Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Assets Measured at Fair Value on a Recurring and Non-Recurring Basis

The following tables present for each of the fair-value hierarchy levels the Company’s assets that are measured at fair value on a recurring and nonrecurring basis as of the dates indicated (in thousands).

	Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
March 31, 2024
Measured on a recurring basis:
Securities available for sale:
U.S. Government agency and government sponsored enterprises	$	—	$	21,752		$	—	$	21,752
U.S. Treasury bills		—		64,697			—		64,697
Mortgage-backed securities		—		837,312			—		837,312
Other assets:
Hedging derivative instruments		—		6,835			—		6,835
Fair value adjusted through comprehensive income	$	—	$	930,596		$	—	$	930,596
Other assets:
Derivative instruments – interest rate swaps		—		44,173			—		44,173
Derivative instruments – mortgage banking		—		221			—		221
Other liabilities:
Derivative instruments – interest rate swaps		—		(44,175	)		—		(44,175	)
Derivative instruments – mortgage banking		—		(5	)		—		(5	)
Fair value adjusted through net income	$	—	$	214		$	—	$	214
Measured on a nonrecurring basis:
Loans:
Loans held for sale	$	—	$	504		$	—	$	504
Collateral dependent loans		—		—			30,754		30,754
Other assets:
Long-lived assets held for sale		—		—			629		629
Loan servicing rights		—		—			1,382		1,382
Other real estate owned		—		—			140		140
Total	$	—	$	504		$	32,905	$	33,409

There were no transfers between Levels 1 and 2 during the three months ended March 31, 2024. There were no liabilities measured at fair value on a nonrecurring basis during the three months ended March 31, 2024.

	Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
December 31, 2023
Measured on a recurring basis:
Securities available for sale:
U.S. Government agencies and government sponsored enterprises	$	—	$	21,811		$	—	$	21,811
Mortgage-backed securities		—		865,919			—		865,919
Other assets:
Hedging derivative instruments		—		5,939			—		5,939
Fair value adjusted through comprehensive income	$	—	$	893,669		$	—	$	893,669
Other assets:
Derivative instruments – interest rate products	$	—	$	37,517		$	—	$	37,517
Derivative instruments – mortgage banking		—		50			—		50
Other liabilities:
Derivative instruments – interest rate products		—		(37,519	)		—		(37,519	)
Derivative instruments – mortgage banking		—		(2	)		—		(2	)
Fair value adjusted through net income	$	—	$	46		$	—	$	46
Measured on a nonrecurring basis:
Loans:
Loans held for sale	$	—	$	1,370		$	—	$	1,370
Collateral dependent loans		—		—			37,516		37,516
Other assets:
Long-lived assets held for sale		—		—			629		629
Loan servicing rights		—		—			1,382		1,382
Other real estate owned		—		—			142		142
Total	$	—	$	1,370		$	39,669	$	41,039

Additional Quantitative Information about Assets Measured at Fair Value on Recurring and Non-Recurring Basis

The following table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value as of March 31, 2024 (dollars in thousands).

Asset	Fair Value		Valuation Technique	Unobservable Input	Unobservable Input Value or Range
Collateral dependent loans	$	30,754	Appraisal of collateral (1)	Appraisal adjustments (2)	44.6%(3) / 0 - 91.7%
Loan servicing rights	$	1,382	Discounted cash flow	Discount rate	10.2% (3)
				Constant prepayment rate	12.8% (3)
Long-lived assets held for sale	$	629	Appraisal of collateral (1)	Appraisal adjustments (2)	12.4 - 46.3%
Other real estate owned	$	140	Appraisal of collateral (1)	Appraisal adjustments (2)	35.7 - 47.7%

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.

(3) Weighted averages.

Carrying Amount, Estimated Fair Value, and Placement in Fair Value Hierarchy of Financial Instruments

The following table presents (in thousands) the carrying amount, estimated fair value, and placement in the fair value measurement hierarchy of the Company’s financial instruments as of the dates indicated.

	Level in	March 31, 2024				December 31, 2023
	Fair Value			Estimated				Estimated
	Measurement	Carrying		Fair		Carrying		Fair
	Hierarchy	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	Level 1	$	237,038	$	237,038	$	124,442	$	124,442
Securities available for sale	Level 2		923,761		923,761		887,730		887,730
Securities held to maturity, net	Level 2		143,714		131,269		148,156		137,030
Loans held for sale	Level 2		504		504		1,370		1,370
Loans	Level 2		4,368,217		4,160,389		4,373,541		4,143,918
Loans (1)	Level 3		30,754		30,754		37,516		37,516
Long-lived assets held for sale	Level 3		629		629		629		629
Accrued interest receivable	Level 1		24,914		24,914		24,481		24,481
Derivative instruments – cash flow hedges	Level 2		6,835		6,835		5,939		5,939
Derivative instruments – interest rate products	Level 2		44,173		44,173		37,517		37,517
Derivative instruments – mortgage banking	Level 2		221		221		50		50
FHLB and FRB stock	Level 2		15,042		15,042		17,406		17,406
Financial liabilities:
Non-maturity deposits	Level 1		3,836,171		3,836,171		3,808,216		3,808,216
Time deposits	Level 2		1,560,586		1,553,489		1,404,696		1,398,352
Short-term borrowings	Level 1		133,000		133,000		185,000		185,000
Long-term borrowings	Level 2		124,610		127,022		124,532		128,363
Accrued interest payable	Level 1		27,224		27,224		19,412		19,412
Derivative instruments – interest rate products	Level 2		44,175		44,175		37,519		37,519
Derivative instruments – mortgage banking	Level 2		5		5		2		2

(1) Comprised of collateral dependent loans.