Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis (in thousands):

			Quoted Prices in		Significant		Significant
			Active Markets		Other		Other
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
Description	Fair Value		(Level 1)		(Level 2)		(Level 3)
September 30, 2021:
Assets:
Securities available-for-sale:
U.S. Treasury		94,025		—		94,025		—
U.S. Government-sponsored enterprises (GSEs)	$	53,463	$	—	$	53,463	$	—
Municipal securities		95,570		—		95,570		—
Other debt securities		26,291		—		26,291		—
Mortgage-backed securities (GSEs)		69,994		—		69,994		—
Total securities available-for-sale	$	339,343	$	—	$	339,343	$	—
Liabilities:
Derivative financial instruments	$	4,180	$	—	$	4,180	$	—
December 31, 2020:
Assets:
Securities available-for-sale:
U.S. Government-sponsored enterprises (GSEs)	$	30,530	$	—	$	30,530	$	—
Municipal securities		91,989		—		91,989		—
Other debt securities		25,118		—		25,118		—
Mortgage-backed securities (GSEs)		67,997		—		67,997		—
Total securities available-for-sale	$	215,634	$	—	$	215,634	$	—
Liabilities:
Derivative financial instruments	$	6,174		—	$	6,174		—

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis

			Quoted Prices in		Significant		Significant
			Active Markets		Other		Other
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
September 30, 2021:
Collateral dependent loans	$	2,868	$	—	$	—	$	2,868
Other real estate owned		2,415		—		—		2,415
December 31, 2020:
Collateral dependent loans	$	2,455	$	—	$	—	$	2,455
Other real estate owned		4,619		—		—		4,619

Fair Value Measurement Inputs and Valuation Techniques

For Level 3 assets measured at fair value on a non-recurring basis, the significant unobservable inputs used in the fair value measurements are presented below (dollars in thousands):

					Weighted
			Valuation	Significant Other	Average of
	Fair Value		Technique	Unobservable Input	Input
September 30, 2021:
Collateral dependent loans	$	2,868	Appraisal	Appraisal discounts	26	%
Other real estate owned		2,415	Appraisal	Appraisal discounts	10	%
December 31, 2020:
Collateral dependent loans	$	2,455	Appraisal	Appraisal discounts	9	%
Other real estate owned		4,619	Appraisal	Appraisal discounts	22	%

Collateral dependent loans: A collateral dependent loan is measured based on the fair value of the collateral securing these loans, less selling costs. Collateral dependent loans are classified within Level 3 of the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory, and/or accounts receivable. The Company determines the value of the collateral based on independent appraisals performed by qualified licensed appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Appraised values are discounted for costs to sell and may be discounted further based on management’s historical knowledge, changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Such discounts by management are subjective and are typically significant unobservable inputs for determining fair value. Colleterial dependent loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors discussed above.

Fair Value, by Balance Sheet Grouping

The carrying amount and estimated fair value of the Company’s financial instruments are as follows (in thousands):

	Fair Value Measurements Using
	Carrying								Estimated
	Amount		Level 1		Level 2		Level 3		Fair Value
September 30, 2021:
Assets:
Cash and cash equivalents	$	1,091,160	$	1,091,160	$	—	$	—	$	1,091,160
Securities available-for-sale		339,343		—		339,343		—		339,343
Other investments		14,972		N/A		N/A		N/A		N/A
Loans and leases, net and loans held for sale		2,636,786		—		—		2,630,239		2,630,239
Liabilities:
Noninterest-bearing demand deposits		977,180		—		977,180		—		977,180
Interest-bearing demand deposits		847,007		—		847,007		—		847,007
Money market and savings deposits		1,389,393		—		1,389,393		—		1,389,393
Time deposits		585,692		—		587,954		—		587,954
Borrowings		88,748		—		89,669		—		89,669
Subordinated debt		41,909		—		—		43,645		43,645
Derivative financial instruments		4,180		—		4,180		—		4,180
December 31, 2020:
Assets:
Cash and cash equivalents	$	481,719	$	481,719	$	—	$	—	$	481,719
Securities available-for-sale		215,634		—		215,634		—		215,634
Other investments		14,794		N/A		N/A		N/A		N/A
Loans and leases, net and loans held for sale		2,375,618		—		—		2,377,581		2,377,581
Liabilities:
Noninterest-bearing demand deposits		685,957		—		685,957		—		685,957
Interest-bearing demand deposits		649,129		—		649,129		—		649,129
Money market and savings deposits		919,631		—		919,631		—		919,631
Time deposits		550,498		—		554,120		—		554,120
Borrowings		81,199		—		82,892		—		82,892
Subordinated debt		39,346		—		—		40,550		40,550
Derivative financial instruments		6,174		—		6,174		—		6,174