XML 17 R41.htm IDEA: XBRL DOCUMENT v3.20.1
Fair Value Measurement (Tables)
3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Summary of Company's 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 March 31, 2020 and December 31, 2019:

 

 

 

 

 

 

 

Fair Value Measurements Using

 

March 31, 2020

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

$

38,301

 

 

$

38,301

 

 

$

 

 

$

 

U.S. Government agencies

 

 

133,711

 

 

 

 

 

 

133,711

 

 

 

 

Obligations of states, municipalities, and political

   subdivisions

 

 

101,292

 

 

 

 

 

 

101,292

 

 

 

 

Mortgage-backed securities; residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

613,221

 

 

 

 

 

 

613,221

 

 

 

 

Non-Agency

 

 

87,109

 

 

 

 

 

 

87,109

 

 

 

 

Mortgage-backed securities; commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

198,460

 

 

 

 

 

 

198,460

 

 

 

 

Non-Agency

 

 

30,543

 

 

 

 

 

 

30,543

 

 

 

 

Corporate securities

 

 

51,089

 

 

 

 

 

 

51,089

 

 

 

 

Asset-backed securities

 

 

45,757

 

 

 

 

 

 

45,757

 

 

 

 

Equity and other securities, at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

 

2,979

 

 

 

2,979

 

 

 

 

 

 

 

Equity securities

 

 

4,434

 

 

 

 

 

 

3,754

 

 

 

680

 

Servicing assets

 

 

17,800

 

 

 

 

 

 

 

 

 

17,800

 

Derivative assets

 

 

19,066

 

 

 

 

 

 

19,066

 

 

 

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

20,359

 

 

 

 

 

 

20,359

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using

 

December 31, 2019

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available-for-sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Notes

 

$

41,830

 

 

$

41,830

 

 

$

 

 

$

 

U.S. Government agencies

 

 

164,950

 

 

 

 

 

 

164,950

 

 

 

 

Obligations of states, municipalities, and political

   subdivisions

 

 

94,832

 

 

 

 

 

 

94,832

 

 

 

 

Mortgage-backed securities; residential

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

490,236

 

 

 

 

 

 

490,236

 

 

 

 

Non-Agency

 

 

109,822

 

 

 

 

 

 

109,822

 

 

 

 

Mortgage-backed securities; commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

159,701

 

 

 

 

 

 

159,701

 

 

 

 

Non-Agency

 

 

31,274

 

 

 

 

 

 

31,274

 

 

 

 

Corporate securities

 

 

49,330

 

 

 

 

 

 

49,330

 

 

 

 

Asset-backed securities

 

 

44,317

 

 

 

 

 

 

44,317

 

 

 

 

Equity and other securities, at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mutual funds

 

 

2,952

 

 

 

2,952

 

 

 

 

 

 

 

Equity securities

 

 

5,079

 

 

 

 

 

 

4,379

 

 

 

700

 

Servicing assets

 

 

19,471

 

 

 

 

 

 

 

 

 

19,471

 

Derivative assets

 

 

7,960

 

 

 

 

 

 

7,960

 

 

 

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

8,519

 

 

 

 

 

 

8,519

 

 

 

 

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):

 

 

Three Months Ended March 31,

 

 

2020

 

2019

 

 

2020

 

2019

 

 

Investment Securities

 

 

Servicing Assets

 

Balance, beginning of period

$

700

 

$

886

 

 

$

19,471

 

$

19,693

 

Additions, net

 

 

 

 

 

 

1,393

 

 

1,102

 

Amortization

 

 

 

1

 

 

 

 

 

 

Change in fair value

 

(20

)

 

3

 

 

 

(3,064

)

 

(1,261

)

Balance, end of period

$

680

 

$

890

 

 

$

17,800

 

$

19,534

 

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 March 31, 2020:

 

Financial Instruments

 

Valuation Technique

 

Unobservable Inputs

 

Range of

Inputs

 

Weighted

Average

Range

 

 

Impact to

Valuation from an

Increased or

Higher Input Value

Single issuer trust preferred

 

Discounted cash flow

 

Discount rate

 

5.1%—6.4%

 

 

5.6

%

 

Decrease

Servicing assets

 

Discounted cash flow

 

Prepayment speeds

 

3.0%—23.9%

 

 

15.1

%

 

