Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Measurements [Abstract]

Fair Value Assets and Liabilities Measured on Nonrecurring Basis Valuation Techniques

(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range
September 30, 2022
MSRs (1)	$	5,321	Market Approach	Weighted average prepayment speed (PSA) (2)	121
IRLCs - net liability	$	(23)	Market Approach	Range of pull through rate	78% - 100%
				Average pull through rate	92%

(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range
December 31, 2021
MSRs (1)	$	4,087	Market Approach	Weighted average prepayment speed (PSA) (2)	156
IRLCs - asset	$	380	Market Approach	Range of pull through rate	77% - 100%
				Average pull through rate	93%

(1) The weighted average was calculated with reference to the principal balance of the underlying mortgages.

(2) PSA = Public Securities Association Standard Prepayment Model

Schedule of Servicing Asset at Fair Value

	For the Three Months Ended		For the Nine Months Ended
(Dollars in thousands)	September 30, 2022		September 30, 2022
Beginning balance	$	5,228	$	4,087
Servicing rights resulting from sales of loans		113		777
Valuation adjustment		(20)		457
Ending balance	$	5,321	$	5,321

Schedule of Derivative Asset at Fair Value

	For the Three Months Ended		For the Nine Months Ended
(Dollars in thousands)	September 30, 2022		September 30, 2022
Beginning balance	$	146	$	380
Valuation adjustment		(169)		(403)
Ending balance	$	(23)	$	(23)

Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis

					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
September 30, 2022
Assets:
Securities available for sale:
U.S. Government agencies	$	18,314	$	—	$	18,314	$	—
Mortgage-backed		66,156		—		66,156		—
Other Debt Securities		1,877		—		1,877		—
		86,347		—		86,347		—
Equity securities		1,222		—		1,222		—
TBA securities		1,000		—		1,000		—
LHFS		8,342		—		8,342		—
MSRs		5,321		—		—		5,321
IRLCs		10		—		—		10
Total assets at fair value	$	102,242	$	—	$	96,911	$	5,331
Liabilities:
IRLCs	$	33	$	—	$	—	$	33
Total liabilities at fair value	$	33	$	—	$	—	$	33

					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2021
Assets:
Securities available for sale:
U.S. Government agencies	$	22,305	$	—	$	22,305	$	—
Mortgage-backed		92,637		—		92,637		—
Other Debt Securities		2,040		—		2,040		—
		116,982		—		116,982		—
Equity securities		1,372		—		1,372		—
TBA securities		55		—		55		—
LHFS		37,749		—		37,749		—
MSRs		4,087		—		—		4,087
IRLCs		380		—		—		380
Total assets at fair value	$	160,625	$	—	$	156,158	$	4,467
Liabilities:
TBA securities	$	41	$	—	$	41	$	—
Total liabilities at fair value	$	41	$	—	$	41	$	—

Fair Value of Assets Measured on Nonrecurring Basis

	Quantitative Information about Level 3 Fair Value Measurements
								Weighted
(Dollars in thousands)	Fair Value		Valuation Technique		Unobservable Input		Range	Average (3)
September 30, 2022
Nonrecurring measurements:
Impaired loans	$	617	Appraisal of collateral	(1)	Liquidation expense	(2)	10%	(10%)
Impaired loans	$	1,432	Discounted cash flow analysis	(1)	Discount rate		6% - 7.25%	(6%)
Other real estate owned	$	197	Appraisal of collateral	(1)	Appraisal adjustments	(2)	0% - 20%	(2%)

	Quantitative Information about Level 3 Fair Value Measurements
								Weighted
(Dollars in thousands)	Fair Value		Valuation Technique		Unobservable Input		Range	Average (3)
December 31, 2021
Nonrecurring measurements:
Impaired loans	$	617	Appraisal of collateral	(1)	Liquidation expense	(2)	10%	(10%)
Impaired loans	$	2,026	Discounted cash flow analysis	(1)	Discount rate		4% - 7.25%	(6%)
Other real estate owned	$	532	Appraisal of collateral	(1)	Appraisal adjustments	(2)	20% - 40%	(35%)

(1)Fair value is generally determined through independent appraisals of the underlying collateral (impaired loans and OREO) or discounted cash flow analyses (impaired loans), 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)Unobservable inputs were weighted by the relative fair value of the instruments.

Schedule of Estimated Fair Values of Financial Assets and Liabilities

	September 30, 2022				December 31, 2021
			Estimated				Estimated
	Carrying		Fair		Carrying		Fair
(Dollars in thousands)	Amount		Value		Amount		Value
Financial assets
Level 1 inputs
Cash and cash equivalents	$	163,306	$	163,306	$	583,613	$	583,613
Level 2 inputs
Investment securities available for sale	$	86,347	$	86,347	$	116,982	$	116,982
Investment securities held to maturity		570,719		501,145		404,594		401,524
Equity securities		1,222		1,222		1,372		1,372
Restricted securities		9,894		9,894		4,159		4,159
LHFS		8,342		8,342		37,749		37,749
TBA securities		1,000		1,000		55		55
Cash surrender value on life insurance		58,768		58,768		47,935		47,935
Level 3 inputs
Loans, net	$	2,385,606	$	2,299,283	$	2,105,231	$	2,106,373
MSRs		5,321		5,321		4,087		4,087
IRLCs		10		10		380		380
Financial liabilities
Level 2 inputs
Deposits:
Noninterest-bearing demand	$	893,808	$	893,808	$	927,497	$	927,497
Checking plus interest		649,929		649,929		524,143		524,143
Money market		721,987		721,987		889,099		889,099
Savings		320,189		320,189		225,546		225,546
Club		1,440		1,440		388		388
Certificates of deposit		427,959		412,214		459,563		461,135
Securities sold under retail repurchase agreement		—		—		4,143		4,143
Advances from FHLB - long-term		10,013		9,998		10,135		10,187
Subordinated debt		42,995		40,817		42,762		44,876
TBA Securities		—		—		41		41
Level 3 inputs
IRLCs		33		33		—		—