Assets and Liabilities Measured at Fair Value on Recurring Basis


	Fair Value Measurements at
	December 31, 2023 Using:
	Quoted Prices in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable		Total
	Assets		Inputs		Inputs		Fair
(in thousands)	(Level 1)		(Level 2)		(Level 3)		Value
Financial assets:
Available-for-sale debt securities:
U.S. Treasury securities and U.S. Government agencies	$	177,784	$	229,249	$	—	$	407,033
Private label mortgage-backed security		—		—		1,773		1,773
Mortgage-backed securities - residential		—		154,710		—		154,710
Collateralized mortgage obligations		—		21,659		—		21,659
Corporate bonds		—		2,020		—		2,020
Trust preferred security		—		—		4,118		4,118
Total available-for-sale debt securities	$	177,784	$	407,638	$	5,891	$	591,313

Equity securities with readily determinable fair value:
Freddie Mac preferred stock	$	—	$	174	$	—	$	174
Community Reinvestment Act mutual fund		—		—		—		—
Total equity securities with readily determinable fair value	$	—	$	174	$	—	$	174

Mortgage loans held for sale	$	—	$	3,227	$	—	$	3,227
Consumer loans held for sale		—		—		7,914		7,914
Rate lock commitments		—		243		—		243
Interest rate swap agreements		—		8,933		—		8,933

Financial liabilities:
Mandatory forward contracts	$	—	$	61	$	—	$	61
Interest rate swap agreements		—		8,933		—		8,933


	Fair Value Measurements at
	December 31, 2022 Using:
	Quoted Prices in		Significant
	Active Markets		Other		Significant
	for Identical		Observable		Unobservable		Total
	Assets		Inputs		Inputs		Fair
(in thousands)	(Level 1)		(Level 2)		(Level 3)		Value
Financial assets:
Available-for-sale debt securities:
U.S. Treasury securities and U.S. Government agencies	$	193,385	$	217,756	$	—	$	411,141
Private label mortgage-backed security		—		—		2,127		2,127
Mortgage-backed securities - residential		—		171,873		—		171,873
Collateralized mortgage obligations		—		21,368		—		21,368
Corporate bonds		—		10,001		—		10,001
Trust preferred security		—		—		3,855		3,855
Total available-for-sale debt securities	$	193,385	$	420,998	$	5,982	$	620,365

Equity securities with readily determinable fair value:
Freddie Mac preferred stock	$	—	$	111	$	—	$	111
Total equity securities with readily determinable fair value	$	—	$	111	$	—	$	111

Mortgage loans held for sale	$	—	$	1,302	$	—	$	1,302
Consumer loans held for sale		—		—		4,706		4,706
Consumer loans held for investment		—		—		2		2
Rate lock commitments		—		2		—		2
Interest rate swap agreements		—		8,127		—		8,127

Financial liabilities:
Mandatory forward contracts	$	—	$	67	$	—	$	67
Interest rate swap agreements		—		8,127		—		8,127

Provisions for collateral dependent impaired loans




Years Ended December 31, (in thousands)	2023		2022		2021

Provision on collateral-dependent loans	$	(4)	$	7	$	960

Carrying amount and estimated fair values of financial instruments

Fair Value Measurements at

December 31, 2023:

Total

Carrying

Fair

(in thousands)

Value

Level 1

Level 2

Level 3

Value

Assets:

Cash and cash equivalents

$

316,567

$

316,567

$

—

$

—

$

316,567

Available-for-sale debt securities

591,313

177,784

407,638

5,891

591,313

Held-to-maturity debt securities

76,387

—

76,167

—

76,167

Equity securities with readily determinable fair values

174

—

174

—

174

Mortgage loans held for sale, at fair value

3,227

—

3,227

—

3,227

Consumer loans held for sale, at fair value

7,914

—

7,914

Consumer loans held for sale, at the lower of cost or fair value

16,094

—

16,094

Loans, net

5,157,731

—

4,874,974

Federal Home Loan Bank stock

23,770

—

NA

Accrued interest receivable

18,447

—

4,097

14,350

18,447

Mortgage servicing rights

7,411

—

16,054

—

16,054

Rate lock commitments

243

—

243

—

243

Interest rate swap agreements

8,933

—

8,933

—

8,933

Liabilities:

