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Fair Value Measurements (Tables) | 12 Months Ended
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Dec. 31, 2023
Fair value of assets and liabilities |
Schedule of Recurring Level III Assets | The following table represents recurring Level III assets as of the periods shown:
(Dollars in thousands) |  | Municipal Securities |  | Embedded Derivatives |  | Total
Balance at December 31, 2022 |  | $ | 35,343 |  |  | $ | 787 |  |  | $ | 36,130 |
Realized and unrealized income (loss) included in earnings |  | 47 |  |  | (139) |  |  | (92) |
Purchase of securities |  | 246 |  |  | — |  |  | 246 |
Maturities/calls |  | (18,294) |  |  | — |  |  | (18,294) |
Unrealized gain included in other comprehensive loss |  | 903 |  |  | — |  |  | 903 |
Balance at December 31, 2023 |  | $ | 18,245 |  |  | $ | 648 |  |  | $ | 18,893 |
Balance at December 31, 2021 |  | $ | 41,763 |  |  | $ | — |  |  | $ | 41,763 |
Realized and unrealized gains included in earnings |  | 9 |  |  | — |  |  | 9 |
Purchase of securities |  | 1,048 |  |  | — |  |  | 1,048 |
Maturities/calls |  | (3,207) |  |  | — |  |  | (3,207) |
Unrealized loss included in other comprehensive loss |  | (4,270) |  |  | — |  |  | (4,270) |
Host contract executed |  | — |  |  | 787 |  |  | 787 |
Balance at December 31, 2022 |  | $ | 35,343 |  |  | $ | 787 |  |  | $ | 36,130 |
Schedule of Equity Securities without Readily Determinable Fair Value | The carrying amount of equity securities without a readily determinable fair value and amounts of unrealized gains and losses recognized in earnings as of December 31, 2023 and 2022 are included in the table below:
(Dollars in thousands) |  | Cumulative Adjustments |  | Annual Adjustments
December 31, 2023 |  |  |  |
Carrying value |  | $ | 37,496 |  |  | $ | 37,496 |
Carrying value adjustments: |  |  |  |
Upward changes for observable prices |  | 18,038 |  |  | 671 |
Downward changes for observable prices |  | (2,014) |  |  | (250) |
Net gain |  | $ | 16,024 |  |  | $ | 421 |
December 31, 2022 |  |  |  |
Carrying value |  | $ | 33,362 |  |  | $ | 33,362 |
Carrying value adjustments: |  |  |  |
Upward changes for observable prices |  | 17,367 |  |  | 203 |
Downward changes for observable prices |  | (1,764) |  |  | (1,652) |
Net gain (loss) |  | $ | 15,603 |  |  | $ | (1,449) |
Schedule of Quantitative Information About the Level III Significant Unobservable Inputs for Assets and Liabilities Measured at Fair Value | The following tables presents quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value at December 31, 2023 and 2022:
|  | Quantitative Information about Level III Fair Value Measurements
(Dollars in thousands) |  | Fair Value |  | Valuation Technique |  | Unobservable Input |  | Range
December 31, 2023 |  |  |  |  |  |  |  |
Nonrecurring measurements: |  |  |  |  |  |  |  |
Collateral-dependent loans |  | $ | 2,891 |  |  | Appraisal of collateral 1 |  | Appraisal adjustments 2 |  | 0% - 20%
|  |  |  |  |  | Liquidation expense 2 |  | 6%
Other real estate owned |  | $ | 825 |  |  | Appraisal of collateral 1 |  | Appraisal adjustments 2 |  | 0% - 20%
|  |  |  |  |  | Liquidation expense 2 |  | 6%
Other debt securities |  | $ | 7,500 |  |  | Net asset value |  | Cost, less impairment |  | 0%
Equity securities |  | $ | 37,496 |  |  | Net asset value |  | Cost, less impairment |  | 0%
Recurring measurements: |  |  |  |  |  |  |  |
Municipal securities 5 |  | $ | 18,245 |  |  | Appraisal of bond 3 |  | Bond appraisal adjustment 4 |  | 5% - 15%
Embedded Derivatives |  | $ | 648 |  |  | Monte Carlo pricing model |  | Deferred payment |  | $0 - $49.1 million
|  |  |  |  |  | Volatility |  | 59%
|  |  |  |  |  | Term |  | 4.75 years
|  |  |  |  |  | Risk free rate |  | 3.59%
|  | Quantitative Information about Level III Fair Value Measurements
(Dollars in thousands) |  | Fair Value |  | Valuation Technique |  | Unobservable Input |  | Range
December 31, 2022 |  |  |  |  |  |  |  |
Nonrecurring measurements: |  |  |  |  |  |  |  |
Impaired loans |  | $ | 14,117 |  |  | Appraisal of collateral 1 |  | Appraisal adjustments 2 |  | 0% - 20%
|  |  |  |  |  | Liquidation expense 2 |  | 6%
Other real estate owned |  | $ | 1,194 |  |  | Appraisal of collateral 1 |  | Appraisal adjustments 2 |  | 0% - 20%
|  |  |  |  |  | Liquidation expense 2 |  | 6%
Other debt securities |  | $ | 7,500 |  |  | Net asset value |  | Cost, less impairment |  | 0%
Equity securities |  | $ | 33,362 |  |  | Net asset value |  | Cost, less impairment |  | 0%
Recurring measurements: |  |  |  |  |  |  |  |
Municipal securities 5 |  | $ | 35,343 |  |  | Appraisal of bond 3 |  | Bond appraisal adjustment 4 |  | 5% - 15%
Embedded Derivatives |  | $ | 787 |  |  | Monte Carlo pricing model |  | Deferred payment |  | $0 - $51.9 million
|  |  |  |  |  | Volatility |  | 58%
|  |  |  |  |  | Term |  | 5 years
|  |  |  |  |  | Risk free rate |  | 3.95%
1 Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level III inputs which are not identifiable. 2 Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted-average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. 3 Fair value determined through independent analysis of liquidity, rating, yield and duration. 4 Appraisals may be adjusted for qualitative factors, such as local economic conditions, liquidity, marketability and legal structure. 5 Municipal securities classified as Level III instruments are comprised of TIF bonds related to certain local municipal securities.
