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Fair Value (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Financial Assets Measured at Fair Value on a Recurring Basis

The following table summarizes the financial assets measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

Assets and Liabilities Measured on a Recurring Basis


September 30, 2024		Level 1 Inputs				Level 2 Inputs				Level 3 Inputs				Total Fair Value
		(In Thousands)
Assets:
Available for sale securities:
Obligations of U.S. federal government corporations and agencies		$	—			$	104,507			$	—			$	104,507
Mortgage-backed securities			—				175,291				—				175,291
Collateralized mortgage obligations			—				350,109				—				350,109
Asset-backed securities			—				243,817				—				243,817
Corporate bonds			—				64,806				—				64,806
Obligations of state and political subdivisions			—				207,351				—				207,351
US Treasuries			50,377				—				—				50,377
Equity securities			5,970				—				—				5,970
Loans held for sale, at fair value			—				17,623				103,988				121,611
Interest rate swaps			—				3,000				—				3,000
Liabilities:
Interest rate swaps			—				3,058				—				3,058
Cash flow/fair value hedge derivatives			—				31,068				—				31,068
Mortgage banking derivatives - liability			—				443				—				443


December 31, 2023		Level 1 Inputs				Level 2 Inputs				Level 3 Inputs				Total Fair Value
		(In Thousands)
Assets:
Available for sale securities:
Obligations of U.S. government corporations and agencies		$	—			$	101,598			$	—			$	101,598
Mortgage-backed securities			—				156,508				—				156,508
Collateralized mortgage obligations			—				235,767				—				235,767
Asset-backed securities			—				136,980				—				136,980
Corporate bonds			—				62,420				—				62,420
Obligations of states and political subdivisions			—				204,258				—				204,258
US Treasuries			49,177				—				—				49,177
Equity securities			5,773				—				—				5,773
Loans held for sale, at fair value			—				14,397				131,244				145,641
Interest rate swaps			—				2,867				—				2,867
Cash flow / Fair value hedge derivatives			—				299				—				299
Liabilities:
Interest rate swaps			—				2,867				—				2,867
Cash flow / Fair value hedge derivatives			—				35,392				—				35,392
Mortgage banking derivatives - liability			—				4,750				—				4,750

Summary of Reconciliation of all Assets Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs (Level 3)

The following table presents a reconciliation of assets that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2024 and

2023. There were no securities that were measured at Level 3 for the three and nine months ended September 30, 2024 and 2023.


	Construction loans held for sale
	Three Months Ended September 30,								Nine Months Ended September 30,
	2024				2023				2024				2023
Balance of recurring Level 3 assets at beginning of period	$	118,390			$	111,462			$	131,244			$	91,662
Total gains (losses) for the period
Included in change in fair value of loans held for sale		7,942				(5,856	)			5,635				(874	)
Originations		25,278				73,403				71,023				224,405
Sales		(47,622	)			(57,989	)			(103,914	)			(194,173	)
Balance of recurring Level 3 assets at end of period	$	103,988			$	121,020			$	103,988			$	121,020

Schedule of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring or Nonrecurring Basis

For Level 3 assets and liabilities measured at fair value on a recurring basis, the significant unobservable inputs used in the fair value measurements were as follows:


September 30, 2024		Fair Value				Valuation Technique		Unobservable Inputs		Range of Inputs
		(Dollars in Thousands)
Construction loans held for sale		$	103,988			Adjusted secondary market pricing		Adjustments		0.00% - 0.128%


December 31, 2023		Fair Value				Valuation Technique		Unobservable Inputs		Range of Inputs
		(Dollars in Thousands)
Construction loans held for sale		$	131,244			Adjusted secondary market pricing		Adjustments		0.00% - 0.0984%

Schedule of Financial Assets Measured at Fair Value on a Non-recurring Basis

The following table summarizes the financial assets measured at fair value on a non-recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

Assets and Liabilities Measured on a Non-Recurring Basis


September 30, 2024		Level 1 Inputs				Level 2 Inputs				Level 3 Inputs				Total Fair Value
		(In Thousands)
Individually analyzed loans
Commercial real estate		$	—			$	—			$	7,796			$	7,796
Commercial			—				—				24,694				24,694

Mortgage servicing rights			—				2,346				—				2,346


December 31, 2023		Level 1 Inputs				Level 2 Inputs				Level 3 Inputs				Total Fair Value
		(In Thousands)
Individually analyzed loans
Commercial real estate		$	—			$	—			$	3,425			$	3,425
Commercial			—				—				6,164				6,164

Mortgage servicing rights			—				2,744				—				2,744

For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of September 30, 2024, the significant unobservable inputs used in the fair value measurements were as follows:

         
        Fair 
Value

        Valuation
Technique

        Unobservable
Inputs

        Range of
Inputs

        Weighted
Average

         
        (Dollars in Thousands)

Individually analyzed Loans- 
   Applies to loan classes with an 
   appraisal valuation

$

32,490

Appraisals which utilize sales comparison, net income and cost approach

Discounts for collection issues and changes in market conditions

10-50%

39.72

%

For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2023, the significant unobservable inputs used in the fair value measurements were as follows:

         
        Fair 
Value

        Valuation
Technique

        Unobservable
Inputs

        Range of
Inputs

        Weighted
Average

         
        (Dollars in Thousands)

Individually analyzed Loans- 
   Applies to loan classes with an 
   appraisal valuation

$

9,589

Appraisals which utilize sales comparison, net income and cost approach

Discounts for collection issues and changes in market conditions

10-50%

27.60

%

Carrying Values and Estimated Fair Values of Financial Instruments

The carrying value and estimated fair values of financial instruments at September 30, 2024 and December 31, 2023, were as follows:


						Fair Value Measurements at September 30, 2024
						(In Thousands)
		Carrying Value				Total				Level 1				Level 2				Level 3
Financial Assets:
Cash and cash equivalents		$	125,282			$	125,282			$	125,282			$	—			$	—
Federal Home Loan Bank Stock			24,315			N/A				N/A				N/A				N/A
Loans receivable, net			6,512,586				6,173,897				—				—				6,173,897
Accrued interest receivable			34,959				34,959				34,959				—				—

Financial Liabilities:
Deposits		$	7,142,636			$	7,136,765			$	5,510,745			$	1,626,020			$	—
Advances from Federal Home Loan Bank			345,000				344,656				—				344,656				—
Subordinated debentures			85,324				83,479				—				—				83,479
Advance payments by borrowers			13,358				13,358				13,358				—				—


						Fair Value Measurements at December 31, 2023
						(In Thousands)
		Carrying Value				Total				Level 1				Level 2				Level 3
Financial Assets:
Cash and cash equivalents		$	114,756			$	114,756			$	114,756			$	—			$	—
Federal Home Loan Bank Stock			21,760			N/A				N/A				N/A				N/A
Loans receivable, net			6,662,875				6,100,394				—				—				6,100,394
Accrued interest receivable			33,446				33,446				33,446				—				—

Financial Liabilities:
Deposits		$	7,143,046			$	7,099,593			$	5,447,423			$	1,652,170			$	—
Advances from Federal Home Loan Bank			280,000				279,213				—				279,213				—
Subordinated debentures			85,229				84,231				—				—				84,231

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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