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Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

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 March 31, 2023 and December 31, 2022 (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)
March 31, 2023
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	223,545			$	—			$	223,545			$	—
Obligations of states and political subdivisions			284,997				—				284,997				—
Mortgage-backed securities			624,272				—				624,272				—
Other securities			79,884				—				69,874				10,010
Total available-for-sale securities			1,212,698				—				1,202,688				10,010
Equity securities			362				362				—				—
Derivative assets: interest rate swaps			3,353				—				3,353				—
Total assets		$	1,216,413			$	362			$	1,206,041			$	10,010
Derivative liabilities: interest rate swaps		$	2,525			$	—			$	2,525			$	—
December 31, 2022
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	220,527			$	—			$	220,527			$	—
Obligations of states and political subdivisions			287,698				—				287,698				—
Mortgage-backed securities			627,880				—				627,880				—
Other securities			82,880				—				73,630				9,250
Total available-for-sale securities			1,218,985				—				1,209,735				9,250
Equity securities			311				311				—				—
Derivative assets: interest rate swaps			4,253				—				4,253				—
Total assets		$	1,223,549			$	311			$	1,213,988			$	9,250
Derivative liabilities: interest rate swaps		$	3,100			$	—			$	3,100			$	—

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 months ended March 31, 2023 and 2022 is summarized as follows (in thousands):

		Three months ended March 31, 2023
		Obligation of State and Political Subdivisions				Other				Total
Beginning balance		$	—			$	10,000			$	10,000
Transfers into Level 3			—				10				10
Transfers out of Level 3			—				—				—
Total gains or losses:
Included in net income			—				—				—
Included in other comprehensive income (loss)			—				—				—
Purchases, issuances, sales and settlements:
Purchases			—				—				—
Issuances			—				—				—
Sales			—				—				—
Settlements			—				—				—
Ending balance		$	—			$	10,010			$	10,010
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		$	—			$	—			$	—
		Three months ended March 31, 2022
		Obligation of State and Political Subdivisions				Other				Total
Beginning balance		$	99			$	—			$	99
Transfers into Level 3			—				—				—
Transfers out of Level 3			—				—				—
Total gains or losses:
Included in net income			—				—				—
Included in other comprehensive income (loss)			—				—				—
Purchases, issuances, sales and settlements:
Purchases			—				—				—
Issuances			—				—				—
Sales			—				—				—
Settlements			(99	)			—				(99	)
Ending balance		$	—			$	—			$	—
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 March 31, 2023 and December 31, 2022 (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)
March 31, 2023
Collateral dependent loans		$	1,158			$	—			$	—			$	1,158
Foreclosed assets held for sale			151				—				—				151
December 31, 2022
Collateral dependent loans		$	2,548			$	—			$	—			$	2,548
Foreclosed assets held for sale			—				—				—				—

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 March 31, 2023 and December 31, 2022.

March 31, 2023

Fair Value

Valuation Technique

Unobservable Inputs

Range

Weighted Average

Collateral dependent loans

$

1,158

Third party valuations

Discount to reflect realizable value

0% - 40%

20%

Foreclosed assets held for sale

151

Third party valuations

Discount to reflect realizable value less estimated selling costs

0% - 40%

35%

December 31, 2022

Fair Value

Valuation Technique

Unobservable Inputs

Range

Weighted Average

Collateral dependent loans

$

2,548

Third party valuations

Discount to reflect realizable value

0% - 40%

20%

Summary of Estimated Fair Values of Company Financial Instruments

The following tables present estimated fair values of the Company’s financial instruments at March 31, 2023 and December 31, 2022 in accordance with ASC 825 (in thousands):

		Carrying Amount				Fair Value				Level 1				Level 2				Level 3
March 31, 2023
Financial assets
Cash and due from banks		$	161,236			$	161,236			$	161,236			$	—			$	—
Federal funds sold			7,898				7,898				7,898				—				—
Certificates of deposit investments			1,715				1,715				—				1,715				—
Available-for-sale securities			1,212,698				1,212,698				—				1,202,698				10,000
Held-to-maturity securities			2,979				2,979				2,979				—				—
Equity securities			362				362				362				—				—
Loans held for sale			999				999				—				999				—
Loans net of allowance for credit losses			4,701,409				4,497,336				—				—				4,497,336
Interest receivable			28,729				28,729				—				28,729				—
Federal Reserve Bank stock			17,050				17,050				—				17,050				—
Federal Home Loan Bank stock			23,365				23,365				—				23,365				—
Financial liabilities
Deposits		$	5,030,778			$	5,024,415			$	—			$	4,200,115			$	824,300
Securities sold under agreements to repurchase			228,664				228,486				—				228,486				—
Interest payable			4,732				4,732				—				4,732				—
Federal Home Loan Bank borrowings			595,021				591,398				—				591,398				—
Subordinated debt, net			94,593				89,944				—				89,944				—
Junior subordinated debentures, net			19,406				17,186				—				17,186				—
December 31, 2022
Financial assets
Cash and due from banks		$	144,806			$	144,806			$	144,806			$	—			$	—
Federal funds sold			7,627				7,627				7,627				—				—
Certificates of deposit investments			1,470				1,470				—				1,470				—
Available-for-sale securities			1,218,986				1,218,986				—				1,209,736				9,250
Held-to-maturity securities			2,953				2,953				2,953				—				—
Equity securities			311				311				311				—				—
Loans held for sale			338				338				—				338				—
Loans net of allowance for credit losses			4,766,780				4,460,661				—				—				4,460,661
Interest receivable			28,357				28,357				—				28,357				—
Federal Reserve Bank stock			17,050				17,050				—				17,050				—
Federal Home Loan Bank stock			18,440				18,440				—				18,440				—
Financial liabilities
Deposits		$	5,257,001			$	5,257,748			$	—			$	4,550,222			$	707,526
Federal funds purchased			—				—				—				—				—
Securities sold under agreements to repurchase			221,414				221,260				—				221,260				—
Interest payable			3,346				3,346				—				3,346				—
Federal Home Loan Bank borrowings			465,071				459,327				—				459,327				—
Other borrowings			—				—				—				—				—
Subordinated debt, net			94,553				87,977				—				87,977				—
Junior subordinated debentures, net			19,364				17,164				—				17,164				—

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