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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Assets and Liabilities Recorded on a Recurring Basis

The following tables summarize financial assets and financial liabilities recorded at fair value on a recurring basis at December 31, 2024, and December 31, 2023, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value. There were no changes in the valuation techniques during 2024 or 2023.

			December 31, 2024
(Dollars in thousands)			Level 1						Level 2						Level 3						Total
State and municipal securities			$	—					$	221,222					$	34,754					$	255,976
Corporate bonds			—						77,236						1,000						78,236
U.S. government agency securities			—						13,805						—						13,805
Commercial mortgage-backed securities			—						44,284						—						44,284
Residential mortgage-backed securities			—						540,834						—						540,834
Commercial collateralized mortgage obligations			—						28,566						—						28,566
Residential collateralized mortgage obligations			—						140,827						—						140,827
Securities available for sale			—						1,066,774						35,754						1,102,528
Securities carried at fair value through income			—						—						6,512						6,512
Loans held for sale			—						10,494						—						10,494
Rabbi Trust assets			509						—						—						509
Other assets - derivatives			—						15,595						—						15,595
Total recurring fair value measurements - assets			$	509					$	1,092,863					$	42,266					$	1,135,638
Other liabilities - derivatives			—						(14,959)						—						(14,959)
Total recurring fair value measurements - liabilities			$	—					$	(14,959)					$	—					$	(14,959)

			December 31, 2023
(Dollars in thousands)			Level 1						Level 2						Level 3						Total
State and municipal securities			$	—					$	232,679					$	49,447					$	282,126
Corporate bonds			—						82,635						1,000						83,635
U.S. treasury securities			55,480						—						—						55,480
U.S. government agency securities			—						24,160						—						24,160
Commercial mortgage-backed securities			—						93,396						—						93,396
Residential mortgage-backed securities			—						506,502						—						506,502
Commercial collateralized mortgage obligations			—						35,183						—						35,183
Residential collateralized mortgage obligations			—						130,144						—						130,144
Asset-backed securities			—						43,005						—						43,005
Securities available for sale			55,480						1,147,704						50,447						1,253,631
Securities carried at fair value through income			—						—						6,808						6,808
Loans held for sale			—						16,852						—						16,852
Mortgage servicing rights			—						—						15,637						15,637
Other assets - derivatives			—						20,487						—						20,487
Total recurring fair value measurements - assets			$	55,480					$	1,185,043					$	72,892					$	1,313,415
Other liabilities - derivatives			—						(18,300)						—						(18,300)
Total recurring fair value measurements - liabilities			$	—					$	(18,300)					$	—					$	(18,300)

Schedule of Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2024 and 2023, are summarized as follows:

(Dollars in thousands)									MSR Asset						Securities Available for Sale						Securities at Fair Value Through Income
Balance at January 1, 2024									$	15,637					$	50,447					$	6,808
Gain (loss) recognized in earnings:
Mortgage banking revenue									450						—						—
Other noninterest income									—						—						3
Gain recognized in AOCI									—						272						—
Purchases, issuances, sales and settlements:
Purchases									—						5,396						—
Sales									(16,087)						—						—
Settlements									—						(20,361)						(299)
Balance at December 31, 2024									$	—					$	35,754					$	6,512

(Dollars in thousands)									MSR Asset						Securities Available for Sale						Securities at Fair Value Through Income
Balance at January 1, 2023									$	20,824					$	55,769					$	6,368
Gain (loss) recognized in earnings:
Mortgage banking revenue(1)									(4,089)						—						—
Other noninterest income									—						—						725
Loss recognized in AOCI									—						(193)						—
Purchases, issuances, sales and settlements:
Originations									708						—						—
Sales									(1,806)						—						—
Settlements									—						(5,129)						(285)
Balance at December 31, 2023									$	15,637					$	50,447					$	6,808

___________________________

(1)Total mortgage banking revenue includes changes in fair value due to market changes and run-off.

