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FAIR VALUE DISCLOSURES AND REPORTING, THE FAIR VALUE OPTION AND FAIR VALUE MEASUREMENTS (Tables)
9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of Estimated Fair Values
Estimated fair values for the Company’s financial instruments are as follows, as of the dates noted:
September 30, 2023Carrying
Amount
Estimated
Fair Value
Fair Value Measurements
($ in thousands)
Quoted Prices
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Financial Instruments:
Assets:
Cash and cash equivalents$197,632 $197,632 $197,632 $— $— 
Securities available-for-sale1,141,971 1,141,971 124,694 997,753 19,524 
Securities held-to-maturity658,524 582,592 — 582,592 — 
Loans held for sale5,960 5,960 — 5,960 — 
Loans, net5,036,235 4,851,597 — — 4,851,597 
Accrued interest receivable30,542 30,542 — 8,112 22,430 
  Interest rate swaps14,869 14,869 — 14,869 — 
Liabilities:
Noninterest-bearing deposits$1,967,661 $1,967,661 $— $1,967,661 $— 
Interest-bearing deposits4,512,364 4,225,829 — 4,225,829 — 
Subordinated debentures128,300 106,391 — — 106,391 
FHLB and other borrowings302,000 302,000 — 302,000 — 
Accrued interest payable13,800 13,800 — 13,800 — 
  Interest rate swaps14,880 14,880 — 14,869 11 
December 31, 2022Carrying
Amount
Estimated
Fair Value
Fair Value Measurements
($ in thousands)
Quoted
Prices
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
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 $— 
Interest-bearing deposits3,864,201 3,505,990 — 3,505,990 — 
Subordinated debentures145,027 133,816 — — 133,816 
FHLB and other borrowings130,100 130,100 — 130,100 — 
Accrued interest payable3,324 3,324 — 3,324 — 
Interest rate swaps12,825 12,825 — 12,825 — 
Schedule of Assets Measured at Fair Value on a Recurring Basis
Assets measured at fair value on a recurring basis are summarized below:
September 30, 2023
($ in thousands)Fair ValueFair Value Measurements Using
Quoted 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$124,694 $124,694 $— $— 
Obligations of U.S. Government agencies and sponsored entities125,364 — 125,364 — 
Municipal securities419,678 — 400,185 19,493 
Mortgage-backed securities433,956 — 433,956 — 
Corporate obligations37,279 — 37,248 31 
Other1,000 — 1,000 — 
Total available-for-sale$1,141,971 $124,694 $997,753 $19,524 
Loans held for sale$5,960 $— $5,960 $— 
Interest rate swaps$14,869 $— $14,869 $— 
Liabilities:
Interest rate swaps$14,880 $— $14,869 $11 
December 31, 2022
($ in thousands)
Fair ValueFair Value Measurements Using
Quoted Prices in
Active Markets
For
Identical Assets
(Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
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 available-for-sale$1,257,101 $123,854 $1,118,099 $15,148 
Loans held for sale$4,443 $— $4,443 $— 
Interest rate swaps$12,825 $— $12,825 $— 
Liabilities:
Interest rate swaps$12,825 $— $12,825 $— 
Schedule of Reconciliation of Activity for Assets Measured at Fair Value Based on Significant Unobservable Inputs (Level 3)
The following is a reconciliation of activity for assets measured at fair value based on significant unobservable inputs (Level 3) information.
Bank-Issued Trust
Preferred Securities
($ in thousands)20232022
Balance, January 1 $31 $43 
Paydowns— (11)
Balance at September 30$31 $32 
Municipal Securities
($ in thousands)2023 2022
Balance, January 1 $15,117 $20,123 
Purchases— — 
Maturities, calls and paydowns(532)(524)
Transfer from level 2 to level 36,085 — 
Unrealized gain (loss) included in comprehensive income (1,177)(2,641)
Balance at September 30$19,493 $16,958 
Schedule of Quantitative Information About Recurring Level 3 Fair Value Measurements
The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis at September 30, 2023 and December 31, 2022. The following tables present quantitative information about recurring Level 3 fair value measurements ($ in thousands):
Trust Preferred SecuritiesFair ValueValuation TechniqueSignificant Unobservable
Inputs
Range of Inputs
September 30, 2023$31 Discounted cash flowProbability of default
7.91% - 7.93%
December 31, 2022$31 Discounted cash flowProbability of default
6.98% - 7.19%
Municipal SecuritiesFair ValueValuation TechniqueSignificant
Unobservable Inputs
Range of Inputs
September 30, 2023$19,493 Discounted cash flowDiscount Rate
4.50% - 6.77%
December 31, 2022$15,117 Discounted cash flowDiscount Rate
3.00% - 4.00%
Schedule of Fair Value Measurement of Assets Measured at Fair Value on a Non-Recurring Basis and the Level Within the Fair Value Hierarchy
The following table presents the fair value measurement of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements were classified at September 30, 2023 and December 31, 2022.
September 30, 2023
($ in thousands)Fair Value Measurements Using
Fair ValueQuoted Prices in
Active Markets
For
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Collateral dependent loans$7,406 $— $— $7,406 
Other real estate owned 4,920 — — 4,920 
December 31, 2022
($ in thousands)Fair Value Measurements Using
Fair ValueQuoted Prices in
Active Markets
For
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Collateral dependent loans$5,552 $— $— $5,552 
Other real estate owned4,832 — — 4,832