Decrease

 

 

 

 

Discount rate

 

4.7%—21.6%

 

 

13.8

%

 

Decrease

 

 

 

 

Expected weighted

average loan life

 

0.7—9.0 years

 

3.8 years

 

 

Increase

Summary of Company's Assets Measured at Fair Value on a Non-Recurring Basis The following tables summarize the Company’s assets that were measured at fair value on a non-recurring basis, excluding acquired impaired loans, as of March 31, 2020 and December 31, 2019:

 

 

 

 

 

 

 

Fair Value Measurements Using

 

March 31, 2020

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Non-recurring

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(excluding acquired impaired loans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

29,340

 

 

$

 

 

$

 

 

$

29,340

 

Residential real estate

 

 

1,868

 

 

 

 

 

 

 

 

 

1,868

 

Construction, land development, and other land

 

 

2,577

 

 

 

 

 

 

 

 

 

2,577

 

Commercial and industrial

 

 

34,217

 

 

 

 

 

 

 

 

 

34,217

 

Assets held for sale

 

 

14,647

 

 

 

 

 

 

 

 

 

14,647

 

Other real estate owned

 

 

9,273

 

 

 

 

 

 

 

 

 

9,273

 

 

 

 

 

 

 

 

Fair Value Measurements Using

 

December 31, 2019

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Non-recurring

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(excluding acquired impaired loans)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

23,782

 

 

$

 

 

$

 

 

$

23,782

 

Residential real estate

 

 

2,274

 

 

 

 

 

 

 

 

 

2,274

 

Construction, land development, and other land

 

 

2,644

 

 

 

 

 

 

 

 

 

2,644

 

Commercial and industrial

 

 

29,351

 

 

 

 

 

 

 

 

 

29,351

 

Assets held for sale

 

 

15,362

 

 

 

 

 

 

 

 

 

15,362

 

Other real estate owned

 

 

9,896

 

 

 

 

 

 

 

 

 

9,896

 

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 are as follows:

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

 

Fair Value

 

 

2020

 

 

2019

 

 

 

Hierarchy

Level

 

 

Carrying

Amount

 

 

Estimated

Fair Value

 

 

Carrying

Amount

 

 

Estimated

Fair Value

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

1

 

 

$

45,233

 

 

$

45,233

 

 

$

48,228

 

 

$

48,228

 

Interest bearing deposits with other banks

 

 

2

 

 

 

74,386

 

 

 

74,386

 

 

 

32,509

 

 

 

32,509

 

Securities held-to-maturity

 

 

2

 

 

 

4,408

 

 

 

4,516

 

 

 

4,412

 

 

 

4,498

 

Other restricted stock

 

 

2

 

 

 

24,197

 

 

 

24,197

 

 

 

22,127

 

 

 

22,127

 

Loans held for sale

 

 

3

 

 

 

13,299

 

 

 

13,580

 

 

 

11,732

 

 

 

12,935

 

Loans and lease receivables, net (less impaired loans

   at fair value

 

 

3

 

 

 

3,750,417

 

 

 

3,653,649

 

 

 

3,695,674

 

 

 

3,661,724

 

Accrued interest receivable

 

 

3

 

 

 

13,064

 

 

 

13,064

 

 

 

13,283

 

 

 

13,283

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

 

2

 

 

 

1,290,896

 

 

 

1,290,896

 

 

 

1,279,641

 

 

 

1,279,641

 

Interest-bearing deposits

 

 

2

 

 

 

2,947,940

 

 

 

2,951,430

 

 

 

2,867,936

 

 

 

2,873,380

 

Accrued interest payable

 

 

2

 

 

 

2,104

 

 

 

2,104

 

 

 

3,677

 

 

 

3,677

 

Federal Reserve Bank discount window borrowing

 

 

2

 

 

 

250,000

 

 

 

250,000

 

 

 

 

 

 

 

Federal Home Loan Bank advances

 

 

2

 

 

 

335,000

 

 

 

335,000

 

 

 

490,000

 

 

 

490,000

 

Securities sold under repurchase agreement

 

 

2

 

 

 

55,647

 

 

 

55,647

 

 

 

49,638

 

 

 

49,638

 

Junior subordinated debentures

 

 

3

 

 

 

37,462

 

 

 

41,469

 

 

 

37,334

 

 

 

42,881