Burke & Herbert Bank & Trust (BHRB) S-4/A 12 Oct 23 Registration of securities issued in business combination transactions (amended) Financial data

Cover

Cover	6 Months Ended
	Jun. 30, 2023
Cover [Abstract]
Document Type	S-4/A
Entity Registrant Name	Burke & Herbert Financial Services Corp.
Entity Incorporation, State or Country Code	VA
Entity Primary SIC Number	6022
Entity Tax Identification Number	92-0289417
Entity Address, Address Line One	100 S. Fairfax Street
Entity Address, City or Town	Alexandria
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	22314
City Area Code	703
Local Phone Number	666-3555
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Amendment Flag	false
Entity Central Index Key	0001964333

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023		Dec. 31, 2022		Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 9,047	$ 10,616		$ 9,124				$ 8,989
Interest-bearing deposits with banks	71,752	106,323		41,171				68,374
Cash and cash equivalents	80,799	116,939		50,295		$ 92,815		77,363	$ 228,704	$ 83,747
Securities available-for-sale, at fair value	1,252,190	1,362,785		1,371,757				1,605,681
Restricted stock, at cost	3,914	9,129		16,443				12,079
Loans held-for-sale, at fair value	456	360		0				1,249
Loans	2,000,969	1,951,738		1,887,221				1,745,073
Allowance for loan losses	(25,919)	(25,704)	[1]	(21,039)	[1]	(23,362)	$ (29,061)	(31,709)
Loans, net	1,975,050	1,926,034		1,866,182				1,713,364
Premises and equipment, net	56,183	55,157		53,170				36,875
Accrued interest receivable	14,781	15,158		15,481				15,253
Company-owned life insurance	93,625	93,053		92,487				91,062
Other assets	92,228	92,571		97,083				68,817
Total Assets	3,569,226	3,671,186		3,562,898				3,621,743
Liabilities
Non-interest-bearing deposits	876,396	906,723		960,692				930,847
Interest-bearing deposits	2,128,867	2,125,668		1,959,708				2,002,570
Total deposits	3,005,263	3,032,391		2,920,400				2,933,417
Borrowed funds	249,000	321,700		343,100				275,000
Accrued interest and other liabilities	24,891	27,312		25,945				23,699
Total Liabilities	3,279,154	3,381,403		3,289,445				3,232,116
Commitments and contingent liabilities (see Note 13)
Shareholders’ Equity
Preferred Stock, $1.00 par value per share; 2,000,000 shares authorized; no shares issued or outstanding	0	0		0				0
Common Stock	4,000	4,000		4,000				4,000
Additional paid-in capital	13,208	12,686		12,282				10,374
Retained earnings	426,625	424,532		424,391				396,120
Accumulated other comprehensive income (loss)	(126,177)	(123,809)		(139,495)				6,955
Treasury stock	(27,584)	(27,626)		(27,725)				(27,822)
Total Shareholders’ Equity	290,072	289,783		273,453		$ 291,138	$ 330,910	389,627	$ 384,877	$ 353,528
Total Liabilities and Shareholders’ Equity	$ 3,569,226	$ 3,671,186		$ 3,562,898				$ 3,621,743
[1] Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies in Notes to Consolidated Financial Statements for additional information related to our adoption of this standard.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value per share (in dollars per share)	$ 1	$ 1	$ 1	$ 1
Preferred stock, authorized (in shares)	2,000,000	2,000,000	2,000,000	2,000,000
Preferred stock, issued (in shares)	0	0	0	0
Preferred stock, outstanding (in shares)	0	0	0	0
Common stock, par value per share (in dollars per share)	$ 0.50	$ 0.50	$ 0.50	$ 0.50
Common stock, authorized (in shares)	20,000,000	20,000,000	20,000,000	20,000,000
Common stock, issued (in shares)	8,000,000	8,000,000	8,000,000	8,000,000
Common stock, outstanding (in shares)	7,428,710	7,427,840	7,425,760	7,423,760
Treasury stock, shares (in shares)	571,290	572,160	574,240	576,240

Consolidated Balance Sheets_2

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023		Dec. 31, 2022		Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 9,047	$ 10,616		$ 9,124				$ 8,989
Interest-bearing deposits with banks	71,752	106,323		41,171				68,374
Cash and cash equivalents	80,799	116,939		50,295		$ 92,815		77,363	$ 228,704	$ 83,747
Securities available-for-sale, at fair value	1,252,190	1,362,785		1,371,757				1,605,681
Restricted stock, at cost	3,914	9,129		16,443				12,079
Loans held-for-sale, at fair value	456	360		0				1,249
Loans	2,000,969	1,951,738		1,887,221				1,745,073
Allowance for credit losses	(25,919)	(25,704)	[1]	(21,039)	[1]	(23,362)	$ (29,061)	(31,709)
Loans, net	1,975,050	1,926,034		1,866,182				1,713,364
Premises and equipment, net	56,183	55,157		53,170				36,875
Accrued interest receivable	14,781	15,158		15,481				15,253
Company-owned life insurance	93,625	93,053		92,487				91,062
Other assets	92,228	92,571		97,083				68,817
Total Assets	3,569,226	3,671,186		3,562,898				3,621,743
Liabilities
Non-interest-bearing deposits	876,396	906,723		960,692				930,847
Interest-bearing deposits	2,128,867	2,125,668		1,959,708				2,002,570
Total deposits	3,005,263	3,032,391		2,920,400				2,933,417
Borrowed funds	249,000	321,700		343,100				275,000
Accrued interest and other liabilities	24,891	27,312		25,945				23,699
Total Liabilities	3,279,154	3,381,403		3,289,445				3,232,116
Commitments and contingent liabilities (see Note 10)
Shareholders’ Equity
Preferred Stock, $1.00 par value per share; 2,000,000 shares authorized; no shares issued or outstanding	0	0		0				0
Common Stock	4,000	4,000		4,000				4,000
Additional paid-in capital	13,208	12,686		12,282				10,374
Retained earnings	426,625	424,532		424,391				396,120
Accumulated other comprehensive income (loss)	(126,177)	(123,809)		(139,495)				6,955
Treasury stock	(27,584)	(27,626)		(27,725)				(27,822)
Total Shareholders’ Equity	290,072	289,783		273,453		$ 291,138	$ 330,910	389,627	$ 384,877	$ 353,528
Total Liabilities and Shareholders’ Equity	$ 3,569,226	$ 3,671,186		$ 3,562,898				$ 3,621,743
[1] Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies in Notes to Consolidated Financial Statements for additional information related to our adoption of this standard.

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023		Dec. 31, 2022		Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value per share (in dollars per share)	$ 1	$ 1		$ 1				$ 1
Preferred stock, authorized (in shares)	2,000,000	2,000,000		2,000,000				2,000,000
Preferred stock, issued (in shares)	0	0		0				0
Preferred stock, outstanding (in shares)	0	0		0				0
Common stock, par value per share (in dollars per share)	$ 0.50	$ 0.50		$ 0.50				$ 0.50
Common stock, authorized (in shares)	20,000,000	20,000,000		20,000,000				20,000,000
Common stock, issued (in shares)	8,000,000	8,000,000		8,000,000				8,000,000
Common stock, outstanding (in shares)	7,428,710	7,427,840		7,425,760				7,423,760
Treasury stock, shares (in shares)	571,290	572,160		574,240				576,240
Total ending allowance balance	$ 25,919	$ 25,704	[1]	$ 21,039	[1]	$ 23,362	$ 29,061	$ 31,709
[1] Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies in Notes to Consolidated Financial Statements for additional information related to our adoption of this standard.

Consolidated Balance Sheets_2_3

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023		Dec. 31, 2022		Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 9,047	$ 10,616		$ 9,124				$ 8,989
Interest-earning deposits with banks	71,752	106,323		41,171				68,374
Cash and cash equivalents	80,799	116,939		50,295		$ 92,815		77,363	$ 228,704	$ 83,747
Securities available-for-sale, at fair value	1,252,190	1,362,785		1,371,757				1,605,681
Restricted stock, at cost	3,914	9,129		16,443				12,079
Loans held-for-sale, at fair value	456	360		0				1,249
Loans	2,000,969	1,951,738		1,887,221				1,745,073
Allowance for credit losses	(25,919)	(25,704)	[1]	(21,039)	[1]	(23,362)	$ (29,061)	(31,709)
Loans, net	1,975,050	1,926,034		1,866,182				1,713,364
Premises and equipment, net	56,183	55,157		53,170				36,875
Accrued interest receivable	14,781	15,158		15,481				15,253
Company-owned life insurance	93,625	93,053		92,487				91,062
Other assets	92,228	92,571		97,083				68,817
Total Assets	3,569,226	3,671,186		3,562,898				3,621,743
Liabilities
Non-interest-bearing deposits	876,396	906,723		960,692				930,847
Interest-bearing deposits	2,128,867	2,125,668		1,959,708				2,002,570
Total deposits	3,005,263	3,032,391		2,920,400				2,933,417
Borrowed funds	249,000	321,700		343,100				275,000
Accrued interest and other liabilities	24,891	27,312		25,945				23,699
Total Liabilities	3,279,154	3,381,403		3,289,445				3,232,116
Commitments and contingent liabilities (see Note 10)
Shareholders’ Equity
Preferred Stock, $1.00 par value per share; 2,000,000 shares authorized; no shares issued or outstanding	0	0		0				0
Common Stock	4,000	4,000		4,000				4,000
Additional paid-in capital	13,208	12,686		12,282				10,374
Retained earnings	426,625	424,532		424,391				396,120
Accumulated other comprehensive income (loss)	(126,177)	(123,809)		(139,495)				6,955
Treasury stock	(27,584)	(27,626)		(27,725)				(27,822)
Total Shareholders’ Equity	290,072	289,783		273,453		$ 291,138	$ 330,910	389,627	$ 384,877	$ 353,528
Total Liabilities and Shareholders’ Equity	$ 3,569,226	$ 3,671,186		$ 3,562,898				$ 3,621,743
[1] Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies in Notes to Consolidated Financial Statements for additional information related to our adoption of this standard.

Consolidated Balance Sheets (_3

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value per share (in dollars per share)	$ 1	$ 1	$ 1	$ 1
Preferred stock, authorized (in shares)	2,000,000	2,000,000	2,000,000	2,000,000
Preferred stock, issued (in shares)	0	0	0	0
Preferred stock, outstanding (in shares)	0	0	0	0
Common stock, par value per share (in dollars per share)	$ 0.50	$ 0.50	$ 0.50	$ 0.50
Common stock, authorized (in shares)	20,000,000	20,000,000	20,000,000	20,000,000
Common stock, issued (in shares)	8,000,000	8,000,000	8,000,000	8,000,000
Common stock, outstanding (in shares)	7,428,710	7,427,840	7,425,760	7,423,760
Treasury stock, shares (in shares)	571,290	572,160	574,240	576,240

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Interest income
Loans, including fees	$ 25,300	$ 22,760	$ 17,418	$ 16,450	$ 48,060	$ 33,868	$ 73,640	$ 73,170	$ 78,262
Taxable securities	9,419	9,802	6,572	5,358	19,221	11,930	29,616	17,537	13,288
Tax-exempt securities	1,409	1,458	2,464	2,426	2,867	4,890	8,940	9,907	8,737
Other interest income	988	308	88	18	1,296	106	437	206	710
Total interest income	37,116	34,328	26,542	24,252	71,444	50,794	112,633	100,820	100,997
Interest expense
Deposits	10,030	5,401	368	400	15,431	769	3,742	2,746	9,696
Borrowed funds	3,279	4,138	527	366	7,417	892	5,136	1,432	1,579
Other interest expense	15	15	16	15	30	31	63	39	6
Total interest expense	13,324	9,554	911	781	22,878	1,692	8,941	4,217	11,281
Net interest income	23,792	24,774	25,631	23,471	48,566	49,102	103,692	96,603	89,716
Provision for (recapture of) loan losses	214	515	(2,538)	(2,638)	729	(5,176)	(7,466)	(1,002)	12,648
Net interest income after credit loss expense	23,578	24,259	28,169	26,109	47,837	54,278	111,158	97,605	77,068
Non-interest income
Net gains (losses) on securities	(111)	0	0	104	(111)	104	(454)	(4)	1,944
Income from life insurance	571	560	542	537	1,131	1,079	2,656	2,325	2,303
Other non-interest income	1,119	682	831	536	1,801	1,367	2,721	3,440	4,606
Total non-interest income	4,625	4,214	4,496	4,115	8,839	8,611	17,087	17,251	19,004
Non-interest expense
Salaries and wages	9,922	9,494	9,617	9,529	19,416	19,146	39,438	37,099	33,377
Pensions and other employee benefits	2,406	2,468	1,901	2,039	4,874	3,940	7,700	7,621	7,568
Occupancy	1,545	1,457	1,609	1,546	3,002	3,155	5,621	6,444	6,003
Equipment rentals, depreciation and maintenance	1,457	1,339	1,383	1,379	2,796	2,762	5,768	5,481	4,935
Other operating	6,018	5,607	5,858	4,672	11,625	10,530	17,419	17,769	15,750
Total non-interest expense	21,348	20,365	20,368	19,165	41,713	39,533	75,946	74,414	67,633
Income before income taxes	6,855	8,108	12,297	11,059	14,963	23,356	52,299	40,442	28,439
Income tax expense	821	584	1,900	1,933	1,405	3,833	8,286	4,277	1,940
Net income	$ 6,034	$ 7,524	$ 10,397	$ 9,126	$ 13,558	$ 19,523	$ 44,013	$ 36,165	$ 26,499
Earnings per common share:
Basic EPS (in usd per share)	$ 0.81	$ 1.01	$ 1.40	$ 1.23	$ 1.82	$ 2.63	$ 5.93	$ 4.87	$ 3.56
Diluted EPS (in usd per share)	$ 0.80	$ 1	$ 1.39	$ 1.23	$ 1.80	$ 2.62	$ 5.89	$ 4.87	$ 3.55
Fiduciary and wealth management
Non-interest income
Revenue from contract with customer	$ 1,305	$ 1,337	$ 1,362	$ 1,305	$ 2,642	$ 2,667	$ 5,309	$ 5,162	$ 4,451
Service charges and fees
Non-interest income
Revenue from contract with customer	$ 1,741	$ 1,635	$ 1,761	$ 1,633	$ 3,376	$ 3,394	$ 6,855	$ 6,328	$ 5,700

Consolidated Statements of In_2

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Interest income
Loans, including fees	$ 25,300	$ 22,760	$ 17,418	$ 16,450	$ 48,060	$ 33,868	$ 73,640	$ 73,170	$ 78,262
Taxable securities	9,419	9,802	6,572	5,358	19,221	11,930	29,616	17,537	13,288
Tax-exempt securities	1,409	1,458	2,464	2,426	2,867	4,890	8,940	9,907	8,737
Other interest income	988	308	88	18	1,296	106	437	206	710
Total interest income	37,116	34,328	26,542	24,252	71,444	50,794	112,633	100,820	100,997
Interest expense
Deposits	10,030	5,401	368	400	15,431	769	3,742	2,746	9,696
Borrowed funds	3,279	4,138	527	366	7,417	892	5,136	1,432	1,579
Other interest expense	15	15	16	15	30	31	63	39	6
Total interest expense	13,324	9,554	911	781	22,878	1,692	8,941	4,217	11,281
Net interest income	23,792	24,774	25,631	23,471	48,566	49,102	103,692	96,603	89,716
Provision for (recapture of) credit losses	214	515	(2,538)	(2,638)	729	(5,176)	(7,466)	(1,002)	12,648
Net interest income after credit loss expense	23,578	24,259	28,169	26,109	47,837	54,278	111,158	97,605	77,068
Non-interest income
Net gains (losses) on securities	(111)	0	0	104	(111)	104	(454)	(4)	1,944
Income from life insurance	571	560	542	537	1,131	1,079	2,656	2,325	2,303
Other non-interest income	1,119	682	831	536	1,801	1,367	2,721	3,440	4,606
Total non-interest income	4,625	4,214	4,496	4,115	8,839	8,611	17,087	17,251	19,004
Non-interest expense
Salaries and wages	9,922	9,494	9,617	9,529	19,416	19,146	39,438	37,099	33,377
Pensions and other employee benefits	2,406	2,468	1,901	2,039	4,874	3,940	7,700	7,621	7,568
Occupancy	1,545	1,457	1,609	1,546	3,002	3,155	5,621	6,444	6,003
Equipment rentals, depreciation and maintenance	1,457	1,339	1,383	1,379	2,796	2,762	5,768	5,481	4,935
Other operating	6,018	5,607	5,858	4,672	11,625	10,530	17,419	17,769	15,750
Total non-interest expense	21,348	20,365	20,368	19,165	41,713	39,533	75,946	74,414	67,633
Income before income taxes	6,855	8,108	12,297	11,059	14,963	23,356	52,299	40,442	28,439
Income tax expense	821	584	1,900	1,933	1,405	3,833	8,286	4,277	1,940
Net income	$ 6,034	$ 7,524	$ 10,397	$ 9,126	$ 13,558	$ 19,523	$ 44,013	$ 36,165	$ 26,499
Earnings per common share:
Basic EPS (in usd per share)	$ 0.81	$ 1.01	$ 1.40	$ 1.23	$ 1.82	$ 2.63	$ 5.93	$ 4.87	$ 3.56
Diluted EPS (in usd per share)	$ 0.80	$ 1	$ 1.39	$ 1.23	$ 1.80	$ 2.62	$ 5.89	$ 4.87	$ 3.55
Fiduciary and wealth management
Non-interest income
Revenue from contract with customer	$ 1,305	$ 1,337	$ 1,362	$ 1,305	$ 2,642	$ 2,667	$ 5,309	$ 5,162	$ 4,451
Service charges and fees
Non-interest income
Revenue from contract with customer	$ 1,741	$ 1,635	$ 1,761	$ 1,633	$ 3,376	$ 3,394	$ 6,855	$ 6,328	$ 5,700

Consolidated Statements of In_3

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Interest income
Loans, including fees	$ 25,300	$ 22,760	$ 17,418	$ 16,450	$ 48,060	$ 33,868	$ 73,640	$ 73,170	$ 78,262
Taxable securities	9,419	9,802	6,572	5,358	19,221	11,930	29,616	17,537	13,288
Tax-exempt securities	1,409	1,458	2,464	2,426	2,867	4,890	8,940	9,907	8,737
Other interest income	988	308	88	18	1,296	106	437	206	710
Total interest income	37,116	34,328	26,542	24,252	71,444	50,794	112,633	100,820	100,997
Interest expense
Deposits	10,030	5,401	368	400	15,431	769	3,742	2,746	9,696
Borrowed funds	3,279	4,138	527	366	7,417	892	5,136	1,432	1,579
Other interest expense	15	15	16	15	30	31	63	39	6
Total interest expense	13,324	9,554	911	781	22,878	1,692	8,941	4,217	11,281
Net interest income	23,792	24,774	25,631	23,471	48,566	49,102	103,692	96,603	89,716
Provision for (recapture of) loan losses	214	515	(2,538)	(2,638)	729	(5,176)	(7,466)	(1,002)	12,648
Net interest income after credit loss expense	23,578	24,259	28,169	26,109	47,837	54,278	111,158	97,605	77,068
Non-interest income
Net gains/(losses) on securities	(111)	0	0	104	(111)	104	(454)	(4)	1,944
Income from company-owned life insurance	571	560	542	537	1,131	1,079	2,656	2,325	2,303
Other non-interest income	1,119	682	831	536	1,801	1,367	2,721	3,440	4,606
Total non-interest income	4,625	4,214	4,496	4,115	8,839	8,611	17,087	17,251	19,004
Non-interest expense
Salaries and wages	9,922	9,494	9,617	9,529	19,416	19,146	39,438	37,099	33,377
Pensions and other employee benefits	2,406	2,468	1,901	2,039	4,874	3,940	7,700	7,621	7,568
Occupancy	1,545	1,457	1,609	1,546	3,002	3,155	5,621	6,444	6,003
Equipment rentals, depreciation and maintenance	1,457	1,339	1,383	1,379	2,796	2,762	5,768	5,481	4,935
Other operating	6,018	5,607	5,858	4,672	11,625	10,530	17,419	17,769	15,750
Total non-interest expense	21,348	20,365	20,368	19,165	41,713	39,533	75,946	74,414	67,633
Income before income taxes	6,855	8,108	12,297	11,059	14,963	23,356	52,299	40,442	28,439
Income tax expense	821	584	1,900	1,933	1,405	3,833	8,286	4,277	1,940
Net income	$ 6,034	$ 7,524	$ 10,397	$ 9,126	$ 13,558	$ 19,523	$ 44,013	$ 36,165	$ 26,499
Earnings per common share:
Basic EPS (in usd per share)	$ 0.81	$ 1.01	$ 1.40	$ 1.23	$ 1.82	$ 2.63	$ 5.93	$ 4.87	$ 3.56
Diluted EPS (in usd per share)	$ 0.80	$ 1	$ 1.39	$ 1.23	$ 1.80	$ 2.62	$ 5.89	$ 4.87	$ 3.55
Fiduciary and wealth management
Non-interest income
Revenue from contract with customer	$ 1,305	$ 1,337	$ 1,362	$ 1,305	$ 2,642	$ 2,667	$ 5,309	$ 5,162	$ 4,451
Service charges and fees
Non-interest income
Revenue from contract with customer	$ 1,741	$ 1,635	$ 1,761	$ 1,633	$ 3,376	$ 3,394	$ 6,855	$ 6,328	$ 5,700

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 6,034	$ 7,524	$ 10,397	$ 9,126	$ 13,558	$ 19,523	$ 44,013	$ 36,165	$ 26,499
Unrealized gains (losses) on securities:
Unrealized gain (loss) arising during period, net of tax of $38,333 for 2022, $4,236 for 2021 and ($6,008) for 2020	(5,254)	17,218	(46,277)	(63,808)	11,964	(110,085)	(144,209)	(15,933)	22,603
Reclassification adjustment for loss (gain) on securities, net of tax of $95 for 2022, $1 for 2021, and ($408) for 2020	88	0	0	(82)	88	(82)	359	3	(1,536)
Defined benefit pension plans:
Changes in pension plan benefits, net of tax of $263 for 2022, ($81) for 2021 and ($23) for 2020	0	0	0	0	0	0	(1,011)	305	87
Unrealized gain (loss) on cash flow hedge:
Unrealized holding gain (loss) on cash flow hedge, net of tax $457 for 2022 and $0 for 2021 and 2020	(275)	47	(362)	(503)	(228)	(865)	(1,721)	0	0
Reclassification adjustment for losses (gains) included in net income, net of tax ($35)for 2022 and $0 for 2021 and 2020	334	287	(85)	(59)	621	(144)	132	0	0
Total other comprehensive income (loss)	(2,368)	15,686	(46,724)	(64,452)	13,318	(111,176)	(146,450)	(15,625)	21,154
Comprehensive income (loss)	$ 3,666	$ 23,210	$ (36,327)	$ (55,326)	$ 26,876	$ (91,653)	$ (102,437)	$ 20,540	$ 47,653

Consolidated Statements of Co_2

Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Unrealized gain (loss) arising during period, tax expense (benefit)	$ 1,397	$ (4,577)	$ 12,302	$ 16,962	$ (3,180)	$ 29,263	$ 38,333	$ 4,236	$ (6,008)
Reclassification adjustment for loss (gain) on securities, tax	(23)	0	0	22	(23)	22	95	1	(408)
Changes in pension plan benefits, tax							263	(81)	(23)
Unrealized holding gain (loss) on cash flow hedge, tax	73	(13)	96	133	61	230	457	0	0
Reclassification adjustment for losses (gains) included in net income, tax	$ (89)	$ (76)	$ 23	$ 16	$ (166)	$ 38	$ (35)	$ 0	$ 0

Consolidated Statements of Co_3

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 6,034	$ 7,524	$ 10,397	$ 9,126	$ 13,558	$ 19,523	$ 44,013	$ 36,165	$ 26,499
Unrealized gains (losses) on securities:
Unrealized gain (loss) arising during period, net of tax of ($4,577) for March 31, 2023, and $16,962 for March 31, 2022	(5,254)	17,218	(46,277)	(63,808)	11,964	(110,085)	(144,209)	(15,933)	22,603
Reclassification adjustment for loss (gain) on securities, net of tax of $— for March 31, 2023, and $22 for March 31, 2022	88	0	0	(82)	88	(82)	359	3	(1,536)
Reclassification adjustment for loss (gain) on a fair value hedge, net of tax of $496 for March 31, 2023, $— for March 31, 2022	2,739	(1,866)	0	0	873	0
Unrealized gain (loss) on cash flow hedge:
Unrealized holding gain (loss) on cash flow hedge, net of tax of ($13) for March 31, 2023, and $133 for March 31, 2022	(275)	47	(362)	(503)	(228)	(865)	(1,721)	0	0
Reclassification adjustment for losses (gains) included in net income, net of tax ($76) for March 31, 2023, and $16 for March 31, 2022	334	287	(85)	(59)	621	(144)	132	0	0
Total other comprehensive income (loss)	(2,368)	15,686	(46,724)	(64,452)	13,318	(111,176)	(146,450)	(15,625)	21,154
Comprehensive income (loss)	$ 3,666	$ 23,210	$ (36,327)	$ (55,326)	$ 26,876	$ (91,653)	$ (102,437)	$ 20,540	$ 47,653

Consolidated Statements of Co_4

Consolidated Statements of Comprehensive Income (Loss) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Unrealized gain (loss) arising during period, tax expense (benefit)	$ 1,397	$ (4,577)	$ 12,302	$ 16,962	$ (3,180)	$ 29,263	$ 38,333	$ 4,236	$ (6,008)
Reclassification adjustment for loss (gain) on securities, tax	(23)	0	0	22	(23)	22	95	1	(408)
Reclassification adjustment for loss (gain) on a fair value hedge, tax	(728)	496	0	0	(232)	0
Unrealized holding gain (loss) on cash flow hedge, tax	73	(13)	96	133	61	230	457	0	0
Reclassification adjustment for losses (gains) included in net income, tax	$ (89)	$ (76)	$ 23	$ 16	$ (166)	$ 38	$ (35)	$ 0	$ 0

Consolidated Statements of Co_5

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 6,034	$ 7,524	$ 10,397	$ 9,126	$ 13,558	$ 19,523	$ 44,013	$ 36,165	$ 26,499
Unrealized gains (losses) on securities:
Unrealized gain (loss) arising during period, net of tax of $1,397 and $12,302 for the three months ended June 30, 2023, and June 30, 2022, respectively, net of tax of ($3,180) and $29,263 for the six months ended June, 30, 2023, and June 30, 2022, respectively	(5,254)	17,218	(46,277)	(63,808)	11,964	(110,085)	(144,209)	(15,933)	22,603
Reclassification adjustment for loss (gain) on securities, net of tax of ($23) and $— for the three months ended June 30, 2023, and June 30, 2022, respectively, net of tax of ($23) and $22 for the six months ended June 30, 2023 and June 30, 2022, respectively	88	0	0	(82)	88	(82)	359	3	(1,536)
Reclassification adjustment for loss (gain) on fair value hedge, net of tax of ($728) and $— for the three months ended June 30, 2023, and June 30, 2022, respectively, net of tax of ($232) and $0 for the six months ended June 30, 2023, and June 30, 2022, respectively	2,739	(1,866)	0	0	873	0
Unrealized gain (loss) on cash flow hedge:
Unrealized holding gain (loss) on cash flow hedge, net of tax of $73 and $96 for the three months ended June 30, 2023, and June 30, 2022, respectively, net of tax of $61 and $230 for the six months ended June 30, 2023, and June 30, 2022, respectively	(275)	47	(362)	(503)	(228)	(865)	(1,721)	0	0
Reclassification adjustment for losses (gains) included in net income, net of tax ($89) and $23 for the three months ended June 30, 2023, and June 30, 2022, respectively, net of tax of ($166) and $38 for the six months ended June 30, 2023, and June 30, 2022, respectively	334	287	(85)	(59)	621	(144)	132	0	0
Total other comprehensive income (loss)	(2,368)	15,686	(46,724)	(64,452)	13,318	(111,176)	(146,450)	(15,625)	21,154
Comprehensive income (loss)	$ 3,666	$ 23,210	$ (36,327)	$ (55,326)	$ 26,876	$ (91,653)	$ (102,437)	$ 20,540	$ 47,653

Consolidated Statements of Co_6

Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Unrealized gain (loss) arising during period, tax expense (benefit)	$ 1,397	$ (4,577)	$ 12,302	$ 16,962	$ (3,180)	$ 29,263	$ 38,333	$ 4,236	$ (6,008)
Reclassification adjustment for loss (gain) on securities, tax	(23)	0	0	22	(23)	22	95	1	(408)
Reclassification adjustment for loss (gain) on a fair value hedge, tax	(728)	496	0	0	(232)	0
Unrealized holding gain (loss) on cash flow hedge, tax	73	(13)	96	133	61	230	457	0	0
Reclassification adjustment for losses (gains) included in net income, tax	$ (89)	$ (76)	$ 23	$ 16	$ (166)	$ 38	$ (35)	$ 0	$ 0

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Thousands	Total	Common Stock	Paid-in Capital	Retained Earnings	Comprehensive Income (Loss)	Treasury Stock
Common stock, beginning balance (in shares) at Dec. 31, 2019		7,478,320
Beginning balance at Dec. 31, 2019	$ 353,528	$ 4,000	$ 10,032	$ 363,232	$ 1,426	$ (25,162)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	26,499			26,499
Other comprehensive income (loss)	21,154				21,154
(Purchase) sale of treasury stock, net (in shares)		(30,240)
(Purchase) sale of treasury stock, net	(1,545)					(1,545)
Cash dividends, declared	(14,905)			(14,905)
Share-based compensation expense, net	146		146
Common stock, ending balance (in shares) at Dec. 31, 2020		7,448,080
Ending balance at Dec. 31, 2020	384,877	$ 4,000	10,178	374,826	22,580	(26,707)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	36,165			36,165
Other comprehensive income (loss)	(15,625)				(15,625)
(Purchase) sale of treasury stock, net (in shares)		(24,320)
(Purchase) sale of treasury stock, net	(1,115)					(1,115)
Cash dividends, declared	(14,871)			(14,871)
Share-based compensation expense, net	$ 196		196
Common stock, ending balance (in shares) at Dec. 31, 2021	7,423,760	7,423,760
Ending balance at Dec. 31, 2021	$ 389,627	$ 4,000	10,374	396,120	6,955	(27,822)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,126			9,126
Other comprehensive income (loss)	(64,452)				(64,452)
Cash dividends, declared	(3,935)			(3,935)
Share-based compensation expense, net	517		517
Common stock, ending balance (in shares) at Mar. 31, 2022		7,424,320
Ending balance at Mar. 31, 2022	$ 330,910	$ 4,000	10,891	401,311	(57,497)	(27,795)
Common stock, beginning balance (in shares) at Dec. 31, 2021	7,423,760	7,423,760
Beginning balance at Dec. 31, 2021	$ 389,627	$ 4,000	10,374	396,120	6,955	(27,822)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	19,523			19,523
Other comprehensive income (loss)	(111,176)				(111,176)
Cash dividends, declared	(7,871)			(7,871)
Share-based compensation expense, net	939		939
Common stock, ending balance (in shares) at Jun. 30, 2022		7,425,760
Ending balance at Jun. 30, 2022	$ 291,138	$ 4,000	11,313	407,772	(104,221)	(27,726)
Common stock, beginning balance (in shares) at Dec. 31, 2021	7,423,760	7,423,760
Beginning balance at Dec. 31, 2021	$ 389,627	$ 4,000	10,374	396,120	6,955	(27,822)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	44,013			44,013
Other comprehensive income (loss)	(146,450)				(146,450)
(Purchase) sale of treasury stock, net (in shares)		2,000
(Purchase) sale of treasury stock, net	97					97
Cash dividends, declared	(15,742)			(15,742)
Share-based compensation expense, net	$ 1,908		1,908
Common stock, ending balance (in shares) at Dec. 31, 2022	7,425,760	7,425,760
Ending balance at Dec. 31, 2022	$ 273,453	$ 4,000	12,282	424,391	(139,495)	(27,725)
Common stock, beginning balance (in shares) at Mar. 31, 2022		7,424,320
Beginning balance at Mar. 31, 2022	330,910	$ 4,000	10,891	401,311	(57,497)	(27,795)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	10,397			10,397
Other comprehensive income (loss)	(46,724)				(46,724)
Cash dividends, declared	(3,936)			(3,936)
Share-based compensation expense, net	422		422
Common stock, ending balance (in shares) at Jun. 30, 2022		7,425,760
Ending balance at Jun. 30, 2022	$ 291,138	$ 4,000	11,313	407,772	(104,221)	(27,726)
Common stock, beginning balance (in shares) at Dec. 31, 2022	7,425,760	7,425,760
Beginning balance at Dec. 31, 2022	$ 273,453	$ 4,000	12,282	424,391	(139,495)	(27,725)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,524			7,524
Other comprehensive income (loss)	15,686				15,686
Cash dividends, declared	(3,936)			(3,936)
Share-based compensation expense, net	$ 396		404	(8)
Common stock, ending balance (in shares) at Mar. 31, 2023	7,427,840	7,427,840
Ending balance at Mar. 31, 2023	$ 289,783	$ 4,000	12,686	424,532	(123,809)	(27,626)
Common stock, beginning balance (in shares) at Dec. 31, 2022	7,425,760	7,425,760
Beginning balance at Dec. 31, 2022	$ 273,453	$ 4,000	12,282	424,391	(139,495)	(27,725)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	13,558			13,558
Other comprehensive income (loss)	13,318				13,318
Cash dividends, declared	(7,872)			(7,872)
Share-based compensation expense, net	$ 913		926	(13)
Common stock, ending balance (in shares) at Jun. 30, 2023	7,428,710	7,428,710
Ending balance at Jun. 30, 2023	$ 290,072	$ 4,000	13,208	426,625	(126,177)	(27,584)
Common stock, beginning balance (in shares) at Mar. 31, 2023	7,427,840	7,427,840
Beginning balance at Mar. 31, 2023	$ 289,783	$ 4,000	12,686	424,532	(123,809)	(27,626)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	6,034			6,034
Other comprehensive income (loss)	(2,368)				(2,368)
Cash dividends, declared	(3,936)			(3,936)
Share-based compensation expense, net	$ 517		522	(5)
Common stock, ending balance (in shares) at Jun. 30, 2023	7,428,710	7,428,710
Ending balance at Jun. 30, 2023	$ 290,072	$ 4,000	$ 13,208	$ 426,625	$ (126,177)	$ (27,584)

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Thousands	Total	Impact of CECL Adoption	Common Stock	Additional Paid-in Capital	Retained Earnings	Retained Earnings Impact of CECL Adoption	Comprehensive Income (Loss)	Treasury Stock
Common stock, beginning balance (in shares) at Dec. 31, 2019			7,478,320
Beginning balance at Dec. 31, 2019	$ 353,528		$ 4,000	$ 10,032	$ 363,232		$ 1,426	$ (25,162)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	26,499				26,499
Other comprehensive income (loss)	21,154						21,154
Cash dividends, declared	(14,905)				(14,905)
Share-based compensation expense, net	146			146
Common stock, ending balance (in shares) at Dec. 31, 2020			7,448,080
Ending balance at Dec. 31, 2020	384,877		$ 4,000	10,178	374,826		22,580	(26,707)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	36,165				36,165
Other comprehensive income (loss)	(15,625)						(15,625)
Cash dividends, declared	(14,871)				(14,871)
Share-based compensation expense, net	$ 196			196
Common stock, ending balance (in shares) at Dec. 31, 2021	7,423,760		7,423,760
Ending balance at Dec. 31, 2021	$ 389,627		$ 4,000	10,374	396,120		6,955	(27,822)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,126				9,126
Other comprehensive income (loss)	(64,452)						(64,452)
(Purchase) sale of treasury stock, net (in shares)			560
(Purchase) sale of treasury stock, net	27							27
Cash dividends, declared	(3,935)				(3,935)
Share-based compensation expense, net	517			517
Common stock, ending balance (in shares) at Mar. 31, 2022			7,424,320
Ending balance at Mar. 31, 2022	$ 330,910		$ 4,000	10,891	401,311		(57,497)	(27,795)
Common stock, beginning balance (in shares) at Dec. 31, 2021	7,423,760		7,423,760
Beginning balance at Dec. 31, 2021	$ 389,627		$ 4,000	10,374	396,120		6,955	(27,822)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	19,523				19,523
Other comprehensive income (loss)	(111,176)						(111,176)
(Purchase) sale of treasury stock, net (in shares)			2,000
(Purchase) sale of treasury stock, net	96							96
Cash dividends, declared	(7,871)				(7,871)
Share-based compensation expense, net	939			939
Common stock, ending balance (in shares) at Jun. 30, 2022			7,425,760
Ending balance at Jun. 30, 2022	$ 291,138		$ 4,000	11,313	407,772		(104,221)	(27,726)
Common stock, beginning balance (in shares) at Dec. 31, 2021	7,423,760		7,423,760
Beginning balance at Dec. 31, 2021	$ 389,627		$ 4,000	10,374	396,120		6,955	(27,822)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	44,013				44,013
Other comprehensive income (loss)	$ (146,450)						(146,450)
(Purchase) sale of treasury stock, net (in shares)	2,000
Cash dividends, declared	$ (15,742)				(15,742)
Share-based compensation expense, net	$ 1,908			1,908
Common stock, ending balance (in shares) at Dec. 31, 2022	7,425,760		7,425,760
Ending balance at Dec. 31, 2022	$ 273,453	$ (3,439)	$ 4,000	12,282	424,391	$ (3,439)	(139,495)	(27,725)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting standards update	Accounting Standards Update 2016-13 [Member]
Common stock, beginning balance (in shares) at Mar. 31, 2022			7,424,320
Beginning balance at Mar. 31, 2022	$ 330,910		$ 4,000	10,891	401,311		(57,497)	(27,795)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	10,397				10,397
Other comprehensive income (loss)	(46,724)						(46,724)
(Purchase) sale of treasury stock, net (in shares)			1,440
(Purchase) sale of treasury stock, net	69							69
Cash dividends, declared	(3,936)				(3,936)
Share-based compensation expense, net	422			422
Common stock, ending balance (in shares) at Jun. 30, 2022			7,425,760
Ending balance at Jun. 30, 2022	$ 291,138		$ 4,000	11,313	407,772		(104,221)	(27,726)
Common stock, beginning balance (in shares) at Dec. 31, 2022	7,425,760		7,425,760
Beginning balance at Dec. 31, 2022	$ 273,453	(3,439)	$ 4,000	12,282	424,391	(3,439)	(139,495)	(27,725)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,524				7,524
Other comprehensive income (loss)	15,686						15,686
(Purchase) sale of treasury stock, net (in shares)			2,080
(Purchase) sale of treasury stock, net	99							99
Cash dividends, declared	(3,936)				(3,936)
Share-based compensation expense, net	$ 396			404	(8)
Common stock, ending balance (in shares) at Mar. 31, 2023	7,427,840		7,427,840
Ending balance at Mar. 31, 2023	$ 289,783		$ 4,000	12,686	424,532		(123,809)	(27,626)
Common stock, beginning balance (in shares) at Dec. 31, 2022	7,425,760		7,425,760
Beginning balance at Dec. 31, 2022	$ 273,453	$ (3,439)	$ 4,000	12,282	424,391	$ (3,439)	(139,495)	(27,725)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	13,558				13,558
Other comprehensive income (loss)	13,318						13,318
(Purchase) sale of treasury stock, net (in shares)			2,950
(Purchase) sale of treasury stock, net	141							141
Cash dividends, declared	(7,872)				(7,872)
Share-based compensation expense, net	$ 913			926	(13)
Common stock, ending balance (in shares) at Jun. 30, 2023	7,428,710		7,428,710
Ending balance at Jun. 30, 2023	$ 290,072		$ 4,000	13,208	426,625		(126,177)	(27,584)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting standards update	Accounting Standards Update 2016-13 [Member]
Common stock, beginning balance (in shares) at Mar. 31, 2023	7,427,840		7,427,840
Beginning balance at Mar. 31, 2023	$ 289,783		$ 4,000	12,686	424,532		(123,809)	(27,626)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	6,034				6,034
Other comprehensive income (loss)	(2,368)						(2,368)
(Purchase) sale of treasury stock, net (in shares)			870
(Purchase) sale of treasury stock, net	42							42
Cash dividends, declared	(3,936)				(3,936)
Share-based compensation expense, net	$ 517			522	(5)
Common stock, ending balance (in shares) at Jun. 30, 2023	7,428,710		7,428,710
Ending balance at Jun. 30, 2023	$ 290,072		$ 4,000	$ 13,208	$ 426,625		$ (126,177)	$ (27,584)

Consolidated Statements of Ch_3

Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Thousands	Total	Impact of CECL Adoption	Common Stock	Additional Paid-in Capital	Retained Earnings	Retained Earnings Impact of CECL Adoption	Comprehensive Income (Loss)	Treasury Stock
Common stock, beginning balance (in shares) at Dec. 31, 2019			7,478,320
Beginning balance at Dec. 31, 2019	$ 353,528		$ 4,000	$ 10,032	$ 363,232		$ 1,426	$ (25,162)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	26,499				26,499
Other comprehensive income (loss)	21,154						21,154
Cash dividends, declared	(14,905)				(14,905)
Share-based compensation expense, net	146			146
Common stock, ending balance (in shares) at Dec. 31, 2020			7,448,080
Ending balance at Dec. 31, 2020	384,877		$ 4,000	10,178	374,826		22,580	(26,707)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	36,165				36,165
Other comprehensive income (loss)	(15,625)						(15,625)
Cash dividends, declared	(14,871)				(14,871)
Share-based compensation expense, net	$ 196			196
Common stock, ending balance (in shares) at Dec. 31, 2021	7,423,760		7,423,760
Ending balance at Dec. 31, 2021	$ 389,627		$ 4,000	10,374	396,120		6,955	(27,822)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	9,126				9,126
Other comprehensive income (loss)	(64,452)						(64,452)
(Purchase) sale of treasury stock, net (in shares)			560
(Purchase) sale of treasury stock, net	27							27
Cash dividends, declared	(3,935)				(3,935)
Share-based compensation expense, net	517			517
Common stock, ending balance (in shares) at Mar. 31, 2022			7,424,320
Ending balance at Mar. 31, 2022	$ 330,910		$ 4,000	10,891	401,311		(57,497)	(27,795)
Common stock, beginning balance (in shares) at Dec. 31, 2021	7,423,760		7,423,760
Beginning balance at Dec. 31, 2021	$ 389,627		$ 4,000	10,374	396,120		6,955	(27,822)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	19,523				19,523
Other comprehensive income (loss)	(111,176)						(111,176)
(Purchase) sale of treasury stock, net (in shares)			2,000
(Purchase) sale of treasury stock, net	96							96
Cash dividends, declared	(7,871)				(7,871)
Share-based compensation expense, net	939			939
Common stock, ending balance (in shares) at Jun. 30, 2022			7,425,760
Ending balance at Jun. 30, 2022	$ 291,138		$ 4,000	11,313	407,772		(104,221)	(27,726)
Common stock, beginning balance (in shares) at Dec. 31, 2021	7,423,760		7,423,760
Beginning balance at Dec. 31, 2021	$ 389,627		$ 4,000	10,374	396,120		6,955	(27,822)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	44,013				44,013
Other comprehensive income (loss)	$ (146,450)						(146,450)
(Purchase) sale of treasury stock, net (in shares)	2,000
Cash dividends, declared	$ (15,742)				(15,742)
Share-based compensation expense, net	$ 1,908			1,908
Common stock, ending balance (in shares) at Dec. 31, 2022	7,425,760		7,425,760
Ending balance at Dec. 31, 2022	$ 273,453	$ (3,439)	$ 4,000	12,282	424,391	$ (3,439)	(139,495)	(27,725)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting standards update	Accounting Standards Update 2016-13 [Member]
Common stock, beginning balance (in shares) at Mar. 31, 2022			7,424,320
Beginning balance at Mar. 31, 2022	$ 330,910		$ 4,000	10,891	401,311		(57,497)	(27,795)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	10,397				10,397
Other comprehensive income (loss)	(46,724)						(46,724)
(Purchase) sale of treasury stock, net (in shares)			1,440
(Purchase) sale of treasury stock, net	69							69
Cash dividends, declared	(3,936)				(3,936)
Share-based compensation expense, net	422			422
Common stock, ending balance (in shares) at Jun. 30, 2022			7,425,760
Ending balance at Jun. 30, 2022	$ 291,138		$ 4,000	11,313	407,772		(104,221)	(27,726)
Common stock, beginning balance (in shares) at Dec. 31, 2022	7,425,760		7,425,760
Beginning balance at Dec. 31, 2022	$ 273,453	(3,439)	$ 4,000	12,282	424,391	(3,439)	(139,495)	(27,725)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	7,524				7,524
Other comprehensive income (loss)	15,686						15,686
(Purchase) sale of treasury stock, net (in shares)			2,080
(Purchase) sale of treasury stock, net	99							99
Cash dividends, declared	(3,936)				(3,936)
Share-based compensation expense, net	$ 396			404	(8)
Common stock, ending balance (in shares) at Mar. 31, 2023	7,427,840		7,427,840
Ending balance at Mar. 31, 2023	$ 289,783		$ 4,000	12,686	424,532		(123,809)	(27,626)
Common stock, beginning balance (in shares) at Dec. 31, 2022	7,425,760		7,425,760
Beginning balance at Dec. 31, 2022	$ 273,453	$ (3,439)	$ 4,000	12,282	424,391	$ (3,439)	(139,495)	(27,725)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	13,558				13,558
Other comprehensive income (loss)	13,318						13,318
(Purchase) sale of treasury stock, net (in shares)			2,950
(Purchase) sale of treasury stock, net	141							141
Cash dividends, declared	(7,872)				(7,872)
Share-based compensation expense, net	$ 913			926	(13)
Common stock, ending balance (in shares) at Jun. 30, 2023	7,428,710		7,428,710
Ending balance at Jun. 30, 2023	$ 290,072		$ 4,000	13,208	426,625		(126,177)	(27,584)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting standards update	Accounting Standards Update 2016-13 [Member]
Common stock, beginning balance (in shares) at Mar. 31, 2023	7,427,840		7,427,840
Beginning balance at Mar. 31, 2023	$ 289,783		$ 4,000	12,686	424,532		(123,809)	(27,626)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	6,034				6,034
Other comprehensive income (loss)	(2,368)						(2,368)
(Purchase) sale of treasury stock, net (in shares)			870
(Purchase) sale of treasury stock, net	42							42
Cash dividends, declared	(3,936)				(3,936)
Share-based compensation expense, net	$ 517			522	(5)
Common stock, ending balance (in shares) at Jun. 30, 2023	7,428,710		7,428,710
Ending balance at Jun. 30, 2023	$ 290,072		$ 4,000	$ 13,208	$ 426,625		$ (126,177)	$ (27,584)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash Flows from Operating Activities
Net income	$ 44,013	$ 36,165	$ 26,499
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of fixed assets	3,053	3,205	2,937
Amortization of housing tax credits	6,147	6,778	7,046
Realized (gain) loss on sales of available-for-sale securities	454	4	(1,944)
Provision for (recapture of) loan losses	(7,466)	(1,002)	12,648
Income from company-owned life insurance	(2,656)	(2,325)	(2,303)
Deferred tax expense (benefit)	1,397	(1,659)	(3,830)
(Gain) Loss on Disposal of fixed assets	(4,533)	(1,063)	7
Accretion of securities	(1,622)	(1,380)	(1,087)
Amortization of securities	11,117	9,870	5,791
Stock based compensation expense	2,000	283	146
Repayment of operating lease liabilities	(2,330)	(2,076)	(2,020)
(Gain) on loans held for sale	(58)	(194)	(122)
Proceeds from sale of loans held for sale	9,585	50,194	59,896
Change in fair value of loans held for sale	23	(23)
Originations of loans held for sale	(2,300)	(42,969)	(66,016)
(Increase) in accrued interest receivable	(228)	(1,469)	(5,671)
(Increase) decrease in other assets	501	2,581	(2,334)
Increase (decrease) in accrued interest payable and other liabilities	3,960	32	(6,453)
Net cash flows provided by operating activities	61,057	54,952	23,190
Cash Flows from Investing Activities
Proceeds from maturities, prepayments, and calls of securities available-for-sale, net	213,596	194,578	188,653
Proceeds from sale of securities available-for-sale, net	195,907	700	49,233
Purchases of securities available-for-sale, net	(367,615)	(669,951)	(679,933)
Sales of restricted stock	22,718	1,988	2,252
Purchases of restricted stock	(27,081)	(1,875)	(8,500)
Proceeds from sales of property and equipment	8,260	2,561	0
Purchases of property and equipment, net of disposals	(23,075)	(1,083)	(2,697)
(Purchases of) proceeds from Company-owned life insurance	1,231	240	(7)
Repayment of finance lease liabilities	(152)	(152)	(16)
(Increase) decrease in loans made to customers, net	(151,352)	88,716	45,277
Net cash (used in) provided by investing activities	(127,563)	(384,278)	(405,738)
Cash Flows from Financing Activities
Net increase in non-interest-bearing accounts	29,845	78,838	230,997
Net increase (decrease) in interest-bearing accounts	(42,862)	65,133	162,958
Increase in other borrowed funds	68,100	50,000	150,000
Cash dividends paid	(15,742)	(14,871)	(14,905)
(Purchase) sale of treasury stock	97	(1,115)	(1,545)
Net cash flows provided by (used in) financing activities	39,438	177,985	527,505
Increase (decrease) in cash and cash equivalents	(27,068)	(151,341)	144,957
Beginning of period	77,363	228,704	83,747
End of period	50,295	77,363	228,704
Cash payments for:
Interest paid to depositors	3,411	2,856	10,194
Interest paid on other borrowed funds	4,324	1,430	1,456
Interest paid on finance lease	63	39	6
Income taxes	950	1,347	1,400
Change in unrealized gains on available-for-sale securities	(182,088)	(20,165)	26,668
Change in pension plan benefits	(1,280)	386	110
Lease liability arising from obtaining right of use assets	1,558	2,221	3,310
Premises & equipment transferred to property held for sale	3,449	$ 2,697	$ 447
Transfers from portfolio loans to loans held for sale	19,594
Financing of sale from loan held for sale	$ 9,000