Noninterest-bearing deposits

$

1,676,998

$

—

$

1,676,998

$

—

$

1,676,998

Transaction deposits

2,924,114

—

2,924,114

—

2,924,114

Time deposits

452,051

—

446,218

—

446,218

Securities sold under agreements to repurchase and other short-term borrowings

99,530

—

99,530

—

99,530

Federal Home Loan Bank advances

380,000

—

382,062

—

382,062

Accrued interest payable

4,073

—

4,073

—

4,073

Rate lock commitments

243

—

243

—

243

Mandatory forward contracts

61

—

61

—

61

Interest rate swap agreements

8,933

—

8,933

—

8,933

NA - Not applicable


			Fair Value Measurements at
			December 31, 2022:
									Total
	Carrying								Fair
(in thousands)	Value		Level 1		Level 2		Level 3		Value

Assets:
Cash and cash equivalents	$	313,689	$	313,689	$	—	$	—	$	313,689
Available-for-sale debt securities		620,365		193,385		420,998		5,982		620,365
Held-to-maturity debt securities		87,386		—		87,357		—		87,357
Equity securities with readily determinable fair values		111		—		111		—		111
Mortgage loans held for sale, at fair value		1,302		—		1,302		—		1,302
Consumer loans held for sale, at fair value		4,706		—		—		4,706		4,706
Consumer loans held for sale, at the lower of cost or fair value		13,169		—		—		13,169		13,169
Loans, net		4,445,389		—		—		4,276,423		4,276,423
Federal Home Loan Bank stock		9,146		—		—		—		NA
Accrued interest receivable		13,572		—		2,462		11,110		13,572
Mortgage servicing rights		8,769		—		17,592		—		17,592
Rate lock commitments		2		—		2		—		2
Interest rate swap agreements		8,127		—		8,127		—		8,127

Liabilities:
Noninterest-bearing deposits	$	1,908,768	$	—	$	1,908,768	$	—	$	1,908,768
Transaction deposits		2,398,853		—		2,398,853		—		2,398,853
Time deposits		230,224		—		223,912		—		223,912
Securities sold under agreements to repurchase and other short-term borrowings		216,956		—		216,956		—		216,956
Federal Home Loan Bank advances		95,000		—		93,044		—		93,044
Accrued interest payable		239		—		239		—		239
Mandatory forward contracts		67		—		67		—		67
Interest rate swap agreements		8,127		—		8,127		—		8,127

NA - Not applicable

Fair Value Disclosures

Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs




Years Ended December 31, (in thousands)	2023		2022		2021

Balance, beginning of period	$	2,127	$	2,731	$	2,957
Total gains or losses included in earnings:
Net change in unrealized gain (loss)		46		(29)		63
Principal paydowns		(400)		(575)		(289)
Balance, end of period	$	1,773	$	2,127	$	2,731

Fair Value Disclosures

Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs




Years Ended December 31, (in thousands)	2023		2022		2021

Balance, beginning of period	$	3,855	$	3,847	$	3,800
Total gains or losses included in earnings:
Discount accretion		59		57		53
Net change in unrealized gain (loss)		204		(49)		(6)
Balance, end of period	$	4,118	$	3,855	$	3,847

Fair Value Disclosures

Schedule of gains and losses from changes in fair value included in earnings




Years Ended December 31, (in thousands)	2023		2022		2021

Interest income	$	282	$	519	$	1,081
Change in fair value		22		(688)		(1,361)
Total included in earnings	$	304	$	(169)	$	(280)

Fair Value Disclosures

Schedule of gains and losses from changes in fair value included in earnings




Years Ended December 31, (in thousands)	2023		2022		2021

Interest income	$	4,242	$	9,970	$	7,708
Change in fair value		(22)		(142)		100
Total included in earnings	$	4,220	$	9,828	$	7,808

Fair Value Disclosures