Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value of Assets and Liabilities

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

	March 31, 2023
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Available-for-sale
U.S. treasury and government agencies	$	—	$	3,267	$	—	$	3,267
Mortgage backed securities
Residential agency		—		581,619		—		581,619
Commercial		—		62,771		—		62,771
Asset backed securities		—		32		—		32
Corporate bonds		—		58,136		—		58,136
Total available-for-sale investment securities	$	—	$	705,825	$	—	$	705,825
Other assets
Derivatives	$	—	$	5,705	$	—	$	5,705
Other liabilities
Derivatives	$	—	$	7,176	$	—	$	7,176

	December 31, 2022
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Available-for-sale
U.S. treasury and government agencies	$	—	$	3,520	$	—	$	3,520
Mortgage backed securities
Residential agency		—		587,679		—		587,679
Commercial		—		63,558		—		63,558
Asset backed securities		—		34		—		34
Corporate bonds		—		62,533		—		62,533
Total available-for-sale investment securities	$	—	$	717,324	$	—	$	717,324
Other assets
Derivatives	$	—	$	6,405	$	—	$	6,405
Other liabilities
Derivatives	$	—	$	6,303	$	—	$	6,303

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

	March 31, 2023
(dollars in thousands)	Level 2		Level 3		Total		Impairment
Loans held for sale	$	16,900	$	—	$	16,900	$	—
Individually evaluated		—		2,390		2,390		288
Servicing rights		—		2,421		2,421		—

	December 31, 2022
(dollars in thousands)	Level 2		Level 3		Total		Impairment
Loans held for sale	$	9,488	$	—	$	9,488	$	—
Individually evaluated		—		2,813		2,813		954
Foreclosed assets		—		30		30		—
Servicing rights		—		2,643		2,643		—

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

			March 31, 2023
(dollars in thousands)							Weighted
Asset Type	Valuation Technique	Unobservable Input	Fair Value		Range		Average
Individually evaluated	Appraisal value	Property specific adjustment	$	2,390	N/A		N/A
Foreclosed assets	Appraisal value	Property specific adjustment		—	N/A		N/A
Servicing rights	Discounted cash flows	Prepayment speed assumptions		2,421	103-134		113
		Discount rate			10.5	%	10.5	%

			December 31, 2022
(dollars in thousands)							Weighted
Asset Type	Valuation Technique	Unobservable Input	Fair Value		Range		Average
Individually evaluated	Appraisal value	Property specific adjustment	$	2,813	N/A		N/A
Foreclosed assets	Appraisal value	Property specific adjustment		30	N/A		N/A
Servicing rights	Discounted cash flows	Prepayment speed assumptions		2,643	103-137		115
		Discount rate			10.5	%	10.5	%

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

	March 31, 2023
	Carrying		Estimated Fair Value
(dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial Assets
Cash and cash equivalents	$	145,181	$	145,181	$	—	$	—	$	145,181
Investment securities held-to-maturity		313,871		—		267,874		—		267,874
Loans, net		2,451,523		—		—		2,366,306		2,366,306
Accrued interest receivable		12,983		12,983		—		—		12,983
Bank-owned life insurance		32,583		—		32,583		—		32,583
Financial Liabilities
Noninterest-bearing deposits	$	792,977	$	—	$	792,977	$	—	$	792,977
Interest-bearing deposits		1,993,583		—		1,993,583		—		1,993,583
Time deposits		245,418		—		—		242,109		242,109
Short-term borrowings		372,145		372,145		—		—		372,145
Long-term debt		58,872		—		56,200		—		56,200
Accrued interest payable		1,410		1,410		—		—		1,410

	December 31, 2022
	Carrying		Estimated Fair Value
(dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial Assets
Cash and cash equivalents	$	58,242	$	58,242	$	—	$	—	$	58,242
Investment securities held-to-maturity		321,902		—		270,912		—		270,912
Loans, net		2,412,848		—		—		2,311,956		2,311,956
Accrued interest receivable		12,869		12,869		—		—		12,869
Bank-owned life insurance		33,991		—		33,991		—		33,991
Financial Liabilities
Noninterest-bearing deposits	$	860,987	$	—	$	860,987	$	—	$	860,987
Interest-bearing deposits		1,842,138		—		1,842,138		—		1,842,138
Time deposits		212,359		—		—		208,550		208,550
Short-term borrowings		378,080		378,080		—		—		378,080
Long-term debt		58,843		—		56,116		—		56,116
Accrued interest payable		2,426		2,426		—		—		2,426