Fair Value (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value

Schedule of assets and liabilities measured at fair value

	September 30, 2023
	Fair Value Measurements Using
	Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
U.S. Government agencies	$	—	$	89,933	$	—	$	89,933
Mortgage Backed Securities-residential		—		556,690		—		556,690
Mortgage Backed Securities-commercial		—		7,284		—		7,284
Collateralized mortgage obligations		—		180,956		—		180,956
State and municipal		—		351,373		1,180		352,553
Municipal taxable		—		32,628		—		32,628
U.S. Treasury		—		2,151		—		2,151
Collateralized debt obligations		—		—		3,024		3,024
TOTAL	$	—	$	1,221,015	$	4,204	$	1,225,219
Derivative Assets				3,608
Derivative Liabilities				(3,608)

	December 31, 2022
	Fair Value Measurements Using
	Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
U.S. Government agencies	$	—	$	98,473	$	—	$	98,473
Mortgage Backed Securities-residential		—		620,248		—		620,248
Mortgage Backed Securities-commercial		—		9,677		—		9,677
Collateralized mortgage obligations		—		203,485		—		203,485
State and municipal		—		358,608		1,545		360,153
Municipal taxable		—		32,515		—		32,515
U.S. Treasury		—		2,944		—		2,944
Collateralized debt obligations		—		—		2,986		2,986
TOTAL	$	—	$	1,325,950	$	4,531	$	1,330,481
Derivative Assets				2,838
Derivative Liabilities				(2,838)

Schedule of fair value measurements using significant unobservable inputs

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended
	September 30, 2023
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, July 1	$	1,180	$	2,941	$	4,121
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		83		83
Transfers		—		—		—
Settlements		—		—		—
Ending balance, September 30	$	1,180	$	3,024	$	4,204

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Nine Months Ended
	September 30, 2023
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, January 1	$	1,545	$	2,986	$	4,531
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		38		38
Transfers		—		—		—
Settlements		(365)		—		(365)
Ending balance, September 30	$	1,180	$	3,024	$	4,204

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Year Ended
	December 31, 2022
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Total
Beginning balance, January 1	$	1,895	$	3,359	$	5,254
Total realized/unrealized gains or losses
Included in earnings		—		—		—
Included in other comprehensive income		—		(373)		(373)
Purchases		—		—		—
Settlements		(350)		—		(350)
Ending balance, December 31	$	1,545	$	2,986	$	4,531

Quantitative information about recurring and non-recurring Level 3

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at September 30, 2023.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	1,180	Discounted cash flow	Discount rate	4.04%-4.44	%
Collateralized debt obligations	$	3,024	Discounted cash flow	Discount rate	7.22	%
Collateral dependent loans	$	1,812	Discounted cash flow	Discount rate for age of appraisal and market conditions	0.00%-50.00	%

The following table presents quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2022.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	1,545	Discounted cash flow	Discount rate	3.73%-4.44	%
Collateralized debt obligations	$	2,986	Discounted cash flow	Discount rate	5.34	%
Collateral dependent loans		4,477	Discounted cash flow	Discount rate for age of appraisal and market conditions	0.00%-50.00	%

Schedule of carrying amount and estimated fair value of financial instruments

	September 30, 2023
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	74,668	$	25,257	$	49,411	$	—	$	74,668
Federal funds sold		688		—		688		—		688
Securities available-for-sale		1,225,219		—		1,221,015		4,204		1,225,219
Restricted stock		15,398		n/a		n/a		n/a		n/a
Loans, net		3,078,592		—		—		2,901,310		2,901,310
Accrued interest receivable		22,546		—		6,837		15,709		22,546
Deposits		(4,040,995)		—		(4,035,772)		—		(4,035,772)
Short-term borrowings		(132,734)		—		(132,734)		—		(132,734)
Other borrowings		(84,578)		—		(84,614)		—		(84,614)
Accrued interest payable		(1,929)		—		(1,929)		—		(1,929)

	December 31, 2022
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	222,517	$	29,400	$	193,117	$	—	$	222,517
Federal funds sold		9,374		—		9,374		—		9,374
Securities available-for-sale		1,330,481		—		1,325,950		4,531		1,330,481
Restricted stock		15,378		n/a		n/a		n/a		n/a
Loans, net		3,027,659		—		—		2,930,680		2,930,680
Accrued interest receivable		21,288		—		5,529		15,759		21,288
Deposits		(4,368,871)		—		(4,369,402)		—		(4,369,402)
Short-term borrowings		(70,875)		—		(70,875)		—		(70,875)
Other borrowings		(9,589)		—		(8,788)		—		(8,788)
Accrued interest payable		(483)		—		(483)		—		(483)