Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2023

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, 2023
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Available-for-sale
U.S. treasury and government agencies	$	—	$	2,906	$	—	$	2,906
Mortgage backed securities
Residential agency		—		558,456		—		558,456
Commercial		—		60,909		—		60,909
Asset backed securities		—		28		—		28
Corporate bonds		—		55,155		—		55,155
Total available-for-sale investment securities	$	—	$	677,454	$	—	$	677,454
Other assets
Derivatives	$	—	$	6,853	$	—	$	6,853
Other liabilities
Derivatives	$	—	$	8,118	$	—	$	8,118

	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

	June 30, 2023
(dollars in thousands)	Level 2		Level 3		Total		Impairment
Loans held for sale	$	20,893	$	—	$	20,893	$	—
Individually evaluated		—		2,390		2,390		288
Servicing rights		—		2,351		2,351		—

	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

			June 30, 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		2,351	83-134		101
		Discount rate			11.0	%	11.0	%

			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

	June 30, 2023
	Carrying		Estimated Fair Value
(dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial Assets
Cash and cash equivalents	$	65,471	$	65,471	$	—	$	—	$	65,471
Investment securities held-to-maturity		308,416		—		260,710		—		260,710
Loans, net		2,497,826		—		—		2,403,819		2,403,819
Accrued interest receivable		13,587		13,587		—		—		13,587
Bank-owned life insurance		32,793		—		32,793		—		32,793
Financial Liabilities
Noninterest-bearing deposits	$	715,534	$	—	$	715,534	$	—	$	715,534
Interest-bearing deposits		1,833,154		—		1,833,154		—		1,833,154
Time deposits		304,167		—		—		300,375		300,375
Short-term borrowings		492,060		492,060		—		—		492,060
Long-term debt		58,900		—		56,008		—		56,008
Accrued interest payable		2,960		2,960		—		—		2,960

	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