Consolidated Statements of Ca_2

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2022	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021
Cash Flows from Operating Activities
Net income	$ 9,126	$ 19,523	$ 44,013	$ 36,165
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of fixed assets	777	1,522	3,053	3,205
Amortization of housing tax credits	1,537	3,073	6,147	6,778
Realized (gain) on sales of available-for-sale securities	(104)	(104)	454	4
Provision for (recapture of) credit losses	(2,638)	(5,176)	(7,466)	(1,002)
Income from company-owned life insurance	(537)	(1,079)	(2,656)	(2,325)
Deferred tax (benefit)	(214)	611	1,397	(1,659)
Loss on disposal of fixed assets	6	6	(4,533)	(1,063)
Accretion of securities	(315)	(629)	(1,622)	(1,380)
Amortization of securities	2,906	5,863	11,117	9,870
Share-based compensation expense	506	999	2,000	283
Repayment of operating lease liabilities	(555)	(1,123)	(2,330)	(2,076)
(Gain) on loans held for sale	(52)	(60)	(58)	(194)
Proceeds from sale of loans held-for-sale	2,604	9,526	9,585	50,194
Change in fair value of loans held-for-sale	23	23	23	(23)
Originations of loans held-for-sale	(1,326)	(2,300)	(2,300)	(42,969)
(Increase) decrease in accrued interest receivable	(680)	(496)	(228)	(1,469)
(Increase) decrease in other assets	4,027	(968)	501	2,581
Increase (decrease) in accrued interest payable and other liabilities	(896)	1,761	3,960	32
Net cash flows provided by operating activities	14,195	30,972	61,057	54,952
Cash Flows from Investing Activities
Proceeds from maturities, prepayments, and calls of securities available-for-sale, net	66,373	120,207	213,596	194,578
Proceeds from sale of securities available-for-sale, net	87,033	87,033	195,907	700
Purchases of securities available-for-sale, net	(158,035)	(262,116)	(367,615)	(669,951)
Sales of restricted stock	2,250	3,562	22,718	1,988
Purchases of restricted stock	(469)	(4,969)	(27,081)	(1,875)
Purchases of property and equipment, net of disposals	(109)	(746)	(23,075)	(1,083)
(Purchase of) company-owned life insurance	(1)	(6)
(Increase) in loans made to customers, net	(15,235)	(12,639)	(151,352)	88,716
Net cash (used in) provided by investing activities	(18,193)	(69,674)	(127,563)	(384,278)
Cash Flows from Financing Activities
Net increase (decrease) in non-interest-bearing accounts	34,634	56,901	29,845	78,838
Net increase in interest-bearing accounts	5,567	(29,896)	(42,862)	65,133
(Decrease) in other short-term borrowings	(50,000)	35,000
Repayment of finance lease liabilities	(38)	(76)	(152)	(152)
Cash dividends paid	(3,935)	(7,871)	(15,742)	(14,871)
Sale of treasury stock	27	96
Net cash flows provided by (used in) financing activities	(13,745)	54,154	39,438	177,985
Increase (decrease) in cash and cash equivalents	(17,743)	15,452	(27,068)	(151,341)
Beginning of period	77,363	77,363	77,363	228,704
End of period		92,815	50,295	77,363
Beginning of period	79,910	79,910	79,910
End of period	62,167			79,910
Cash payments for:
Interest paid to depositors	413	795	3,411	2,856
Interest paid on other borrowed funds	375	881	4,324	1,430
Interest paid on finance lease	16	32	63	39
Income taxes	0	550	950	1,347
Change in unrealized gains on available-for-sale securities	(80,770)	(139,452)	(182,088)	(20,165)
Lease liability arising from obtaining right-of-use assets	$ 0	$ 502	$ 1,558	$ 2,221

Consolidated Statements of Ca_3

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash Flows from Operating Activities
Net income	$ 7,524	$ 9,126	$ 13,558	$ 19,523	$ 44,013	$ 36,165	$ 26,499
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of fixed assets	684	777	1,354	1,522	3,053	3,205	2,937
Amortization of housing tax credits	1,398	1,537	2,796	3,073	6,147	6,778	7,046
Realized loss (gain) on sales of available-for-sale securities	0	(104)	111	(104)	454	4	(1,944)
Provision for (recapture of) loan losses	515	(2,638)	729	(5,176)	(7,466)	(1,002)	12,648
Income from company-owned life insurance	(560)	(537)	(1,131)	(1,079)	(2,656)	(2,325)	(2,303)
Deferred tax (benefit)	(1,234)	(214)	(1,560)	611	1,397	(1,659)	(3,830)
Loss on disposal of fixed assets	0	6	0	6	(4,533)	(1,063)	7
Accretion of securities	(466)	(315)	(815)	(629)	(1,622)	(1,380)	(1,087)
Amortization of securities	2,350	2,906	4,643	5,863	11,117	9,870	5,791
Share-based compensation expense	581	506	1,188	999	2,000	283	146
Repayment of operating lease liabilities	(810)	(555)	(1,631)	(1,123)	(2,330)	(2,076)	(2,020)
(Gain) on loans held-for-sale	(15)	(52)	(28)	(60)	(58)	(194)	(122)
Proceeds from sale of loans held-for-sale	658	2,604	2,845	9,526	9,585	50,194	59,896
Change in fair value of loans held-for-sale	7	23	6	23	23	(23)
Originations of loans held-for-sale	(1,010)	(1,326)	(3,307)	(2,300)	(2,300)	(42,969)	(66,016)
(Increase) decrease in accrued interest receivable	323	(680)	700	(496)	(228)	(1,469)	(5,671)
(Increase) decrease in other assets	(1,235)	4,027	2,750	(968)	501	2,581	(2,334)
Increase in accrued interest payable and other liabilities	2,216	(896)	656	1,761	3,960	32	(6,453)
Net cash flows provided by operating activities	10,926	14,195	22,864	30,972	61,057	54,952	23,190
Cash Flows from Investing Activities
Proceeds from maturities, prepayments, and calls of securities available-for-sale, net	28,883	66,373	52,500	120,207	213,596	194,578	188,653
Proceeds from sale of securities available-for-sale, net	0	87,033	77,780	87,033	195,907	700	49,233
Purchases of securities available-for-sale, net	0	(158,035)	0	(262,116)	(367,615)	(669,951)	(679,933)
Sales of restricted stock	22,232	2,250	27,447	3,562	22,718	1,988	2,252
Purchases of restricted stock	(14,918)	(469)	(14,918)	(4,969)	(27,081)	(1,875)	(8,500)
Purchases of property and equipment, net of disposals	(2,671)	(109)	(4,367)	(746)	(23,075)	(1,083)	(2,697)
(Purchase of) company-owned life insurance	(6)	(1)	(6)	(6)
(Increase) in loans made to customers, net	(64,517)	(15,235)	(113,748)	(12,639)	(151,352)	88,716	45,277
Net cash (used in) provided by investing activities	(30,997)	(18,193)	24,688	(69,674)	(127,563)	(384,278)	(405,738)
Cash Flows from Financing Activities
Net increase (decrease) in non-interest-bearing accounts	(53,969)	34,634	(84,296)	56,901	29,845	78,838	230,997
Net increase (decrease) in interest-bearing accounts	165,960	5,567	169,159	(29,896)	(42,862)	65,133	162,958
Increase (decrease) in other short-term borrowings	(21,400)	(50,000)	(94,100)	35,000
Repayment of finance lease liabilities	(39)	(38)	(80)	(76)	(152)	(152)
Cash dividends paid	(3,936)	(3,935)	(7,872)	(7,871)	(15,742)	(14,871)	(14,905)
Sale of treasury stock	99	27	141	96
Net cash flows provided by (used in) financing activities	86,715	(13,745)	(17,048)	54,154	39,438	177,985	527,505
Increase (decrease) in cash and cash equivalents	66,644	(17,743)	30,504	15,452	(27,068)	(151,341)	144,957
Beginning of period	50,295	77,363	50,295	77,363	77,363	228,704	83,747
End of period	116,939		80,799	92,815	50,295	77,363	228,704
Cash payments for:
Interest paid to depositors	4,276	413	14,302	795	3,411	2,856	10,194
Interest paid on other borrowed funds	3,952	375	8,379	881	4,324	1,430	1,456
Interest paid on finance lease	15	16	30	32	63	39	6
Income taxes	0	0	275	550	950	1,347	1,400
Change in unrealized gains on available-for-sale securities	21,795	(80,770)	15,255	(139,452)	(182,088)	(20,165)	26,668
Lease liability arising from obtaining right-of-use assets	$ 0	$ 0	0	502	1,558	$ 2,221	$ 3,310
Transfers from portfolio loans to loans held-for-sale			0	19,594	19,594
Financing of sale from loan held-for-sale			$ 0	$ 9,000	$ 9,000

Nature of Business Activities a

Nature of Business Activities and Significant Accounting Policies	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Nature of Business Activities and Significant Accounting Policies	Nature of Business Activities and Significant Accounting Policies Nature of operations Burke & Herbert Financial Services Corp. was organized as a Virginia corporation on September 14, 2022, to serve as the holding company for Burke & Herbert Bank & Trust Company (“the Bank”), together referred to as the “Company”. The Company commenced operations as a bank holding company on October 1, 2022, following a reorganization transaction in which it became the Bank’s holding company. This transaction was treated as an internal reorganization as all shareholders of the Bank became shareholders of the Company. As a bank holding company, the Company is subject to regulation and supervision by the Federal Reserve. The Company has no material operations and owns 100% of the Bank. The Bank is a Virginia chartered commercial bank that commenced operations in 1852. The Bank is supervised and regulated by the Federal Deposit Insurance Corporation (the “FDIC”) and the Bureau of Financial Institutions of the Virginia State Corporation Commission (the “Virginia BFI”). The Bank’s primary market area includes northern Virginia, and it has over 20 branches throughout the Northern Virginia region and commercial loan offices in Fredericksburg, Loudoun County, and Richmond, Virginia, and in Bethesda, Maryland. The Company’s branch locations accept business and consumer deposits from a diverse customer base. The Company’s deposit products include checking, savings, and term certificate accounts. The Company’s loan portfolio includes commercial and consumer loans, a substantial portion of which are secured by real estate. Basis of Presentation The accompanying consolidated financial statements include Burke & Herbert Financial Services Corp. and its wholly owned subsidiary Burke & Herbert Bank & Trust Company and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and with applicable quarterly reporting regulations of the U.S. Securities and Exchange Commission (“SEC”). The accounting and reporting policies of the Company conform to GAAP and reflect practices of the banking industry. They do not include all of the information and notes required by GAAP for complete financial statements. As such, these unaudited financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ending December 31, 2022, included in the Company’s Registration Statement on Form 10 filed with the SEC on February 28, 2023, as amended on April 4, 2023, April 20, 2023, and April 21, 2023, and as declared as effective by the SEC on April 21, 2023. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions between the Company and the Bank have been eliminated. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made. The results of operations for the three months ended March 31, 2023, are not necessarily indicative of the results to be expected for any other interim period or for the full year. All amounts and disclosures included in this quarterly report as of December 31, 2022, were derived from the Company’s audited consolidated financial statements. Certain items in the prior period have been reclassified to conform to the current presentation. These reclassifications had no effect on prior year net income or on shareholders’ equity. Adoption of new accounting standards Derivatives and Hedging On March 28, 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method . The purpose of this updated guidance is to further align risk management objectives with hedge accounting results on the application of the last-of-layer method, which was first introduced in ASU 2017-02, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2022-01 is effective for public business entities for fiscal years beginning after December 15, 2022. ASU 2022-01 requires a modified retrospective transition method for basis adjustments in which the entity will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company adopted this ASU on January 1, 2023, on a prospective basis; therefore, there was no impact to the consolidated financial statements. Allowance for Credit Losses On January 1, 2023, the Company adopted ASU 2016-13 : Measurement of Credit Losses on Financial Instruments ( “ASC 326” ) , as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The CECL methodology requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, as well as future forecasts including reasonable and supportable forecasts and other forecast periods. CECL generally applies to financial assets measured at amortized cost and some off-balance sheet credit exposures, such as unfunded commitments to extend credit. Financial assets measured at amortized cost are presented as the net amount expected to be collected. In addition, CECL made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell. The Company adopted ASC 326 and all related subsequent amendments thereto effective January 1, 2023, using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the new CECL standard resulted in a cumulative-effect adjustment that increased the allowance for credit losses for loans by $4.1 million and increased the allowance for unfunded commitments by $274.8 thousand. Retained earnings, net of deferred taxes, decreased by $3.4 million. Results for reporting periods beginning after January 1, 2023, are presented under ASU 2016-13, while prior period amounts continue to be reported in accordance with the incurred loss model under the previously applicable GAAP. The following table illustrates the impact of the adoption of CECL, and the transition away from the incurred loss method, on January 1, 2023. The impact to the allowance for credit losses (“ACL”) is presented at the loan segment level (in thousands): January 1, 2023 Reserves under Incurred Loss Model Reserves under CECL Model Impact of CECL Adoption Financial Assets: Commercial real estate $ 15,477 $ 18,163 $ 2,686 Owner-occupied commercial real estate 635 629 (6) Acquisition, construction & development 2,082 1,442 (640) Commercial & industrial 438 675 237 Single family residential (1-4 units) 2,379 4,040 1,661 Consumer non-real estate and other 28 215 187 Unallocated reserve — — — Allowance for credit losses on loans $ 21,039 $ 25,164 $ 4,125 Financial Liabilities: Allowance for credit losses on off-balance sheet credit exposure $ — $ 275 $ 275 The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities. The Company did not record an ACL for securities upon adoption. The Company elected not to measure an ACL for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on non-accrual status, which is generally when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectible interest. On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures . ASU 2022-02 addresses areas identified by the FASB as part of its implementation review of the credit losses standard (ASU 2016-13) that introduced the CECL model. The amendments eliminate the accounting guidance for troubled debt restructurings (“TDRs”) by creditors that have adopted the CECL model and enhance the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, the amendments require that the Company disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The Company adopted the standard prospectively, and it did not have a material impact on the financial statements. Allowance for credit losses - available-for-sale debt securities Management evaluates all available-for-sale (“AFS”) debt securities in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. The Company first assesses whether it intends to sell or if it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists, and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as credit loss expense (or recapture). Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. At March 31, 2023, there was no ACL related to the AFS security portfolio. Refer to Note 2 - Securities in Notes to the Consolidated Financial Statements. Allowance for credit losses - loans The ACL represents an amount, which, in management’s judgment, reflects expected credit losses in the loan portfolio at the balance sheet date. The estimate for expected credit losses is based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions, and prepayment experience as related to credit contractual term information. The ACL is measured and recorded upon the initial recognition of a financial asset. The ACL is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision for (or recapture of) credit losses, which is recorded in the Consolidated Statements of Income. The ACL for expected credit losses is determined based on a quantitative assessment of two categories of loans: collectively evaluated loans and individually evaluated loans. In addition, the ACL also includes a qualitative component which adjusts the CECL model for risk factors that are not considered within the CECL model, but are relevant in assessing the expected credit losses within the loan portfolio. The Company is using a remaining useful life or weighted average remaining maturity (“WARM”) methodology to estimate its current expected credit losses. For purposes of calculating reserves in collectively evaluated loans, ACL calculation segments the Company’s loan portfolio using federal call codes to group loans which share similar risk characteristics. In order to generate reasonable and supportable forecasts of loss rates over a two-year period, the ACL calculation utilizes macroeconomic variable loss drivers, which may include aggregate macroeconomic indicators pertaining to such items as equity market conditions or interest rates, as well as other variables that are portfolio-specific, such as those that pertain to the commercial real estate or residential loan portfolios. A straight-line reversion technique is used for the following four quarters, and in following quarters, the ACL calculation reverts to historical average loss rates. Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond information used to calculate reasonable and supportable, reversion and post-reversion period forecasts on collectively evaluated loans. As the reasonable and supportable and reversion period forecasts reflect the use of the macroeconomic variable loss drivers, management may consider that an additional or reduced reserve is warranted through qualitative risk factors based on current and expected conditions, including those that utilize supplemental information relative to the macroeconomic variable loss drivers. Many of these qualitative risk factors considered by management are comparable to legacy factors prior to the adoption of CECL and include the following: • Nature and volume of loans; • Concentrations of credit; • Delinquency trends; • Experience, ability, and depth of management and lending staff; and • Quality of loan review system. Loans that do not share similar risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans collectively evaluated. A specific reserve analysis is applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the expected future cash flows. A specific reserve may be assigned if the measured value of the loan using one of the before mentioned methods is less than the current carrying value of the loan. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient to measure the ACL based on the fair value of the collateral. A loan is considered collateral-dependent when the Company determines foreclosure is probable or the borrower is experiencing financial difficulty and the Company expects repayment to be provided substantially through the operation or sale of the collateral. Collateral could be in the form of real estate, equipment, or business assets. An ACL may result for a collateral-dependent loan if the fair value of the underlying collateral, as of the reporting date, adjusted for expected costs to repair or sell, was less than the amortized cost basis of the loan. If repayment of the loan is instead dependent only on the operation, rather than the sale of the collateral, the measure of the ACL does not incorporate estimated costs to sell. For loans analyzed on the basis of projected future principal and interest cash flows, the Company will discount the expected cash flows at the effective interest rate of the loan, and an ACL would result if the present value of the expected cash flows was less than the amortized cost basis of the loan. When the discounted cash flow method is used to determine the ACL, management does not adjust the effective interest rate used to discount cash flows to incorporate expected prepayments. Allowance for credit losses on off-balance sheet credit exposures On a quarterly basis, the Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on off-balance sheet credit exposures is adjusted through the provision for credit losses on the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life by loan segment at each balance sheet date under the CECL model using the same methodology as the loan portfolio. The ACL for unfunded commitments is included in accrued interest and other liabilities on the Company’s Consolidated Balance Sheets. Accrued Interest Receivable The Company has elected to exclude accrued interest from the amortized cost basis in its determination of the ACL and elected the policy to write-off accrued interest receivable directly through the reversal of interest income. Accrued interest receivable totaled $7.5 million on loans and totaled $7.9 million on AFS securities at March 31, 2023 , and is included in accrued interest receivable on the Company’s Consolidated Balance Sheets.	Nature of Business Activities and Significant Accounting Policies Nature of operations Burke & Herbert Financial Services Corp. was organized as a Virginia corporation on September 14, 2022, to serve as the holding company for Burke & Herbert Bank & Trust Company (“the Bank”), together referred to as the “Company”. The Company commenced operations as a bank holding company on October 1, 2022, following a reorganization transaction in which it became the Bank’s holding company. This transaction was treated as an internal reorganization as all shareholders of the Bank became shareholders of the Company. As a bank holding company, the Company is subject to regulation and supervision by the Federal Reserve. The Company has no material operations and owns 100% of the Bank. The Bank is a Virginia chartered commercial bank that commenced operations in 1852. The Bank is supervised and regulated by the Federal Deposit Insurance Corporation (the “FDIC”) and the Bureau of Financial Institutions of the Virginia State Corporation Commission (the “Virginia BFI”). The Bank’s primary market area includes northern Virginia, and it has over 20 branches throughout the Northern Virginia region and commercial loan offices in Fredericksburg, Loudoun County, and Richmond, Virginia, and in Bethesda, Maryland. The Company’s branch locations accept business and consumer deposits from a diverse customer base. The Company’s deposit products include checking, savings, and term certificate accounts. The Company’s loan portfolio includes commercial and consumer loans, a substantial portion of which are secured by real estate. Basis of Presentation The accompanying consolidated financial statements include Burke & Herbert Financial Services Corp. and its wholly owned subsidiary Burke & Herbert Bank & Trust Company and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and with applicable quarterly reporting regulations of the U.S. Securities and Exchange Commission (“SEC”). The accounting and reporting policies of the Company conform to GAAP and reflect practices of the banking industry. They do not include all of the information and notes required by GAAP for complete financial statements. As such, these unaudited financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ending December 31, 2022, included in the Company’s Registration Statement on Form 10 filed with the SEC on February 28, 2023, as amended on April 4, 2023, April 20, 2023, and April 21, 2023, and as declared as effective by the SEC on April 21, 2023. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions between the Company and the Bank have been eliminated. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made. The results of operations for the three and six months ended June 30, 2023, are not necessarily indicative of the results to be expected for any other interim period or for the full year. All amounts and disclosures included in this quarterly report as of December 31, 2022, were derived from the Company’s audited consolidated financial statements. Certain items in the prior period have been reclassified to conform to the current presentation. These reclassifications had no effect on prior year net income or on shareholders’ equity. Adoption of new accounting standards Derivatives and Hedging On March 28, 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method . The purpose of this updated guidance is to further align risk management objectives with hedge accounting results on the application of the last-of-layer method, which was first introduced in ASU 2017-02, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2022-01 is effective for public business entities for fiscal years beginning after December 15, 2022. ASU 2022-01 requires a modified retrospective transition method for basis adjustments in which the entity will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company adopted this ASU on January 1, 2023; therefore, there was no impact to the consolidated financial statements. Allowance for Credit Losses On January 1, 2023, the Company adopted ASU 2016-13 : Measurement of Credit Losses on Financial Instruments (“ASC 326”), as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The CECL methodology requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, as well as future forecasts including reasonable and supportable forecasts and other forecast periods. CECL generally applies to financial assets measured at amortized cost and some off-balance sheet credit exposures, such as unfunded commitments to extend credit. Financial assets measured at amortized cost are presented as the net amount expected to be collected. In addition, CECL made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell. The Company adopted ASC 326 and all related subsequent amendments thereto effective January 1, 2023, using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the new CECL standard resulted in a cumulative-effect adjustment that increased the allowance for credit losses for loans by $4.1 million and increased the allowance for unfunded commitments by $274.8 thousand. Retained earnings, net of deferred taxes, decreased by $3.4 million. Results for reporting periods beginning after January 1, 2023, are presented under ASU 2016-13, while prior period amounts continue to be reported in accordance with the incurred loss model under the previously applicable GAAP. The following table illustrates the impact of the adoption of CECL, and the transition away from the incurred loss method, on January 1, 2023. The impact to the allowance for credit losses (“ACL”) is presented at the loan segment level (in thousands): January 1, 2023 Reserves under Incurred Loss Model Reserves under CECL Model Impact of CECL Adoption Financial Assets: Commercial real estate $ 15,477 $ 18,163 $ 2,686 Owner-occupied commercial real estate 635 629 (6) Acquisition, construction & development 2,082 1,442 (640) Commercial & industrial 438 675 237 Single family residential (1-4 units) 2,379 4,040 1,661 Consumer non-real estate and other 28 215 187 Unallocated reserve — — — Allowance for credit losses on loans $ 21,039 $ 25,164 $ 4,125 Financial Liabilities: Allowance for credit losses on off-balance sheet credit exposure $ — $ 275 $ 275 The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities. The Company did not record an ACL for securities upon adoption. The Company elected not to measure an ACL for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on non-accrual status, which generally occurs when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectible interest. On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures . ASU 2022-02 addresses areas identified by the FASB as part of its implementation review of the credit losses standard (ASU 2016-13) that introduced the CECL model. The amendments eliminate the accounting guidance for troubled debt restructurings (“TDRs”) by creditors that have adopted the CECL model and enhance the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, the amendments require that the Company disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The Company adopted the standard prospectively, and it did not have a material impact on the financial statements. Allowance for credit losses - available-for-sale debt securities Management evaluates all available-for-sale (“AFS”) debt securities in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. The Company first assesses whether it intends to sell or if it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists, and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as credit loss expense (or recapture). Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. At June 30, 2023, there was no ACL related to the AFS security portfolio. Refer to Note 2 - Securities in Notes to the Consolidated Financial Statements. Allowance for credit losses - loans The ACL represents an amount, which, in management’s judgment, reflects expected credit losses in the loan portfolio at the balance sheet date. The estimate for expected credit losses is based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions, and prepayment experience as related to credit contractual term information. The ACL is measured and recorded upon the initial recognition of a financial asset. The ACL is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision for (or recapture of) credit losses, which is recorded in the Consolidated Statements of Income. The ACL for expected credit losses is determined based on a quantitative assessment of two categories of loans: collectively evaluated loans and individually evaluated loans. In addition, the ACL also includes a qualitative component which adjusts the CECL model for risk factors that are not considered within the CECL model, but are relevant in assessing the expected credit losses within the loan portfolio. The Company is using a remaining useful life or weighted average remaining maturity (“WARM”) methodology to estimate its current expected credit losses. For purposes of calculating reserves in collectively evaluated loans, the ACL calculation segments the Company’s loan portfolio using federal call codes to group loans which share similar risk characteristics. In order to generate reasonable and supportable forecasts of loss rates over a two-year period, the ACL calculation utilizes macroeconomic variable loss drivers, which may include aggregate macroeconomic indicators pertaining to such items as equity market conditions or interest rates, as well as other variables that are portfolio-specific, such as those that pertain to the commercial real estate or residential loan portfolios. A straight-line reversion technique is used for the following four quarters, and in following quarters, the ACL calculation reverts to historical average loss rates. Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond information used to calculate reasonable and supportable, reversion and post-reversion period forecasts on collectively evaluated loans. As the reasonable and supportable and reversion period forecasts reflect the use of the macroeconomic variable loss drivers, management may consider that an additional or reduced reserve is warranted through qualitative risk factors based on current and expected conditions, including those that utilize supplemental information relative to the macroeconomic variable loss drivers. Many of these qualitative risk factors considered by management are comparable to legacy factors prior to the adoption of CECL and include the following: • Nature and volume of loans; • Concentrations of credit; • Delinquency trends; • Experience, ability, and depth of management and lending staff; and • Quality of loan review system. Loans that do not share similar risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans collectively evaluated. A specific reserve analysis is applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the expected future cash flows. A specific reserve may be assigned if the measured value of the loan using one of the before mentioned methods is less than the current carrying value of the loan. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient to measure the ACL based on the fair value of the collateral. A loan is considered collateral-dependent when the Company determines foreclosure is probable or the borrower is experiencing financial difficulty and the Company expects repayment to be provided substantially through the operation or sale of the collateral. Collateral could be in the form of real estate, equipment, or business assets. An ACL may result for a collateral-dependent loan if the fair value of the underlying collateral, as of the reporting date, adjusted for expected costs to repair or sell, was less than the amortized cost basis of the loan. If repayment of the loan is instead dependent only on the operation, rather than the sale of the collateral, the measure of the ACL does not incorporate estimated costs to sell. For loans analyzed on the basis of projected future principal and interest cash flows, the Company will discount the expected cash flows at the effective interest rate of the loan, and an ACL would result if the present value of the expected cash flows was less than the amortized cost basis of the loan. When the discounted cash flow method is used to determine the ACL, management does not adjust the effective interest rate used to discount cash flows to incorporate expected prepayments. Allowance for credit losses on off-balance sheet credit exposures On a quarterly basis, the Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on off-balance sheet credit exposures is adjusted through the provision for credit losses on the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life by loan segment at each balance sheet date under the CECL model using the same methodology as the loan portfolio. The ACL for unfunded commitments is included in accrued interest and other liabilities on the Company’s Consolidated Balance Sheets. Accrued Interest Receivable The Company has elected to exclude accrued interest from the amortized cost basis in its determination of the ACL and elected the policy to write-off accrued interest receivable directly through the reversal of interest income. Accrued interest receivable totaled $7.7 million on loans and totaled $7.4 million on AFS securities at June 30, 2023, and is included in accrued interest receivable on the Company’s Consolidated Balance Sheets.	Nature of Business Activities and Significant Accounting Policies Nature of operations and principles of consolidation The consolidated financial statements include Burke & Herbert Financial Services Corp. and its wholly owned subsidiary Burke & Herbert Bank & Trust Company (“the Bank”), together referred to as “the Company.” Intercompany transactions and balances are eliminated in consolidation. Burke & Herbert Financial Services Corp. was organized as a Virginia corporation in 2022 to serve as the holding company for Burke & Herbert Bank & Trust Company. The Company commenced operations as a bank holding company on October 1, 2022 following a reorganization transaction in which it became the Bank’s holding company. This transaction was treated as an internal reorganization as all shareholders of the Bank became shareholders of the Company. As a bank holding company, the Company is subject to regulation and supervision by the Federal Reserve. The Company has no material operations and owns 100% of the Bank. The Bank’s primary market area includes northern Virginia and it has over 20 branches throughout the Northern Virginia region and commercial loan offices in Fredericksburg, Loudoun County, and Richmond, Virginia, and in Bethesda, Maryland. The Company’s branch locations accept business and consumer deposits from a diverse customer base. The Company’s deposit products include checking, savings, and term certificate accounts. The Company’s loan portfolio includes commercial and consumer loans, a substantial portion of which are secured by real estate. A summary of the Company’s significant accounting policies follows: Subsequent events The Company has evaluated subsequent events for recognition and disclosure through February 24, 2023, which is the date the financial statements were available to be issued. Use of estimates To prepare financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”), management makes estimates and assumptions based on available information that affects the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash, cash equivalents and cash flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand and amounts due from banks, including cash items in process of clearing with maturities fewer than 90 days. Cash flows from loans, federal funds purchased and sold, securities sold under agreements to repurchase and deposits are reported on a net basis. Restriction on cash No reserve balances were required at December 31, 2022 and December 31, 2021. There was no reserve requirement with the Federal Reserve as of December 31, 2022 or December 31, 2021. Debt & equity securities Management determines the appropriate classification of debt securities at the time of purchase. Debt securities that the Company has both the positive intent and ability to hold to maturity are classified as held to maturity and are reported at cost, adjusted for amortization of premiums and accretion of discounts. Debt securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity, are classified as available-for-sale and are reported at fair value. Unrealized gains and losses on investments classified as available-for-sale have been accounted for as a separate component of accumulated other comprehensive income or loss, net of the related deferred tax effect. Amortization of premiums and accretion of discounts are recognized in interest income over the terms of the securities. Any decision to sell a security classified as available-for-sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Management evaluates debt securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For debt securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a debt security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized costs and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the statements of income and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Equity securities are carried at fair value with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical, or a similar, investment. Due to the nature of, and restrictions placed upon, certain equity securities that have been classified as restricted stock and are carried at cost. These equity securities are not subject to the classifications above. Loans held for sale Loans held for sale are those loans the Company has the intent to sell in the foreseeable future. The Company has elected to use the fair value accounting option (“FVO”) for loans held for sale. Gains and losses on sales of loans are recognized at settlement dates and are determined by the difference between the sales proceeds and the fair value of the loans. All sales are made without recourse and are sold with servicing released. Loan commitments and related financial instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Mortgage banking The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (interest rate lock commitments). Interest rate lock commitments on mortgage loans to be held for sale are accounted for as free standing derivatives. The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 15 to 90 days. The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Company is not exposed to significant losses nor will it realize significant gains related to rate lock commitments due to changes in interest rates. The Company has elected to use the FVO for best effort forward sales commitments. Derivatives At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to the likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in current earnings as respective fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives not designated or that do not qualify for hedge accounting are reported currently in earnings as non-interest income. Accrued settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense based on the item being hedged. Accrued settlements on derivatives not designated or that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still probable of occurring, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. Loans The Company loan portfolio segments include (i) commercial real estate, (ii) single family residential (1-4 units), (iii) owner-occupied commercial real estate, (iv) acquisition, construction and development, (v) commercial & industrial, and (vi) consumer non-real estate and other. Risk factors evaluated include the economic environment’s impact on each portfolio segment and the following specific risk factors: • Commercial real estate loans carry risk associated with either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. Other risk factors include the credit-worthiness of the sponsor and the value of the collateral. • Single family residential (1-4 units) loans for consumer purposes carry risk associated with the continued credit-worthiness of the borrower and the value of the collateral. Single family residential (1-4 units) loans for investment purposes carry risk associated with the continued credit-worthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. • Owner-occupied commercial real estate loans carry risk associated with the operations of the business that occupies the property and the value of the collateral. • Acquisition, construction and development loans carry risk associated with the credit-worthiness of the borrower, project completion within budget, sale after completion, and the value of the collateral. • Commercial & industrial loans carry risk associated with the operations of the business and the value of the collateral, if any. • Consumer non-real estate and other loans carry risk associated with the credit-worthiness of the borrower and the value of the collateral, if any. The Company’s recorded investments in loans that management has the intent and ability to hold for the foreseeable future, until maturity or until pay-off, generally are reported at their outstanding unpaid principal balances, adjusted for partial charge-offs, the allowance for loan losses, and any deferred fees and costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees and costs are deferred and recognized as an adjustment of the related loan yield using the interest method without anticipating prepayments. For all portfolio segments, the accrual of interest is discontinued at the time a loan becomes 90 days delinquent, unless the credit is well-secured and in process of collection. Loans also are placed on nonaccrual if collection of principal or interest is considered impaired. All interest accrued, but not received, for loans placed on non-accrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. For all portfolio segments, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and a history of on-time payments has again been established. Concentrations of credit Substantially all of the Company’s loans, commitments, and standby letters of credit have been granted to customers in the Company’s market area. Such customers are general depositors of the Company. Some investments in state and municipal securities also involve governmental entities within the Company’s market area. The distribution of commitments to extend credit approximates the distribution of loans outstanding. Standby letters of credit are granted primarily to commercial borrowers. Troubled debt restructuring (“TDR”) Loans are classified as a TDR, if a concession was granted in connection with the modification, for legal or economic reasons, related to the debtor’s financial difficulties. Management strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of collateral. In cases where borrowers are granted new terms that provided for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for any impaired loans. Troubled debt restructurings are individually evaluated for impairment and included in the separately identified impairment disclosures. TDRs are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For TDRs that subsequently default, the Company determines the amount of the allowance on that loan in accordance with the accounting policy for the allowance for loan losses on loans individually identified as impaired. The Company incorporates recent historical experience related to TDRs, including the performance of TDRs that subsequently default, into the calculation of the allowance by loan portfolio segment. The Company is monitoring COVID-19 related modifications. If loans within this population require subsequent modifications, including payment extensions beyond six months, the Company will consider the borrower’s financial status at the time of the request and the effect of all modifications, past and requested, on the loan. If the borrower is deemed to be in financial difficulty that is not short-term and the impact of all modifications is considered to amount to a concession under U.S. GAAP, the loan will be designated a TDR. The Company is also monitoring the COVID-19 related modification population to determine whether other credit-related action should be taken, possibly including downgrading credit risk ratings, designating as nonaccrual, or determining a charge-off. Allowance for loan losses The allowance for loan losses is established to absorb probable losses inherent in outstanding loans through a provision for loan losses charged to earnings. Credit losses are charged against the allowance. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a quarterly basis by management and is based upon (i) past loan loss experience for each portfolio segment as adjusted by environmental factors plus a risk adjustment based on the risk rating of the loan, and (ii) a loan by loan analysis of all other loans which are rated as either in a nonaccrual status or classified as troubled debt restructuring. Loan ratings include: • Pass-rated loans include all loans which are considered to be either high quality, good quality or acceptable quality. Borrowers have an acceptable financial condition with demonstrated repayment ability. • Special mention loans have potential developing weaknesses that deserve extra attention. If the developing weakness is not corrected or mitigated, there may be deterioration in the ability of the borrower to repay. • Substandard is a regulatory classification. Loans rated substandard are considered to have well-defined weakness and there is a possibility that some future loss will be sustained if such weakness is not corrected. • Doubtful is a regulatory classification. Loans rated doubtful have all of the weaknesses inherent in those rated substandard, with the added characteristic that the severity of the weaknesses makes collection or liquidation in full highly questionable. The probability of some loss is high. • Loss represents a classification for loans which are considered uncollectible and are in the process of being charged off. Historical credit losses for each portfolio segment are adjusted by environmental factors which include (i) changes in lending policies and procedures, including underwriting standards, and collection, charge-off, and recovery practices; (ii) changes in national and local economic and business conditions, including the conditions of various market segments; (iii) changes in the nature and volume of the portfolio; (iv) changes in the experience, ability, and depth of lending management and staff; (v) changes in the volume and severity of past due and classified loans and the volume of nonaccruals, troubled debt restructurings, and other loan modifications; (vi) changes in the quality of the Company’s loan review system and the degree of oversight by the Company’s Board; (vii) the existence and effect of any concentrations of credit and changes in the level of such concentrations; and (viii) the effect of external factors, such as competition and legal and regulatory requirements, on the level of estimated credit losses in the Company’s current portfolio. This evaluation is inherently subjective since it requires estimates that are susceptible to significant revision as additional information becomes available or as economic conditions change. Impaired, collateral dependent loans may be charged down to the net realizable value of the collateral. Alternatively, a specific allowance may be established when the discounted cash flows (or collateral value of observable market price) of the impaired loan are less than the carrying value of that loan. For all portfolio segments, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. For all portfolio segments, a loan is charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Premises and equipment Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives up to 40 years. Furniture, fixtures and equipment are depreciated using the straight-line method (or accelerated) method with useful lives ranging from 3 to 10 years. Maintenance and repairs are charged to expense as incurred and major improvements are capitalized. Company-owned life insurance The Company has purchased life insurance policies on certain employees. Company-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Transfers of financial assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Other real estate owned (OREO) Assets acquired through foreclosure or other proceedings are initially recorded at fair value at the date of foreclosure less estimated costs of disposal, which establishes a new cost. After foreclosure, valuations periodically are performed by management and the foreclosed assets held for sale are carried at the lower of cost or fair value less estimated costs of disposal. Any write-down to fair value at the time of transfer to foreclosed assets is charged to the allowance for loan losses. All subsequent gains on sale, losses on sale, and additional write-downs are included in net gains/(losses) on other real estate owned. Revenue and expenses from the operations of foreclosed assets are included in other non-interest income and other operating expenses. Income taxes The Company accounts for income taxes in accordance with income tax accounting guidance. The Company has adopted the accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes interest and penalties on income taxes as a component of income tax expense. Employee benefits The Company has a noncontributory defined benefit pension plan that was frozen to new participants on June 1, 2005. The Company also has a defined contribution plan (The Investment and Savings Plan) with a salary deferral provision, which covers all employees in the month following their date of hire if they have reached the age of 18. The Company’s funding policy for the defined benefit plan is to make annual contributions to the Plan in amounts that are determined based on actuarial valuations and recommendations and which meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974. Authoritative accounting literature requires an employer to recognize the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its balance sheet and to recognize changes in the funded status in the year in which the changes occur through comprehensive income. The funded status of a benefit plan will be measured as the difference between plan assets at fair value and the benefit obligation. For a pension plan, the benefit obligation is the projected benefit obligation. For any other postretirement plan, the benefit obligation is the accumulated postretirement benefit obligation. Authoritative accounting literature also requires an employer to measure the funded status of a plan as of the date of its year-end balance sheet. The guidance also requires additional disclosure in the notes to financial statements about certain effects on net periodic benefit cost for the next fiscal year that arise from delayed recognition of the gains or losses, prior service costs or credits, and transition asset or obligation. Per share data The Company’s capital structure includes a stock-based compensation plan, which may be dilutive to earnings per share (“EPS”). Basic EPS is calculated by dividing net income by the weighted average number of shares outstanding during the year. Diluted EPS is calculated by assuming dilution of common shares and adjusting net income for compensation cost attributable to the stock-based compensation plan. Trust assets and fees Assets of the trust department, other than trust cash on deposit at the Company, are not included in these financial statements because they are not assets of the Company. Trust fees are recognized in income using the accrual method. Loss contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements. Comprehensive income (loss) Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available-for-sale, unrealized gains and losses on cash flow hedges, and changes in the funded status of the pension plan, which are also recognized as separate components of equity. Leases Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. Fair value of financial instruments Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. Stock-based compensation Compensation cost is recognized for equity awards issued to employees and directors, based on the fair value of these awards at the date of grant using an observable market price. The Company classifies stock awards as equity. Compensation cost is recognized over the required service period on a straight-line basis. The Company’s accounting policy is to recognize forfeitures as they occur. Segment reporting The Company operates in one segment – Community Banking and the financial performance of this one segment is used to make resource allocations and performance decisions. While the chief decision-maker monitors the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Individual operating results are not reviewed by senior management to make resource allocation or performance decisions. Therefore, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. Reclassifications Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholder’s equity. Recent Accounting Pronouncements The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13: Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments to replace the incurred loss model for loans and other financial assets with an expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in certain leases recognized by a lessor. In addition, the amendments in Topic 326 require credit losses on available-for-sale to be presented as a valuation allowance rather than as a direct write-down (e.g. OTTI). The FASB has issued multiple updates to ASU 2016-13 as codified in Topic 326, including ASUs 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. These ASUs have provided for various minor tec

