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Fair Value (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Summary of Financial Assets Measured at Fair Value on Recurring Basis

The following tables present the balances of financial assets measured at fair value on a recurring basis as of the dates stated.

		March 31, 2024
(Dollars in thousands)		Total				Level 1				Level 2				Level 3
Securities available for sale
Mortgage backed securities		$	171,222			$	—			$	169,222			$	2,000
U.S. Treasury and agencies			68,134				—				68,134				—
State and municipals			42,926				—				42,926				—
Corporate bonds			32,112				—				31,362				750
Total securities available for sale		$	314,394			$	—			$	311,644			$	2,750
Other assets
Mortgage servicing rights assets		$	27,843			$	—			$	—			$	27,843
Rabbi trust assets			564				564				—				—
Mortgage derivative asset			242				—				242				—
Interest rate swap asset			105				—				105				—
Other liabilities
Mortgage derivative liability		$	5			$	—			$	5			$	—
Interest rate swap liability			105				—				105				—

		December 31, 2023
(Dollars in thousands)		Total				Level 1				Level 2				Level 3
Securities available for sale
Mortgage backed securities		$	176,970			$	—			$	176,970			$	—
U.S. Treasury and agencies			68,871				—				68,871				—
State and municipals			43,325				—				43,325				—
Corporate bonds			31,915				—				31,165				750
Total securities available for sale		$	321,081			$	—			$	320,331			$	750
Other assets
Mortgage servicing rights assets		$	27,114			$	—			$	—			$	27,114
Rabbi trust assets			531				531				—				—
Mortgage derivative asset			335				—				335				—
Interest rate swap asset			71				—				71				—
Other liabilities
Mortgage derivative liability		$	140			$	—			$	140			$	—
Interest rate swap liability			71				—				71				—

The following table presents the change in corporate bonds and mortgage backed securities using Level 3 inputs for the periods stated.

(Dollars in thousands)		Corporate Bonds				Mortgage Backed Securities
Balance as of December 31, 2023		$	750			$	—
Transfers from Level 2 to Level 3			—				2,000
Balance as of March 31, 2024		$	750			$	2,000

Summary of changes in corporate bonds and mortgage backed securities using level 3 inputs

The following table presents the change in corporate bonds and mortgage backed securities using Level 3 inputs for the periods stated.

(Dollars in thousands)		Corporate Bonds				Mortgage Backed Securities
Balance as of December 31, 2023		$	750			$	—
Transfers from Level 2 to Level 3			—				2,000
Balance as of March 31, 2024		$	750			$	2,000

Summary of Change in Mortgage Servicing Right ("MSR") Assets

The following table presents the change in mortgage servicing right ("MSR") assets as of the dates and for the periods stated.

(Dollars in thousands)		MSR Assets
Balance as of December 31, 2023		$	27,114
Additions			8
Fair value adjustments			721
Balance as of March 31, 2024		$	27,843

Summary of Assets Measured at Fair Value

The following tables summarize assets that were measured at fair value on a nonrecurring basis as of the dates stated.

		March 31, 2024
(Dollars in thousands)		Total				Level 1				Level 2				Level 3
Other equity investments		$	12,863			$	—			$	12,863			$	—
Collateral-dependent loans			45,423				—				—				45,423
Loans held for sale			34,902				—				34,902				—

		December 31, 2023
(Dollars in thousands)		Total				Level 1				Level 2				Level 3
Other equity investments		$	12,905			$	—			$	12,905			$	—
Collateral-dependent loans			56,068				—				—				56,068
Loans held for sale			46,337				—				46,337				—

Summary of Quantitative Information about Level 3 Fair Value Measurements of Assets Measured on a Nonrecurring Basis

The following tables present quantitative information about Level 3 fair value measurements of assets measured on a nonrecurring basis as of the dates stated.

(Dollars in thousands)		Balance as of March 31, 2024				Unobservable Input		Range
Collateral-dependent loans
Discounted appraised value technique		$	45,423			Selling Costs		7% - 15%

(Dollars in thousands)		Balance as of December 31, 2023				Unobservable Input		Range
Collateral-dependent loans
Discounted appraised value technique		$	56,068			Selling Costs		7% - 15%

Summary of Estimated Fair Values and Related Carrying Amounts and Valuation Level of Financial Instruments

The following tables present the estimated fair values, related carrying amounts, and valuation level of the financial instruments as of the dates stated.

		March 31, 2024
										Fair Value Measurements
(Dollars in thousands)		Carrying Value				Fair Value				Level 1				Level 2				Level 3
Financial Assets
Cash and due from banks		$	117,464			$	117,464			$	117,464			$	—			$	—
Restricted cash			10,734				10,734				10,734				—				—
Federal funds sold			6,849				6,849				6,849				—				—
Securities available for sale			314,394				314,394				—				311,644				2,750
Restricted equity investments			22,071				22,071				—				22,071				—
Other equity investments			12,863				12,863				—				12,863				—
Other investments			26,586				26,586				—				—				26,586
Loans held for investment, net			2,359,064				2,247,061				—				—				2,247,061
Accrued interest receivable			14,696				14,696				—				14,696				—
Bank owned life insurance			48,790				48,790				—				48,790				—
MSR assets			27,843				27,843				—				—				27,843
Financial Liabilities
Noninterest-bearing demand		$	496,375			$	496,375			$	496,375			$	—			$	—
Interest-bearing demand and money market			898,870				898,870				—				898,870				—
Savings			114,281				114,281				—				114,281				—
Time			956,250				952,723				—				—				952,723
FHLB borrowings			280,000				284,026				—				284,026				—
FRB borrowings			65,000				65,000				—				65,000				—
Subordinated notes, net			39,838				37,999				—				—				37,999

		December 31, 2023
										Fair Value Measurements
(Dollars in thousands)		Carrying Value				Fair Value				Level 1				Level 2				Level 3
Financial Assets
Cash and due from banks		$	110,491			$	110,491			$	110,491			$	—			$	—
Restricted cash			10,660				10,660				10,660				—				—
Federal funds sold			4,451				4,451				4,451				—				—
Securities available for sale			321,081				321,081				—				320,331				750
Restricted equity investments			18,621				18,621				—				18,621				—
Other equity investments			12,905				12,905				—				12,905				—
Other investments			29,467				29,467				—				—				29,467
Loans held for investment, net			2,395,054				2,316,113				—				—				2,316,113
Accrued interest receivable			14,968				14,967				—				14,967				—
Bank owned life insurance			48,453				48,453				—				48,453				—
MSR assets			27,114				27,114				—				—				27,114
Financial Liabilities
Noninterest-bearing demand		$	506,248			$	506,248			$	506,248			$	—			$	—
Interest-bearing demand and money market			1,049,536				1,049,536				—				1,049,536				—
Savings			117,923				117,923				—				117,923				—
Time			892,325				892,439				—				—				892,439
FHLB borrowings			210,000				211,799				—				211,799				—
FRB borrowings			65,000				65,000				—				65,000				—
Subordinated notes, net			39,855				37,803				—				—				37,803

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- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique used to measure similar asset in prior period by class of asset or liability on non-recurring basis.

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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.

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Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class 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).

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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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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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Tabular disclosure of activity in the balance of servicing assets subsequently measured at amortized cost. Includes, but is not limited to, beginning and ending balances, additions, disposals, and amortization.

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