Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2023

Summary of fair value measurement on recurring and nonrecurring basis segregated by level of valuation inputs within fair value hierarchy utilized to measure fair value

The following tables summarize assets measured at fair value on a recurring and nonrecurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands):



			Fair Value Measurements at the End of the Reporting Period Using
June 30, 2023	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring fair value measurements
Investment securities:
U.S. Treasury	$	298,998	$	298,998	$	—	$	—

State and political subdivisions	770,283		—		770,283		—
Corporate bonds and other	12,991		—		12,991		—
MBS: (1)
Residential	247,233		—		247,233		—
Commercial	10,316		—		10,316		—
Equity investments:
Equity investments	5,235		5,235		—		—
Derivative assets:
Interest rate swaps	87,699		—		87,699		—
Total asset recurring fair value measurements	$	1,432,755	$	304,233	$	1,128,522	$	—

Derivative liabilities:
Interest rate swaps	$	21,282	$	—	$	21,282	$	—
Total liability recurring fair value measurements	$	21,282	$	—	$	21,282	$	—

Nonrecurring fair value measurements
Foreclosed assets	$	42	$	—	$	—	$	42
Collateral-dependent loans (2)	7,539		—		—		7,539
Total asset nonrecurring fair value measurements	$	7,581	$	—	$	—	$	7,581



			Fair Value Measurements at the End of the Reporting Period Using
December 31, 2022	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Recurring fair value measurements
Investment securities:


State and political subdivisions	$	964,852	$	—	$	964,852	$	—
Corporate bonds and other	8,704		—		8,704		—
MBS: (1)
Residential	315,027		—		315,027		—
Commercial	10,431		—		10,431		—
Equity investments:
Equity investments	5,235		5,235		—		—
Derivative assets:
Interest rate swaps	82,306		—		82,306		—
Total asset recurring fair value measurements	$	1,386,555	$	5,235	$	1,381,320	$	—

Derivative liabilities:
Interest rate swaps	$	21,217	$	—	$	21,217	$	—
Total liability recurring fair value measurements	$	21,217	$	—	$	21,217	$	—

Nonrecurring fair value measurements
Foreclosed assets	$	167	$	—	$	—	$	167
Collateral-dependent loans (2)	7,815		—		—		7,815

Total asset nonrecurring fair value measurements	$	7,982	$	—	$	—	$	7,982

(1)All MBS are issued and/or guaranteed by U.S. government agencies or U.S. GSEs.

(2)Consists of individually evaluated loans. Loans for which the fair value of the collateral and commercial real estate fair value of the properties is less than cost basis are presented net of allowance. Losses on these loans represent charge-offs which are netted against the allowance for loan losses.

Financial assets, financial liabilities, and unrecognized financial instruments at carrying amount and fair value

The following tables present our financial assets and financial liabilities measured on a nonrecurring basis at both their respective carrying amounts and estimated fair value (in thousands):


			Estimated Fair Value
June 30, 2023	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	207,113	$	207,113	$	207,113	$	—	$	—
Investment securities:
HTM, at carrying value	1,184,922		1,035,925		—		1,035,925		—
MBS:
HTM, at carrying value	123,550		112,890		—		112,890		—
FHLB stock, at cost	10,801		10,801		—		10,801		—
Equity investments	4,337		4,337		—		4,337		—
Loans, net of allowance for loan losses	4,292,740		3,989,515		—		—		3,989,515
Loans held for sale	1,666		1,666		—		1,666		—
Financial liabilities:
Deposits	$	6,117,687	$	6,081,139	$	—	$	6,081,139	$	—
Other borrowings	500,341		502,199		—		502,199		—
FHLB borrowings	183,007		169,942		—		169,942		—
Subordinated notes, net of unamortized debt issuance costs	93,796		85,323		—		85,323		—
Trust preferred subordinated debentures, net of unamortized debt issuance costs	60,267		54,964		—		54,964		—


			Estimated Fair Value
December 31, 2022	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	199,252	$	199,252	$	199,252	$	—	$	—
Investment securities:
HTM, at carrying value	1,190,108		1,023,376		—		1,023,376		—
Mortgage-backed securities:
HTM, at carrying value	136,621		125,780		—		125,780		—
FHLB stock, at cost	9,190		9,190		—		9,190		—
Equity investments	5,946		5,946		—		5,946		—
Loans, net of allowance for loan losses	4,111,176		3,880,664		—		—		3,880,664
Loans held for sale	667		667		—		667		—
Financial liabilities:
Deposits	$	6,198,019	$	6,158,517	$	—	$	6,158,517	$	—
Other borrowings	221,153		221,153		—		221,153		—
FHLB borrowings	153,358		140,976		—		140,976		—
Subordinated notes, net of unamortized debt issuance costs	98,674		91,357		—		91,357		—
Trust preferred subordinated debentures, net of unamortized debt issuance costs	60,265		60,594		—		60,594		—