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Fair Value (Tables) | 9 Months Ended
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Sep. 30, 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.
|  | September 30, 2024 |
(Dollars in thousands) |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Securities available for sale |  |  |  |  |  |  |  |  |  |  |  |
Mortgage backed securities |  | $ | 165,436 |  |  | $ | — |  |  | $ | 165,436 |  |  | $ | — |
U.S. Treasury and agencies |  |  | 71,453 |  |  |  | — |  |  |  | 71,453 |  |  |  | — |
State and municipals |  |  | 44,529 |  |  |  | — |  |  |  | 44,529 |  |  |  | — |
Corporate bonds |  |  | 33,366 |  |  |  | — |  |  |  | 32,616 |  |  |  | 750 |
Total securities available for sale |  | $ | 314,784 |  |  | $ | — |  |  | $ | 314,034 |  |  | $ | 750 |
Other assets |  |  |  |  |  |  |  |  |  |  |  |
Mortgage servicing rights assets |  | $ | 19,502 |  |  | $ | — |  |  | $ | — |  |  | $ | 19,502 |
Rabbi trust assets |  |  | 593 |  |  |  | 593 |  |  |  | — |  |  |  | — |
Mortgage derivative asset |  |  | 212 |  |  |  | — |  |  |  | 212 |  |  |  | — |
Interest rate swap asset |  |  | 69 |  |  |  | — |  |  |  | 69 |  |  |  | — |
Other liabilities |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swap liability |  | $ | 71 |  |  | $ | — |  |  | $ | 71 |  |  | $ | — |
|  | 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 |  |  |  | — |
Summary of Change in Mortgage Servicing Right ("MSR") Assets | The following table presents the change in mortgage servicing rights ("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 |  |  | 10 |
Fair value adjustments |  |  | (176 | )
Sale proceeds |  |  | (6,568 | )
Transfer to other assets |  |  | (731 | )
Loss on sale |  |  | (147 | )
Balance as of September 30, 2024 |  | $ | 19,502 |
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. As previously reported, in the second quarter of 2024, the Company recorded an $8.5 million impairment charge against the Company's investment in a fintech company, which is reported in other equity investments on the consolidated balance sheets.
|  | September 30, 2024 |
(Dollars in thousands) |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Other equity investments |  | $ | 4,525 |  |  | $ | — |  |  | $ | 1,519 |  |  | $ | 3,006 |
Collateral-dependent loans |  |  | 21,337 |  |  |  | — |  |  |  | — |  |  |  | 21,337 |
Loans held for sale |  |  | 22,082 |  |  |  | — |  |  |  | 22,082 |  |  |  | — |
Other real estate owned ("OREO") (1) |  |  | 100 |  |  |  | — |  |  |  | — |  |  |  | 100 |
(1) Included in other assets on the consolidated balance sheets. |  |  |  |  |  |  |  |  |  |  |  |
|  | 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 September 30, 2024 |  |  | Unobservable Input |  | Range |
Other equity investments |  |  |  |  |  |  |  |
Probability weighted expected return technique |  | $ | 3,006 |  |  | Discount Rate |  |  | 20 | %
Collateral-dependent loans |  |  |  |  |  |  |  |
Discounted appraised value technique |  |  | 21,337 |  |  | Selling Costs |  | 7% - 15% |
OREO (1) |  |  |  |  |  |  |  |
Discounted sales price technique |  |  | 100 |  |  | Selling Costs |  |  | 7 | %
(1) Included in other assets on the consolidated balance sheets. |  |  |  |  |  |  |  |
(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.
|  | September 30, 2024 |
|  |  |  |  |  |  |  | Fair Value Measurements |
(Dollars in thousands) |  | Carrying Value |  |  | Fair Value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Financial Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 281,698 |  |  | $ | 281,698 |  |  | $ | 281,698 |  |  | $ | — |  |  | $ | — |
Restricted cash |  |  | 4,160 |  |  |  | 4,160 |  |  |  | 4,160 |  |  |  | — |  |  |  | — |
Federal funds sold |  |  | 2,910 |  |  |  | 2,910 |  |  |  | 2,910 |  |  |  | — |  |  |  | — |
Securities available for sale |  |  | 314,784 |  |  |  | 314,784 |  |  |  | — |  |  |  | 314,034 |  |  |  | 750 |
Restricted equity investments |  |  | 20,891 |  |  |  | 20,891 |  |  |  | — |  |  |  | 20,891 |  |  |  | — |
Other equity investments |  |  | 4,525 |  |  |  | 4,525 |  |  |  | — |  |  |  | 1,519 |  |  |  | 3,006 |
Other investments |  |  | 21,344 |  |  |  | 21,344 |  |  |  | — |  |  |  | — |  |  |  | 21,344 |
Loans held for sale |  |  | 22,082 |  |  |  | 22,082 |  |  |  | — |  |  |  | 22,082 |  |  |  | — |
Loans held for investment, net |  |  | 2,154,960 |  |  |  | 2,055,614 |  |  |  | — |  |  |  | — |  |  |  | 2,055,614 |
Accrued interest receivable |  |  | 13,171 |  |  |  | 13,171 |  |  |  | — |  |  |  | 13,171 |  |  |  | — |
Bank owned life insurance |  |  | 14,953 |  |  |  | 14,953 |  |  |  | — |  |  |  | 14,953 |  |  |  | — |
MSR assets |  |  | 19,502 |  |  |  | 19,502 |  |  |  | — |  |  |  | — |  |  |  | 19,502 |
Financial Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing demand |  | $ | 459,793 |  |  | $ | 459,793 |  |  | $ | 459,793 |  |  | $ | — |  |  | $ | — |
Interest-bearing demand and money market |  |  | 748,416 |  |  |  | 748,416 |  |  |  | — |  |  |  | 748,416 |  |  |  | — |
Savings |  |  | 103,820 |  |  |  | 103,820 |  |  |  | — |  |  |  | 103,820 |  |  |  | — |
Time |  |  | 1,034,463 |  |  |  | 1,040,044 |  |  |  | — |  |  |  | — |  |  |  | 1,040,044 |
FHLB borrowings |  |  | 190,000 |  |  |  | 189,506 |  |  |  | — |  |  |  | 189,506 |  |  |  | — |
Subordinated notes, net |  |  | 39,806 |  |  |  | 38,687 |  |  |  | — |  |  |  | — |  |  |  | 38,687 |
|  | 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 sale |  |  | 46,337 |  |  |  | 46,337 |  |  |  | — |  |  |  | 46,337 |  |  |  | — |
Loans held for investment, net |  |  | 2,395,054 |  |  |  | 2,316,113 |  |  |  | — |  |  |  | — |  |  |  | 2,316,113 |
Accrued interest receivable |  |  | 14,967 |  |  |  | 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. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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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://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- Definition 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). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-11 + Details
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- Definition 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. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 860 -SubTopic 50 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481229/860-50-50-4 + Details
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