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Fair Value Measurements (Tables) | 6 Months Ended
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Jun. 30, 2024
Fair Value Disclosures [Abstract] |
Schedule of Financial Assets and Liabilities Measured at Fair Value | The following tables present assets and liabilities reported on the consolidated statements of financial condition at their fair value on a recurring basis as of the periods shown by level within the fair value hierarchy:
|  | June 30, 2024
(Dollars in thousands) |  | Level I |  | Level II |  | Level III |  | Total
Assets: |  |  |  |  |  |  |  |
United States government agency securities |  | $ | — |  |  | $ | 41,034 |  |  | $ | — |  |  | $ | 41,034 |
United States sponsored mortgage-backed securities |  | — |  |  | 97,907 |  |  | — |  |  | 97,907 |
United States treasury securities |  | — |  |  | 101,327 |  |  | — |  |  | 101,327 |
Municipal securities |  | — |  |  | 85,849 |  |  | 17,929 |  |  | 103,778 |
Corporate debt securities |  | — |  |  | 8,951 |  |  | — |  |  | 8,951 |
Other securities |  | — |  |  | 757 |  |  | — |  |  | 757 |
Equity securities |  | 3,775 |  |  | — |  |  | — |  |  | 3,775 |
Interest rate swaps |  | — |  |  | 7,428 |  |  | — |  |  | 7,428 |
Fair value hedge |  | — |  |  | 405 |  |  | — |  |  | 405 |
Embedded derivative |  | — |  |  | — |  |  | 648 |  |  | 648 |
Liabilities: |  |  |  |  |  |  |  |
Interest rate swaps |  | — |  |  | 7,428 |  |  | — |  |  | 7,428 |
|  | 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 |
Embedded derivative |  | — |  |  | — |  |  | 648 |  |  | 648 |
Liabilities: |  |  |  |  |  |  |  |
Interest rate swaps |  | — |  |  | 6,249 |  |  | — |  |  | 6,249 |
Fair value hedge |  | — |  |  | 6,111 |  |  | — |  |  | 6,111 |
The following table presents the fair value of these assets as of the periods shown:
|  | June 30, 2024
(Dollars in thousands) |  | Level I |  | Level II |  | Level III |  | Total
Collateral-dependent loans |  | $ | — |  |  | $ | — |  |  | $ | 18,425 |  |  | $ | 18,425 |
Other real estate owned |  | — |  |  | — |  |  | 825 |  |  | 825 |
Other debt securities |  | — |  |  | — |  |  | 7,500 |  |  | 7,500 |
Equity securities |  | — |  |  | — |  |  | 37,486 |  |  | 37,486 |
|  | 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 |
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 March 31, 2024 |  | $ | 17,363 |  |  | $ | 648 |  |  | $ | 18,011 |
Realized and unrealized income included in earnings |  | 4 |  |  | — |  |  | 4 |
Maturities/calls |  | (155) |  |  | — |  |  | (155) |
Unrealized loss included in other comprehensive income (loss) |  | 717 |  |  | — |  |  | 717 |
Balance at June 30, 2024 |  | $ | 17,929 |  |  | $ | 648 |  |  | $ | 18,577 |
Balance at December 31, 2023 |  | $ | 18,245 |  |  | $ | 648 |  |  | $ | 18,893 |
Realized and unrealized income (loss) included in earnings |  | 5 |  |  | — |  |  | 5 |
Maturities/calls |  | (225) |  |  | — |  |  | (225) |
Unrealized loss included in other comprehensive income (loss) |  | (96) |  |  | — |  |  | (96) |
Balance at June 30, 2024 |  | $ | 17,929 |  |  | $ | 648 |  |  | $ | 18,577 |
Balance at March 31, 2023 |  | $ | 36,458 |  |  | $ | 648 |  |  | $ | 37,106 |
Realized and unrealized gain included in earnings |  | 1 |  |  | — |  |  | 1 |
Maturities/calls |  | (700) |  |  | — |  |  | (700) |
Unrealized loss included in other comprehensive income (loss) |  | (1,341) |  |  | — |  |  | (1,341) |
Balance at June 30, 2023 |  | $ | 34,418 |  |  | $ | 648 |  |  | $ | 35,066 |
Balance at December 31, 2022 |  | $ | 35,343 |  |  | $ | 787 |  |  | $ | 36,130 |
Realized loss included in earnings |  | 1 |  |  | (139) |  |  | (138) |
Maturities/calls |  | (767) |  |  | — |  |  | (767) |
Unrealized gain included in other comprehensive income (loss) |  | (159) |  |  | — |  |  | (159) |
Balance at June 30, 2023 |  | $ | 34,418 |  |  | $ | 648 |  |  | $ | 35,066 |
Schedule of Quantitative Information About the Level III Significant Unobservable Inputs for Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | The following tables present quantitative information about the Level III significant unobservable inputs for assets and liabilities measured at fair value as of the periods shown:
|  | Quantitative Information about Level III Fair Value Measurements
(Dollars in thousands) |  | Fair Value |  | Valuation Technique |  | Unobservable Input |  | Range
June 30, 2024 |  |  |  |  |  |  |  |
Nonrecurring measurements: |  |  |  |  |  |  |  |
Collateral-dependent loans |  | $ | 18,425 |  |  | 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 |  | $ | 37,486 |  |  | Net asset value |  | Cost, less impairment |  | 0%
Recurring measurements: |  |  |  |  |  |  |  |
Municipal securities 5 |  | $ | 17,929 |  |  | 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%
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%
1 Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level III inputs that 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 is 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.

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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 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 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 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. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 101 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-101 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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