Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

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 March 31, 2024:


($ in thousands) Description of Financial Instruments	Fair Value at March 31, 2024		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	$	123,770	—	123,770	—
Government-sponsored enterprise securities	59,959		—	59,959	—
Mortgage-backed securities	1,886,949		—	1,886,949	—
Corporate bonds	17,805		—	17,805	—
Total available for sale securities	$	2,088,483	—	2,088,483	—

Derivative financial assets	$	—	—	—	—

Presold mortgages in process of settlement	$	6,703	—	6,703	—

Derivative financial liabilities	$	30	—	30	—

Nonrecurring
Individually evaluated loans	$	4,638	—	—	4,638

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2023:


($ in thousands) Description of Financial Instruments	Fair Value at December 31, 2023		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:
US Treasury securities	$	172,570	—	172,570	—
Government-sponsored enterprise securities	60,266		—	60,266	—
Mortgage-backed securities	1,937,784		—	1,937,784	—
Corporate bonds	18,759		—	18,759	—
Total available for sale securities	$	2,189,379	—	2,189,379	—

Derivative financial assets	$	295	—	295	—

Presold mortgages in process of settlement	$	2,667	—	2,667	—

Derivative financial liabilities	$	349	—	349	—

Nonrecurring
Individually evaluated loans	$	1,953	—	—	1,953

Schedule of Significant Unobservable Inputs

For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of March 31, 2024, the significant unobservable inputs used in the fair value measurements were as presented in the tables below:

($ in thousands)

Fair Value at March 31, 2024

Valuation
Technique

Significant Unobservable
Inputs

Range (Weighted Average)

Individually evaluated loans - collateral-dependent

4,638

Appraised value

Discounts applied for estimated costs to sell

10%

For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2023, the significant unobservable inputs used in the fair value measurements were as follows:

($ in thousands)

Fair Value at December 31, 2023

Valuation
Technique

Significant Unobservable
Inputs

Range (Weighted Average)

Individually evaluated loans - collateral-dependent

1,953

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 March 31, 2024 and December 31, 2023 were as follows:


		March 31, 2024			December 31, 2023
($ 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	$	87,181	87,181	100,891	100,891
Due from banks, interest-bearing	Level 1	266,661		266,661	136,964	136,964
Securities held to maturity	Level 2	525,627		436,655	533,678	449,623

Total loans, net of allowance	Level 3	7,966,439		7,198,019	8,040,249	7,379,079
Accrued interest receivable	Level 1	35,147		35,147	37,351	37,351
Bank-owned life insurance	Level 1	185,061		185,061	183,897	183,897
SBA Servicing Asset	Level 3	3,137		3,984	3,351	4,049

Demand deposits, money market and savings	Level 2	9,136,213		9,136,213	9,052,905	9,052,905
Time deposits	Level 2	1,167,098		1,160,751	978,694	972,513
Borrowings	Level 2	332,335		318,292	630,158	615,614
Accrued interest payable	Level 1	9,847		9,847	5,699	5,699