Nature of Business Activities_2

Nature of Business Activities and Significant Accounting Policies	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Nature of Business Activities and Significant Accounting Policies	Nature of Business Activities and Significant Accounting Policies Nature of operations Burke & Herbert Financial Services Corp. was organized as a Virginia corporation on September 14, 2022, to serve as the holding company for Burke & Herbert Bank & Trust Company (“the Bank”), together referred to as the “Company”. The Company commenced operations as a bank holding company on October 1, 2022, following a reorganization transaction in which it became the Bank’s holding company. This transaction was treated as an internal reorganization as all shareholders of the Bank became shareholders of the Company. As a bank holding company, the Company is subject to regulation and supervision by the Federal Reserve. The Company has no material operations and owns 100% of the Bank. The Bank is a Virginia chartered commercial bank that commenced operations in 1852. The Bank is supervised and regulated by the Federal Deposit Insurance Corporation (the “FDIC”) and the Bureau of Financial Institutions of the Virginia State Corporation Commission (the “Virginia BFI”). The Bank’s primary market area includes northern Virginia, and it has over 20 branches throughout the Northern Virginia region and commercial loan offices in Fredericksburg, Loudoun County, and Richmond, Virginia, and in Bethesda, Maryland. The Company’s branch locations accept business and consumer deposits from a diverse customer base. The Company’s deposit products include checking, savings, and term certificate accounts. The Company’s loan portfolio includes commercial and consumer loans, a substantial portion of which are secured by real estate. Basis of Presentation The accompanying consolidated financial statements include Burke & Herbert Financial Services Corp. and its wholly owned subsidiary Burke & Herbert Bank & Trust Company and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and with applicable quarterly reporting regulations of the U.S. Securities and Exchange Commission (“SEC”). The accounting and reporting policies of the Company conform to GAAP and reflect practices of the banking industry. They do not include all of the information and notes required by GAAP for complete financial statements. As such, these unaudited financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ending December 31, 2022, included in the Company’s Registration Statement on Form 10 filed with the SEC on February 28, 2023, as amended on April 4, 2023, April 20, 2023, and April 21, 2023, and as declared as effective by the SEC on April 21, 2023. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions between the Company and the Bank have been eliminated. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made. The results of operations for the three months ended March 31, 2023, are not necessarily indicative of the results to be expected for any other interim period or for the full year. All amounts and disclosures included in this quarterly report as of December 31, 2022, were derived from the Company’s audited consolidated financial statements. Certain items in the prior period have been reclassified to conform to the current presentation. These reclassifications had no effect on prior year net income or on shareholders’ equity. Adoption of new accounting standards Derivatives and Hedging On March 28, 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method . The purpose of this updated guidance is to further align risk management objectives with hedge accounting results on the application of the last-of-layer method, which was first introduced in ASU 2017-02, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2022-01 is effective for public business entities for fiscal years beginning after December 15, 2022. ASU 2022-01 requires a modified retrospective transition method for basis adjustments in which the entity will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company adopted this ASU on January 1, 2023, on a prospective basis; therefore, there was no impact to the consolidated financial statements. Allowance for Credit Losses On January 1, 2023, the Company adopted ASU 2016-13 : Measurement of Credit Losses on Financial Instruments ( “ASC 326” ) , as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The CECL methodology requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, as well as future forecasts including reasonable and supportable forecasts and other forecast periods. CECL generally applies to financial assets measured at amortized cost and some off-balance sheet credit exposures, such as unfunded commitments to extend credit. Financial assets measured at amortized cost are presented as the net amount expected to be collected. In addition, CECL made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell. The Company adopted ASC 326 and all related subsequent amendments thereto effective January 1, 2023, using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the new CECL standard resulted in a cumulative-effect adjustment that increased the allowance for credit losses for loans by $4.1 million and increased the allowance for unfunded commitments by $274.8 thousand. Retained earnings, net of deferred taxes, decreased by $3.4 million. Results for reporting periods beginning after January 1, 2023, are presented under ASU 2016-13, while prior period amounts continue to be reported in accordance with the incurred loss model under the previously applicable GAAP. The following table illustrates the impact of the adoption of CECL, and the transition away from the incurred loss method, on January 1, 2023. The impact to the allowance for credit losses (“ACL”) is presented at the loan segment level (in thousands): January 1, 2023 Reserves under Incurred Loss Model Reserves under CECL Model Impact of CECL Adoption Financial Assets: Commercial real estate $ 15,477 $ 18,163 $ 2,686 Owner-occupied commercial real estate 635 629 (6) Acquisition, construction & development 2,082 1,442 (640) Commercial & industrial 438 675 237 Single family residential (1-4 units) 2,379 4,040 1,661 Consumer non-real estate and other 28 215 187 Unallocated reserve — — — Allowance for credit losses on loans $ 21,039 $ 25,164 $ 4,125 Financial Liabilities: Allowance for credit losses on off-balance sheet credit exposure $ — $ 275 $ 275 The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities. The Company did not record an ACL for securities upon adoption. The Company elected not to measure an ACL for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on non-accrual status, which is generally when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectible interest. On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures . ASU 2022-02 addresses areas identified by the FASB as part of its implementation review of the credit losses standard (ASU 2016-13) that introduced the CECL model. The amendments eliminate the accounting guidance for troubled debt restructurings (“TDRs”) by creditors that have adopted the CECL model and enhance the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, the amendments require that the Company disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The Company adopted the standard prospectively, and it did not have a material impact on the financial statements. Allowance for credit losses - available-for-sale debt securities Management evaluates all available-for-sale (“AFS”) debt securities in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. The Company first assesses whether it intends to sell or if it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists, and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as credit loss expense (or recapture). Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. At March 31, 2023, there was no ACL related to the AFS security portfolio. Refer to Note 2 - Securities in Notes to the Consolidated Financial Statements. Allowance for credit losses - loans The ACL represents an amount, which, in management’s judgment, reflects expected credit losses in the loan portfolio at the balance sheet date. The estimate for expected credit losses is based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions, and prepayment experience as related to credit contractual term information. The ACL is measured and recorded upon the initial recognition of a financial asset. The ACL is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision for (or recapture of) credit losses, which is recorded in the Consolidated Statements of Income. The ACL for expected credit losses is determined based on a quantitative assessment of two categories of loans: collectively evaluated loans and individually evaluated loans. In addition, the ACL also includes a qualitative component which adjusts the CECL model for risk factors that are not considered within the CECL model, but are relevant in assessing the expected credit losses within the loan portfolio. The Company is using a remaining useful life or weighted average remaining maturity (“WARM”) methodology to estimate its current expected credit losses. For purposes of calculating reserves in collectively evaluated loans, ACL calculation segments the Company’s loan portfolio using federal call codes to group loans which share similar risk characteristics. In order to generate reasonable and supportable forecasts of loss rates over a two-year period, the ACL calculation utilizes macroeconomic variable loss drivers, which may include aggregate macroeconomic indicators pertaining to such items as equity market conditions or interest rates, as well as other variables that are portfolio-specific, such as those that pertain to the commercial real estate or residential loan portfolios. A straight-line reversion technique is used for the following four quarters, and in following quarters, the ACL calculation reverts to historical average loss rates. Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond information used to calculate reasonable and supportable, reversion and post-reversion period forecasts on collectively evaluated loans. As the reasonable and supportable and reversion period forecasts reflect the use of the macroeconomic variable loss drivers, management may consider that an additional or reduced reserve is warranted through qualitative risk factors based on current and expected conditions, including those that utilize supplemental information relative to the macroeconomic variable loss drivers. Many of these qualitative risk factors considered by management are comparable to legacy factors prior to the adoption of CECL and include the following: • Nature and volume of loans; • Concentrations of credit; • Delinquency trends; • Experience, ability, and depth of management and lending staff; and • Quality of loan review system. Loans that do not share similar risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans collectively evaluated. A specific reserve analysis is applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the expected future cash flows. A specific reserve may be assigned if the measured value of the loan using one of the before mentioned methods is less than the current carrying value of the loan. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient to measure the ACL based on the fair value of the collateral. A loan is considered collateral-dependent when the Company determines foreclosure is probable or the borrower is experiencing financial difficulty and the Company expects repayment to be provided substantially through the operation or sale of the collateral. Collateral could be in the form of real estate, equipment, or business assets. An ACL may result for a collateral-dependent loan if the fair value of the underlying collateral, as of the reporting date, adjusted for expected costs to repair or sell, was less than the amortized cost basis of the loan. If repayment of the loan is instead dependent only on the operation, rather than the sale of the collateral, the measure of the ACL does not incorporate estimated costs to sell. For loans analyzed on the basis of projected future principal and interest cash flows, the Company will discount the expected cash flows at the effective interest rate of the loan, and an ACL would result if the present value of the expected cash flows was less than the amortized cost basis of the loan. When the discounted cash flow method is used to determine the ACL, management does not adjust the effective interest rate used to discount cash flows to incorporate expected prepayments. Allowance for credit losses on off-balance sheet credit exposures On a quarterly basis, the Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on off-balance sheet credit exposures is adjusted through the provision for credit losses on the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life by loan segment at each balance sheet date under the CECL model using the same methodology as the loan portfolio. The ACL for unfunded commitments is included in accrued interest and other liabilities on the Company’s Consolidated Balance Sheets. Accrued Interest Receivable The Company has elected to exclude accrued interest from the amortized cost basis in its determination of the ACL and elected the policy to write-off accrued interest receivable directly through the reversal of interest income. Accrued interest receivable totaled $7.5 million on loans and totaled $7.9 million on AFS securities at March 31, 2023 , and is included in accrued interest receivable on the Company’s Consolidated Balance Sheets.	Nature of Business Activities and Significant Accounting Policies Nature of operations Burke & Herbert Financial Services Corp. was organized as a Virginia corporation on September 14, 2022, to serve as the holding company for Burke & Herbert Bank & Trust Company (“the Bank”), together referred to as the “Company”. The Company commenced operations as a bank holding company on October 1, 2022, following a reorganization transaction in which it became the Bank’s holding company. This transaction was treated as an internal reorganization as all shareholders of the Bank became shareholders of the Company. As a bank holding company, the Company is subject to regulation and supervision by the Federal Reserve. The Company has no material operations and owns 100% of the Bank. The Bank is a Virginia chartered commercial bank that commenced operations in 1852. The Bank is supervised and regulated by the Federal Deposit Insurance Corporation (the “FDIC”) and the Bureau of Financial Institutions of the Virginia State Corporation Commission (the “Virginia BFI”). The Bank’s primary market area includes northern Virginia, and it has over 20 branches throughout the Northern Virginia region and commercial loan offices in Fredericksburg, Loudoun County, and Richmond, Virginia, and in Bethesda, Maryland. The Company’s branch locations accept business and consumer deposits from a diverse customer base. The Company’s deposit products include checking, savings, and term certificate accounts. The Company’s loan portfolio includes commercial and consumer loans, a substantial portion of which are secured by real estate. Basis of Presentation The accompanying consolidated financial statements include Burke & Herbert Financial Services Corp. and its wholly owned subsidiary Burke & Herbert Bank & Trust Company and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and with applicable quarterly reporting regulations of the U.S. Securities and Exchange Commission (“SEC”). The accounting and reporting policies of the Company conform to GAAP and reflect practices of the banking industry. They do not include all of the information and notes required by GAAP for complete financial statements. As such, these unaudited financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ending December 31, 2022, included in the Company’s Registration Statement on Form 10 filed with the SEC on February 28, 2023, as amended on April 4, 2023, April 20, 2023, and April 21, 2023, and as declared as effective by the SEC on April 21, 2023. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions between the Company and the Bank have been eliminated. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made. The results of operations for the three and six months ended June 30, 2023, are not necessarily indicative of the results to be expected for any other interim period or for the full year. All amounts and disclosures included in this quarterly report as of December 31, 2022, were derived from the Company’s audited consolidated financial statements. Certain items in the prior period have been reclassified to conform to the current presentation. These reclassifications had no effect on prior year net income or on shareholders’ equity. Adoption of new accounting standards Derivatives and Hedging On March 28, 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method . The purpose of this updated guidance is to further align risk management objectives with hedge accounting results on the application of the last-of-layer method, which was first introduced in ASU 2017-02, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2022-01 is effective for public business entities for fiscal years beginning after December 15, 2022. ASU 2022-01 requires a modified retrospective transition method for basis adjustments in which the entity will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company adopted this ASU on January 1, 2023; therefore, there was no impact to the consolidated financial statements. Allowance for Credit Losses On January 1, 2023, the Company adopted ASU 2016-13 : Measurement of Credit Losses on Financial Instruments (“ASC 326”), as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The CECL methodology requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, as well as future forecasts including reasonable and supportable forecasts and other forecast periods. CECL generally applies to financial assets measured at amortized cost and some off-balance sheet credit exposures, such as unfunded commitments to extend credit. Financial assets measured at amortized cost are presented as the net amount expected to be collected. In addition, CECL made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell. The Company adopted ASC 326 and all related subsequent amendments thereto effective January 1, 2023, using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the new CECL standard resulted in a cumulative-effect adjustment that increased the allowance for credit losses for loans by $4.1 million and increased the allowance for unfunded commitments by $274.8 thousand. Retained earnings, net of deferred taxes, decreased by $3.4 million. Results for reporting periods beginning after January 1, 2023, are presented under ASU 2016-13, while prior period amounts continue to be reported in accordance with the incurred loss model under the previously applicable GAAP. The following table illustrates the impact of the adoption of CECL, and the transition away from the incurred loss method, on January 1, 2023. The impact to the allowance for credit losses (“ACL”) is presented at the loan segment level (in thousands): January 1, 2023 Reserves under Incurred Loss Model Reserves under CECL Model Impact of CECL Adoption Financial Assets: Commercial real estate $ 15,477 $ 18,163 $ 2,686 Owner-occupied commercial real estate 635 629 (6) Acquisition, construction & development 2,082 1,442 (640) Commercial & industrial 438 675 237 Single family residential (1-4 units) 2,379 4,040 1,661 Consumer non-real estate and other 28 215 187 Unallocated reserve — — — Allowance for credit losses on loans $ 21,039 $ 25,164 $ 4,125 Financial Liabilities: Allowance for credit losses on off-balance sheet credit exposure $ — $ 275 $ 275 The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities. The Company did not record an ACL for securities upon adoption. The Company elected not to measure an ACL for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on non-accrual status, which generally occurs when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectible interest. On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures . ASU 2022-02 addresses areas identified by the FASB as part of its implementation review of the credit losses standard (ASU 2016-13) that introduced the CECL model. The amendments eliminate the accounting guidance for troubled debt restructurings (“TDRs”) by creditors that have adopted the CECL model and enhance the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, the amendments require that the Company disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The Company adopted the standard prospectively, and it did not have a material impact on the financial statements. Allowance for credit losses - available-for-sale debt securities Management evaluates all available-for-sale (“AFS”) debt securities in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. The Company first assesses whether it intends to sell or if it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists, and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as credit loss expense (or recapture). Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. At June 30, 2023, there was no ACL related to the AFS security portfolio. Refer to Note 2 - Securities in Notes to the Consolidated Financial Statements. Allowance for credit losses - loans The ACL represents an amount, which, in management’s judgment, reflects expected credit losses in the loan portfolio at the balance sheet date. The estimate for expected credit losses is based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions, and prepayment experience as related to credit contractual term information. The ACL is measured and recorded upon the initial recognition of a financial asset. The ACL is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision for (or recapture of) credit losses, which is recorded in the Consolidated Statements of Income. The ACL for expected credit losses is determined based on a quantitative assessment of two categories of loans: collectively evaluated loans and individually evaluated loans. In addition, the ACL also includes a qualitative component which adjusts the CECL model for risk factors that are not considered within the CECL model, but are relevant in assessing the expected credit losses within the loan portfolio. The Company is using a remaining useful life or weighted average remaining maturity (“WARM”) methodology to estimate its current expected credit losses. For purposes of calculating reserves in collectively evaluated loans, the ACL calculation segments the Company’s loan portfolio using federal call codes to group loans which share similar risk characteristics. In order to generate reasonable and supportable forecasts of loss rates over a two-year period, the ACL calculation utilizes macroeconomic variable loss drivers, which may include aggregate macroeconomic indicators pertaining to such items as equity market conditions or interest rates, as well as other variables that are portfolio-specific, such as those that pertain to the commercial real estate or residential loan portfolios. A straight-line reversion technique is used for the following four quarters, and in following quarters, the ACL calculation reverts to historical average loss rates. Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond information used to calculate reasonable and supportable, reversion and post-reversion period forecasts on collectively evaluated loans. As the reasonable and supportable and reversion period forecasts reflect the use of the macroeconomic variable loss drivers, management may consider that an additional or reduced reserve is warranted through qualitative risk factors based on current and expected conditions, including those that utilize supplemental information relative to the macroeconomic variable loss drivers. Many of these qualitative risk factors considered by management are comparable to legacy factors prior to the adoption of CECL and include the following: • Nature and volume of loans; • Concentrations of credit; • Delinquency trends; • Experience, ability, and depth of management and lending staff; and • Quality of loan review system. Loans that do not share similar risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans collectively evaluated. A specific reserve analysis is applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the expected future cash flows. A specific reserve may be assigned if the measured value of the loan using one of the before mentioned methods is less than the current carrying value of the loan. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient to measure the ACL based on the fair value of the collateral. A loan is considered collateral-dependent when the Company determines foreclosure is probable or the borrower is experiencing financial difficulty and the Company expects repayment to be provided substantially through the operation or sale of the collateral. Collateral could be in the form of real estate, equipment, or business assets. An ACL may result for a collateral-dependent loan if the fair value of the underlying collateral, as of the reporting date, adjusted for expected costs to repair or sell, was less than the amortized cost basis of the loan. If repayment of the loan is instead dependent only on the operation, rather than the sale of the collateral, the measure of the ACL does not incorporate estimated costs to sell. For loans analyzed on the basis of projected future principal and interest cash flows, the Company will discount the expected cash flows at the effective interest rate of the loan, and an ACL would result if the present value of the expected cash flows was less than the amortized cost basis of the loan. When the discounted cash flow method is used to determine the ACL, management does not adjust the effective interest rate used to discount cash flows to incorporate expected prepayments. Allowance for credit losses on off-balance sheet credit exposures On a quarterly basis, the Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on off-balance sheet credit exposures is adjusted through the provision for credit losses on the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life by loan segment at each balance sheet date under the CECL model using the same methodology as the loan portfolio. The ACL for unfunded commitments is included in accrued interest and other liabilities on the Company’s Consolidated Balance Sheets. Accrued Interest Receivable The Company has elected to exclude accrued interest from the amortized cost basis in its determination of the ACL and elected the policy to write-off accrued interest receivable directly through the reversal of interest income. Accrued interest receivable totaled $7.7 million on loans and totaled $7.4 million on AFS securities at June 30, 2023, and is included in accrued interest receivable on the Company’s Consolidated Balance Sheets.	Nature of Business Activities and Significant Accounting Policies Nature of operations and principles of consolidation The consolidated financial statements include Burke & Herbert Financial Services Corp. and its wholly owned subsidiary Burke & Herbert Bank & Trust Company (“the Bank”), together referred to as “the Company.” Intercompany transactions and balances are eliminated in consolidation. Burke & Herbert Financial Services Corp. was organized as a Virginia corporation in 2022 to serve as the holding company for Burke & Herbert Bank & Trust Company. The Company commenced operations as a bank holding company on October 1, 2022 following a reorganization transaction in which it became the Bank’s holding company. This transaction was treated as an internal reorganization as all shareholders of the Bank became shareholders of the Company. As a bank holding company, the Company is subject to regulation and supervision by the Federal Reserve. The Company has no material operations and owns 100% of the Bank. The Bank’s primary market area includes northern Virginia and it has over 20 branches throughout the Northern Virginia region and commercial loan offices in Fredericksburg, Loudoun County, and Richmond, Virginia, and in Bethesda, Maryland. The Company’s branch locations accept business and consumer deposits from a diverse customer base. The Company’s deposit products include checking, savings, and term certificate accounts. The Company’s loan portfolio includes commercial and consumer loans, a substantial portion of which are secured by real estate. A summary of the Company’s significant accounting policies follows: Subsequent events The Company has evaluated subsequent events for recognition and disclosure through February 24, 2023, which is the date the financial statements were available to be issued. Use of estimates To prepare financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”), management makes estimates and assumptions based on available information that affects the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash, cash equivalents and cash flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand and amounts due from banks, including cash items in process of clearing with maturities fewer than 90 days. Cash flows from loans, federal funds purchased and sold, securities sold under agreements to repurchase and deposits are reported on a net basis. Restriction on cash No reserve balances were required at December 31, 2022 and December 31, 2021. There was no reserve requirement with the Federal Reserve as of December 31, 2022 or December 31, 2021. Debt & equity securities Management determines the appropriate classification of debt securities at the time of purchase. Debt securities that the Company has both the positive intent and ability to hold to maturity are classified as held to maturity and are reported at cost, adjusted for amortization of premiums and accretion of discounts. Debt securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity, are classified as available-for-sale and are reported at fair value. Unrealized gains and losses on investments classified as available-for-sale have been accounted for as a separate component of accumulated other comprehensive income or loss, net of the related deferred tax effect. Amortization of premiums and accretion of discounts are recognized in interest income over the terms of the securities. Any decision to sell a security classified as available-for-sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Management evaluates debt securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For debt securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a debt security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized costs and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the statements of income and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Equity securities are carried at fair value with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical, or a similar, investment. Due to the nature of, and restrictions placed upon, certain equity securities that have been classified as restricted stock and are carried at cost. These equity securities are not subject to the classifications above. Loans held for sale Loans held for sale are those loans the Company has the intent to sell in the foreseeable future. The Company has elected to use the fair value accounting option (“FVO”) for loans held for sale. Gains and losses on sales of loans are recognized at settlement dates and are determined by the difference between the sales proceeds and the fair value of the loans. All sales are made without recourse and are sold with servicing released. Loan commitments and related financial instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Mortgage banking The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (interest rate lock commitments). Interest rate lock commitments on mortgage loans to be held for sale are accounted for as free standing derivatives. The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 15 to 90 days. The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Company is not exposed to significant losses nor will it realize significant gains related to rate lock commitments due to changes in interest rates. The Company has elected to use the FVO for best effort forward sales commitments. Derivatives At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to the likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in current earnings as respective fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives not designated or that do not qualify for hedge accounting are reported currently in earnings as non-interest income. Accrued settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense based on the item being hedged. Accrued settlements on derivatives not designated or that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still probable of occurring, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. Loans The Company loan portfolio segments include (i) commercial real estate, (ii) single family residential (1-4 units), (iii) owner-occupied commercial real estate, (iv) acquisition, construction and development, (v) commercial & industrial, and (vi) consumer non-real estate and other. Risk factors evaluated include the economic environment’s impact on each portfolio segment and the following specific risk factors: • Commercial real estate loans carry risk associated with either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. Other risk factors include the credit-worthiness of the sponsor and the value of the collateral. • Single family residential (1-4 units) loans for consumer purposes carry risk associated with the continued credit-worthiness of the borrower and the value of the collateral. Single family residential (1-4 units) loans for investment purposes carry risk associated with the continued credit-worthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. • Owner-occupied commercial real estate loans carry risk associated with the operations of the business that occupies the property and the value of the collateral. • Acquisition, construction and development loans carry risk associated with the credit-worthiness of the borrower, project completion within budget, sale after completion, and the value of the collateral. • Commercial & industrial loans carry risk associated with the operations of the business and the value of the collateral, if any. • Consumer non-real estate and other loans carry risk associated with the credit-worthiness of the borrower and the value of the collateral, if any. The Company’s recorded investments in loans that management has the intent and ability to hold for the foreseeable future, until maturity or until pay-off, generally are reported at their outstanding unpaid principal balances, adjusted for partial charge-offs, the allowance for loan losses, and any deferred fees and costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees and costs are deferred and recognized as an adjustment of the related loan yield using the interest method without anticipating prepayments. For all portfolio segments, the accrual of interest is discontinued at the time a loan becomes 90 days delinquent, unless the credit is well-secured and in process of collection. Loans also are placed on nonaccrual if collection of principal or interest is considered impaired. All interest accrued, but not received, for loans placed on non-accrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. For all portfolio segments, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and a history of on-time payments has again been established. Concentrations of credit Substantially all of the Company’s loans, commitments, and standby letters of credit have been granted to customers in the Company’s market area. Such customers are general depositors of the Company. Some investments in state and municipal securities also involve governmental entities within the Company’s market area. The distribution of commitments to extend credit approximates the distribution of loans outstanding. Standby letters of credit are granted primarily to commercial borrowers. Troubled debt restructuring (“TDR”) Loans are classified as a TDR, if a concession was granted in connection with the modification, for legal or economic reasons, related to the debtor’s financial difficulties. Management strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of collateral. In cases where borrowers are granted new terms that provided for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for any impaired loans. Troubled debt restructurings are individually evaluated for impairment and included in the separately identified impairment disclosures. TDRs are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For TDRs that subsequently default, the Company determines the amount of the allowance on that loan in accordance with the accounting policy for the allowance for loan losses on loans individually identified as impaired. The Company incorporates recent historical experience related to TDRs, including the performance of TDRs that subsequently default, into the calculation of the allowance by loan portfolio segment. The Company is monitoring COVID-19 related modifications. If loans within this population require subsequent modifications, including payment extensions beyond six months, the Company will consider the borrower’s financial status at the time of the request and the effect of all modifications, past and requested, on the loan. If the borrower is deemed to be in financial difficulty that is not short-term and the impact of all modifications is considered to amount to a concession under U.S. GAAP, the loan will be designated a TDR. The Company is also monitoring the COVID-19 related modification population to determine whether other credit-related action should be taken, possibly including downgrading credit risk ratings, designating as nonaccrual, or determining a charge-off. Allowance for loan losses The allowance for loan losses is established to absorb probable losses inherent in outstanding loans through a provision for loan losses charged to earnings. Credit losses are charged against the allowance. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a quarterly basis by management and is based upon (i) past loan loss experience for each portfolio segment as adjusted by environmental factors plus a risk adjustment based on the risk rating of the loan, and (ii) a loan by loan analysis of all other loans which are rated as either in a nonaccrual status or classified as troubled debt restructuring. Loan ratings include: • Pass-rated loans include all loans which are considered to be either high quality, good quality or acceptable quality. Borrowers have an acceptable financial condition with demonstrated repayment ability. • Special mention loans have potential developing weaknesses that deserve extra attention. If the developing weakness is not corrected or mitigated, there may be deterioration in the ability of the borrower to repay. • Substandard is a regulatory classification. Loans rated substandard are considered to have well-defined weakness and there is a possibility that some future loss will be sustained if such weakness is not corrected. • Doubtful is a regulatory classification. Loans rated doubtful have all of the weaknesses inherent in those rated substandard, with the added characteristic that the severity of the weaknesses makes collection or liquidation in full highly questionable. The probability of some loss is high. • Loss represents a classification for loans which are considered uncollectible and are in the process of being charged off. Historical credit losses for each portfolio segment are adjusted by environmental factors which include (i) changes in lending policies and procedures, including underwriting standards, and collection, charge-off, and recovery practices; (ii) changes in national and local economic and business conditions, including the conditions of various market segments; (iii) changes in the nature and volume of the portfolio; (iv) changes in the experience, ability, and depth of lending management and staff; (v) changes in the volume and severity of past due and classified loans and the volume of nonaccruals, troubled debt restructurings, and other loan modifications; (vi) changes in the quality of the Company’s loan review system and the degree of oversight by the Company’s Board; (vii) the existence and effect of any concentrations of credit and changes in the level of such concentrations; and (viii) the effect of external factors, such as competition and legal and regulatory requirements, on the level of estimated credit losses in the Company’s current portfolio. This evaluation is inherently subjective since it requires estimates that are susceptible to significant revision as additional information becomes available or as economic conditions change. Impaired, collateral dependent loans may be charged down to the net realizable value of the collateral. Alternatively, a specific allowance may be established when the discounted cash flows (or collateral value of observable market price) of the impaired loan are less than the carrying value of that loan. For all portfolio segments, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. For all portfolio segments, a loan is charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Premises and equipment Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives up to 40 years. Furniture, fixtures and equipment are depreciated using the straight-line method (or accelerated) method with useful lives ranging from 3 to 10 years. Maintenance and repairs are charged to expense as incurred and major improvements are capitalized. Company-owned life insurance The Company has purchased life insurance policies on certain employees. Company-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Transfers of financial assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Other real estate owned (OREO) Assets acquired through foreclosure or other proceedings are initially recorded at fair value at the date of foreclosure less estimated costs of disposal, which establishes a new cost. After foreclosure, valuations periodically are performed by management and the foreclosed assets held for sale are carried at the lower of cost or fair value less estimated costs of disposal. Any write-down to fair value at the time of transfer to foreclosed assets is charged to the allowance for loan losses. All subsequent gains on sale, losses on sale, and additional write-downs are included in net gains/(losses) on other real estate owned. Revenue and expenses from the operations of foreclosed assets are included in other non-interest income and other operating expenses. Income taxes The Company accounts for income taxes in accordance with income tax accounting guidance. The Company has adopted the accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes interest and penalties on income taxes as a component of income tax expense. Employee benefits The Company has a noncontributory defined benefit pension plan that was frozen to new participants on June 1, 2005. The Company also has a defined contribution plan (The Investment and Savings Plan) with a salary deferral provision, which covers all employees in the month following their date of hire if they have reached the age of 18. The Company’s funding policy for the defined benefit plan is to make annual contributions to the Plan in amounts that are determined based on actuarial valuations and recommendations and which meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974. Authoritative accounting literature requires an employer to recognize the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its balance sheet and to recognize changes in the funded status in the year in which the changes occur through comprehensive income. The funded status of a benefit plan will be measured as the difference between plan assets at fair value and the benefit obligation. For a pension plan, the benefit obligation is the projected benefit obligation. For any other postretirement plan, the benefit obligation is the accumulated postretirement benefit obligation. Authoritative accounting literature also requires an employer to measure the funded status of a plan as of the date of its year-end balance sheet. The guidance also requires additional disclosure in the notes to financial statements about certain effects on net periodic benefit cost for the next fiscal year that arise from delayed recognition of the gains or losses, prior service costs or credits, and transition asset or obligation. Per share data The Company’s capital structure includes a stock-based compensation plan, which may be dilutive to earnings per share (“EPS”). Basic EPS is calculated by dividing net income by the weighted average number of shares outstanding during the year. Diluted EPS is calculated by assuming dilution of common shares and adjusting net income for compensation cost attributable to the stock-based compensation plan. Trust assets and fees Assets of the trust department, other than trust cash on deposit at the Company, are not included in these financial statements because they are not assets of the Company. Trust fees are recognized in income using the accrual method. Loss contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements. Comprehensive income (loss) Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available-for-sale, unrealized gains and losses on cash flow hedges, and changes in the funded status of the pension plan, which are also recognized as separate components of equity. Leases Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. Fair value of financial instruments Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. Stock-based compensation Compensation cost is recognized for equity awards issued to employees and directors, based on the fair value of these awards at the date of grant using an observable market price. The Company classifies stock awards as equity. Compensation cost is recognized over the required service period on a straight-line basis. The Company’s accounting policy is to recognize forfeitures as they occur. Segment reporting The Company operates in one segment – Community Banking and the financial performance of this one segment is used to make resource allocations and performance decisions. While the chief decision-maker monitors the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Individual operating results are not reviewed by senior management to make resource allocation or performance decisions. Therefore, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. Reclassifications Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholder’s equity. Recent Accounting Pronouncements The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13: Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments to replace the incurred loss model for loans and other financial assets with an expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in certain leases recognized by a lessor. In addition, the amendments in Topic 326 require credit losses on available-for-sale to be presented as a valuation allowance rather than as a direct write-down (e.g. OTTI). The FASB has issued multiple updates to ASU 2016-13 as codified in Topic 326, including ASUs 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. These ASUs have provided for various minor tec

Nature of Business Activities_3

Nature of Business Activities and Significant Accounting Policies	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Nature of Business Activities and Significant Accounting Policies	Nature of Business Activities and Significant Accounting Policies Nature of operations Burke & Herbert Financial Services Corp. was organized as a Virginia corporation on September 14, 2022, to serve as the holding company for Burke & Herbert Bank & Trust Company (“the Bank”), together referred to as the “Company”. The Company commenced operations as a bank holding company on October 1, 2022, following a reorganization transaction in which it became the Bank’s holding company. This transaction was treated as an internal reorganization as all shareholders of the Bank became shareholders of the Company. As a bank holding company, the Company is subject to regulation and supervision by the Federal Reserve. The Company has no material operations and owns 100% of the Bank. The Bank is a Virginia chartered commercial bank that commenced operations in 1852. The Bank is supervised and regulated by the Federal Deposit Insurance Corporation (the “FDIC”) and the Bureau of Financial Institutions of the Virginia State Corporation Commission (the “Virginia BFI”). The Bank’s primary market area includes northern Virginia, and it has over 20 branches throughout the Northern Virginia region and commercial loan offices in Fredericksburg, Loudoun County, and Richmond, Virginia, and in Bethesda, Maryland. The Company’s branch locations accept business and consumer deposits from a diverse customer base. The Company’s deposit products include checking, savings, and term certificate accounts. The Company’s loan portfolio includes commercial and consumer loans, a substantial portion of which are secured by real estate. Basis of Presentation The accompanying consolidated financial statements include Burke & Herbert Financial Services Corp. and its wholly owned subsidiary Burke & Herbert Bank & Trust Company and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and with applicable quarterly reporting regulations of the U.S. Securities and Exchange Commission (“SEC”). The accounting and reporting policies of the Company conform to GAAP and reflect practices of the banking industry. They do not include all of the information and notes required by GAAP for complete financial statements. As such, these unaudited financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ending December 31, 2022, included in the Company’s Registration Statement on Form 10 filed with the SEC on February 28, 2023, as amended on April 4, 2023, April 20, 2023, and April 21, 2023, and as declared as effective by the SEC on April 21, 2023. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions between the Company and the Bank have been eliminated. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made. The results of operations for the three months ended March 31, 2023, are not necessarily indicative of the results to be expected for any other interim period or for the full year. All amounts and disclosures included in this quarterly report as of December 31, 2022, were derived from the Company’s audited consolidated financial statements. Certain items in the prior period have been reclassified to conform to the current presentation. These reclassifications had no effect on prior year net income or on shareholders’ equity. Adoption of new accounting standards Derivatives and Hedging On March 28, 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method . The purpose of this updated guidance is to further align risk management objectives with hedge accounting results on the application of the last-of-layer method, which was first introduced in ASU 2017-02, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2022-01 is effective for public business entities for fiscal years beginning after December 15, 2022. ASU 2022-01 requires a modified retrospective transition method for basis adjustments in which the entity will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company adopted this ASU on January 1, 2023, on a prospective basis; therefore, there was no impact to the consolidated financial statements. Allowance for Credit Losses On January 1, 2023, the Company adopted ASU 2016-13 : Measurement of Credit Losses on Financial Instruments ( “ASC 326” ) , as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The CECL methodology requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, as well as future forecasts including reasonable and supportable forecasts and other forecast periods. CECL generally applies to financial assets measured at amortized cost and some off-balance sheet credit exposures, such as unfunded commitments to extend credit. Financial assets measured at amortized cost are presented as the net amount expected to be collected. In addition, CECL made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell. The Company adopted ASC 326 and all related subsequent amendments thereto effective January 1, 2023, using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the new CECL standard resulted in a cumulative-effect adjustment that increased the allowance for credit losses for loans by $4.1 million and increased the allowance for unfunded commitments by $274.8 thousand. Retained earnings, net of deferred taxes, decreased by $3.4 million. Results for reporting periods beginning after January 1, 2023, are presented under ASU 2016-13, while prior period amounts continue to be reported in accordance with the incurred loss model under the previously applicable GAAP. The following table illustrates the impact of the adoption of CECL, and the transition away from the incurred loss method, on January 1, 2023. The impact to the allowance for credit losses (“ACL”) is presented at the loan segment level (in thousands): January 1, 2023 Reserves under Incurred Loss Model Reserves under CECL Model Impact of CECL Adoption Financial Assets: Commercial real estate $ 15,477 $ 18,163 $ 2,686 Owner-occupied commercial real estate 635 629 (6) Acquisition, construction & development 2,082 1,442 (640) Commercial & industrial 438 675 237 Single family residential (1-4 units) 2,379 4,040 1,661 Consumer non-real estate and other 28 215 187 Unallocated reserve — — — Allowance for credit losses on loans $ 21,039 $ 25,164 $ 4,125 Financial Liabilities: Allowance for credit losses on off-balance sheet credit exposure $ — $ 275 $ 275 The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities. The Company did not record an ACL for securities upon adoption. The Company elected not to measure an ACL for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on non-accrual status, which is generally when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectible interest. On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures . ASU 2022-02 addresses areas identified by the FASB as part of its implementation review of the credit losses standard (ASU 2016-13) that introduced the CECL model. The amendments eliminate the accounting guidance for troubled debt restructurings (“TDRs”) by creditors that have adopted the CECL model and enhance the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, the amendments require that the Company disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The Company adopted the standard prospectively, and it did not have a material impact on the financial statements. Allowance for credit losses - available-for-sale debt securities Management evaluates all available-for-sale (“AFS”) debt securities in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. The Company first assesses whether it intends to sell or if it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists, and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as credit loss expense (or recapture). Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. At March 31, 2023, there was no ACL related to the AFS security portfolio. Refer to Note 2 - Securities in Notes to the Consolidated Financial Statements. Allowance for credit losses - loans The ACL represents an amount, which, in management’s judgment, reflects expected credit losses in the loan portfolio at the balance sheet date. The estimate for expected credit losses is based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions, and prepayment experience as related to credit contractual term information. The ACL is measured and recorded upon the initial recognition of a financial asset. The ACL is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision for (or recapture of) credit losses, which is recorded in the Consolidated Statements of Income. The ACL for expected credit losses is determined based on a quantitative assessment of two categories of loans: collectively evaluated loans and individually evaluated loans. In addition, the ACL also includes a qualitative component which adjusts the CECL model for risk factors that are not considered within the CECL model, but are relevant in assessing the expected credit losses within the loan portfolio. The Company is using a remaining useful life or weighted average remaining maturity (“WARM”) methodology to estimate its current expected credit losses. For purposes of calculating reserves in collectively evaluated loans, ACL calculation segments the Company’s loan portfolio using federal call codes to group loans which share similar risk characteristics. In order to generate reasonable and supportable forecasts of loss rates over a two-year period, the ACL calculation utilizes macroeconomic variable loss drivers, which may include aggregate macroeconomic indicators pertaining to such items as equity market conditions or interest rates, as well as other variables that are portfolio-specific, such as those that pertain to the commercial real estate or residential loan portfolios. A straight-line reversion technique is used for the following four quarters, and in following quarters, the ACL calculation reverts to historical average loss rates. Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond information used to calculate reasonable and supportable, reversion and post-reversion period forecasts on collectively evaluated loans. As the reasonable and supportable and reversion period forecasts reflect the use of the macroeconomic variable loss drivers, management may consider that an additional or reduced reserve is warranted through qualitative risk factors based on current and expected conditions, including those that utilize supplemental information relative to the macroeconomic variable loss drivers. Many of these qualitative risk factors considered by management are comparable to legacy factors prior to the adoption of CECL and include the following: • Nature and volume of loans; • Concentrations of credit; • Delinquency trends; • Experience, ability, and depth of management and lending staff; and • Quality of loan review system. Loans that do not share similar risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans collectively evaluated. A specific reserve analysis is applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the expected future cash flows. A specific reserve may be assigned if the measured value of the loan using one of the before mentioned methods is less than the current carrying value of the loan. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient to measure the ACL based on the fair value of the collateral. A loan is considered collateral-dependent when the Company determines foreclosure is probable or the borrower is experiencing financial difficulty and the Company expects repayment to be provided substantially through the operation or sale of the collateral. Collateral could be in the form of real estate, equipment, or business assets. An ACL may result for a collateral-dependent loan if the fair value of the underlying collateral, as of the reporting date, adjusted for expected costs to repair or sell, was less than the amortized cost basis of the loan. If repayment of the loan is instead dependent only on the operation, rather than the sale of the collateral, the measure of the ACL does not incorporate estimated costs to sell. For loans analyzed on the basis of projected future principal and interest cash flows, the Company will discount the expected cash flows at the effective interest rate of the loan, and an ACL would result if the present value of the expected cash flows was less than the amortized cost basis of the loan. When the discounted cash flow method is used to determine the ACL, management does not adjust the effective interest rate used to discount cash flows to incorporate expected prepayments. Allowance for credit losses on off-balance sheet credit exposures On a quarterly basis, the Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on off-balance sheet credit exposures is adjusted through the provision for credit losses on the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life by loan segment at each balance sheet date under the CECL model using the same methodology as the loan portfolio. The ACL for unfunded commitments is included in accrued interest and other liabilities on the Company’s Consolidated Balance Sheets. Accrued Interest Receivable The Company has elected to exclude accrued interest from the amortized cost basis in its determination of the ACL and elected the policy to write-off accrued interest receivable directly through the reversal of interest income. Accrued interest receivable totaled $7.5 million on loans and totaled $7.9 million on AFS securities at March 31, 2023 , and is included in accrued interest receivable on the Company’s Consolidated Balance Sheets.	Nature of Business Activities and Significant Accounting Policies Nature of operations Burke & Herbert Financial Services Corp. was organized as a Virginia corporation on September 14, 2022, to serve as the holding company for Burke & Herbert Bank & Trust Company (“the Bank”), together referred to as the “Company”. The Company commenced operations as a bank holding company on October 1, 2022, following a reorganization transaction in which it became the Bank’s holding company. This transaction was treated as an internal reorganization as all shareholders of the Bank became shareholders of the Company. As a bank holding company, the Company is subject to regulation and supervision by the Federal Reserve. The Company has no material operations and owns 100% of the Bank. The Bank is a Virginia chartered commercial bank that commenced operations in 1852. The Bank is supervised and regulated by the Federal Deposit Insurance Corporation (the “FDIC”) and the Bureau of Financial Institutions of the Virginia State Corporation Commission (the “Virginia BFI”). The Bank’s primary market area includes northern Virginia, and it has over 20 branches throughout the Northern Virginia region and commercial loan offices in Fredericksburg, Loudoun County, and Richmond, Virginia, and in Bethesda, Maryland. The Company’s branch locations accept business and consumer deposits from a diverse customer base. The Company’s deposit products include checking, savings, and term certificate accounts. The Company’s loan portfolio includes commercial and consumer loans, a substantial portion of which are secured by real estate. Basis of Presentation The accompanying consolidated financial statements include Burke & Herbert Financial Services Corp. and its wholly owned subsidiary Burke & Herbert Bank & Trust Company and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and with applicable quarterly reporting regulations of the U.S. Securities and Exchange Commission (“SEC”). The accounting and reporting policies of the Company conform to GAAP and reflect practices of the banking industry. They do not include all of the information and notes required by GAAP for complete financial statements. As such, these unaudited financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ending December 31, 2022, included in the Company’s Registration Statement on Form 10 filed with the SEC on February 28, 2023, as amended on April 4, 2023, April 20, 2023, and April 21, 2023, and as declared as effective by the SEC on April 21, 2023. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions between the Company and the Bank have been eliminated. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made. The results of operations for the three and six months ended June 30, 2023, are not necessarily indicative of the results to be expected for any other interim period or for the full year. All amounts and disclosures included in this quarterly report as of December 31, 2022, were derived from the Company’s audited consolidated financial statements. Certain items in the prior period have been reclassified to conform to the current presentation. These reclassifications had no effect on prior year net income or on shareholders’ equity. Adoption of new accounting standards Derivatives and Hedging On March 28, 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method . The purpose of this updated guidance is to further align risk management objectives with hedge accounting results on the application of the last-of-layer method, which was first introduced in ASU 2017-02, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2022-01 is effective for public business entities for fiscal years beginning after December 15, 2022. ASU 2022-01 requires a modified retrospective transition method for basis adjustments in which the entity will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company adopted this ASU on January 1, 2023; therefore, there was no impact to the consolidated financial statements. Allowance for Credit Losses On January 1, 2023, the Company adopted ASU 2016-13 : Measurement of Credit Losses on Financial Instruments (“ASC 326”), as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The CECL methodology requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, as well as future forecasts including reasonable and supportable forecasts and other forecast periods. CECL generally applies to financial assets measured at amortized cost and some off-balance sheet credit exposures, such as unfunded commitments to extend credit. Financial assets measured at amortized cost are presented as the net amount expected to be collected. In addition, CECL made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell. The Company adopted ASC 326 and all related subsequent amendments thereto effective January 1, 2023, using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the new CECL standard resulted in a cumulative-effect adjustment that increased the allowance for credit losses for loans by $4.1 million and increased the allowance for unfunded commitments by $274.8 thousand. Retained earnings, net of deferred taxes, decreased by $3.4 million. Results for reporting periods beginning after January 1, 2023, are presented under ASU 2016-13, while prior period amounts continue to be reported in accordance with the incurred loss model under the previously applicable GAAP. The following table illustrates the impact of the adoption of CECL, and the transition away from the incurred loss method, on January 1, 2023. The impact to the allowance for credit losses (“ACL”) is presented at the loan segment level (in thousands): January 1, 2023 Reserves under Incurred Loss Model Reserves under CECL Model Impact of CECL Adoption Financial Assets: Commercial real estate $ 15,477 $ 18,163 $ 2,686 Owner-occupied commercial real estate 635 629 (6) Acquisition, construction & development 2,082 1,442 (640) Commercial & industrial 438 675 237 Single family residential (1-4 units) 2,379 4,040 1,661 Consumer non-real estate and other 28 215 187 Unallocated reserve — — — Allowance for credit losses on loans $ 21,039 $ 25,164 $ 4,125 Financial Liabilities: Allowance for credit losses on off-balance sheet credit exposure $ — $ 275 $ 275 The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities. The Company did not record an ACL for securities upon adoption. The Company elected not to measure an ACL for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on non-accrual status, which generally occurs when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectible interest. On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures . ASU 2022-02 addresses areas identified by the FASB as part of its implementation review of the credit losses standard (ASU 2016-13) that introduced the CECL model. The amendments eliminate the accounting guidance for troubled debt restructurings (“TDRs”) by creditors that have adopted the CECL model and enhance the disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, the amendments require that the Company disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The Company adopted the standard prospectively, and it did not have a material impact on the financial statements. Allowance for credit losses - available-for-sale debt securities Management evaluates all available-for-sale (“AFS”) debt securities in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. The Company first assesses whether it intends to sell or if it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists, and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as credit loss expense (or recapture). Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. At June 30, 2023, there was no ACL related to the AFS security portfolio. Refer to Note 2 - Securities in Notes to the Consolidated Financial Statements. Allowance for credit losses - loans The ACL represents an amount, which, in management’s judgment, reflects expected credit losses in the loan portfolio at the balance sheet date. The estimate for expected credit losses is based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions, and prepayment experience as related to credit contractual term information. The ACL is measured and recorded upon the initial recognition of a financial asset. The ACL is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision for (or recapture of) credit losses, which is recorded in the Consolidated Statements of Income. The ACL for expected credit losses is determined based on a quantitative assessment of two categories of loans: collectively evaluated loans and individually evaluated loans. In addition, the ACL also includes a qualitative component which adjusts the CECL model for risk factors that are not considered within the CECL model, but are relevant in assessing the expected credit losses within the loan portfolio. The Company is using a remaining useful life or weighted average remaining maturity (“WARM”) methodology to estimate its current expected credit losses. For purposes of calculating reserves in collectively evaluated loans, the ACL calculation segments the Company’s loan portfolio using federal call codes to group loans which share similar risk characteristics. In order to generate reasonable and supportable forecasts of loss rates over a two-year period, the ACL calculation utilizes macroeconomic variable loss drivers, which may include aggregate macroeconomic indicators pertaining to such items as equity market conditions or interest rates, as well as other variables that are portfolio-specific, such as those that pertain to the commercial real estate or residential loan portfolios. A straight-line reversion technique is used for the following four quarters, and in following quarters, the ACL calculation reverts to historical average loss rates. Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond information used to calculate reasonable and supportable, reversion and post-reversion period forecasts on collectively evaluated loans. As the reasonable and supportable and reversion period forecasts reflect the use of the macroeconomic variable loss drivers, management may consider that an additional or reduced reserve is warranted through qualitative risk factors based on current and expected conditions, including those that utilize supplemental information relative to the macroeconomic variable loss drivers. Many of these qualitative risk factors considered by management are comparable to legacy factors prior to the adoption of CECL and include the following: • Nature and volume of loans; • Concentrations of credit; • Delinquency trends; • Experience, ability, and depth of management and lending staff; and • Quality of loan review system. Loans that do not share similar risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans collectively evaluated. A specific reserve analysis is applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the expected future cash flows. A specific reserve may be assigned if the measured value of the loan using one of the before mentioned methods is less than the current carrying value of the loan. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient to measure the ACL based on the fair value of the collateral. A loan is considered collateral-dependent when the Company determines foreclosure is probable or the borrower is experiencing financial difficulty and the Company expects repayment to be provided substantially through the operation or sale of the collateral. Collateral could be in the form of real estate, equipment, or business assets. An ACL may result for a collateral-dependent loan if the fair value of the underlying collateral, as of the reporting date, adjusted for expected costs to repair or sell, was less than the amortized cost basis of the loan. If repayment of the loan is instead dependent only on the operation, rather than the sale of the collateral, the measure of the ACL does not incorporate estimated costs to sell. For loans analyzed on the basis of projected future principal and interest cash flows, the Company will discount the expected cash flows at the effective interest rate of the loan, and an ACL would result if the present value of the expected cash flows was less than the amortized cost basis of the loan. When the discounted cash flow method is used to determine the ACL, management does not adjust the effective interest rate used to discount cash flows to incorporate expected prepayments. Allowance for credit losses on off-balance sheet credit exposures On a quarterly basis, the Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on off-balance sheet credit exposures is adjusted through the provision for credit losses on the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life by loan segment at each balance sheet date under the CECL model using the same methodology as the loan portfolio. The ACL for unfunded commitments is included in accrued interest and other liabilities on the Company’s Consolidated Balance Sheets. Accrued Interest Receivable The Company has elected to exclude accrued interest from the amortized cost basis in its determination of the ACL and elected the policy to write-off accrued interest receivable directly through the reversal of interest income. Accrued interest receivable totaled $7.7 million on loans and totaled $7.4 million on AFS securities at June 30, 2023, and is included in accrued interest receivable on the Company’s Consolidated Balance Sheets.	Nature of Business Activities and Significant Accounting Policies Nature of operations and principles of consolidation The consolidated financial statements include Burke & Herbert Financial Services Corp. and its wholly owned subsidiary Burke & Herbert Bank & Trust Company (“the Bank”), together referred to as “the Company.” Intercompany transactions and balances are eliminated in consolidation. Burke & Herbert Financial Services Corp. was organized as a Virginia corporation in 2022 to serve as the holding company for Burke & Herbert Bank & Trust Company. The Company commenced operations as a bank holding company on October 1, 2022 following a reorganization transaction in which it became the Bank’s holding company. This transaction was treated as an internal reorganization as all shareholders of the Bank became shareholders of the Company. As a bank holding company, the Company is subject to regulation and supervision by the Federal Reserve. The Company has no material operations and owns 100% of the Bank. The Bank’s primary market area includes northern Virginia and it has over 20 branches throughout the Northern Virginia region and commercial loan offices in Fredericksburg, Loudoun County, and Richmond, Virginia, and in Bethesda, Maryland. The Company’s branch locations accept business and consumer deposits from a diverse customer base. The Company’s deposit products include checking, savings, and term certificate accounts. The Company’s loan portfolio includes commercial and consumer loans, a substantial portion of which are secured by real estate. A summary of the Company’s significant accounting policies follows: Subsequent events The Company has evaluated subsequent events for recognition and disclosure through February 24, 2023, which is the date the financial statements were available to be issued. Use of estimates To prepare financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”), management makes estimates and assumptions based on available information that affects the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash, cash equivalents and cash flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand and amounts due from banks, including cash items in process of clearing with maturities fewer than 90 days. Cash flows from loans, federal funds purchased and sold, securities sold under agreements to repurchase and deposits are reported on a net basis. Restriction on cash No reserve balances were required at December 31, 2022 and December 31, 2021. There was no reserve requirement with the Federal Reserve as of December 31, 2022 or December 31, 2021. Debt & equity securities Management determines the appropriate classification of debt securities at the time of purchase. Debt securities that the Company has both the positive intent and ability to hold to maturity are classified as held to maturity and are reported at cost, adjusted for amortization of premiums and accretion of discounts. Debt securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity, are classified as available-for-sale and are reported at fair value. Unrealized gains and losses on investments classified as available-for-sale have been accounted for as a separate component of accumulated other comprehensive income or loss, net of the related deferred tax effect. Amortization of premiums and accretion of discounts are recognized in interest income over the terms of the securities. Any decision to sell a security classified as available-for-sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Management evaluates debt securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For debt securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a debt security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized costs and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the statements of income and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Equity securities are carried at fair value with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical, or a similar, investment. Due to the nature of, and restrictions placed upon, certain equity securities that have been classified as restricted stock and are carried at cost. These equity securities are not subject to the classifications above. Loans held for sale Loans held for sale are those loans the Company has the intent to sell in the foreseeable future. The Company has elected to use the fair value accounting option (“FVO”) for loans held for sale. Gains and losses on sales of loans are recognized at settlement dates and are determined by the difference between the sales proceeds and the fair value of the loans. All sales are made without recourse and are sold with servicing released. Loan commitments and related financial instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Mortgage banking The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (interest rate lock commitments). Interest rate lock commitments on mortgage loans to be held for sale are accounted for as free standing derivatives. The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 15 to 90 days. The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Company is not exposed to significant losses nor will it realize significant gains related to rate lock commitments due to changes in interest rates. The Company has elected to use the FVO for best effort forward sales commitments. Derivatives At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to the likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in current earnings as respective fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives not designated or that do not qualify for hedge accounting are reported currently in earnings as non-interest income. Accrued settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense based on the item being hedged. Accrued settlements on derivatives not designated or that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as non-interest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still probable of occurring, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. Loans The Company loan portfolio segments include (i) commercial real estate, (ii) single family residential (1-4 units), (iii) owner-occupied commercial real estate, (iv) acquisition, construction and development, (v) commercial & industrial, and (vi) consumer non-real estate and other. Risk factors evaluated include the economic environment’s impact on each portfolio segment and the following specific risk factors: • Commercial real estate loans carry risk associated with either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. Other risk factors include the credit-worthiness of the sponsor and the value of the collateral. • Single family residential (1-4 units) loans for consumer purposes carry risk associated with the continued credit-worthiness of the borrower and the value of the collateral. Single family residential (1-4 units) loans for investment purposes carry risk associated with the continued credit-worthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. • Owner-occupied commercial real estate loans carry risk associated with the operations of the business that occupies the property and the value of the collateral. • Acquisition, construction and development loans carry risk associated with the credit-worthiness of the borrower, project completion within budget, sale after completion, and the value of the collateral. • Commercial & industrial loans carry risk associated with the operations of the business and the value of the collateral, if any. • Consumer non-real estate and other loans carry risk associated with the credit-worthiness of the borrower and the value of the collateral, if any. The Company’s recorded investments in loans that management has the intent and ability to hold for the foreseeable future, until maturity or until pay-off, generally are reported at their outstanding unpaid principal balances, adjusted for partial charge-offs, the allowance for loan losses, and any deferred fees and costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees and costs are deferred and recognized as an adjustment of the related loan yield using the interest method without anticipating prepayments. For all portfolio segments, the accrual of interest is discontinued at the time a loan becomes 90 days delinquent, unless the credit is well-secured and in process of collection. Loans also are placed on nonaccrual if collection of principal or interest is considered impaired. All interest accrued, but not received, for loans placed on non-accrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. For all portfolio segments, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and a history of on-time payments has again been established. Concentrations of credit Substantially all of the Company’s loans, commitments, and standby letters of credit have been granted to customers in the Company’s market area. Such customers are general depositors of the Company. Some investments in state and municipal securities also involve governmental entities within the Company’s market area. The distribution of commitments to extend credit approximates the distribution of loans outstanding. Standby letters of credit are granted primarily to commercial borrowers. Troubled debt restructuring (“TDR”) Loans are classified as a TDR, if a concession was granted in connection with the modification, for legal or economic reasons, related to the debtor’s financial difficulties. Management strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of collateral. In cases where borrowers are granted new terms that provided for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for any impaired loans. Troubled debt restructurings are individually evaluated for impairment and included in the separately identified impairment disclosures. TDRs are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For TDRs that subsequently default, the Company determines the amount of the allowance on that loan in accordance with the accounting policy for the allowance for loan losses on loans individually identified as impaired. The Company incorporates recent historical experience related to TDRs, including the performance of TDRs that subsequently default, into the calculation of the allowance by loan portfolio segment. The Company is monitoring COVID-19 related modifications. If loans within this population require subsequent modifications, including payment extensions beyond six months, the Company will consider the borrower’s financial status at the time of the request and the effect of all modifications, past and requested, on the loan. If the borrower is deemed to be in financial difficulty that is not short-term and the impact of all modifications is considered to amount to a concession under U.S. GAAP, the loan will be designated a TDR. The Company is also monitoring the COVID-19 related modification population to determine whether other credit-related action should be taken, possibly including downgrading credit risk ratings, designating as nonaccrual, or determining a charge-off. Allowance for loan losses The allowance for loan losses is established to absorb probable losses inherent in outstanding loans through a provision for loan losses charged to earnings. Credit losses are charged against the allowance. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a quarterly basis by management and is based upon (i) past loan loss experience for each portfolio segment as adjusted by environmental factors plus a risk adjustment based on the risk rating of the loan, and (ii) a loan by loan analysis of all other loans which are rated as either in a nonaccrual status or classified as troubled debt restructuring. Loan ratings include: • Pass-rated loans include all loans which are considered to be either high quality, good quality or acceptable quality. Borrowers have an acceptable financial condition with demonstrated repayment ability. • Special mention loans have potential developing weaknesses that deserve extra attention. If the developing weakness is not corrected or mitigated, there may be deterioration in the ability of the borrower to repay. • Substandard is a regulatory classification. Loans rated substandard are considered to have well-defined weakness and there is a possibility that some future loss will be sustained if such weakness is not corrected. • Doubtful is a regulatory classification. Loans rated doubtful have all of the weaknesses inherent in those rated substandard, with the added characteristic that the severity of the weaknesses makes collection or liquidation in full highly questionable. The probability of some loss is high. • Loss represents a classification for loans which are considered uncollectible and are in the process of being charged off. Historical credit losses for each portfolio segment are adjusted by environmental factors which include (i) changes in lending policies and procedures, including underwriting standards, and collection, charge-off, and recovery practices; (ii) changes in national and local economic and business conditions, including the conditions of various market segments; (iii) changes in the nature and volume of the portfolio; (iv) changes in the experience, ability, and depth of lending management and staff; (v) changes in the volume and severity of past due and classified loans and the volume of nonaccruals, troubled debt restructurings, and other loan modifications; (vi) changes in the quality of the Company’s loan review system and the degree of oversight by the Company’s Board; (vii) the existence and effect of any concentrations of credit and changes in the level of such concentrations; and (viii) the effect of external factors, such as competition and legal and regulatory requirements, on the level of estimated credit losses in the Company’s current portfolio. This evaluation is inherently subjective since it requires estimates that are susceptible to significant revision as additional information becomes available or as economic conditions change. Impaired, collateral dependent loans may be charged down to the net realizable value of the collateral. Alternatively, a specific allowance may be established when the discounted cash flows (or collateral value of observable market price) of the impaired loan are less than the carrying value of that loan. For all portfolio segments, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. For all portfolio segments, a loan is charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Premises and equipment Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives up to 40 years. Furniture, fixtures and equipment are depreciated using the straight-line method (or accelerated) method with useful lives ranging from 3 to 10 years. Maintenance and repairs are charged to expense as incurred and major improvements are capitalized. Company-owned life insurance The Company has purchased life insurance policies on certain employees. Company-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Transfers of financial assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Other real estate owned (OREO) Assets acquired through foreclosure or other proceedings are initially recorded at fair value at the date of foreclosure less estimated costs of disposal, which establishes a new cost. After foreclosure, valuations periodically are performed by management and the foreclosed assets held for sale are carried at the lower of cost or fair value less estimated costs of disposal. Any write-down to fair value at the time of transfer to foreclosed assets is charged to the allowance for loan losses. All subsequent gains on sale, losses on sale, and additional write-downs are included in net gains/(losses) on other real estate owned. Revenue and expenses from the operations of foreclosed assets are included in other non-interest income and other operating expenses. Income taxes The Company accounts for income taxes in accordance with income tax accounting guidance. The Company has adopted the accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes interest and penalties on income taxes as a component of income tax expense. Employee benefits The Company has a noncontributory defined benefit pension plan that was frozen to new participants on June 1, 2005. The Company also has a defined contribution plan (The Investment and Savings Plan) with a salary deferral provision, which covers all employees in the month following their date of hire if they have reached the age of 18. The Company’s funding policy for the defined benefit plan is to make annual contributions to the Plan in amounts that are determined based on actuarial valuations and recommendations and which meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974. Authoritative accounting literature requires an employer to recognize the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its balance sheet and to recognize changes in the funded status in the year in which the changes occur through comprehensive income. The funded status of a benefit plan will be measured as the difference between plan assets at fair value and the benefit obligation. For a pension plan, the benefit obligation is the projected benefit obligation. For any other postretirement plan, the benefit obligation is the accumulated postretirement benefit obligation. Authoritative accounting literature also requires an employer to measure the funded status of a plan as of the date of its year-end balance sheet. The guidance also requires additional disclosure in the notes to financial statements about certain effects on net periodic benefit cost for the next fiscal year that arise from delayed recognition of the gains or losses, prior service costs or credits, and transition asset or obligation. Per share data The Company’s capital structure includes a stock-based compensation plan, which may be dilutive to earnings per share (“EPS”). Basic EPS is calculated by dividing net income by the weighted average number of shares outstanding during the year. Diluted EPS is calculated by assuming dilution of common shares and adjusting net income for compensation cost attributable to the stock-based compensation plan. Trust assets and fees Assets of the trust department, other than trust cash on deposit at the Company, are not included in these financial statements because they are not assets of the Company. Trust fees are recognized in income using the accrual method. Loss contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements. Comprehensive income (loss) Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available-for-sale, unrealized gains and losses on cash flow hedges, and changes in the funded status of the pension plan, which are also recognized as separate components of equity. Leases Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. Fair value of financial instruments Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. Stock-based compensation Compensation cost is recognized for equity awards issued to employees and directors, based on the fair value of these awards at the date of grant using an observable market price. The Company classifies stock awards as equity. Compensation cost is recognized over the required service period on a straight-line basis. The Company’s accounting policy is to recognize forfeitures as they occur. Segment reporting The Company operates in one segment – Community Banking and the financial performance of this one segment is used to make resource allocations and performance decisions. While the chief decision-maker monitors the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Individual operating results are not reviewed by senior management to make resource allocation or performance decisions. Therefore, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. Reclassifications Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholder’s equity. Recent Accounting Pronouncements The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13: Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments to replace the incurred loss model for loans and other financial assets with an expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in certain leases recognized by a lessor. In addition, the amendments in Topic 326 require credit losses on available-for-sale to be presented as a valuation allowance rather than as a direct write-down (e.g. OTTI). The FASB has issued multiple updates to ASU 2016-13 as codified in Topic 326, including ASUs 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. These ASUs have provided for various minor tec