Schedule of Significant Assumptions Used to Value Mortgage Servicing Rights

The significant assumptions used to value MSR assets were as follows:

									December 31, 2023
															Range						Weighted Average(1)
Prepayment speeds															7.49% - 8.50%						8.10		%
Discount rates															10.25% - 12.75%						10.31		%

__________________________

(1)The weighted average was calculated with reference to the principal balance of the underlying mortgages.

Schedule of Difference Between Fair Value and the Unpaid Principal Balance for Financial Instruments for which the Fair Value Option has been Elected and Classified in Income Statement

The following tables summarize the difference between the fair value and the unpaid principal balance, amortized cost or contributions, respectively, for financial instruments for which the fair value option has been elected:

			December 31, 2024
(Dollars in thousands)			Aggregate Fair Value						Principal Balance/Amortized Cost/Contributions						Difference
Loans held for sale(1)			$	10,494					$	10,228					$	266
Securities carried at fair value through income			6,512						6,515						(3)
Rabbi Trust assets			509						499						10
Total			$	17,515					$	17,242					$	273

____________________________

(1)There were no loans held for sale that were designated as nonaccrual or 90 days or more past due at December 31, 2024.

			December 31, 2023
(Dollars in thousands)			Aggregate Fair Value						Principal Balance/Amortized Cost/Contributions						Difference
Loans held for sale(1)			$	16,852					$	16,475					$	377
Securities carried at fair value through income			6,808						6,815						(7)
Total			$	23,660					$	23,290					$	370

____________________________

(1)There were no of loans held for sale that were designated as nonaccrual or 90 days or more past due at December 31, 2023.

Changes in the fair value of assets for which the Company elected the fair value option are classified in the Consolidated Statements of Income line items reflected in the following table:

(Dollars in thousands)															Years Ended December 31,
Changes in fair value included in noninterest income:																											2024						2023						2022
Mortgage banking revenue (loans held for sale)(1)																											$	(111)					$	(66)					$	(517)
Other income:
Securities carried at fair value through income																											4						726						(854)
Total fair value option impact on noninterest income																											$	(107)					$	660					$	(1,371)
Changes in fair value included in noninterest expense:
Rabbi Trust assets																											$	6					$	—					$	—
Deferred compensation liabilities related to Rabbi Trust assets(2)																											(6)						—						—
Total fair value option impact on noninterest expense																											$	—					$	—					$	—

____________________________

(1)For the years ended December 31, 2023 and 2022, the fair value option impact on noninterest income is offset by the derivative gain/loss recognized in noninterest income. Please see Note 9 — Mortgage Banking for more detail.

(2)Please see the Rabbi Trust section below for more detail on its impact on the Company’s net income.

Schedule of Carrying Value and Estimated Fair Value of Financial Instruments Not Measured at Fair Value

The carrying value and estimated fair values of financial instruments not recorded at fair value are as follows:

(Dollars in thousands)			December 31, 2024												December 31, 2023
Financial assets: Level 1 inputs:			Carrying Value						Estimated Fair Value						Carrying Value						Estimated Fair Value
Cash and cash equivalents			$	470,249					$	470,249					$	280,441					$	280,441
Level 2 inputs:
Non-marketable equity securities held in other financial institutions			71,643						71,643						55,190						55,190
Accrued interest and loan fees receivable			38,901						38,901						41,688						41,688
Level 3 inputs:
Securities held to maturity			11,095						10,456						11,615						10,848
LHFI, net			7,482,653						7,209,866						7,564,076						7,177,720
Financial liabilities:
Level 2 inputs:
Deposits			8,223,120						8,217,564						8,251,125						8,240,520
FHLB advances, repurchase agreements and other borrowings			12,460						12,203						83,598						83,187
Subordinated indebtedness			159,943						159,928						194,279						186,251
Accrued interest payable			8,033						8,033						12,272						12,272

X

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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