Fair Value (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Financial Instruments 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, 2022.

($ in thousands) Description of Financial Instruments	Fair Value at September 30, 2022		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:
U.S. Treasury	$	168,723	—	168,723	—
Government-sponsored enterprise securities	57,429		—	57,429	—
Mortgage-backed securities	2,068,769		—	2,068,769	—
Corporate bonds	43,294		—	43,294	—
Total available for sale securities	$	2,338,215	—	2,338,215	—
Presold mortgages in process of settlement	$	3,233	3,233	—	—
Nonrecurring
Individually evaluated loans	$	9,725	—	—	9,725

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2021.

($ in thousands) Description of Financial Instruments	Fair Value at December 31, 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	$	69,179	—	69,179	—
Mortgage-backed securities	2,514,805		—	2,514,805	—
Corporate bonds	46,430		—	46,430	—
Total available for sale securities	$	2,630,414	—	2,630,414	—
Presold mortgages in process of settlement	$	19,257	19,257	—	—
Nonrecurring
Individually evaluated loans	$	11,583	—	—	11,583
Foreclosed real estate	364		—	—	364

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, 2022, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)	Fair Value at September 30, 2022		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Individually evaluated loans - collateral-dependent	$	5,212	Appraised value	Discounts applied for estimated costs to sell	10%
Individually evaluated loans - cash-flow dependent	4,513		PV of expected cash flows	Discount rates used in the calculation of the present value ("PV") of expected cash flows	4%-11% (6.60%)

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2021, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)	Fair Value at December 31, 2021		Valuation Technique	Significant Unobservable Inputs	Range (Weighted Average)
Individually evaluated loans - collateral-dependent	$	7,326	Appraised value	Discounts applied for estimated costs to sell	10%
Individually evaluated loans - cash-flow dependent	4,257		PV of expected cash flows	Discount rates used in the calculation of PV of expected cash flows	4%-11% (6.22%)
Foreclosed real estate	364		Appraised value	Discounts applied 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 September 30, 2022 and December 31, 2021 were as follows:

		September 30, 2022			December 31, 2021
($ 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	$	83,050	83,050	128,228	128,228
Due from banks, interest-bearing	Level 1	186,465		186,465	332,934	332,934
Securities held to maturity	Level 2	544,193		418,599	513,825	511,699
SBA and other loans held for sale	Level 2	477		477	61,003	62,044
Total loans, net of allowance	Level 3	6,438,699		6,300,474	6,002,926	5,990,235
Accrued interest receivable	Level 1	25,332		25,332	25,896	25,896
Bank-owned life insurance	Level 1	164,793		164,793	165,786	165,786
SBA Servicing Asset	Level 3	4,392		5,343	5,472	5,546
Deposits	Level 2	9,229,271		9,218,071	9,124,629	9,124,701
Borrowings	Level 2	226,476		216,516	67,386	61,295
Accrued interest payable	Level 2	881		881	607	607