Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value of Assets and Liabilities

Summary of balances of the assets and liabilities measured at estimated fair value on a recurring basis

	June 30, 2022
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Available-for-sale
U.S. treasury and government agencies	$	—	$	3,709	$	—	$	3,709
Mortgage backed securities
Residential agency		—		652,507		—		652,507
Commercial		—		76,130		—		76,130
Asset backed securities		—		40		—		40
Corporate bonds		—		66,411		—		66,411
Total available-for-sale investment securities	$	—	$	798,797	$	—	$	798,797
Other assets
Derivatives	$	—	$	7,180	$	—	$	7,180
Other liabilities
Derivatives	$	—	$	4,851	$	—	$	4,851

	December 31, 2021
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Available-for-sale
U.S. treasury and government agencies	$	—	$	5,103	$	—	$	5,103
Mortgage backed securities
Residential agency		—		707,157		—		707,157
Commercial		—		90,913		—		90,913
Asset backed securities		—		54		—		54
Corporate bonds		—		50,422		—		50,422
Total available-for-sale investment securities	$	—	$	853,649	$	—	$	853,649
Other assets
Derivatives	$	—	$	3,397	$	—	$	3,397
Other liabilities
Derivatives	$	—	$	1,368	$	—	$	1,368

Schedule of net impairment losses related to nonrecurring estimated fair value measurements of certain assets

	June 30, 2022
(dollars in thousands)	Level 2		Level 3		Total		Impairment
Loans held for sale	$	54,363	$	—	$	54,363	$	—
Impaired loans		—		3,854		3,854		858
Foreclosed assets		—		860		860		—
Servicing rights		—		2,064		2,064		—

	December 31, 2021
(dollars in thousands)	Level 2		Level 3		Total		Impairment
Loans held for sale	$	46,490	$	—	$	46,490	$	—
Impaired loans		—		2,469		2,469		283
Foreclosed assets		—		885		885		—
Servicing rights		—		1,880		1,880		—

Schedule of valuation techniques and significant unobservable inputs used to measure Level 3 estimated fair values

			June 30, 2022
(dollars in thousands)							Weighted
Asset Type	Valuation Technique	Unobservable Input	Fair Value		Range		Average
Impaired loans	Appraisal value	Property specific adjustment	$	3,854	N/A		N/A
Foreclosed assets	Appraisal value	Property specific adjustment		860	N/A		N/A
Servicing rights	Discounted cash flows	Prepayment speed assumptions		2,064	109-155		119
		Discount rate			10.0	%	10.0	%

			December 31, 2021
(dollars in thousands)							Weighted
Asset Type	Valuation Technique	Unobservable Input	Fair Value		Range		Average
Impaired loans	Appraisal value	Property specific adjustment	$	2,469	N/A		N/A
Foreclosed assets	Appraisal value	Property specific adjustment		885	N/A		N/A
Servicing rights	Discounted cash flows	Prepayment speed assumptions		1,880	161-327		237
		Discount rate			9.5	%	9.5	%

Summary of estimated fair values and related carrying or notional amounts, of the Company's financial instruments

	June 30, 2022
	Carrying		Estimated Fair Value
(dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial Assets
Cash and cash equivalents	$	37,043	$	37,043	$	—	$	—	$	37,043
Investment securities held-to-maturity		331,741		—		293,949		—		293,949
Loans, net		1,858,870		—		—		1,848,251		1,848,251
Accrued interest receivable		9,155		9,155		—		—		9,155
Bank-owned life insurance		33,564		—		33,564		—		33,564
Financial Liabilities
Noninterest-bearing deposits	$	764,808	$	—	$	764,808	$	—	$	764,808
Interest-bearing deposits		1,654,291		—		1,654,291		—		1,654,291
Time deposits		200,451		—		—		198,278		198,278
Short-term borrowings		242,350		242,350		—		—		242,350
Long-term debt		58,870		—		86,271		—		86,271
Accrued interest payable		802		802		—		—		802

	December 31, 2021
	Carrying		Estimated Fair Value
(dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial Assets
Cash and cash equivalents	$	242,311	$	242,311	$	—	$	—	$	242,311
Investment securities held-to-maturity		352,061		—		349,677		—		349,677
Loans, net		1,726,448		—		—		1,760,784		1,760,784
Accrued interest receivable		8,537		8,537		—		—		8,537
Bank-owned life insurance		33,156		—		33,156		—		33,156
Financial Liabilities
Noninterest-bearing deposits	$	938,840	$	—	$	938,840	$	—	$	938,840
Interest-bearing deposits		1,748,799		—		1,748,799		—		1,748,799
Time deposits		232,912		—		—		232,970		232,970
Long-term debt		58,933		—		57,772		—		57,772
Accrued interest payable		1,674		1,674		—		—		1,674