  | — |  |  |  | (5 | )
Fair value adjusted through net income |  | $ | — |  |  | $ | 363 |  |  | $ | — |  |  | $ | 363 |
Measured on a nonrecurring basis: |  |  |  |  |  |  |  |  |  |  |  |
Loans: |  |  |  |  |  |  |  |  |  |  |  |
Loans held for sale |  | $ | — |  |  | $ | 5,916 |  |  | $ | — |  |  | $ | 5,916 |
Collateral dependent loans |  |  | — |  |  |  | — |  |  |  | 54,554 |  |  |  | 54,554 |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |
Long-lived assets held for sale |  |  | — |  |  |  | 4,341 |  |  |  | — |  |  |  | 4,341 |
Loan servicing rights |  |  | — |  |  |  | — |  |  |  | 1,484 |  |  |  | 1,484 |
Total |  | $ | — |  |  | $ | 10,257 |  |  | $ | 56,038 |  |  | $ | 66,295 |
There were no transfers between Levels 1 and 2 during the nine months ended September 30, 2021. There were no liabilities measured at fair value on a nonrecurring basis during the nine months ended September 30, 2021.
|  | Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |  |  | Total |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |
Measured on a recurring basis: |  |  |  |  |  |  |  |  |  |  |  |
Securities available for sale: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Government agency 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 swaps |  |  | — |  |  |  | 19,626 |  |  |  | — |  |  |  | 19,626 |
Derivative instruments - credit contracts |  |  | — |  |  |  | 23 |  |  |  | — |  |  |  | 23 |
Derivative instruments - mortgage banking |  |  | — |  |  |  | 471 |  |  |  | — |  |  |  | 471 |
Other liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments - interest rate swaps |  |  | — |  |  |  | (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 nine months ended September 30, 2020. There were no liabilities measured at fair value on a nonrecurring basis during the nine months ended September 30, 2020.
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 as of September 30, 2021 (dollars in thousands).
Asset |  | Fair Value |  |  | Valuation Technique |  | Unobservable Input |  | Unobservable Input Value or Range
Collateral dependent loans |  | $ | 54,554 |  |  | Appraisal of collateral (1) |  | Appraisal adjustments (2) |  | 27.2% (3) / 0 - 35%
Loan servicing rights |  |  | 1,484 |  |  | Discounted cash flow |  | Discount rate |  | 10.3% (3)
|  |  |  |  |  |  | Constant prepayment rate |  | 14.5% (3)
(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 (in thousands) the carrying amount, estimated fair value, and placement in the fair value measurement hierarchy of the Company’s financial instruments as of the dates indicated.
|  | Level in |  | September 30, 2021 |  |  | December 31, 2020 |
|  | Fair Value |  |  |  |  | Estimated |  |  |  |  |  | Estimated |
|  | Measurement |  | Carrying |  |  | Fair |  |  | Carrying |  |  | Fair |
|  | Hierarchy |  | Amount |  |  | Value |  |  | Amount |  |  | Value |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | Level 1 |  | $ | 288,426 |  |  | $ | 288,426 |  |  | $ | 93,878 |  |  | $ | 93,878 |
Securities available for sale |  | Level 2 |  |  | 1,097,950 |  |  |  | 1,097,950 |  |  |  | 628,059 |  |  |  | 628,059 |
Securities held to maturity, net |  | Level 2 |  |  | 218,135 |  |  |  | 224,164 |  |  |  | 271,973 |  |  |  | 282,035 |
Loans held for sale |  | Level 2 |  |  | 5,916 |  |  |  | 5,916 |  |  |  | 4,305 |  |  |  | 4,305 |
Loans |  | Level 2 |  |  | 3,553,901 |  |  |  | 3,597,936 |  |  |  | 3,513,284 |  |  |  | 3,549,770 |
Loans (1) |  | Level 3 |  |  | 54,554 |  |  |  | 54,554 |  |  |  | 29,434 |  |  |  | 29,434 |
Long-lived assets held for sale |  | Level 2 |  |  | 4,341 |  |  |  | 4,341 |  |  |  | — |  |  |  | — |
Accrued interest receivable |  | Level 1 |  |  | 15,742 |  |  |  | 15,742 |  |  |  | 15,635 |  |  |  | 15,635 |
Derivative instruments – cash flow hedges |  | Level 2 |  |  | 1,112 |  |  |  | 1,112 |  |  |  | — |  |  |  | — |
Derivative instruments – interest rate products |  | Level 2 |  |  | 14,653 |  |  |  | 14,653 |  |  |  | 19,626 |  |  |  | 19,626 |
Derivative instruments – credit contracts |  | Level 2 |  |  | - |  |  |  | - |  |  |  | 23 |  |  |  | 23 |
Derivative instruments – mortgage banking |  | Level 2 |  |  | 374 |  |  |  | 374 |  |  |  | 471 |  |  |  | 471 |
FHLB and FRB stock |  | Level 2 |  |  | 9,368 |  |  |  | 9,368 |  |  |  | 8,619 |  |  |  | 8,619 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-maturity deposits |  | Level 1 |  |  | 4,054,683 |  |  |  | 4,054,683 |  |  |  | 3,392,774 |  |  |  | 3,392,774 |
Time deposits |  | Level 2 |  |  | 920,280 |  |  |  | 920,221 |  |  |  | 885,593 |  |  |  | 887,113 |
Short-term borrowings |  | Level 1 |  |  | — |  |  |  | — |  |  |  | 5,300 |  |  |  | 5,300 |
Long-term borrowings |  | Level 2 |  |  | 73,834 |  |  |  | 79,275 |  |  |  | 73,623 |  |  |  | 83,953 |
Accrued interest payable |  | Level 1 |  |  | 3,226 |  |  |  | 3,226 |  |  |  | 4,381 |  |  |  | 4,381 |
Derivative instruments – cash flow hedges |  | Level 2 |  |  | — |  |  |  | — |  |  |  | 311 |  |  |  | 311 |
Derivative instruments – interest rate products |  | Level 2 |  |  | 14,658 |  |  |  | 14,658 |  |  |  | 19,837 |  |  |  | 19,837 |
Derivative instruments – credit contracts |  | Level 2 |  |  | 1 |  |  |  | 1 |  |  |  | 86 |  |  |  | 86 |
Derivative instruments – mortgage banking |  | Level 2 |  |  | 5 |  |  |  | 5 |  |  |  | 1 |  |  |  | 1 |
(1) Comprised of collateral dependent loans.

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- Definition Tabular disclosure of assets measured at fair value measured on a recurring or nonrecurring basis. Includes, but is 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. + 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 (a) -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 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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