FAIR VALUE DISCLOSURES (Tables)

3 Months Ended

Mar. 31, 2024

FAIR VALUE DISCLOSURES [Abstract]

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

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

	Level 1		Level 2			Level 3		Total
March 31, 2024
Assets (liabilities) measured at fair value on a recurring basis:
Securities available for sale:
State and municipal	$	—	$	177,648		$	—	$	177,648
Residential mortgage-backed securities		—		285,165			—		285,165
Commercial mortgage-backed securities		—		40,854			—		40,854
Commercial collateralized mortgage obligations		—		69,072			—		69,072
Asset-backed and other amortizing securities		—		16,329			—		16,329
Other securities		—		10,801			—		10,801
Loans held for sale (mandatory)		—		9,686			—		9,686
Mortgage servicing rights		—		—			26,843		26,843
Asset derivatives		—		18,767			—		18,767
Liability derivatives		—		(112	)		—		(112	)
Assets measured at fair value on a non-recurring basis:
Loans held for investment		—		—			228		228
December 31, 2023
Assets (liabilities) measured at fair value on a recurring basis:
Securities available for sale:
State and municipal	$	—	$	180,575		$	—	$	180,575
Residential mortgage-backed securities		—		300,704			—		300,704
Commercial mortgage-backed securities		—		41,748			—		41,748
Commercial collateralized mortgage obligations		—		71,930			—		71,930
Asset-backed and other amortizing securities		—		17,040			—		17,040
Other securities		—		10,765			—		10,765
Loans held for sale (mandatory)		—		6,615			—		6,615
Mortgage servicing rights		—		—			26,569		26,569
Asset derivatives		—		17,230			—		17,230
Liability derivatives		—		(432	)		—		(432	)
Assets measured at fair value on a non-recurring basis:
Loans held for investment		—		—			1,482		1,482

Quantitative Information about Recurring and 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
March 31, 2024
Non-recurring:
Loans held for investment	$	228	Third party appraisals or inspections	Collateral discounts and selling costs		20%-25	%
Recurring:
Mortgage servicing rights		26,843	Discounted cash flows	Constant prepayment rate		7.38	%
				Discount rate		10.16	%
December 31, 2023
Non-recurring:
Loans held for investment	$	1,482	Third party appraisals or inspections	Collateral discounts and selling costs		20%-100	%
Recurring:
Mortgage servicing rights		26,569	Discounted cash flows	Constant prepayment rate		7.46	%
				Discount rate		10.66	%

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 values section are as follows (dollars in thousands):

	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
March 31, 2024
Financial assets:
Cash and cash equivalents	$	371,939	$	371,939	$	—	$	—	$	371,939
Loans held for investment, net		2,969,625		—		—		2,857,552		2,857,552
Loans held for sale (best efforts)		6,065		—		6,172		—		6,172
Accrued interest receivable		16,605		—		16,605		—		16,605
Financial liabilities:
Deposits	$	3,638,571	$	—	$	3,638,349	$	—	$	3,638,349
Accrued interest payable		4,229		—		4,229		—		4,229
Junior subordinated deferrable interest debentures		46,393		—		33,530		—		33,530
Subordinated debt		63,821		—		57,050		—		57,050

	Carrying Amount		Level 1		Level 2		Level 3		Total Fair Value
December 31, 2023
Financial assets:
Cash and cash equivalents	$	330,158	$	330,158	$	—	$	—	$	330,158
Loans held for investment, net		2,971,797		—		—		2,848,536		2,848,536
Loans held for sale (best efforts)		7,884		—		7,977		—		7,977
Accrued interest receivable		20,881		—		20,881		—		20,881
Financial liabilities:
Deposits	$	3,626,153	$	—	$	3,625,321	$	—	$	3,625,321
Accrued interest payable		5,057		—		5,057		—		5,057
Junior subordinated deferrable interest debentures		46,393		—		33,098		—		33,098
Subordinated debt		63,775		—		57,497		—		57,497