FAIR VALUE DISCLOSURES (Tables)

6 Months Ended

Jun. 30, 2023

FAIR VALUE DISCLOSURES [Abstract]

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

The following table summarizes fair value measurements at the dates indicated (dollars in thousands):

	Level 1		Level 2			Level 3		Total
June 30, 2023
Assets (liabilities) measured at fair value on a recurring basis:
Securities available for sale:
State and municipal	$	—	$	180,395		$	—	$	180,395
Residential mortgage-backed securities		—		310,187			—		310,187
Commercial mortgage-backed securities		—		41,218			—		41,218
Collateralized mortgage obligations		—		67,595			—		67,595
Asset-backed and other amortizing securities		—		17,785			—		17,785
Other securities		—		10,913			—		10,913
Loans held for sale (mandatory)		—		15,516			—		15,516
Mortgage servicing rights		—		—			26,658		26,658
Asset derivatives		—		20,373			—		20,373
Liability derivatives		—		(34	)		—		(34	)
Assets measured at fair value on a non-recurring basis:
Loans held for investment		—		—			18,098		18,098
December 31, 2022
Assets (liabilities) measured at fair value on a recurring basis:
Securities available for sale:
State and municipal	$	—	$	225,055		$	—	$	225,055
Residential mortgage-backed securities		—		328,845			—		328,845
Commercial mortgage-backed securities		—		41,967			—		41,967
Collateralized mortgage obligations		—		75,638			—		75,638
Asset-backed and other amortizing securities		—		19,094			—		19,094
Other securities		—		11,112			—		11,112
Loans held for sale (mandatory)		—		10,038			—		10,038
Mortgage servicing rights		—		—			27,474		27,474
Asset derivatives		—		21,162			—		21,162
Liability derivatives		—		(128	)		—		(128	)
Assets measured at fair value on a non-recurring basis:
Loans held for investment		—		—			4,821		4,821

Quantitative Information about Recurring ad Non-Recurring Level 3 Fair Value Measurements

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at the dates indicated (dollars in thousands):

	Fair Value		Valuation Techniques	Unobservable Inputs	Range of Discounts
June 30, 2023
Non-recurring:
Loans held for investment	$	18,098	Third party appraisals or inspections	Collateral discounts and selling costs		20%-100	%
Recurring:
Mortgage servicing rights		26,658	Discounted cash flows	Conditional prepayment rate		7.29	%
				Discount rate		9.65	%
December 31, 2022
Non-recurring:
Loans held for investment	$	4,821	Third party appraisals or inspections	Collateral discounts and selling costs		20%-100	%
Recurring:
Mortgage servicing rights		27,474	Discounted cash flows	Conditional prepayment rate		7.47	%
				Discount rate		9.15	%

Estimated Fair Values, and Related Carrying Amounts of Financial Instruments

The estimated fair values, and related carrying amounts, of the Company’s financial instruments that are not previously disclosed in the recurring fair value section are as follows (dollars in thousands):

	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
June 30, 2023
Financial assets:
Cash and cash equivalents	$	295,581	$	295,581	$	—	$	—	$	295,581
Loans held for investment, net		2,935,926		—		—		2,868,428		2,868,428
Loans held for sale (best efforts)		6,642		—		6,770		—		6,770
Accrued interest receivable		15,917		—		15,917		—		15,917
Financial liabilities:
Deposits	$	3,574,522	$	—	$	3,573,886	$	—	$	3,573,886
Accrued interest payable		3,657		—		3,657		—		3,657
Junior subordinated deferrable interest debentures		46,393		—		33,042		—		33,042
Subordinated debt securities		76,054		—		66,910		—		66,910

	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
December 31, 2022
Financial assets:
Cash and cash equivalents	$	234,883	$	234,883	$	—	$	—	$	234,883
Loans held for investment, net		2,708,793		—		—		2,662,609		2,662,609
Loans held for sale (best efforts)		20,365		—		20,745		—		20,745
Accrued interest receivable		16,432		—		16,432		—		16,432
Financial liabilities:
Deposits	$	3,406,430	$	—	$	3,405,222	$	—	$	3,405,222
Accrued interest payable		2,836		—		2,836		—		2,836
Junior subordinated deferrable interest debentures		46,393		—		34,606		—		34,606
Subordinated debt securities		75,961		—		70,835		—		70,835