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FAIR VALUES OF ASSETS AND LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2024

Schedule of Assets Measured at Fair Value on a Recurring Basis

The following table presents the Company’s financial instruments 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, 2024 and 2023:


December 31, 2024	Fair Value Measurements
($ in thousands)	Fair Value		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	$	5,233	$	—	$	5,233	$	—
Obligations of U.S. government agencies and sponsored entities	96,225		—		96,225		—
Municipal securities	399,532		—		375,907		23,625
Mortgage-backed Securities	472,418		—		472,418		—
Corporate obligations	29,895		—		29,866		29
Total investment securities available-for-sale	$	1,003,303	$	—	$	979,649	$	23,654
Equity Securities	$	15,684	$	15,684	$	—	$	—
Loans held for sale	$	3,687	$	—	$	3,687	$	—
Interest rate swaps	$	10,509	$	—	$	10,491	$	18
Liabilities:
Interest rate swaps	$	10,510	$	—	$	10,491	$	19


December 31, 2023	Fair Value Measurements
($ in thousands)	Fair Value		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	$	16,675	$	16,675	$	—	$	—
Obligations of U.S. government agencies and sponsored entities	104,923		—		104,923		—
Municipal securities	438,466		—		420,283		18,183
Mortgage-backed securities	441,661		—		441,661		—
Corporate obligations	37,597		—		37,567		30
Other	3,043		—		3,043		$	—
Total investment securities available-for-sale	$	1,042,365	$	16,675	$	1,007,477	$	18,213
Loans held for sale	$	2,914	$	—	$	2,914	$	—
Interest rate swaps	$	12,170	$	—	$	12,129	$	41
Liabilities:
Interest rate swaps	$	12,175	$	—	$	12,129	$	46

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)	2024		2023
Balance, January 1	$	30	$	31
Paydowns	(1)		(1)
Balance, December 31	$	29	$	30


	Municipal Securities
($ in thousands)	2024		2023
Balance, January 1	$	18,183	$	15,117
Maturities, calls and paydowns	(2,198)		(2,639)
Transfer from level 2 to level 3	8,035		6,085
Transfer from level 3 to level 2	(270)		—
Unrealized (loss) gain included in comprehensive income	(125)		(380)
Balance, December 31	$	23,625	$	18,183

Schedule of Quantitative Information about Recurring Level 3 Fair Value Measurements


	Interest Rate Swaps - Risk Participations
($ in thousands)	2024		2023
Balance, January 1, net	$	(5)	$	—
RPA-in	27		(46)
RPA-out	(23)		41
Balance at December 31, net	$	(1)	$	(5)

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, 2024 and 2023. The following tables present quantitative information about recurring Level 3 fair value measurements:

($ in thousands)

Bank-Issued Trust Preferred Securities

Fair Value

Valuation Technique

Significant Unobservable
Inputs

Range of Inputs

December 31, 2024

Discounted cash flow

Discount rate

6.74% - 6.91%

December 31, 2023

Discounted cash flow

Discount rate

7.81% - 7.89%

Municipal Securities

Fair Value

Valuation Technique

Significant Unobservable
Inputs

Range of Inputs

December 31, 2024

23,625

Discounted cash flow

Discount rate

2.65% - 6.10%

December 31, 2023

18,183

Discounted cash flow

Discount rate

2.34% - 5.50%

Interest Rate Swaps - Risk Participations

Fair Value

Valuation Technique

Significant Unobservable
Inputs

Range of Inputs

December 31, 2024

(1)

Credit Value Adjustment

Credit Spread

225 bps - 300 bps

Recovery Rate

70%

December 31, 2023

(5)

Credit Value Adjustment

Credit Spread

225 bps - 300 bps

Recovery Rate

70%

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, 2024 and 2023:


	Fair Value Measurements Using
($ in thousands)	Fair Value		Quoted Prices in Active Markets For Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2024
Collateral dependent loans	$	6,615	$	—	$	—	$	6,615
Other real estate owned	7,874		—		—		7,874

December 31, 2023
Collateral dependent loans	$	2,494	$	—	$	—	$	2,494
Other real estate owned	8,320		—		—		8,320

Schedule of Estimated Fair Values


	Fair Value Measurements
December 31, 2024	Carrying 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	$	220,411	$	220,411	$	220,411	$	—	$	—
Securities available-for-sale	1,003,303		1,003,303		—		979,649		23,654
Securities held-to-maturity	582,939		537,275		—		526,743		10,532
Equity securities	15,684		15,684		15,684		—		—
Loans held for sale	3,687		3,687		—		3,687		—
Loans, net	5,351,026		5,132,544		—		—		5,132,544
Accrued interest receivable	34,002		34,002		—		8,160		25,842
Interest rate swaps	10,509		10,509		—		10,491		18

Liabilities:
Non-interest-bearing deposits	$	1,796,685	$	1,796,685	$	—	$	1,796,685	$	—
Interest-bearing deposits	4,808,171		4,644,812		—		4,644,812		—
Subordinated debentures	123,731		111,709		—		—		111,709
FHLB and other borrowings	210,000		210,000		—		210,000		—
Accrued interest payable	13,856		13,856		—		13,856		—
Interest rate swaps	10,510		10,510		—		10,491		19


	Fair Value Measurements
December 31, 2023	Carrying 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	$	355,147	$	355,147	$	355,147	$	—	$	—
Securities available-for-sale	1,042,365		1,042,365		16,675		1,007,477		18,213
Securities held-to-maturity	654,539		615,944		—		615,944		—
Loans held for sale	2,914		2,914		—		2,914		—
Loans, net	5,116,010		4,877,935		—		—		4,877,935
Accrued interest receivable	33,300		33,300		—		8,632		24,668
Interest rate swaps	12,170		12,170		—		12,129		41

Liabilities:
Non-interest-bearing deposits	$	1,849,013	$	1,849,013	$	—	$	1,849,013	$	—
Interest-bearing deposits	4,613,859		4,430,227		—		4,430,227		—
Subordinated debentures	123,386		109,426		—		—		109,426
FHLB and other borrowings	390,000		390,000		—		390,000		—
Accrued interest payable	22,702		22,702		—		22,702		—
Interest rate swaps	12,175		12,175		—		12,129		46

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details