Recurring |
Fair value of assets and liabilities |
Schedule of Financial Assets and Liabilities Measured at Fair Value | The following tables present the assets reported on the consolidated statements of financial condition at their fair value on a recurring basis as of December 31, 2023 and 2022 by level within the fair value hierarchy:
|  | December 31, 2023
(Dollars in thousands) |  | Level I |  | Level II |  | Level III |  | Total
Assets: |  |  |  |  |  |  |  |
United States government agency securities |  | $ | — |  |  | $ | 38,408 |  |  | $ | — |  |  | $ | 38,408 |
United States sponsored mortgage-backed securities |  | — |  |  | 82,382 |  |  | — |  |  | 82,382 |
United States treasury securities |  | — |  |  | 100,356 |  |  | — |  |  | 100,356 |
Municipal securities |  | — |  |  | 88,662 |  |  | 18,245 |  |  | 106,907 |
Corporate debt securities |  | — |  |  | 8,942 |  |  | — |  |  | 8,942 |
Other securities |  | — |  |  | 780 |  |  | — |  |  | 780 |
Equity securities |  | 3,590 |  |  | — |  |  | — |  |  | 3,590 |
Loans held-for-sale |  | — |  |  | 629 |  |  | — |  |  | 629 |
Interest rate swaps |  | — |  |  | 6,249 |  |  | — |  |  | 6,249 |
Bank-owned life insurance |  | — |  |  | 44,287 |  |  | — |  |  | 44,287 |
Embedded derivative |  | — |  |  | — |  |  | 648 |  |  | 648 |
Liabilities: |  |  |  |  |  |  |  |
Interest rate swaps |  | — |  |  | 6,249 |  |  | — |  |  | 6,249 |
Fair value hedge |  | — |  |  | 6,111 |  |  | — |  |  | 6,111 |
|  | December 31, 2022
(Dollars in thousands) |  | Level I |  | Level II |  | Level III |  | Total
Assets: |  |  |  |  |  |  |  |
United States government agency securities |  | $ | — |  |  | $ | 44,814 |  |  | $ | — |  |  | $ | 44,814 |
United States sponsored mortgage-backed securities |  | — |  |  | 56,571 |  |  | — |  |  | 56,571 |
United States treasury securities |  | — |  |  | 120,909 |  |  | — |  |  | 120,909 |
Municipal securities |  | — |  |  | 103,293 |  |  | 35,343 |  |  | 138,636 |
Corporate debt securities |  | — |  |  | 10,560 |  |  | — |  |  | 10,560 |
Other securities |  | — |  |  | 824 |  |  | — |  |  | 824 |
Equity securities |  | 5,382 |  |  | — |  |  | — |  |  | 5,382 |
Loans held-for-sale |  |  |  | 24,898 |  |  | — |  |  | 24,898 |
Interest rate swaps |  | — |  |  | 8,427 |  |  | — |  |  | 8,427 |
Bank-owned life insurance |  | — |  |  | 43,239 |  |  | — |  |  | 43,239 |
Embedded derivative |  | — |  |  | — |  |  | 787 |  |  | 787 |
Liabilities: |  |  |  |  |  |  |  |
Interest rate swaps |  | — |  |  | 8,427 |  |  | — |  |  | 8,427 |
Fair value hedge |  | — |  |  | 572 |  |  | — |  |  | 572 |
Non-recurring |
Fair value of assets and liabilities |
Schedule of Financial Assets and Liabilities Measured at Fair Value | Assets measured at fair value on a nonrecurring basis as of December 31, 2023 and 2022 are included in the table below:
|  | December 31, 2023
(Dollars in thousands) |  | Level I |  | Level II |  | Level III |  | Total
Collateral-dependent loans |  | — |  |  | — |  |  | 2,891 |  |  | 2,891 |
Other real estate owned |  | — |  |  | — |  |  | 825 |  |  | 825 |
Other debt securities |  | — |  |  | — |  |  | 7,500 |  |  | 7,500 |
Equity securities |  | — |  |  | — |  |  | 37,496 |  |  | 37,496 |
|  | December 31, 2022
(Dollars in thousands) |  | Level I |  | Level II |  | Level III |  | Total
Collateral-dependent loans |  | $ | — |  |  | $ | — |  |  | $ | 14,117 |  |  | $ | 14,117 |
Other real estate owned |  | — |  |  | — |  |  | 1,194 |  |  | 1,194 |
Other debt securities |  | — |  |  | — |  |  | 7,500 |  |  | 7,500 |
Equity securities |  | — |  |  | — |  |  | 33,362 |  |  | 33,362 |

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