FAIR VALUE DISCLOSURES (Tables)

9 Months Ended

Sep. 30, 2021

FAIR VALUE DISCLOSURES [Abstract]

Assets (Liabilities) Measured at Fair Value on Recurring and Non-Recurring Basis

The following table summarizes fair value measurements:

	Level 1		Level 2			Level 3		Total
September 30, 2021
Assets (liabilities) measured at fair value on a recurring basis:
Securities available for sale:
U.S. government and agencies	$	—	$	—		$	—	$	—
State and municipal		—		275,029			—		275,029
Mortgage-backed securities		—		328,858			—		328,858
Collateralized mortgage obligations		—		106,439			—		106,439
Asset-backed and other amortizing securities		—		29,446			—		29,446
Other securities		—		12,790			—		12,790
Loans held for sale (mandatory)		—		45,849			—		45,849
Mortgage servicing rights		—		—			18,122		18,122
Asset derivatives		—		8,281			—		8,281
Liability derivatives		—		(1,455	)		—		(1,455	)
Assets measured at fair value on a non-recurring basis:
Impaired loans		—		—			7,285		7,285
Other real estate owned		—		—			1,081		1,081
December 31, 2020
Assets (liabilities) measured at fair value on a recurring basis:
Securities available for sale:
U.S. government and agencies	$	—	$	4,753		$	—	$	4,753
State and municipal		—		272,607			—		272,607
Mortgage-backed securities		—		373,362			—		373,362
Collateralized mortgage obligations		—		106,715			—		106,715
Asset-backed and other amortizing securities		—		33,572			—		33,572
Other securities		—		12,078			—		12,078
Loans held for sale (mandatory)		—		80,174			—		80,174
Mortgage servicing rights		—		—			9,049		9,049
Asset derivatives		—		6,734			—		6,734
Liability derivatives		—		(4,357	)		—		(4,357	)
Assets measured at fair value on a non-recurring basis:
Impaired loans		—		—			11,926		11,926
Other real estate owned		—		—			1,353		1,353

Quantitative Information about Non-Recurring Level 3 Fair Value Measurements

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements:

	Fair Value		Valuation Techniques	Unobservable Inputs	Range of Discounts
September 30, 2021
Non-recurring:
Impaired loans	$	7,285	Third party appraisals or inspections	Collateral discounts and selling costs		20%-100	%
Other real estate owned		1,081	Third party appraisals or inspections	Collateral discounts and selling costs		0	%
Recurring:
Mortgage servicing rights		18,122	Discounted cash flows	Conditional prepayment rate		5.41	%
				Discount rate		9.14	%
December 31, 2020
Non-recurring:
Impaired loans	$	11,926	Third party appraisals or inspections	Collateral discounts and selling costs		0%-100	%
Other real estate owned		1,353	Third party appraisals or inspections	Collateral discounts and selling costs		15%-66	%
Recurring:
Mortgage servicing rights		9,049	Discounted cash flows	Conditional prepayment rate		4.48	%
				Discount rate		9.72	%

Estimated Fair Values, and Related Carrying Amounts of Financial Instruments

The estimated fair values, and related carrying amounts, of the Company’s financial instruments are as follows:

	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
September 30, 2021
Financial assets:
Cash and cash equivalents	$	327,600	$	327,600	$	—	$	—	$	327,600
Loans, net		2,386,273		—		—		2,430,158		2,430,158
Accrued interest receivable		11,778		—		11,778		—		11,778
Bank-owned life insurance		71,676		—		71,676		—		71,676
Financial liabilities:
Deposits	$	3,212,245	$	2,879,997	$	334,870	$	—	$	3,214,867
Accrued interest payable		1,460		—		1,460		—		1,460
Notes payable & other borrowings		—		—		—		—		—
Junior subordinated deferrable interest debentures		46,393		—		45,690		—		45,690
Subordinated debt securities		75,728		—		77,892		—		77,892

	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
December 31, 2020
Financial assets:
Cash and cash equivalents	$	300,307	$	300,307	$	—	$	—	$	300,307
Loans, net		2,176,030		—		—		2,179,573		2,179,573
Accrued interest receivable		15,233		—		15,233		—		15,233
Bank-owned life insurance		70,731		—		70,731		—		70,731
Financial liabilities:
Deposits	$	2,974,351	$	2,649,830	$	329,609	$	—	$	2,979,439
Short-term borrowings		26,550		26,550		—		—		26,550
Accrued interest payable		2,113		—		2,113		—		2,113
Notes payable & other borrowings		75,000		—		75,000		—		75,000
Junior subordinated deferrable interest debentures		46,393		—		45,690		—		45,690
Subordinated debt securities		75,589		—		76,889		—		76,889