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Fair Value (Tables)
9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Financial instruments that were measured at fair value on a recurring and nonrecurring basis
The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at September 30, 2020.
($ in thousands)
Description of Financial InstrumentsFair Value at September 30, 2020Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable Inputs
(Level 3)
Recurring
Securities available for sale:
Government-sponsored enterprise securities$75,653 — 75,653 — 
Mortgage-backed securities1,047,922 — 1,047,922 — 
Corporate bonds45,131 — 45,131 — 
Total available for sale securities$1,168,706 — 1,168,706 — 
Presold mortgages in process of settlement$34,028 34,028 — — 
Nonrecurring
Impaired loans$16,547 — — 16,547 
Foreclosed real estate1,253 — — 1,253 
The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2019.
($ in thousands)
Description of Financial InstrumentsFair Value at December 31, 2019Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Recurring
Securities available for sale:
Government-sponsored enterprise securities$20,009 — 20,009 — 
Mortgage-backed securities767,285 — 767,285 — 
Corporate bonds34,651 — 34,651 — 
Total available for sale securities$821,945 — 821,945 — 
Presold mortgages in process of settlement$19,712 19,712 — — 
Nonrecurring
Impaired loans$16,215 — — 16,215 
  Foreclosed real estate1,830 — — 1,830 
Schedule of significant unobservable inputs
For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of September 30, 2020, the significant unobservable inputs used in the fair value measurements were as follows:
($ in thousands)
DescriptionFair Value at September 30, 2020Valuation
Technique
Significant Unobservable
Inputs
Range (Weighted Average)
Impaired loans - valued at collateral value$10,746 Appraised valueDiscounts applied for estimated costs to sell10%
Impaired loans - valued at PV of expected cash flows5,801 PV of expected cash flowsDiscount rates used in the calculation of PV of expected cash flows4-11% (6.2%)
Foreclosed real estate1,253 Appraised valueDiscounts for estimated costs to sell10%
For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows:
($ in thousands)
DescriptionFair Value atDecember 31, 2019Valuation
Technique
Significant Unobservable
Inputs
Range (Weighted Average)
Impaired loans - valued at collateral value$10,718 Appraised valueDiscounts applied for estimated costs to sell10%
Impaired loans - valued at PV of expected cash flows5,497 PV of expected cash flowsDiscount rates used in the calculation of PV of expected cash flows4-11% (6.50%)
Foreclosed real estate1,830 Appraised valueDiscounts for estimated costs to sell10%
Schedule of the carrying amounts and estimated fair values of financial instruments
The carrying amounts and estimated fair values of financial instruments not carried at fair value at September 30, 2020 and December 31, 2019 are as follows:
  September 30, 2020December 31, 2019
($ in thousands)Level in Fair
Value
Hierarchy
Carrying
Amount
Estimated
Fair Value
Carrying
Amount
Estimated
Fair Value
Cash and due from banks, noninterest-bearingLevel 1$92,465 92,465 64,519 64,519 
Due from banks, interest-bearingLevel 1304,731 304,731 166,783 166,783 
Securities held to maturityLevel 2110,200 112,114 67,932 68,333 
SBA loans held for saleLevel 215,012 16,645 — — 
Total loans, net of allowanceLevel 34,764,510 4,750,959 4,432,068 4,407,610 
Accrued interest receivableLevel 119,646 19,646 16,648 16,648 
Bank-owned life insuranceLevel 1106,345 106,345 104,441 104,441 
SBA Servicing AssetLevel 35,644 6,714 5,383 5,649 
DepositsLevel 26,060,226 6,062,358 4,931,355 4,930,751 
BorrowingsLevel 261,816 53,099 300,671 295,399 
Accrued interest payableLevel 21,305 1,305 2,154 2,154