FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2022

FAIR VALUE MEASUREMENTS

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

	September 30, 2022
	Level 1		Level 2		Level 3		Total
(in thousands)	Inputs		Inputs		Inputs		Fair Value
Available for sale securities:
Mortgage-backed securities:
US Government-sponsored enterprises	$	—	$	216,024	$	—	$	216,024
US Government agency		—		83,526		—		83,526
Private label		—		66,769		—		66,769
Obligations of states and political subdivisions thereof		—		104,652		—		104,652
Corporate bonds		—		85,781		—		85,781
Loans held for sale		—		982		—		982
Derivative assets		—		31,964		8		31,972
Derivative liabilities		—		(27,084)		—		(27,084)

	December 31, 2021
	Level 1		Level 2		Level 3		Total
(in thousands)	Inputs		Inputs		Inputs		Fair Value
Available for sale securities:
Mortgage-backed securities:
US Government-sponsored enterprises	$	—	$	236,117	$	—	$	236,117
US Government agency		—		79,637		—		79,637
Private label		—		68,695		—		68,695
Obligations of states and political subdivisions thereof		—		141,776		—		141,776
Corporate bonds		—		92,051		—		92,051
Loans held for sale		—		5,523		—		5,523
Derivative assets		—		13,850		298		14,148
Derivative liabilities		—		(15,257)		—		(15,257)

Schedule of Changes in Level 3 Assets Measured on a Recurring Basis

	Assets (Liabilities)
	Interest Rate Lock		Forward
(in thousands)	Commitments		Commitments
Three Months Ended September 30, 2022
Balance at beginning of period	$	50	$	(11)
Realized gain (loss) recognized in non-interest income		(50)		19
Balance at end of period	$	—	$	8
Three Months Ended September 30, 2021
Balance at beginning of period	$	25	$	(45)
Realized (loss) gain recognized in non-interest income		22		(95)
Balance at end of period	$	47	$	(140)
Nine Months Ended September 30, 2022
Balance at beginning of period	$	283	$	15
Realized loss recognized in non-interest income		(283)		(7)
Balance at end of period	$	—	$	8
Nine Months Ended September 30, 2021
Balance at beginning of period	$	22	$	(95)
Realized gain recognized in non-interest income		25		(45)
Balance at end of period	$	47	$	(140)

Schedule of Changes in Level 3 Liabilities Measured on a Recurring Basis

	Assets (Liabilities)
	Interest Rate Lock		Forward
(in thousands)	Commitments		Commitments
Three Months Ended September 30, 2022
Balance at beginning of period	$	50	$	(11)
Realized gain (loss) recognized in non-interest income		(50)		19
Balance at end of period	$	—	$	8
Three Months Ended September 30, 2021
Balance at beginning of period	$	25	$	(45)
Realized (loss) gain recognized in non-interest income		22		(95)
Balance at end of period	$	47	$	(140)
Nine Months Ended September 30, 2022
Balance at beginning of period	$	283	$	15
Realized loss recognized in non-interest income		(283)		(7)
Balance at end of period	$	—	$	8
Nine Months Ended September 30, 2021
Balance at beginning of period	$	22	$	(95)
Realized gain recognized in non-interest income		25		(45)
Balance at end of period	$	47	$	(140)

Schedule of Quantitative Information, Valuation, Recurring

	Fair Value				Significant
	September 30,		Valuation	Unobservable	Unobservable
(in thousands, except ratios)	2022		Techniques	Inputs	Input Value
Assets (Liabilities)
Interest Rate Lock Commitment	$	—	Pull-through Rate Analysis	Closing Ratio		—	%
			Pricing Model	Origination Costs, per loan	$	—
			Discount Cash Flows	Mortgage Servicing Asset		—	%
Forward Commitments		8	Quoted prices for similar loans in active markets	Freddie Mac pricing system		$97.2 to $101.4
Total	$	8
	Fair Value				Significant
	December 31,		Valuation	Unobservable	Unobservable
(in thousands, except ratios)	2021		Techniques	Inputs	Input Value
Assets (Liabilities)
Interest Rate Lock Commitment	$	283	Pull-through Rate Analysis	Closing Ratio		85	%
			Pricing Model	Origination Costs, per loan	$	1.7
			Discount Cash Flows	Mortgage Servicing Asset		1.0	%
Forward Commitments		15	Quoted prices for similar loans in active markets	Freddie Mac pricing system		$99.8 to $103.2
Total	$	298

