Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value of Assets and Liabilities [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis (in thousands):

			Quoted Prices in		Significant		Significant
			Active Markets		Other		Other
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
Description	Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2023:
Assets:
Securities available-for-sale:
U.S. Treasury	$	223,851	$	—	$	223,851	$	—
U.S. Government-sponsored enterprises (GSEs)		60,742		—		60,742		—
Municipal securities		18,464		—		18,464		—
Other debt securities		30,416		—		30,416		—
Mortgage-backed securities (GSEs)		206,835		—		206,835		—
Total securities available-for-sale		540,308		—		540,308		—
Derivative financial instruments and interest rate swap agreements		11,111		—		11,111		—
Total assets at fair value	$	551,419	$	—	$	551,419	$	—
Liabilities:
Derivative financial instruments and interest rate swap agreements	$	12,710	$	—	$	12,710	$	—
December 31, 2022:
Assets:
Securities available-for-sale:
U.S. Treasury	$	223,653	$	—	$	223,653	$	—
U.S. Government-sponsored enterprises (GSEs)		1,575		—		1,575		—
Municipal securities		18,611		—		18,611		—
Other debt securities		30,551		—		30,551		—
Mortgage-backed securities (GSEs)		209,503		—		209,503		—
Total securities available-for-sale		483,893		—		483,893		—
Derivative financial instruments and interest rate swap agreements		11,834		—		11,834		—
Total assets at fair value	$	495,727	$	—	$	495,727	$	—
Liabilities:
Derivative financial instruments and interest rate swap agreements	$	13,110	$	—	$	13,110	$	—

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis

			Quoted Prices in		Significant		Significant
			Active Markets		Other		Other
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2023:
Collateral dependent loans	$	3,211	$	—	$	—	$	3,211
Other real estate owned		—		—		—		—
December 31, 2022:
Collateral dependent loans(1)	$	1,536	$	—	$	—	$	1,536
Other real estate owned		915		—		—		915

(1) Amount is net of valuation allowance of $506 thousand at December 31, 2022 as required by ASC 310-10, “Receivables”, prior to the adoption of ASU 2016-13.

Fair Value Measurement Inputs and Valuation Techniques

For Level 3 assets measured at fair value on a non-recurring basis, the significant unobservable inputs used in the fair value measurements are presented below (dollars in thousands):

					Weighted
			Valuation	Significant Other	Average of
	Fair Value		Technique	Unobservable Input	Input
June 30, 2023:
Collateral dependent loans	$	3,211	Appraisal	Appraisal discounts	54	%
Other real estate owned		—	Appraisal	Appraisal discounts	—	%
December 31, 2022:
Collateral dependent loans	$	1,536	Appraisal	Appraisal discounts	25	%
Other real estate owned		915	Appraisal	Appraisal discounts	29	%

Fair Value, by Balance Sheet Grouping

The carrying amount and estimated fair value of the Company’s financial instruments are as follows (in thousands):

	Fair Value Measurements Using
	Carrying								Estimated
	Amount		Level 1		Level 2		Level 3		Fair Value
June 30, 2023:
Assets:
Cash and cash equivalents	$	238,898	$	238,898	$	—	$	—	$	238,898
Securities available-for-sale		540,308		—		540,308		—		540,308
Securities held-to-maturity		283,564		—		260,504		—		260,504
Other investments		14,396		N/A		N/A		N/A		N/A
Loans and leases, net and loans held for sale		3,306,029		—		—		3,161,489		3,161,489
Derivative financial instruments and interest rate swap agreements		11,111		—		11,111		—		11,111
Liabilities:
Noninterest-bearing demand deposits		1,003,432		—		1,003,432		—		1,003,432
Interest-bearing demand deposits		938,758		—		938,758		—		938,758
Money market and savings deposits		1,720,202		—		1,720,202		—		1,720,202
Time deposits		537,192		—		536,452		—		536,452
Borrowings		15,496		—		15,496		—		15,496
Subordinated debt		42,057		—		—		39,457		39,457
Derivative financial instruments and interest rate swap agreements		12,710		—		12,710		—		12,710
December 31, 2022:
Assets:
Cash and cash equivalents	$	266,424	$	266,424	$	—	$	—	$	266,424
Securities available-for-sale		483,893		—		483,893		—		483,893
Securities held-to-maturity		285,949		—		260,613				260,613
Other investments		15,530		N/A		N/A		N/A		N/A
Loans and leases, net and loans held for sale		3,232,045		—		—		3,143,921		3,143,921
Derivative financial instruments and interest rate swap agreements		11,834		—		11,834		—		11,834
Liabilities:
Noninterest-bearing demand deposits		1,072,449		—		1,072,449		—		1,072,449
Interest-bearing demand deposits		965,911		—		965,911		—		965,911
Money market and savings deposits		1,583,481		—		1,583,481		—		1,583,481
Time deposits		455,259		—		451,899		—		451,899
Borrowings		41,860		—		41,860		—		41,860
Subordinated debt		42,015		—		—		40,439		40,439
Derivative financial instruments and interest rate swap agreements		13,110		—		13,110		—		13,110