Securities

Securities	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Securities	Securities The carrying amount of AFS securities and their approximate fair values at March 31, 2023, and December 31, 2022, are summarized as follows (in thousands): March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 197,875 $ — $ 19,456 $ 178,419 Obligations of states and municipalities 547,896 44 79,578 468,362 Residential mortgage backed - agency 56,991 20 4,341 52,670 Residential mortgage backed - non-agency 349,123 12 27,985 321,150 Commercial mortgage backed - agency 59,409 58 1,635 57,832 Commercial mortgage backed - non-agency 190,542 97 7,414 183,225 Asset-backed 95,317 101 2,819 92,599 Other 9,500 — 972 8,528 $ 1,506,653 $ 332 $ 144,200 $ 1,362,785 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed - agency 57,883 14 4,836 53,061 Residential mortgage backed - non-agency 365,983 2 26,690 339,295 Commercial mortgage backed - agency 61,810 75 1,952 59,933 Commercial mortgage backed - non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 At March 31, 2023, and December 31, 2022, AFS securities with amortized costs of $799.3 million and $637.1 million, respectively, and with estimated fair values of $714.5 million and $552.5 million, respectively, were pledged to serve as collateral for secured borrowings, derivative exposures, or to secure public deposits as required or permitted by law. As of March 31, 2023, the Company entered into a fair value hedge using the portfolio layer method that is described in further detail within Note 9 - Derivatives . The gross realized gains, realized losses, and proceeds from the sales of securities for the three months ended March 31, 2023, and March 31, 2022, were as follows (in thousands): March 31, 2023 March 31, 2022 Gross realized gains $ — $ 727 Gross realized losses — (623) Proceeds from sales of securities — 87,033 The tax benefit (provision) related to these net realized gains and losses for March 31, 2023, and March 31, 2022, was zero, and $21.8 thousand, respectively. The maturities of AFS securities at March 31, 2023, were as follows (in thousands): (Expected maturities of securities not due at a single maturity date are based on average life at estimated prepayment speed. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties). March 31, 2023 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 59,546 $ 138,329 $ — $ 197,875 Obligations of states and municipalities 370 10,947 332,562 204,017 547,896 Residential mortgage backed - agency 42 33,446 23,503 — 56,991 Residential mortgage backed - non-agency 32,336 209,368 92,763 14,656 349,123 Commercial mortgage backed - agency 233 52,796 6,380 — 59,409 Commercial mortgage backed - non-agency 32,882 152,507 5,153 — 190,542 Asset-backed 2,296 51,621 41,400 — 95,317 Other — — 9,500 — 9,500 $ 68,159 $ 570,231 $ 649,590 $ 218,673 $ 1,506,653 March 31, 2023 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 55,500 $ 122,919 $ — $ 178,419 Obligations of states and municipalities 370 10,204 296,965 160,823 468,362 Residential mortgage backed - agency 42 32,561 20,067 — 52,670 Residential mortgage backed - non-agency 31,027 198,301 78,487 13,335 321,150 Commercial mortgage backed - agency 232 51,524 6,076 — 57,832 Commercial mortgage backed - non-agency 32,283 146,728 4,214 — 183,225 Asset-backed 2,238 49,966 40,395 — 92,599 Other — 8,528 — 8,528 $ 66,192 $ 544,784 $ 577,651 $ 174,158 $ 1,362,785 At March 31, 2023, and December 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in any amount greater than 10% of shareholders’ equity. The following table shows the gross unrealized losses and fair value of the Company’s securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2023, and December 31, 2022. AFS securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): March 31, 2023 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ — $ 178,419 $ 19,456 $ 19,456 Obligations of states and municipalities 17,774 330 444,269 79,248 79,578 Residential mortgage backed - agency 616 10 42,382 4,331 4,341 Residential mortgage backed - non-agency 109,454 7,318 210,963 20,667 27,985 Commercial mortgage backed - agency 1,688 124 54,441 1,511 1,635 Commercial mortgage backed - non-agency 10,970 136 160,432 7,278 7,414 Asset-backed 21,586 187 61,972 2,632 2,819 Other 6,775 725 1,753 247 972 $ 168,863 $ 8,830 $ 1,154,631 $ 135,370 $ 144,200 December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825 The Company is required to conduct an impairment evaluation on AFS securities to determine whether the Company has the intent to sell the security or it is more likely than not that it will be required to sell the security before recovery. If these situations apply, the guidance requires the Company to reduce the security's amortized cost basis down to its fair value through earnings. The Company also evaluates the unrealized losses on AFS securities to determine if a security's decline in fair value below its amortized cost basis is due to credit factors. The evaluation is based upon factors such as the creditworthiness of the underlying borrowers, performance of the underlying collateral, if applicable, and the level of credit support in the security structure. Management also evaluates other factors and circumstances that may be indicative of a decline in the fair value of the security due to a credit factor. This includes, but is not limited to, an evaluation of the type of security, length of time and extent to which the fair value has been less than cost and near-term prospects of the issuer. If this assessment indicates that a credit loss exists, the present value of the expected cash flows of the security is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost, an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis under the CECL standard, and declines due to non-credit factors are recorded in accumulated other comprehensive income (“AOCI”), net of taxes. If a credit loss is recognized in earnings, subsequent improvements to the expectation of collectability will be recognized through the ACL. If the fair value of the security increases above its amortized cost, the unrealized gain will be recorded in accumulated other comprehensive income, net of taxes, on the consolidated statements of financial condition. Prior to implementation of the CECL standard, unrealized losses caused by a credit event would require the direct write-down of the AFS security through the other-than-temporary impairment approach. The Company did not record an ACL on the AFS securities at March 31, 2023, or upon implementation of CECL on January 1, 2023. As of both periods, the Company considers the unrealized losses on the AFS securities to be related to fluctuations in market conditions, primarily interest rates, and not reflective of deterioration in credit. The Company had 451 securities in an unrealized loss position as of March 31, 2023. The Company has evaluated available-for-sale securities in an unrealized loss position for credit related impairment at March 31, 2023, and concluded no impairment existed based on a combination of factors, which included: (1) the securities are of high credit quality, (2) unrealized losses are primarily the result of market volatility and increases in market interest rates, (3) the contractual terms of the investments do not permit the issuer(s) to settle the securities at a price less than the par value of each investment, (4) issuers continue to make timely principal and interest payments, and (5) the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis. As such, there was no ACL on available-for-sale securities at March 31, 2023. Securities of U.S. Treasury and Federal Agencies and Federal Agency Mortgage (Residential and Commercial) Backed Securities At March 31, 2023, the unrealized losses associated with 12 U.S. Treasuries and Government Agency securities, 19 Residential Mortgage Backed – Agency securities, and 31 Commercial Mortgage Backed – Agency securities were generally driven by changes in interest rates and not due to credit losses given the explicit or implicit guarantees provided by the U.S. government. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Securities of U.S. States and Municipalities At March 31, 2023, the unrealized losses associated with 214 State and Municipal securities were primarily caused by changes in interest rates and not the credit quality of the securities. These securities are investment grade and were generally underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. These securities will continue to be monitored as part of our ongoing impairment analysis but are expected to perform, even if the rating agencies reduce the credit rating of the bond insurers. As a result, we expect to recover the entire amortized cost basis of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Residential & Commercial Mortgage Backed – Non-Agency Securities At March 31, 2023, the unrealized losses associated with 108 Residential Mortgage Backed – Non-Agency securities and 36 Commercial Mortgage Backed – Non-Agency securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Asset-Backed Securities At March 31, 2023, the unrealized losses associated with 28 Asset-Backed securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Other Securities At March 31, 2023, the unrealized losses associated with 3 securities were primarily driven by interest rates and not the credit quality of the securities. These investments are underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. Based on our assessment of the expected credit losses, we expect to recover the entire amortized cost basis of the securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Restricted stock, at cost The Company’s investment in Federal Home Loan Bank (“FHLB”) stock totaled $9.1 million and $16.4 million at March 31, 2023, and December 31, 2022, respectively. FHLB stock is generally viewed as a long-term investment and as a restricted investment security, which is carried at cost, because there is no market for the stock other than the FHLB or member institutions. Therefore, when evaluating FHLB stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does	Securities The carrying amount of AFS securities and their approximate fair values at June 30, 2023, and December 31, 2022, are summarized as follows (in thousands): June 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 197,592 $ — $ 22,195 $ 175,397 Obligations of states and municipalities 538,194 28 82,360 455,862 Residential mortgage backed - agency 47,340 — 5,350 41,990 Residential mortgage backed - non-agency 323,519 13 27,428 296,104 Commercial mortgage backed - agency 37,558 25 1,497 36,086 Commercial mortgage backed - non-agency 172,286 — 7,979 164,307 Asset-backed 76,611 3 2,135 74,479 Other 9,500 — 1,535 7,965 $ 1,402,600 $ 69 $ 150,479 $ 1,252,190 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed - agency 57,883 14 4,836 53,061 Residential mortgage backed - non-agency 365,983 2 26,690 339,295 Commercial mortgage backed - agency 61,810 75 1,952 59,933 Commercial mortgage backed - non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 At June 30, 2023, and December 31, 2022, AFS securities with amortized costs of $834.8 million and $637.1 million, respectively, and with estimated fair values of $735.5 million and $552.5 million, respectively, were pledged to serve as collateral for secured borrowings, derivative exposures, or to secure public deposits as required or permitted by law. The gross realized gains, realized losses, and proceeds from the sales of securities for the six months ended June 30, 2023, and June 30, 2022, were as follows (in thousands): June 30, 2023 June 30, 2022 Gross realized gains $ 773 $ 727 Gross realized losses (884) (623) Proceeds from sales of securities 77,780 87,033 The tax benefit (provision) related to these net realized gains and losses for June 30, 2023, and June 30, 2022, was $23.3 thousand, and ($21.8) thousand, respectively. The maturities of AFS securities at June 30, 2023, were as follows (in thousands): (Expected maturities of securities not due at a single maturity date are based on average life at estimated prepayment speed. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties). June 30, 2023 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ 29,711 $ 40,637 $ 127,244 $ — $ 197,592 Obligations of states and municipalities 370 12,935 317,052 207,837 538,194 Residential mortgage backed - agency 42 23,836 23,462 — 47,340 Residential mortgage backed - non-agency 58,019 160,253 95,481 9,766 323,519 Commercial mortgage backed - agency 196 31,090 6,272 — 37,558 Commercial mortgage backed - non-agency 8,562 158,575 5,149 — 172,286 Asset-backed 8,765 36,411 31,435 — 76,611 Other — — 9,500 — 9,500 $ 105,665 $ 463,737 $ 615,595 $ 217,603 $ 1,402,600 June 30, 2023 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,835 $ 35,757 $ 110,805 $ — $ 175,397 Obligations of states and municipalities 370 11,884 279,357 164,251 455,862 Residential mortgage backed - agency 42 22,857 19,091 — 41,990 Residential mortgage backed - non-agency 55,532 150,656 80,996 8,920 296,104 Commercial mortgage backed - agency 196 29,955 5,935 — 36,086 Commercial mortgage backed - non-agency 8,367 151,823 4,117 — 164,307 Asset-backed 8,661 35,210 30,608 — 74,479 Other — 7,965 — 7,965 $ 102,003 $ 438,142 $ 538,874 $ 173,171 $ 1,252,190 At June 30, 2023, and December 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in any amount greater than 10% of shareholders’ equity. The following table shows the gross unrealized losses and fair value of the Company’s securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2023, and December 31, 2022. AFS securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): June 30, 2023 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ — $ 175,397 $ 22,195 $ 22,195 Obligations of states and municipalities 11,245 291 440,754 82,069 82,360 Residential mortgage backed - agency 602 15 41,387 5,335 5,350 Residential mortgage backed - non-agency 43,562 4,315 251,852 23,113 27,428 Commercial mortgage backed - agency 1,663 145 33,625 1,352 1,497 Commercial mortgage backed - non-agency — — 164,307 7,979 7,979 Asset-backed 10,411 47 60,100 2,088 2,135 Other 6,291 1,209 1,673 326 1,535 $ 73,774 $ 6,022 $ 1,169,095 $ 144,457 $ 150,479 December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825 The Company is required to conduct an impairment evaluation on AFS securities to determine whether the Company has the intent to sell the security or it is more likely than not that it will be required to sell the security before recovery. If these situations apply, the guidance requires the Company to reduce the security's amortized cost basis down to its fair value through earnings. The Company also evaluates the unrealized losses on AFS securities to determine if a security's decline in fair value below its amortized cost basis is due to credit factors. The evaluation is based upon factors such as the creditworthiness of the underlying borrowers, performance of the underlying collateral, if applicable, and the level of credit support in the security structure. Management also evaluates other factors and circumstances that may be indicative of a decline in the fair value of the security due to a credit factor. This includes, but is not limited to, an evaluation of the type of security, length of time and extent to which the fair value has been less than cost and near-term prospects of the issuer. If this assessment indicates that a credit loss exists, the present value of the expected cash flows of the security is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost, an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis under the CECL standard, and declines due to non-credit factors are recorded in accumulated other comprehensive income (“AOCI”), net of taxes. If a credit loss is recognized in earnings, subsequent improvements to the expectation of collectability will be recognized through the ACL. If the fair value of the security increases above its amortized cost, the unrealized gain will be recorded in accumulated other comprehensive income, net of taxes, in the consolidated statements of financial condition. Prior to implementation of the CECL standard, unrealized losses caused by a credit event would require the direct write-down of the AFS security through the other-than-temporary impairment approach. The Company did not record an ACL on the AFS securities at June 30, 2023. The Company considers the unrealized losses on the AFS securities to be related to fluctuations in market conditions, primarily interest rates, and not reflective of deterioration in credit. The Company had 402 securities in an unrealized loss position as of June 30, 2023. The Company has evaluated AFS securities in an unrealized loss position for credit related impairment at June 30, 2023, and concluded no impairment existed based on a combination of factors, which included: (1) the securities are of high credit quality, (2) unrealized losses are primarily the result of market volatility and increases in market interest rates, (3) the contractual terms of the investments do not permit the issuer(s) to settle the securities at a price less than the par value of each investment, (4) issuers continue to make timely principal and interest payments, and (5) the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis. As such, there was no ACL on AFS securities at June 30, 2023. Securities of U.S. Treasury and Federal Agencies and Federal Agency Mortgage (Residential and Commercial) Backed Securities At June 30, 2023, the unrealized losses associated with 12 U.S. Treasuries and Government Agency securities, 16 Residential Mortgage Backed – Agency securities, and 16 Commercial Mortgage Backed – Agency securities were generally driven by changes in interest rates and not due to credit losses given the explicit or implicit guarantees provided by the U.S. government. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at June 30, 2023. Securities of U.S. States and Municipalities At June 30, 2023, the unrealized losses associated with 202 State and Municipal securities were primarily caused by changes in interest rates and not the credit quality of the securities. These securities are investment grade and were generally underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. These securities will continue to be monitored as part of our ongoing impairment analysis but are expected to perform, even if the rating agencies reduce the credit rating of the bond insurers. As a result, we expect to recover the entire amortized cost basis of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at June 30, 2023. Residential & Commercial Mortgage Backed – Non-Agency Securities At June 30, 2023, the unrealized losses associated with 96 Residential Mortgage Backed – Non-Agency securities and 34 Commercial Mortgage Backed – Non-Agency securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at June 30, 2023. Asset-Backed Securities At June 30, 2023, the unrealized losses associated with 23 Asset-Backed securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at June 30, 2023. Other Securities At June 30, 2023, the unrealized losses associated with 3 securities were primarily driven by interest rates and not the credit quality of the securities. These investments were underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. Based on our assessment of the expected credit losses, we expect to recover the entire amortized cost basis of the securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at June 30, 2023. Restricted stock, at cost The Company’s investment in Federal Home Loan Bank (“FHLB”) stock totaled $3.9 million and $16.4 million at June 30, 2023, and December 31, 2022, respectively. FHLB stock is generally viewed as a long-term investment and as a restricted investment security, which is carried at cost, because there is no market for the stock other than the FHLB or member institutions. Therefore, when evaluating FHLB stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider this investment to be impaired at June 30, 2023, and no impairment has been recognized. FHLB stock is included in a separate line item Restricted stock, at cost on the Consolidated Balance Sheets and is not part of the Company’s AFS securities portfolio. The Company’s Restricted stock line item on the Consolidated Balance Sheets also includes an investment in Community Bankers’ Bank, totaling $50 thousand at both June 30, 2023, and December 31, 2022, which is carried at cost and is not impaired at June 30, 2023.	Securities The carrying amount of securities and their approximate fair values at December 31, 2022 and 2021, are summarized as follows (in thousands): December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed — agency 57,883 14 4,836 53,061 Residential mortgage backed — non-agency 365,983 2 26,690 339,295 Commercial mortgage backed — agency 61,810 75 1,952 59,933 Commercial mortgage backed — non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 185,085 $ 98 $ 742 $ 184,441 Obligations of states and municipalities 651,000 20,285 5,718 665,567 Residential mortgage backed — agency 63,568 372 1,153 62,787 Residential mortgage backed — non-agency 245,794 863 2,349 244,308 Commercial mortgage backed — agency 78,830 411 358 78,883 Commercial mortgage backed — non-agency 170,048 2,492 336 172,204 Asset-backed 192,930 3,127 532 195,525 Other 2,000 — 34 1,966 $ 1,589,255 $ 27,648 $ 11,222 $ 1,605,681 At December 31, 2022 and 2021, securities with amortized costs of $637.1 million and $498.1 million, respectively, and with estimated fair values of $552.5 million and $518.6 million, respectively, were pledged to secure public deposits and for other purposes required or permitted by law. The gross realized gains, realized losses, and proceeds from the sales of securities for the years ended December 31, 2022, 2021 and 2020 were as follows (in thousands): 2022 2021 2020 Gross realized gains $ 1,512 $ — $ 1,957 Gross realized losses (1,966) (4) (13) Proceeds from sales of securities 195,907 700 49,233 The tax benefit (provision) related to these net realized gains and losses for 2022, 2021, and 2020 was $95.3 thousand, $0.8 thousand, and $(408.2) thousand, respectively. The maturities of securities available-for-sale at December 31, 2022, were as follows (in thousands): (Expected maturities of securities not due at a single maturity date are based on average life at estimated prepayment speed. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties). December 31, 2022 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 39,854 $ 158,300 $ — $ 198,154 Obligations of states and municipalities 5,235 1,563 277,320 266,472 550,590 Residential mortgage backed - agency 42 34,100 23,741 — 57,883 Residential mortgage backed - non-agency 28,203 265,190 68,172 4,418 365,983 Commercial mortgage backed - agency 415 56,622 4,773 — 61,810 Commercial mortgage backed - non-agency 32,979 153,572 5,158 — 191,709 Asset-backed 3,255 33,495 65,041 — 101,791 Other — — 9,500 — 9,500 $ 70,129 $ 584,396 $ 612,005 $ 270,890 $ 1,537,420 December 31, 2022 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 37,439 $ 137,554 $ — $ 174,993 Obligations of states and municipalities 5,246 1,529 240,753 206,379 453,907 Residential mortgage backed - agency 42 33,128 19,891 — 53,061 Residential mortgage backed - non-agency 27,182 247,662 60,448 4,003 339,295 Commercial mortgage backed - agency 414 54,960 4,559 — 59,933 Commercial mortgage backed - non-agency 32,400 146,812 4,087 — 183,299 Asset-backed 3,165 32,592 62,869 — 98,626 Other — — 8,643 — 8,643 $ 68,449 $ 554,122 $ 538,804 $ 210,382 $ 1,371,757 At year-end 2022 and 2021, there were no holdings of securities of any one issuer, other than U.S. Government and its agencies, in any amount greater than 10% of shareholders’ equity. The following table shows the gross unrealized losses and fair value of the Company’s securities with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2022 and 2021. Available-for-sale securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825 December 31, 2021 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 134,379 $ 392 $ 10,082 $ 350 $ 742 Obligations of states and municipalities 218,099 4,938 14,521 780 5,718 Residential mortgage backed - agency 48,167 1,153 — — 1,153 Residential mortgage backed - non-agency 149,640 1,624 31,024 725 2,349 Commercial mortgage backed - agency 33,703 274 6,456 84 358 Commercial mortgage backed - non-agency 36,307 321 4,137 15 336 Asset-backed 50,005 402 17,372 130 532 Other 1,966 34 — — 34 $ 672,266 $ 9,138 $ 83,592 $ 2,084 $ 11,222 The Company determines whether unrealized losses are temporary in nature in accordance with U.S. GAAP and the evaluation is based upon factors such as the creditworthiness of the underlying borrowers, performance of the underlying collateral, if applicable, and the level of credit support in the security structure. The Company also evaluates other factors and circumstances that may be indicative of an OTTI condition. This evaluation includes, but is not limited to, an evaluation of the type of security, length of time and extent to which the fair value has been less than cost, and near-term prospects of the issuer. FASB ASC 320-10 requires the Company to assess if OTTI exists by considering whether the Company has the intent to sell the security or, more likely than not, will be required to sell the security before recovery. If either of these situations applies, the guidance requires the Company to record an OTTI charge to earnings on debt securities for the difference between the amortized cost basis and the fair value of the security. If neither of these situations applies, the Company will assess whether it is expected to recover the entire amortized costs basis of the security. If the Company is not expected to recover the entire amortized cost basis of the security, we will bifurcate the identified OTTI into a credit loss component and a component representing loss related to other factors. As of December 31, 2022, the Company had no cumulative OTTI. There were no OTTI charges in earnings as a result of credit losses on investments in the years ended December 31, 2022, 2021 and 2020. Securities of U.S. Treasury and Federal Agencies and Federal Agency Mortgage (Residential and Commercial) Backed Securities At December 31, 2022, the unrealized losses associated with 12 U.S. Treasuries and Government Agency securities, 19 Residential Mortgage Backed – Agency securities, and 31 Commercial Mortgage Backed – Agency securities were generally driven by changes in interest rates and not due to credit losses given the explicit or implicit guarantees provided by the U.S. government. Securities of U.S. States and Municipalities At December 31, 2022, the unrealized losses associated with 230 State and Municipal securities were primarily caused by changes in interest rates and not the credit quality of the securities. These investments are investment grade and were generally underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. These securities will continue to be monitored as part of our ongoing impairment analysis but are expected to perform, even if the rating agencies reduce the credit rating of the bond insurers. As a result, we expect to recover the entire amortized cost basis of these securities. Residential & Commercial Mortgage Backed – Non-Agency Securities At December 31, 2022, the unrealized losses associated with 109 Residential Mortgage Backed – Non-Agency securities and 36 Commercial Mortgage Backed – Non-Agency securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Asset-Backed Securities At December 31, 2022, the unrealized losses associated with 28 Asset-Backed securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Other Securities At December 31, 2022, the unrealized losses associated with 3 securities were primarily driven by interest rates and not the credit quality of the securities. These investments are underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. Based on our assessment of the expected credit losses, we expect to recover the entire amortized cost basis of the securities. Restricted stock, at cost The Company’s investment in FHLB stock totaled $16.4 million and $12.0 million at December 31, 2022 and 2021, respectively. FHLB stock is generally viewed as a long-term investment and as a restricted investment security, which is carried at cost, because there is no market for the stock other than the FHLB or member institutions. Therefore, when evaluating FHLB stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider this investment to be other-than-temporarily impaired at December 31, 2022, and no impairment has been recognized. FHLB stock is included in a separate line item (Restricted stock, at cost) and is not part of the Company’s investment securities portfolio. The Company’s restricted securities also include an investment in Community Bankers’ Bank, totaling $50 thousand at both December 31, 2022 and 2021, which is carried at cost.

