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Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. ASC 820, “Fair Value Measurements and Disclosures,” establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:
Level 1    Quoted prices in active exchange markets for identical assets or liabilities.
Level 2    Observable inputs other than Level 1 including quoted prices for similar assets or liabilities, quoted prices in less active markets or other observable inputs that can be corroborated by observable market data; also includes derivative contracts whose value is determined using a pricing model with observable market inputs or inputs that can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency securities, corporate debt securities, and derivative instruments.
Level 3    Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs for single dealer nonbinding quotes not corroborated by observable market data. This category generally includes certain private equity investments, retained interests from securitizations and certain collateralized debt obligations.
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024:
(dollars in thousands)
Quoted Prices (Level 1)
Significant Other Observable Inputs (Level 2)
Significant Other Unobservable Inputs (Level 3)
Total (Fair Value)
March 31, 2025
Assets:        
Investment securities available-for-sale:        
U.S. agency securities— 537,909 — 537,909 
Residential mortgage-backed securities— 617,394 — 617,394 
Commercial mortgage-backed securities
— 49,206 — 49,206 
Municipal bonds— 7,888 — 7,888 
Corporate bonds— 1,840 — 1,840 
Loans held for sale— 15,251 — 15,251 
Interest rate product— 29,165 — 29,165 
Total assets measured at fair value on a recurring basis as of March 31, 2025$— $1,258,653 $— $1,258,653 
Liabilities:
Interest rate product$— $26,447 $— $26,447 
Total liabilities measured at fair value on a recurring basis as of March 31, 2025$— $26,447 $— $26,447 
December 31, 2024
Assets:
Investment securities available-for-sale:
U.S. treasury bonds$— $24,776 $— $24,776 
U.S. agency securities— 558,535 — 558,535 
Residential mortgage-backed securities— 625,316 — 625,316 
Commercial mortgage-backed securities
— 48,945 — 48,945 
Municipal bonds— 8,014 — 8,014 
Corporate bonds— 1,818 — 1,818 
Interest rate product— 31,592 — 31,592 
Total assets measured at fair value on a recurring basis as of December 31, 2024$— $1,298,996 $— $1,298,996 
Liabilities:
Interest rate product$— $29,110 $— $29,110 
Total liabilities measured at fair value on a recurring basis as of December 31, 2024$— $29,110 $— $29,110 
Investment securities available-for-sale: AFS securities are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair value is measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 2 securities includes certain U.S. treasury bonds, U.S. agency debt securities, MBS issued by Government Sponsored Entities and municipal bonds. Securities classified as Level 3 include securities in less liquid markets, for which the carrying amounts approximate the fair value.
Credit risk participation agreements: The Company enters into RPAs with institutional counterparties, under which the Company assumes its pro-rata share of the credit exposure associated with a borrower’s performance related to interest rate derivative contracts. The fair value of RPAs is calculated by determining the total expected asset or liability exposure of the derivatives to the borrowers and applying the borrowers’ credit spread to that exposure. Total expected exposure incorporates both the current and potential future exposure of the derivatives, derived from using observable inputs, such as yield curves and volatilities. Accordingly, RPAs fall within Level 2.
Interest rate derivatives: The Company entered into an interest rate derivative agreement with an institutional counterparty, under which the Company will receive cash if and when market rates exceed the derivatives' strike rate. The fair value of the derivative is calculated by determining the total expected asset or liability exposure of the derivatives. Total expected exposure incorporates both the current and potential future exposure of the derivative, derived from using observable inputs, such as yield curves and volatilities. Accordingly, the derivative falls within Level 2.
Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis
The Company measures certain assets at fair value on a nonrecurring basis and the following is a general description of the methods used to value such assets.
Loans: The fair value of individually assessed loans is estimated using one of several methods, including the collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. Those individually assessed loans not requiring a specific allowance represent loans for which the fair value of expected repayments or collateral exceed the recorded investment in such loans. As of March 31, 2025, substantially all of the Company’s individually evaluated loans were evaluated based upon the fair value of the collateral. In accordance with ASC Topic 820, individually evaluated loans where an allowance is established based on the fair value of collateral, i.e. those that are collateral dependent, require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the loan as nonrecurring Level 3.
Other real estate owned ("OREO"): OREO is initially recorded at fair value less estimated selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral, which the Company classifies as a Level 3 valuation.
Assets measured at fair value on a nonrecurring basis are included in the table below. There were no liabilities measured at fair value on a non-recurring basis as of March 31, 2025 and December 31, 2024.
