FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2020

Fair value of assets and liabilities

Schedule of Recurring Level III Assets

The following table represents recurring Level III assets:

(Dollars in thousands)	Interest Rate Lock Commitments		Municipal Securities		Equity Securities		Total
Balance at December 31, 2019	$	1,660	$	37,259	$	—	$	38,919
Realized and unrealized gains (losses) included in earnings	(1,660)		3		—		(1,657)
Purchase of securities	—		22,228		—		22,228
Maturities/calls	—		(15,778)		—		(15,778)
Unrealized gain included in other comprehensive income (loss)	—		7,119		—		7,119
Unrealized loss included in other comprehensive income (loss)	—		(7,152)		—		(7,152)
Balance at December 31, 2020	$	—	$	43,679	$	—	$	43,679
Balance at December 31, 2018	$	1,750	$	33,122	$	300	$	35,172
Realized and unrealized losses included in earnings	(90)		—		—		(90)
Purchase of securities	—		842		—		842
Reclassification to nonrecurring assets	—		—		(300)		(300)
Maturities/calls	—		(15,716)		—		(15,716)
Unrealized gain included in other comprehensive income (loss)	—		34,702		—		34,702
Unrealized loss included in other comprehensive income (loss)	—		(15,691)		—		(15,691)
Balance at December 31, 2019	$	1,660	$	37,259	$	—	$	38,919

Quantitative Information About the Level III Significant Unobservable Inputs for Assets and Liabilities Measured at Fair Value on Nonrecurring Basis

The following tables presents quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value at December 31, 2020 and 2019.

	Quantitative Information about Level III Fair Value Measurements
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range
December 31, 2020
Nonrecurring measurements:
Impaired loans	$	14,098	Appraisal of collateral 1	Appraisal adjustments 2	20% - 62%
				Liquidation expense 2	5% - 10%
Other real estate owned	$	5,730	Appraisal of collateral 1	Appraisal adjustments 2	20% - 30%
				Liquidation expense 2	5% - 10%
Other debt securities	$	7,500	Net asset value	Cost minus impairment	—%
Equity securities	$	27,113	Net asset value	Cost minus impairment	—%
Recurring measurements:
Municipal securities (Local TIF bonds)	$	43,679	Appraisal of bond 3	Bond appraisal adjustment 4	5% - 15%

	Quantitative Information about Level III Fair Value Measurements
(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range
December 31, 2019
Nonrecurring measurements:
Impaired loans	$	8,909	Appraisal of collateral 1	Appraisal adjustments 2	20% - 62%
				Liquidation expense 2	5% - 10%
Other real estate owned	$	1,397	Appraisal of collateral 1	Appraisal adjustments 2	20% - 30%
				Liquidation expense 2	5% - 10%
Equity securities	$	18,514	Net asset value	Cost minus impairment	—%
Recurring measurements:
Municipal securities (Local TIF bonds)	$	37,259	Appraisal of bond 3	Bond appraisal adjustment 4	5% - 15%
Interest rate lock commitments	$	1,660	Pricing model	Pull through rates	77% - 82%

1 Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level III inputs which are not identifiable.

2 Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted-average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

3 Fair value determined through independent analysis of liquidity, rating, yield and duration.

4 Appraisals may be adjusted for qualitative factors, such as local economic conditions.

Recurring

Fair value of assets and liabilities

Financial Assets and Liabilities Measured at Fair Value

The following tables present the assets reported on the consolidated statements of financial condition at their fair value on a recurring basis as of December 31, 2020 and 2019 by level within the fair value hierarchy.

	December 31, 2020
(Dollars in thousands)	Level I		Level II		Level III		Total
Assets:
United States government agency securities	$	—	$	56,992	$	—	$	56,992
United States sponsored mortgage-backed securities	—		95,769		—		95,769
Municipal securities	—		188,208		43,679		231,887
Other securities	—		18,476		—		18,476
Equity securities	472		—		—		472
Loans held-for-sale	—		1,062		—		1,062
Interest rate swap	—		13,822		—		13,822
Fair value hedge	—		2,215		—		2,215
Liabilities:
Interest rate swap	—		13,822		—		13,822
Fair value hedge	—		2,141		—		2,141

	December 31, 2019
(Dollars in thousands)	Level I		Level II		Level III		Total
Assets:
United States government agency securities	$	—	$	51,996	$	—	$	51,996
United States sponsored mortgage-backed securities	—		58,312		—		58,312
Municipal securities	—		75,833		37,259		113,092
Other securities	—		12,421		—		12,421
Loans held-for-sale	—		109,788		—		109,788
Interest rate lock commitment	—		—		1,660		1,660
Interest rate swap	—		5,722		—		5,722
Fair value hedge	—		1,770		—		1,770
Liabilities:
Interest rate swap	—		5,722		—		5,722
Fair value hedge	—		1,418		—		1,418
Mortgage-backed security hedges	—		186		—		186

Non-recurring

Fair value of assets and liabilities

Financial Assets and Liabilities Measured at Fair Value

Assets measured at fair value on a nonrecurring basis as of December 31, 2020 and 2019 are included in the table below:

	December 31, 2020
(Dollars in thousands)	Level I		Level II		Level III		Total
Impaired loans	$	—	$	—	$	14,098	$	14,098
Other real estate owned	—		—		5,730		5,730
Other debt securities	—		—		7,500		7,500
Equity securities	—		—		27,113		27,113

	December 31, 2019
(Dollars in thousands)	Level I		Level II		Level III		Total
Impaired loans	$	—	$	—	$	8,909	$	8,909
Other real estate owned	—		—		1,397		1,397
Equity securities	—		—		18,514		18,514