Fair Value Disclosures and Reporting and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of carrying amount and estimated fair values of financial instruments

Estimated fair values for the Company’s financial instruments are as follows, as of the dates noted:

Fair Value of Financial Instruments

(dollars in thousands, unaudited)

		September 30, 2022
			Fair Value Measurements
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Financial assets:
Cash and cash equivalents	$	86,683	$	86,683	$	—	$	—	$	86,683
Investment securities available-for-sale		1,069,434		—		1,015,098		54,336		1,069,434
Investment securities held-to-maturity		156,211		—		138,684		—		138,684
Loans and leases, net held for investment		1,972,649		—		—		1,958,479		1,958,479
Collateral dependent loans		23,577		—		23,577		—		23,577
Financial liabilities:
Deposits		2,885,468		1,118,245		1,764,225		—		2,882,470
Repurchase agreements		112,012		—		112,012		—		112,012
Short term borrowings		103,100		—		103,100		—		103,100
Long-term debt		49,196		—		43,247		—		43,247
Subordinated debentures		35,436		—		35,251		—		35,251

		December 31, 2021
			Fair Value Measurements
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Financial assets:
Cash and cash equivalents	$	257,528	$	257,528	$	—	$	—	$	257,528
Investment securities available for sale		973,314		—		750,077		223,237		973,314
Loans and leases, net held for investment		1,973,207		—		—		1,960,966		1,960,966
Collateral dependent loans		398		—		221		177		398
Financial liabilities:
Deposits		2,781,572		1,084,544		1,696,124		—		2,780,668
Repurchase agreements		106,937		—		106,937		—		106,937
Short term borrowings		49,141		—		49,118		—		49,118
Subordinated debentures		35,302		—		33,281		—		33,281

Schedule of assets reported at fair value on a recurring basis

Assets reported at fair value on a recurring basis are summarized below:

Fair Value Measurements – Recurring

(dollars in thousands, unaudited)

	Fair Value Measurements at September 30, 2022, using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Realized Gain/(Loss) (Level 3)
Securities:
U.S. government agencies	$	—	$	3,955	$	—	$	3,955	$	—
Mortgage-backed securities		—		191,022		—		191,022		—
State and political subdivisions		—		320,729		—		320,729		—
Corporate bonds		—		—		54,336		54,336		—
Collateralized loan obligations		—		499,392		—		499,392		—
Total available-for-sale securities	$	—	$	1,015,098	$	54,336	$	1,069,434	$	—

	Fair Value Measurements at December 31, 2021, using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total		Realized Gain/(Loss) (Level 3)
Securities:
U.S. government agencies	$	—	$	1,574	$	—	$	1,574	$	—
Mortgage-backed securities		—		306,727		—		306,727		—
State and political subdivisions		—		304,268		—		304,268		—
Corporate bonds		—		999		27,530		28,529		—
Collateralized loan obligations		—		136,509		195,707		332,216		—
Total available-for-sale securities	$	—	$	750,077	$	223,237	$	973,314	$	—

Reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

Fair Value Measurements - Level 3 Recurring
(dollars in thousands, unaudited)
	Collateralized Loan Obligations				Corporate Bonds
	2022		2021		2022		2021
Balance of recurring Level 3 assets at January 1,	$	195,707	$	—	$	27,530	$	—
Purchases		—		—		26,806		—
Transfers out of Level 3		(195,707)		—		—		—
Balance of recurring Level 3 assets at September 30,	$	—	$	—	$	54,336	$	—

Schedule of assets reported at fair value on a nonrecurring basis

Assets reported at fair value on a nonrecurring basis are summarized below:

Fair Value Measurements – Nonrecurring

(dollars in thousands, unaudited)

	Fair Value Measurements at September 30, 2022, using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Collateral dependent loans
Real estate:
1-4 family residential construction	$	—	$	—	$	—	$	—
Other construction/land		—		—		—		—
1-4 family - closed-end		—		—		—		—
Equity lines		—		—		—		—
Multi-family residential		—		—		—		—
Commercial real estate - owner occupied		—		—		—		—
Commercial real estate - non-owner occupied		—		—		—		—
Farmland		—		17,655		—		17,655
Total real estate		—		17,655		—		17,655
Agricultural		—		5,922		—		5,922
Commercial and industrial		—		—		—		—
Consumer loans		—		—		—		—
Total collateral dependent loans	$	—	$	23,577	$	—	$	23,577
Foreclosed assets	$	—	$	—	$	—	$	—
Total assets measured on a nonrecurring basis	$	—	$	23,577	$	—	$	23,577

	Fair Value Measurements at December 31, 2021, using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Collateral dependent loans
Real estate:
1-4 family residential construction	$	—	$	—	$	—	$	—
Other construction/land		—		—		—		—
1-4 family - closed-end		—		—		—		—
Equity lines		—		161		—		161
Multi-family residential		—		—		—		—
Commercial real estate - owner occupied		—		60		—		60
Commercial real estate - non-owner occupied		—		—		—		—
Farmland		—		—		—		—
Total real estate		—		221		—		221
Agricultural		—		—		—		—
Commercial and industrial		—		—		177		177
Consumer loans		—		—		—		—
Total collateral dependent loans	$	—	$	221	$	177	$	398
Foreclosed assets	$	—	$	93	$	—	$	93
Total assets measured on a nonrecurring basis	$	—	$	314	$	177	$	491