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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Assets Measured at Fair Value on a Recurring and Non-Recurring Basis

The following tables present for each of the fair-value hierarchy levels the Company’s assets that are measured at fair value on a recurring and nonrecurring basis as of the dates indicated (in thousands).

		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Total
June 30, 2024
Measured on a recurring basis:
Securities available for sale:
U.S. Government agency and government sponsored enterprises		$	—			$	21,792			$	—			$	21,792
Mortgage-backed securities			—				847,830				—				847,830
Other assets:
Other debt securities			—				2,013				—				—
Hedging derivative instruments			—				6,560				—				6,560
Fair value adjusted through comprehensive income		$	—			$	878,195			$	—			$	876,182
Other assets:
Derivative instruments – interest rate swaps			—				45,274				—				45,274
Derivative instruments – mortgage banking			—				154				—				154
Other liabilities:
Derivative instruments – interest rate swaps			—				(45,275	)			—				(45,275	)
Derivative instruments – mortgage banking			—				(9	)			—				(9	)
Fair value adjusted through net income		$	—			$	144			$	—			$	144
Measured on a nonrecurring basis:
Loans:
Loans held for sale		$	—			$	2,099			$	—			$	2,099
Collateral dependent loans			—				—				29,954				29,954
Other assets:
Long-lived assets held for sale			—				—				629				629
Loan servicing rights			—				—				1,437				1,437
Other real estate owned			—				—				63				63
Total		$	—			$	2,099			$	32,083			$	34,182

There were no transfers between Levels 1 and 2 during the six months ended June 30, 2024. There were no liabilities measured at fair value on a nonrecurring basis during the six months ended June 30, 2024.

		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Total
December 31, 2023
Measured on a recurring basis:
Securities available for sale:
U.S. Government agencies and government sponsored enterprises		$	—			$	21,811			$	—			$	21,811
Mortgage-backed securities			—				865,919				—				865,919
Other assets:
Hedging derivative instruments			—				5,939				—				5,939
Fair value adjusted through comprehensive income		$	—			$	893,669			$	—			$	893,669
Other assets:
Derivative instruments – interest rate products		$	—			$	37,517			$	—			$	37,517
Derivative instruments – mortgage banking			—				50				—				50
Other liabilities:
Derivative instruments – interest rate products			—				(37,519	)			—				(37,519	)
Derivative instruments – mortgage banking			—				(2	)			—				(2	)
Fair value adjusted through net income		$	—			$	46			$	—			$	46
Measured on a nonrecurring basis:
Loans:
Loans held for sale		$	—			$	1,370			$	—			$	1,370
Collateral dependent loans			—				—				37,516				37,516
Other assets:
Long-lived assets held for sale			—				—				629				629
Loan servicing rights			—				—				1,382				1,382
Other real estate owned			—				—				142				142
Total		$	—			$	1,370			$	39,669			$	41,039

Additional Quantitative Information about Assets Measured at Fair Value on Recurring and Non-Recurring Basis

The following table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value as of June 30, 2024 (dollars in thousands).

Asset		Fair Value				Valuation Technique		Unobservable Input		Unobservable Input Value or Range
Collateral dependent loans		$	29,954			Appraisal of collateral (1)		Appraisal adjustments (2)		44.2%(3) / 0 - 77.36%
Loan servicing rights		$	1,437			Discounted cash flow		Discount rate		10.4% (3)
								Constant prepayment rate		12.3% (3)
Long-lived assets held for sale		$	629			Appraisal of collateral (1)		Appraisal adjustments (2)		27.1%
Other real estate owned		$	63			Appraisal of collateral (1)		Appraisal adjustments (2)		47.7%

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.

(3) Weighted averages.

Carrying Amount, Estimated Fair Value, and Placement in Fair Value Hierarchy of Financial Instruments

The following table presents (in thousands) the carrying amount, estimated fair value, and placement in the fair value measurement hierarchy of the Company’s financial instruments as of the dates indicated.

		Level in		June 30, 2024								December 31, 2023
		Fair Value						Estimated								Estimated
		Measurement		Carrying				Fair				Carrying				Fair
		Hierarchy		Amount				Value				Amount				Value
Financial assets:
Cash and cash equivalents		Level 1		$	146,347			$	146,347			$	124,442			$	124,442
Securities available for sale		Level 2			871,635				871,635				887,730				887,730
Securities held to maturity, net		Level 2			128,271				115,849				148,156				137,030
Loans held for sale		Level 2			2,099				2,099				1,370				1,370
Loans		Level 2			4,387,562				4,186,818				4,373,541				4,143,918
Loans (1)		Level 3			29,954				29,954				37,516				37,516
Long-lived assets held for sale		Level 3			629				629				629				629
Accrued interest receivable		Level 1			24,494				24,494				24,481				24,481
Derivative instruments – cash flow hedges		Level 2			6,560				6,560				5,939				5,939
Derivative instruments – interest rate products		Level 2			45,274				45,274				37,517				37,517
Derivative instruments – mortgage banking		Level 2			154				154				50				50
FHLB and FRB stock		Level 2			19,085				19,085				17,406				17,406
Financial liabilities:
Non-maturity deposits		Level 1			3,658,182				3,658,182				3,808,216				3,808,216
Time deposits		Level 2			1,475,139				1,467,809				1,404,696				1,398,352
Short-term borrowings		Level 1			202,000				202,000				185,000				185,000
Long-term borrowings		Level 2			124,687				126,764				124,532				128,363
Accrued interest payable		Level 1			27,444				27,444				19,412				19,412
Derivative instruments – interest rate products		Level 2			45,275				45,275				37,519				37,519
Derivative instruments – mortgage banking		Level 2			9				9				2				2

(1) Comprised of collateral dependent loans.

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 103
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482078/820-10-55-103

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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://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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