FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2021

FAIR VALUE OF FINANCIAL INSTRUMENTS

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

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%)

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

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%)

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