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FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS (Tables)
6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
Schedule of estimated fair values
Estimated fair values for the Company’s financial instruments are as follows, as of the dates noted:
June 30, 2022Carrying
Amount
Estimated
Fair Value
Fair Value Measurements
($ in thousands)
Quoted Prices
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Financial Instruments:
Assets:
Cash and cash equivalents$356,771 $356,771 $356,771 $— $— 
Securities available-for-sale:
U.S. Treasury126,841 126,841 126,841 — — 
Obligations of U.S. government agencies and sponsored entities158,660 158,660 — 158,660 — 
Municipal securities591,818 591,818 — 573,561 18,257 
Mortgage-backed securities574,634 574,634 — 574,634 — 
Corporate obligations37,294 37,294 — 37,262 32 
Securities held-to-maturity593,154 561,333 — 561,333 — 
Loans, net3,092,524 3,115,862 — — 3,115,862 
Accrued interest receivable24,543 24,543 — 9,211 15,332 
Liabilities:
Noninterest-bearing deposits$822,841 $822,841 $— $822,841 $— 
Interest-bearing deposits4,483,356 4,331,370 — 4,331,370 — 
Subordinated debentures144,876 145,055 — — 145,055 
Accrued interest payable1,607 1,607 — 1,607 — 
December 31, 2021Carrying
Amount
Estimated
Fair Value
Fair Value Measurements
($ in thousands)
Quoted
Prices
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Financial Instruments:
Assets:
Cash and cash equivalents$919,713 $919,713 $919,713 $— $— 
Securities available-for-sale:
U.S. Treasury135,158 135,158 135,158 — — 
Obligations of U.S. government agencies and sponsored entities183,021 183,021 — 183,021 — 
Municipal securities708,502 708,502 — 688,379 20,123 
Mortgage-backed securities688,298 688,298 — 688,298 — 
Corporate obligations36,853 36,853 — 36,810 43 
Loans, net2,928,811 2,956,297 — — 2,956,297 
Accrued interest receivable23,256 23,256 — 6,838 16,418 
Liabilities:
Non-interest-bearing deposits$756,118 $756,118 $— $756,118 $— 
Interest-bearing deposits4,470,666 4,431,771 — 4,431,771 — 
Subordinated debentures144,726 156,952 — — 156,952 
Accrued interest payable1,711 1,711 — 1,711 — 
Schedule of assets measured at fair value on a recurring basis
Assets measured at fair value on a recurring basis are summarized below:
June 30, 2022
($ in thousands)Fair ValueFair Value Measurements Using
Quoted Prices in
Active Markets
For
Identical Assets
(Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Available-for-sale
U.S. Treasury$126,841 $126,841 $— $— 
Obligations of U.S. Government agencies and sponsored entities158,660 — 158,660 — 
Municipal securities591,818 — 573,561 18,257 
Mortgage-backed securities574,634 — 574,634 — 
Corporate obligations37,294 — 37,262 32 
Total available-for-sale$1,489,247 $126,841 $1,344,117 $18,289 
December 31, 2021
($ in thousands)
Fair ValueFair Value Measurements Using
Quoted Prices in
Active Markets
For
Identical Assets
(Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Available-for-sale
U.S. Treasury$135,158 $135,158 $— $— 
Obligations of U.S. Government agencies and sponsored entities183,021 — 183,021 — 
Municipal securities708,502 — 688,379 20,123 
Mortgage-backed securities688,298 — 688,298 — 
Corporate obligations36,853 — 36,810 43 
Total available-for-sale$1,751,832 $135,158 $1,596,508 $20,166 
Schedule of reconciliation of activity for assets measured at fair value based on significant unobservable inputs (Level 3)
The following is a reconciliation of activity for assets measured at fair value based on significant unobservable inputs (Level 3) information.
Bank-Issued Trust
Preferred Securities
($ in thousands)20222021
Balance, January 1 $43 $235 
Paydowns(11)(55)
Unrealized gain included in comprehensive income— 38 
Balance at June 30$32 $218 
Municipal Securities
($ in thousands)2022 2021
Balance, January 1 $20,123 $20,126 
Purchases— 4,189 
Maturities, calls and paydowns(236)(4,185)
Unrealized loss included in comprehensive income (1,630)(26)
Balance at June 30$18,257 $20,104 
Schedule of quantitative information about recurring Level 3 fair value measurements
The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at June 30, 2022 and December 31, 2021. The following tables present quantitative information about recurring Level 3 fair value measurements ($ in thousands):
Trust Preferred SecuritiesFair ValueValuation TechniqueSignificant Unobservable
Inputs
Range of Inputs
June 30, 2022$32 Discounted cash flowProbability of default
4.25% - 4.72%
December 31, 2021$43 Discounted cash flowProbability of default
2.35% - 2.47%
Municipal SecuritiesFair ValueValuation TechniqueSignificant
Unobservable Inputs
Range of Inputs
June 30, 2022$18,257 Discounted cash flowDiscount Rate
2.00% - 3.90%
December 31, 2021$20,123 Discounted cash flowDiscount Rate
0.50% - 1.90%
Schedule of fair value measurement of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy
The following table presents the fair value measurement of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements were classified at June 30, 2022 and December 31, 2021.
June 30, 2022
($ in thousands)Fair Value Measurements Using
Fair ValueQuoted Prices in
Active Markets
For
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Collateral dependent loans$2,011 $— $— $2,011 
Other real estate owned 1,985 — — 1,985 
December 31, 2021
($ in thousands)Fair Value Measurements Using
Fair ValueQuoted Prices in
Active Markets
For
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Collateral dependent loans$3,564 $— $— $3,564 
Other real estate owned2,565 — — 2,565