Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized in the table below.

(Dollars in thousands)	Fair Value Measurements Using						Total Fair Value
March 31, 2022	Level 1		Level 2		Level 3
Assets measured at fair value on a recurring basis
Securities available for sale
Mortgage-backed securities, residential	$	—	$	43,840	$	—	$	43,840
Asset-backed securities	—		6,649		—		6,649
State and municipal	—		15,333		—		15,333
CLO securities	—		121,073		—		121,073
Corporate bonds	—		2,017		—		2,017
SBA pooled securities	—		2,528		—		2,528
	$	—	$	191,440	$	—	$	191,440
Equity securities
Mutual fund	$	5,085	$	—	$	—	$	5,085
Loans held for sale	$	—	$	607	$	—	$	607
Indemnification asset	$	—	$	—	$	4,582	$	4,582

(Dollars in thousands)	Fair Value Measurements Using						Total Fair Value
December 31, 2021	Level 1		Level 2		Level 3
Assets measured at fair value on a recurring basis
Securities available for sale
Mortgage-backed securities, residential	$	—	$	37,449	$	—	$	37,449
Asset-backed securities	—		6,764		—		6,764
State and municipal	—		26,825		—		26,825
CLO Securities	—		106,634		—		106,634
Corporate bonds	—		2,056		—		2,056
SBA pooled securities	—		2,698		—		2,698
	$	—	$	182,426	$	—	$	182,426
Equity securities
Mutual fund	$	5,504	$	—	$	—	$	5,504
Loans held for sale	$	—	$	7,330	$	—	$	7,330
Derivative financial instruments (cash flow hedges)
Interest rate swap	$	—	$	6,164	$	—	$	6,164
Indemnification asset	$	—	$	—	$	4,786	$	4,786

Reconciliation of Opening Balance to Closing Balance of Fair Value of Contingent Consideration

A reconciliation of the opening balance to the closing balance of the fair value of the indemnification asset is as follows:

	Three Months Ended March 31,
(Dollars in thousands)	2022		2021
Beginning balance	$	4,786	$	36,225
Indemnification asset recognized in business combination	—		—
Change in fair value of indemnification asset recognized in earnings	(204)		4,654
Indemnification reduction	—		(35,633)
Ending balance	$	4,582	$	5,246

Fair Value of Assets Measured on Non-recurring Basis

Assets measured at fair value on a non-recurring basis are summarized in the table below. There were no liabilities measured at fair value on a non-recurring basis at March 31, 2022 and December 31, 2021.

(Dollars in thousands)	Fair Value Measurements Using						Total Fair Value
March 31, 2022	Level 1		Level 2		Level 3
Collateral dependent loans
Commercial real estate	$	—	$	—	$	333	$	333
1-4 family residential	—		—		67		67
Commercial	—		—		2,387		2,387
Factored receivables	—		—		39,349		39,349
Consumer	—		—		59		59
Other real estate owned (1)
1-4 family residential	—		—		135		135
Farmland	—		—		116		116
	$	—	$	—	$	42,446	$	42,446

(Dollars in thousands)	Fair Value Measurements Using						Total Fair Value
December 31, 2021	Level 1		Level 2		Level 3
Collateral dependent loans
Commercial real estate	$	—	$	—	$	366	$	366
1-4 family residential	—		—		61		61
Commercial	—		—		2,435		2,435
Factored receivables	—		—		30,224		30,224
Consumer	—		—		60		60
Other real estate owned (1)
Commercial real estate	—		—		7		7
Construction, land development, land	—		—		63		63
	$	—	$	—	$	33,216	$	33,216

(1)Represents the fair value of OREO that was adjusted during the year to date period and subsequent to its initial classification as OREO.

Estimated Fair Value of Company's Financial Assets and Financial Liabilities

The estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis at March 31, 2022 and December 31, 2021 were as follows:

(Dollars in thousands)	Carrying Amount		Fair Value Measurements Using						Total Fair Value
March 31, 2022			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	413,704	$	413,704	$	—	$	—	$	413,704
Securities - held to maturity	4,404		—		—		5,727		5,727
Loans not previously presented, gross	4,921,871		170,053		—		4,709,676		4,879,729
FHLB and other restricted stock	12,196		N/A		N/A		N/A		N/A
Accrued interest receivable	12,802		12,802		—		—		12,802
Financial liabilities:
Deposits	4,709,484		—		4,705,096		—		4,705,096
Customer repurchase agreements	2,868		—		2,868		—		2,868
Federal Home Loan Bank advances	230,000		—		230,000		—		230,000
Subordinated notes	107,169		—		110,264		—		110,264
Junior subordinated debentures	40,737		—		41,941		—		41,941
Accrued interest payable	1,545		1,545		—		—		1,545

(Dollars in thousands)	Carrying Amount		Fair Value Measurements Using						Total Fair Value
December 31, 2021			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	383,178	$	383,178	$	—	$	—	$	383,178
Securities - held to maturity	4,947		—		—		5,447		5,447
Loans not previously presented, gross	4,834,426		142,962		—		4,685,058		4,828,020
FHLB and other restricted stock	10,146		N/A		N/A		N/A		N/A
Accrued interest receivable	15,319		15,319		—		—		15,319
Financial liabilities:
Deposits	4,646,679		—		4,646,552		—		4,646,552
Customer repurchase agreements	2,103		—		2,103		—		2,103
Federal Home Loan Bank advances	180,000		—		180,000		—		180,000
Paycheck Protection Program Liquidity Facility	27,144		—		27,144		—		27,144
Subordinated notes	106,957		—		110,045		—		110,045
Junior subordinated debentures	40,602		—		41,286		—		41,286
Accrued interest payable	1,951		1,951		—		—		1,951