XML 44 R31.htm IDEA: XBRL DOCUMENT

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Schedule of recorded amount of assets and liabilities measured at fair value on a recurring basis

The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 (unaudited) and December 31, 2019.


			Significant		Significant
			Other		Other
			Observable		Unobservable
	Quoted Prices		Inputs		Inputs		Total
(dollars in thousands)	(Level 1)		(Level 2)		(Level 3)		(Fair Value)
September 30, 2020
Assets:
Investment securities available-for-sale:
U. S. agency securities	$	—	$	131,286	$	—	$	131,286
Residential mortgage backed securities	—		716,643		—		716,643
Municipal bonds	—		94,713		—		94,713
Corporate bonds	—		33,230		1,500		34,730
Other equity investments	—		—		198		198
Loans held for sale	—		79,084		—		79,084
Interest Rate Caps	—		4,233		—		4,233
Mortgage banking derivatives	—		—		6,015		6,015
Total assets measured at fair value on a recurring basis as of September 30, 2020	$	—	$	1,059,189	$	7,713	$	1,066,902
Liabilities:
Interest rate swap derivatives	$	—	$	910	$	—	$	910
Derivative liability	—		136		—		136
Interest Rate Caps	—		4,487		—		4,487
Total liabilities measured at fair value on a recurring basis as of September 30, 2020	$	—	$	5,533	$	—	$	5,533
December 31, 2019
Assets:
Investment securities available-for-sale:
U. S. agency securities	$	—	$	179,794	$	—	$	179,794
Residential mortgage backed securities	—		543,852		—		543,852
Municipal bonds	—		73,931		—		73,931
Corporate bonds	—		—		10,733		10,733
U.S. Treasury	—		34,855		—		34,855
Other equity investments	—		—		198		198
Loans held for sale	—		56,707		—		56,707
Interest Rate Caps	—		317		—		317
Mortgage banking derivatives	—		—		280		280
Total assets measured at fair value on a recurring basis as of December 31, 2019	$	—	$	889,456	$	11,211	$	900,667
Liabilities:
Interest rate swap derivatives	$	—	$	203	$	—	$	203
Derivative liability	—		86		—		86
Interest Rate Caps	—		312		—		312
Mortgage banking derivatives	—		—		66		66
Total liabilities measured at fair value on a recurring basis as of December 31, 2019	$	—	$	601	$	66	$	667

Schedule of aggregate fair value and the aggregate unpaid principal balance for loans held for sale measured at fair value

The following tables summarize the difference between the aggregate fair value and the aggregate unpaid principal balance for loans held for sale measured at fair value as of September 30, 2020 (unaudited) and December 31, 2019.


	September 30, 2020
			Aggregate
			Unpaid
			Principal
(dollars in thousands)	Fair Value		Balance		Difference
Loans held for sale	$	79,084	$	77,572	$	1,512


	December 31, 2019
			Aggregate
			Unpaid
			Principal
(dollars in thousands)	Fair Value		Balance		Difference
Loans held for sale	$	56,707	$	55,834	$	873

Schedule of the reconciliation of activity for assets and liabilities measured at fair value based on Significant Other Unobservable Inputs (Level 3)

The following is a reconciliation of activity for assets and liabilities measured at fair value based on Significant Other Unobservable Inputs (Level 3):


	Investment		Mortgage Balancing
(dollars in thousands)	Securities		Derivatives		Total
Assets:
Beginning balance at January 1, 2020	$	10,931	$	280	$	11,211
Realized gain (loss) included in earnings	—		5,735		5,735
Unrealized gain included in other comprehensive income	—		—		—
Purchases of available-for-sale securities	—		—		—
Principal redemption	—		—		—
Migrated to Level 2 valuation	$	(9,233)	$	—	$	(9,233)
Ending balance at September 30, 2020	$	1,698	$	6,015	$	7,713

Liabilities:
Beginning balance at January 1, 2020	$	—	$	66	$	66
Realized loss included in earnings	—		(66)		(66)
Principal redemption	—		—		—
Ending balance at September 30, 2020	$	—	$	—	$	—


	Investment		Mortgage Balancing
(dollars in thousands)	Securities		Derivatives		Total
Assets:
Beginning balance at January 1, 2019	$	9,794	$	229	$	10,023
Realized (loss) gain included in earnings	(20)		51		31
Unrealized gain included in other comprehensive income	131		—		131
Purchases of available-for-sale securities	4,030		—		4,030
Principal redemption	(3,004)		—		(3,004)
Ending balance at December 31, 2019	$	10,931	$	280	$	11,211

Liabilities:
Beginning balance at January 1, 2019	$	—	$	269	$	269
Realized gain included in earnings	—		(203)		(203)
Principal redemption	—		—		—
Ending balance at December 31, 2019	$	—	$	66	$	66

