Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 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

	September 30, 2023
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Available-for-sale
U.S. treasury and government agencies	$	—	$	2,665	$	—	$	2,665
Mortgage backed securities
Residential agency		—		521,623		—		521,623
Commercial		—		58,685		—		58,685
Asset backed securities		—		27		—		27
Corporate bonds		—		57,001		—		57,001
Total available-for-sale investment securities	$	—	$	640,001	$	—	$	640,001
Other assets
Derivatives	$	—	$	12,193	$	—	$	12,193
Other liabilities
Derivatives	$	—	$	6,820	$	—	$	6,820

	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 related to nonrecurring estimated fair value measurements of certain assets

	September 30, 2023
(dollars in thousands)	Level 1		Level 2		Level 3		Total		Impairment
Loans held for sale	$	—	$	16,346	$	—	$	16,346	$	—
Individually evaluated		—		—		2,390		2,390		288
Servicing rights		—		—		2,214		2,214		—

	December 31, 2022
(dollars in thousands)	Level 1		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

			September 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		3	N/A		N/A
Servicing rights	Discounted cash flows	Prepayment speed assumptions		2,214	84-125		101
		Discount rate			11.1	%	11.1	%

			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

	September 30, 2023
	Carrying		Estimated Fair Value
(dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial Assets
Cash and cash equivalents	$	64,724	$	64,724	$	—	$	—	$	64,724
Investment securities held-to-maturity		303,268		—		248,239		—		248,239
Loans, net		2,570,140		—		—		2,451,993		2,451,993
Accrued interest receivable		15,561		15,561		—		—		15,561
Bank-owned life insurance		33,012		—		33,012		—		33,012
Financial Liabilities
Noninterest-bearing deposits	$	717,990	$	—	$	717,990	$	—	$	717,990
Interest-bearing deposits		1,807,259		—		1,807,259		—		1,807,259
Time deposits		346,935		—		—		343,600		343,600
Short-term borrowings		515,470		515,470		—		—		515,470
Long-term debt		58,928		—		55,076		—		55,076
Accrued interest payable		5,358		5,358		—		—		5,358

	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