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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis

The following tables present the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2023 and December 31, 2022.

												September 30, 2023  Fair Value Measurements Using
(in thousands)						Fair Value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
U.S. Government-sponsored agencies						$	97,178					$	—					$	97,178					$	—
Municipal securities						62,772						—						62,772						—
Agency mortgage-backed securities - residential						193,096						—						193,096						—
Agency mortgage-backed securities - commercial						36,163						—						36,163						—
Private label mortgage-backed securities - residential						18,576						—						18,576						—
Asset-backed securities						6,703						—						6,703						—
Corporate securities						36,339						—						36,339						—
Total available-for-sale securities						$	450,827					$	—					$	450,827					$	—
Servicing asset						9,579						—						—						9,579
Interest rate swap agreements						8,934						—						8,934						—
Interest rate swap agreements - assets (back-to-back)						81						—						81						—
Interest rate swap agreements - liabilities (back-to-back)						81						—						81						—

												December 31, 2022 Fair Value Measurements Using
(in thousands)						Fair Value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
U.S. Government-sponsored agencies						$	33,809					$	—					$	33,809					$	—
Municipal securities						67,276						—						67,276						—
Agency mortgage-backed securities - residential						215,092						—						215,092						—
Agency mortgage-backed securities - commercial						15,840						—						15,840						—
Private label mortgage-backed securities - residential						10,455						—						10,455						—
Asset-backed securities						4,960						—						4,960						—
Corporate securities						42,952						—						42,952						—
Total available-for-sale securities						$	390,384					$	—					$	390,384					$	—
Loans held-for-sale (mandatory pricing agreements)						9,110						—						9,110						—
Servicing asset						6,255						—						—						6,255
Interest rate swap agreements						8,645						—						8,645						—
Forward contracts						97						97						—						—
IRLCs						133						—						—						133

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables reconcile the beginning and ending balances of recurring fair value measurements recognized in the accompanying condensed consolidated balance sheets using significant unobservable (Level 3) inputs for the three and nine months ended September 30, 2023 and 2022.

												Three Months Ended
(in thousands)												Servicing Asset						Interest Rate Lock Commitments
Balance, July 1, 2023												$	8,251					$	—
Total realized gains
Additions:
Originated and purchased servicing												1,585						—
Subtractions:
Paydowns												(408)						—
Change in fair value												151						—
Balance, September 30, 2023												$	9,579					$	—
Balance as of July 1, 2022												$	5,345					$	462
Total realized gains
Additions:
Originated and purchased servicing												783						—
Subtractions:
Paydowns												(279)						—
Change in fair value												(54)						(850)
Balance, September 30, 2022												$	5,795					$	(388)

												Nine Months Ended
(in thousands)												Servicing Asset						Interest Rate Lock Commitments
Balance, January 1, 2023												$	6,255					$	133
Total realized gains
Additions:
Originated and purchased servicing												3,994						—
Subtractions:
Paydowns												(1,275)						—
Change in fair value												605						(133)
Balance, September 30, 2023												$	9,579					$	—
Balance as of January 1, 2022												$	4,702					$	718
Total realized gains
Additions:
Originated and purchased servicing												2,193						—
Subtractions:
Paydowns												(888)						—
Change in fair value												(212)						(1,106)
Balance, September 30, 2022												$	5,795					$	(388)

Schedule Of Impaired Loans, Including Valuation Allowance, Fair Value, Unobservable Inputs Reconciliation

The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurement falls at September 30, 2023 and December 31, 2022.

												September 30, 2023
(in thousands)												Fair Value Measurements Using
						Fair Value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Collateral dependent loans						$	1,144					$	—					$	—					$	1,144

												December 31, 2022
(in thousands)												Fair Value Measurements Using
						Fair Value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Impaired loans						$	1,164					$	—					$	—					$	1,164

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.

(dollars in thousands)

Fair Value at September 30, 2023

Valuation Technique

Significant Unobservable Inputs

Range

Weighted-Average Range

Collateral dependent loans

$

1,144

Fair value of collateral

Discount for type of property and current market conditions

0%- 30%

22%

Servicing asset

9,579

Discounted cash flow

Prepayment speeds Discount rate

0% - 25% 15%

11.3% 15%

(dollars in thousands)						Fair Value at December 31, 2022						Valuation Technique						Significant Unobservable Inputs						Range						Weighted-Average Range
Impaired loans						$	1,164					Fair value of collateral						Discount for type of property and current market conditions						0% - 25%						20%
IRLCs						133						Discounted cash flow						Loan closing rates						31% - 100%						89%
Servicing asset						6,255						Discounted cash flow						Prepayment speeds Discount rate						0% - 25% 14%						14.6% 14%

Fair Value, by Balance Sheet Grouping

The following tables present the carrying value and estimated fair value of all financial assets and liabilities that are not measured at fair value on a recurring basis at September 30, 2023 and December 31, 2022.

						September 30, 2023 Fair Value Measurements Using
(in thousands)						Carrying Amount						Fair Value						Quoted Prices In Active Market for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Cash and cash equivalents						$	521,205					$	521,205					$	521,205					$	—					$	—
Securities held-to-maturity, net						231,928						201,650						—						201,650						—
Loans held-for-sale (best efforts pricing agreements)						31,669						31,669						—						31,669						—
Net loans						3,698,616						3,480,892						—						—						3,480,892
Accrued interest receivable						23,761						23,761						23,761						—						—
Federal Home Loan Bank of Indianapolis stock						28,350						28,350						—						28,350						—
Deposits						4,083,545						4,070,758						1,746,502						—						2,324,256
Advances from Federal Home Loan Bank						614,933						595,177						—						595,177						—
Subordinated debt						104,761						101,920						31,820						70,100						—
Accrued interest payable						2,968						2,968						2,968						—						—

						December 31, 2022 Fair Value Measurements Using
(in thousands)						Carrying Amount						Fair Value						Quoted Prices In Active Market for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Cash and cash equivalents						$	256,552					$	256,552					$	256,552					$	—					$	—
Securities held-to-maturity						189,168						168,483						—						168,483						—
Loans held-for-sale (best efforts pricing agreements)						12,401						12,401						—						12,401						—
Net loans						3,467,664						3,225,845						—						—						3,225,845
Accrued interest receivable						21,069						21,069						21,069						—						—
Federal Home Loan Bank of Indianapolis stock						28,350						28,350						—						28,350						—
Deposits						3,441,245						3,415,390						1,974,344						—						1,441,046
Advances from Federal Home Loan Bank						614,928						596,455						—						596,455						—
Subordinated debt						104,532						102,669						32,560						70,109						—
Accrued interest payable						2,913						2,913						2,913						—						—

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Schedule Of Impaired Loans, Including Valuation Allowance, Fair Value, Unobservable Inputs Reconciliation [Table Text Block]

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Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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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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