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Fair Value of Assets and Liabilities (Tables) | 9 Months Ended
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Sep. 30, 2022
Fair Value Disclosures [Abstract] |
Assets and Liabilities Measured at Fair Value on Recurring Basis | 32 The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall as of September 30, 2022 and December 31, 2021 (in thousands):
|  | Fair Value Measurements Using |
|  |  |  |  |  | Quoted Prices in Active Markets for Identical Assets |  |  | Significant Other Observable Inputs |  |  | Significant Unobservable Inputs |
|  | Fair Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government corporations and agencies |  | $ | 222,731 |  |  | $ | — |  |  | $ | 222,731 |  |  | $ | — |
Obligations of states and political subdivisions |  |  | 286,108 |  |  |  | — |  |  |  | 286,108 |  |  |  | — |
Mortgage-backed securities |  |  | 640,394 |  |  |  | — |  |  |  | 640,394 |  |  |  | — |
Other securities |  |  | 81,555 |  |  |  | — |  |  |  | 81,555 |  |  |  | — |
Total available-for-sale securities |  |  | 1,230,788 |  |  |  | — |  |  |  | 1,230,788 |  |  |  | — |
Equity securities |  |  | 317 |  |  |  | 317 |  |  |  | — |  |  |  | — |
Derivative assets: interest rate swaps |  |  | 4,501 |  |  |  | — |  |  |  | 4,501 |  |  |  | — |
Total assets |  | $ | 1,235,606 |  |  | $ | 317 |  |  | $ | 1,235,289 |  |  | $ | — |
Derivative liabilities: interest rate swaps |  | $ | 3,296 |  |  | $ | — |  |  | $ | 3,296 |  |  | $ | — |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities and obligations of U.S. government corporations and agencies |  | $ | 203,815 |  |  | $ | — |  |  | $ | 203,815 |  |  | $ | — |
Obligations of states and political subdivisions |  |  | 395,457 |  |  |  | — |  |  |  | 395,358 |  |  |  | 99 |
Mortgage-backed securities |  |  | 791,038 |  |  |  | — |  |  |  | 791,038 |  |  |  | — |
Other securities |  |  | 31,112 |  |  |  | — |  |  |  | 31,112 |  |  |  | — |
Total available-for-sale securities |  |  | 1,421,422 |  |  |  | — |  |  |  | 1,421,323 |  |  |  | 99 |
Equity securities |  |  | 397 |  |  |  | 397 |  |  |  | — |  |  |  | — |
Derivative assets: interest rate swaps |  |  | 809 |  |  |  | — |  |  |  | 809 |  |  |  | — |
Total assets |  | $ | 1,422,628 |  |  | $ | 397 |  |  | $ | 1,422,132 |  |  | $ | 99 |
Derivative liabilities: interest rate swaps |  | $ | 1,476 |  |  | $ | — |  |  | $ | 1,476 |  |  | $ | — |
Fair Value of Assets Measured on a Recurring Basis Using Significant Unobservable Inputs | The change in fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2022 and 2021 is summarized as follows (in thousands):
|  | Obligation of State and Political Subdivisions |
|  | Three months ended |  |  | Nine months ended |
|  | September 30, 2022 |  |  | September 30, 2021 |  |  | September 30, 2022 |  |  | September 30, 2021 |
Beginning balance |  | $ | — |  |  | $ | 615 |  |  | $ | 99 |  |  | $ | 794 |
Transfers into Level 3 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Transfers out of Level 3 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total gains or losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Included in net income |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | 3 |
Included in other comprehensive income (loss) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Purchases, issuances, sales and settlements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Purchases |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Issuances |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Sales |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Settlements |  |  | — |  |  |  | — |  |  |  | (99 | ) |  |  | (181 | )
Ending balance |  | $ | — |  |  | $ | 616 |  |  | $ | — |  |  | $ | 616 |
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets and liabilities still held at the reporting date |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Assets Measured at Fair Value on a Nonrecurring Basis | The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2022 and December 31, 2021 (in thousands):
|  | Fair Value Measurements Using |
|  |  |  |  |  | Quoted Prices in Active Markets for Identical Assets |  |  | Significant Other Observable Inputs |  |  | Significant Unobservable Inputs |
|  | Fair Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Collateral dependent loans |  | $ | 2,678 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,678 |
Foreclosed assets held for sale |  |  | 213 |  |  |  | — |  |  |  | — |  |  |  | 213 |
Mortgage servicing rights |  |  | 599 |  |  |  | — |  |  |  | — |  |  |  | 599 |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Collateral dependent loans |  | $ | 6,750 |  |  | $ | — |  |  | $ | — |  |  | $ | 6,750 |
Foreclosed assets held for sale |  |  | 2,068 |  |  |  | — |  |  |  | — |  |  |  | 2,068 |
Mortgage servicing rights |  |  | 420 |  |  |  | — |  |  |  | — |  |  |  | 420 |
Significant Unobservable Inputs Used in Valuation of Level 3 Fair Value Measurements | The following table presents quantitative information about unobservable inputs used in Level 3 fair value measurements other than goodwill at September 30, 2022 and December 31, 2021.
