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Fair Value of Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables present the fair value measurements of assets and liabilities recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2019 and 2018.

 
 
 
 
December 31, 2019
 
 
 
 
Fair Value Measurements Using
 
 
Fair
Value
 
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
   U.S. Government-sponsored agencies
 
$
75,872

 
$
—

 
$
75,872

 
$
—

   Municipal securities
 
97,652

 
—

 
97,652

 
—

   Agency mortgage-backed securities
 
261,440

 
—

 
261,440

 
—

Private-label mortgage-backed securities
 
63,613

 
—

 
63,613

 
—

   Asset-backed securities
 
4,955

 
—

 
4,955

 
—

Corporate securities
 
37,320

 
—

 
37,320

 
—

Total available-for-sale securities
 
$
540,852

 
$
—

 
$
540,852

 
$
—

Servicing asset
 
2,481

 
—

 
—

 
2,481

Interest rate swaps liabilities
 
(37,786
)
 
—

 
(37,786
)
 
—

Loans held-for-sale (mandatory pricing agreements)
 
56,097

 
—

 
56,097

 
—

Forward contracts
 
(153
)
 
(153
)
 
—

 
—

IRLCs
 
910

 
—

 
—

 
910

 
 
 
 
 
December 31, 2018
 
 
 
 
Fair Value Measurements Using
 
 
Fair
Value
 
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
   U.S. Government-sponsored agencies
 
$
107,585

 
$
—

 
$
107,585

 
$
—

   Municipal securities
 
92,506

 
—

 
92,506

 
—

   Agency mortgage-backed securities
 
233,734

 
—

 
233,734

 
—

Private-label mortgage-backed securities
 
9,178

 
—

 
9,178

 
—

   Asset-backed securities
 
4,859

 
—

 
4,859

 
—

Corporate securities
 
33,483

 
 
 
33,483

 
 
Total available-for-sale securities
 
$
481,345

 
$
—

 
$
481,345

 
$
—

Interest rate swaps assets
 
1,579

 
—

 
(271
)
 
—

Interest rate swaps liabilities
 
(10,727
)
 
—

 
(10,727
)
 
—

Loans held-for-sale (mandatory pricing agreements)
 
18,328

 
—

 
18,328

 
—

Forward contracts
 
(360
)
 
(360
)
 
—

 
—

IRLCs
 
389

 
—

 
—

 
389

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The following table reconciles the beginning and ending balances of recurring fair value measurements recognized in the accompanying consolidated balance sheets using significant unobservable (Level 3) inputs. 
 
Interest Rate
Lock
Commitments
Balance as of January 1, 2017
$
610

Total realized gains (losses)
 
Included in net income
(59
)
Balance, December 31, 2017
551

Total realized gains
 
Included in net income
(162
)
Balance, December 31, 2018
389

Total realized gains
 
Included in net income
521

Balance, December 31, 2019
$
910

Schedule Of Impaired Loans, Including Valuation Allowance, Fair Value, Unobservable Inputs Reconciliation
Impaired loans with a specific valuation allowance based on the value of the underlying collateral or a discounted cash flow analysis are classified as Level 3 assets.


 
 
 
 
2019
 
 
 
 
Fair Value Measurements Using
 
 
Fair
Value
 
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Impaired loans
 
3,019

 
—

 
—

 
3,019

Fair Value Measurements, Nonrecurring
The following tables present the fair value measurements of assets and liabilities recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2019 and 2018.

 
 
 
 
2018
 
 
 
 
Fair Value Measurements Using
 
 
Fair
Value
 
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Other real estate owned
 
2,065

 
—

 
—

 
2,065

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques
The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill.
 
 
Fair Value at
December 31, 2019
 
Valuation
Technique
 
Unobservable
Inputs
 
Range
Impaired loans
 
$
3,019

 
Fair value of collateral
 
Discount for type of property and current market conditions
 
10%
IRLCs
 
$
910

 
Discounted cash flow
 
Loan closing rates
 
50% - 100%
Servicing asset
 
$
2,481

 
Discounted cash flow
 
Prepayment speeds
 
0% - 25%
 
 
Fair Value at
December 31, 2018
 
Valuation
Technique
 
Unobservable
Inputs
 
Range
Other real estate owned
 
$
2,065

 
Fair value of collateral
 
Discount to reflect current market conditions
 
10%
IRLCs
 
$
389

 
Discounted cash flow
 
Loan closing rates
 
34% - 100%
Fair Value, by Balance Sheet Grouping
The following tables summarize the carrying value and estimated fair value of all financial assets and liabilities at December 31, 2019 and 2018:

 
 
December 31, 2019
 
 
Fair Value Measurements Using
 
 
Carrying
Amount
 
Fair Value
 
Quoted Prices
In Active
Market for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents
 
$
327,361

 
$
327,361

 
$
327,361

 
$
—

 
$
—

Securities held-to-maturity
 
61,878

 
62,560

 
—

 
62,560

 
—

Net loans
 
2,941,707

 
2,876,688

 
—

 
—

 
2,876,688

Accrued interest receivable
 
18,607

 
18,607

 
18,607

 
—

 
—

Federal Home Loan Bank of Indianapolis stock
 
25,650

 
25,650

 
—

 
25,650

 
—

Deposits
 
3,153,963

 
3,232,065

 
1,002,141

 
—

 
2,229,924

Advances from Federal Home Loan Bank
 
514,910

 
520,950

 
—

 
520,950

 
—

Subordinated debt
 
69,528

 
75,206

 
64,996

 
10,210

 
—

Accrued interest payable
 
3,767

 
3,767

 
3,767

 
—

 
—

 
 
December 31, 2018
 
 
Fair Value Measurements Using
 
 
Carrying
Amount
 
Fair Value
 
Quoted Prices
In Active
Market for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents
 
$
188,712

 
$
188,712

 
$
188,712

 
$
—

 
$
—

Securities held-to-maturity
 
22,750

 
22,418

 
—

 
22,418

 
—

Net loans
 
2,698,332

 
2,646,060

 
—

 
—

 
2,646,060

Accrued interest receivable
 
16,822

 
16,822

 
16,822

 
—

 
—

Federal Home Loan Bank of Indianapolis stock
 
23,625

 
23,625

 
—

 
23,625

 
—

Deposits
 
2,671,351

 
2,687,666

 
731,378

 
—

 
1,956,288

Advances from Federal Home Loan Bank
 
525,153

 
520,120

 
—

 
520,120

 
—

Subordinated debt
 
33,875

 
34,490

 
24,250

 
10,240

 
—

Accrued interest payable
 
1,108

 
1,108

 
1,108

 
—

 
—