Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2024

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, 2024
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Trading	$	2,868	$	—	$	—	$	2,868
Available-for-sale
U.S. treasury and government agencies		—		766		—		766
Mortgage backed securities
Residential agency		—		407,788		—		407,788
Commercial		—		1,353		—		1,353
Asset backed securities		—		21		—		21
Corporate bonds		—		49,417		—		49,417
Total available-for-sale investment securities	$	—	$	459,345	$	—	$	459,345
Other assets
Derivatives	$	—	$	9,770	$	—	$	9,770
Other liabilities
Derivatives	$	—	$	6,798	$	—	$	6,798

	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

	June 30, 2024
(dollars in thousands)	Level 1		Level 2		Level 3		Total
Collateral dependent loans	$	—	$	—	$	16,869	$	16,869
Servicing rights		—		—		2,082		2,082

	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		—		—		2,062		2,062

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

			June 30, 2024
(dollars in thousands)							Weighted
Asset Type	Valuation Technique	Unobservable Input	Fair Value		Range		Average
Individually evaluated	Appraisal value	Property specific adjustment	$	16,869	10.0	%	10.0	%
Servicing rights	Discounted cash flows	Prepayment speed assumptions		2,082	82-189		105
		Discount rate			11.1	%	11.1	%

			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		2,062	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

	June 30, 2024
	Carrying		Estimated Fair Value
(dollars in thousands)	Amount		Level 1		Level 2		Level 3		Total
Financial Assets
Cash and cash equivalents	$	438,141	$	438,141	$	—	$	—	$	438,141
Investment securities held-to-maturity		286,532		—		243,689		—		243,689
Loans, net		2,877,460		—		—		2,753,648		2,753,648
Accrued interest receivable		16,877		16,877		—		—		16,877
Bank-owned life insurance		35,508		—		35,508		—		35,508
Financial Liabilities
Noninterest-bearing deposits	$	701,428	$	—	$	701,428	$	—	$	701,428
Interest-bearing deposits		2,105,802		—		2,105,802		—		2,105,802
Time deposits		491,345		—		496,430		—		496,430
Short-term borrowings		555,000		555,000		—		—		555,000
Long-term debt		59,013		—		58,067		—		58,067
Accrued interest payable		14,947		14,947		—		—		14,947

	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