FAIR VALUE OF ASSETS AND LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2024

FAIR VALUE OF ASSETS AND LIABILITIES

Schedule of assets and liabilities measured at fair value on a recurring basis

							Total
	Level 1		Level 2		Level 3		Fair Value
	(in thousands)
March 31, 2024
Assets
Securities available for sale	$	—	$	291,008	$	—	$	291,008
Loans held for sale		—		16,434		—		16,434
Mortgage servicing rights		—		46,597		—		46,597
Derivatives		—		30,557		449		31,006
	$	—	$	384,596	$	449	$	385,045
Liabilities
Derivatives	$	—	$	25,365	$	50	$	25,415
December 31, 2023
Assets
Securities available for sale	$	—	$	290,151	$	—	$	290,151
Loans held for sale		—		19,686		—		19,686
Mortgage servicing rights		—		46,111		—		46,111
Derivatives		—		28,340		484		28,824
	$	—	$	384,288	$	484	$	384,772
Liabilities
Derivatives	$	—	$	24,100	$	451	$	24,551

Schedule of changes in Level 3 assets measured at fair value on a recurring basis

	Three Months Ended March 31,
	2024		2023
	(in thousands)
Assets: Derivative and Forward Loan Sale Commitments:
Balance at beginning of period	$	484	$	487
Total gains (losses) included in net income (1)		(35)		279
Balance at end of period	$	449	$	766
Changes in unrealized gains relating to instruments at period end	$	449	$	766
Liabilities: Derivative and Forward Loan Sale Commitments:
Balance at beginning of period	$	(451)	$	(104)
Total gains (losses) included in net income (1)		401		(198)
Balance at end of period	$	(50)	$	(302)
Changes in unrealized losses relating to instruments at period end	$	(50)	$	(302)
(1) Included in mortgage banking income on the Consolidated Statements of Income.

Schedule of changes in Level 3 liabilities measured at fair value on a recurring basis

	Three Months Ended March 31,
	2024		2023
	(in thousands)
Assets: Derivative and Forward Loan Sale Commitments:
Balance at beginning of period	$	484	$	487
Total gains (losses) included in net income (1)		(35)		279
Balance at end of period	$	449	$	766
Changes in unrealized gains relating to instruments at period end	$	449	$	766
Liabilities: Derivative and Forward Loan Sale Commitments:
Balance at beginning of period	$	(451)	$	(104)
Total gains (losses) included in net income (1)		401		(198)
Balance at end of period	$	(50)	$	(302)
Changes in unrealized losses relating to instruments at period end	$	(50)	$	(302)
(1) Included in mortgage banking income on the Consolidated Statements of Income.

Schedule of assets measured at fair value on a non-recurring basis

	December 31,
	2023
	Level 1		Level 2		Level 3
	(in thousands)
Collateral-dependent impaired loans	$	—	$	—	$	5,746

	Three Months Ended March 31,
	2024		2023
	(in thousands)
Collateral-dependent impaired loans	$	—	$	29

Schedule of changes in Level 3 assets measured at fair value on a non-recurring basis

The table below presents quantitative information about significant unobservable inputs (Level 3) for assets measured at fair value on a non-recurring basis at the dates indicated.

		Fair Value
		March 31,	Valuation Technique
	2023
		(in thousands)
Collateral-dependent impaired loans	$	108	Sales Comparison Approach (1)
(1) Fair value is generally determined through independent appraisals of the underlying collateral, which includes unobservable inputs such as adjustments for differences between the comparable sales. The Company may also use another source of collateral assessment to determine a reasonable estimate of the fair value of the collateral. Appraisals may be adjusted by management for qualitative factors and estimated liquidation expenses. Generally, appraisals for residential real estate and commercial real estate loan are discounted 20%. Commercial and industrial appraisals are generally discounted 25%-50%. Management may take larger discounts to reflect market liquidity for certain types of assets not addressed in the appraisals.

Schedule of estimated fair values and related carrying amounts of financial instruments

	March 31, 2024
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets:
Cash and cash equivalents	$	393,441	$	393,441	$	—	$	—	$	393,441
Securities available for sale		291,008		—		291,008		—		291,008
Securities held to maturity		19,724		—		19,102		—		19,102
Federal Home Loan Bank stock		26,565		N/A		N/A		N/A		N/A
Loans held for sale		16,434		—		16,434		—		16,434
Loans, net		4,728,500		—		—		4,500,663		4,500,663
Retirement plan annuities		15,315		—		—		15,315		15,315
Accrued interest receivable		19,470		—		19,470		—		19,470
Derivatives		31,006		—		30,557		449		31,006
Financial liabilities:
Deposits		4,394,024		—		—		4,382,830		4,382,830
Borrowed funds		754,380		—		751,277		—		751,277
Mortgagors' escrow accounts		10,364		—		—		10,364		10,364
Accrued interest payable		7,302		—		7,302		—		7,302
Derivatives		25,415		—		25,365		50		25,415

	December 31, 2023
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets:
Cash and cash equivalents	$	227,350	$	227,350	$	—	$	—	$	227,350
Securities available for sale		290,151		—		290,151		—		290,151
Securities held to maturity		19,796		—		19,262		—		19,262
Federal Home Loan Bank stock		27,098		N/A		N/A		N/A		N/A
Loans held for sale		19,686		—		19,686		—		19,686
Loans, net		4,702,339		—		—		4,482,448		4,482,448
Retirement plan annuities		15,170		—		—		15,170		15,170
Accrued interest receivable		18,169		—		18,169		—		18,169
Derivatives		28,824		—		28,340		484		28,824
Financial liabilities:
Deposits		4,387,409		—		—		4,376,269		4,376,269
Borrowed funds		303,000		—		567,158		—		567,158
Subordinated debt				—		—		—		-
Mortgagors' escrow accounts		8,872		—		—		8,872		8,872
Accrued interest payable		5,251		—		5,251		—		5,251
Derivatives		24,551		—		24,100		451		24,551