XML 69 R52.htm IDEA: XBRL DOCUMENT v3.24.0.1
Fair Value Measurement (Tables)
12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables summarize the Company’s financial assets and liabilities that were measured at fair value on a recurring basis at December 31, 2023 and 2022:

 

 

 

 

 

Fair Value Measurements Using

 

2023

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

$

115,434

 

 

$

115,434

 

 

$

 

 

$

 

U.S. Government agencies

 

 

130,695

 

 

 

 

 

 

130,695

 

 

 

 

Obligations of states, municipalities, and political
   subdivisions

 

 

82,275

 

 

 

 

 

 

82,275

 

 

 

 

Mortgage-backed securities; residential

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

695,803

 

 

 

 

 

 

695,803

 

 

 

 

Non-Agency

 

 

100,260

 

 

 

 

 

 

100,260

 

 

 

 

Mortgage-backed securities; commercial

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

147,204

 

 

 

 

 

 

147,204

 

 

 

 

Corporate securities

 

 

36,171

 

 

 

 

 

 

36,171

 

 

 

 

Asset-backed securities

 

 

34,638

 

 

 

 

 

 

34,638

 

 

 

 

Equity and other securities, at fair value

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

 

2,554

 

 

 

2,554

 

 

 

 

 

 

 

Equity securities

 

 

6,189

 

 

 

 

 

 

5,908

 

 

 

281

 

Servicing assets

 

 

19,844

 

 

 

 

 

 

 

 

 

19,844

 

Derivative assets

 

 

56,923

 

 

 

 

 

 

56,923

 

 

 

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

19,345

 

 

 

 

 

 

19,345

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using

 

2022

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

$

40,723

 

 

$

40,723

 

 

$

 

 

$

 

U.S. Government agencies

 

 

130,364

 

 

 

 

 

 

130,364

 

 

 

 

Obligations of states, municipalities, and political
   subdivisions

 

 

61,876

 

 

 

 

 

 

61,876

 

 

 

 

Mortgage-backed securities; residential

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

595,796

 

 

 

 

 

 

595,796

 

 

 

 

Non-Agency

 

 

106,249

 

 

 

 

 

 

106,249

 

 

 

 

Mortgage-backed securities; commercial

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

157,030

 

 

 

 

 

 

157,030

 

 

 

 

Corporate securities

 

 

41,436

 

 

 

 

 

 

41,436

 

 

 

 

Asset-backed securities

 

 

40,957

 

 

 

 

 

 

40,957

 

 

 

 

Equity and other securities, at fair value

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

 

2,518

 

 

 

2,518

 

 

 

 

 

 

 

Equity securities

 

 

5,471

 

 

 

 

 

 

4,805

 

 

 

666

 

Servicing assets

 

 

19,172

 

 

 

 

 

 

 

 

 

19,172

 

Derivative assets

 

 

65,342

 

 

 

 

 

 

65,342

 

 

 

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

17,817

 

 

 

 

 

 

17,817

 

 

 

 

 

Summary of Financial Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The following table presents additional information about financial assets measured at fair value on recurring basis for which the Company used significant unobservable inputs (Level 3):

 

Years Ended December 31,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

Investment Securities

 

 

Servicing Assets

 

Balance, beginning of period

$

666

 

 

$

686

 

 

$

19,172

 

 

$

23,744

 

Additions, net

 

 

 

 

 

 

 

5,761

 

 

 

7,171

 

Maturities

 

(400

)

 

 

 

 

 

 

 

 

 

Accretion

 

82

 

 

 

 

 

 

 

 

 

 

Change in fair value

 

(67

)

 

 

(20

)

 

 

(5,089

)

 

 

(11,743

)

Balance, end of period

$

281

 

 

$

666

 

 

$

19,844

 

 

$

19,172

 

Summary of Unobservable Inputs Used in the Fair Value Measurements on Recurring Basis

The following table presents additional information about the unobservable inputs used in the fair value measurements on recurring basis that were categorized within Level 3 of the fair value hierarchy as of December 31, 2023:

Financial Instruments

 

Valuation Technique

 

Unobservable Inputs

 

Range of
Inputs

 

Weighted
Average
Input

 

 

Impact to
Valuation from an
Increased or
Higher Input Value

Single issuer trust preferred

 

Discounted cash flow

 

Discount rate

 

7.9%

 

 

7.9

%

 

Decrease

Servicing assets

 

Discounted cash flow

 

Prepayment speeds

 

(1.0)%—31.9%

 

