Fair Value of Financial Instruments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping

The carrying amount, estimated fair values, and placement in the fair value hierarchy of the Company’s financial instruments as of March 31, 2024 and December 31, 2023 are as follows:

	Fair Value Measurements
(dollars in thousands)	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
March 31, 2024
Assets
Cash and short-term investments	$	94,669	$	94,669	$	94,669	$	—	$	—
Investment securities available for sale	382,953		382,953		—		375,808		7,145
Investment securities held to maturity	447,157		398,852		—		398,852		—
Other investments	16,034		16,034		—		16,034		—
Loans held for sale	31,102		31,102		—		31,102		—
Loans, net	1,840,361		1,674,467		—		—		1,674,467
Derivative instruments	361		361		—		361		—
Liabilities
Deposits	2,522,748		2,516,381		—		2,516,381		—
Federal Home Loan Bank advances	155,000		157,599		—		157,599		—
Other borrowings	62,969		50,078		—		50,078		—

	Fair Value Measurements
(dollars in thousands)	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
December 31, 2023
Assets
Cash and short-term investments	$	83,322	$	83,322	$	83,322	$	—	$	—
Investment securities available for sale	407,382		407,382		—		396,568		10,814
Investment securities held to maturity	449,031		405,576		—		405,576		—
Other investments	16,868		16,868		—		16,868		—
Loans held for sale	27,958		27,958		—		27,958		—
Loans, net	1,865,099		1,699,870		—		—		1,699,870
Liabilities
Deposits	2,544,790		2,538,477		—		2,538,477		—
Federal Home Loan Bank advances	175,000		176,022		—		176,022		—
Other borrowings	63,445		51,056		—		51,056		—
Derivative instruments	438		438		—		438		—

Fair Value Measurements, Recurring and Nonrecurring

The following tables present the recorded amount of the Company’s assets measured at fair value on a recurring and nonrecurring basis as of March 31, 2024 and December 31, 2023, aggregated by the level in the fair value hierarchy within which those measurements fall. The tables below include collateral dependent impaired loans and other real estate properties at March 31, 2024 and December 31, 2023. Those collateral dependent impaired loans and other real estate properties are shown net of the related specific reserves and valuation allowances.

			Fair Value Measurements at Reporting Date Using
(dollars in thousands)	Total Fair Value		(Level 1)		(Level 2)		(Level 3)
March 31, 2024
Nonrecurring
Collateral dependent loans	$	1,768	$	—	$	—	$	1,768
Other real estate owned	562		—		—		562
Total nonrecurring assets	$	2,330	$	—	$	—	$	2,330

			Fair Value Measurements at Reporting Date Using
(dollars in thousands)	Total Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2023
Nonrecurring
Collateral dependent loans	$	1,410	$	—	$	—	$	1,410
Other real estate owned	448		—		—		448
Total nonrecurring assets	$	1,858	$	—	$	—	$	1,858

Fair Value Measurement Inputs and Valuation Techniques

The following table presents quantitative information about the significant unobservable inputs used in the fair value measurements for assets in level 3 of the fair value hierarchy measured on a nonrecurring basis at March 31, 2024 and December 31, 2023. This table is comprised primarily of collateral dependent impaired loans and other real estate owned:

(dollars in thousands)	March 31, 2024		Valuation Techniques	Unobservable Inputs	Range Weighted Avg
Collateral dependent loans	$	1,768	Appraised Value	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	—	%	50	%
Other real estate owned	562		Appraised Value/Comparable Sales	Discounts to reflect current market conditions and estimated costs to sell	—	%	20	%

(dollars in thousands)	December 31, 2023		Valuation Techniques	Unobservable Inputs	Range Weighted Avg
Collateral dependent loans	$	1,410	Appraised Value	Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell	25	%	50	%
Other real estate owned	448		Appraised Value/Comparable Sales	Discounts to reflect current market conditions and estimated costs to sell	—	%	20	%

The following table presents quantitative information about recurring level 3 fair value measurements as of March 31, 2024 and December 31, 2023.

	As of March 31, 2024
(dollars in thousands)	Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Avg)
Available for sale securities	$	7,145	Discounted Cash Flow	Discount Rate or Yield	N/A*

	As of December 31, 2023
(dollars in thousands)	Fair Value		Valuation Techniques	Unobservable Inputs	Range (Weighted Avg)
Available for sale securities	$	10,814	Discounted Cash Flow	Discount Rate or Yield	N/A*

* The Company relies on a third-party pricing service to value its securities. The details of the unobservable inputs and other adjustments used by the third-party pricing service were not readily available to the Company.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The table below presents a reconciliation and statement of income classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (level 3) for the three months ended March 31, 2024.

	Three Months Ended
	March 31, 2024
(dollars in thousands)	Available for sale securities
Balance, Beginning	$	10,814
Redemptions/Payments	(2,913)
Fair value adjustments	1,669
Transfers between levels	(2,425)
Balance, Ending	$	7,145