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

12 Months Ended

Dec. 31, 2023

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, 2023	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	$	147,484	$	172,285	$	—	$	319,769
Mortgage-backed securities, residential	—		286,417		—		286,417
Collateralized mortgage obligations, residential	—		137,070		—		137,070
Mortgage-backed securities, multifamily	—		676		—		676
Collateralized mortgage obligations, multifamily	—		42,496		—		42,496
Asset-backed securities	—		43,693		—		43,693
Obligations of states and political subdivisions	—		19,128		—		19,128
Corporate debt securities	—		97,033		—		97,033
Total securities available for sale	147,484		798,798		—		946,282
Equity securities, at fair value	—		17,697		—		17,697
Derivative assets	—		87,566		—		87,566
Total Assets	$	147,484	$	904,061	$	—	$	1,051,545
Liabilities:
Derivative liabilities	$	—	$	87,570	$	—	$	87,570
Total Liabilities	$	—	$	87,570	$	—	$	87,570


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	—		310,613		—		310,613
Collateralized mortgage obligations	—		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

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, 2023

(Level 1)

(Level 2)

(Level 3)

Total Fair Value

(in thousands)

Assets:

Individually evaluated loans

—


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

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, 2023 and December 31, 2022.


December 31, 2023	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	$	10,406	$	9,914	$	—	$	9,914	$	—
Mortgage-backed securities, residential	332,509		280,426		—		280,426		—
Collateralized mortgage obligations, residential	12,243		9,447		—		9,447		—
Mortgage-backed securities, multifamily	4,145		3,494		—		3,494		—

Obligations of states and political subdivisions	474,195		396,859		—		396,859		—
Corporate bonds	2,879		2,423		—		2,423		—
Total investment securities held to maturity, net	836,377		702,563		—		702,563		—
Federal Home Loan and other membership bank stock	52,517		52,517		—		52,517		—
Loans, net of allowance for credit losses	8,266,698		7,714,736		—		—		7,714,736
Financial Liabilities:
Certificates of deposit	1,967,448		1,953,446		—		1,953,446		—
Other borrowings	325,000		333,878		—		333,878		—
Subordinated debentures	194,705		149,063		—		—		149,063


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 of allowance for credit losses	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