Securities_2

Securities	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Securities	Securities The carrying amount of AFS securities and their approximate fair values at March 31, 2023, and December 31, 2022, are summarized as follows (in thousands): March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 197,875 $ — $ 19,456 $ 178,419 Obligations of states and municipalities 547,896 44 79,578 468,362 Residential mortgage backed - agency 56,991 20 4,341 52,670 Residential mortgage backed - non-agency 349,123 12 27,985 321,150 Commercial mortgage backed - agency 59,409 58 1,635 57,832 Commercial mortgage backed - non-agency 190,542 97 7,414 183,225 Asset-backed 95,317 101 2,819 92,599 Other 9,500 — 972 8,528 $ 1,506,653 $ 332 $ 144,200 $ 1,362,785 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed - agency 57,883 14 4,836 53,061 Residential mortgage backed - non-agency 365,983 2 26,690 339,295 Commercial mortgage backed - agency 61,810 75 1,952 59,933 Commercial mortgage backed - non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 At March 31, 2023, and December 31, 2022, AFS securities with amortized costs of $799.3 million and $637.1 million, respectively, and with estimated fair values of $714.5 million and $552.5 million, respectively, were pledged to serve as collateral for secured borrowings, derivative exposures, or to secure public deposits as required or permitted by law. As of March 31, 2023, the Company entered into a fair value hedge using the portfolio layer method that is described in further detail within Note 9 - Derivatives . The gross realized gains, realized losses, and proceeds from the sales of securities for the three months ended March 31, 2023, and March 31, 2022, were as follows (in thousands): March 31, 2023 March 31, 2022 Gross realized gains $ — $ 727 Gross realized losses — (623) Proceeds from sales of securities — 87,033 The tax benefit (provision) related to these net realized gains and losses for March 31, 2023, and March 31, 2022, was zero, and $21.8 thousand, respectively. The maturities of AFS securities at March 31, 2023, were as follows (in thousands): (Expected maturities of securities not due at a single maturity date are based on average life at estimated prepayment speed. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties). March 31, 2023 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 59,546 $ 138,329 $ — $ 197,875 Obligations of states and municipalities 370 10,947 332,562 204,017 547,896 Residential mortgage backed - agency 42 33,446 23,503 — 56,991 Residential mortgage backed - non-agency 32,336 209,368 92,763 14,656 349,123 Commercial mortgage backed - agency 233 52,796 6,380 — 59,409 Commercial mortgage backed - non-agency 32,882 152,507 5,153 — 190,542 Asset-backed 2,296 51,621 41,400 — 95,317 Other — — 9,500 — 9,500 $ 68,159 $ 570,231 $ 649,590 $ 218,673 $ 1,506,653 March 31, 2023 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 55,500 $ 122,919 $ — $ 178,419 Obligations of states and municipalities 370 10,204 296,965 160,823 468,362 Residential mortgage backed - agency 42 32,561 20,067 — 52,670 Residential mortgage backed - non-agency 31,027 198,301 78,487 13,335 321,150 Commercial mortgage backed - agency 232 51,524 6,076 — 57,832 Commercial mortgage backed - non-agency 32,283 146,728 4,214 — 183,225 Asset-backed 2,238 49,966 40,395 — 92,599 Other — 8,528 — 8,528 $ 66,192 $ 544,784 $ 577,651 $ 174,158 $ 1,362,785 At March 31, 2023, and December 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in any amount greater than 10% of shareholders’ equity. The following table shows the gross unrealized losses and fair value of the Company’s securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2023, and December 31, 2022. AFS securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): March 31, 2023 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ — $ 178,419 $ 19,456 $ 19,456 Obligations of states and municipalities 17,774 330 444,269 79,248 79,578 Residential mortgage backed - agency 616 10 42,382 4,331 4,341 Residential mortgage backed - non-agency 109,454 7,318 210,963 20,667 27,985 Commercial mortgage backed - agency 1,688 124 54,441 1,511 1,635 Commercial mortgage backed - non-agency 10,970 136 160,432 7,278 7,414 Asset-backed 21,586 187 61,972 2,632 2,819 Other 6,775 725 1,753 247 972 $ 168,863 $ 8,830 $ 1,154,631 $ 135,370 $ 144,200 December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825 The Company is required to conduct an impairment evaluation on AFS securities to determine whether the Company has the intent to sell the security or it is more likely than not that it will be required to sell the security before recovery. If these situations apply, the guidance requires the Company to reduce the security's amortized cost basis down to its fair value through earnings. The Company also evaluates the unrealized losses on AFS securities to determine if a security's decline in fair value below its amortized cost basis is due to credit factors. The evaluation is based upon factors such as the creditworthiness of the underlying borrowers, performance of the underlying collateral, if applicable, and the level of credit support in the security structure. Management also evaluates other factors and circumstances that may be indicative of a decline in the fair value of the security due to a credit factor. This includes, but is not limited to, an evaluation of the type of security, length of time and extent to which the fair value has been less than cost and near-term prospects of the issuer. If this assessment indicates that a credit loss exists, the present value of the expected cash flows of the security is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost, an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis under the CECL standard, and declines due to non-credit factors are recorded in accumulated other comprehensive income (“AOCI”), net of taxes. If a credit loss is recognized in earnings, subsequent improvements to the expectation of collectability will be recognized through the ACL. If the fair value of the security increases above its amortized cost, the unrealized gain will be recorded in accumulated other comprehensive income, net of taxes, on the consolidated statements of financial condition. Prior to implementation of the CECL standard, unrealized losses caused by a credit event would require the direct write-down of the AFS security through the other-than-temporary impairment approach. The Company did not record an ACL on the AFS securities at March 31, 2023, or upon implementation of CECL on January 1, 2023. As of both periods, the Company considers the unrealized losses on the AFS securities to be related to fluctuations in market conditions, primarily interest rates, and not reflective of deterioration in credit. The Company had 451 securities in an unrealized loss position as of March 31, 2023. The Company has evaluated available-for-sale securities in an unrealized loss position for credit related impairment at March 31, 2023, and concluded no impairment existed based on a combination of factors, which included: (1) the securities are of high credit quality, (2) unrealized losses are primarily the result of market volatility and increases in market interest rates, (3) the contractual terms of the investments do not permit the issuer(s) to settle the securities at a price less than the par value of each investment, (4) issuers continue to make timely principal and interest payments, and (5) the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis. As such, there was no ACL on available-for-sale securities at March 31, 2023. Securities of U.S. Treasury and Federal Agencies and Federal Agency Mortgage (Residential and Commercial) Backed Securities At March 31, 2023, the unrealized losses associated with 12 U.S. Treasuries and Government Agency securities, 19 Residential Mortgage Backed – Agency securities, and 31 Commercial Mortgage Backed – Agency securities were generally driven by changes in interest rates and not due to credit losses given the explicit or implicit guarantees provided by the U.S. government. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Securities of U.S. States and Municipalities At March 31, 2023, the unrealized losses associated with 214 State and Municipal securities were primarily caused by changes in interest rates and not the credit quality of the securities. These securities are investment grade and were generally underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. These securities will continue to be monitored as part of our ongoing impairment analysis but are expected to perform, even if the rating agencies reduce the credit rating of the bond insurers. As a result, we expect to recover the entire amortized cost basis of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Residential & Commercial Mortgage Backed – Non-Agency Securities At March 31, 2023, the unrealized losses associated with 108 Residential Mortgage Backed – Non-Agency securities and 36 Commercial Mortgage Backed – Non-Agency securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Asset-Backed Securities At March 31, 2023, the unrealized losses associated with 28 Asset-Backed securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Other Securities At March 31, 2023, the unrealized losses associated with 3 securities were primarily driven by interest rates and not the credit quality of the securities. These investments are underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. Based on our assessment of the expected credit losses, we expect to recover the entire amortized cost basis of the securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Restricted stock, at cost The Company’s investment in Federal Home Loan Bank (“FHLB”) stock totaled $9.1 million and $16.4 million at March 31, 2023, and December 31, 2022, respectively. FHLB stock is generally viewed as a long-term investment and as a restricted investment security, which is carried at cost, because there is no market for the stock other than the FHLB or member institutions. Therefore, when evaluating FHLB stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does	Securities The carrying amount of AFS securities and their approximate fair values at June 30, 2023, and December 31, 2022, are summarized as follows (in thousands): June 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 197,592 $ — $ 22,195 $ 175,397 Obligations of states and municipalities 538,194 28 82,360 455,862 Residential mortgage backed - agency 47,340 — 5,350 41,990 Residential mortgage backed - non-agency 323,519 13 27,428 296,104 Commercial mortgage backed - agency 37,558 25 1,497 36,086 Commercial mortgage backed - non-agency 172,286 — 7,979 164,307 Asset-backed 76,611 3 2,135 74,479 Other 9,500 — 1,535 7,965 $ 1,402,600 $ 69 $ 150,479 $ 1,252,190 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed - agency 57,883 14 4,836 53,061 Residential mortgage backed - non-agency 365,983 2 26,690 339,295 Commercial mortgage backed - agency 61,810 75 1,952 59,933 Commercial mortgage backed - non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 At June 30, 2023, and December 31, 2022, AFS securities with amortized costs of $834.8 million and $637.1 million, respectively, and with estimated fair values of $735.5 million and $552.5 million, respectively, were pledged to serve as collateral for secured borrowings, derivative exposures, or to secure public deposits as required or permitted by law. The gross realized gains, realized losses, and proceeds from the sales of securities for the six months ended June 30, 2023, and June 30, 2022, were as follows (in thousands): June 30, 2023 June 30, 2022 Gross realized gains $ 773 $ 727 Gross realized losses (884) (623) Proceeds from sales of securities 77,780 87,033 The tax benefit (provision) related to these net realized gains and losses for June 30, 2023, and June 30, 2022, was $23.3 thousand, and ($21.8) thousand, respectively. The maturities of AFS securities at June 30, 2023, were as follows (in thousands): (Expected maturities of securities not due at a single maturity date are based on average life at estimated prepayment speed. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties). June 30, 2023 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ 29,711 $ 40,637 $ 127,244 $ — $ 197,592 Obligations of states and municipalities 370 12,935 317,052 207,837 538,194 Residential mortgage backed - agency 42 23,836 23,462 — 47,340 Residential mortgage backed - non-agency 58,019 160,253 95,481 9,766 323,519 Commercial mortgage backed - agency 196 31,090 6,272 — 37,558 Commercial mortgage backed - non-agency 8,562 158,575 5,149 — 172,286 Asset-backed 8,765 36,411 31,435 — 76,611 Other — — 9,500 — 9,500 $ 105,665 $ 463,737 $ 615,595 $ 217,603 $ 1,402,600 June 30, 2023 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,835 $ 35,757 $ 110,805 $ — $ 175,397 Obligations of states and municipalities 370 11,884 279,357 164,251 455,862 Residential mortgage backed - agency 42 22,857 19,091 — 41,990 Residential mortgage backed - non-agency 55,532 150,656 80,996 8,920 296,104 Commercial mortgage backed - agency 196 29,955 5,935 — 36,086 Commercial mortgage backed - non-agency 8,367 151,823 4,117 — 164,307 Asset-backed 8,661 35,210 30,608 — 74,479 Other — 7,965 — 7,965 $ 102,003 $ 438,142 $ 538,874 $ 173,171 $ 1,252,190 At June 30, 2023, and December 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in any amount greater than 10% of shareholders’ equity. The following table shows the gross unrealized losses and fair value of the Company’s securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2023, and December 31, 2022. AFS securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): June 30, 2023 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ — $ 175,397 $ 22,195 $ 22,195 Obligations of states and municipalities 11,245 291 440,754 82,069 82,360 Residential mortgage backed - agency 602 15 41,387 5,335 5,350 Residential mortgage backed - non-agency 43,562 4,315 251,852 23,113 27,428 Commercial mortgage backed - agency 1,663 145 33,625 1,352 1,497 Commercial mortgage backed - non-agency — — 164,307 7,979 7,979 Asset-backed 10,411 47 60,100 2,088 2,135 Other 6,291 1,209 1,673 326 1,535 $ 73,774 $ 6,022 $ 1,169,095 $ 144,457 $ 150,479 December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825 The Company is required to conduct an impairment evaluation on AFS securities to determine whether the Company has the intent to sell the security or it is more likely than not that it will be required to sell the security before recovery. If these situations apply, the guidance requires the Company to reduce the security's amortized cost basis down to its fair value through earnings. The Company also evaluates the unrealized losses on AFS securities to determine if a security's decline in fair value below its amortized cost basis is due to credit factors. The evaluation is based upon factors such as the creditworthiness of the underlying borrowers, performance of the underlying collateral, if applicable, and the level of credit support in the security structure. Management also evaluates other factors and circumstances that may be indicative of a decline in the fair value of the security due to a credit factor. This includes, but is not limited to, an evaluation of the type of security, length of time and extent to which the fair value has been less than cost and near-term prospects of the issuer. If this assessment indicates that a credit loss exists, the present value of the expected cash flows of the security is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost, an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis under the CECL standard, and declines due to non-credit factors are recorded in accumulated other comprehensive income (“AOCI”), net of taxes. If a credit loss is recognized in earnings, subsequent improvements to the expectation of collectability will be recognized through the ACL. If the fair value of the security increases above its amortized cost, the unrealized gain will be recorded in accumulated other comprehensive income, net of taxes, in the consolidated statements of financial condition. Prior to implementation of the CECL standard, unrealized losses caused by a credit event would require the direct write-down of the AFS security through the other-than-temporary impairment approach. The Company did not record an ACL on the AFS securities at June 30, 2023. The Company considers the unrealized losses on the AFS securities to be related to fluctuations in market conditions, primarily interest rates, and not reflective of deterioration in credit. The Company had 402 securities in an unrealized loss position as of June 30, 2023. The Company has evaluated AFS securities in an unrealized loss position for credit related impairment at June 30, 2023, and concluded no impairment existed based on a combination of factors, which included: (1) the securities are of high credit quality, (2) unrealized losses are primarily the result of market volatility and increases in market interest rates, (3) the contractual terms of the investments do not permit the issuer(s) to settle the securities at a price less than the par value of each investment, (4) issuers continue to make timely principal and interest payments, and (5) the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis. As such, there was no ACL on AFS securities at June 30, 2023. Securities of U.S. Treasury and Federal Agencies and Federal Agency Mortgage (Residential and Commercial) Backed Securities At June 30, 2023, the unrealized losses associated with 12 U.S. Treasuries and Government Agency securities, 16 Residential Mortgage Backed – Agency securities, and 16 Commercial Mortgage Backed – Agency securities were generally driven by changes in interest rates and not due to credit losses given the explicit or implicit guarantees provided by the U.S. government. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at June 30, 2023. Securities of U.S. States and Municipalities At June 30, 2023, the unrealized losses associated with 202 State and Municipal securities were primarily caused by changes in interest rates and not the credit quality of the securities. These securities are investment grade and were generally underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. These securities will continue to be monitored as part of our ongoing impairment analysis but are expected to perform, even if the rating agencies reduce the credit rating of the bond insurers. As a result, we expect to recover the entire amortized cost basis of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at June 30, 2023. Residential & Commercial Mortgage Backed – Non-Agency Securities At June 30, 2023, the unrealized losses associated with 96 Residential Mortgage Backed – Non-Agency securities and 34 Commercial Mortgage Backed – Non-Agency securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at June 30, 2023. Asset-Backed Securities At June 30, 2023, the unrealized losses associated with 23 Asset-Backed securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at June 30, 2023. Other Securities At June 30, 2023, the unrealized losses associated with 3 securities were primarily driven by interest rates and not the credit quality of the securities. These investments were underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. Based on our assessment of the expected credit losses, we expect to recover the entire amortized cost basis of the securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at June 30, 2023. Restricted stock, at cost The Company’s investment in Federal Home Loan Bank (“FHLB”) stock totaled $3.9 million and $16.4 million at June 30, 2023, and December 31, 2022, respectively. FHLB stock is generally viewed as a long-term investment and as a restricted investment security, which is carried at cost, because there is no market for the stock other than the FHLB or member institutions. Therefore, when evaluating FHLB stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider this investment to be impaired at June 30, 2023, and no impairment has been recognized. FHLB stock is included in a separate line item Restricted stock, at cost on the Consolidated Balance Sheets and is not part of the Company’s AFS securities portfolio. The Company’s Restricted stock line item on the Consolidated Balance Sheets also includes an investment in Community Bankers’ Bank, totaling $50 thousand at both June 30, 2023, and December 31, 2022, which is carried at cost and is not impaired at June 30, 2023.	Securities The carrying amount of securities and their approximate fair values at December 31, 2022 and 2021, are summarized as follows (in thousands): December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed — agency 57,883 14 4,836 53,061 Residential mortgage backed — non-agency 365,983 2 26,690 339,295 Commercial mortgage backed — agency 61,810 75 1,952 59,933 Commercial mortgage backed — non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 185,085 $ 98 $ 742 $ 184,441 Obligations of states and municipalities 651,000 20,285 5,718 665,567 Residential mortgage backed — agency 63,568 372 1,153 62,787 Residential mortgage backed — non-agency 245,794 863 2,349 244,308 Commercial mortgage backed — agency 78,830 411 358 78,883 Commercial mortgage backed — non-agency 170,048 2,492 336 172,204 Asset-backed 192,930 3,127 532 195,525 Other 2,000 — 34 1,966 $ 1,589,255 $ 27,648 $ 11,222 $ 1,605,681 At December 31, 2022 and 2021, securities with amortized costs of $637.1 million and $498.1 million, respectively, and with estimated fair values of $552.5 million and $518.6 million, respectively, were pledged to secure public deposits and for other purposes required or permitted by law. The gross realized gains, realized losses, and proceeds from the sales of securities for the years ended December 31, 2022, 2021 and 2020 were as follows (in thousands): 2022 2021 2020 Gross realized gains $ 1,512 $ — $ 1,957 Gross realized losses (1,966) (4) (13) Proceeds from sales of securities 195,907 700 49,233 The tax benefit (provision) related to these net realized gains and losses for 2022, 2021, and 2020 was $95.3 thousand, $0.8 thousand, and $(408.2) thousand, respectively. The maturities of securities available-for-sale at December 31, 2022, were as follows (in thousands): (Expected maturities of securities not due at a single maturity date are based on average life at estimated prepayment speed. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties). December 31, 2022 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 39,854 $ 158,300 $ — $ 198,154 Obligations of states and municipalities 5,235 1,563 277,320 266,472 550,590 Residential mortgage backed - agency 42 34,100 23,741 — 57,883 Residential mortgage backed - non-agency 28,203 265,190 68,172 4,418 365,983 Commercial mortgage backed - agency 415 56,622 4,773 — 61,810 Commercial mortgage backed - non-agency 32,979 153,572 5,158 — 191,709 Asset-backed 3,255 33,495 65,041 — 101,791 Other — — 9,500 — 9,500 $ 70,129 $ 584,396 $ 612,005 $ 270,890 $ 1,537,420 December 31, 2022 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 37,439 $ 137,554 $ — $ 174,993 Obligations of states and municipalities 5,246 1,529 240,753 206,379 453,907 Residential mortgage backed - agency 42 33,128 19,891 — 53,061 Residential mortgage backed - non-agency 27,182 247,662 60,448 4,003 339,295 Commercial mortgage backed - agency 414 54,960 4,559 — 59,933 Commercial mortgage backed - non-agency 32,400 146,812 4,087 — 183,299 Asset-backed 3,165 32,592 62,869 — 98,626 Other — — 8,643 — 8,643 $ 68,449 $ 554,122 $ 538,804 $ 210,382 $ 1,371,757 At year-end 2022 and 2021, there were no holdings of securities of any one issuer, other than U.S. Government and its agencies, in any amount greater than 10% of shareholders’ equity. The following table shows the gross unrealized losses and fair value of the Company’s securities with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2022 and 2021. Available-for-sale securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825 December 31, 2021 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 134,379 $ 392 $ 10,082 $ 350 $ 742 Obligations of states and municipalities 218,099 4,938 14,521 780 5,718 Residential mortgage backed - agency 48,167 1,153 — — 1,153 Residential mortgage backed - non-agency 149,640 1,624 31,024 725 2,349 Commercial mortgage backed - agency 33,703 274 6,456 84 358 Commercial mortgage backed - non-agency 36,307 321 4,137 15 336 Asset-backed 50,005 402 17,372 130 532 Other 1,966 34 — — 34 $ 672,266 $ 9,138 $ 83,592 $ 2,084 $ 11,222 The Company determines whether unrealized losses are temporary in nature in accordance with U.S. GAAP and the evaluation is based upon factors such as the creditworthiness of the underlying borrowers, performance of the underlying collateral, if applicable, and the level of credit support in the security structure. The Company also evaluates other factors and circumstances that may be indicative of an OTTI condition. This evaluation includes, but is not limited to, an evaluation of the type of security, length of time and extent to which the fair value has been less than cost, and near-term prospects of the issuer. FASB ASC 320-10 requires the Company to assess if OTTI exists by considering whether the Company has the intent to sell the security or, more likely than not, will be required to sell the security before recovery. If either of these situations applies, the guidance requires the Company to record an OTTI charge to earnings on debt securities for the difference between the amortized cost basis and the fair value of the security. If neither of these situations applies, the Company will assess whether it is expected to recover the entire amortized costs basis of the security. If the Company is not expected to recover the entire amortized cost basis of the security, we will bifurcate the identified OTTI into a credit loss component and a component representing loss related to other factors. As of December 31, 2022, the Company had no cumulative OTTI. There were no OTTI charges in earnings as a result of credit losses on investments in the years ended December 31, 2022, 2021 and 2020. Securities of U.S. Treasury and Federal Agencies and Federal Agency Mortgage (Residential and Commercial) Backed Securities At December 31, 2022, the unrealized losses associated with 12 U.S. Treasuries and Government Agency securities, 19 Residential Mortgage Backed – Agency securities, and 31 Commercial Mortgage Backed – Agency securities were generally driven by changes in interest rates and not due to credit losses given the explicit or implicit guarantees provided by the U.S. government. Securities of U.S. States and Municipalities At December 31, 2022, the unrealized losses associated with 230 State and Municipal securities were primarily caused by changes in interest rates and not the credit quality of the securities. These investments are investment grade and were generally underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. These securities will continue to be monitored as part of our ongoing impairment analysis but are expected to perform, even if the rating agencies reduce the credit rating of the bond insurers. As a result, we expect to recover the entire amortized cost basis of these securities. Residential & Commercial Mortgage Backed – Non-Agency Securities At December 31, 2022, the unrealized losses associated with 109 Residential Mortgage Backed – Non-Agency securities and 36 Commercial Mortgage Backed – Non-Agency securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Asset-Backed Securities At December 31, 2022, the unrealized losses associated with 28 Asset-Backed securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Other Securities At December 31, 2022, the unrealized losses associated with 3 securities were primarily driven by interest rates and not the credit quality of the securities. These investments are underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. Based on our assessment of the expected credit losses, we expect to recover the entire amortized cost basis of the securities. Restricted stock, at cost The Company’s investment in FHLB stock totaled $16.4 million and $12.0 million at December 31, 2022 and 2021, respectively. FHLB stock is generally viewed as a long-term investment and as a restricted investment security, which is carried at cost, because there is no market for the stock other than the FHLB or member institutions. Therefore, when evaluating FHLB stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider this investment to be other-than-temporarily impaired at December 31, 2022, and no impairment has been recognized. FHLB stock is included in a separate line item (Restricted stock, at cost) and is not part of the Company’s investment securities portfolio. The Company’s restricted securities also include an investment in Community Bankers’ Bank, totaling $50 thousand at both December 31, 2022 and 2021, which is carried at cost.

Securities_2_3

Securities	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Securities	Securities The carrying amount of AFS securities and their approximate fair values at March 31, 2023, and December 31, 2022, are summarized as follows (in thousands): March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 197,875 $ — $ 19,456 $ 178,419 Obligations of states and municipalities 547,896 44 79,578 468,362 Residential mortgage backed - agency 56,991 20 4,341 52,670 Residential mortgage backed - non-agency 349,123 12 27,985 321,150 Commercial mortgage backed - agency 59,409 58 1,635 57,832 Commercial mortgage backed - non-agency 190,542 97 7,414 183,225 Asset-backed 95,317 101 2,819 92,599 Other 9,500 — 972 8,528 $ 1,506,653 $ 332 $ 144,200 $ 1,362,785 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed - agency 57,883 14 4,836 53,061 Residential mortgage backed - non-agency 365,983 2 26,690 339,295 Commercial mortgage backed - agency 61,810 75 1,952 59,933 Commercial mortgage backed - non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 At March 31, 2023, and December 31, 2022, AFS securities with amortized costs of $799.3 million and $637.1 million, respectively, and with estimated fair values of $714.5 million and $552.5 million, respectively, were pledged to serve as collateral for secured borrowings, derivative exposures, or to secure public deposits as required or permitted by law. As of March 31, 2023, the Company entered into a fair value hedge using the portfolio layer method that is described in further detail within Note 9 - Derivatives . The gross realized gains, realized losses, and proceeds from the sales of securities for the three months ended March 31, 2023, and March 31, 2022, were as follows (in thousands): March 31, 2023 March 31, 2022 Gross realized gains $ — $ 727 Gross realized losses — (623) Proceeds from sales of securities — 87,033 The tax benefit (provision) related to these net realized gains and losses for March 31, 2023, and March 31, 2022, was zero, and $21.8 thousand, respectively. The maturities of AFS securities at March 31, 2023, were as follows (in thousands): (Expected maturities of securities not due at a single maturity date are based on average life at estimated prepayment speed. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties). March 31, 2023 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 59,546 $ 138,329 $ — $ 197,875 Obligations of states and municipalities 370 10,947 332,562 204,017 547,896 Residential mortgage backed - agency 42 33,446 23,503 — 56,991 Residential mortgage backed - non-agency 32,336 209,368 92,763 14,656 349,123 Commercial mortgage backed - agency 233 52,796 6,380 — 59,409 Commercial mortgage backed - non-agency 32,882 152,507 5,153 — 190,542 Asset-backed 2,296 51,621 41,400 — 95,317 Other — — 9,500 — 9,500 $ 68,159 $ 570,231 $ 649,590 $ 218,673 $ 1,506,653 March 31, 2023 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 55,500 $ 122,919 $ — $ 178,419 Obligations of states and municipalities 370 10,204 296,965 160,823 468,362 Residential mortgage backed - agency 42 32,561 20,067 — 52,670 Residential mortgage backed - non-agency 31,027 198,301 78,487 13,335 321,150 Commercial mortgage backed - agency 232 51,524 6,076 — 57,832 Commercial mortgage backed - non-agency 32,283 146,728 4,214 — 183,225 Asset-backed 2,238 49,966 40,395 — 92,599 Other — 8,528 — 8,528 $ 66,192 $ 544,784 $ 577,651 $ 174,158 $ 1,362,785 At March 31, 2023, and December 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in any amount greater than 10% of shareholders’ equity. The following table shows the gross unrealized losses and fair value of the Company’s securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2023, and December 31, 2022. AFS securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): March 31, 2023 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ — $ 178,419 $ 19,456 $ 19,456 Obligations of states and municipalities 17,774 330 444,269 79,248 79,578 Residential mortgage backed - agency 616 10 42,382 4,331 4,341 Residential mortgage backed - non-agency 109,454 7,318 210,963 20,667 27,985 Commercial mortgage backed - agency 1,688 124 54,441 1,511 1,635 Commercial mortgage backed - non-agency 10,970 136 160,432 7,278 7,414 Asset-backed 21,586 187 61,972 2,632 2,819 Other 6,775 725 1,753 247 972 $ 168,863 $ 8,830 $ 1,154,631 $ 135,370 $ 144,200 December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825 The Company is required to conduct an impairment evaluation on AFS securities to determine whether the Company has the intent to sell the security or it is more likely than not that it will be required to sell the security before recovery. If these situations apply, the guidance requires the Company to reduce the security's amortized cost basis down to its fair value through earnings. The Company also evaluates the unrealized losses on AFS securities to determine if a security's decline in fair value below its amortized cost basis is due to credit factors. The evaluation is based upon factors such as the creditworthiness of the underlying borrowers, performance of the underlying collateral, if applicable, and the level of credit support in the security structure. Management also evaluates other factors and circumstances that may be indicative of a decline in the fair value of the security due to a credit factor. This includes, but is not limited to, an evaluation of the type of security, length of time and extent to which the fair value has been less than cost and near-term prospects of the issuer. If this assessment indicates that a credit loss exists, the present value of the expected cash flows of the security is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost, an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis under the CECL standard, and declines due to non-credit factors are recorded in accumulated other comprehensive income (“AOCI”), net of taxes. If a credit loss is recognized in earnings, subsequent improvements to the expectation of collectability will be recognized through the ACL. If the fair value of the security increases above its amortized cost, the unrealized gain will be recorded in accumulated other comprehensive income, net of taxes, on the consolidated statements of financial condition. Prior to implementation of the CECL standard, unrealized losses caused by a credit event would require the direct write-down of the AFS security through the other-than-temporary impairment approach. The Company did not record an ACL on the AFS securities at March 31, 2023, or upon implementation of CECL on January 1, 2023. As of both periods, the Company considers the unrealized losses on the AFS securities to be related to fluctuations in market conditions, primarily interest rates, and not reflective of deterioration in credit. The Company had 451 securities in an unrealized loss position as of March 31, 2023. The Company has evaluated available-for-sale securities in an unrealized loss position for credit related impairment at March 31, 2023, and concluded no impairment existed based on a combination of factors, which included: (1) the securities are of high credit quality, (2) unrealized losses are primarily the result of market volatility and increases in market interest rates, (3) the contractual terms of the investments do not permit the issuer(s) to settle the securities at a price less than the par value of each investment, (4) issuers continue to make timely principal and interest payments, and (5) the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis. As such, there was no ACL on available-for-sale securities at March 31, 2023. Securities of U.S. Treasury and Federal Agencies and Federal Agency Mortgage (Residential and Commercial) Backed Securities At March 31, 2023, the unrealized losses associated with 12 U.S. Treasuries and Government Agency securities, 19 Residential Mortgage Backed – Agency securities, and 31 Commercial Mortgage Backed – Agency securities were generally driven by changes in interest rates and not due to credit losses given the explicit or implicit guarantees provided by the U.S. government. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Securities of U.S. States and Municipalities At March 31, 2023, the unrealized losses associated with 214 State and Municipal securities were primarily caused by changes in interest rates and not the credit quality of the securities. These securities are investment grade and were generally underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. These securities will continue to be monitored as part of our ongoing impairment analysis but are expected to perform, even if the rating agencies reduce the credit rating of the bond insurers. As a result, we expect to recover the entire amortized cost basis of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Residential & Commercial Mortgage Backed – Non-Agency Securities At March 31, 2023, the unrealized losses associated with 108 Residential Mortgage Backed – Non-Agency securities and 36 Commercial Mortgage Backed – Non-Agency securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Asset-Backed Securities At March 31, 2023, the unrealized losses associated with 28 Asset-Backed securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Other Securities At March 31, 2023, the unrealized losses associated with 3 securities were primarily driven by interest rates and not the credit quality of the securities. These investments are underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. Based on our assessment of the expected credit losses, we expect to recover the entire amortized cost basis of the securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at March 31, 2023. Restricted stock, at cost The Company’s investment in Federal Home Loan Bank (“FHLB”) stock totaled $9.1 million and $16.4 million at March 31, 2023, and December 31, 2022, respectively. FHLB stock is generally viewed as a long-term investment and as a restricted investment security, which is carried at cost, because there is no market for the stock other than the FHLB or member institutions. Therefore, when evaluating FHLB stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does	Securities The carrying amount of AFS securities and their approximate fair values at June 30, 2023, and December 31, 2022, are summarized as follows (in thousands): June 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 197,592 $ — $ 22,195 $ 175,397 Obligations of states and municipalities 538,194 28 82,360 455,862 Residential mortgage backed - agency 47,340 — 5,350 41,990 Residential mortgage backed - non-agency 323,519 13 27,428 296,104 Commercial mortgage backed - agency 37,558 25 1,497 36,086 Commercial mortgage backed - non-agency 172,286 — 7,979 164,307 Asset-backed 76,611 3 2,135 74,479 Other 9,500 — 1,535 7,965 $ 1,402,600 $ 69 $ 150,479 $ 1,252,190 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed - agency 57,883 14 4,836 53,061 Residential mortgage backed - non-agency 365,983 2 26,690 339,295 Commercial mortgage backed - agency 61,810 75 1,952 59,933 Commercial mortgage backed - non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 At June 30, 2023, and December 31, 2022, AFS securities with amortized costs of $834.8 million and $637.1 million, respectively, and with estimated fair values of $735.5 million and $552.5 million, respectively, were pledged to serve as collateral for secured borrowings, derivative exposures, or to secure public deposits as required or permitted by law. The gross realized gains, realized losses, and proceeds from the sales of securities for the six months ended June 30, 2023, and June 30, 2022, were as follows (in thousands): June 30, 2023 June 30, 2022 Gross realized gains $ 773 $ 727 Gross realized losses (884) (623) Proceeds from sales of securities 77,780 87,033 The tax benefit (provision) related to these net realized gains and losses for June 30, 2023, and June 30, 2022, was $23.3 thousand, and ($21.8) thousand, respectively. The maturities of AFS securities at June 30, 2023, were as follows (in thousands): (Expected maturities of securities not due at a single maturity date are based on average life at estimated prepayment speed. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties). June 30, 2023 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ 29,711 $ 40,637 $ 127,244 $ — $ 197,592 Obligations of states and municipalities 370 12,935 317,052 207,837 538,194 Residential mortgage backed - agency 42 23,836 23,462 — 47,340 Residential mortgage backed - non-agency 58,019 160,253 95,481 9,766 323,519 Commercial mortgage backed - agency 196 31,090 6,272 — 37,558 Commercial mortgage backed - non-agency 8,562 158,575 5,149 — 172,286 Asset-backed 8,765 36,411 31,435 — 76,611 Other — — 9,500 — 9,500 $ 105,665 $ 463,737 $ 615,595 $ 217,603 $ 1,402,600 June 30, 2023 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,835 $ 35,757 $ 110,805 $ — $ 175,397 Obligations of states and municipalities 370 11,884 279,357 164,251 455,862 Residential mortgage backed - agency 42 22,857 19,091 — 41,990 Residential mortgage backed - non-agency 55,532 150,656 80,996 8,920 296,104 Commercial mortgage backed - agency 196 29,955 5,935 — 36,086 Commercial mortgage backed - non-agency 8,367 151,823 4,117 — 164,307 Asset-backed 8,661 35,210 30,608 — 74,479 Other — 7,965 — 7,965 $ 102,003 $ 438,142 $ 538,874 $ 173,171 $ 1,252,190 At June 30, 2023, and December 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in any amount greater than 10% of shareholders’ equity. The following table shows the gross unrealized losses and fair value of the Company’s securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2023, and December 31, 2022. AFS securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): June 30, 2023 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ — $ 175,397 $ 22,195 $ 22,195 Obligations of states and municipalities 11,245 291 440,754 82,069 82,360 Residential mortgage backed - agency 602 15 41,387 5,335 5,350 Residential mortgage backed - non-agency 43,562 4,315 251,852 23,113 27,428 Commercial mortgage backed - agency 1,663 145 33,625 1,352 1,497 Commercial mortgage backed - non-agency — — 164,307 7,979 7,979 Asset-backed 10,411 47 60,100 2,088 2,135 Other 6,291 1,209 1,673 326 1,535 $ 73,774 $ 6,022 $ 1,169,095 $ 144,457 $ 150,479 December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825 The Company is required to conduct an impairment evaluation on AFS securities to determine whether the Company has the intent to sell the security or it is more likely than not that it will be required to sell the security before recovery. If these situations apply, the guidance requires the Company to reduce the security's amortized cost basis down to its fair value through earnings. The Company also evaluates the unrealized losses on AFS securities to determine if a security's decline in fair value below its amortized cost basis is due to credit factors. The evaluation is based upon factors such as the creditworthiness of the underlying borrowers, performance of the underlying collateral, if applicable, and the level of credit support in the security structure. Management also evaluates other factors and circumstances that may be indicative of a decline in the fair value of the security due to a credit factor. This includes, but is not limited to, an evaluation of the type of security, length of time and extent to which the fair value has been less than cost and near-term prospects of the issuer. If this assessment indicates that a credit loss exists, the present value of the expected cash flows of the security is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost, an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis under the CECL standard, and declines due to non-credit factors are recorded in accumulated other comprehensive income (“AOCI”), net of taxes. If a credit loss is recognized in earnings, subsequent improvements to the expectation of collectability will be recognized through the ACL. If the fair value of the security increases above its amortized cost, the unrealized gain will be recorded in accumulated other comprehensive income, net of taxes, in the consolidated statements of financial condition. Prior to implementation of the CECL standard, unrealized losses caused by a credit event would require the direct write-down of the AFS security through the other-than-temporary impairment approach. The Company did not record an ACL on the AFS securities at June 30, 2023. The Company considers the unrealized losses on the AFS securities to be related to fluctuations in market conditions, primarily interest rates, and not reflective of deterioration in credit. The Company had 402 securities in an unrealized loss position as of June 30, 2023. The Company has evaluated AFS securities in an unrealized loss position for credit related impairment at June 30, 2023, and concluded no impairment existed based on a combination of factors, which included: (1) the securities are of high credit quality, (2) unrealized losses are primarily the result of market volatility and increases in market interest rates, (3) the contractual terms of the investments do not permit the issuer(s) to settle the securities at a price less than the par value of each investment, (4) issuers continue to make timely principal and interest payments, and (5) the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its amortized cost basis. As such, there was no ACL on AFS securities at June 30, 2023. Securities of U.S. Treasury and Federal Agencies and Federal Agency Mortgage (Residential and Commercial) Backed Securities At June 30, 2023, the unrealized losses associated with 12 U.S. Treasuries and Government Agency securities, 16 Residential Mortgage Backed – Agency securities, and 16 Commercial Mortgage Backed – Agency securities were generally driven by changes in interest rates and not due to credit losses given the explicit or implicit guarantees provided by the U.S. government. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at June 30, 2023. Securities of U.S. States and Municipalities At June 30, 2023, the unrealized losses associated with 202 State and Municipal securities were primarily caused by changes in interest rates and not the credit quality of the securities. These securities are investment grade and were generally underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. These securities will continue to be monitored as part of our ongoing impairment analysis but are expected to perform, even if the rating agencies reduce the credit rating of the bond insurers. As a result, we expect to recover the entire amortized cost basis of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at June 30, 2023. Residential & Commercial Mortgage Backed – Non-Agency Securities At June 30, 2023, the unrealized losses associated with 96 Residential Mortgage Backed – Non-Agency securities and 34 Commercial Mortgage Backed – Non-Agency securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at June 30, 2023. Asset-Backed Securities At June 30, 2023, the unrealized losses associated with 23 Asset-Backed securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at June 30, 2023. Other Securities At June 30, 2023, the unrealized losses associated with 3 securities were primarily driven by interest rates and not the credit quality of the securities. These investments were underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. Based on our assessment of the expected credit losses, we expect to recover the entire amortized cost basis of the securities. Therefore, the Company has concluded that the unrealized losses for these securities do not require an ACL at June 30, 2023. Restricted stock, at cost The Company’s investment in Federal Home Loan Bank (“FHLB”) stock totaled $3.9 million and $16.4 million at June 30, 2023, and December 31, 2022, respectively. FHLB stock is generally viewed as a long-term investment and as a restricted investment security, which is carried at cost, because there is no market for the stock other than the FHLB or member institutions. Therefore, when evaluating FHLB stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider this investment to be impaired at June 30, 2023, and no impairment has been recognized. FHLB stock is included in a separate line item Restricted stock, at cost on the Consolidated Balance Sheets and is not part of the Company’s AFS securities portfolio. The Company’s Restricted stock line item on the Consolidated Balance Sheets also includes an investment in Community Bankers’ Bank, totaling $50 thousand at both June 30, 2023, and December 31, 2022, which is carried at cost and is not impaired at June 30, 2023.	Securities The carrying amount of securities and their approximate fair values at December 31, 2022 and 2021, are summarized as follows (in thousands): December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed — agency 57,883 14 4,836 53,061 Residential mortgage backed — non-agency 365,983 2 26,690 339,295 Commercial mortgage backed — agency 61,810 75 1,952 59,933 Commercial mortgage backed — non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 185,085 $ 98 $ 742 $ 184,441 Obligations of states and municipalities 651,000 20,285 5,718 665,567 Residential mortgage backed — agency 63,568 372 1,153 62,787 Residential mortgage backed — non-agency 245,794 863 2,349 244,308 Commercial mortgage backed — agency 78,830 411 358 78,883 Commercial mortgage backed — non-agency 170,048 2,492 336 172,204 Asset-backed 192,930 3,127 532 195,525 Other 2,000 — 34 1,966 $ 1,589,255 $ 27,648 $ 11,222 $ 1,605,681 At December 31, 2022 and 2021, securities with amortized costs of $637.1 million and $498.1 million, respectively, and with estimated fair values of $552.5 million and $518.6 million, respectively, were pledged to secure public deposits and for other purposes required or permitted by law. The gross realized gains, realized losses, and proceeds from the sales of securities for the years ended December 31, 2022, 2021 and 2020 were as follows (in thousands): 2022 2021 2020 Gross realized gains $ 1,512 $ — $ 1,957 Gross realized losses (1,966) (4) (13) Proceeds from sales of securities 195,907 700 49,233 The tax benefit (provision) related to these net realized gains and losses for 2022, 2021, and 2020 was $95.3 thousand, $0.8 thousand, and $(408.2) thousand, respectively. The maturities of securities available-for-sale at December 31, 2022, were as follows (in thousands): (Expected maturities of securities not due at a single maturity date are based on average life at estimated prepayment speed. Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties). December 31, 2022 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 39,854 $ 158,300 $ — $ 198,154 Obligations of states and municipalities 5,235 1,563 277,320 266,472 550,590 Residential mortgage backed - agency 42 34,100 23,741 — 57,883 Residential mortgage backed - non-agency 28,203 265,190 68,172 4,418 365,983 Commercial mortgage backed - agency 415 56,622 4,773 — 61,810 Commercial mortgage backed - non-agency 32,979 153,572 5,158 — 191,709 Asset-backed 3,255 33,495 65,041 — 101,791 Other — — 9,500 — 9,500 $ 70,129 $ 584,396 $ 612,005 $ 270,890 $ 1,537,420 December 31, 2022 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 37,439 $ 137,554 $ — $ 174,993 Obligations of states and municipalities 5,246 1,529 240,753 206,379 453,907 Residential mortgage backed - agency 42 33,128 19,891 — 53,061 Residential mortgage backed - non-agency 27,182 247,662 60,448 4,003 339,295 Commercial mortgage backed - agency 414 54,960 4,559 — 59,933 Commercial mortgage backed - non-agency 32,400 146,812 4,087 — 183,299 Asset-backed 3,165 32,592 62,869 — 98,626 Other — — 8,643 — 8,643 $ 68,449 $ 554,122 $ 538,804 $ 210,382 $ 1,371,757 At year-end 2022 and 2021, there were no holdings of securities of any one issuer, other than U.S. Government and its agencies, in any amount greater than 10% of shareholders’ equity. The following table shows the gross unrealized losses and fair value of the Company’s securities with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2022 and 2021. Available-for-sale securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825 December 31, 2021 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 134,379 $ 392 $ 10,082 $ 350 $ 742 Obligations of states and municipalities 218,099 4,938 14,521 780 5,718 Residential mortgage backed - agency 48,167 1,153 — — 1,153 Residential mortgage backed - non-agency 149,640 1,624 31,024 725 2,349 Commercial mortgage backed - agency 33,703 274 6,456 84 358 Commercial mortgage backed - non-agency 36,307 321 4,137 15 336 Asset-backed 50,005 402 17,372 130 532 Other 1,966 34 — — 34 $ 672,266 $ 9,138 $ 83,592 $ 2,084 $ 11,222 The Company determines whether unrealized losses are temporary in nature in accordance with U.S. GAAP and the evaluation is based upon factors such as the creditworthiness of the underlying borrowers, performance of the underlying collateral, if applicable, and the level of credit support in the security structure. The Company also evaluates other factors and circumstances that may be indicative of an OTTI condition. This evaluation includes, but is not limited to, an evaluation of the type of security, length of time and extent to which the fair value has been less than cost, and near-term prospects of the issuer. FASB ASC 320-10 requires the Company to assess if OTTI exists by considering whether the Company has the intent to sell the security or, more likely than not, will be required to sell the security before recovery. If either of these situations applies, the guidance requires the Company to record an OTTI charge to earnings on debt securities for the difference between the amortized cost basis and the fair value of the security. If neither of these situations applies, the Company will assess whether it is expected to recover the entire amortized costs basis of the security. If the Company is not expected to recover the entire amortized cost basis of the security, we will bifurcate the identified OTTI into a credit loss component and a component representing loss related to other factors. As of December 31, 2022, the Company had no cumulative OTTI. There were no OTTI charges in earnings as a result of credit losses on investments in the years ended December 31, 2022, 2021 and 2020. Securities of U.S. Treasury and Federal Agencies and Federal Agency Mortgage (Residential and Commercial) Backed Securities At December 31, 2022, the unrealized losses associated with 12 U.S. Treasuries and Government Agency securities, 19 Residential Mortgage Backed – Agency securities, and 31 Commercial Mortgage Backed – Agency securities were generally driven by changes in interest rates and not due to credit losses given the explicit or implicit guarantees provided by the U.S. government. Securities of U.S. States and Municipalities At December 31, 2022, the unrealized losses associated with 230 State and Municipal securities were primarily caused by changes in interest rates and not the credit quality of the securities. These investments are investment grade and were generally underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. These securities will continue to be monitored as part of our ongoing impairment analysis but are expected to perform, even if the rating agencies reduce the credit rating of the bond insurers. As a result, we expect to recover the entire amortized cost basis of these securities. Residential & Commercial Mortgage Backed – Non-Agency Securities At December 31, 2022, the unrealized losses associated with 109 Residential Mortgage Backed – Non-Agency securities and 36 Commercial Mortgage Backed – Non-Agency securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Asset-Backed Securities At December 31, 2022, the unrealized losses associated with 28 Asset-Backed securities were generally driven by changes in interest rates, credit spreads, and projected collateral losses. We assess for credit impairment by estimating the present value of expected cash flows. The key assumptions for determining expected cash flows include default rates, loss severities, and/or prepayment rates. Based on our assessment of the expected credit losses and the credit enhancement level of the securities, we expect to recover the entire amortized cost of these securities. Other Securities At December 31, 2022, the unrealized losses associated with 3 securities were primarily driven by interest rates and not the credit quality of the securities. These investments are underwritten in accordance with our own investment standards prior to the decision to purchase, without relying on a bond insurer’s guarantee in making the investment decision. Based on our assessment of the expected credit losses, we expect to recover the entire amortized cost basis of the securities. Restricted stock, at cost The Company’s investment in FHLB stock totaled $16.4 million and $12.0 million at December 31, 2022 and 2021, respectively. FHLB stock is generally viewed as a long-term investment and as a restricted investment security, which is carried at cost, because there is no market for the stock other than the FHLB or member institutions. Therefore, when evaluating FHLB stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider this investment to be other-than-temporarily impaired at December 31, 2022, and no impairment has been recognized. FHLB stock is included in a separate line item (Restricted stock, at cost) and is not part of the Company’s investment securities portfolio. The Company’s restricted securities also include an investment in Community Bankers’ Bank, totaling $50 thousand at both December 31, 2022 and 2021, which is carried at cost.

Loans

Loans	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Receivables [Abstract]
Loans	Loans The Company’s loan portfolio segments, as reported in the tables below, include (i) commercial real estate (ii) owner-occupied commercial real estate (iii) acquisition, construction & development (iv) commercial & industrial (v) single family residential (1-4 units) and (vi) consumer non-real estate and other. The risks associated with lending activities differ among the various loan segments and are subject to the impact of changes in interest rates, market conditions of collateral securing the loans, and general economic conditions. • Commercial real estate loans carry risk associated with either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. Other risk factors include the credit-worthiness of the sponsor and the value of the collateral. • Owner-occupied commercial real estate loans carry risk associated with the operations of the business that occupies the property and the value of the collateral. • Acquisition, construction and development loans carry risk associated with the credit-worthiness of the borrower, project completion within budget, sale after completion, and the value of the collateral. • Commercial & industrial loans carry the risk associated with the operations of the business and the value of the collateral, if any. • Single family residential (1-4 units) loans for consumer purposes carry risk associated with the continued credit-worthiness of the borrower and the value of the collateral. Single family residential (1-4 units) loans for investment purpose carry risk associated with the continued credit-worthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. • Consumer non-real estate and other loans carry risk associated with the credit-worthiness of the borrower and the value of the collateral, if any. Loan balances at March 31, 2023, and December 31, 2022, by portfolio segment were as follows (in thousands): March 31, 2023 December 31, 2022 Commercial real estate $ 1,154,210 $ 1,109,315 Owner-occupied commercial real estate 125,657 127,114 Acquisition, construction & development 99,886 94,450 Commercial & industrial 50,101 53,514 Single family residential (1-4 units) 518,775 499,362 Consumer non-real estate and other 3,109 3,466 1,951,738 1,887,221 Allowance for credit losses (25,704) (21,039) Loans, net $ 1,926,034 $ 1,866,182	Loans The Company’s loan portfolio segments, as reported in the tables below, include (i) commercial real estate (ii) owner-occupied commercial real estate (iii) acquisition, construction & development (iv) commercial & industrial (v) single family residential (1-4 units) and (vi) consumer non-real estate and other. The risks associated with lending activities differ among the various loan segments and are subject to the impact of changes in interest rates, market conditions of collateral securing the loans, and general economic conditions. • Commercial real estate loans carry risk associated with either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. Other risk factors include the credit-worthiness of the sponsor and the value of the collateral. • Owner-occupied commercial real estate loans carry risk associated with the operations of the business that occupies the property and the value of the collateral. • Acquisition, construction & development loans carry risk associated with the credit-worthiness of the borrower, project completion within budget, sale after completion, and the value of the collateral. • Commercial & industrial loans carry the risk associated with the operations of the business and the value of the collateral, if any. • Single family residential (1-4 units) loans for consumer purposes carry risk associated with the continued credit-worthiness of the borrower and the value of the collateral. Single family residential (1-4 units) loans for investment purpose carry risk associated with the continued credit-worthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. • Consumer non-real estate and other loans carry risk associated with the credit-worthiness of the borrower and the value of the collateral, if any. Loan balances at June 30, 2023, and December 31, 2022, by portfolio segment were as follows (in thousands): June 30, 2023 December 31, 2022 Commercial real estate $ 1,198,840 $ 1,109,315 Owner-occupied commercial real estate 124,466 127,114 Acquisition, construction & development 92,730 94,450 Commercial & industrial 59,142 53,514 Single family residential (1-4 units) 522,944 499,362 Consumer non-real estate and other 2,847 3,466 2,000,969 1,887,221 Allowance for credit losses (25,919) (21,039) Loans, net $ 1,975,050 $ 1,866,182	Loans Loans at year-end by portfolio segment were as follows (in thousands): 2022 2021 Commercial real estate $ 1,109,315 $ 1,031,641 Owner-occupied commercial real estate 127,114 125,613 Acquisition, construction & development 94,450 109,518 Commercial & industrial 53,514 58,818 Single family residential (1-4 units) 499,362 415,594 Consumer non-real estate and other 3,466 3,889 1,887,221 1,745,073 Allowance for loan losses (21,039) (31,709) Loans, net $ 1,866,182 $ 1,713,364 Net deferred loan fees included in the above loan categories totaled $3.3 million and $4.4 million at December 31, 2022 and 2021, respectively. The Company holds $7.9 million and $37.8 million in PPP loans, net of deferred fees and costs as of December 31, 2022 and 2021, respectively. The following table presents the activity in the allowance for loan losses by portfolio segment for each of the years ending December 31, 2022, 2021, and 2020 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Total December 31, 2022 Allowance for loan losses Beginning balance $ 25,112 $ 611 $ 3,369 $ 160 $ 2,434 $ 23 $ 31,709 Provision for (recapture of) loan losses (6,391) 24 (1,287) 298 (239) 129 (7,466) Loans charged-off (3,282) — — (20) — (148) (3,450) Recoveries 38 — — — 184 24 246 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ 21,039 December 31, 2021 Allowance for loan losses Beginning balance $ 23,356 $ 1,196 $ 4,255 $ 68 $ 3,757 $ 65 $ 32,697 Provision for (recapture of) loan losses 1,870 (602) (886) 72 (1,490) 34 (1,002) Loans charged-off (127) — — — (16) (99) (242) Recoveries 13 17 — 20 183 23 256 Total ending allowance balance $ 25,112 $ 611 $ 3,369 $ 160 $ 2,434 $ 23 $ 31,709 December 31, 2020 Allowance for loan losses Beginning balance $ 11,396 $ 2,310 $ 1,697 $ 5,952 $ 2,791 $ 55 $ 24,201 Provision for (recapture of) loan losses 11,946 (1,114) 2,558 (1,752) 945 65 12,648 Loans charged-off — — — (5,858) (44) (94) (5,996) Recoveries 14 — — 1,726 65 39 1,844 Total ending allowance balance $ 23,356 $ 1,196 $ 4,255 $ 68 $ 3,757 $ 65 $ 32,697 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 and 2021 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Total December 31, 2022 Allowance for loan losses Individually evaluated for impairment $ 41 $ 102 $ — $ — $ 96 $ — $ 239 Collectively evaluated for impairment 15,436 533 2,082 438 2,283 28 20,800 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ 21,039 Loan balance: Individually evaluated for impairment $ 331 $ 2,580 $ — $ — $ 6,158 $ — $ 9,069 Collectively evaluated for impairment 1,108,984 124,534 94,450 53,514 493,204 3,466 1,878,152 Total ending loan balance $ 1,109,315 $ 127,114 $ 94,450 $ 53,514 $ 499,362 $ 3,466 $ 1,887,221 December 31, 2021 Allowance for loan losses Individually evaluated for impairment $ 7,558 $ 14 $ — $ — $ 107 $ — $ 7,679 Collectively evaluated for impairment 17,554 597 3,369 160 2,327 23 24,030 Total ending allowance balance $ 25,112 $ 611 $ 3,369 $ 160 $ 2,434 $ 23 $ 31,709 Loan balance: Individually evaluated for impairment $ 20,110 $ 2,843 $ — $ — $ 7,831 $ — $ 30,784 Collectively evaluated for impairment 1,011,531 122,770 109,518 58,818 407,763 3,889 1,714,289 Total ending loan balance $ 1,031,641 $ 125,613 $ 109,518 $ 58,818 $ 415,594 $ 3,889 $ 1,745,073 The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents the aging of the recorded investment in past due loans as of December 31, 2022 and 2021 by portfolio segment: Aging and Nonaccrual Loans (in thousands): December 31, 2022 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,109,315 $ 1,109,315 $ — $ — Owner-occupied commercial real estate — — — — 127,114 127,114 — 1,184 Acquisition, construction & development — — — — 94,450 94,450 — — Commercial & industrial — — — — 53,514 53,514 — — Single family residential (1-4 units) 1,403 154 546 2,103 497,259 499,362 — 4,313 Consumer non-real estate and other — 4 — 4 3,462 3,466 — — Total $ 1,403 $ 158 $ 546 $ 2,107 $ 1,885,114 $ 1,887,221 $ — $ 5,497 December 31, 2021 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ 19,531 $ 19,531 $ 1,012,110 $ 1,031,641 $ — $ 19,594 Owner-occupied commercial real estate 121 — 820 941 124,672 125,613 — 1,399 Acquisition, construction & development — — — — 109,518 109,518 — — Commercial & industrial 21 — — 21 58,797 58,818 — — Single family residential (1-4 units) 365 — 649 1,014 414,580 415,594 — 5,268 Consumer non-real estate and other — — — — 3,889 3,889 — — Total $ 507 $ — $ 21,000 $ 21,507 $ 1,723,566 $ 1,745,073 $ — $ 26,261 The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022 and 2021: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) December 31, 2022 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 1,184 1,394 — 1,291 97 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,151 5,576 — 5,131 213 Consumer non-real estate and other — — — — — Subtotal $ 6,335 $ 6,970 $ — $ 6,422 $ 310 With an allowance recorded: Commercial real estate $ 331 $ 331 $ 41 $ 350 $ 23 Owner-occupied commercial real estate 1,397 1,397 102 1,420 74 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 1,007 1,141 96 1,033 57 Consumer non-real estate and other — — — — — Subtotal $ 2,735 $ 2,869 $ 239 $ 2,803 $ 154 December 31, 2021 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 2,327 2,460 — 2,437 129 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,673 6,230 — 5,848 245 Consumer non-real estate and other — — — — — Subtotal $ 8,000 $ 8,690 $ — $ 8,285 $ 374 With an allowance recorded: Commercial real estate $ 20,110 $ 20,236 $ 7,558 $ 20,130 $ 30 Owner-occupied commercial real estate 516 516 14 530 32 Acquisition, construction & development — — — — — Commercial & industrial — — — — Single family residential (1-4 units) 2,159 2,285 107 2,203 122 Consumer non-real estate and other — — — — — Subtotal $ 22,785 $ 23,037 $ 7,679 $ 22,863 $ 184 __________________ (1) Cash basis interest income recognized approximates interest income recognized as of December 31, 2022 and 2021. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, current economic information and other factors. The Company analyzes loans individually by classifying the loans by credit risk. The Company uses the following definitions for risk ratings: Special Mention: Loans classified as special mention have a potential credit weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard: Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of debt. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and unlikely. Loans by credit quality indicators as of December 31, 2022 and 2021 were as follows (in thousands): Pass Special Mention Substandard Doubtful Loss Total December 31, 2022 Commercial real estate $ 1,011,025 $ 62,907 $ 35,383 $ — $ — $ 1,109,315 Owner-occupied commercial real estate 121,621 1,963 3,530 — — 127,114 Acquisition, construction & development 68,220 836 25,394 — — 94,450 Commercial & industrial 53,273 — 241 — — 53,514 Single family residential (1-4 units) 494,994 55 4,313 — — 499,362 Consumer non-real estate and other 3,466 — — — — 3,466 Total $ 1,752,599 $ 65,761 $ 68,861 $ — $ — $ 1,887,221 Pass Special Mention Substandard Doubtful Loss Total December 31, 2021 Commercial real estate $ 868,787 $ 75,397 $ 87,457 $ — $ — $ 1,031,641 Owner-occupied commercial real estate 122,065 2,149 1,399 — — 125,613 Acquisition, construction & development 72,895 36,623 — — — 109,518 Commercial & industrial 58,763 55 — — — 58,818 Single family residential (1-4 units) 410,227 99 5,268 — — 415,594 Consumer non-real estate and other 3,889 — — — — 3,889 Total $ 1,536,626 $ 114,323 $ 94,124 $ — $ — $ 1,745,073 There were no TDRs during the years ended December 31, 2022, 2021, and 2020, respectively. There were no TDRs that subsequently defaulted within twelve months of restructuring in the years ending, December 31, 2022 and December 31, 2021, respectively. In accordance with regulatory guidance and provisions in the CARES Act to provide relief during the COVID-19 pandemic, the Company has provided short-term concessions to certain borrowers. The Company holds $35.9 million and $173.1 million in loans that were under deferral under the CARES Act provisions as of December 31, 2022 and 2021, respectively. For loans to qualify for COVID-19 related modifications, these loans could not be more than 30 days past due as of December 31, 2019. As such, these loans were not considered TDRs based on the relief provisions of the CARES Act and recent regulatory interagency guidance. For purposes of this disclosure, the Company defines default as any payment that occurs more than 90 days past the due date, charge-off, or foreclosure subsequent to modification. As of December 31, 2022, 2021 and 2020, there was no other real estate owned. As of December 31, 2022, 2021 and 2020, there were no loans in the process of foreclosure.

