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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value, Assets Measured on Recurring and Nonrecurring Basis

The following tables summarize significant assets and liabilities carried at fair value and placement in the fair value hierarchy at the dates specified:


	September 30, 2022
			Fair Value Measurements Using:
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets measured on a recurring basis:
Debt securities	$	827,215	$	—	$	827,215	$	—
Equity securities	3,815		3,815		—		—
FHLB stock	2,343		—		2,343		—
Interest-rate swaps	836		—		836		—
Assets measured on a non-recurring basis:
Individually evaluated loans (collateral dependent)	1,093		—		—		1,093


Liabilities measured on a recurring basis:
Interest-rate swaps	$	836	$	—	$	836	$	—


	December 31, 2021
			Fair Value Measurements Using:
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets measured on a recurring basis:
Debt securities	$	956,430	$	—	$	956,430	$	—
Equity securities	1,785		1,785		—		—
FHLB stock	2,164		—		2,164		—
Interest-rate swaps	528		—		528		—
Assets measured on a non-recurring basis:
Individually evaluated loans (collateral dependent)	15,210		—		—		15,210


Liabilities measured on a recurring basis:
Interest-rate swaps	$	528	$	—	$	528	$	—

Quantitative Information About Significant Unobservable Inputs for Fair Value Measurements

The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company utilized Level 3 inputs (significant unobservable inputs for situations in which there is little, if any, market activity for the asset or liability) to determine fair value as of September 30, 2022 and December 31, 2021:

Fair Value

(Dollars in thousands)

September 30, 2022

December 31, 2021

Valuation Technique

Unobservable Input

Unobservable Input Value or Range

Assets measured on a non-recurring basis:

Individually evaluated loans (collateral dependent)

1,093

15,210

Appraisal of collateral

Appraisal adjustments(1)

15% - 50%

__________________________________________

(1)Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.

Fair Value, by Balance Sheet Grouping

Financial instruments for which the fair value is disclosed but not recognized on the Consolidated Balance Sheets are summarized below. The table includes the carrying value, estimated fair value and its placement in the fair value hierarchy as follows:


	September 30, 2022
					Fair Value Measurement
(Dollars in thousands)	Carrying Value		Fair Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Financial assets:

Loans, net	$	3,058,158	$	2,903,850	$	—	$	—	$	2,903,850
Financial liabilities:
CDs	230,039		225,366		—		225,366		—

Borrowed funds	2,934		1,916		—		1,916		—
Subordinated debt	59,102		56,809		—		56,809		—


	December 31, 2021
					Fair Value Measurement
(Dollars in thousands)	Carrying Value		Fair Value		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Financial assets:

Loans, net	$	2,872,980	$	2,922,947	$	—	$	—	$	2,922,947
Financial liabilities:
CDs	206,449		206,450		—		206,450		—

Borrowed funds	5,479		5,121		—		5,121		—
Subordinated debt	58,979		58,460		—		58,460		—