Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table sets forth our assets and liabilities measured at fair value on a recurring basis:


	Level 1		Level 2		Level 3
	Quoted prices in active markets for identical assets		Significant other observable inputs		Significant unobservable inputs		Total Estimated Fair Value
As of December 31, 2021
Available-for-sale securities	$	35,185	$	537,316	$	—	$	572,501
Loans held-for-sale	—		103,939		—		103,939
Mortgage servicing rights	—		—		47,392		47,392
Derivative financial instruments - assets	—		10,815		—		10,815
Derivative financial instruments - liabilities	—		(14,525)		—		(14,525)
Total	$	35,185	$	637,545	$	47,392	$	720,122

As of December 31, 2020
Available-for-sale securities	$	—	$	468,586	$	—	$	468,586
Loans held-for-sale	—		193,963		—		193,963
Mortgage servicing rights	—		—		29,144		29,144
Derivative financial instruments - assets	—		18,332		—		18,332
Derivative financial instruments - liabilities	—		(30,792)		—		(30,792)
Total	$	—	$	650,089	$	29,144	$	679,233

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

The following table presents a reconciliation for our Level 3 assets measured at fair value on a recurring basis as of and for the years ended December 31,:


	2021		2020		2019

Balance, beginning of year	$	29,144	$	29,003	$	26,188
Total losses included in earnings	(5,606)		(22,280)		(11,930)
Purchases, issuances, sales and settlements:

Issuances	23,854		22,421		14,745


Balance, end of year	$	47,392	$	29,144	$	29,003

Schedule of Fair Value Measurements, Nonrecurring

The following table sets forth our assets and liabilities that were measured at fair value on a non-recurring basis as of December 31,:


	Level 3
	2021		2020
Impaired loans:
Commercial	$	961	$	3,469
Commercial real estate	63		83
Residential real estate	632		601

Total impaired loans	$	1,656	$	4,153

Other real estate owned and foreclosed assets, net:

Commercial real estate	$	5,067	$	3,354
Residential real estate	420		—

Total other real estate owned and foreclosed assets, net:	$	5,487	$	3,354

Schedule of Fair Value, by Balance Sheet Grouping

The carrying amounts and estimated fair values of financial instruments not carried at fair value are as follows as of December 31,:


			Estimated Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3
2021
Assets:
Cash and cash equivalents	$	668,462	$	668,462	$	668,462	$	—	$	—
Securities held-to-maturity	18,007		18,599		—		18,599		—
Loans (excluding impaired loans)	4,003,712		3,949,719		—		—		3,949,719
Restricted equity securities	16,239		16,239		—		16,239		—
Accrued interest receivable	14,761		14,761		—		1,131		13,630

Liabilities:
Deposits (excluding demand deposits)	$	3,101,123	$	3,106,464	$	—	$	3,106,464	$	—
Securities sold under agreements to repurchase	92,093		92,093		—		92,093		—
FHLB advances	40,000		41,514		—		41,514		—

Convertible notes payable, net	19,442		21,564		—		21,564		—
Subordinated debt, net	50,016		52,264		—		52,264		—
Accrued interest payable	2,369		2,369		—		2,369		—

2020
Assets:
Cash and cash equivalents	$	201,978	$	201,978	$	201,978	$	—	$	—
Securities held-to-maturity	32,188		33,328		—		33,328		—
Loans (excluding impaired loans)	3,820,483		3,780,649		—		—		3,780,649
Restricted equity securities	23,175		23,175		—		23,175		—
Accrued interest receivable	15,416		15,416		—		986		14,430

Liabilities:
Deposits (excluding demand deposits)	$	2,934,221	$	2,947,287	$	—	$	2,947,287	$	—
Securities sold under agreements to repurchase	115,372		115,372		—		115,372		—
FHLB advances	70,411		72,770		—		72,770		—

Convertible notes payable, net	18,696		20,804		—		20,804		—
Subordinated debt, net	49,666		49,750		—		49,750		—
Accrued interest payable	2,592		2,592		—		2,592		—