Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2024:


($ in thousands) Description of Financial Instruments	Fair Value at June 30, 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:

Government-sponsored enterprise securities	$	60,127	$	—	$	60,127	$	—
Mortgage-backed securities	1,789,243		—		1,789,243		—
Corporate bonds	17,841		—		17,841		—
Total available for sale securities	$	1,867,211	$	—	$	1,867,211	$	—

Derivative financial assets	$	69	$	—	$	69	$	—

Presold mortgages in process of settlement	$	7,247	$	—	$	7,247	$	—

Derivative financial liabilities	$	70	$	—	$	70	$	—

Nonrecurring
Individually evaluated loans	$	4,561	$	—	$	—	$	4,561

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 June 30, 2024, the significant unobservable inputs used in the fair value measurements were as presented in the tables below:

($ in thousands)

Fair Value at June 30, 2024

Valuation
Technique

Significant Unobservable
Inputs

Range (Weighted Average)

Individually evaluated loans - collateral-dependent

4,561

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 June 30, 2024 and December 31, 2023 were as follows:


		June 30, 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	$	90,468	$	90,468	$	100,891	$	100,891
Due from banks, interest-bearing	Level 1	517,944		517,944		136,964		136,964
Securities held to maturity	Level 2	523,600		431,442		533,678		449,623

Total loans, net of allowance	Level 3	7,959,790		7,250,188		8,040,249		7,379,079
Accrued interest receivable	Level 1	35,605		35,605		37,351		37,351
Bank-owned life insurance	Level 1	186,031		186,031		183,897		183,897
SBA Servicing Asset	Level 3	3,002		3,923		3,351		4,049

Demand deposits, money market and savings	Level 1	9,453,321		9,453,321		9,052,905		9,052,905
Time deposits	Level 2	1,034,508		1,028,372		978,694		972,513
Borrowings	Level 2	91,513		79,815		630,158		615,614
Accrued interest payable	Level 1	5,728		5,728		5,699		5,699