FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2023

FAIR VALUE MEASUREMENTS

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

	March 31, 2023
	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	$	—	$	214,300	$	—	$	214,300
US Government agency		—		80,938		—		80,938
Private label		—		58,500		—		58,500
Obligations of states and political subdivisions thereof		—		111,165		—		111,165
Corporate bonds		—		92,137		—		92,137
Loans held for sale		—		463		—		463
Derivative assets		—		24,534		8		24,542
Derivative liabilities		—		(20,568)		—		(20,568)

	December 31, 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	$	—	$	215,027	$	—	$	215,027
US Government agency		—		82,266		—		82,266
Private label		—		60,154		—		60,154
Obligations of states and political subdivisions thereof		—		107,737		—		107,737
Corporate bonds		—		94,332		—		94,332
Loans held for sale		—		—		—		—
Derivative assets		—		30,039		—		30,039
Derivative liabilities		—		(25,228)		—		(25,228)

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 March 31, 2023
Balance at beginning of period	$	—	$	—
Realized loss recognized in non-interest income		8		—
Balance at end of period	$	8	$	—
Three Months Ended March 31, 2022
Balance at beginning of period	$	283	$	15
Realized gain recognized in non-interest income		(288)		186
Balance at end of period	$	(5)	$	201

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 March 31, 2023
Balance at beginning of period	$	—	$	—
Realized loss recognized in non-interest income		8		—
Balance at end of period	$	8	$	—
Three Months Ended March 31, 2022
Balance at beginning of period	$	283	$	15
Realized gain recognized in non-interest income		(288)		186
Balance at end of period	$	(5)	$	201

Schedule of Quantitative Information, Valuation, Recurring

	Fair Value
(in thousands,	March 31,		Valuation	Unobservable	Unobservable
except ratios)	2023		Techniques	Inputs	Input Value
Assets (Liabilities)
Interest Rate Lock Commitment	$	8	Pull-through Rate Analysis	Closing Ratio		76	%
			Pricing Model	Origination Costs, per loan	$	1.7
			Discount Cash Flows	Mortgage Servicing Asset		1.0	%
Total	$	8

Summary of Applicable Non-Recurring Fair Value Measurements

	March 31, 2023		December 31, 2022		March 31, 2023		Fair Value Measurement Date as of March 31, 2023
	Level 3		Level 3		Total		Level 3
(in thousands)	Inputs		Inputs		Gains (Losses)		Inputs
Assets
Individually evaluated loans	$	15,513	$	16,477	$	(964)	March 2023
Capitalized servicing rights		6,570		6,845		(275)	March 2023
Premises held for sale		252		252		—	March 2023
Total	$	22,335	$	23,574	$	(1,239)

Schedule of Quantitative Information, Valuation, Non-recurring

(in thousands, except ratios)	Fair Value March 31, 2023		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)(a)
Assets
Individually evaluated loans	$	11,945	Fair value of collateral-appraised value	Loss severity		10% to 70%
				Appraised value		$80 to $2,941
Individually evaluated loans		3,568	Discount cash flow	Discount rate		3.38% to 6.38%
				Cash flows		$3 to $707
Capitalized servicing rights		6,570	Discounted cash flow	Constant prepayment rate		7.19%
				Discount rate		9.54%
Premises held for sale		252	Fair value of asset less selling costs	Appraised value		$267
				Selling Costs		6%
Total	$	22,335

(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, 2022		Valuation Techniques	Unobservable Inputs	Range (Weighted Average)(a)
Assets
Individually evaluated loans	$	13,587	Fair value of collateral-appraised value	Loss severity		1% to 40%
				Appraised value		$80 to $3,859
Individually evaluated loans		2,890	Discount cash flow	Discount rate		3.63% to 6.38%
				Cash flows		$100 to $539
Capitalized servicing rights		6,845	Discounted cash flow	Constant prepayment rate		7.29%
				Discount rate		9.54%
Premises held for sale		252	Fair value of asset less selling costs	Appraised value		$267
				Selling Costs		6%
Total	$	23,574

(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

	March 31, 2023
	Carrying		Fair
(in thousands)	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	82,702	$	82,702	$	82,702	$	—	$	—
Securities available for sale		557,040		557,040		—		557,040		—
FHLB stock		15,718		15,718		—		15,718		—
Loans held for sale		463		463		—		463		—
Net loans		2,917,398		2,789,397		—		—		2,789,397
Accrued interest receivable		4,747		4,747		—		4,747		—
Cash surrender value of bank-owned life insurance policies		78,436		8,436		—		8,436		—
Derivative assets		24,542		24,542		—		24,534		8
Financial Liabilities
Non-maturity deposits	$	2,649,568	$	2,306,918	$	—	$	2,306,918	$	—
Time deposits		404,246		395,594		—		395,594		—
Securities sold under agreements to repurchase		12,733		12,733		—		12,733		—
FHLB advances		325,511		325,334		—		325,334		—
Subordinated borrowings		60,330		66,981		—		66,981		—
Derivative liabilities		20,568		20,568		—		20,568		—

	December 31, 2022
	Carrying		Fair
(in thousands)	Amount		Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	92,295	$	92,295	$	92,295	$	—	$	—
Securities available for sale		559,516		559,516		—		559,516		—
FHLB stock		14,893		14,893		—		14,893		—
Loans held for sale		—		—		—		—		—
Net loans		2,902,690		2,774,863		—		—		2,774,863
Accrued interest receivable		4,257		4,257		—		4,257		—
Cash surrender value of bank-owned life insurance policies		81,197		81,197		—		81,197		—
Derivative assets		30,039		30,039		—		30,039		—
Financial Liabilities
Non-maturity deposits	$	2,719,992	$	2,309,555	$	—	$	2,309,555	$	—
Time deposits		323,439		315,180		—		315,180		—
Securities sold under agreements to repurchase		13,369		13,369		—		13,369		—
FHLB advances		320,588		320,244		—		320,244		—
Subordinated borrowings		60,289		66,846		—		66,846		—
Derivative liabilities		25,228		25,228		—		25,228		—