September 30, 2022 |  | Fair Value |  |  | Valuation Technique |  | Unobservable Inputs |  | Range |  | Weighted Average |
Collateral dependent loans |  | $ | 2,678 |  |  | Third party valuations |  | Discount to reflect realizable value |  | 0% - 40% |  | 20% |
Foreclosed assets held for sale |  |  | 213 |  |  | Third party valuations |  | Discount to reflect realizable value less estimated selling costs |  | 0% - 40% |  | 35% |
Mortgage servicing rights |  |  | 599 |  |  | Third party valuations |  | PSA standard prepayment model rate |  | 131 - 438 |  |  | 142 |
December 31, 2021 |  | Fair Value |  |  | Valuation Technique |  | Unobservable Inputs |  | Range |  | Weighted Average |
Collateral dependent loans |  | $ | 6,750 |  |  | Third party valuations |  | Discount to reflect realizable value |  | 0% - 40% |  | 20% |
Foreclosed assets held for sale |  |  | 2,068 |  |  | Third party valuations |  | Discount to reflect realizable value less estimated selling costs |  | 0% - 40% |  | 35% |
Mortgage servicing rights |  |  | 420 |  |  | Third party valuations |  | PSA standard prepayment model rate |  | 205 - 513 |  |  | 273 |
Summary of Estimated Fair Values of Company Financial Instruments | The following tables present estimated fair values of the Company’s financial instruments at September 30, 2022 and December 31, 2021 in accordance with ASC 825 (in thousands):
|  | Carrying Amount |  |  | Fair Value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 153,559 |  |  | $ | 153,559 |  |  | $ | 153,559 |  |  | $ | — |  |  | $ | — |
Federal funds sold |  |  | 7,395 |  |  |  | 7,395 |  |  |  | 7,395 |  |  |  | — |  |  |  | — |
Certificates of deposit investments |  |  | 1,470 |  |  |  | 1,470 |  |  |  | — |  |  |  | 1,470 |  |  |  | — |
Available-for-sale securities |  |  | 1,230,788 |  |  |  | 1,230,788 |  |  |  | — |  |  |  | 1,230,788 |  |  |  | — |
Held-to-maturity securities |  |  | 2,930 |  |  |  | 2,930 |  |  |  | 2,930 |  |  |  | — |  |  |  | — |
Equity securities |  |  | 317 |  |  |  | 317 |  |  |  | 317 |  |  |  | — |  |  |  | — |
Loans held for sale |  |  | 467 |  |  |  | 467 |  |  |  | — |  |  |  | 467 |  |  |  | — |
Loans net of allowance for credit losses |  |  | 4,661,046 |  |  |  | 4,459,663 |  |  |  | — |  |  |  | — |  |  |  | 4,459,663 |
Interest receivable |  |  | 25,975 |  |  |  | 25,975 |  |  |  | — |  |  |  | 25,975 |  |  |  | — |
Federal Reserve Bank stock |  |  | 17,050 |  |  |  | 17,050 |  |  |  | — |  |  |  | 17,050 |  |  |  | — |
Federal Home Loan Bank stock |  |  | 5,843 |  |  |  | 5,843 |  |  |  | — |  |  |  | 5,843 |  |  |  | — |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  | $ | 5,483,198 |  |  | $ | 5,483,500 |  |  | $ | — |  |  | $ | 4,799,644 |  |  | $ | 683,856 |
Other borrowings |  |  | 5,000 |  |  |  | 5,000 |  |  |  | 5,000 |  |  |  | — |  |  |  | — |
