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Fair Value Measurements (Tables)
3 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
Schedule of Recorded Amount of Assets and Liabilities Measured at Fair Value on a Recurring Basis
The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022.
(dollars in thousands)Quoted Prices
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Other Unobservable Inputs
(Level 3)
Total Fair Value
March 31, 2023
Assets:
Investment securities available-for-sale: 
U.S treasury bonds$— $46,931 $— $46,931 
U. S. agency securities— 674,467 — 674,467 
Residential mortgage-backed securities— 800,242 — 800,242 
Commercial mortgage-backed securities— 50,282 — 50,282 
Municipal bonds— 8,482 — 8,482 
Corporate bonds— 1,781 — 1,781 
Loans held for sale— 6,488 — 6,488 
Interest rate derivatives— 25,844 — 25,844 
Mortgage banking derivatives— — 29 29 
Total assets measured at fair value on a recurring basis$— $1,614,517 $29 $1,614,546 
Liabilities:
Credit risk participation agreements— — 
Interest rate derivatives— 25,218 — 25,218 
Total liabilities measured at fair value on a recurring basis$— $25,221 $— $25,221 
December 31, 2022
Assets:
Investment securities available-for-sale:
U.S. treasury bonds$— $46,326 $— $46,326 
U. S. agency securities— 669,728 — 669,728 
Residential mortgage-backed securities— 820,502 — 820,502 
Commercial mortgage-backed securities— 50,214 — 50,214 
Municipal bonds— 10,088 — 10,088 
Corporate bonds— 1,808 — 1,808 
Loans held for sale— 6,734 — 6,734 
Interest rate caps— 31,039 — 31,039 
Mortgage banking derivatives— — 93 93 
Total assets measured at fair value on a recurring basis$— $1,636,439 $93 $1,636,532 
Liabilities:
Credit risk participation agreements$— $$— $
Interest rate derivatives— 30,065 — 30,065 
Total liabilities measured at fair value on a recurring basis$— $30,067 $— $30,067 
Schedule of Aggregate Fair Value and the Aggregate Unpaid Principal Balance for Loans Held for Sale Measured at Fair Value
The following tables summarize the difference between the aggregate fair value and the aggregate unpaid principal balance for loans held for sale measured at fair value as of March 31, 2023 and December 31, 2022.
(dollars in thousands)Fair ValueAggregate Unpaid Principal BalanceDifference
March 31, 2023
Loans held for sale$6,488 $6,517 $(29)
December 31, 2022
Loans held for sale$6,734 $6,775 $(41)
Schedule of the Reconciliation of Activity for Assets and Liabilities Measured at Fair Value Based on Significant Other Unobservable Inputs
The following is a reconciliation of activity for assets measured at fair value based on Significant Other Unobservable Inputs (Level 3):
(dollars in thousands)Investment Securities Available-for-SaleMortgage Banking DerivativesTotal
Assets:      
Beginning balance at January 1, 2023
$— $93 $93 
Realized loss included in earnings— (64)(64)
Ending balance at March 31, 2023$— $29 $29 
(dollars in thousands)Investment Securities Available-for-SaleMortgage Banking DerivativesTotal
Assets:      
Beginning balance at January 1, 2022
$10,000 $636 $10,636 
Realized loss included in earnings— (543)(543)
Reclassified to investment securities held-to-maturity(10,000)— (10,000)
Ending balance at December 31, 2022$— $93 $93 
Schedule of Fair Value Measurement Inputs and Valuation Techniques
For Level 3 assets measured at fair value on a recurring or nonrecurring basis as of March 31, 2023 and December 31, 2022, the significant unobservable inputs used in the fair value measurements were as follows:
March 31, 2023
December 31, 2022
(dollars in thousands)Valuation TechniqueDescriptionRange
Weighted Average (1)
Fair Value
Weighted Average (1)
RangeFair Value
Mortgage banking derivativesPricing ModelPull Through Rate
61.3% - 100.0%
64.90 %$29 83.80 %
83.8% - 100%
$93 
(1)Unobservable inputs for mortgage banking derivatives were weighted by loan amount.