 

14.1

%

 

Decrease

 

 

 

 

Discount rate

 

(15.9)%—55.6%

 

 

14.3

%

 

Decrease

 

 

 

Expected weighted
average loan life

 

0.09.2 years

 

3.7 years

 

 

Increase

Summary of Assets Measured at Fair Value on Non-Recurring Basis, Excluding Acquired Impaired Loans The following tables summarize the Company’s assets that were measured at fair value on a non-recurring basis, as of December 31, 2023 and 2022:

 

 

 

 

 

Fair Value Measurements Using

 

2023

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Non-recurring

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated loans

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

51,978

 

 

$

 

 

$

 

 

$

51,978

 

Residential real estate

 

 

3,593

 

 

 

 

 

 

 

 

 

3,593

 

Construction, land development, and other land

 

 

813

 

 

 

 

 

 

 

 

 

813

 

Commercial and industrial

 

 

29,869

 

 

 

 

 

 

 

 

 

29,869

 

Assets held for sale

 

 

4,484

 

 

 

 

 

 

 

 

 

4,484

 

Other real estate owned

 

 

1,200

 

 

 

 

 

 

 

 

 

1,200

 

 

 

 

 

 

 

Fair Value Measurements Using

 

2022

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Non-recurring

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated loans

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

31,858

 

 

$

 

 

$

 

 

$

31,858

 

Residential real estate

 

 

879

 

 

 

 

 

 

 

 

 

879

 

Construction, land development, and other land

 

 

5,276

 

 

 

 

 

 

 

 

 

5,276

 

Commercial and industrial

 

 

38,874

 

 

 

 

 

 

 

 

 

38,874

 

Assets held for sale

 

 

8,673

 

 

 

 

 

 

 

 

 

8,673

 

Other real estate owned

 

 

4,717

 

 

 

 

 

 

 

 

 

4,717

 

Summary of Estimated Fair Values of Financial Instruments

The estimated fair values of financial instruments not carried at fair value and levels within the fair value hierarchy at December 31, 2023 and 2022 are as follows:

 

Fair Value

 

 

2023

 

 

2022

 

 

Hierarchy
Level

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

1

 

 

$

60,431

 

 

$

60,431

 

 

$

62,274

 

 

$

62,274

 

Interest bearing deposits with other banks

 

2

 

 

 

165,705

 

 

 

165,705

 

 

 

117,079

 

 

 

117,079

 

Securities held-to-maturity

 

2

 

 

 

1,157

 

 

 

1,149

 

 

 

2,705

 

 

 

2,672

 

Restricted stock

 

2

 

 

 

16,304

 

 

 

16,304

 

 

 

28,202

 

 

 

28,202

 

Loans held for sale

 

3

 

 

 

18,005

 

 

 

19,136

 

 

 

47,823

 

 

 

40,657

 

Loans and lease receivables, net (less individually
  evaluated loans of fair value $
86,253 
  and $
76,887, as of December 31,
  2023 and 2022, respectively)

 

3

 

 

 

6,496,367

 

 

 

6,326,413

 

 

 

5,262,447

 

 

 

5,259,991

 

Accrued interest receivable

 

3

 

 

 

43,922

 

 

 

43,922

 

 

 

29,815

 

 

 

29,815

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

2

 

 

 

1,905,876

 

 

 

1,905,876

 

 

 

2,138,645

 

 

 

2,138,645

 

Interest-bearing deposits

 

2

 

 

 

5,271,123

 

 

 

5,268,926

 

 

 

3,556,476

 

 

 

3,554,318

 

Accrued interest payable

 

2

 

 

 

22,233

 

 

 

22,233

 

 

 

4,494

 

 

 

4,494

 

Federal Home Loan Bank advances

 

2

 

 

 

325,000

 

 

 

325,000

 

 

 

625,000

 

 

 

625,000

 

Securities sold under repurchase agreement

 

2

 

 

 

40,607

 

 

 

40,607

 

 

 

15,399

 

 

 

15,399

 

Term loan

 

2

 

 

 

18,333

 

 

 

18,333

 

 

 

 

 

 

 

Line of credit

 

2

 

 

 

11,250

 

 

 

11,250

 

 

 

 

 

 

 

Subordinated notes

 

2

 

 

 

73,866

 

 

 

76,063

 

 

 

73,691

 

 

 

70,925

 

Junior subordinated debentures

 

3

 

 

 

70,452

 

 

 

72,701

 

 

 

37,338

 

 

 

40,131