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Fair Value (Tables)

9 Months Ended

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

X

- 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

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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
-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

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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

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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

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X

- 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)
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