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FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS (Tables)
12 Months Ended
Dec. 31, 2020
FAIR VALUES OF ASSETS AND LIABILITIES  
Schedule of assets measured at fair value on a recurring basis

The following table presents the Company’s securities that are measured at fair value on a recurring basis and the level within the hierarchy in which the fair value measurements fell as of December 31, 2020 and 2019 ($ in thousands):

December 31, 2020

Fair Value Measurements

($ in thousands)

Quoted Prices in

Significant

Active Markets

Other

Significant

For

Observable

Unobservable

Identical Assets

Inputs

Inputs

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Available-for-sale

U.S. Treasury

 

$

9,383

 

$

9,383

 

$

 

$

Obligations of U.S. government agencies and sponsored entities

100,170

100,170

Municipal securities

 

480,374

 

 

460,248

 

20,126

Mortgage-backed securities

 

401,232

 

 

401,232

 

Corporate obligations

 

31,023

 

 

30,788

 

235

Total available for sale

$

1,022,182

$

9,383

$

992,438

$

20,361

December 31, 2019

Fair Value Measurements

($ in thousands)

Quoted Prices in

Significant

Active Markets

Other

Significant

For

Observable

Unobservable

Identical Assets

Inputs

Inputs

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Available-for-sale

 

  

 

  

 

  

 

  

U.S. Treasury

$

4,894

$

4,894

$

$

Obligations of U.S. government agencies and sponsored entities

77,950

77,950

Municipal securities

 

258,982

 

 

248,637

 

10,345

Mortgage-backed securities

 

395,315

 

 

395,315

 

Corporate obligations

 

27,946

 

 

27,538

 

408

Total available for sale

$

765,087

$

4,894

$

749,440

$

10,753

Schedule of activity for assets measured at fair value based on significant unobservable (Level 3) information

The following is a reconciliation of activity for assets measured at fair value based on significant unobservable (Level 3) information:

Bank-Issued

Trust

Preferred

Securities

($ in thousands)

    

2020

    

2019

Balance, January 1

$

408

$

874

Unrealized loss included in comprehensive income

 

(173)

 

(466)

Balance, December 31

$

235

$

408

Municipal Securities

($ in thousands)

    

2020

    

2019

Balance, January 1

$

10,345

$

7,574

Purchases

19,397

5,600

Sales

(3,334)

(3,116)

Transfer to level 2

(6,294)

Unrealized gain included in comprehensive income

 

12

 

287

Balance, December 31

$

20,126

$

10,345

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 December 31, 2020 and 2019. The following tables present quantitative information about recurring Level 3 fair value measurements ($ in thousands):

Significant Unobservable

Trust Preferred Securities

    

Fair Value

    

Valuation Technique

    

Inputs

    

Range of Inputs

December 31, 2020

$

235

 

Discounted cash flow

 

Discount rate

 

1.08% - 2.48%

December 31, 2019

$

408

 

Discounted cash flow

 

Discount rate

 

2.73% - 4.15%

Significant Unobservable

Municipal Securities

    

Fair Value

    

Valuation Technique

    

Inputs

    

Range of Inputs

December 31, 2020

$

20,126

 

Discounted cash flow

 

Discount rate

 

0.50% - 2.45%

December 31, 2019

$

10,345

 

Discounted cash flow

 

Discount rate

 

1.50% - 4.40%

Schedule of fair value measurement of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy

Fair Value Measurements Using

Quoted Prices in

Significant

Active Markets

Other

Significant

For

Observable

Unobservable

Identical Assets

Inputs

Inputs

($ in thousands)

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

December 31, 2020

  

  

  

  

Impaired loans

$

15,107

$

$

$

15,107

Other real estate owned

 

5,802

 

 

 

5,802

December 31, 2019

 

  

 

  

 

  

 

  

Impaired loans

$

11,337

$

$

$

11,337

Other real estate owned

 

7,299

 

 

 

7,299

Schedule of estimated fair values

Fair Value Measurements

Significant

Significant

Quoted

Other  Observable

Unobservable

December 31, 2020

Carrying

Estimated

Prices

Inputs

Inputs

($ in thousands)

    

Amount

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Financial Instruments:

 

  

 

  

 

  

 

  

 

  

Assets:

 

  

 

  

 

  

 

  

 

  

Cash and cash equivalents

$

562,554

$

562,554

$

562,554

$

$

Securities available-for-sale

 

1,022,182

 

1,022,182

 

9,383

 

992,438

 

20,361

Loans, net

 

3,087,858

 

3,089,318

 

 

 

3,089,318

Accrued interest receivable

 

26,344

 

26,344

 

 

5,690

 

20,654

Liabilities:

 

 

 

 

 

Non-interest-bearing deposits

$

571,079

$

571,079

$

$

571,079

$

Interest-bearing deposits

 

3,644,201

 

3,647,845

 

 

3,647,845

 

Subordinated debentures

 

144,592

 

145,289

 

 

 

145,289

FHLB and other borrowings

 

114,647

 

114,647

 

 

114,647

 

Accrued interest payable

 

2,134

 

2,134

 

 

2,134

 

Fair Value Measurements

Significant

Significant

Quoted

Other  Observable

Unobservable

December 31, 2019

Carrying

Estimated

Prices

Inputs

Inputs

($ in thousands)

    

Amount

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Financial Instruments:

 

  

 

  

 

  

 

  

 

  

Assets:

 

  

 

  

 

  

 

  

 

  

Cash and cash equivalents

$

168,864

$

168,864

$

168,864

$

$

Securities available-for-sale

 

765,087

 

765,087

 

4,894

 

749,440

 

10,753

Loans, net

 

2,597,260

 

2,560,668

 

 

 

2,560,668

Accrued interest receivable

 

14,802

14,802

4,246

10,556

  

 

  

 

  

 

  

 

  

Liabilities:

 

Non-interest-bearing deposits

$

723,208

$

723,208

$

$

723,208

$

Interest-bearing deposits

 

2,353,325

 

2,339,537

 

 

2,339,537

 

Subordinated debentures

 

80,678

 

80,330

 

 

 

80,330

FHLB and other borrowings

 

214,319

 

214,319

 

 

214,319

 

Accrued interest payable

 

2,508

 

2,508

 

 

2,508