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FAIR VALUES OF ASSETS AND LIABILITIES (Tables)
12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Schedule of Assets Measured at Fair Value on a Recurring Basis
The following table presents the Company’s securities that are measured at fair value on a recurring basis and the level within the hierarchy in which the fair value measurements fell as of December 31, 2022 and 2021:
December 31, 2022Fair Value Measurements
($ in thousands)Fair ValueQuoted Prices in
Active Markets
For
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets:
Available-for-sale
U.S. Treasury$123,854 $123,854 $— $— 
Obligations of U.S. government agencies and sponsored entities144,369 — 144,369 — 
Municipal securities457,857 — 442,740 15,117 
Mortgage-backed Securities490,139 — 490,139 — 
Corporate obligations40,882 — 40,851 31 
Total investment securities available-for-sale$1,257,101 $123,854 $1,118,099 $15,148 
Loans held for sale4,443 — 4,443 — 
Interest rate swaps$12,825 $— $12,825 $— 
Liabilities:
Interest rate swaps$12,825 $— $12,825 $— 
December 31, 2021Fair Value Measurements
($ in thousands)Fair ValueQuoted Prices in
Active Markets
For
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets:
Available-for-sale
U.S. Treasury$135,158 $135,158 $— $— 
Obligations of U.S. government agencies and sponsored entities183,021 — 183,021 — 
Municipal securities708,502 — 688,379 20,123 
Mortgage-backed securities688,298 — 688,298 — 
Corporate obligations36,853 — 36,810 43 
Total investment securities available-for-sale$1,751,832 $135,158 $1,596,508 $20,166 
Loans held for sale$7,678 $— $7,678 $— 
Schedule of Reconciliation of Activity for Assets Measured at Fair Value Based on Significant Unobservable Inputs (Level 3)
The following is a reconciliation of activity for assets measured at fair value based on significant unobservable (Level 3) information:
Bank-Issued Trust
Preferred Securities
($ in thousands)20222021
Balance, January 1 $43 $235 
Paydowns(12)(215)
Gain included in income— 27 
Unrealized (loss) included in comprehensive income— (4)
Balance, December 31
$31 $43 
Municipal Securities
($ in thousands)20222021
Balance, January 1 $20,123 $20,126 
Purchases— 6,019 
Maturities, calls and paydowns(2,328)(5,457)
Unrealized (loss) gain included in comprehensive income (2,678)(565)
Balance, December 31
$15,117$20,123
Schedule of Quantitative Information about Recurring Level 3 Fair Value Measurements
The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at December 31, 2022 and 2021. The following tables present quantitative information about recurring Level 3 fair value measurements ($ in thousands):
Trust Preferred SecuritiesFair ValueValuation TechniqueSignificant Unobservable
Inputs
Range of Inputs
December 31, 2022$31 Discounted cash flowDiscount rate
6.98% - 7.19%
December 31, 2021$43 Discounted cash flowDiscount rate
2.35% - 2.47%
Municipal SecuritiesFair ValueValuation TechniqueSignificant Unobservable
Inputs
Range of Inputs
December 31, 2022$15,117Discounted cash flowDiscount rate
3.00% - 4.00%
December 31, 2021$20,123Discounted cash flowDiscount rate
0.50% - 1.90%
Schedule of Fair Value Measurement of Assets Measured at Fair Value on a Non-Recurring Basis and the Level Within the Fair Value Hierarchy
The following table presents the fair value measurement of assets and liabilities measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements were reported at December 31, 2022 and 2021:
Fair Value Measurements Using
($ in thousands)Fair ValueQuoted Prices in
Active Markets
For
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
December 31, 2022
Collateral dependent loans $5,552 $— $— $5,552 
Other real estate owned4,832 — — 4,832 
December 31, 2021
Collateral dependent loans$3,564 $— $— $3,564 
Other real estate owned2,565 — — 2,565 
Schedule of Estimated Fair Values
Fair Value Measurements
December 31, 2022Carrying
Amount
Estimated
Fair Value
Quoted
Prices
(Level 1)
Significant
Other Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
($ in thousands)
Financial Instruments:
Assets:
Cash and cash equivalents$145,315 $145,315 $145,315 $— $— 
Securities available-for-sale1,257,101 1,257,101 123,854 1,118,099 15,148 
Securities held-to-maturity691,484 642,097 — 642,097 — 
Loans held for sale4,443 4,443 — 4,443 — 
Loans, net3,735,240 3,681,313 — — 3,681,313 
Accrued interest receivable27,723 27,723 — 9,757 17,966 
Interest rate swaps12,825 12,825 — 12,825 — 
Liabilities:
Non-interest-bearing deposits$1,630,203 $1,630,203 $— $1,630,203 $— 
Interest-bearing deposits3,864,201 3,505,990 — 3,505,990 — 
Subordinated debentures145,027 133,816 — — 133,816 
FHLB and other borrowings130,100 130,100 — 130,100 — 
Accrued interest payable3,324 3,324 — 3,324 — 
Interest rate swaps12,825 12,825 — 12,825 — 
Fair Value Measurements
December 31, 2021Carrying
Amount
Estimated
Fair Value
Quoted
Prices
(Level 1)
Significant
Other Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
($ in thousands)
Financial Instruments:
Assets:
Cash and cash equivalents$919,713 $919,713 $919,713 $— $— 
Securities available-for-sale1,751,832 1,751,832 135,158 1,596,508 20,166 
Loans held for sale7,678 7,678 — 7,678 — 
Loans, net2,928,811 2,956,278 — — 2,956,278 
Accrued interest receivable23,256 23,256 — 6,838 16,418 
Liabilities:
Non-interest-bearing deposits$756,118 $756,118 $— $756,118 $— 
Interest-bearing deposits4,470,666 4,431,771 — 4,431,771 — 
Subordinated debentures144,726 156,952 — — 156,952 
Accrued interest payable1,711 1,711 — 1,711 —