Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall as of March 31, 2023 and December 31, 2022 (in thousands):

	Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
March 31, 2023
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	223,545	$	—	$	223,545	$	—
Obligations of states and political subdivisions		284,997		—		284,997		—
Mortgage-backed securities		624,272		—		624,272		—
Other securities		79,884		—		69,874		10,010
Total available-for-sale securities		1,212,698		—		1,202,688		10,010
Equity securities		362		362		—		—
Derivative assets: interest rate swaps		3,353		—		3,353		—
Total assets	$	1,216,413	$	362	$	1,206,041	$	10,010
Derivative liabilities: interest rate swaps	$	2,525	$	—	$	2,525	$	—
December 31, 2022
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	220,527	$	—	$	220,527	$	—
Obligations of states and political subdivisions		287,698		—		287,698		—
Mortgage-backed securities		627,880		—		627,880		—
Other securities		82,880		—		73,630		9,250
Total available-for-sale securities		1,218,985		—		1,209,735		9,250
Equity securities		311		311		—		—
Derivative assets: interest rate swaps		4,253		—		4,253		—
Total assets	$	1,223,549	$	311	$	1,213,988	$	9,250
Derivative liabilities: interest rate swaps	$	3,100	$	—	$	3,100	$	—

Fair Value of Assets Measured on a Recurring Basis Using Significant Unobservable Inputs

The change in fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2023 and 2022 is summarized as follows (in thousands):

	Three months ended March 31, 2023
	Obligation of State and Political Subdivisions			Other		Total
Beginning balance	$	—		$	10,000	$	10,000
Transfers into Level 3		—			10		10
Transfers out of Level 3		—			—		—
Total gains or losses:
Included in net income		—			—		—
Included in other comprehensive income (loss)		—			—		—
Purchases, issuances, sales and settlements:
Purchases		—			—		—
Issuances		—			—		—
Sales		—			—		—
Settlements		—			—		—
Ending balance	$	—		$	10,010	$	10,010
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets and liabilities still held at the reporting date	$	—		$	—	$	—
	Three months ended March 31, 2022
	Obligation of State and Political Subdivisions			Other		Total
Beginning balance	$	99		$	—	$	99
Transfers into Level 3		—			—		—
Transfers out of Level 3		—			—		—
Total gains or losses:
Included in net income		—			—		—
Included in other comprehensive income (loss)		—			—		—
Purchases, issuances, sales and settlements:
Purchases		—			—		—
Issuances		—			—		—
Sales		—			—		—
Settlements		(99	)		—		(99	)
Ending balance	$	—		$	—	$	—
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets and liabilities still held at the reporting date	$	—		$	—	$	—

Assets Measured at Fair Value on a Nonrecurring Basis

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at March 31, 2023 and December 31, 2022 (in thousands):

	Fair Value Measurements Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
March 31, 2023
Collateral dependent loans	$	1,158	$	—	$	—	$	1,158
Foreclosed assets held for sale		151		—		—		151
December 31, 2022
Collateral dependent loans	$	2,548	$	—	$	—	$	2,548
Foreclosed assets held for sale		—		—		—		—

Significant Unobservable Inputs Used in Valuation of Level 3 Fair Value Measurements

The following table presents quantitative information about unobservable inputs used in Level 3 fair value measurements other than goodwill at March 31, 2023 and December 31, 2022.

March 31, 2023	Fair Value		Valuation Technique	Unobservable Inputs	Range	Weighted Average
Collateral dependent loans	$	1,158	Third party valuations	Discount to reflect realizable value	0% - 40%	20%
Foreclosed assets held for sale		151	Third party valuations	Discount to reflect realizable value less estimated selling costs	0% - 40%	35%

December 31, 2022	Fair Value		Valuation Technique	Unobservable Inputs	Range	Weighted Average
Collateral dependent loans	$	2,548	Third party valuations	Discount to reflect realizable value	0% - 40%	20%

Summary of Estimated Fair Values of Company Financial Instruments

The following tables present estimated fair values of the Company’s financial instruments at March 31, 2023 and December 31, 2022 in accordance with ASC 825 (in thousands):

	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
March 31, 2023
Financial assets
Cash and due from banks	$	161,236	$	161,236	$	161,236	$	—	$	—
Federal funds sold		7,898		7,898		7,898		—		—
Certificates of deposit investments		1,715		1,715		—		1,715		—
Available-for-sale securities		1,212,698		1,212,698		—		1,202,698		10,000
Held-to-maturity securities		2,979		2,979		2,979		—		—
Equity securities		362		362		362		—		—
Loans held for sale		999		999		—		999		—
Loans net of allowance for credit losses		4,701,409		4,497,336		—		—		4,497,336
Interest receivable		28,729		28,729		—		28,729		—
Federal Reserve Bank stock		17,050		17,050		—		17,050		—
Federal Home Loan Bank stock		23,365		23,365		—		23,365		—
Financial liabilities
Deposits	$	5,030,778	$	5,024,415	$	—	$	4,200,115	$	824,300
Securities sold under agreements to repurchase		228,664		228,486		—		228,486		—
Interest payable		4,732		4,732		—		4,732		—
Federal Home Loan Bank borrowings		595,021		591,398		—		591,398		—
Subordinated debt, net		94,593		89,944		—		89,944		—
Junior subordinated debentures, net		19,406		17,186		—		17,186		—
December 31, 2022
Financial assets
Cash and due from banks	$	144,806	$	144,806	$	144,806	$	—	$	—
Federal funds sold		7,627		7,627		7,627		—		—
Certificates of deposit investments		1,470		1,470		—		1,470		—
Available-for-sale securities		1,218,986		1,218,986		—		1,209,736		9,250
Held-to-maturity securities		2,953		2,953		2,953		—		—
Equity securities		311		311		311		—		—
Loans held for sale		338		338		—		338		—
Loans net of allowance for credit losses		4,766,780		4,460,661		—		—		4,460,661
Interest receivable		28,357		28,357		—		28,357		—
Federal Reserve Bank stock		17,050		17,050		—		17,050		—
Federal Home Loan Bank stock		18,440		18,440		—		18,440		—
Financial liabilities
Deposits	$	5,257,001	$	5,257,748	$	—	$	4,550,222	$	707,526
Federal funds purchased		—		—		—		—		—
Securities sold under agreements to repurchase		221,414		221,260		—		221,260		—
Interest payable		3,346		3,346		—		3,346		—
Federal Home Loan Bank borrowings		465,071		459,327		—		459,327		—
Other borrowings		—		—		—		—		—
Subordinated debt, net		94,553		87,977		—		87,977		—
Junior subordinated debentures, net		19,364		17,164		—		17,164		—