Summary of Applicable Non-Recurring Fair Value Measurements

	September 30, 2022		December 31, 2021		Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022		Fair Value Measurement Date as of September 30, 2022
	Level 3		Level 3		Total		Total		Level 3
(in thousands)	Inputs		Inputs		Gains (Losses)		Gains (Losses)		Inputs
Assets
Individually evaluated loans	$	15,388	$	17,932	$	1,778	$	(2,544)	September 2022
Capitalized servicing rights		7,127		5,263		84		1,864	September 2022
Premises held for sale		327		226		—		101	February 2022
Total	$	22,842	$	23,421	$	1,862	$	(579)

Schedule of Quantitative Information, Valuation, Non-recurring

(in thousands, except ratios)	Fair Value September 30, 2022		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)(a)
Assets
Individually evaluated loans	$	10,903	Fair value of collateral-appraised value	Loss severity		10% to 70%
				Appraised value		$80 to $1,175
Individually evaluated loans		4,485	Discount cash flow	Discount rate		2.88% to 6.45%
				Cash flows		$4 to $925
Capitalized servicing rights		7,127	Discounted cash flow	Constant prepayment rate (CPR)		7.10%
				Discount rate		9.54%
Premises held for sale		327	Fair value of asset less selling costs	Appraised value		$347
				Selling Costs		6%
Total	$	22,842

(a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individual properties.

(in thousands, except ratios)	Fair Value December 31, 2021		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)(a)
Assets
Individually evaluated loans	$	12,127	Fair value of collateral-appraised value	Loss severity		10% to 70%
				Appraised value		$71 to $1,792
Individually evaluated loans		5,805	Discount cash flow	Discount rate		2.88% to 9.50%
				Cash flows		$6 to $931
Capitalized servicing rights		5,263	Discounted cash flow	Constant prepayment rate (CPR)		12.47%
				Discount rate		9.53%
Premises held for sale		226	Fair value of asset less selling costs	Appraised value		$240
				Selling Costs		6%
Total	$	23,421

(a) Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individual properties.

Summary of Estimated Fair Values, and Related Carrying Amounts, of Financial Instruments

	September 30, 2022
	Carrying		Fair
(in thousands)	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	82,065	$	82,065	$	82,065	$	—	$	—
Securities available for sale		556,752		556,752		—		556,752		—
FHLB stock		9,035		9,035		—		9,035		—
Loans held for sale		987		982		—		982		—
Net loans		2,850,364		2,783,612		—		—		2,783,612
Accrued interest receivable		4,053		4,053		—		4,053		—
Cash surrender value of bank-owned life insurance policies		80,758		80,758		—		80,758		—
Derivative assets		31,973		31,973		—		31,973		8
Financial Liabilities
Non-maturity deposits	$	2,801,432	$	2,616,000	$	—	$	2,616,000	$	—
Time deposits		334,248		330,059		—		330,059		—
Securities sold under agreements to repurchase		18,916		18,916		—		18,916		—
FHLB advances		169,841		169,459		—		169,459		—
Subordinated borrowings		60,248		57,744		—		57,744		—
Derivative liabilities		27,084		27,084		—		27,084		—

	December 31, 2021
	Carrying		Fair
(in thousands)	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	250,389	$	250,389	$	250,389	$	—	$	—
Securities available for sale		618,276		618,276		—		618,276		—
FHLB stock		7,384		7,384		—		7,384		—
Loans held for sale		5,523		5,523		—		5,523		—
Net loans		2,509,192		2,442,741		—		—		2,442,741
Accrued interest receivable		2,712		2,712		—		2,712		—
Cash surrender value of bank-owned life insurance policies		79,020		79,020		—		79,020		—
Derivative assets		14,148		14,148		—		13,850		298
Financial Liabilities
Non-maturity deposits	$	2,623,012	$	2,853,000	$	—	$	2,853,000	$	—
Time deposits		425,532		424,000		—		424,000		—
Securities sold under agreements to repurchase		19,802		19,802		—		19,802		—
FHLB advances		98,598		98,439		—		98,439		—
Subordinated borrowings		60,124		61,884		—		61,884		—
Derivative liabilities		15,257		15,257		—		15,257		—