Loans_2

Loans	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Receivables [Abstract]
Loans	Loans The Company’s loan portfolio segments, as reported in the tables below, include (i) commercial real estate (ii) owner-occupied commercial real estate (iii) acquisition, construction & development (iv) commercial & industrial (v) single family residential (1-4 units) and (vi) consumer non-real estate and other. The risks associated with lending activities differ among the various loan segments and are subject to the impact of changes in interest rates, market conditions of collateral securing the loans, and general economic conditions. • Commercial real estate loans carry risk associated with either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. Other risk factors include the credit-worthiness of the sponsor and the value of the collateral. • Owner-occupied commercial real estate loans carry risk associated with the operations of the business that occupies the property and the value of the collateral. • Acquisition, construction and development loans carry risk associated with the credit-worthiness of the borrower, project completion within budget, sale after completion, and the value of the collateral. • Commercial & industrial loans carry the risk associated with the operations of the business and the value of the collateral, if any. • Single family residential (1-4 units) loans for consumer purposes carry risk associated with the continued credit-worthiness of the borrower and the value of the collateral. Single family residential (1-4 units) loans for investment purpose carry risk associated with the continued credit-worthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. • Consumer non-real estate and other loans carry risk associated with the credit-worthiness of the borrower and the value of the collateral, if any. Loan balances at March 31, 2023, and December 31, 2022, by portfolio segment were as follows (in thousands): March 31, 2023 December 31, 2022 Commercial real estate $ 1,154,210 $ 1,109,315 Owner-occupied commercial real estate 125,657 127,114 Acquisition, construction & development 99,886 94,450 Commercial & industrial 50,101 53,514 Single family residential (1-4 units) 518,775 499,362 Consumer non-real estate and other 3,109 3,466 1,951,738 1,887,221 Allowance for credit losses (25,704) (21,039) Loans, net $ 1,926,034 $ 1,866,182	Loans The Company’s loan portfolio segments, as reported in the tables below, include (i) commercial real estate (ii) owner-occupied commercial real estate (iii) acquisition, construction & development (iv) commercial & industrial (v) single family residential (1-4 units) and (vi) consumer non-real estate and other. The risks associated with lending activities differ among the various loan segments and are subject to the impact of changes in interest rates, market conditions of collateral securing the loans, and general economic conditions. • Commercial real estate loans carry risk associated with either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. Other risk factors include the credit-worthiness of the sponsor and the value of the collateral. • Owner-occupied commercial real estate loans carry risk associated with the operations of the business that occupies the property and the value of the collateral. • Acquisition, construction & development loans carry risk associated with the credit-worthiness of the borrower, project completion within budget, sale after completion, and the value of the collateral. • Commercial & industrial loans carry the risk associated with the operations of the business and the value of the collateral, if any. • Single family residential (1-4 units) loans for consumer purposes carry risk associated with the continued credit-worthiness of the borrower and the value of the collateral. Single family residential (1-4 units) loans for investment purpose carry risk associated with the continued credit-worthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. • Consumer non-real estate and other loans carry risk associated with the credit-worthiness of the borrower and the value of the collateral, if any. Loan balances at June 30, 2023, and December 31, 2022, by portfolio segment were as follows (in thousands): June 30, 2023 December 31, 2022 Commercial real estate $ 1,198,840 $ 1,109,315 Owner-occupied commercial real estate 124,466 127,114 Acquisition, construction & development 92,730 94,450 Commercial & industrial 59,142 53,514 Single family residential (1-4 units) 522,944 499,362 Consumer non-real estate and other 2,847 3,466 2,000,969 1,887,221 Allowance for credit losses (25,919) (21,039) Loans, net $ 1,975,050 $ 1,866,182	Loans Loans at year-end by portfolio segment were as follows (in thousands): 2022 2021 Commercial real estate $ 1,109,315 $ 1,031,641 Owner-occupied commercial real estate 127,114 125,613 Acquisition, construction & development 94,450 109,518 Commercial & industrial 53,514 58,818 Single family residential (1-4 units) 499,362 415,594 Consumer non-real estate and other 3,466 3,889 1,887,221 1,745,073 Allowance for loan losses (21,039) (31,709) Loans, net $ 1,866,182 $ 1,713,364 Net deferred loan fees included in the above loan categories totaled $3.3 million and $4.4 million at December 31, 2022 and 2021, respectively. The Company holds $7.9 million and $37.8 million in PPP loans, net of deferred fees and costs as of December 31, 2022 and 2021, respectively. The following table presents the activity in the allowance for loan losses by portfolio segment for each of the years ending December 31, 2022, 2021, and 2020 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Total December 31, 2022 Allowance for loan losses Beginning balance $ 25,112 $ 611 $ 3,369 $ 160 $ 2,434 $ 23 $ 31,709 Provision for (recapture of) loan losses (6,391) 24 (1,287) 298 (239) 129 (7,466) Loans charged-off (3,282) — — (20) — (148) (3,450) Recoveries 38 — — — 184 24 246 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ 21,039 December 31, 2021 Allowance for loan losses Beginning balance $ 23,356 $ 1,196 $ 4,255 $ 68 $ 3,757 $ 65 $ 32,697 Provision for (recapture of) loan losses 1,870 (602) (886) 72 (1,490) 34 (1,002) Loans charged-off (127) — — — (16) (99) (242) Recoveries 13 17 — 20 183 23 256 Total ending allowance balance $ 25,112 $ 611 $ 3,369 $ 160 $ 2,434 $ 23 $ 31,709 December 31, 2020 Allowance for loan losses Beginning balance $ 11,396 $ 2,310 $ 1,697 $ 5,952 $ 2,791 $ 55 $ 24,201 Provision for (recapture of) loan losses 11,946 (1,114) 2,558 (1,752) 945 65 12,648 Loans charged-off — — — (5,858) (44) (94) (5,996) Recoveries 14 — — 1,726 65 39 1,844 Total ending allowance balance $ 23,356 $ 1,196 $ 4,255 $ 68 $ 3,757 $ 65 $ 32,697 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 and 2021 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Total December 31, 2022 Allowance for loan losses Individually evaluated for impairment $ 41 $ 102 $ — $ — $ 96 $ — $ 239 Collectively evaluated for impairment 15,436 533 2,082 438 2,283 28 20,800 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ 21,039 Loan balance: Individually evaluated for impairment $ 331 $ 2,580 $ — $ — $ 6,158 $ — $ 9,069 Collectively evaluated for impairment 1,108,984 124,534 94,450 53,514 493,204 3,466 1,878,152 Total ending loan balance $ 1,109,315 $ 127,114 $ 94,450 $ 53,514 $ 499,362 $ 3,466 $ 1,887,221 December 31, 2021 Allowance for loan losses Individually evaluated for impairment $ 7,558 $ 14 $ — $ — $ 107 $ — $ 7,679 Collectively evaluated for impairment 17,554 597 3,369 160 2,327 23 24,030 Total ending allowance balance $ 25,112 $ 611 $ 3,369 $ 160 $ 2,434 $ 23 $ 31,709 Loan balance: Individually evaluated for impairment $ 20,110 $ 2,843 $ — $ — $ 7,831 $ — $ 30,784 Collectively evaluated for impairment 1,011,531 122,770 109,518 58,818 407,763 3,889 1,714,289 Total ending loan balance $ 1,031,641 $ 125,613 $ 109,518 $ 58,818 $ 415,594 $ 3,889 $ 1,745,073 The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents the aging of the recorded investment in past due loans as of December 31, 2022 and 2021 by portfolio segment: Aging and Nonaccrual Loans (in thousands): December 31, 2022 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,109,315 $ 1,109,315 $ — $ — Owner-occupied commercial real estate — — — — 127,114 127,114 — 1,184 Acquisition, construction & development — — — — 94,450 94,450 — — Commercial & industrial — — — — 53,514 53,514 — — Single family residential (1-4 units) 1,403 154 546 2,103 497,259 499,362 — 4,313 Consumer non-real estate and other — 4 — 4 3,462 3,466 — — Total $ 1,403 $ 158 $ 546 $ 2,107 $ 1,885,114 $ 1,887,221 $ — $ 5,497 December 31, 2021 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ 19,531 $ 19,531 $ 1,012,110 $ 1,031,641 $ — $ 19,594 Owner-occupied commercial real estate 121 — 820 941 124,672 125,613 — 1,399 Acquisition, construction & development — — — — 109,518 109,518 — — Commercial & industrial 21 — — 21 58,797 58,818 — — Single family residential (1-4 units) 365 — 649 1,014 414,580 415,594 — 5,268 Consumer non-real estate and other — — — — 3,889 3,889 — — Total $ 507 $ — $ 21,000 $ 21,507 $ 1,723,566 $ 1,745,073 $ — $ 26,261 The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022 and 2021: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) December 31, 2022 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 1,184 1,394 — 1,291 97 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,151 5,576 — 5,131 213 Consumer non-real estate and other — — — — — Subtotal $ 6,335 $ 6,970 $ — $ 6,422 $ 310 With an allowance recorded: Commercial real estate $ 331 $ 331 $ 41 $ 350 $ 23 Owner-occupied commercial real estate 1,397 1,397 102 1,420 74 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 1,007 1,141 96 1,033 57 Consumer non-real estate and other — — — — — Subtotal $ 2,735 $ 2,869 $ 239 $ 2,803 $ 154 December 31, 2021 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 2,327 2,460 — 2,437 129 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,673 6,230 — 5,848 245 Consumer non-real estate and other — — — — — Subtotal $ 8,000 $ 8,690 $ — $ 8,285 $ 374 With an allowance recorded: Commercial real estate $ 20,110 $ 20,236 $ 7,558 $ 20,130 $ 30 Owner-occupied commercial real estate 516 516 14 530 32 Acquisition, construction & development — — — — — Commercial & industrial — — — — Single family residential (1-4 units) 2,159 2,285 107 2,203 122 Consumer non-real estate and other — — — — — Subtotal $ 22,785 $ 23,037 $ 7,679 $ 22,863 $ 184 __________________ (1) Cash basis interest income recognized approximates interest income recognized as of December 31, 2022 and 2021. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, current economic information and other factors. The Company analyzes loans individually by classifying the loans by credit risk. The Company uses the following definitions for risk ratings: Special Mention: Loans classified as special mention have a potential credit weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard: Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of debt. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and unlikely. Loans by credit quality indicators as of December 31, 2022 and 2021 were as follows (in thousands): Pass Special Mention Substandard Doubtful Loss Total December 31, 2022 Commercial real estate $ 1,011,025 $ 62,907 $ 35,383 $ — $ — $ 1,109,315 Owner-occupied commercial real estate 121,621 1,963 3,530 — — 127,114 Acquisition, construction & development 68,220 836 25,394 — — 94,450 Commercial & industrial 53,273 — 241 — — 53,514 Single family residential (1-4 units) 494,994 55 4,313 — — 499,362 Consumer non-real estate and other 3,466 — — — — 3,466 Total $ 1,752,599 $ 65,761 $ 68,861 $ — $ — $ 1,887,221 Pass Special Mention Substandard Doubtful Loss Total December 31, 2021 Commercial real estate $ 868,787 $ 75,397 $ 87,457 $ — $ — $ 1,031,641 Owner-occupied commercial real estate 122,065 2,149 1,399 — — 125,613 Acquisition, construction & development 72,895 36,623 — — — 109,518 Commercial & industrial 58,763 55 — — — 58,818 Single family residential (1-4 units) 410,227 99 5,268 — — 415,594 Consumer non-real estate and other 3,889 — — — — 3,889 Total $ 1,536,626 $ 114,323 $ 94,124 $ — $ — $ 1,745,073 There were no TDRs during the years ended December 31, 2022, 2021, and 2020, respectively. There were no TDRs that subsequently defaulted within twelve months of restructuring in the years ending, December 31, 2022 and December 31, 2021, respectively. In accordance with regulatory guidance and provisions in the CARES Act to provide relief during the COVID-19 pandemic, the Company has provided short-term concessions to certain borrowers. The Company holds $35.9 million and $173.1 million in loans that were under deferral under the CARES Act provisions as of December 31, 2022 and 2021, respectively. For loans to qualify for COVID-19 related modifications, these loans could not be more than 30 days past due as of December 31, 2019. As such, these loans were not considered TDRs based on the relief provisions of the CARES Act and recent regulatory interagency guidance. For purposes of this disclosure, the Company defines default as any payment that occurs more than 90 days past the due date, charge-off, or foreclosure subsequent to modification. As of December 31, 2022, 2021 and 2020, there was no other real estate owned. As of December 31, 2022, 2021 and 2020, there were no loans in the process of foreclosure.

Loans_2_3

Loans	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Receivables [Abstract]
Loans	Loans The Company’s loan portfolio segments, as reported in the tables below, include (i) commercial real estate (ii) owner-occupied commercial real estate (iii) acquisition, construction & development (iv) commercial & industrial (v) single family residential (1-4 units) and (vi) consumer non-real estate and other. The risks associated with lending activities differ among the various loan segments and are subject to the impact of changes in interest rates, market conditions of collateral securing the loans, and general economic conditions. • Commercial real estate loans carry risk associated with either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. Other risk factors include the credit-worthiness of the sponsor and the value of the collateral. • Owner-occupied commercial real estate loans carry risk associated with the operations of the business that occupies the property and the value of the collateral. • Acquisition, construction and development loans carry risk associated with the credit-worthiness of the borrower, project completion within budget, sale after completion, and the value of the collateral. • Commercial & industrial loans carry the risk associated with the operations of the business and the value of the collateral, if any. • Single family residential (1-4 units) loans for consumer purposes carry risk associated with the continued credit-worthiness of the borrower and the value of the collateral. Single family residential (1-4 units) loans for investment purpose carry risk associated with the continued credit-worthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. • Consumer non-real estate and other loans carry risk associated with the credit-worthiness of the borrower and the value of the collateral, if any. Loan balances at March 31, 2023, and December 31, 2022, by portfolio segment were as follows (in thousands): March 31, 2023 December 31, 2022 Commercial real estate $ 1,154,210 $ 1,109,315 Owner-occupied commercial real estate 125,657 127,114 Acquisition, construction & development 99,886 94,450 Commercial & industrial 50,101 53,514 Single family residential (1-4 units) 518,775 499,362 Consumer non-real estate and other 3,109 3,466 1,951,738 1,887,221 Allowance for credit losses (25,704) (21,039) Loans, net $ 1,926,034 $ 1,866,182	Loans The Company’s loan portfolio segments, as reported in the tables below, include (i) commercial real estate (ii) owner-occupied commercial real estate (iii) acquisition, construction & development (iv) commercial & industrial (v) single family residential (1-4 units) and (vi) consumer non-real estate and other. The risks associated with lending activities differ among the various loan segments and are subject to the impact of changes in interest rates, market conditions of collateral securing the loans, and general economic conditions. • Commercial real estate loans carry risk associated with either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. Other risk factors include the credit-worthiness of the sponsor and the value of the collateral. • Owner-occupied commercial real estate loans carry risk associated with the operations of the business that occupies the property and the value of the collateral. • Acquisition, construction & development loans carry risk associated with the credit-worthiness of the borrower, project completion within budget, sale after completion, and the value of the collateral. • Commercial & industrial loans carry the risk associated with the operations of the business and the value of the collateral, if any. • Single family residential (1-4 units) loans for consumer purposes carry risk associated with the continued credit-worthiness of the borrower and the value of the collateral. Single family residential (1-4 units) loans for investment purpose carry risk associated with the continued credit-worthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. • Consumer non-real estate and other loans carry risk associated with the credit-worthiness of the borrower and the value of the collateral, if any. Loan balances at June 30, 2023, and December 31, 2022, by portfolio segment were as follows (in thousands): June 30, 2023 December 31, 2022 Commercial real estate $ 1,198,840 $ 1,109,315 Owner-occupied commercial real estate 124,466 127,114 Acquisition, construction & development 92,730 94,450 Commercial & industrial 59,142 53,514 Single family residential (1-4 units) 522,944 499,362 Consumer non-real estate and other 2,847 3,466 2,000,969 1,887,221 Allowance for credit losses (25,919) (21,039) Loans, net $ 1,975,050 $ 1,866,182	Loans Loans at year-end by portfolio segment were as follows (in thousands): 2022 2021 Commercial real estate $ 1,109,315 $ 1,031,641 Owner-occupied commercial real estate 127,114 125,613 Acquisition, construction & development 94,450 109,518 Commercial & industrial 53,514 58,818 Single family residential (1-4 units) 499,362 415,594 Consumer non-real estate and other 3,466 3,889 1,887,221 1,745,073 Allowance for loan losses (21,039) (31,709) Loans, net $ 1,866,182 $ 1,713,364 Net deferred loan fees included in the above loan categories totaled $3.3 million and $4.4 million at December 31, 2022 and 2021, respectively. The Company holds $7.9 million and $37.8 million in PPP loans, net of deferred fees and costs as of December 31, 2022 and 2021, respectively. The following table presents the activity in the allowance for loan losses by portfolio segment for each of the years ending December 31, 2022, 2021, and 2020 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Total December 31, 2022 Allowance for loan losses Beginning balance $ 25,112 $ 611 $ 3,369 $ 160 $ 2,434 $ 23 $ 31,709 Provision for (recapture of) loan losses (6,391) 24 (1,287) 298 (239) 129 (7,466) Loans charged-off (3,282) — — (20) — (148) (3,450) Recoveries 38 — — — 184 24 246 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ 21,039 December 31, 2021 Allowance for loan losses Beginning balance $ 23,356 $ 1,196 $ 4,255 $ 68 $ 3,757 $ 65 $ 32,697 Provision for (recapture of) loan losses 1,870 (602) (886) 72 (1,490) 34 (1,002) Loans charged-off (127) — — — (16) (99) (242) Recoveries 13 17 — 20 183 23 256 Total ending allowance balance $ 25,112 $ 611 $ 3,369 $ 160 $ 2,434 $ 23 $ 31,709 December 31, 2020 Allowance for loan losses Beginning balance $ 11,396 $ 2,310 $ 1,697 $ 5,952 $ 2,791 $ 55 $ 24,201 Provision for (recapture of) loan losses 11,946 (1,114) 2,558 (1,752) 945 65 12,648 Loans charged-off — — — (5,858) (44) (94) (5,996) Recoveries 14 — — 1,726 65 39 1,844 Total ending allowance balance $ 23,356 $ 1,196 $ 4,255 $ 68 $ 3,757 $ 65 $ 32,697 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 and 2021 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Total December 31, 2022 Allowance for loan losses Individually evaluated for impairment $ 41 $ 102 $ — $ — $ 96 $ — $ 239 Collectively evaluated for impairment 15,436 533 2,082 438 2,283 28 20,800 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ 21,039 Loan balance: Individually evaluated for impairment $ 331 $ 2,580 $ — $ — $ 6,158 $ — $ 9,069 Collectively evaluated for impairment 1,108,984 124,534 94,450 53,514 493,204 3,466 1,878,152 Total ending loan balance $ 1,109,315 $ 127,114 $ 94,450 $ 53,514 $ 499,362 $ 3,466 $ 1,887,221 December 31, 2021 Allowance for loan losses Individually evaluated for impairment $ 7,558 $ 14 $ — $ — $ 107 $ — $ 7,679 Collectively evaluated for impairment 17,554 597 3,369 160 2,327 23 24,030 Total ending allowance balance $ 25,112 $ 611 $ 3,369 $ 160 $ 2,434 $ 23 $ 31,709 Loan balance: Individually evaluated for impairment $ 20,110 $ 2,843 $ — $ — $ 7,831 $ — $ 30,784 Collectively evaluated for impairment 1,011,531 122,770 109,518 58,818 407,763 3,889 1,714,289 Total ending loan balance $ 1,031,641 $ 125,613 $ 109,518 $ 58,818 $ 415,594 $ 3,889 $ 1,745,073 The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents the aging of the recorded investment in past due loans as of December 31, 2022 and 2021 by portfolio segment: Aging and Nonaccrual Loans (in thousands): December 31, 2022 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,109,315 $ 1,109,315 $ — $ — Owner-occupied commercial real estate — — — — 127,114 127,114 — 1,184 Acquisition, construction & development — — — — 94,450 94,450 — — Commercial & industrial — — — — 53,514 53,514 — — Single family residential (1-4 units) 1,403 154 546 2,103 497,259 499,362 — 4,313 Consumer non-real estate and other — 4 — 4 3,462 3,466 — — Total $ 1,403 $ 158 $ 546 $ 2,107 $ 1,885,114 $ 1,887,221 $ — $ 5,497 December 31, 2021 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ 19,531 $ 19,531 $ 1,012,110 $ 1,031,641 $ — $ 19,594 Owner-occupied commercial real estate 121 — 820 941 124,672 125,613 — 1,399 Acquisition, construction & development — — — — 109,518 109,518 — — Commercial & industrial 21 — — 21 58,797 58,818 — — Single family residential (1-4 units) 365 — 649 1,014 414,580 415,594 — 5,268 Consumer non-real estate and other — — — — 3,889 3,889 — — Total $ 507 $ — $ 21,000 $ 21,507 $ 1,723,566 $ 1,745,073 $ — $ 26,261 The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022 and 2021: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) December 31, 2022 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 1,184 1,394 — 1,291 97 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,151 5,576 — 5,131 213 Consumer non-real estate and other — — — — — Subtotal $ 6,335 $ 6,970 $ — $ 6,422 $ 310 With an allowance recorded: Commercial real estate $ 331 $ 331 $ 41 $ 350 $ 23 Owner-occupied commercial real estate 1,397 1,397 102 1,420 74 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 1,007 1,141 96 1,033 57 Consumer non-real estate and other — — — — — Subtotal $ 2,735 $ 2,869 $ 239 $ 2,803 $ 154 December 31, 2021 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 2,327 2,460 — 2,437 129 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,673 6,230 — 5,848 245 Consumer non-real estate and other — — — — — Subtotal $ 8,000 $ 8,690 $ — $ 8,285 $ 374 With an allowance recorded: Commercial real estate $ 20,110 $ 20,236 $ 7,558 $ 20,130 $ 30 Owner-occupied commercial real estate 516 516 14 530 32 Acquisition, construction & development — — — — — Commercial & industrial — — — — Single family residential (1-4 units) 2,159 2,285 107 2,203 122 Consumer non-real estate and other — — — — — Subtotal $ 22,785 $ 23,037 $ 7,679 $ 22,863 $ 184 __________________ (1) Cash basis interest income recognized approximates interest income recognized as of December 31, 2022 and 2021. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, current economic information and other factors. The Company analyzes loans individually by classifying the loans by credit risk. The Company uses the following definitions for risk ratings: Special Mention: Loans classified as special mention have a potential credit weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard: Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of debt. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and unlikely. Loans by credit quality indicators as of December 31, 2022 and 2021 were as follows (in thousands): Pass Special Mention Substandard Doubtful Loss Total December 31, 2022 Commercial real estate $ 1,011,025 $ 62,907 $ 35,383 $ — $ — $ 1,109,315 Owner-occupied commercial real estate 121,621 1,963 3,530 — — 127,114 Acquisition, construction & development 68,220 836 25,394 — — 94,450 Commercial & industrial 53,273 — 241 — — 53,514 Single family residential (1-4 units) 494,994 55 4,313 — — 499,362 Consumer non-real estate and other 3,466 — — — — 3,466 Total $ 1,752,599 $ 65,761 $ 68,861 $ — $ — $ 1,887,221 Pass Special Mention Substandard Doubtful Loss Total December 31, 2021 Commercial real estate $ 868,787 $ 75,397 $ 87,457 $ — $ — $ 1,031,641 Owner-occupied commercial real estate 122,065 2,149 1,399 — — 125,613 Acquisition, construction & development 72,895 36,623 — — — 109,518 Commercial & industrial 58,763 55 — — — 58,818 Single family residential (1-4 units) 410,227 99 5,268 — — 415,594 Consumer non-real estate and other 3,889 — — — — 3,889 Total $ 1,536,626 $ 114,323 $ 94,124 $ — $ — $ 1,745,073 There were no TDRs during the years ended December 31, 2022, 2021, and 2020, respectively. There were no TDRs that subsequently defaulted within twelve months of restructuring in the years ending, December 31, 2022 and December 31, 2021, respectively. In accordance with regulatory guidance and provisions in the CARES Act to provide relief during the COVID-19 pandemic, the Company has provided short-term concessions to certain borrowers. The Company holds $35.9 million and $173.1 million in loans that were under deferral under the CARES Act provisions as of December 31, 2022 and 2021, respectively. For loans to qualify for COVID-19 related modifications, these loans could not be more than 30 days past due as of December 31, 2019. As such, these loans were not considered TDRs based on the relief provisions of the CARES Act and recent regulatory interagency guidance. For purposes of this disclosure, the Company defines default as any payment that occurs more than 90 days past the due date, charge-off, or foreclosure subsequent to modification. As of December 31, 2022, 2021 and 2020, there was no other real estate owned. As of December 31, 2022, 2021 and 2020, there were no loans in the process of foreclosure.

Premises and Equipment

Premises and Equipment	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Premises and Equipment	Premises and Equipment Premises and equipment are included in the Balance Sheet at December 31, 2022 and 2021 were as follows (in thousands): 2022 2021 Cost: Land $ 14,626 $ 12,791 Premises 56,999 44,109 Furniture and equipment 18,705 23,792 90,330 80,692 Less: Accumulated depreciation (37,160) (43,817) $ 53,170 $ 36,875 Depreciation and amortization (e.g. leasehold improvements) expense for the years ended December 31, 2022, 2021 and 2020 was $3.1 million , $3.2 million and $2.9 million , respectively. In 2022 and 2021, the Company sold premises that resulted in a gain of $4.5 million and $1.1 million

Allowance for Credit Losses

Allowance for Credit Losses	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Jun. 30, 2023
Credit Loss [Abstract]
Allowance for Credit Losses	Allowance for Credit Losses On January 1, 2023, the Company adopted the CECL methodology as required under ASC 326. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables. For further discussion on the Company’s accounting policies and policy elections related to the accounting standards update refer to Note 1 - Nature of Business Activities and Significant Accounting Policies in these Notes to Consolidated Financial Statements. All information presented as of March 31, 2023, is in accordance with ASC 326. All other information presented prior to January 1, 2023, is in accordance with previous applicable GAAP. The Company’s ACL is calculated quarterly, with any adjustment recorded to the provision for credit losses in the Consolidated Statement of Income. Management calculates the quantitative portion of collectively evaluated loans for all loan categories using the WARM method. For purposes of estimating the Company’s ACL, management generally evaluates collectively evaluated loans by federal call code in order to group loans with similar risk characteristics. Loans that do not share similar risk characteristics are evaluated on an individual loan basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans that are collectively evaluated on a loan pool basis. A specific reserve analysis may be applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the expected future cash flows. A specific reserve is assigned if the measured value of the loan using one of the before mentioned methods is less than the carrying value of the loan. Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond the information that is used to calculate a reasonable and supportable forecast and a reversion period forecast on collectively evaluated loans. Management may consider an additional or reduced reserve as warranted through qualitative risk factors based on the current and expected conditions, as measured in supplemental information relative to the macroeconomic variable loss drivers used to calculate a reasonable and supportable forecast and a reversion period forecast. These qualitative risk factors considered by management are largely comparable to legacy factors prior to the adoption of CECL. The following table presents the activity in the ACL, including the impact of the adoption of CECL, for the three months ended March 31, 2023, and the activity for the allowance for loan losses for the three months ended March 31, 2022 (in thousands). Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & Industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total Three months ended March 31, 2023 Beginning balance, prior to adoption of CECL $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Impact of the adoption of CECL 2,686 (6) (640) 237 1,661 187 — 4,125 Provision for (recapture of) credit losses 218 (73) 410 25 (13) (44) — 523 Charge-offs — — — — — (17) — (17) Recoveries 28 — — — 3 3 — 34 Balance, end of period $ 18,409 $ 556 $ 1,852 $ 700 $ 4,030 $ 157 $ — $ 25,704 March 31, 2022 Balance, beginning of period $ 25,112 $ 611 $ 2,189 $ 165 $ 2,434 $ 18 $ 1,180 $ 31,709 Provision for (recapture of) loan losses (2,321) 52 127 (32) (1,030) 15 551 (2,638) Charge-offs (21) — — (20) — (28) — (69) Recoveries 3 — — — 47 9 — 59 Balance, end of period $ 22,773 $ 663 $ 2,316 $ 113 $ 1,451 $ 14 $ 1,731 $ 29,061 The information presented in the table below is not required for periods after the adoption of CECL. The following table summarizes the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & Industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total December 31, 2022 Allowance for loan losses Individually evaluated for impairment $ 41 $ 102 $ — $ — $ 96 $ — $ — $ 239 Collectively evaluated for impairment 15,436 533 2,082 438 2,283 28 — 20,800 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Loan balance: Individually evaluated for impairment $ 331 $ 2,580 $ — $ — $ 6,158 $ — $ — $ 9,069 Collectively evaluated for impairment 1,108,984 124,534 94,450 53,514 493,204 3,466 — 1,878,152 Total ending loan balance $ 1,109,315 $ 127,114 $ 94,450 $ 53,514 $ 499,362 $ 3,466 $ — $ 1,887,221 Prior to the adoption of CECL, loans were considered impaired when, based on current information and events as of the measurement date, it was probable the Company would be unable to collect all amounts due in accordance with the original contractual terms of the loan agreements. Impaired loans included loans on non-accrual status and accruing TDRs. When determining if the Company would be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement, the Company considered the borrower’s capacity to pay, which included such factors as the borrower’s current financial statements, an analysis of the global cash flow sufficient to pay all debt obligations, and an evaluation of secondary sources of repayment, such as guarantor support and collateral value. The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) December 31, 2022 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 1,184 1,394 — 1,291 97 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,151 5,576 — 5,131 213 Consumer non-real estate and other — — — — — Subtotal $ 6,335 $ 6,970 $ — $ 6,422 $ 310 With an allowance recorded: Commercial real estate $ 331 $ 331 $ 41 $ 350 $ 23 Owner-occupied commercial real estate 1,397 1,397 102 1,420 74 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 1,007 1,141 96 1,033 57 Consumer non-real estate and other — — — — — Subtotal $ 2,735 $ 2,869 $ 239 $ 2,803 $ 154 __________________ (1) Cash basis interest income recognized approximates interest income recognized shown as of the twelve months ended December 31, 2022. The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents the aging of the recorded investment in past due loans as of March 31, 2023, and December 31, 2022, by portfolio segment (in thousands): March 31, 2023 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ 2,075 $ — $ 2,075 $ 1,152,135 $ 1,154,210 $ — $ — Owner-occupied commercial real estate — — — — 125,657 125,657 — 1,121 Acquisition, construction & development — — — — 99,886 99,886 — — Commercial & industrial — 31 — 31 50,070 50,101 — — Single family residential (1-4 units) 1,515 — 328 1,843 516,932 518,775 — 2,125 Consumer non-real estate and other — — — — 3,109 3,109 — — Total $ 1,515 $ 2,106 $ 328 $ 3,949 $ 1,947,789 $ 1,951,738 $ — $ 3,246 December 31, 2022 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,109,315 $ 1,109,315 $ — $ — Owner-occupied commercial real estate — — — — 127,114 127,114 — 1,184 Acquisition, construction & development — — — — 94,450 94,450 — — Commercial & industrial — — — — 53,514 53,514 — — Single family residential (1-4 units) 1,403 154 546 2,103 497,259 499,362 — 4,313 Consumer non-real estate and other — 4 — 4 3,462 3,466 — — Total $ 1,403 $ 158 $ 546 $ 2,107 $ 1,885,114 $ 1,887,221 $ — $ 5,497 Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, current economic information, and other factors. The Company analyzes loans individually by classifying the loans by credit risk. The Company internally grades all commercial loans at the time of origination. In addition, the Company performs an annual review on the top twenty-five non-homogenous commercial loan relationships as measured by total Company exposure to each borrower. The Company uses the following definitions for credit risk classifications: Pass : These include satisfactory loans that have acceptable levels of risk. Special Mention : Loans classified as special mention have a potential credit weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard : Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the orderly liquidation of debt. Loans classified as substandard are inadequately protected by sound net worth, payment capacity of the borrower, or of the collateral pledged. If weaknesses go uncorrected, there is potential for partial loss of principal and/or interest. Doubtful : Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and unlikely. Loss : Loans classified as a loss are considered to be uncollectible and cannot be justified to continue as viable assets. While there may be the possibility of some recovery in the future, it is not practical or desirable to defer writing off these loans at the present time. The Company has a portfolio of smaller homogenous loans that are not individually risk rated that are included within the single family residential and consumer non-real estate and other loan classes. Generally, these loan classes are rated in a “Pass” unless these loans are on non-accrual and are then classified as substandard. The following table presents the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of March 31, 2023 (in thousands): Term Loans 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate Pass $ 51,800 $ 282,900 $ 214,098 $ 15,998 $ 76,014 $ 403,273 $ 4,309 $ 1,048,392 Special Mention — — — 8,433 5,302 40,929 — 54,664 Substandard — 600 2,351 — 7,569 40,634 — 51,154 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 51,800 $ 283,500 $ 216,449 $ 24,431 $ 88,885 $ 484,836 $ 4,309 $ 1,154,210 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Owner-occupied commercial real estate Pass $ 823 $ 30,039 $ 9,857 $ 15,463 $ 13,686 $ 49,753 $ 2,385 $ 122,006 Special Mention — — — — — 1,947 — 1,947 Substandard — 293 — — — 1,411 — 1,704 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 823 $ 30,332 $ 9,857 $ 15,463 $ 13,686 $ 53,111 $ 2,385 $ 125,657 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Acquisition, construction & development Pass $ 1,275 $ 28,498 $ 10,995 $ — $ 9,260 $ 1,398 $ 1,360 $ 52,786 Special Mention — — — — 807 22,093 — 22,900 Substandard — — — — — 24,200 — 24,200 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 1,275 $ 28,498 $ 10,995 $ — $ 10,067 $ 47,691 $ 1,360 $ 99,886 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial & industrial Pass $ 7,877 $ 18,402 $ 8,943 $ 603 $ 55 $ 1,769 $ 12,452 $ 50,101 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 7,877 $ 18,402 $ 8,943 $ 603 $ 55 $ 1,769 $ 12,452 $ 50,101 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Single family residential (1-4 units) Pass $ 32,061 $ 129,294 $ 62,952 $ 33,281 $ 42,540 $ 154,070 $ 62,451 $ 516,649 Special Mention — — — — — — — — Substandard — — — 263 — 1,863 — 2,126 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 32,061 $ 129,294 $ 62,952 $ 33,544 $ 42,540 $ 155,933 $ 62,451 $ 518,775 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer non-real estate and other Pass $ 376 $ 310 $ 183 $ 322 $ 460 $ 423 $ 1,035 $ 3,109 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 376 $ 310 $ 183 $ 322 $ 460 $ 423 $ 1,035 $ 3,109 Current period gross charge-offs $ — $ 17 $ — $ — $ — $ — $ — $ 17 The value of outstanding loans by credit quality indicators as of December 31, 2022 were as follows (in thousands): Pass Special Mention Substandard Doubtful Loss Total December 31, 2022 Commercial real estate $ 1,011,025 $ 62,907 $ 35,383 $ — $ — $ 1,109,315 Owner-occupied commercial real estate 121,621 1,963 3,530 — — 127,114 Acquisition, construction & development 68,220 836 25,394 — — 94,450 Commercial & industrial 53,273 — 241 — — 53,514 Single family residential (1-4 units) 494,994 55 4,313 — — 499,362 Consumer non-real estate and other 3,466 — — — — 3,466 Total $ 1,752,599 $ 65,761 $ 68,861 $ — $ — $ 1,887,221 The following tables present information about collateral dependent loans that were individually evaluated for purposes of determining the ACL as of March 31, 2023 (in thousands): Collateral Dependent Loans With Allowance With No Related Allowance Total Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance March 31, 2023 Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate — — 1,121 1,121 — Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) — — 3,329 3,329 — Consumer non-real estate and other — — — — — Total $ — $ — $ 4,450 $ 4,450 $ — On January 1, 2023, the Company adopted ASU 2022-02 on a modified retrospective basis. ASU 2022-02 eliminates the TDR accounting model and requires that the Company evaluate, based on the accounting for loan modifications, whether the borrower is experiencing financial difficulty, and the modification results in a more-than-insignificant direct change in the contractual cash flows and represents a new loan or a continuation of an existing loan. This change required all loan modifications to be accounted for under the general loan modification guidance in ASC 310-20, Receivables — Nonrefundable Fees and Other Costs, and subjects entities to new disclosure requirements on loan modifications to borrowers experiencing financial difficulty. Upon adoption of CECL, the Company loans classified as TDRs were individually evaluated for the ACL, and the measurement was done either using the collateral-dependent or the discounted cash flow method. The Company may modify loans to borrowers experiencing financial difficulty by providing principal forgiveness, term extension, interest rate reduction, or an other-than-insignificant payment delay. When principal forgiveness is provided, the amount of forgiveness is charged off against the ACL. The Company may also provide multiple types of modifications on an individual loan. For the three months ended March 31, 2023, the Company did not extend any modifications to borrowers experiencing financial difficulty that had a more-than-insignificant direct change in the contractual cash flows of the loan. The Company did not extend any modifications that were defined as TDRs during the year ended December 31, 2022.	Allowance for Credit Losses On January 1, 2023, the Company adopted the CECL methodology as required under ASC 326. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables. For further discussion on the Company’s accounting policies and policy elections related to the accounting standards update refer to Note 1 - Nature of Business Activities and Significant Accounting Policies in these Notes to Consolidated Financial Statements. All information presented as of June 30, 2023, is in accordance with ASC 326. All other information presented prior to January 1, 2023, is in accordance with previous applicable GAAP. The Company’s ACL is calculated quarterly, with any adjustment recorded to the provision for credit losses in the Consolidated Statement of Income. Management calculates the quantitative portion of collectively evaluated loans for all loan categories using the WARM method. For purposes of estimating the Company’s ACL, management generally evaluates collectively evaluated loans by federal call code in order to group loans with similar risk characteristics. Loans that do not share similar risk characteristics are evaluated on an individual loan basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans that are collectively evaluated on a loan pool basis. A specific reserve analysis may be applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the expected future cash flows. A specific reserve is assigned if the measured value of the loan using one of the before mentioned methods is less than the carrying value of the loan. Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond the information that is used to calculate a reasonable and supportable forecast and a reversion period forecast on collectively evaluated loans. Management may consider an additional or reduced reserve as warranted through qualitative risk factors based on the current and expected conditions, as measured in supplemental information relative to the macroeconomic variable loss drivers used to calculate a reasonable and supportable forecast and a reversion period forecast. These qualitative risk factors considered by management are largely comparable to legacy factors prior to the adoption of CECL. The following tables presents the activity in the ACL, including the impact of the adoption of CECL, for the three months and six months ended June 30, 2023, and the activity for the allowance for loan losses for the three months and six months ended June 30, 2022 (in thousands). Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & Industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total Three months ended June 30, 2023 Balance, beginning of period $ 18,409 $ 556 $ 1,852 $ 700 $ 4,030 $ 157 $ — $ 25,704 Provision for (recapture of) credit losses 227 163 (533) (59) 487 25 — 310 Charge-offs — — — (29) — (75) — (104) Recoveries 3 — — — 3 3 — 9 Balance, end of period $ 18,639 $ 719 $ 1,319 $ 612 $ 4,520 $ 110 $ — $ 25,919 June 30, 2022 Balance, beginning of period $ 22,773 $ 663 $ 2,316 $ 113 $ 1,451 $ 14 $ 1,731 $ 29,061 Provision for (recapture of) loan losses (3,968) 61 1,291 101 (49) 26 — (2,538) Charge-offs (3,261) — — — — (27) — (3,288) Recoveries 4 — — — 117 6 — 127 Balance, end of period $ 15,548 $ 724 $ 3,607 $ 214 $ 1,519 $ 19 $ 1,731 $ 23,362 Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total Six months ended June 30, 2023 Beginning balance, prior to adoption of CECL $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Impact of the adoption of CECL 2,686 (6) (640) 237 1,661 187 — 4,125 Provision for (recapture of) credit losses 445 90 (123) (34) 474 (19) — 833 Charge-offs — — — (29) — (92) — (121) Recoveries 31 — — — 6 6 — 43 Balance, end of period $ 18,639 $ 719 $ 1,319 $ 612 $ 4,520 $ 110 $ — $ 25,919 June 30, 2022 Balance, beginning of period $ 25,112 $ 611 $ 2,189 $ 165 $ 2,434 $ 18 $ 1,180 $ 31,709 Provision for (recapture of) loan losses (6,289) 113 1,418 69 (1,079) 41 551 (5,176) Charge-offs (3,282) — — (20) — (55) — (3,357) Recoveries 7 — — — 164 15 — 186 Balance, end of period $ 15,548 $ 724 $ 3,607 $ 214 $ 1,519 $ 19 $ 1,731 $ 23,362 The information presented in the table below is not required for periods after the adoption of CECL. The following table summarizes the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total December 31, 2022 Allowance for loan losses Individually evaluated for impairment $ 41 $ 102 $ — $ — $ 96 $ — $ — $ 239 Collectively evaluated for impairment 15,436 533 2,082 438 2,283 28 — 20,800 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Loan balance: Individually evaluated for impairment $ 331 $ 2,580 $ — $ — $ 6,158 $ — $ — $ 9,069 Collectively evaluated for impairment 1,108,984 124,534 94,450 53,514 493,204 3,466 — 1,878,152 Total ending loan balance $ 1,109,315 $ 127,114 $ 94,450 $ 53,514 $ 499,362 $ 3,466 $ — $ 1,887,221 Prior to the adoption of CECL, loans were considered impaired when, based on current information and events as of the measurement date, it was probable the Company would be unable to collect all amounts due in accordance with the original contractual terms of the loan agreements. Impaired loans included loans on non-accrual status and accruing TDRs. When determining if the Company would be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement, the Company considered the borrower’s capacity to pay, which included such factors as the borrower’s current financial statements, an analysis of the global cash flow sufficient to pay all debt obligations, and an evaluation of secondary sources of repayment, such as guarantor support and collateral value. The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) December 31, 2022 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 1,184 1,394 — 1,291 97 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,151 5,576 — 5,131 213 Consumer non-real estate and other — — — — — Subtotal $ 6,335 $ 6,970 $ — $ 6,422 $ 310 With an allowance recorded: Commercial real estate $ 331 $ 331 $ 41 $ 350 $ 23 Owner-occupied commercial real estate 1,397 1,397 102 1,420 74 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 1,007 1,141 96 1,033 57 Consumer non-real estate and other — — — — — Subtotal $ 2,735 $ 2,869 $ 239 $ 2,803 $ 154 __________________ (1) Cash basis interest income recognized approximates interest income recognized shown as of the twelve months ended December 31, 2022. The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents the aging of the recorded investment in past due loans as of June 30, 2023, and December 31, 2022, by portfolio segment (in thousands): June 30, 2023 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,198,840 $ 1,198,840 $ — $ — Owner-occupied commercial real estate 873 — 673 1,546 122,920 124,466 — 1,066 Acquisition, construction & development — — — — 92,730 92,730 — — Commercial & industrial — — — — 59,142 59,142 — — Single family residential (1-4 units) 146 — 61 207 522,737 522,944 — 1,857 Consumer non-real estate and other 42 — — 42 2,805 2,847 — — Total $ 1,061 $ — $ 734 $ 1,795 $ 1,999,174 $ 2,000,969 $ — $ 2,923 December 31, 2022 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,109,315 $ 1,109,315 $ — $ — Owner-occupied commercial real estate — — — — 127,114 127,114 — 1,184 Acquisition, construction & development — — — — 94,450 94,450 — — Commercial & industrial — — — — 53,514 53,514 — — Single family residential (1-4 units) 1,403 154 546 2,103 497,259 499,362 — 4,313 Consumer non-real estate and other — 4 — 4 3,462 3,466 — — Total $ 1,403 $ 158 $ 546 $ 2,107 $ 1,885,114 $ 1,887,221 $ — $ 5,497 Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, current economic information, and other factors. The Company analyzes loans individually by classifying the loans by credit risk. The Company internally grades all commercial loans at the time of origination. In addition, the Company performs an annual review on the top twenty-five non-homogenous commercial loan relationships as measured by total Company exposure to each borrower. The Company uses the following definitions for credit risk classifications: Pass : These include satisfactory loans that have acceptable levels of risk. Special Mention : Loans classified as special mention have a potential credit weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard : Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the orderly liquidation of debt. Loans classified as substandard are inadequately protected by sound net worth, payment capacity of the borrower, or of the collateral pledged. If weaknesses go uncorrected, there is potential for partial loss of principal and/or interest. Doubtful : Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and unlikely. Loss : Loans classified as a loss are considered to be uncollectible and cannot be justified to continue as viable assets. While there may be the possibility of some recovery in the future, it is not practical or desirable to defer writing off these loans at the present time. The Company has a portfolio of smaller homogenous loans that are not individually risk rated that are included within the single family residential and consumer non-real estate and other loan classes. Generally, these loan classes are rated as “Pass” unless these loans are on non-accrual and are then classified as substandard. The following table presents the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of June 30, 2023 (in thousands): Term Loans 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate Pass $ 109,677 $ 268,807 $ 170,100 $ 15,736 $ 75,506 $ 422,563 $ 4,975 $ 1,067,364 Special Mention — 15,000 44,873 8,398 1,266 2,306 — 71,843 Substandard — 600 2,351 — 7,516 49,166 — 59,633 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 109,677 $ 284,407 $ 217,324 $ 24,134 $ 84,288 $ 474,035 $ 4,975 $ 1,198,840 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Owner-occupied commercial real estate Pass $ 2,569 $ 29,761 $ 9,622 $ 15,225 $ 13,021 $ 44,538 $ 4,535 $ 119,271 Special Mention — — — — — — — — Substandard — 539 — — — 4,656 — 5,195 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 2,569 $ 30,300 $ 9,622 $ 15,225 $ 13,021 $ 49,194 $ 4,535 $ 124,466 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Acquisition, construction & development Pass $ 2,941 $ 26,843 $ 14,504 $ — $ — $ 23,960 $ 1,610 $ 69,858 Special Mention — — — — 779 — — 779 Substandard — — — — — 22,093 — 22,093 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 2,941 $ 26,843 $ 14,504 $ — $ 779 $ 46,053 $ 1,610 $ 92,730 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial & industrial Pass $ 19,732 $ 17,575 $ 8,041 $ 523 $ 41 $ 1,595 $ 11,635 $ 59,142 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 19,732 $ 17,575 $ 8,041 $ 523 $ 41 $ 1,595 $ 11,635 $ 59,142 Year to date gross charge-offs $ — $ — $ — $ 29 $ — $ — $ — $ 29 Single family residential (1-4 units) Pass $ 55,068 $ 130,556 $ 61,981 $ 32,645 $ 41,566 $ 148,187 $ 51,084 $ 521,087 Special Mention — — Substandard — — 291 252 — 1,314 — 1,857 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 55,068 $ 130,556 $ 62,272 $ 32,897 $ 41,566 $ 149,501 $ 51,084 $ 522,944 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer non-real estate and other Pass $ 227 $ 270 $ 161 $ 248 $ 435 $ 397 $ 1,109 $ 2,847 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 227 $ 270 $ 161 $ 248 $ 435 $ 397 $ 1,109 $ 2,847 Year to date gross charge-offs $ 92 $ — $ — $ — $ — $ — $ — $ 92 The value of outstanding loans by credit quality indicators as of December 31, 2022 were as follows (in thousands): Pass Special Mention Substandard Doubtful Loss Total December 31, 2022 Commercial real estate $ 1,011,025 $ 62,907 $ 35,383 $ — $ — $ 1,109,315 Owner-occupied commercial real estate 121,621 1,963 3,530 — — 127,114 Acquisition, construction & development 68,220 836 25,394 — — 94,450 Commercial & industrial 53,273 — 241 — — 53,514 Single family residential (1-4 units) 494,994 55 4,313 — — 499,362 Consumer non-real estate and other 3,466 — — — — 3,466 Total $ 1,752,599 $ 65,761 $ 68,861 $ — $ — $ 1,887,221 The following tables present information about collateral-dependent loans that were individually evaluated for purposes of determining the ACL as of June 30, 2023 (in thousands): Collateral-Dependent Loans With Allowance With No Related Allowance Total Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance June 30, 2023 Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate — — 1,066 1,066 — Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) — — 2,670 2,670 — Consumer non-real estate and other — — — — — Total $ — $ — $ 3,736 $ 3,736 $ — On January 1, 2023, the Company adopted ASU 2022-02 on a modified retrospective basis. ASU 2022-02 eliminates the TDR accounting model and requires that the Company evaluate, based on the accounting for loan modifications, whether the borrower is experiencing financial difficulty, and the modification results in a more-than-insignificant direct change in the contractual cash flows and represents a new loan or a continuation of an existing loan. This change required all loan modifications to be accounted for under the general loan modification guidance in ASC 310-20, Receivables — Nonrefundable Fees and Other Costs, and subjects entities to new disclosure requirements on loan modifications to borrowers experiencing financial difficulty. Upon adoption of CECL, the Company loans classified as TDRs were individually evaluated for the ACL, and the measurement was done either using the collateral-dependent or the discounted cash flow method. The Company may modify loans to borrowers experiencing financial difficulty by providing principal forgiveness, term extension, interest rate reduction, or an other-than-insignificant payment delay. When principal forgiveness is provided, the amount of forgiveness is charged off against the ACL. The Company may also provide multiple types of modifications on an individual loan. For the three and six months ended June 30, 2023, the Company did not extend any modifications to borrowers experiencing financial difficulty that had a more-than-insignificant direct change in the contractual cash flows of the loan. The Company did not extend any modifications that were defined as TDRs during the year ended December 31, 2022.

