Fair Value (Tables)

9 Months Ended

Sep. 30, 2019

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, 2019.



($ in thousands)
Description of Financial Instruments	Fair Value at September 30, 2019		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	$	30,053	—	30,053	—
Mortgage-backed securities	640,488		—	640,488	—
Corporate bonds	34,683		—	34,683	—
Total available for sale securities	$	705,224	—	705,224	—

Nonrecurring
Impaired loans	$	12,406	—	—	12,406
Foreclosed real estate	2,294		—	—	2,294

The following table summarizes the Company’s financial instruments that were measured at fair value on a recurring and nonrecurring basis at December 31, 2018.



($ in thousands)
Description of Financial Instruments	Fair Value at December 31, 2018		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	$	82,662	—	82,662	—
Mortgage-backed securities	385,551		—	385,551	—
Corporate bonds	33,138		—	33,138	—
Total available for sale securities	$	501,351	—	501,351	—

Nonrecurring
Impaired loans	$	13,071	—	—	13,071
Foreclosed real estate	7,440		—	—	7,440

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, 2019, the significant unobservable inputs used in the fair value measurements were as follows:



($ in thousands)
Description	Fair Value at September 30, 2019		Valuation Technique	Significant Unobservable Inputs	Range of Significant Unobservable Input Values
Impaired loans	$	12,406	Appraised value; PV of expected cash flows	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-10%
Foreclosed real estate	2,294		Appraised value; List or contract price	Discounts to reflect current market conditions, abbreviated holding period and estimated costs to sell	0-10%

For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2018, the significant unobservable inputs used in the fair value measurements were as follows:



($ in thousands)
Description	Fair Value at December 31, 2018		Valuation Technique	Significant Unobservable Inputs	Range of Significant Unobservable Input Values
Impaired loans	$	13,071	Appraised value; PV of expected cash flows	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	0-10%
Foreclosed real estate	7,440		Appraised value; List or contract price	Discounts to reflect current market conditions and estimated costs to sell	0-10%

Schedule of the carrying amounts and estimated fair values of financial instruments

The carrying amounts and estimated fair values of financial instruments at September 30, 2019 and December 31, 2018 are as follows:



		September 30, 2019			December 31, 2018
($ 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	$	52,621	52,621	56,050	56,050
Due from banks, interest-bearing	Level 1	264,840		264,840	406,848	406,848
Securities available for sale	Level 2	705,224		705,224	501,351	501,351
Securities held to maturity	Level 2	74,265		74,465	101,237	99,906
Presold mortgages in process of settlement	Level 1	16,269		16,269	4,279	4,279
Total loans, net of allowance	Level 3	4,377,284		4,341,770	4,228,025	4,181,139
Accrued interest receivable	Level 1	16,297		16,297	16,004	16,004
Bank-owned life insurance	Level 1	103,806		103,806	101,878	101,878
SBA Servicing Asset	Level 3	5,500		5,966	4,419	4,617

Deposits	Level 2	4,875,382		4,874,274	4,659,339	4,653,522
Borrowings	Level 2	300,656		294,913	406,609	402,556
Accrued interest payable	Level 2	2,169		2,169	1,976	1,972

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details