Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 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

	September 30, 2022
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Available-for-sale
U.S. treasury and government agencies	$	—	$	3,833	$	—	$	3,833
Mortgage backed securities
Residential agency		—		596,989		—		596,989
Commercial		—		65,283		—		65,283
Asset backed securities		—		35		—		35
Corporate bonds		—		62,970		—		62,970
Total available-for-sale investment securities	$	—	$	729,110	$	—	$	729,110
Other assets
Derivatives	$	—	$	7,970	$	—	$	7,970
Other liabilities
Derivatives	$	—	$	6,742	$	—	$	6,742

	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

	September 30, 2022
(dollars in thousands)	Level 2		Level 3		Total		Impairment
Loans held for sale	$	26,129	$	—	$	26,129	$	—
Impaired loans		—		4,813		4,813		264
Foreclosed assets		—		904		904		—
Servicing rights		—		2,780		2,780		—

	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

			September 30, 2022
(dollars in thousands)							Weighted
Asset Type	Valuation Technique	Unobservable Input	Fair Value		Range		Average
Impaired loans	Appraisal value	Property specific adjustment	$	4,813	N/A		N/A
Foreclosed assets	Appraisal value	Property specific adjustment		904	N/A		N/A
Servicing rights	Discounted cash flows	Prepayment speed assumptions		2,780	100-136		112
		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

	September 30, 2022
	Carrying		Estimated Fair Value
(dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial Assets
Cash and cash equivalents	$	54,167	$	54,167	$	—	$	—	$	54,167
Investment securities held-to-maturity		326,410		—		273,306		—		273,306
Loans, net		2,287,263		—		—		2,256,887		2,256,887
Accrued interest receivable		11,256		11,256		—		—		11,256
Bank-owned life insurance		33,777		—		33,777		—		33,777
Financial Liabilities
Noninterest-bearing deposits	$	905,228	$	—	$	905,228	$	—	$	905,228
Interest-bearing deposits		1,834,556		—		1,834,556		—		1,834,556
Time deposits		222,027		—		—		217,974		217,974
Short-term borrowings		253,830		253,830		—		—		253,830
Long-term debt		58,836		—		55,480		—		55,480
Accrued interest payable		1,405		1,405		—		—		1,405

	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