Fair Value Measurement and Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.


December 31, 2022	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
(in thousands)
Assets:
Investment securities, available for sale
U.S. Treasury and government agencies	$	162,438	$	193,201	$	—	$	355,639
Mortgage-backed securities, residential	—		310,613		—		310,613
Collateralized mortgage obligations, residential	—		154,058		—		154,058
Mortgage-backed securities, multifamily	—		785		—		785
Collateralized mortgage obligations, multifamily	—		46,333		—		46,333
Asset-backed securities	—		52,395		—		52,395
Obligations of states and political subdivisions	—		21,122		—		21,122
Corporate debt securities	—		113,367		—		113,367
Total securities available for sale	162,438		891,874		—		1,054,312
Equity securities, at fair value	—		17,283		—		17,283
Derivative assets	—		97,848		—		97,848
Total Assets	$	162,438	$	1,007,005	$	—	$	1,169,443
Liabilities:
Derivative liabilities	$	—	$	97,848	$	—	$	97,848
Total Liabilities	$	—	$	97,848	$	—	$	97,848


December 31, 2021	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
(in thousands)
Assets:
Investment securities, available for sale
U.S. Treasury and government agencies	$	104,861	$	98,526	$	—	$	203,387
Mortgage-backed securities	—		237,975		—		237,975
Collateralized mortgage obligations	—		191,291		—		191,291
Mortgage-backed securities, multifamily	—		1,741		—		1,741
Collateralized mortgage obligations, multifamily	—		32,519		—		32,519
Asset-backed securities	—		52,584		—		52,584

Corporate debt securities	—		50,459		—		50,459
Total securities available for sale	104,861		665,095		—		769,956
Equity securities, at fair value	—		17,368		—		17,368
Derivative assets	—		43,799		—		43,799
Total Assets	$	104,861	$	726,262	$	—	$	831,123
Liabilities:
Derivative liabilities	$	—	$	43,799	$	—	$	43,799
Total Liabilities	$	—	$	43,799	$	—	$	43,799

Fair Value of Financial Assets Measured on Non-recurring Basis

The following table summarized the Company’s financial assets that are measured at fair value on a non-recurring basis. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.


December 31, 2022	(Level 1)		(Level 2)		(Level 3)		Total Fair Value
(in thousands)
Assets:
Individually evaluated loans	$	—	$	—	$	4,489	$	4,489


December 31, 2021	(Level 1)		(Level 2)		(Level 3)		Total Fair Value
(in thousands)
Assets:
Individually evaluated loans	$	—	$	—	$	7,113	$	7,113

Carrying Values and Fair Values of Company's Financial Instruments

The following table summarized the carrying values, fair values and placement in the fair value hierarchy of the Company’s financial instruments as of December 31, 2022 and December 31, 2021.


December 31, 2022	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(in thousands)
Financial Assets:
Investment securities held to maturity
U.S. Treasury and U.S. government agencies	$	11,099	$	10,385	$	—	$	10,385	$	—
Mortgage-backed securities, residential	360,683		302,612		—		302,612		—
Collateralized mortgage obligations, residential	13,026		10,456		—		10,456		—
Mortgage-backed securities, multifamily	5,094		4,347		—		4,347		—

Obligations of states and political subdivisions	530,506		430,108		—		428,635		1,473
Corporate bonds	2,900		2,547		—		2,547		—
Total investment securities held to maturity, net	923,308		760,455		—		758,982		1,473
Federal Home Loan and other membership bank stock	42,483		42,483		—		42,483		—
Loans, net	7,795,786		7,561,997		—		—		7,561,997
Financial Liabilities:
Certificates of deposit	1,208,177		1,174,230		—		1,174,230		—
Other borrowings	25,000		23,001		—		23,001		—
Subordinated debentures	194,264		160,933		—		—		160,933


December 31, 2021	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
(in thousands)
Financial Assets:
Investment securities held to maturity
U.S. Treasury and U.S. government agencies	$	18,672	$	18,965	$	—	$	18,965	$	—
Mortgage-backed securities, residential	370,247		364,976		—		364,976		—
Collateralized mortgage obligations, residential	13,921		14,089		—		14,089		—
Mortgage-backed securities, multifamily	2,710		2,734		—		2,734		—

Obligations of states and political subdivisions	416,566		411,576		—		410,744		832
Corporate bonds	2,840		2,871		—		2,871		—
Total investment securities held to maturity, net	824,956		815,211		—		814,379		832
Federal Home Loan and other membership bank stock	9,049		9,049		—		9,049		—
Loans, net	5,918,101		5,900,876		—		—		5,900,876
Financial Liabilities:
Certificates of deposit	759,227		753,483		—		753,483		—
Other borrowings	25,000		24,604		—		24,604		—
Subordinated debentures	179,043		175,243		—		—		175,243