Schedule of Assets Measured at Fair Value on Nonrecurring Basis
Assets measured at fair value on a nonrecurring basis are included in the table below:
(dollars in thousands)Quoted Prices
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Other Unobservable Inputs
(Level 3)
Total Fair Value
March 31, 2023        
Individually assessed loans:
Commercial$— $— $1,826 $1,826 
Income producing - commercial real estate— — 2,773 2,773 
Owner occupied - commercial real estate— — 19,184 19,184 
Real estate mortgage - residential— — 1,404 1,404 
Construction - commercial and residential— — 396 396 
Other real estate owned— — 1,962 1,962 
Total assets measured at fair value on a nonrecurring basis as of March 31, 2023$— $— $27,545 $27,545 
December 31, 2022
Individually assessed loans:
Commercial$— $— $1,790 $1,790 
Income producing - commercial real estate— — 3,131 3,131 
Owner occupied - commercial real estate— — 19,187 19,187 
Real estate mortgage - residential— — 1,404 1,404 
Construction - commercial and residential— — 
Other real estate owned— — 1,962 1,962 
Total assets measured at fair value on a nonrecurring basis as of December 31, 2022$— $— $27,477 $27,477 
Schedule of Estimated Fair Values of Financial Instruments The estimated fair value of the Company's financial instruments at March 31, 2023 and December 31, 2022 are as follows:
Fair Value Measurements
(dollars in thousands)Carrying ValueFair ValueQuoted Prices
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Other Unobservable Inputs
(Level 3)
March 31, 2023
Assets
Cash and due from banks$9,940 $9,940 $9,940 $— $— 
Federal funds sold3,746 3,746 — 3,746 — 
Interest bearing deposits with other banks159,078 159,078 — 159,078 — 
Investment securities available-for-sale1,582,185 1,582,185 — 1,582,185 — 
Investment securities held-to-maturity1,075,303 965,786 — 965,786 — 
Federal Reserve and Federal Home Loan Bank stock79,134 N/A— — — 
Loans held for sale6,488 6,488 — 6,488 — 
Loans7,737,676 7,567,583 — — 7,567,583 
Bank owned life insurance111,217 111,217 — 111,217 — 
Annuity investment13,675 13,675 — 13,675 — 
Mortgage banking derivatives29 29 — — 29 
Interest rate caps25,844 25,844 — 25,844 — 
Liabilities
Noninterest bearing deposits$2,247,706 $2,247,706 $— $2,247,706 $— 
Interest bearing deposits3,877,730 3,877,730 — 3,877,730 — 
Time deposits1,337,805 1,324,234 — 1,324,234 — 
Customer repurchase agreements37,854 37,854 — 37,854 — 
Borrowings2,183,626 2,181,709 — 2,181,709 — 
Credit risk participation agreement— — 
Interest rate caps 25,218 25,218 — 25,218 — 
December 31, 2022
Assets
Cash and due from banks$12,655 $12,655 $12,655 $— $— 
Federal funds sold33,927 33,927 — 33,927 — 
Interest bearing deposits with other banks265,272 265,272 — 265,272 — 
Investment securities available-for-sale1,598,666 1,598,666 — 1,598,666 — 
Investment securities held-to-maturity1,093,374 967,940 — 967,940 — 
Federal Reserve and Federal Home Loan Bank stock65,067 N/A— — — 
Loans held for sale6,734 6,734 — 6,734 — 
Loans7,635,632 7,492,283 — — 7,492,283 
Bank owned life insurance110,998 110,998 — 110,998 — 
Annuity investment13,869 13,869 — 13,869 — 
Mortgage banking derivatives93 93 — — 93 
Interest rate caps 31,039 31,039 — 31,039 — 
Liabilities
Noninterest bearing deposits$3,150,751 $3,150,751 $— $3,150,751 $— 
Interest bearing deposits4,778,932 4,778,932 — 4,778,932 — 
Time deposits783,499 777,757 — 777,757 — 
Customer repurchase agreements35,100 35,100 — 35,100 — 
Borrowings1,044,795 1,043,083 — 1,043,083 — 
Credit risk participation agreements— — 
Interest rate caps 30,065 30,065 — 30,065 —