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FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS (Tables)
6 Months Ended
Jun. 30, 2021
FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS  
Schedule of estimated fair values

Estimated fair values for the Company’s financial instruments are as follows, as of the dates noted:

June 30, 2021

Fair Value Measurements

($ in thousands)

    

    

    

    

Significant

    

Other

Significant

Observable

Unobservable

Carrying

Estimated

Quoted Prices

Inputs

Inputs

    

Amount

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Financial Instruments:

Assets:

 

  

 

  

 

  

 

  

 

  

Cash and cash equivalents

$

762,486

$

762,486

$

762,486

$

$

Securities available-for- sale:

 

 

 

 

 

U.S. Treasury

36,957

36,957

36,957

Obligations of U.S. government agencies and sponsored entities

 

150,504

 

150,504

 

 

150,504

 

Municipal securities

 

531,134

 

531,134

 

 

511,030

 

20,104

Mortgage- backed securities

 

530,749

 

530,749

 

 

530,749

 

Corporate obligations

 

31,417

 

31,417

 

 

31,199

 

218

Loans, net

 

3,004,275

 

3,042,805

 

 

 

3,042,805

Accrued interest receivable

 

24,026

 

24,026

 

 

6,107

 

17,919

Liabilities:

 

 

 

 

 

Noninterest-bearing deposits

$

682,014

$

682,014

$

$

682,014

$

Interest-bearing deposits

 

3,991,898

3,973,535

 

 

3,973,535

 

Subordinated debentures

 

144,611

 

152,968

 

 

 

152,968

Accrued interest payable

 

1,827

 

1,827

 

 

1,827

 

December 31, 2020

Fair Value Measurements

($ in thousands)

    

    

    

    

Significant

    

Other

Significant

Quoted

Observable

Unobservable

Carrying

Estimated

Prices

Inputs

Inputs

    

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:

 

 

 

 

 

U.S. Treasury

9,383

9,383

9,383

Obligations of U.S. government agencies and sponsored entities

100,170

100,170

100,170

Municipal securities

480,374

480,374

460,248

20,126

Mortgage-backed securities

401,232

401,232

401,232

Corporate obligations

31,023

31,023

30,788

235

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

 

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, 2021

($ in thousands)

Fair Value Measurements Using

Quoted Prices in

Active Markets

Significant Other

Significant

For

Observable

Unobservable

Identical Assets

Inputs

Inputs

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Available-for-sale

U.S. Treasury

$

36,957

$

36,957

$

$

Obligations of U.S. Government agencies and sponsored entities

150,504

150,504

Municipal securities

 

531,134

 

 

511,030

 

20,104

Mortgage-backed securities

 

530,749

 

 

530,749

 

Corporate obligations

 

31,417

 

 

31,199

 

218

Total available-for-sale

$

1,280,761

$

36,957

$

1,223,482

$

20,322

December 31, 2020

($ in thousands)

Fair Value Measurements Using

Quoted Prices in

Active Markets

Significant 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

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)

    

2021

    

2020

Balance, January 1

$

235

$

408

Paydowns

(55)

(273)

Unrealized gain included in comprehensive income

 

38

 

105

Balance at June 30

$

218

$

240

Municipal Securities

($ in thousands)

    

2021

    

2020

Balance, January 1

$

20,126

$

10,345

Purchases

4,189

7,003

Maturities, calls and paydowns

(4,185)

(302)

Transfer to level 2

(6,293)

Unrealized gain (loss) included in comprehensive income

 

(26)

 

131

Balance at June 30

$

20,104

$

10,884

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, 2021 and December 31, 2020. 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

June 30, 2021

$

218

 

Discounted cash flow

 

Probability of default

 

0.99% - 2.39%

December 31, 2020

$

235

 

Discounted cash flow

 

Probability of default

 

1.08% - 2.48%

Significant Unobservable

Municipal Securities

    

Fair Value

    

Valuation Technique

    

Inputs

    

Range of Inputs

June 30, 2021

$

20,104

 

Discounted cash flow

 

Discount Rate

 

0.50% - 2.00%

December 31, 2020

$

20,126

 

Discounted cash flow

 

Discount Rate

 

0.50% - 2.45%

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, 2021 and December 31, 2020.

June 30, 2021

($ in thousands)

Fair Value Measurements Using

Quoted Prices in

Significant

Active Markets

Other

Significant

For

Observable

Unobservable

Identical Assests

Inputs

Inputs

    

Fair Value

    

(Level 1)

    

(Level 2)

    

(Level 3)

Collateral dependent loans

$

5,176

$

$

$

5,176

Other real estate owned

 

3,529

 

 

 

3,529

December 31, 2020

($ in thousands)

Fair Value Measurements Using

Quoted Prices in

Significant

Active Markets

Other

Significant

For

Observable

Unobservable

Identical Assests

Inputs

Inputs

Fair Value

    

(Level 1)

(Level 2)

(Level 3)

Impaired loans

$

15,107

$

$

$

15,107

Other real estate owned

 

5,802

 

 

 

5,802