Allowance for Credit Losses_2

Allowance for Credit Losses	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Jun. 30, 2023
Credit Loss [Abstract]
Allowance for Credit Losses	Allowance for Credit Losses On January 1, 2023, the Company adopted the CECL methodology as required under ASC 326. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables. For further discussion on the Company’s accounting policies and policy elections related to the accounting standards update refer to Note 1 - Nature of Business Activities and Significant Accounting Policies in these Notes to Consolidated Financial Statements. All information presented as of March 31, 2023, is in accordance with ASC 326. All other information presented prior to January 1, 2023, is in accordance with previous applicable GAAP. The Company’s ACL is calculated quarterly, with any adjustment recorded to the provision for credit losses in the Consolidated Statement of Income. Management calculates the quantitative portion of collectively evaluated loans for all loan categories using the WARM method. For purposes of estimating the Company’s ACL, management generally evaluates collectively evaluated loans by federal call code in order to group loans with similar risk characteristics. Loans that do not share similar risk characteristics are evaluated on an individual loan basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans that are collectively evaluated on a loan pool basis. A specific reserve analysis may be applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the expected future cash flows. A specific reserve is assigned if the measured value of the loan using one of the before mentioned methods is less than the carrying value of the loan. Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond the information that is used to calculate a reasonable and supportable forecast and a reversion period forecast on collectively evaluated loans. Management may consider an additional or reduced reserve as warranted through qualitative risk factors based on the current and expected conditions, as measured in supplemental information relative to the macroeconomic variable loss drivers used to calculate a reasonable and supportable forecast and a reversion period forecast. These qualitative risk factors considered by management are largely comparable to legacy factors prior to the adoption of CECL. The following table presents the activity in the ACL, including the impact of the adoption of CECL, for the three months ended March 31, 2023, and the activity for the allowance for loan losses for the three months ended March 31, 2022 (in thousands). Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & Industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total Three months ended March 31, 2023 Beginning balance, prior to adoption of CECL $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Impact of the adoption of CECL 2,686 (6) (640) 237 1,661 187 — 4,125 Provision for (recapture of) credit losses 218 (73) 410 25 (13) (44) — 523 Charge-offs — — — — — (17) — (17) Recoveries 28 — — — 3 3 — 34 Balance, end of period $ 18,409 $ 556 $ 1,852 $ 700 $ 4,030 $ 157 $ — $ 25,704 March 31, 2022 Balance, beginning of period $ 25,112 $ 611 $ 2,189 $ 165 $ 2,434 $ 18 $ 1,180 $ 31,709 Provision for (recapture of) loan losses (2,321) 52 127 (32) (1,030) 15 551 (2,638) Charge-offs (21) — — (20) — (28) — (69) Recoveries 3 — — — 47 9 — 59 Balance, end of period $ 22,773 $ 663 $ 2,316 $ 113 $ 1,451 $ 14 $ 1,731 $ 29,061 The information presented in the table below is not required for periods after the adoption of CECL. The following table summarizes the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & Industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total December 31, 2022 Allowance for loan losses Individually evaluated for impairment $ 41 $ 102 $ — $ — $ 96 $ — $ — $ 239 Collectively evaluated for impairment 15,436 533 2,082 438 2,283 28 — 20,800 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Loan balance: Individually evaluated for impairment $ 331 $ 2,580 $ — $ — $ 6,158 $ — $ — $ 9,069 Collectively evaluated for impairment 1,108,984 124,534 94,450 53,514 493,204 3,466 — 1,878,152 Total ending loan balance $ 1,109,315 $ 127,114 $ 94,450 $ 53,514 $ 499,362 $ 3,466 $ — $ 1,887,221 Prior to the adoption of CECL, loans were considered impaired when, based on current information and events as of the measurement date, it was probable the Company would be unable to collect all amounts due in accordance with the original contractual terms of the loan agreements. Impaired loans included loans on non-accrual status and accruing TDRs. When determining if the Company would be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement, the Company considered the borrower’s capacity to pay, which included such factors as the borrower’s current financial statements, an analysis of the global cash flow sufficient to pay all debt obligations, and an evaluation of secondary sources of repayment, such as guarantor support and collateral value. The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) December 31, 2022 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 1,184 1,394 — 1,291 97 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,151 5,576 — 5,131 213 Consumer non-real estate and other — — — — — Subtotal $ 6,335 $ 6,970 $ — $ 6,422 $ 310 With an allowance recorded: Commercial real estate $ 331 $ 331 $ 41 $ 350 $ 23 Owner-occupied commercial real estate 1,397 1,397 102 1,420 74 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 1,007 1,141 96 1,033 57 Consumer non-real estate and other — — — — — Subtotal $ 2,735 $ 2,869 $ 239 $ 2,803 $ 154 __________________ (1) Cash basis interest income recognized approximates interest income recognized shown as of the twelve months ended December 31, 2022. The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents the aging of the recorded investment in past due loans as of March 31, 2023, and December 31, 2022, by portfolio segment (in thousands): March 31, 2023 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ 2,075 $ — $ 2,075 $ 1,152,135 $ 1,154,210 $ — $ — Owner-occupied commercial real estate — — — — 125,657 125,657 — 1,121 Acquisition, construction & development — — — — 99,886 99,886 — — Commercial & industrial — 31 — 31 50,070 50,101 — — Single family residential (1-4 units) 1,515 — 328 1,843 516,932 518,775 — 2,125 Consumer non-real estate and other — — — — 3,109 3,109 — — Total $ 1,515 $ 2,106 $ 328 $ 3,949 $ 1,947,789 $ 1,951,738 $ — $ 3,246 December 31, 2022 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,109,315 $ 1,109,315 $ — $ — Owner-occupied commercial real estate — — — — 127,114 127,114 — 1,184 Acquisition, construction & development — — — — 94,450 94,450 — — Commercial & industrial — — — — 53,514 53,514 — — Single family residential (1-4 units) 1,403 154 546 2,103 497,259 499,362 — 4,313 Consumer non-real estate and other — 4 — 4 3,462 3,466 — — Total $ 1,403 $ 158 $ 546 $ 2,107 $ 1,885,114 $ 1,887,221 $ — $ 5,497 Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, current economic information, and other factors. The Company analyzes loans individually by classifying the loans by credit risk. The Company internally grades all commercial loans at the time of origination. In addition, the Company performs an annual review on the top twenty-five non-homogenous commercial loan relationships as measured by total Company exposure to each borrower. The Company uses the following definitions for credit risk classifications: Pass : These include satisfactory loans that have acceptable levels of risk. Special Mention : Loans classified as special mention have a potential credit weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard : Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the orderly liquidation of debt. Loans classified as substandard are inadequately protected by sound net worth, payment capacity of the borrower, or of the collateral pledged. If weaknesses go uncorrected, there is potential for partial loss of principal and/or interest. Doubtful : Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and unlikely. Loss : Loans classified as a loss are considered to be uncollectible and cannot be justified to continue as viable assets. While there may be the possibility of some recovery in the future, it is not practical or desirable to defer writing off these loans at the present time. The Company has a portfolio of smaller homogenous loans that are not individually risk rated that are included within the single family residential and consumer non-real estate and other loan classes. Generally, these loan classes are rated in a “Pass” unless these loans are on non-accrual and are then classified as substandard. The following table presents the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of March 31, 2023 (in thousands): Term Loans 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate Pass $ 51,800 $ 282,900 $ 214,098 $ 15,998 $ 76,014 $ 403,273 $ 4,309 $ 1,048,392 Special Mention — — — 8,433 5,302 40,929 — 54,664 Substandard — 600 2,351 — 7,569 40,634 — 51,154 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 51,800 $ 283,500 $ 216,449 $ 24,431 $ 88,885 $ 484,836 $ 4,309 $ 1,154,210 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Owner-occupied commercial real estate Pass $ 823 $ 30,039 $ 9,857 $ 15,463 $ 13,686 $ 49,753 $ 2,385 $ 122,006 Special Mention — — — — — 1,947 — 1,947 Substandard — 293 — — — 1,411 — 1,704 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 823 $ 30,332 $ 9,857 $ 15,463 $ 13,686 $ 53,111 $ 2,385 $ 125,657 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Acquisition, construction & development Pass $ 1,275 $ 28,498 $ 10,995 $ — $ 9,260 $ 1,398 $ 1,360 $ 52,786 Special Mention — — — — 807 22,093 — 22,900 Substandard — — — — — 24,200 — 24,200 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 1,275 $ 28,498 $ 10,995 $ — $ 10,067 $ 47,691 $ 1,360 $ 99,886 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial & industrial Pass $ 7,877 $ 18,402 $ 8,943 $ 603 $ 55 $ 1,769 $ 12,452 $ 50,101 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 7,877 $ 18,402 $ 8,943 $ 603 $ 55 $ 1,769 $ 12,452 $ 50,101 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Single family residential (1-4 units) Pass $ 32,061 $ 129,294 $ 62,952 $ 33,281 $ 42,540 $ 154,070 $ 62,451 $ 516,649 Special Mention — — — — — — — — Substandard — — — 263 — 1,863 — 2,126 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 32,061 $ 129,294 $ 62,952 $ 33,544 $ 42,540 $ 155,933 $ 62,451 $ 518,775 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer non-real estate and other Pass $ 376 $ 310 $ 183 $ 322 $ 460 $ 423 $ 1,035 $ 3,109 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 376 $ 310 $ 183 $ 322 $ 460 $ 423 $ 1,035 $ 3,109 Current period gross charge-offs $ — $ 17 $ — $ — $ — $ — $ — $ 17 The value of outstanding loans by credit quality indicators as of December 31, 2022 were as follows (in thousands): Pass Special Mention Substandard Doubtful Loss Total December 31, 2022 Commercial real estate $ 1,011,025 $ 62,907 $ 35,383 $ — $ — $ 1,109,315 Owner-occupied commercial real estate 121,621 1,963 3,530 — — 127,114 Acquisition, construction & development 68,220 836 25,394 — — 94,450 Commercial & industrial 53,273 — 241 — — 53,514 Single family residential (1-4 units) 494,994 55 4,313 — — 499,362 Consumer non-real estate and other 3,466 — — — — 3,466 Total $ 1,752,599 $ 65,761 $ 68,861 $ — $ — $ 1,887,221 The following tables present information about collateral dependent loans that were individually evaluated for purposes of determining the ACL as of March 31, 2023 (in thousands): Collateral Dependent Loans With Allowance With No Related Allowance Total Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance March 31, 2023 Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate — — 1,121 1,121 — Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) — — 3,329 3,329 — Consumer non-real estate and other — — — — — Total $ — $ — $ 4,450 $ 4,450 $ — On January 1, 2023, the Company adopted ASU 2022-02 on a modified retrospective basis. ASU 2022-02 eliminates the TDR accounting model and requires that the Company evaluate, based on the accounting for loan modifications, whether the borrower is experiencing financial difficulty, and the modification results in a more-than-insignificant direct change in the contractual cash flows and represents a new loan or a continuation of an existing loan. This change required all loan modifications to be accounted for under the general loan modification guidance in ASC 310-20, Receivables — Nonrefundable Fees and Other Costs, and subjects entities to new disclosure requirements on loan modifications to borrowers experiencing financial difficulty. Upon adoption of CECL, the Company loans classified as TDRs were individually evaluated for the ACL, and the measurement was done either using the collateral-dependent or the discounted cash flow method. The Company may modify loans to borrowers experiencing financial difficulty by providing principal forgiveness, term extension, interest rate reduction, or an other-than-insignificant payment delay. When principal forgiveness is provided, the amount of forgiveness is charged off against the ACL. The Company may also provide multiple types of modifications on an individual loan. For the three months ended March 31, 2023, the Company did not extend any modifications to borrowers experiencing financial difficulty that had a more-than-insignificant direct change in the contractual cash flows of the loan. The Company did not extend any modifications that were defined as TDRs during the year ended December 31, 2022.	Allowance for Credit Losses On January 1, 2023, the Company adopted the CECL methodology as required under ASC 326. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables. For further discussion on the Company’s accounting policies and policy elections related to the accounting standards update refer to Note 1 - Nature of Business Activities and Significant Accounting Policies in these Notes to Consolidated Financial Statements. All information presented as of June 30, 2023, is in accordance with ASC 326. All other information presented prior to January 1, 2023, is in accordance with previous applicable GAAP. The Company’s ACL is calculated quarterly, with any adjustment recorded to the provision for credit losses in the Consolidated Statement of Income. Management calculates the quantitative portion of collectively evaluated loans for all loan categories using the WARM method. For purposes of estimating the Company’s ACL, management generally evaluates collectively evaluated loans by federal call code in order to group loans with similar risk characteristics. Loans that do not share similar risk characteristics are evaluated on an individual loan basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans that are collectively evaluated on a loan pool basis. A specific reserve analysis may be applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the expected future cash flows. A specific reserve is assigned if the measured value of the loan using one of the before mentioned methods is less than the carrying value of the loan. Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond the information that is used to calculate a reasonable and supportable forecast and a reversion period forecast on collectively evaluated loans. Management may consider an additional or reduced reserve as warranted through qualitative risk factors based on the current and expected conditions, as measured in supplemental information relative to the macroeconomic variable loss drivers used to calculate a reasonable and supportable forecast and a reversion period forecast. These qualitative risk factors considered by management are largely comparable to legacy factors prior to the adoption of CECL. The following tables presents the activity in the ACL, including the impact of the adoption of CECL, for the three months and six months ended June 30, 2023, and the activity for the allowance for loan losses for the three months and six months ended June 30, 2022 (in thousands). Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & Industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total Three months ended June 30, 2023 Balance, beginning of period $ 18,409 $ 556 $ 1,852 $ 700 $ 4,030 $ 157 $ — $ 25,704 Provision for (recapture of) credit losses 227 163 (533) (59) 487 25 — 310 Charge-offs — — — (29) — (75) — (104) Recoveries 3 — — — 3 3 — 9 Balance, end of period $ 18,639 $ 719 $ 1,319 $ 612 $ 4,520 $ 110 $ — $ 25,919 June 30, 2022 Balance, beginning of period $ 22,773 $ 663 $ 2,316 $ 113 $ 1,451 $ 14 $ 1,731 $ 29,061 Provision for (recapture of) loan losses (3,968) 61 1,291 101 (49) 26 — (2,538) Charge-offs (3,261) — — — — (27) — (3,288) Recoveries 4 — — — 117 6 — 127 Balance, end of period $ 15,548 $ 724 $ 3,607 $ 214 $ 1,519 $ 19 $ 1,731 $ 23,362 Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total Six months ended June 30, 2023 Beginning balance, prior to adoption of CECL $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Impact of the adoption of CECL 2,686 (6) (640) 237 1,661 187 — 4,125 Provision for (recapture of) credit losses 445 90 (123) (34) 474 (19) — 833 Charge-offs — — — (29) — (92) — (121) Recoveries 31 — — — 6 6 — 43 Balance, end of period $ 18,639 $ 719 $ 1,319 $ 612 $ 4,520 $ 110 $ — $ 25,919 June 30, 2022 Balance, beginning of period $ 25,112 $ 611 $ 2,189 $ 165 $ 2,434 $ 18 $ 1,180 $ 31,709 Provision for (recapture of) loan losses (6,289) 113 1,418 69 (1,079) 41 551 (5,176) Charge-offs (3,282) — — (20) — (55) — (3,357) Recoveries 7 — — — 164 15 — 186 Balance, end of period $ 15,548 $ 724 $ 3,607 $ 214 $ 1,519 $ 19 $ 1,731 $ 23,362 The information presented in the table below is not required for periods after the adoption of CECL. The following table summarizes the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total December 31, 2022 Allowance for loan losses Individually evaluated for impairment $ 41 $ 102 $ — $ — $ 96 $ — $ — $ 239 Collectively evaluated for impairment 15,436 533 2,082 438 2,283 28 — 20,800 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Loan balance: Individually evaluated for impairment $ 331 $ 2,580 $ — $ — $ 6,158 $ — $ — $ 9,069 Collectively evaluated for impairment 1,108,984 124,534 94,450 53,514 493,204 3,466 — 1,878,152 Total ending loan balance $ 1,109,315 $ 127,114 $ 94,450 $ 53,514 $ 499,362 $ 3,466 $ — $ 1,887,221 Prior to the adoption of CECL, loans were considered impaired when, based on current information and events as of the measurement date, it was probable the Company would be unable to collect all amounts due in accordance with the original contractual terms of the loan agreements. Impaired loans included loans on non-accrual status and accruing TDRs. When determining if the Company would be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement, the Company considered the borrower’s capacity to pay, which included such factors as the borrower’s current financial statements, an analysis of the global cash flow sufficient to pay all debt obligations, and an evaluation of secondary sources of repayment, such as guarantor support and collateral value. The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) December 31, 2022 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 1,184 1,394 — 1,291 97 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,151 5,576 — 5,131 213 Consumer non-real estate and other — — — — — Subtotal $ 6,335 $ 6,970 $ — $ 6,422 $ 310 With an allowance recorded: Commercial real estate $ 331 $ 331 $ 41 $ 350 $ 23 Owner-occupied commercial real estate 1,397 1,397 102 1,420 74 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 1,007 1,141 96 1,033 57 Consumer non-real estate and other — — — — — Subtotal $ 2,735 $ 2,869 $ 239 $ 2,803 $ 154 __________________ (1) Cash basis interest income recognized approximates interest income recognized shown as of the twelve months ended December 31, 2022. The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents the aging of the recorded investment in past due loans as of June 30, 2023, and December 31, 2022, by portfolio segment (in thousands): June 30, 2023 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,198,840 $ 1,198,840 $ — $ — Owner-occupied commercial real estate 873 — 673 1,546 122,920 124,466 — 1,066 Acquisition, construction & development — — — — 92,730 92,730 — — Commercial & industrial — — — — 59,142 59,142 — — Single family residential (1-4 units) 146 — 61 207 522,737 522,944 — 1,857 Consumer non-real estate and other 42 — — 42 2,805 2,847 — — Total $ 1,061 $ — $ 734 $ 1,795 $ 1,999,174 $ 2,000,969 $ — $ 2,923 December 31, 2022 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,109,315 $ 1,109,315 $ — $ — Owner-occupied commercial real estate — — — — 127,114 127,114 — 1,184 Acquisition, construction & development — — — — 94,450 94,450 — — Commercial & industrial — — — — 53,514 53,514 — — Single family residential (1-4 units) 1,403 154 546 2,103 497,259 499,362 — 4,313 Consumer non-real estate and other — 4 — 4 3,462 3,466 — — Total $ 1,403 $ 158 $ 546 $ 2,107 $ 1,885,114 $ 1,887,221 $ — $ 5,497 Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, current economic information, and other factors. The Company analyzes loans individually by classifying the loans by credit risk. The Company internally grades all commercial loans at the time of origination. In addition, the Company performs an annual review on the top twenty-five non-homogenous commercial loan relationships as measured by total Company exposure to each borrower. The Company uses the following definitions for credit risk classifications: Pass : These include satisfactory loans that have acceptable levels of risk. Special Mention : Loans classified as special mention have a potential credit weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard : Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the orderly liquidation of debt. Loans classified as substandard are inadequately protected by sound net worth, payment capacity of the borrower, or of the collateral pledged. If weaknesses go uncorrected, there is potential for partial loss of principal and/or interest. Doubtful : Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and unlikely. Loss : Loans classified as a loss are considered to be uncollectible and cannot be justified to continue as viable assets. While there may be the possibility of some recovery in the future, it is not practical or desirable to defer writing off these loans at the present time. The Company has a portfolio of smaller homogenous loans that are not individually risk rated that are included within the single family residential and consumer non-real estate and other loan classes. Generally, these loan classes are rated as “Pass” unless these loans are on non-accrual and are then classified as substandard. The following table presents the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of June 30, 2023 (in thousands): Term Loans 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate Pass $ 109,677 $ 268,807 $ 170,100 $ 15,736 $ 75,506 $ 422,563 $ 4,975 $ 1,067,364 Special Mention — 15,000 44,873 8,398 1,266 2,306 — 71,843 Substandard — 600 2,351 — 7,516 49,166 — 59,633 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 109,677 $ 284,407 $ 217,324 $ 24,134 $ 84,288 $ 474,035 $ 4,975 $ 1,198,840 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Owner-occupied commercial real estate Pass $ 2,569 $ 29,761 $ 9,622 $ 15,225 $ 13,021 $ 44,538 $ 4,535 $ 119,271 Special Mention — — — — — — — — Substandard — 539 — — — 4,656 — 5,195 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 2,569 $ 30,300 $ 9,622 $ 15,225 $ 13,021 $ 49,194 $ 4,535 $ 124,466 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Acquisition, construction & development Pass $ 2,941 $ 26,843 $ 14,504 $ — $ — $ 23,960 $ 1,610 $ 69,858 Special Mention — — — — 779 — — 779 Substandard — — — — — 22,093 — 22,093 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 2,941 $ 26,843 $ 14,504 $ — $ 779 $ 46,053 $ 1,610 $ 92,730 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial & industrial Pass $ 19,732 $ 17,575 $ 8,041 $ 523 $ 41 $ 1,595 $ 11,635 $ 59,142 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 19,732 $ 17,575 $ 8,041 $ 523 $ 41 $ 1,595 $ 11,635 $ 59,142 Year to date gross charge-offs $ — $ — $ — $ 29 $ — $ — $ — $ 29 Single family residential (1-4 units) Pass $ 55,068 $ 130,556 $ 61,981 $ 32,645 $ 41,566 $ 148,187 $ 51,084 $ 521,087 Special Mention — — Substandard — — 291 252 — 1,314 — 1,857 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 55,068 $ 130,556 $ 62,272 $ 32,897 $ 41,566 $ 149,501 $ 51,084 $ 522,944 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer non-real estate and other Pass $ 227 $ 270 $ 161 $ 248 $ 435 $ 397 $ 1,109 $ 2,847 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 227 $ 270 $ 161 $ 248 $ 435 $ 397 $ 1,109 $ 2,847 Year to date gross charge-offs $ 92 $ — $ — $ — $ — $ — $ — $ 92 The value of outstanding loans by credit quality indicators as of December 31, 2022 were as follows (in thousands): Pass Special Mention Substandard Doubtful Loss Total December 31, 2022 Commercial real estate $ 1,011,025 $ 62,907 $ 35,383 $ — $ — $ 1,109,315 Owner-occupied commercial real estate 121,621 1,963 3,530 — — 127,114 Acquisition, construction & development 68,220 836 25,394 — — 94,450 Commercial & industrial 53,273 — 241 — — 53,514 Single family residential (1-4 units) 494,994 55 4,313 — — 499,362 Consumer non-real estate and other 3,466 — — — — 3,466 Total $ 1,752,599 $ 65,761 $ 68,861 $ — $ — $ 1,887,221 The following tables present information about collateral-dependent loans that were individually evaluated for purposes of determining the ACL as of June 30, 2023 (in thousands): Collateral-Dependent Loans With Allowance With No Related Allowance Total Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance June 30, 2023 Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate — — 1,066 1,066 — Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) — — 2,670 2,670 — Consumer non-real estate and other — — — — — Total $ — $ — $ 3,736 $ 3,736 $ — On January 1, 2023, the Company adopted ASU 2022-02 on a modified retrospective basis. ASU 2022-02 eliminates the TDR accounting model and requires that the Company evaluate, based on the accounting for loan modifications, whether the borrower is experiencing financial difficulty, and the modification results in a more-than-insignificant direct change in the contractual cash flows and represents a new loan or a continuation of an existing loan. This change required all loan modifications to be accounted for under the general loan modification guidance in ASC 310-20, Receivables — Nonrefundable Fees and Other Costs, and subjects entities to new disclosure requirements on loan modifications to borrowers experiencing financial difficulty. Upon adoption of CECL, the Company loans classified as TDRs were individually evaluated for the ACL, and the measurement was done either using the collateral-dependent or the discounted cash flow method. The Company may modify loans to borrowers experiencing financial difficulty by providing principal forgiveness, term extension, interest rate reduction, or an other-than-insignificant payment delay. When principal forgiveness is provided, the amount of forgiveness is charged off against the ACL. The Company may also provide multiple types of modifications on an individual loan. For the three and six months ended June 30, 2023, the Company did not extend any modifications to borrowers experiencing financial difficulty that had a more-than-insignificant direct change in the contractual cash flows of the loan. The Company did not extend any modifications that were defined as TDRs during the year ended December 31, 2022.

Deposits

Deposits	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Financial Services, Banking and Thrift [Abstract]
Deposits	DepositsThe aggregate amount of time deposits, each with a minimum denomination of $250,000, was approximately $35.7 million and $32.6 million on March 31, 2023, and December 31, 2022, respectively. Brokered time deposits totaled $389.2 million at March 31, 2023. There were $100.3 million in brokered time deposits at December 31, 2022. Time deposits through the Certificate of Deposit Account Registry Service (“CDARS”) program totaled $13.1 million at March 31, 2023, compared to $11.7 million at December 31, 2022. At March 31, 2023, the scheduled maturities of time deposits for the remaining nine months ending December 31, 2023 and the following five years were as follows (in thousands): As of March 31, 2023 Remaining nine months ending, December 31, 2023 $ 130,833 2024 114,613 2025 133,679 2026 82,141 2027 49,529 2028 77,386 $ 588,181 At March 31, 2023, and December 31, 2022, amounts included in time deposits for individual retirement accounts totaled $35.2 million and $36.9 million, respectively. Overdrafts of $277 thousand and $503 thousand were reclassified to loans as of the three months ended March 31, 2023, and the year ended December 31, 2022, respectively.	DepositsThe aggregate amount of time deposits, each with a minimum denomination of $250,000, was approximately $48.5 million and $32.6 million on June 30, 2023, and December 31, 2022, respectively. Brokered time deposits totaled $389.1 million and $100.3 million as of June 30, 2023, and December 31, 2022, respectively. Time deposits through the Certificate of Deposit Account Registry Service (“CDARS”) program totaled $18.8 million at June 30, 2023, compared to $11.7 million at December 31, 2022. At June 30, 2023, the scheduled maturities of time deposits for the remaining six months ending December 31, 2023 and the following five years were as follows (in thousands): As of June 30, 2023 Remaining six months ending, December 31, 2023 $ 99,479 2024 191,983 2025 132,500 2026 82,716 2027 49,528 2028 77,838 Total $ 634,044 At June 30, 2023, and December 31, 2022, amounts included in time deposits for individual retirement accounts totaled $32.0 million and $36.9 million, respectively. Overdrafts of $102 thousand and $503 thousand were reclassified to loans as of June 30, 2023, and the year ended December 31, 2022, respectively.	DepositsThe aggregate amount of time deposits, each with a minimum denomination of $250,000, was approximately $133.3 million and $52.4 million in 2022 and 2021, respectively. Brokered time deposits totaled $100.3 million at December 31, 2022. There were no brokered time deposits at December 31, 2021. Time deposits through the Certificate of Deposit Account Registry Service (“CDARS”) program totaled $11.7 million at December 31, 2022, compared to $18.9 million at December 31, 2021. Deposits through the CDARS program are generated from major customers with substantial relationships with the Company. At December 31, 2022, the scheduled maturities of time deposits for the next five years were as follows (in thousands): Years ending December 31, 2023 $ 153,075 2024 94,816 2025 45,724 2026 3,449 2027 1,827 $ 298,891 At December 31, 2022 and 2021, amounts included in time deposits for individual retirement accounts totaled $36.9 million and $42.9 million, respectively. Overdrafts of $503 thousand and $94 thousand were reclassified to loans at year ended December 31, 2022 and 2021.

Deposits_2

Deposits	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Financial Services, Banking and Thrift [Abstract]
Deposits	DepositsThe aggregate amount of time deposits, each with a minimum denomination of $250,000, was approximately $35.7 million and $32.6 million on March 31, 2023, and December 31, 2022, respectively. Brokered time deposits totaled $389.2 million at March 31, 2023. There were $100.3 million in brokered time deposits at December 31, 2022. Time deposits through the Certificate of Deposit Account Registry Service (“CDARS”) program totaled $13.1 million at March 31, 2023, compared to $11.7 million at December 31, 2022. At March 31, 2023, the scheduled maturities of time deposits for the remaining nine months ending December 31, 2023 and the following five years were as follows (in thousands): As of March 31, 2023 Remaining nine months ending, December 31, 2023 $ 130,833 2024 114,613 2025 133,679 2026 82,141 2027 49,529 2028 77,386 $ 588,181 At March 31, 2023, and December 31, 2022, amounts included in time deposits for individual retirement accounts totaled $35.2 million and $36.9 million, respectively. Overdrafts of $277 thousand and $503 thousand were reclassified to loans as of the three months ended March 31, 2023, and the year ended December 31, 2022, respectively.	DepositsThe aggregate amount of time deposits, each with a minimum denomination of $250,000, was approximately $48.5 million and $32.6 million on June 30, 2023, and December 31, 2022, respectively. Brokered time deposits totaled $389.1 million and $100.3 million as of June 30, 2023, and December 31, 2022, respectively. Time deposits through the Certificate of Deposit Account Registry Service (“CDARS”) program totaled $18.8 million at June 30, 2023, compared to $11.7 million at December 31, 2022. At June 30, 2023, the scheduled maturities of time deposits for the remaining six months ending December 31, 2023 and the following five years were as follows (in thousands): As of June 30, 2023 Remaining six months ending, December 31, 2023 $ 99,479 2024 191,983 2025 132,500 2026 82,716 2027 49,528 2028 77,838 Total $ 634,044 At June 30, 2023, and December 31, 2022, amounts included in time deposits for individual retirement accounts totaled $32.0 million and $36.9 million, respectively. Overdrafts of $102 thousand and $503 thousand were reclassified to loans as of June 30, 2023, and the year ended December 31, 2022, respectively.	DepositsThe aggregate amount of time deposits, each with a minimum denomination of $250,000, was approximately $133.3 million and $52.4 million in 2022 and 2021, respectively. Brokered time deposits totaled $100.3 million at December 31, 2022. There were no brokered time deposits at December 31, 2021. Time deposits through the Certificate of Deposit Account Registry Service (“CDARS”) program totaled $11.7 million at December 31, 2022, compared to $18.9 million at December 31, 2021. Deposits through the CDARS program are generated from major customers with substantial relationships with the Company. At December 31, 2022, the scheduled maturities of time deposits for the next five years were as follows (in thousands): Years ending December 31, 2023 $ 153,075 2024 94,816 2025 45,724 2026 3,449 2027 1,827 $ 298,891 At December 31, 2022 and 2021, amounts included in time deposits for individual retirement accounts totaled $36.9 million and $42.9 million, respectively. Overdrafts of $503 thousand and $94 thousand were reclassified to loans at year ended December 31, 2022 and 2021.

Deposits_2_3

Deposits	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Financial Services, Banking and Thrift [Abstract]
Deposits	DepositsThe aggregate amount of time deposits, each with a minimum denomination of $250,000, was approximately $35.7 million and $32.6 million on March 31, 2023, and December 31, 2022, respectively. Brokered time deposits totaled $389.2 million at March 31, 2023. There were $100.3 million in brokered time deposits at December 31, 2022. Time deposits through the Certificate of Deposit Account Registry Service (“CDARS”) program totaled $13.1 million at March 31, 2023, compared to $11.7 million at December 31, 2022. At March 31, 2023, the scheduled maturities of time deposits for the remaining nine months ending December 31, 2023 and the following five years were as follows (in thousands): As of March 31, 2023 Remaining nine months ending, December 31, 2023 $ 130,833 2024 114,613 2025 133,679 2026 82,141 2027 49,529 2028 77,386 $ 588,181 At March 31, 2023, and December 31, 2022, amounts included in time deposits for individual retirement accounts totaled $35.2 million and $36.9 million, respectively. Overdrafts of $277 thousand and $503 thousand were reclassified to loans as of the three months ended March 31, 2023, and the year ended December 31, 2022, respectively.	DepositsThe aggregate amount of time deposits, each with a minimum denomination of $250,000, was approximately $48.5 million and $32.6 million on June 30, 2023, and December 31, 2022, respectively. Brokered time deposits totaled $389.1 million and $100.3 million as of June 30, 2023, and December 31, 2022, respectively. Time deposits through the Certificate of Deposit Account Registry Service (“CDARS”) program totaled $18.8 million at June 30, 2023, compared to $11.7 million at December 31, 2022. At June 30, 2023, the scheduled maturities of time deposits for the remaining six months ending December 31, 2023 and the following five years were as follows (in thousands): As of June 30, 2023 Remaining six months ending, December 31, 2023 $ 99,479 2024 191,983 2025 132,500 2026 82,716 2027 49,528 2028 77,838 Total $ 634,044 At June 30, 2023, and December 31, 2022, amounts included in time deposits for individual retirement accounts totaled $32.0 million and $36.9 million, respectively. Overdrafts of $102 thousand and $503 thousand were reclassified to loans as of June 30, 2023, and the year ended December 31, 2022, respectively.	DepositsThe aggregate amount of time deposits, each with a minimum denomination of $250,000, was approximately $133.3 million and $52.4 million in 2022 and 2021, respectively. Brokered time deposits totaled $100.3 million at December 31, 2022. There were no brokered time deposits at December 31, 2021. Time deposits through the Certificate of Deposit Account Registry Service (“CDARS”) program totaled $11.7 million at December 31, 2022, compared to $18.9 million at December 31, 2021. Deposits through the CDARS program are generated from major customers with substantial relationships with the Company. At December 31, 2022, the scheduled maturities of time deposits for the next five years were as follows (in thousands): Years ending December 31, 2023 $ 153,075 2024 94,816 2025 45,724 2026 3,449 2027 1,827 $ 298,891 At December 31, 2022 and 2021, amounts included in time deposits for individual retirement accounts totaled $36.9 million and $42.9 million, respectively. Overdrafts of $503 thousand and $94 thousand were reclassified to loans at year ended December 31, 2022 and 2021.

