Fair Value of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2024

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, 2024
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Trading	$	4,553	$	—	$	—	$	4,553
Available-for-sale
U.S. treasury and government agencies		—		838		—		838
Mortgage backed securities
Residential agency		—		420,893		—		420,893
Commercial		—		1,351		—		1,351
Asset backed securities		—		22		—		22
Corporate bonds		—		49,168		—		49,168
Total available-for-sale investment securities	$	—	$	472,272	$	—	$	472,272
Other assets
Derivatives	$	—	$	9,027	$	—	$	9,027
Other liabilities
Derivatives	$	—	$	6,318	$	—	$	6,318

	December 31, 2023
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Available-for-sale
U.S. treasury and government agencies	$	—	$	1,120	$	—	$	1,120
Mortgage backed securities
Residential agency		—		435,594		—		435,594
Commercial		—		1,353		—		1,353
Asset backed securities		—		25		—		25
Corporate bonds		—		48,644		—		48,644
Total available-for-sale investment securities	$	—	$	486,736	$	—	$	486,736
Other assets
Derivatives	$	—	$	8,512	$	—	$	8,512
Other liabilities
Derivatives	$	—	$	9,180	$	—	$	9,180

Schedule of estimated fair value measurements of certain assets

	March 31, 2024
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Collateral dependent loans	$	—	$	—	$	4,033	$	4,033
Foreclosed assets		—		—		3		3
Servicing rights		—		—		1,983		1,983

	December 31, 2023
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Collateral dependent loans	$	—	$	—	$	3,998	$	3,998
Foreclosed assets		—		—		32		32
Servicing rights		—		—		2,052		2,052

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

			March 31, 2024
(dollars in thousands)							Weighted
Asset Type	Valuation Technique	Unobservable Input	Fair Value		Range		Average
Individually evaluated	Appraisal value	Property specific adjustment	$	4,033	10.0	%	10.0	%
Foreclosed assets	Appraisal value	Property specific adjustment (1)		3	N/A		N/A
Servicing rights	Discounted cash flows	Prepayment speed assumptions		1,983	82-172		103
		Discount rate			11.1	%	11.1	%

(1) There were no discounts taken on the collateral that comprises the balance of foreclosed assets as of March 31, 2024.

			December 31, 2023
(dollars in thousands)							Weighted
Asset Type	Valuation Technique	Unobservable Input	Fair Value		Range		Average
Individually evaluated	Appraisal value	Property specific adjustment	$	3,998	10.0	%	10.0	%
Foreclosed assets	Appraisal value	Property specific adjustment (1)		32	N/A		N/A
Servicing rights	Discounted cash flows	Prepayment speed assumptions		2,052	85-151		104
		Discount rate			11.1	%	11.1	%

(1) There were no discounts taken on the collateral that comprises the balance of foreclosed assets as of December 31, 2023.

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

	March 31, 2024
	Carrying		Estimated Fair Value
(dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial Assets
Cash and cash equivalents	$	545,772	$	545,772	$	—	$	—	$	545,772
Investment securities held-to-maturity		291,932		—		249,807		—		249,807
Loans, net		2,762,891		—		—		2,623,566		2,623,566
Accrued interest receivable		16,149		16,149		—		—		16,149
Bank-owned life insurance		33,396		—		33,396		—		33,396
Financial Liabilities
Noninterest-bearing deposits	$	692,500	$	—	$	692,500	$	—	$	692,500
Interest-bearing deposits		2,135,740		—		2,135,740		—		2,135,740
Time deposits		456,729		—		454,272		—		454,272
Short-term borrowings		555,000		555,000		—		—		555,000
Long-term debt		58,985		—		57,983		—		57,983
Accrued interest payable		11,304		11,304		—		—		11,304

	December 31, 2023
	Carrying		Estimated Fair Value
(dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial Assets
Cash and cash equivalents	$	129,893	$	129,893	$	—	$	—	$	129,893
Investment securities held-to-maturity		299,728		—		258,617		—		258,617
Loans, net		2,723,740		—		—		2,590,535		2,590,535
Accrued interest receivable		15,700		15,700		—		—		15,700
Bank-owned life insurance		33,236		—		33,236		—		33,236
Financial Liabilities
Noninterest-bearing deposits	$	728,082	$	—	$	728,082	$	—	$	728,082
Interest-bearing deposits		1,955,967		—		1,955,967		—		1,955,967
Time deposits		411,562		—		408,910		—		408,910
Short-term borrowings		314,170		314,170		—		—		314,170
Long-term debt		58,956		—		57,437		—		57,437
Accrued interest payable		6,826		6,826		—		—		6,826