Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value, Assets Measured on Recurring Basis

The following tables present the fair value measurements of assets and liabilities recognized in the accompanying condensed 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 March 31, 2020 and December 31, 2019.



				March 31, 2020 Fair Value Measurements Using
(in thousands)	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	$	70,004		$	—		$	70,004		$	—
Municipal securities	94,819			—			94,819			—
Agency mortgage-backed securities	282,632			—			282,632			—
Private label mortgage-backed securities	115,024						115,024			—
Asset-backed securities	4,713			—			4,713			—
Corporate securities	41,490			—			41,490			—
Total available-for-sale securities	608,682			—			608,682			—
Servicing asset	2,415			—			—			2,415
Interest rate swap liabilities	(78,552		)	—			(78,552		)	—
Loans held-for-sale (mandatory pricing agreements)	52,394			—			52,394			—
Forward contracts	(2,298		)	(2,298		)	—			—
IRLCs	2,064			—			—			2,064



				December 31, 2019 Fair Value Measurements Using
(in thousands)	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 swap liabilities	(37,786		)	—			(37,786		)	—
Loans held-for-sale (mandatory pricing agreements)	56,097			—			56,097			—
Forward contracts	(153		)	(153		)	—			—
IRLCs	910			—			—			910

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables reconcile the beginning and ending balances of recurring fair value measurements recognized in the accompanying condensed consolidated balance sheets using significant unobservable (Level 3) inputs for the three months ended March 31, 2020 and 2019.



	Three Months Ended
(in thousands)	Servicing Asset			Interest Rate Lock Commitments
Balance, January 1, 2020	$	2,481		$	910
Total realized (losses) gains
Additions	113			—
Change in fair value	(179		)	1,154
Balance, March 31, 2020	2,415			2,064

Balance as of January 1, 2019	$	—		$	389
Total realized gains
Change in fair value	—			392
Balance, March 31, 2019	$	—		$	781

Schedule Of Impaired Loans, Including Valuation Allowance, Fair Value, Unobservable Inputs Reconciliation

The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurement falls at March 31, 2020 and December 31, 2019.



			December 31, 2019
(in thousands)			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, Recurring and Nonrecurring, Valuation Techniques

The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.

(dollars in thousands)

Fair Value at
March 31, 2020

Valuation

Technique

Significant Unobservable

Inputs

Range

Weighted-Average Range

IRLCs

2,064

Discounted cash flow

Loan closing rates

36% - 100%

56%

Servicing asset

2,415

Discounted cash flow

Prepayment speeds

0% - 25%

14.4%

Expected weighted-average loan life

3.3 - 5.3 years

4.7 years

(dollars in thousands)

Fair Value at
December 31, 2019

Valuation

Technique

Significant Unobservable

Inputs

Range

Weighted-Average 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%

84%

Servicing asset

2,481

Discounted cash flow

Prepayment speeds

0% - 25%

13.5%

Expected weighted-average loan life

3.2 - 5.7 years

5.0 years

Fair Value, by Balance Sheet Grouping

The following tables present the carrying value and estimated fair value of all financial assets and liabilities at March 31, 2020 and December 31, 2019.



	March 31, 2020 Fair Value Measurements Using
(in thousands)	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	$	351,268	$	351,268	$	351,268	$	—	$	—
Securities held-to-maturity	66,331		69,468		—		69,468		—
Net loans	2,869,236		2,842,894		—		—		2,842,894
Accrued interest receivable	16,960		16,960		16,960		—		—
Federal Home Loan Bank of Indianapolis stock	25,650		25,650		—		25,650		—
Deposits	3,178,506		3,245,748		1,156,978		—		2,088,770
Advances from Federal Home Loan Bank	514,911		546,378		—		546,378		—
Subordinated debt	69,605		61,092		50,890		10,202		—
Accrued interest payable	3,293		3,293		3,293		—		—



	December 31, 2019 Fair Value Measurements Using
(in thousands)	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		—		—