Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2024

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 September 30, 2024 and December 31, 2023 (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)
September 30, 2024
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	194,169	$	—	$	194,169	$	—
Obligations of states and political subdivisions		280,444		—		280,444		—
Mortgage-backed securities		576,849		—		576,849		—
Other securities		64,090		—		58,123		5,967
Total available-for-sale securities		1,115,552		—		1,109,585		5,967
Equity securities		4,424		4,424		—		—
Loans held for sale		8,085		—		8,085		—
Derivative assets: interest rate swaps		2,339		—		2,339		—
Total assets	$	1,130,400	$	4,424	$	1,120,009	$	5,967
Derivative liabilities: interest rate swaps	$	1,755	$	—	$	1,755	$	—
December 31, 2023
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies	$	211,656	$	—	$	211,656	$	—
Obligations of states and political subdivisions		288,616		—		288,616		—
Mortgage-backed securities		602,300		—		602,300		—
Other securities		69,000		—		62,837		6,163
Total available-for-sale securities		1,171,572		—		1,165,409		6,163
Equity securities		4,074		4,074		—		—
Loans held for sale		4,980		—		4,980		—
Derivative assets: interest rate swaps		3,166		—		3,166		—
Total assets	$	1,183,792	$	4,074	$	1,173,555	$	6,163
Derivative liabilities: interest swaps	$	2,217	$	—	$	2,217	$	—

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 and nine months ended September 30, 2024 and 2023 is summarized as follows (in thousands):

	Three months ended September 30, 2024						Nine months ended September 30, 2024
	Obligation of State and Political Subdivisions		Other		Total		Obligation of State and Political Subdivisions		Other			Total
Beginning balance	$	—	$	5,966	$	5,966	$	—	$	6,163		$	6,163
Transfers into Level 3		—		1		1		—		3			3
Maturities		—		—		—		—		(199	)		(199	)
Ending balance	$	—	$	5,967	$	5,967	$	—	$	5,967		$	5,967
	Three months ended September 30, 2023						Nine months ended September 30, 2023
	Obligation of State and Political Subdivisions		Other		Total		Obligation of State and Political Subdivisions		Other			Total
Beginning balance	$	—	$	5,760	$	5,760	$	—	$	10,000		$	10,000
Transfers into Level 3		—		—		—		—		10			10
Transfers out of Level 3		—		—		—		—		(4,250	)		(4,250	)
Ending balance	$	—	$	5,760	$	5,760	$	—	$	5,760		$	5,760

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 September 30, 2024 and December 31, 2023 (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)
September 30, 2024
Collateral dependent loans	$	579	$	—	$	—	$	579
Foreclosed assets held for sale		47		—		—		47
December 31, 2023
Collateral dependent loans	$	1,028	$	—	$	—	$	1,028
Foreclosed assets held for sale		24		—		—		24

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 September 30, 2024 and December 31, 2023.

September 30, 2024	Fair Value	Valuation Technique	Unobservable Inputs	Range	Weighted Average
Collateral dependent loans	$579	Third party valuations	Discount to reflect realizable value less estimated selling costs	0% - 40%	20%
Foreclosed assets held for sale	47	Third party valuations	Discount to reflect realizable value less estimated selling costs	0% - 40%	35%

December 31, 2023	Fair Value		Valuation Technique	Unobservable Inputs	Range	Weighted Average
Collateral dependent loans	$	1,028	Third party valuations	Discount to reflect realizable value	0% - 40%	20%
Foreclosed assets held for sale		24	Third party valuations	Discount to reflect realizable value less estimated selling costs	0% - 40%	35%

Summary of Estimated Fair Values of Company Financial Instruments

The following tables present estimated fair values of the Company’s financial instruments at September 30, 2024 and December 31, 2023 in accordance with ASC 825 (in thousands):

	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
September 30, 2024
Financial assets
Cash and due from banks	$	164,165	$	164,165	$	164,165	$	—	$	—
Federal funds sold		26		26		26		—		—
Certificates of deposit investments		3,500		3,500		—		3,500		—
Available-for-sale securities		1,115,552		1,115,552		—		1,109,585		5,967
Held-to-maturity securities		2,298		2,298		2,298		—		—
Equity securities		4,424		4,424		4,424		—		—
Loans held for sale		8,085		8,085		—		8,085		—
Loans net of allowance for credit losses		5,537,732		5,228,689		—		—		5,228,689
Interest receivable		38,387		38,387		—		38,387		—
Federal Reserve Bank stock		19,855		19,855		—		19,855		—
Federal Home Loan Bank stock		9,555		9,555		—		9,555		—
Financial liabilities
Deposits	$	6,088,834	$	6,007,297	$	—	$	5,053,589	$	953,708
Securities sold under agreements to repurchase		204,343		204,343		—		204,343		—
Interest payable		6,491		6,491		—		6,491		—
Federal Home Loan Bank borrowings		238,712		238,911		—		238,911		—
Subordinated debt, net		87,373		85,637		—		104,836		—
Junior subordinated debentures, net		24,224		21,076		—		21,076		—
December 31, 2023
Financial assets
Cash and due from banks	$	134,082	$	134,082	$	134,082	$	—	$	—
Federal funds sold		8,982		8,982		8,982		—		—
Certificates of deposit investments		1,470		1,470		—		1,470		—
Available-for-sale securities		1,171,572		1,171,572		—		1,165,409		6,163
Held-to-maturity securities		2,286		2,286		2,286		—		—
Equity securities		4,074		4,074		4,074		—		—
Loans held for sale		4,980		4,980		—		4,980		—
Loans net of allowance for credit losses		5,506,910		5,235,525		—		—		5,235,525
Interest receivable		35,082		35,082		—		35,082		—
Federal Reserve Bank stock		19,855		19,855		—		19,855		—
Federal Home Loan Bank stock		9,758		9,758		—		9,758		—
Financial liabilities
Deposits	$	6,123,659	$	6,042,277	$	—	$	5,076,066	$	966,211
Securities sold under agreements to repurchase		213,721		213,714		—		213,714		—
Interest payable		5,437		5,437		—		5,437		—
Federal Home Loan Bank borrowings		263,787		261,206		—		261,206		—
Subordinated debentures		106,755		102,018		—		102,018		—
Junior subordinated debentures		24,058		21,524		—		21,524		—