Securities sold under agreements to repurchase |  |  | 220,707 |  |  |  | 220,538 |  |  |  | — |  |  |  | 220,538 |  |  |  | — |
Interest payable |  |  | 3,007 |  |  |  | 3,007 |  |  |  | — |  |  |  | 3,007 |  |  |  | — |
Federal Home Loan Bank borrowings |  |  | 176,232 |  |  |  | 171,008 |  |  |  | — |  |  |  | 171,008 |  |  |  | — |
Subordinated debt, net |  |  | 94,515 |  |  |  | 87,977 |  |  |  | — |  |  |  | 87,977 |  |  |  |  |
Junior subordinated debentures, net |  |  | 19,322 |  |  |  | 17,134 |  |  |  | — |  |  |  | 17,134 |  |  |  | — |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 167,242 |  |  | $ | 167,242 |  |  | $ | 167,242 |  |  | $ | — |  |  | $ | — |
Federal funds sold |  |  | 1,360 |  |  |  | 1,360 |  |  |  | 1,360 |  |  |  | — |  |  |  | — |
Certificates of deposit investments |  |  | 2,450 |  |  |  | 2,450 |  |  |  | — |  |  |  | 2,450 |  |  |  | — |
Available-for-sale securities |  |  | 1,421,422 |  |  |  | 1,421,422 |  |  |  | — |  |  |  | 1,421,323 |  |  |  | 99 |
Held-to-maturity securities |  |  | 7,030 |  |  |  | 7,034 |  |  |  | 2,029 |  |  |  | 5,005 |  |  |  | — |
Equity securities |  |  | 397 |  |  |  | 397 |  |  |  | 397 |  |  |  | — |  |  |  | — |
Loans held for sale |  |  | 2,748 |  |  |  | 2,748 |  |  |  | — |  |  |  | 2,748 |  |  |  | — |
Loans net of allowance for credit losses |  |  | 3,938,120 |  |  |  | 3,889,870 |  |  |  | — |  |  |  | — |  |  |  | 3,889,870 |
Interest receivable |  |  | 19,868 |  |  |  | 19,868 |  |  |  | — |  |  |  | 19,868 |  |  |  | — |
Federal Reserve Bank stock |  |  | 13,845 |  |  |  | 13,845 |  |  |  | — |  |  |  | 13,845 |  |  |  | — |
Federal Home Loan Bank stock |  |  | 6,484 |  |  |  | 6,484 |  |  |  | — |  |  |  | 6,484 |  |  |  | — |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  | $ | 4,956,486 |  |  | $ | 4,956,738 |  |  | $ | — |  |  | $ | 4,394,434 |  |  | $ | 562,304 |
Securities sold under agreements to repurchase |  |  | 146,268 |  |  |  | 146,274 |  |  |  | — |  |  |  | 146,274 |  |  |  | — |
Interest payable |  |  | 1,346 |  |  |  | 1,346 |  |  |  | — |  |  |  | 1,346 |  |  |  | — |
Federal Home Loan Bank borrowings |  |  | 86,446 |  |  |  | 86,248 |  |  |  | — |  |  |  | 86,248 |  |  |  | — |
Subordinated debt, net |  |  | 94,400 |  |  |  | 94,400 |  |  |  | — |  |  |  | 94,400 |  |  |  | — |
Junior subordinated debentures, net |  |  | 19,195 |  |  |  | 15,012 |  |  |  | — |  |  |  | 15,012 |  |  |  | — |

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- Definition Tabular disclosure of assets measured at fair value measured on a recurring or nonrecurring basis. Includes, but is not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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- 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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