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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured and Recorded at Fair Value
Assets and liabilities measured and recorded at fair value, including financial assets for which the Company has elected the fair value option, on a recurring and nonrecurring basis at June 30, 2024 and December 31, 2023, are summarized below:
June 30, 2024
(dollars in thousands)Carrying
amount
Quoted prices
in active
markets
for identical
assets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant unobservable
inputs
(Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Investment securities available for sale:
U.S. Treasury securities$2,994 $2,994 $— $— 
U.S. government sponsored entities and U.S. agency securities50,831 — 50,831 — 
Mortgage-backed securities - agency704,176 — 704,176 — 
Mortgage-backed securities - non-agency86,182 — 86,182 — 
State and municipal securities66,151 — 66,151 — 
Corporate securities84,799 — 84,799 — 
Other securities99,958 — 99,958 — 
Equity securities4,563 4,563 — — 
Loans held for sale5,555 — 5,555 — 
Derivative assets1,714 — 1,714 — 
Total$1,106,923 $7,557 $1,099,366 $— 
Liabilities
Derivative liabilities$8,192 $— $8,192 $— 
Total$8,192 $— $8,192 $— 
Assets measured at fair value on a non-recurring basis:
Nonperforming loans$68,437 $— $64,167 $4,270 
Other real estate owned8,304 — 8,304 — 
December 31, 2023
(dollars in thousands)Carrying
amount
Quoted prices
in active
markets
for identical
assets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant unobservable
inputs
(Level 3)
Assets and liabilities measured at fair value on a recurring basis:
Assets
Investment securities available for sale:
U.S. Treasury securities$1,097 $1,097 $— $— 
U.S. government sponsored entities and U.S. agency securities72,572 — 72,572 — 
Mortgage-backed securities - agency574,500 — 574,500 — 
Mortgage-backed securities - non-agency83,529 — 83,529 — 
State and municipal securities57,460 — 57,460 — 
Corporate securities99,172 — 99,172 — 
Equity securities4,501 4,501 — — 
Loans held for sale3,811 — 3,811 — 
Derivative assets372 — 372 — 
Total$924,579 $5,598 $918,981 $— 
Liabilities
Derivative liabilities$8,836 $— $8,836 $— 
Total$8,836 $— $8,836 $— 
Assets measured at fair value on a non-recurring basis:
Nonperforming loans$4,633 $— $3,964 $669 
Other real estate owned9,112 — 9,112 — 
Schedule of Losses Recognized on Assets Measured on a Non-recurring Basis The following table presents losses recognized on assets measured on a nonrecurring basis for the three and six months ended June 30, 2024 and 2023:
Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)2024202320242023
Nonperforming loans$3,647 $3,573 13,870 4,676 
Other real estate owned730 — 730 — 
Total losses on assets measured on a nonrecurring basis$4,377 $3,573 $14,600 $4,676 
Schedule Presents Quantitative Information about Significant Unobservable Inputs used in Fair Value Measurements of Non-recurring Assets (Level 3) The following tables present quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured on a nonrecurring basis at June 30, 2024 and December 31, 2023:
(dollars in thousands)Fair valueValuation
technique
Unobservable
input / assumptions
Range (weighted average)(1)
June 30, 2024
Nonperforming loans$4,270 Collateral based measurementsDiscount to reflect current market conditions and ultimate collectability
19.32% - 25.69% (22.72%)
December 31, 2023
Nonperforming loans$669 Collateral based measurementsDiscount to reflect current market conditions and ultimate collectability
24.38% - 100.00% (27.46%)
(1)Unobservable inputs were weighted by the relative fair value of the instruments.
Schedule of the Fair Value Option for Newly Originated Residential and Commercial Loans Held for Sale
The following table presents the difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected as of June 30, 2024 and December 31, 2023:
June 30, 2024December 31, 2023
(dollars in thousands)Aggregate
fair value
DifferenceContractual
principal
Aggregate
fair value
DifferenceContractual
principal
Residential loans held for sale$5,555 $251 $5,304 $3,811 $203 $3,608 
The following table presents the amount of gains from fair value changes included in income before income taxes for financial assets carried at fair value for the three and six months ended June 30, 2024 and 2023:
Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)2024202320242023
Residential loans held for sale$(1)$50 17 149 
Schedule Presentation of Summary of the Carrying Values and Fair Value Estimates of Certain Financial Instruments The carrying values and estimated fair value of certain financial instruments not carried at fair value at June 30, 2024 and December 31, 2023 were as follows:
June 30, 2024
(dollars in thousands)Carrying
amount
Fair valueQuoted prices
in active
markets
for identical
assets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Assets
Cash and due from banks$123,719 $123,719 $123,719 $— $— 
Federal funds sold927 927 927 — — 
Loans5,851,994 5,741,200 — — 5,741,200 
Accrued interest receivable25,756 25,756 — 25,756 — 
Liabilities
Deposits$6,118,023 $6,098,416 $— $6,098,416 $— 
Short-term borrowings7,208 7,208 — 7,208 — 
FHLB and other borrowings600,000 598,416 — 598,416 — 
Subordinated debt91,656 84,135 — 84,135 — 
Trust preferred debentures50,921 53,848 — 53,848 — 
December 31, 2023
(dollars in thousands)Carrying
amount
Fair valueQuoted prices
in active
markets
for identical
assets
(Level 1)
Significant
other
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Assets
Cash and due from banks$134,212 $134,212 $134,212 $— $— 
Federal funds sold849 849 849 — — 
Loans6,131,079 6,129,244 — — 6,129,244 
Accrued interest receivable24,934 24,934 — 24,934 — 
Liabilities
Deposits$6,309,529 $6,294,979 $— $6,294,979 $— 
Short-term borrowings34,865 34,865 25,000 9,865 — 
FHLB and other borrowings476,000 475,240 — 475,240 — 
Subordinated debt93,546 90,253 — 90,253 — 
Trust preferred debentures50,616 51,626 — 51,626 —