Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value

Assets and liabilities measured at fair value are summarized in the tables below.

	Fair Value Measurements at June 30, 2023 Using:
Assets:	(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Securities available-for-sale
U.S. Treasury securities and obligations of U.S.    Government agencies	$	—	$	61,144	$	—
Obligations of states and political subdivisions		—		330,155		—
Mortgage-backed securities in government sponsored    entities		—		225,999		—
Total securities available-for-sale		—		617,298		—
Equity securities		—		1,952		—
Swap asset		—		16,432		—
Liabilities measured at fair value on a recurring basis:
Swap liability	$	—	$	16,432	$	—
Assets measured at fair value on a nonrecurring basis:
Mortgage servicing rights	$	—	$	—	$	3,056

	Fair Value Measurements at December 31, 2022 Using:
Assets:	(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Securities available-for-sale
U.S. Treasury securities and obligations of U.S.    Government agencies	$	—	$	61,029	$	—
Obligations of states and political subdivisions		—		317,248		—
Mortgage-backed securities in government    sponsored entities		—		237,125		—
Total securities available-for-sale		—		615,402		—
Equity securities		—		2,190		—
Swap asset		—		16,579		—
Liabilities measured at fair value on a recurring    basis:
Swap liability		—		16,579		—
Assets measured at fair value on a nonrecurring    basis:
Mortgage servicing rights	$	—	$	—	$	2,689

Quantitative Information about Level 3 Fair Value Measurements

The following tables present quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a nonrecurring basis as of June 30, 2023 and December 31, 2022.

	Quantitative Information about Level 3 Fair Value Measurements
June 30, 2023	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Mortgage Servicing     Rights	$	3,056	Discounted Cash Flow	Constant Prepayment     Rate	4% - 10%	6%
				Discount Rate	12%	12%

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2022	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Mortgage Servicing     Rights	$	2,689	Discounted Cash Flow	Constant Prepayment     Rate	5% - 20%	7%
				Discount Rate	12%	12%

Carrying Amount and Fair Value of Financial Instruments Carried at Amortized Cost

The carrying amount and fair values of financial instruments not measured at fair value on a recurring or nonrecurring basis at June 30, 2023 were as follows:

June 30, 2023	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	41,354	$	41,354	$	41,354	$	—	$	—
Other securities		28,449		28,449		28,449		—		—
Loans, held for sale		3,014		3,014		3,014		—		—
Loans, net of allowance		2,601,131		2,510,194		—		—		2,510,194
Bank owned life insurance		53,787		53,787		53,787		—		—
Accrued interest receivable		11,043		11,043		11,043		—		—
Financial Liabilities:
Nonmaturing deposits		2,360,418		2,360,418		2,360,418		—		—
Time deposits		582,356		582,041		—		—		582,041
Short-term FHLB advances		142,000		141,700		141,700		—		—
Long-term FHLB advances		2,859		2,839		—		—		2,839
Other borrowings		12,568		12,801		—		—		12,801
Securities sold under agreement to repurchase		6,788		6,788		6,788		—		—
Subordinated debentures		103,880		102,115		—		—		102,115
Accrued interest payable		—		—		—		—		—

The carrying amount and fair values of financial instruments not measured at fair value on a recurring or nonrecurring basis at December 31, 2022 were as follows:

December 31, 2022	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	43,361	$	43,361	$	43,361	$	—	$	—
Other securities		33,585		33,585		33,585		—		—
Loans, held for sale		683		698		698		—		—
Loans, net of allowance		2,518,155		2,427,291		—		—		2,427,291
Bank owned life insurance		53,543		53,543		53,543		—		—
Accrued interest receivable		11,178		11,178		11,178		—		—
Financial Liabilities:
Nonmaturing deposits		2,300,215		2,300,215		2,300,215		—		—
Time deposits		319,769		318,886		—		—		318,886
Short-term FHLB advances		393,700		393,247		393,247		—		—
Long-term FHLB advances		3,578		3,534		—		—		3,534
Securities sold under agreement to repurchase		25,143		25,143		25,143		—		—
Subordinated debentures		103,799		98,513		—		—		98,513
Other borrowings		15,516		15,806		—		—		15,806
Accrued interest payable		668		668		668		—		—

An immaterial revision has been made to the fair market value of loans for the period ended December 31, 2022. This revision did not have a significant impact on the financial statement line item affected or total assets, equity or net income.