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

12 Months Ended

Dec. 31, 2021

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, 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, residential	—		237,975		—		237,975
Collateralized mortgage obligations, residential	—		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


December 31, 2020	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	$	9,392	$	55,610	$	—	$	65,002
Mortgage-backed securities	—		228,156		—		228,156
Collateralized mortgage obligations	—		209,038		—		209,038
Mortgage-backed securities, multifamily	—		1,944		—		1,944
Collateralized mortgage obligations, multifamily	—		41,535		—		41,535
Asset-backed securities	—		40,690		—		40,690
Obligations of states and political subdivisions	—		233,710		—		233,710
Corporate debt securities	—		35,671		—		35,671
Total securities available for sale	9,392		846,354		—		855,746
Equity securities, at fair value	—		14,694		—		14,694
Derivative assets	—		80,734		—		80,734
Total Assets	$	9,392	$	941,782	$	—	$	951,174
Liabilities:
Derivative liabilities	$	—	$	80,877	$	—	$	80,877
Total Liabilities	$	—	$	80,877	$	—	$	80,877

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


December 31, 2020	(Level 1)		(Level 2)		(Level 3)		Total Fair Value
(in thousands)
Assets:
Individually evaluated loans	$	—	$	—	$	2,417	$	2,417

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, 2021 and December 31, 2020:


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		—
Collateralized mortgage obligations, multifamily	—		—		—		—		—
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


December 31, 2020	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	$	25,565	$	26,344	$	—	$	26,344	$	—
Mortgage-backed securities, residential	39,276		40,733		—		40,733		—
Collateralized mortgage obligations, residential	14,590		15,122		—		15,122		—
Mortgage-backed securities, multifamily	705		759		—		759		—

Obligations of states and political subdivisions	10,630		10,910		—		10,910		—

Total investment securities held to maturity, net	90,766		93,868		—		93,868		—
Federal Home Loan and other membership bank stock	11,979		11,979		—		11,979		—
Loans, net	5,950,108		5,939,413		—		—		5,939,413
Financial Liabilities:
Certificates of deposit	1,078,256		1,077,620		—		1,077,620		—
Other borrowings	25,000		25,206		—		25,206		—
Subordinated debentures	118,257		118,208		—		—		118,208