Fair Value (Tables)

6 Months Ended

Jun. 30, 2021

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 June 30, 2021.

($ in thousands)
Description of Financial Instruments	Fair Value at June 30, 2021		Quoted 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	$	67,872	—	67,872	—
Mortgage-backed securities	2,002,319		—	2,002,319	—
Corporate bonds	44,962		—	44,962	—
Total available for sale securities	$	2,115,153	—	2,115,153	—
Presold mortgages in process of settlement	$	13,762	13,762	—	—
Nonrecurring
Collateral-dependent loans	$	13,963	—	—	13,963
Foreclosed real estate	378		—	—	378

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2020.

($ in thousands)
Description of Financial Instruments	Fair Value at December 31, 2020		Quoted 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	$	70,206	—	70,206	—
Mortgage-backed securities	1,337,706		—	1,337,706	—
Corporate bonds	45,220		—	45,220	—
Total available for sale securities	$	1,453,132	—	1,453,132	—
Presold mortgages in process of settlement	$	42,271	42,271	—	—
Nonrecurring
Impaired loans	$	22,142	—	—	22,142
Foreclosed real estate	1,484		—	—	1,484

Schedule of significant unobservable inputs

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2021, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)
Description	Fair Value at June 30, 2021		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Individually evaluated loans - collateral-dependent	$	9,203	Appraised value	Discounts applied for estimated costs to sell	10%
Individually evaluated loans - cash flow dependent	4,760		PV of expected cash flows	Discount rates used in the calculation of the present value ("PV") of expected cash flows	4%-11% (6.12%)
Foreclosed real estate	378		Appraised value	Discounts for estimated costs to sell	10%

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2020, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)
Description	Fair Value at December 31, 2020		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Impaired loans - valued at collateral value	$	16,000	Appraised value	Discounts applied for estimated costs to sell	10%
Impaired loans - valued at PV of expected cash flows	6,142		PV of expected cash flows	Discount rates used in the calculation of PV of expected cash flows	4%-11% (6.21%)
Foreclosed real estate	1,484		Appraised value	Discounts for estimated costs to sell	10%

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 June 30, 2021 and December 31, 2020 are as follows:

		June 30, 2021			December 31, 2020
($ in thousands)	Level in Fair Value Hierarchy	Carrying Amount		Estimated Fair Value	Carrying Amount	Estimated Fair Value
Cash and due from banks, noninterest-bearing	Level 1	$	83,851	83,851	93,724	93,724
Due from banks, interest-bearing	Level 1	391,375		391,375	273,566	273,566
Securities held to maturity	Level 2	291,728		292,774	167,551	170,734
SBA loans held for sale	Level 2	5,480		6,297	6,077	7,465
Total loans, net of allowance	Level 3	4,717,042		4,704,356	4,678,927	4,661,197
Accrued interest receivable	Level 1	20,357		20,357	20,272	20,272
Bank-owned life insurance	Level 1	108,209		108,209	106,974	106,974
SBA Servicing Asset	Level 3	6,089		7,066	5,788	6,569
Deposits	Level 2	7,171,358		7,172,244	6,273,596	6,275,329
Borrowings	Level 2	61,252		53,962	61,829	53,321
Accrued interest payable	Level 2	710		710	904	904
Commitments to extend credit	Level 3	—		10,025	—	461