FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
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3 Months Ended |
Mar. 31, 2021 |
FAIR VALUE OF FINANCIAL INSTRUMENTS |
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Summary of assets measured at fair value on a recurring basis |
| | | | | | | | | | | | | March 31, 2021 | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | Total Fair Value | | | | | (dollars in thousands) | Debt securities available-for-sale: | | | | | | | | | | | | | U.S. government agency | | $ | — | | $ | 127,938 | | $ | — | | $ | 127,938 | Municipal | | | — | | | 282,333 | | | — | | | 282,333 | Mortgage-backed: | | | | | | | | | | | | | Agency residential | | | — | | | 169,104 | | | — | | | 169,104 | Agency commercial | | | — | | | 207,997 | | | — | | | 207,997 | Corporate | | | — | | | 69,463 | | | — | | | 69,463 | Equity securities with readily determinable fair values | | | 3,332 | | | — | | | — | | | 3,332 | Mortgage servicing rights | | | — | | | — | | | 7,629 | | | 7,629 | Derivative financial assets | | | — | | | 8,560 | | | — | | | 8,560 | Derivative financial liabilities | | | — | | | 9,700 | | | — | | | 9,700 |
| | | | | | | | | | | | | December 31, 2020 | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | Total Fair Value | | | | | (dollars in thousands) | Debt securities available-for-sale: | | | | | | | | | | | | | U.S. government agency | | $ | — | | $ | 121,993 | | $ | — | | $ | 121,993 | Municipal | | | — | | | 274,261 | | | — | | | 274,261 | Mortgage-backed: | | | | | | | | | | | | | Agency residential | | | — | | | 203,252 | | | — | | | 203,252 | Agency commercial | | | — | | | 250,766 | | | — | | | 250,766 | Corporate | | | — | | | 72,597 | | | — | | | 72,597 | Equity securities with readily determinable fair values | | | 3,292 | | | — | | | — | | | 3,292 | Mortgage servicing rights | | | — | | | — | | | 5,934 | | | 5,934 | Derivative financial assets | | | — | | | 15,360 | | | — | | | 15,360 | Derivative financial liabilities | | | — | | | 16,818 | | | — | | | 16,818 |
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Schedule of quantitative information about the unobservable inputs used in recurring Level 3 fair value measurements |
The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands): | | | | | | | | | | March 31, 2021 | | Fair Value | | Valuation Technique | | Unobservable Inputs | | Range (Weighted Average) | Mortgage servicing rights | | $ | 7,629 | | Discounted cash flows | | Constant pre-payment rates (CPR) | | 7.0% to 85.0% (12.3%) | | | | | | | | Discount rate | | 8.8% to 11.0% (9.0%) | | | | | | | | | | | December 31, 2020 | | Fair Value | | Valuation Technique | | Unobservable Inputs | | Range (Weighted Average) | Mortgage servicing rights | | $ | 5,934 | | Discounted cash flows | | Constant pre-payment rates (CPR) | | 7.0% to 85.0% (17.3%) | | | | | | | | Discount rate | | 9.0% to 11.0% (9.0%) |
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Summary of assets measured at fair value on a nonrecurring basis |
| | | | | | | | | | | | | March 31, 2021 | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | Total Fair Value | | | | | (dollars in thousands) | Loans held for sale | | $ | — | | $ | 12,882 | | $ | — | | $ | 12,882 | Collateral-dependent impaired loans | | | — | | | — | | | 30,579 | | | 30,579 | Bank premises held for sale | | | — | | | — | | | 121 | | | 121 | Foreclosed assets | | | — | | | — | | | 4,748 | | | 4,748 |
| | | | | | | | | | | | | December 31, 2020 | | Level 1 Inputs | | Level 2 Inputs | | Level 3 Inputs | | Total Fair Value | | | | | (dollars in thousands) | Loans held for sale | | $ | — | | $ | 14,713 | | $ | — | | $ | 14,713 | Collateral-dependent impaired loans | | | — | | | — | | | 33,320 | | | 33,320 | Bank premises held for sale | | | — | | | — | | | 121 | | | 121 | Foreclosed assets | | | — | | | — | | | 4,168 | | | 4,168 |
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Schedule of quantitative information about the unobservable inputs used in non-recurring Level 3 fair value measurements |
The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands): | | | | | | | | | | March 31, 2021 | | Fair Value | | Valuation Technique | | Unobservable Inputs | | Range (Weighted Average) | Collateral-dependent impaired loans | | $ | 30,579 | | Appraisal of collateral | | Appraisal adjustments | | Not meaningful | Bank premises held for sale | | | 121 | | Appraisal | | Appraisal adjustments | | 7% (7%) | Foreclosed assets | | | 4,748 | | Appraisal | | Appraisal adjustments | | 7% (7%) | | | | | | | | | | | December 31, 2020 | | Fair Value | | Valuation Technique | | Unobservable Inputs | | Range (Weighted Average) | Collateral-dependent impaired loans | | $ | 33,320 | | Appraisal of collateral | | Appraisal adjustments | | Not meaningful | Bank premises held for sale | | | 121 | | Appraisal | | Appraisal adjustments | | 7% (7%) | Foreclosed assets | | | 4,168 | | Appraisal | | Appraisal adjustments | | 7% (7%) |
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Summary information on the carrying amounts and estimated fair values of the Company's financial instruments |
| | | | | | | | | | | | | | | | | Fair Value | | March 31, 2021 | | December 31, 2020 | | | Hierarchy | | Carrying | | Estimated | | Carrying | | Estimated | | | Level | | Amount | | Fair Value | | Amount | | Fair Value | | | | | | | (dollars in thousands) | Financial assets: | | | | | | | | | | | | | | | Cash and cash equivalents | | Level 1 | | $ | 429,736 | | $ | 429,736 | | $ | 312,451 | | $ | 312,451 | Debt securities held-to-maturity | | Level 2 | | | 192,994 | | | 195,608 | | | 68,395 | | | 72,441 | Restricted stock | | Level 3 | | | 2,498 | | | 2,498 | | | 2,498 | | | 2,498 | Loans, net | | Level 3 | | | 2,241,946 | | | 2,264,145 | | | 2,215,168 | | | 2,235,767 | Investments in unconsolidated subsidiaries | | Level 3 | | | 1,165 | | | 1,165 | | | 1,165 | | | 1,165 | Accrued interest receivable | | Level 2 | | | 12,718 | | | 12,718 | | | 14,255 | | | 14,255 | | | | | | | | | | | | | | | | Financial liabilities: | | | | | | | | | | | | | | | Time deposits | | Level 3 | | | 285,461 | | | 286,430 | | | 299,474 | | | 300,989 | Securities sold under agreements to repurchase | | Level 2 | | | 41,976 | | | 41,976 | | | 45,736 | | | 45,736 | Subordinated notes | | Level 3 | | | 39,257 | | | 38,162 | | | 39,238 | | | 38,403 | Junior subordinated debentures | | Level 3 | | | 37,665 | | | 23,528 | | | 37,648 | | | 23,766 | Accrued interest payable | | Level 2 | | | 551 | | | 551 | | | 1,151 | | | 1,151 |
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