Schedule of assets measured at fair value on nonrecurring basis


			Significant		Significant
			Other		Other
			Observable		Unobservable
	Quoted Prices		Inputs		Inputs		Total
(dollars in thousands)	(Level 1)		(Level 2)		(Level 3)		(Fair Value)
September 30, 2020
Commercial	$	—	$	824	$	16,307	$	17,131
Income producing - commercial real estate	—		22,220		7,036		29,256
Owner occupied - commercial real estate	—		11,535		2,680		14,215
Real estate mortgage - residential	—		1,893		3,442		5,335
Construction - commercial and residential	—		—		2,274		2,274
Home equity	—		109		—		109
Other consumer	—		—		8		8
Other real estate owned	—		—		—		—
Total assets measured at fair value on a nonrecurring basis as of September 30, 2020	$	—	$	36,581	$	31,747	$	68,328


			Significant		Significant
			Other		Other
			Observable		Unobservable
	Quoted Prices		Inputs		Inputs		Total
(dollars in thousands)	(Level 1)		(Level 2)		(Level 3)		(Fair Value)
December 31, 2019
Impaired loans:
Commercial	$	—	$	—	$	10,100	$	10,100
Income producing - commercial real estate	—		—		11,948		11,948
Owner occupied - commercial real estate	—		—		6,934		6,934
Real estate mortgage - residential	—		—		4,981		4,981
Construction - commercial and residential	—		—		11,409		11,409
Home equity	—		—		387		387
Other real estate owned	—		—		1,487		1,487
Total assets measured at fair value on a nonrecurring basis as of December 31, 2019	$	—	$	—	$	47,246	$	47,246

Schedule of estimated fair values of financial instruments

The estimated fair value of the Company’s financial instruments at September 30, 2020 (unaudited) and December 31, 2019 are as follows:


					Fair Value Measurements
					Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	Carrying
(dollars in thousands)	Value		Fair Value
September 30, 2020
Assets
Cash and due from banks	$	7,559	$	7,559	$	—	$	7,559	$	—
Federal funds sold	30,830		30,830		—		30,830		—
Interest bearing deposits with other banks	818,719		818,719		—		818,719		—
Investment securities	977,570		977,570		—		976,070		1,500
Federal Reserve and Federal Home Loan Bank stock	40,061		40,061		—		40,061		—
Loans held for sale	79,084		79,084		—		79,084		—
Loans	7,770,040		7,733,020		—		—		7,733,020
Bank owned life insurance	76,326		76,326		—		76,326		—
Annuity investment	14,541		14,541		—		14,541		—
Mortgage banking derivatives	6,015		6,015		—		—		6,015
Interest Rate Caps	4,233		4,233		—		4,233		—

Liabilities
Noninterest bearing deposits	2,384,108		2,384,108		—		2,384,108		—
Interest bearing deposits	4,780,160		4,780,160		—		4,780,160		—
Certificates of deposit	1,014,517		1,033,703		—		1,033,703		—
Customer repurchase agreements	24,293		24,293		—		24,293		—
Borrowings	567,980		573,641		—		573,641		—
Interest rate swap derivatives	910		910		—		910		—
Derivative liability	136		136		—		136		—
Interest Rate Caps	4,487		4,487		—		4,487		—

December 31, 2019
Assets
Cash and due from banks	$	7,539	$	7,539	$	—	$	7,539	$	—
Federal funds sold	38,987		38,987		—		38,987		—
Interest bearing deposits with other banks	195,447		195,447		—		195,447		—
Investment securities	843,363		843,363		—		832,432		10,931
Federal Reserve and Federal Home Loan Bank stock	35,194		35,194		—		35,194		—
Loans held for sale	56,707		56,707		—		56,707		—
Loans	7,472,090		7,550,249		—		—		7,550,249
Bank owned life insurance	75,724		75,724		—		75,724		—
Annuity investment	14,697		14,697		—		14,697		—
Interest Rate Caps	280		280		—		280		—

Liabilities
Noninterest bearing deposits	2,064,367		2,064,367		—		2,064,367		—
Interest bearing deposits	3,876,985		3,876,985		—		3,876,985		—
Certificates of deposit	1,283,039		1,291,688		—		1,291,688		—
Customer repurchase agreements	30,980		30,980		—		30,980		—
Borrowings	467,687		328,330		—		328,330		—
Interest rate swap derivatives	203		203		—		203		—
Derivative liability	86		86		—		86		—
Interest Rate Caps	312		312		—		312		—
Mortgage banking derivatives	66		66		—		—		66

Fair value measurement inputs and valuation techniques

Form Level 3 assets measured at fair value on a recurring or nonrecurring basis as of September 30, 2020 and December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows:


		September 30, 2020							December 31, 2019
(dollars in thousands)	Valuation Technique	Description	Range	Weighted Average (1)		Fair Value			Weighted Average (1)			Fair Value
Mortgage banking derivatives	Pricing Model	Pull Through Rate	69.9% - 81.4%	78.44	%	$	6,015	0	76.25	%	76.25	$	280

(1) Unobservable inputs for mortgage banking derivatives were weighted by loan amount.