(dollars in thousands)Quoted Prices 
(Level 1)		Significant Other
Observable Inputs 
(Level 2)		Significant Other 
Unobservable Inputs 
(Level 3)		Total 
(Fair Value)
March 31, 2025        
Individually assessed loans:        
Commercial$— $— $5,092 $5,092 
Income producing - commercial real estate— — 150,988 150,988 
Owner occupied - commercial real estate— — 27,721 27,721 
Construction - commercial and residential— — 298 298 
Other real estate owned— — 2,459 2,459 
Total assets measured at fair value on a nonrecurring basis as of March 31, 2025$— $— $186,558 $186,558 
(dollars in thousands)Quoted Prices 
(Level 1)		Significant Other
Observable Inputs 
(Level 2)		Significant Other 
Unobservable Inputs 
(Level 3)		Total 
(Fair Value)
December 31, 2024        
Individually assessed loans:        
Commercial$— $— $2,551 $2,551 
Income producing - commercial real estate— — 158,956 158,956 
Owner occupied - commercial real estate— — 30,384 30,384 
Construction - commercial and residential— — 303 303 
Other real estate owned— — 2,743 2,743 
Total assets measured at fair value on a nonrecurring basis as of December 31, 2024$— $— $194,937 $194,937 
As shown in the table above, certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets after they are evaluated for impairment. The primary assets accounted for at fair value on a nonrecurring basis are related to collateral-dependent loans that are individually assessed and other real estate owned. For the collateral-dependent loans and other real estate owned, the Company measures the fair value utilizing a market valuation approach, based on an appraisal conducted by an independent, licensed appraiser. Management may discount the value from the appraisal in determining the fair value if, based on its understanding of the market conditions, the collateral had been impaired below the appraised value (Level 3). For loans that are not collateral dependent, the Company uses an income approach, specifically, the discounted cash flow method. The continuing payments are discounted over the expected life at the loan’s original contract rate and include adjustments for risk of default.
Fair Value of Financial Instruments
The Company discloses fair value information about financial instruments for which it is practicable to estimate the value, whether or not such financial instruments are recognized on the balance sheet. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by quoted market price, if one exists.
Quoted market prices, if available, are shown as estimates of fair value. Because no quoted market prices exist for a portion of the Company’s financial instruments, the fair value of such instruments has been derived based on management’s assumptions with respect to future economic conditions, the amount and timing of future cash flows and estimated discount rates. Different assumptions could significantly affect these estimates. Accordingly, the net realizable value could be materially different from the estimates presented below. In addition, the estimates are only indicative of individual financial instrument values, including in certain cases, the Company's estimation of exit pricing, and should not be considered an indication of the fair value of the Company taken as a whole.
The estimated fair values of the Company’s financial instruments as of March 31, 2025 and December 31, 2024 are as follows:
Fair Value Measurements
(dollars in thousands)Carrying
Value		Fair ValueQuoted Prices
(Level 1)		Significant Other 
Observable Inputs
(Level 2)		Significant Other Unobservable 
Inputs (Level 3)
March 31, 2025          
Assets          
Cash and due from banks$12,516 $12,516 $12,516 $— $— 
Federal funds sold2,968 2,968 — 2,968 — 
Interest bearing deposits with other banks661,173 661,173 — 661,173 — 
Investment securities available-for-sale1,214,237 1,214,237 — 1,214,237 — 
Investment securities held-to-maturity924,473 820,530 — 820,530 — 
Federal Reserve and Federal Home Loan Bank stock51,467 N/A— — — 
Loans held for sale
15,251 15,251 — 15,251 — 
Loans held for investment
7,943,306 7,713,251 — — 7,713,251 
Bank owned life insurance320,055 320,055 — 320,055 — 
Annuity investment12,486 12,486 — 12,486 — 
Interest rate product29,165 29,165 — 29,165 — 
Accrued interest receivable48,563 48,563 — 48,563 — 
Liabilities
Noninterest bearing deposits1,607,826 1,607,826 — 1,607,826 — 
Interest bearing deposits4,485,641 4,485,641 — 4,485,641 — 
Time deposits3,183,801 3,193,860 — 3,193,860 — 
Customer repurchase agreements32,357 32,357 — 32,357 — 
Other short-term borrowings
490,000 490,000 — 490,000 — 
Long-term borrowings76,181 83,935 — 83,935 — 
Interest rate product26,447 26,447 — 26,447 — 
Accrued interest payable16,957 16,957 — 16,957 — 
December 31, 2024
Assets
Cash and due from banks$11,882 $11,882 $11,882 $— $— 
Federal funds sold2,581 2,581 — 2,581 — 
Interest bearing deposits with other banks619,017 619,017 — 619,017 — 
Investment securities available-for-sale1,267,404 1,267,404 — 1,267,404 — 
Investment securities held-to-maturity938,647 820,382 — 820,382 — 
Federal Reserve and Federal Home Loan Bank stock51,763 N/A— — — 
Loans held for investment
7,934,888 7,707,424 — — 7,707,424 
Bank owned life insurance115,806 115,806 — 115,806 — 
Annuity investment12,656 12,656 — 12,656 — 
Interest rate product31,592 31,592 — 31,592 — 
Accrued interest receivable49,479 49,479 — 49,479 — 
Liabilities
Noninterest bearing deposits1,544,403 1,544,403 — 1,544,403 — 
Interest bearing deposits4,811,012 4,811,012 — 4,811,012 — 
Time deposits2,775,663 2,785,891 — 2,785,891 — 
Customer repurchase agreements33,157 33,157 — 33,157 — 
Other short-term borrowings
490,000 490,000 — 490,000 — 
Long-term borrowings76,108 82,916 — 82,916 — 
Interest rate product29,110 29,110 — 29,110 — 
Accrued interest payable17,844 17,844 — 17,844 —