Federal Home Loan Bank Advances

Federal Home Loan Bank Advances and Other Short-Term Borrowings	12 Months Ended
	Dec. 31, 2022
Federal Home Loan Banks [Abstract]
Federal Home Loan Bank Advances and Other Short-Term Borrowings	Federal Home Loan Bank Advances and Other Short-Term Borrowings The Company has advances outstanding with the Federal Home Loan Bank of Atlanta of $343.1 million and $275 million at December 31, 2022 and 2021, respectively. At December 31, 2022, the interest rate on this debt ranged from 4.13% to 4.57%. At December 31, 2021, the interest rate on this debt ranged from 0.1800% to 0.7725%. The weighted average interest rate at December 31, 2022 and 2021 was 4.422% and 0.545%, respectively. The average balance outstanding during 2022 and 2021 was $269.5 million and $227.0 million, respectively. Each advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. The Company has available an $875.3 million line of credit with the Federal Home Loan Bank of Atlanta. Advances on the line are secured by both securities and loans. The amount of securities and loans pledged against the line as of December 31, 2022 and December 31, 2021 was $698.1 million and $637.2 million, respectively. The contractual maturities of this debt as of December 31, 2022 are as follows (in thousands): Due in 2023 $ 243,100 Due in 2024 100,000 $ 343,100 Federal funds purchased

Advances and Other Borrowings

Advances and Other Borrowings	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Jun. 30, 2023
Debt Disclosure [Abstract]
Advances and Other Borrowings	Advances and Other Borrowings The Company had borrowings of $321.7 million and $343.1 million at March 31, 2023, and December 31, 2022, respectively. At March 31, 2023, the interest rate on this debt ranged from 4.38% to 4.88%. At December 31, 2022, the interest rate on this debt ranged from 4.13% to 4.57%. The average balance outstanding during the three months ending March 31, 2023, and the year ending December 31, 2022, was $358.1 million and $269.5 million, respectively. The Company’s short-term borrowings from time-to-time may consist of advances from the FHLB of Atlanta, unsecured lines from Correspondent Banks, and secured lines from the Federal Discount Window. The Company has available lines of credit with the FHLB of Atlanta and unsecured federal funds lines of credit from correspondent banking relationships. Through these sources, the Company has unused capacity of $809.1 million in remaining borrowing capacity as of March 31, 2023. The Advances on credit lines are secured by both securities and loans. The amount of securities and loans pledged against available lines of credit as of March 31, 2023, and December 31, 2022, was $620.7 million and $698.1 million, respectively. The contractual maturities of this debt as of March 31, 2023, are as follows (in thousands): Due in 2023 $ 171,700 Due in 2024 150,000 $ 321,700	Advances and Other Borrowings The Company had borrowings of $249.0 million and $343.1 million at June 30, 2023, and December 31, 2022, respectively. At June 30, 2023, the interest rate on this debt ranged from 4.38% to 5.20%. At December 31, 2022, the interest rate on this debt ranged from 4.13% to 4.57%. The average balance outstanding during the six months ending June 30, 2023, and the year ending December 31, 2022, was $257.2 million and $269.5 million, respectively. The Company’s short-term borrowings from time-to-time may consist of advances from the FHLB of Atlanta, unsecured lines from Correspondent Banks, and secured lines from the Federal Discount Window. The Company has available lines of credit with the FHLB of Atlanta and unsecured federal funds lines of credit from correspondent banking relationships. Through these sources, the Company has unused capacity of $959.0 million in remaining borrowing capacity as of June 30, 2023. The Advances on credit lines are secured by both securities and loans. The amount of securities and loans pledged against available lines of credit as of June 30, 2023, and December 31, 2022, was $782.9 million and $698.1 million, respectively. As of June 30, 2023, all of the Company’s borrowings will mature within one calendar year. The contractual maturities of these borrowings as of June 30, 2023, are as follows (in thousands): Due in 2023 $ 49,000 Due in 2024 200,000 Total $ 249,000

Advances and Other Borrowings_2

Advances and Other Borrowings	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Jun. 30, 2023
Debt Disclosure [Abstract]
Advances and Other Borrowings	Advances and Other Borrowings The Company had borrowings of $321.7 million and $343.1 million at March 31, 2023, and December 31, 2022, respectively. At March 31, 2023, the interest rate on this debt ranged from 4.38% to 4.88%. At December 31, 2022, the interest rate on this debt ranged from 4.13% to 4.57%. The average balance outstanding during the three months ending March 31, 2023, and the year ending December 31, 2022, was $358.1 million and $269.5 million, respectively. The Company’s short-term borrowings from time-to-time may consist of advances from the FHLB of Atlanta, unsecured lines from Correspondent Banks, and secured lines from the Federal Discount Window. The Company has available lines of credit with the FHLB of Atlanta and unsecured federal funds lines of credit from correspondent banking relationships. Through these sources, the Company has unused capacity of $809.1 million in remaining borrowing capacity as of March 31, 2023. The Advances on credit lines are secured by both securities and loans. The amount of securities and loans pledged against available lines of credit as of March 31, 2023, and December 31, 2022, was $620.7 million and $698.1 million, respectively. The contractual maturities of this debt as of March 31, 2023, are as follows (in thousands): Due in 2023 $ 171,700 Due in 2024 150,000 $ 321,700	Advances and Other Borrowings The Company had borrowings of $249.0 million and $343.1 million at June 30, 2023, and December 31, 2022, respectively. At June 30, 2023, the interest rate on this debt ranged from 4.38% to 5.20%. At December 31, 2022, the interest rate on this debt ranged from 4.13% to 4.57%. The average balance outstanding during the six months ending June 30, 2023, and the year ending December 31, 2022, was $257.2 million and $269.5 million, respectively. The Company’s short-term borrowings from time-to-time may consist of advances from the FHLB of Atlanta, unsecured lines from Correspondent Banks, and secured lines from the Federal Discount Window. The Company has available lines of credit with the FHLB of Atlanta and unsecured federal funds lines of credit from correspondent banking relationships. Through these sources, the Company has unused capacity of $959.0 million in remaining borrowing capacity as of June 30, 2023. The Advances on credit lines are secured by both securities and loans. The amount of securities and loans pledged against available lines of credit as of June 30, 2023, and December 31, 2022, was $782.9 million and $698.1 million, respectively. As of June 30, 2023, all of the Company’s borrowings will mature within one calendar year. The contractual maturities of these borrowings as of June 30, 2023, are as follows (in thousands): Due in 2023 $ 49,000 Due in 2024 200,000 Total $ 249,000

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The income tax expense (benefit) for 2022, 2021, and 2020 was as follows (in thousands): 2022 2021 2020 Current Expense: Federal $ 5,501 $ 5,564 $ 5,770 State 1,388 372 — $ 6,889 $ 5,936 $ 5,770 Deferred Expense: Federal $ 1,318 $ (1,401) $ (3,830) State 79 (258) — $ 1,397 $ (1,659) $ (3,830) Total $ 8,286 $ 4,277 $ 1,940 Deferred income taxes are provided on the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences and net operating losses and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and net operating loss carry-forwards and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deferred tax assets. The Company follows accounting guidance related to accounting for uncertainty in income taxes. Under the “more likely than not” threshold guidelines, the Company recorded $291 thousand of income tax expense. There were no uncertain tax positions as of December 31, 2021 or 2020. The Company’s policy is to account for interest and penalties as a component of income tax expense. The Company is no longer subject to examination by federal, state and local taxing authorities for years before January 1, 2019. The following reconciles income taxes reported in the financial statements to taxes that would be obtained by applying statutory tax rates to income before taxes (in thousands): 2022 2021 2020 Expected taxes using statutory rates $ 10,983 $ 8,493 $ 5,972 Benefit of tax exempt income, net of non-deductible interest (1,694) (1,993) (1,644) Nontaxable income from life insurance (570) (502) (496) Low income tax credits, net of amortization (1,840) (1,843) (1,231) State taxes, net of federal benefit 1,159 294 — Other adjustment, net 248 (172) (661) $ 8,286 $ 4,277 $ 1,940 The net deferred tax amounts in the accompanying Balance Sheets include the following components (in thousands): 2022 2021 Deferred tax assets: Provision for loan losses $ 4,418 $ 6,962 Lease liability 2,171 2,451 Compensation accruals 1,773 1,345 Partnership investments 1,907 1,550 Unrealized losses on securities available-for-sale 34,789 — Tax credit carryforward 7,634 7,272 Deferred state taxes 179 — Other 422 243 $ 53,293 $ 19,823 Deferred tax liabilities: Unrealized gains on securities available-for-sale $ — $ (3,449) Tax over book depreciation (1,555) (1,369) Pension accrual (366) (890) Right of use asset (2,074) (2,349) $ (3,995) $ (8,057) Net deferred tax asset $ 49,298 $ 11,766

Defined Benefit Pension Plan

Defined Benefit Pension Plan	12 Months Ended
	Dec. 31, 2022
Retirement Benefits [Abstract]
Defined Benefit Pension Plan	Defined Benefit Pension PlanThe Company provides pension benefits for eligible employees through a defined benefit pension plan. Employees hired prior to June 1, 2005 participate in the retirement plan on a non-contributing basis and were fully vested after five years of service. The following tables set forth the Plan’s status and related disclosures (in thousands): 2022 2021 Changes in benefit obligation: Benefit obligation at beginning of year $ 42,297 $ 43,371 Service cost 786 998 Interest cost 1,141 1,042 Actuarial (gain) loss (12,549) (2,131) Distributions (1,450) (983) Benefit obligation at end of year $ 30,225 $ 42,297 Change in plan assets: Fair value of plan assets at beginning of year $ 46,017 $ 47,526 Adjustment to beginning of year fair value — — Actual return on plan assets (12,599) (526) Employer contribution — — Distributions (1,450) (983) Fair value of plan assets at end of year $ 31,968 $ 46,017 Funded status recognized as accrued pension cost $ 1,743 $ 3,720 Amounts recognized in accumulated other comprehensive (income) loss: Net loss $ 8,901 $ 7,621 Deferred income tax benefit (1,869) (1,601) Total amount recognized $ 7,032 $ 6,020 Accumulated benefit obligation $ 28,184 $ 38,315 At December 31, 2022, 2021 and 2020, the assumptions used to determine the pension benefit obligation were as follows: 2022 2021 2020 Discount rate 5.00 % 2.76 % 2.42 % Rate of compensation increase 3.00 3.50 3.50 Components of net periodic benefit cost and other amounts recognized in other comprehensive income (in thousands): 2022 2021 2020 Components of net periodic pension cost: Service cost $ 786 $ 998 $ 911 Interest cost 1,141 1,042 1,159 Expected return on plan assets (1,539) (1,612) (1,938) Amortization of prior service costs — — — Amortization of net loss 309 393 488 Net periodic pension costs $ 697 $ 821 $ 620 Other changes recognized in other comprehensive (income) loss Net loss $ 1,589 $ 7 $ 378 Amortization of net loss (309) (393) (488) Deferred tax expense (benefit) (269) 81 23 Total recognized in accumulated other comprehensive (income) loss $ 1,011 $ (305) $ (87) Total recognized in net periodic pension costs and other comprehensive loss $ 1,708 $ 516 $ 533 For the years ended December 31, 2022, 2021 and 2020, the assumptions used to determine net periodic pension cost were as follows: 2022 2021 2020 Discount rate 5.00 % 2.76 % 2.42 % Expected long-term rate of return on plan assets 3.75 3.75 5.10 Annual salary increase 3.00 3.50 3.50 The expected long-term return on plan assets assumption was developed as a weighted average rate based on the target asset allocation of the plan and the long-term capital market assumptions. The overall return for each asset class was developed by combining a long-term inflation component and the associated expected real rates. The development of the capital market assumptions utilized a variety of methodologies, including, but not limited to, historical analysis, stock valuation models, such as dividend discount models, and earnings yield models, expected economic growth outlook, and market yields analysis. The Company’s pension plan asset allocations at December 31, 2022 and 2021 were as follows: 2022 2021 Equity securities 10 % 11 % Debt securities 90 89 Total 100 % 100 % As of December 31, 2022 and 2021, the fair value of plan assets was as follows (in thousands): December 31, 2022 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Cash and cash equivalents $ 102 $ — $ — $ 102 Equity securities — 3,181 — 3,181 Debt securities — 28,749 — 28,749 Total pension assets $ 102 $ 31,930 $ — $ 32,032 December 31, 2021 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Cash and cash equivalents $ 82 $ — $ — $ 82 Equity securities — 5,154 — 5,154 Debt securities — 40,782 — 40,782 Total pension assets $ 82 $ 45,936 $ — $ 46,018 Assets are valued using a combination of methods including quoted prices for similar assets in active or non-active markets. The fund is sufficiently diversified to maintain a reasonable level of risk without imprudently sacrificing return. Investments are selected by officers experienced in financial matters and risk management, and implementation of approved investment strategies is monitored on a regular basis. Both actively and passively managed investment strategies are considered, and funds are allocated across asset classes to develop an efficient investment structure. It is the responsibility of the trustee to consider costs in administering the portfolio, while maintaining high quality investments. Costs include, but are not limited to, management and custodial fees, consulting fees, transaction costs, and other administrative costs which may be charged to the trust. The Company does not expect to contribute to its pension plan in 2023. Estimated future benefit payments, which reflect expected future service, as appropriate, are as follows (in thousands): Years ending December 31, 2023 $ 1,391 2024 1,402 2025 1,387 2026 1,434 2027 1,533 Following 5 years 9,116 Investment and Savings Plan The Company has an investment and savings plan for its employees. In the month following date of hire, an employee is eligible to participate in the investment and savings plan if they are at least 18 years old. A participant may elect to defer up to 90% of their annual compensation, not to exceed limitations established by the Internal Revenue Code. The Company contributes on behalf of each participant who makes the election an amount up to 3.5% of the amount contributed by the participant. The Company’s contributions in 2022, 2021 and 2020 totaled $1.02 million, $1.02 million and $990 thousand, respectively, which were included within pensions and other employee benefits on the Statements of Income. Other Retirement Plans The Company has a deferred compensation plan for some of its directors and senior officers that provides benefits payable at age 65. The deferred compensation is to be paid to the individual or beneficiary over a period of 15 years. Amounts deferred are invested in increasing whole life insurance policies on the participants’ lives with the Company as owner and beneficiary. Amounts recognized for the increase in the cash surrender value of the policies are offset against the expense. The Company recognized net income of $61 thousand in 2022, $57 thousand in 2021 and $51 thousand in 2020, related to this deferred compensation plan. In 2010, the Company adopted a Supplemental Executive Retirement Plan for a number of its executive officers. The plan is intended to be unfunded and maintained primarily for the purpose of providing deferred compensation to its participants. The benefits of the plan vest incrementally based on years of service. Plan expenses for the years ending December 31, 2022, 2021 and 2020, amounted to $290 thousand, $459 thousand and $442 thousand, respectively.

Other Post-Retirement Plans

Other Post-Retirement Plans	12 Months Ended
	Dec. 31, 2022
Retirement Benefits [Abstract]
Other Post-Retirement Plans	Defined Benefit Pension PlanThe Company provides pension benefits for eligible employees through a defined benefit pension plan. Employees hired prior to June 1, 2005 participate in the retirement plan on a non-contributing basis and were fully vested after five years of service. The following tables set forth the Plan’s status and related disclosures (in thousands): 2022 2021 Changes in benefit obligation: Benefit obligation at beginning of year $ 42,297 $ 43,371 Service cost 786 998 Interest cost 1,141 1,042 Actuarial (gain) loss (12,549) (2,131) Distributions (1,450) (983) Benefit obligation at end of year $ 30,225 $ 42,297 Change in plan assets: Fair value of plan assets at beginning of year $ 46,017 $ 47,526 Adjustment to beginning of year fair value — — Actual return on plan assets (12,599) (526) Employer contribution — — Distributions (1,450) (983) Fair value of plan assets at end of year $ 31,968 $ 46,017 Funded status recognized as accrued pension cost $ 1,743 $ 3,720 Amounts recognized in accumulated other comprehensive (income) loss: Net loss $ 8,901 $ 7,621 Deferred income tax benefit (1,869) (1,601) Total amount recognized $ 7,032 $ 6,020 Accumulated benefit obligation $ 28,184 $ 38,315 At December 31, 2022, 2021 and 2020, the assumptions used to determine the pension benefit obligation were as follows: 2022 2021 2020 Discount rate 5.00 % 2.76 % 2.42 % Rate of compensation increase 3.00 3.50 3.50 Components of net periodic benefit cost and other amounts recognized in other comprehensive income (in thousands): 2022 2021 2020 Components of net periodic pension cost: Service cost $ 786 $ 998 $ 911 Interest cost 1,141 1,042 1,159 Expected return on plan assets (1,539) (1,612) (1,938) Amortization of prior service costs — — — Amortization of net loss 309 393 488 Net periodic pension costs $ 697 $ 821 $ 620 Other changes recognized in other comprehensive (income) loss Net loss $ 1,589 $ 7 $ 378 Amortization of net loss (309) (393) (488) Deferred tax expense (benefit) (269) 81 23 Total recognized in accumulated other comprehensive (income) loss $ 1,011 $ (305) $ (87) Total recognized in net periodic pension costs and other comprehensive loss $ 1,708 $ 516 $ 533 For the years ended December 31, 2022, 2021 and 2020, the assumptions used to determine net periodic pension cost were as follows: 2022 2021 2020 Discount rate 5.00 % 2.76 % 2.42 % Expected long-term rate of return on plan assets 3.75 3.75 5.10 Annual salary increase 3.00 3.50 3.50 The expected long-term return on plan assets assumption was developed as a weighted average rate based on the target asset allocation of the plan and the long-term capital market assumptions. The overall return for each asset class was developed by combining a long-term inflation component and the associated expected real rates. The development of the capital market assumptions utilized a variety of methodologies, including, but not limited to, historical analysis, stock valuation models, such as dividend discount models, and earnings yield models, expected economic growth outlook, and market yields analysis. The Company’s pension plan asset allocations at December 31, 2022 and 2021 were as follows: 2022 2021 Equity securities 10 % 11 % Debt securities 90 89 Total 100 % 100 % As of December 31, 2022 and 2021, the fair value of plan assets was as follows (in thousands): December 31, 2022 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Cash and cash equivalents $ 102 $ — $ — $ 102 Equity securities — 3,181 — 3,181 Debt securities — 28,749 — 28,749 Total pension assets $ 102 $ 31,930 $ — $ 32,032 December 31, 2021 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Cash and cash equivalents $ 82 $ — $ — $ 82 Equity securities — 5,154 — 5,154 Debt securities — 40,782 — 40,782 Total pension assets $ 82 $ 45,936 $ — $ 46,018 Assets are valued using a combination of methods including quoted prices for similar assets in active or non-active markets. The fund is sufficiently diversified to maintain a reasonable level of risk without imprudently sacrificing return. Investments are selected by officers experienced in financial matters and risk management, and implementation of approved investment strategies is monitored on a regular basis. Both actively and passively managed investment strategies are considered, and funds are allocated across asset classes to develop an efficient investment structure. It is the responsibility of the trustee to consider costs in administering the portfolio, while maintaining high quality investments. Costs include, but are not limited to, management and custodial fees, consulting fees, transaction costs, and other administrative costs which may be charged to the trust. The Company does not expect to contribute to its pension plan in 2023. Estimated future benefit payments, which reflect expected future service, as appropriate, are as follows (in thousands): Years ending December 31, 2023 $ 1,391 2024 1,402 2025 1,387 2026 1,434 2027 1,533 Following 5 years 9,116 Investment and Savings Plan The Company has an investment and savings plan for its employees. In the month following date of hire, an employee is eligible to participate in the investment and savings plan if they are at least 18 years old. A participant may elect to defer up to 90% of their annual compensation, not to exceed limitations established by the Internal Revenue Code. The Company contributes on behalf of each participant who makes the election an amount up to 3.5% of the amount contributed by the participant. The Company’s contributions in 2022, 2021 and 2020 totaled $1.02 million, $1.02 million and $990 thousand, respectively, which were included within pensions and other employee benefits on the Statements of Income. Other Retirement Plans The Company has a deferred compensation plan for some of its directors and senior officers that provides benefits payable at age 65. The deferred compensation is to be paid to the individual or beneficiary over a period of 15 years. Amounts deferred are invested in increasing whole life insurance policies on the participants’ lives with the Company as owner and beneficiary. Amounts recognized for the increase in the cash surrender value of the policies are offset against the expense. The Company recognized net income of $61 thousand in 2022, $57 thousand in 2021 and $51 thousand in 2020, related to this deferred compensation plan. In 2010, the Company adopted a Supplemental Executive Retirement Plan for a number of its executive officers. The plan is intended to be unfunded and maintained primarily for the purpose of providing deferred compensation to its participants. The benefits of the plan vest incrementally based on years of service. Plan expenses for the years ending December 31, 2022, 2021 and 2020, amounted to $290 thousand, $459 thousand and $442 thousand, respectively.

Leased Property

Leased Property	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Leased Property	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the three months ended (in thousands): March 31, 2023 March 31, 2022 Operating lease income $ 575 $ 43 Total lease income $ 575 $ 43 The remaining maturities of operating lease receivables as of March 31, 2023, are as follows (in thousands): Operating Leases Remaining nine months ending December 31, 2023 $ 1,726 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 13,089 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification March 31, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 6,474 $ 7,255 Finance leases Other assets 2,569 2,620 Total right-of-use assets $ 9,043 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 6,782 $ 7,592 Finance Leases Other liabilities 2,705 2,745 Total lease liabilities $ 9,487 $ 10,337 The components of total lease cost were as follows for the period ending (in thousands): March 31, 2023 March 31, 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 Interest expense 15 16 Operating lease cost 839 594 Total lease cost $ 905 $ 661 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705 The following table presents additional information about the Company’s leases as of March 31, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) March 31, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.51 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.16 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities March 31, 2023 March 31, 2022 Operating cash flows from operating leases $ 868 $ 569 Operating cash flows from finance leases 15 16 Financing cash flows from finance leases 39 38 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — —	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Operating lease income $ 575 $ 43 $ 1,150 $ 86 Total lease income $ 575 $ 43 $ 1,150 $ 86 The remaining maturities of operating lease receivables as of June 30, 2023, are as follows (in thousands): Operating Leases Remaining six months ending December 31, 2023 $ 1,151 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 12,514 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification June 30, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 5,572 $ 7,255 Finance leases Other assets 2,518 2,620 Total right-of-use assets $ 8,090 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 5,837 $ 7,592 Finance leases Other liabilities 2,666 2,745 Total lease liabilities $ 8,503 $ 10,337 The components of total lease cost were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 $ 102 $ 102 Interest expense 15 16 30 32 Operating lease cost 839 594 1,667 1,195 Total lease cost $ 905 $ 661 $ 1,799 $ 1,329 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of June 30, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining six months ending December 31, 2023 $ 1,591 $ 110 2024 2,305 224 2025 849 228 2026 415 233 2027 366 238 Thereafter 625 2,034 Total undiscounted lease payments 6,151 3,067 Less: discount (314) (401) Net lease liabilities $ 5,837 $ 2,666 The following table presents additional information about the Company’s leases as of June 30, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) June 30, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.26 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.06 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities June 30, 2023 June 30, 2022 Operating cash flows from operating leases $ 1,739 $ 1,238 Operating cash flows from finance leases 30 32 Financing cash flows from finance leases 80 76 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — 502	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from less than one year to thirteen years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Statements of Income, were as follows for the year ending (in thousands): 2022 2021 2020 Operating lease income $ 1,309 $ 181 $ 190 Total lease income $ 1,309 $ 181 $ 190 The remaining maturities of operating lease receivables as of December 31, 2022 are as follows (in thousands): Operating Leases Leases 2023 $ 2,354 2024 1,454 2025 1,418 2026 810 2027 509 Thereafter 1,594 Total lease receivables $ 8,139 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either finance or operating. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the Company’s leases range from less than one year to thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Balance Sheets. In the fourth quarter of 2022 the Company sold two buildings in separate transactions and entered into sale-leaseback agreements to lease back the properties for up to one year. The lease terms were at market with third-parties and will result in $881 thousand of operating lease expense in 2023. The sale of the two buildings resulted in a realized gain of $3.7 million. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification 2022 2021 Right-of-use assets: Operating leases Other assets $ 7,255 $ 7,869 Finance leases Other assets 2,620 2,824 Total right-of-use assets $ 9,875 $ 10,693 Lease liabilities: Operating leases Other liabilities $ 7,592 $ 8,268 Finance Leases Other liabilities 2,745 2,897 Total lease liabilities $ 10,337 $ 11,165 The components of total lease cost were as follows for the period ending (in thousands): 2022 2021 2020 Finance lease cost Right-of-use asset amortization $ 204 $ 207 $ 34 Interest expense 63 39 6 Operating lease cost 2,495 2,517 2,344 Total lease cost $ 2,762 $ 2,763 $ 2,384 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2022 are as follows (in thousands): Operating Leases Finance Leases 2023 $ 3,474 $ 220 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 626 2,033 Total undiscounted lease payments 8,014 3,176 Less: Discount (422) (431) Net lease liabilities $ 7,592 $ 2,745 The following table presents additional information about the Company’s leases as of December 31, 2022 and 2021. Supplemental lease information (dollars in thousands) 2022 2021 Finance lease weighted average remaining lease term (years) 12.76 13.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.26 4.12 Operating lease weighted average discount rate 3.19 % 2.89 % Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,557 $ 2,323 Operating cash flows from finance leases 63 39 Financing cash flows from finance leases 152 152 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities 1,558 856
Leased Property	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the three months ended (in thousands): March 31, 2023 March 31, 2022 Operating lease income $ 575 $ 43 Total lease income $ 575 $ 43 The remaining maturities of operating lease receivables as of March 31, 2023, are as follows (in thousands): Operating Leases Remaining nine months ending December 31, 2023 $ 1,726 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 13,089 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification March 31, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 6,474 $ 7,255 Finance leases Other assets 2,569 2,620 Total right-of-use assets $ 9,043 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 6,782 $ 7,592 Finance Leases Other liabilities 2,705 2,745 Total lease liabilities $ 9,487 $ 10,337 The components of total lease cost were as follows for the period ending (in thousands): March 31, 2023 March 31, 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 Interest expense 15 16 Operating lease cost 839 594 Total lease cost $ 905 $ 661 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705 The following table presents additional information about the Company’s leases as of March 31, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) March 31, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.51 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.16 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities March 31, 2023 March 31, 2022 Operating cash flows from operating leases $ 868 $ 569 Operating cash flows from finance leases 15 16 Financing cash flows from finance leases 39 38 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — —	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Operating lease income $ 575 $ 43 $ 1,150 $ 86 Total lease income $ 575 $ 43 $ 1,150 $ 86 The remaining maturities of operating lease receivables as of June 30, 2023, are as follows (in thousands): Operating Leases Remaining six months ending December 31, 2023 $ 1,151 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 12,514 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification June 30, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 5,572 $ 7,255 Finance leases Other assets 2,518 2,620 Total right-of-use assets $ 8,090 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 5,837 $ 7,592 Finance leases Other liabilities 2,666 2,745 Total lease liabilities $ 8,503 $ 10,337 The components of total lease cost were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 $ 102 $ 102 Interest expense 15 16 30 32 Operating lease cost 839 594 1,667 1,195 Total lease cost $ 905 $ 661 $ 1,799 $ 1,329 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of June 30, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining six months ending December 31, 2023 $ 1,591 $ 110 2024 2,305 224 2025 849 228 2026 415 233 2027 366 238 Thereafter 625 2,034 Total undiscounted lease payments 6,151 3,067 Less: discount (314) (401) Net lease liabilities $ 5,837 $ 2,666 The following table presents additional information about the Company’s leases as of June 30, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) June 30, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.26 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.06 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities June 30, 2023 June 30, 2022 Operating cash flows from operating leases $ 1,739 $ 1,238 Operating cash flows from finance leases 30 32 Financing cash flows from finance leases 80 76 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — 502	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from less than one year to thirteen years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Statements of Income, were as follows for the year ending (in thousands): 2022 2021 2020 Operating lease income $ 1,309 $ 181 $ 190 Total lease income $ 1,309 $ 181 $ 190 The remaining maturities of operating lease receivables as of December 31, 2022 are as follows (in thousands): Operating Leases Leases 2023 $ 2,354 2024 1,454 2025 1,418 2026 810 2027 509 Thereafter 1,594 Total lease receivables $ 8,139 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either finance or operating. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the Company’s leases range from less than one year to thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Balance Sheets. In the fourth quarter of 2022 the Company sold two buildings in separate transactions and entered into sale-leaseback agreements to lease back the properties for up to one year. The lease terms were at market with third-parties and will result in $881 thousand of operating lease expense in 2023. The sale of the two buildings resulted in a realized gain of $3.7 million. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification 2022 2021 Right-of-use assets: Operating leases Other assets $ 7,255 $ 7,869 Finance leases Other assets 2,620 2,824 Total right-of-use assets $ 9,875 $ 10,693 Lease liabilities: Operating leases Other liabilities $ 7,592 $ 8,268 Finance Leases Other liabilities 2,745 2,897 Total lease liabilities $ 10,337 $ 11,165 The components of total lease cost were as follows for the period ending (in thousands): 2022 2021 2020 Finance lease cost Right-of-use asset amortization $ 204 $ 207 $ 34 Interest expense 63 39 6 Operating lease cost 2,495 2,517 2,344 Total lease cost $ 2,762 $ 2,763 $ 2,384 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2022 are as follows (in thousands): Operating Leases Finance Leases 2023 $ 3,474 $ 220 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 626 2,033 Total undiscounted lease payments 8,014 3,176 Less: Discount (422) (431) Net lease liabilities $ 7,592 $ 2,745 The following table presents additional information about the Company’s leases as of December 31, 2022 and 2021. Supplemental lease information (dollars in thousands) 2022 2021 Finance lease weighted average remaining lease term (years) 12.76 13.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.26 4.12 Operating lease weighted average discount rate 3.19 % 2.89 % Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,557 $ 2,323 Operating cash flows from finance leases 63 39 Financing cash flows from finance leases 152 152 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities 1,558 856
Leased Property	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the three months ended (in thousands): March 31, 2023 March 31, 2022 Operating lease income $ 575 $ 43 Total lease income $ 575 $ 43 The remaining maturities of operating lease receivables as of March 31, 2023, are as follows (in thousands): Operating Leases Remaining nine months ending December 31, 2023 $ 1,726 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 13,089 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification March 31, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 6,474 $ 7,255 Finance leases Other assets 2,569 2,620 Total right-of-use assets $ 9,043 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 6,782 $ 7,592 Finance Leases Other liabilities 2,705 2,745 Total lease liabilities $ 9,487 $ 10,337 The components of total lease cost were as follows for the period ending (in thousands): March 31, 2023 March 31, 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 Interest expense 15 16 Operating lease cost 839 594 Total lease cost $ 905 $ 661 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705 The following table presents additional information about the Company’s leases as of March 31, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) March 31, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.51 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.16 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities March 31, 2023 March 31, 2022 Operating cash flows from operating leases $ 868 $ 569 Operating cash flows from finance leases 15 16 Financing cash flows from finance leases 39 38 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — —	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Operating lease income $ 575 $ 43 $ 1,150 $ 86 Total lease income $ 575 $ 43 $ 1,150 $ 86 The remaining maturities of operating lease receivables as of June 30, 2023, are as follows (in thousands): Operating Leases Remaining six months ending December 31, 2023 $ 1,151 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 12,514 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification June 30, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 5,572 $ 7,255 Finance leases Other assets 2,518 2,620 Total right-of-use assets $ 8,090 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 5,837 $ 7,592 Finance leases Other liabilities 2,666 2,745 Total lease liabilities $ 8,503 $ 10,337 The components of total lease cost were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 $ 102 $ 102 Interest expense 15 16 30 32 Operating lease cost 839 594 1,667 1,195 Total lease cost $ 905 $ 661 $ 1,799 $ 1,329 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of June 30, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining six months ending December 31, 2023 $ 1,591 $ 110 2024 2,305 224 2025 849 228 2026 415 233 2027 366 238 Thereafter 625 2,034 Total undiscounted lease payments 6,151 3,067 Less: discount (314) (401) Net lease liabilities $ 5,837 $ 2,666 The following table presents additional information about the Company’s leases as of June 30, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) June 30, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.26 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.06 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities June 30, 2023 June 30, 2022 Operating cash flows from operating leases $ 1,739 $ 1,238 Operating cash flows from finance leases 30 32 Financing cash flows from finance leases 80 76 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — 502	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from less than one year to thirteen years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Statements of Income, were as follows for the year ending (in thousands): 2022 2021 2020 Operating lease income $ 1,309 $ 181 $ 190 Total lease income $ 1,309 $ 181 $ 190 The remaining maturities of operating lease receivables as of December 31, 2022 are as follows (in thousands): Operating Leases Leases 2023 $ 2,354 2024 1,454 2025 1,418 2026 810 2027 509 Thereafter 1,594 Total lease receivables $ 8,139 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either finance or operating. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the Company’s leases range from less than one year to thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Balance Sheets. In the fourth quarter of 2022 the Company sold two buildings in separate transactions and entered into sale-leaseback agreements to lease back the properties for up to one year. The lease terms were at market with third-parties and will result in $881 thousand of operating lease expense in 2023. The sale of the two buildings resulted in a realized gain of $3.7 million. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification 2022 2021 Right-of-use assets: Operating leases Other assets $ 7,255 $ 7,869 Finance leases Other assets 2,620 2,824 Total right-of-use assets $ 9,875 $ 10,693 Lease liabilities: Operating leases Other liabilities $ 7,592 $ 8,268 Finance Leases Other liabilities 2,745 2,897 Total lease liabilities $ 10,337 $ 11,165 The components of total lease cost were as follows for the period ending (in thousands): 2022 2021 2020 Finance lease cost Right-of-use asset amortization $ 204 $ 207 $ 34 Interest expense 63 39 6 Operating lease cost 2,495 2,517 2,344 Total lease cost $ 2,762 $ 2,763 $ 2,384 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2022 are as follows (in thousands): Operating Leases Finance Leases 2023 $ 3,474 $ 220 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 626 2,033 Total undiscounted lease payments 8,014 3,176 Less: Discount (422) (431) Net lease liabilities $ 7,592 $ 2,745 The following table presents additional information about the Company’s leases as of December 31, 2022 and 2021. Supplemental lease information (dollars in thousands) 2022 2021 Finance lease weighted average remaining lease term (years) 12.76 13.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.26 4.12 Operating lease weighted average discount rate 3.19 % 2.89 % Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,557 $ 2,323 Operating cash flows from finance leases 63 39 Financing cash flows from finance leases 152 152 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities 1,558 856

Leased Property_2

Leased Property	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Leased Property	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the three months ended (in thousands): March 31, 2023 March 31, 2022 Operating lease income $ 575 $ 43 Total lease income $ 575 $ 43 The remaining maturities of operating lease receivables as of March 31, 2023, are as follows (in thousands): Operating Leases Remaining nine months ending December 31, 2023 $ 1,726 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 13,089 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification March 31, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 6,474 $ 7,255 Finance leases Other assets 2,569 2,620 Total right-of-use assets $ 9,043 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 6,782 $ 7,592 Finance Leases Other liabilities 2,705 2,745 Total lease liabilities $ 9,487 $ 10,337 The components of total lease cost were as follows for the period ending (in thousands): March 31, 2023 March 31, 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 Interest expense 15 16 Operating lease cost 839 594 Total lease cost $ 905 $ 661 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705 The following table presents additional information about the Company’s leases as of March 31, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) March 31, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.51 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.16 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities March 31, 2023 March 31, 2022 Operating cash flows from operating leases $ 868 $ 569 Operating cash flows from finance leases 15 16 Financing cash flows from finance leases 39 38 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — —	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Operating lease income $ 575 $ 43 $ 1,150 $ 86 Total lease income $ 575 $ 43 $ 1,150 $ 86 The remaining maturities of operating lease receivables as of June 30, 2023, are as follows (in thousands): Operating Leases Remaining six months ending December 31, 2023 $ 1,151 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 12,514 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification June 30, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 5,572 $ 7,255 Finance leases Other assets 2,518 2,620 Total right-of-use assets $ 8,090 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 5,837 $ 7,592 Finance leases Other liabilities 2,666 2,745 Total lease liabilities $ 8,503 $ 10,337 The components of total lease cost were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 $ 102 $ 102 Interest expense 15 16 30 32 Operating lease cost 839 594 1,667 1,195 Total lease cost $ 905 $ 661 $ 1,799 $ 1,329 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of June 30, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining six months ending December 31, 2023 $ 1,591 $ 110 2024 2,305 224 2025 849 228 2026 415 233 2027 366 238 Thereafter 625 2,034 Total undiscounted lease payments 6,151 3,067 Less: discount (314) (401) Net lease liabilities $ 5,837 $ 2,666 The following table presents additional information about the Company’s leases as of June 30, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) June 30, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.26 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.06 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities June 30, 2023 June 30, 2022 Operating cash flows from operating leases $ 1,739 $ 1,238 Operating cash flows from finance leases 30 32 Financing cash flows from finance leases 80 76 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — 502	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from less than one year to thirteen years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Statements of Income, were as follows for the year ending (in thousands): 2022 2021 2020 Operating lease income $ 1,309 $ 181 $ 190 Total lease income $ 1,309 $ 181 $ 190 The remaining maturities of operating lease receivables as of December 31, 2022 are as follows (in thousands): Operating Leases Leases 2023 $ 2,354 2024 1,454 2025 1,418 2026 810 2027 509 Thereafter 1,594 Total lease receivables $ 8,139 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either finance or operating. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the Company’s leases range from less than one year to thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Balance Sheets. In the fourth quarter of 2022 the Company sold two buildings in separate transactions and entered into sale-leaseback agreements to lease back the properties for up to one year. The lease terms were at market with third-parties and will result in $881 thousand of operating lease expense in 2023. The sale of the two buildings resulted in a realized gain of $3.7 million. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification 2022 2021 Right-of-use assets: Operating leases Other assets $ 7,255 $ 7,869 Finance leases Other assets 2,620 2,824 Total right-of-use assets $ 9,875 $ 10,693 Lease liabilities: Operating leases Other liabilities $ 7,592 $ 8,268 Finance Leases Other liabilities 2,745 2,897 Total lease liabilities $ 10,337 $ 11,165 The components of total lease cost were as follows for the period ending (in thousands): 2022 2021 2020 Finance lease cost Right-of-use asset amortization $ 204 $ 207 $ 34 Interest expense 63 39 6 Operating lease cost 2,495 2,517 2,344 Total lease cost $ 2,762 $ 2,763 $ 2,384 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2022 are as follows (in thousands): Operating Leases Finance Leases 2023 $ 3,474 $ 220 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 626 2,033 Total undiscounted lease payments 8,014 3,176 Less: Discount (422) (431) Net lease liabilities $ 7,592 $ 2,745 The following table presents additional information about the Company’s leases as of December 31, 2022 and 2021. Supplemental lease information (dollars in thousands) 2022 2021 Finance lease weighted average remaining lease term (years) 12.76 13.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.26 4.12 Operating lease weighted average discount rate 3.19 % 2.89 % Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,557 $ 2,323 Operating cash flows from finance leases 63 39 Financing cash flows from finance leases 152 152 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities 1,558 856
Leased Property	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the three months ended (in thousands): March 31, 2023 March 31, 2022 Operating lease income $ 575 $ 43 Total lease income $ 575 $ 43 The remaining maturities of operating lease receivables as of March 31, 2023, are as follows (in thousands): Operating Leases Remaining nine months ending December 31, 2023 $ 1,726 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 13,089 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification March 31, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 6,474 $ 7,255 Finance leases Other assets 2,569 2,620 Total right-of-use assets $ 9,043 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 6,782 $ 7,592 Finance Leases Other liabilities 2,705 2,745 Total lease liabilities $ 9,487 $ 10,337 The components of total lease cost were as follows for the period ending (in thousands): March 31, 2023 March 31, 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 Interest expense 15 16 Operating lease cost 839 594 Total lease cost $ 905 $ 661 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705 The following table presents additional information about the Company’s leases as of March 31, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) March 31, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.51 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.16 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities March 31, 2023 March 31, 2022 Operating cash flows from operating leases $ 868 $ 569 Operating cash flows from finance leases 15 16 Financing cash flows from finance leases 39 38 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — —	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Operating lease income $ 575 $ 43 $ 1,150 $ 86 Total lease income $ 575 $ 43 $ 1,150 $ 86 The remaining maturities of operating lease receivables as of June 30, 2023, are as follows (in thousands): Operating Leases Remaining six months ending December 31, 2023 $ 1,151 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 12,514 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification June 30, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 5,572 $ 7,255 Finance leases Other assets 2,518 2,620 Total right-of-use assets $ 8,090 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 5,837 $ 7,592 Finance leases Other liabilities 2,666 2,745 Total lease liabilities $ 8,503 $ 10,337 The components of total lease cost were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 $ 102 $ 102 Interest expense 15 16 30 32 Operating lease cost 839 594 1,667 1,195 Total lease cost $ 905 $ 661 $ 1,799 $ 1,329 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of June 30, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining six months ending December 31, 2023 $ 1,591 $ 110 2024 2,305 224 2025 849 228 2026 415 233 2027 366 238 Thereafter 625 2,034 Total undiscounted lease payments 6,151 3,067 Less: discount (314) (401) Net lease liabilities $ 5,837 $ 2,666 The following table presents additional information about the Company’s leases as of June 30, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) June 30, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.26 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.06 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities June 30, 2023 June 30, 2022 Operating cash flows from operating leases $ 1,739 $ 1,238 Operating cash flows from finance leases 30 32 Financing cash flows from finance leases 80 76 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — 502	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from less than one year to thirteen years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Statements of Income, were as follows for the year ending (in thousands): 2022 2021 2020 Operating lease income $ 1,309 $ 181 $ 190 Total lease income $ 1,309 $ 181 $ 190 The remaining maturities of operating lease receivables as of December 31, 2022 are as follows (in thousands): Operating Leases Leases 2023 $ 2,354 2024 1,454 2025 1,418 2026 810 2027 509 Thereafter 1,594 Total lease receivables $ 8,139 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either finance or operating. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the Company’s leases range from less than one year to thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Balance Sheets. In the fourth quarter of 2022 the Company sold two buildings in separate transactions and entered into sale-leaseback agreements to lease back the properties for up to one year. The lease terms were at market with third-parties and will result in $881 thousand of operating lease expense in 2023. The sale of the two buildings resulted in a realized gain of $3.7 million. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification 2022 2021 Right-of-use assets: Operating leases Other assets $ 7,255 $ 7,869 Finance leases Other assets 2,620 2,824 Total right-of-use assets $ 9,875 $ 10,693 Lease liabilities: Operating leases Other liabilities $ 7,592 $ 8,268 Finance Leases Other liabilities 2,745 2,897 Total lease liabilities $ 10,337 $ 11,165 The components of total lease cost were as follows for the period ending (in thousands): 2022 2021 2020 Finance lease cost Right-of-use asset amortization $ 204 $ 207 $ 34 Interest expense 63 39 6 Operating lease cost 2,495 2,517 2,344 Total lease cost $ 2,762 $ 2,763 $ 2,384 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2022 are as follows (in thousands): Operating Leases Finance Leases 2023 $ 3,474 $ 220 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 626 2,033 Total undiscounted lease payments 8,014 3,176 Less: Discount (422) (431) Net lease liabilities $ 7,592 $ 2,745 The following table presents additional information about the Company’s leases as of December 31, 2022 and 2021. Supplemental lease information (dollars in thousands) 2022 2021 Finance lease weighted average remaining lease term (years) 12.76 13.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.26 4.12 Operating lease weighted average discount rate 3.19 % 2.89 % Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,557 $ 2,323 Operating cash flows from finance leases 63 39 Financing cash flows from finance leases 152 152 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities 1,558 856
Leased Property	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the three months ended (in thousands): March 31, 2023 March 31, 2022 Operating lease income $ 575 $ 43 Total lease income $ 575 $ 43 The remaining maturities of operating lease receivables as of March 31, 2023, are as follows (in thousands): Operating Leases Remaining nine months ending December 31, 2023 $ 1,726 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 13,089 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification March 31, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 6,474 $ 7,255 Finance leases Other assets 2,569 2,620 Total right-of-use assets $ 9,043 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 6,782 $ 7,592 Finance Leases Other liabilities 2,705 2,745 Total lease liabilities $ 9,487 $ 10,337 The components of total lease cost were as follows for the period ending (in thousands): March 31, 2023 March 31, 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 Interest expense 15 16 Operating lease cost 839 594 Total lease cost $ 905 $ 661 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705 The following table presents additional information about the Company’s leases as of March 31, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) March 31, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.51 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.16 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities March 31, 2023 March 31, 2022 Operating cash flows from operating leases $ 868 $ 569 Operating cash flows from finance leases 15 16 Financing cash flows from finance leases 39 38 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — —	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Operating lease income $ 575 $ 43 $ 1,150 $ 86 Total lease income $ 575 $ 43 $ 1,150 $ 86 The remaining maturities of operating lease receivables as of June 30, 2023, are as follows (in thousands): Operating Leases Remaining six months ending December 31, 2023 $ 1,151 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 12,514 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification June 30, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 5,572 $ 7,255 Finance leases Other assets 2,518 2,620 Total right-of-use assets $ 8,090 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 5,837 $ 7,592 Finance leases Other liabilities 2,666 2,745 Total lease liabilities $ 8,503 $ 10,337 The components of total lease cost were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 $ 102 $ 102 Interest expense 15 16 30 32 Operating lease cost 839 594 1,667 1,195 Total lease cost $ 905 $ 661 $ 1,799 $ 1,329 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of June 30, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining six months ending December 31, 2023 $ 1,591 $ 110 2024 2,305 224 2025 849 228 2026 415 233 2027 366 238 Thereafter 625 2,034 Total undiscounted lease payments 6,151 3,067 Less: discount (314) (401) Net lease liabilities $ 5,837 $ 2,666 The following table presents additional information about the Company’s leases as of June 30, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) June 30, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.26 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.06 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities June 30, 2023 June 30, 2022 Operating cash flows from operating leases $ 1,739 $ 1,238 Operating cash flows from finance leases 30 32 Financing cash flows from finance leases 80 76 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — 502	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from less than one year to thirteen years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Statements of Income, were as follows for the year ending (in thousands): 2022 2021 2020 Operating lease income $ 1,309 $ 181 $ 190 Total lease income $ 1,309 $ 181 $ 190 The remaining maturities of operating lease receivables as of December 31, 2022 are as follows (in thousands): Operating Leases Leases 2023 $ 2,354 2024 1,454 2025 1,418 2026 810 2027 509 Thereafter 1,594 Total lease receivables $ 8,139 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either finance or operating. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the Company’s leases range from less than one year to thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Balance Sheets. In the fourth quarter of 2022 the Company sold two buildings in separate transactions and entered into sale-leaseback agreements to lease back the properties for up to one year. The lease terms were at market with third-parties and will result in $881 thousand of operating lease expense in 2023. The sale of the two buildings resulted in a realized gain of $3.7 million. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification 2022 2021 Right-of-use assets: Operating leases Other assets $ 7,255 $ 7,869 Finance leases Other assets 2,620 2,824 Total right-of-use assets $ 9,875 $ 10,693 Lease liabilities: Operating leases Other liabilities $ 7,592 $ 8,268 Finance Leases Other liabilities 2,745 2,897 Total lease liabilities $ 10,337 $ 11,165 The components of total lease cost were as follows for the period ending (in thousands): 2022 2021 2020 Finance lease cost Right-of-use asset amortization $ 204 $ 207 $ 34 Interest expense 63 39 6 Operating lease cost 2,495 2,517 2,344 Total lease cost $ 2,762 $ 2,763 $ 2,384 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2022 are as follows (in thousands): Operating Leases Finance Leases 2023 $ 3,474 $ 220 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 626 2,033 Total undiscounted lease payments 8,014 3,176 Less: Discount (422) (431) Net lease liabilities $ 7,592 $ 2,745 The following table presents additional information about the Company’s leases as of December 31, 2022 and 2021. Supplemental lease information (dollars in thousands) 2022 2021 Finance lease weighted average remaining lease term (years) 12.76 13.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.26 4.12 Operating lease weighted average discount rate 3.19 % 2.89 % Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,557 $ 2,323 Operating cash flows from finance leases 63 39 Financing cash flows from finance leases 152 152 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities 1,558 856

Leased Property_2_3

Leased Property	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Leased Property	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the three months ended (in thousands): March 31, 2023 March 31, 2022 Operating lease income $ 575 $ 43 Total lease income $ 575 $ 43 The remaining maturities of operating lease receivables as of March 31, 2023, are as follows (in thousands): Operating Leases Remaining nine months ending December 31, 2023 $ 1,726 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 13,089 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification March 31, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 6,474 $ 7,255 Finance leases Other assets 2,569 2,620 Total right-of-use assets $ 9,043 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 6,782 $ 7,592 Finance Leases Other liabilities 2,705 2,745 Total lease liabilities $ 9,487 $ 10,337 The components of total lease cost were as follows for the period ending (in thousands): March 31, 2023 March 31, 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 Interest expense 15 16 Operating lease cost 839 594 Total lease cost $ 905 $ 661 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705 The following table presents additional information about the Company’s leases as of March 31, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) March 31, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.51 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.16 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities March 31, 2023 March 31, 2022 Operating cash flows from operating leases $ 868 $ 569 Operating cash flows from finance leases 15 16 Financing cash flows from finance leases 39 38 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — —	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Operating lease income $ 575 $ 43 $ 1,150 $ 86 Total lease income $ 575 $ 43 $ 1,150 $ 86 The remaining maturities of operating lease receivables as of June 30, 2023, are as follows (in thousands): Operating Leases Remaining six months ending December 31, 2023 $ 1,151 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 12,514 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification June 30, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 5,572 $ 7,255 Finance leases Other assets 2,518 2,620 Total right-of-use assets $ 8,090 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 5,837 $ 7,592 Finance leases Other liabilities 2,666 2,745 Total lease liabilities $ 8,503 $ 10,337 The components of total lease cost were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 $ 102 $ 102 Interest expense 15 16 30 32 Operating lease cost 839 594 1,667 1,195 Total lease cost $ 905 $ 661 $ 1,799 $ 1,329 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of June 30, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining six months ending December 31, 2023 $ 1,591 $ 110 2024 2,305 224 2025 849 228 2026 415 233 2027 366 238 Thereafter 625 2,034 Total undiscounted lease payments 6,151 3,067 Less: discount (314) (401) Net lease liabilities $ 5,837 $ 2,666 The following table presents additional information about the Company’s leases as of June 30, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) June 30, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.26 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.06 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities June 30, 2023 June 30, 2022 Operating cash flows from operating leases $ 1,739 $ 1,238 Operating cash flows from finance leases 30 32 Financing cash flows from finance leases 80 76 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — 502	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from less than one year to thirteen years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Statements of Income, were as follows for the year ending (in thousands): 2022 2021 2020 Operating lease income $ 1,309 $ 181 $ 190 Total lease income $ 1,309 $ 181 $ 190 The remaining maturities of operating lease receivables as of December 31, 2022 are as follows (in thousands): Operating Leases Leases 2023 $ 2,354 2024 1,454 2025 1,418 2026 810 2027 509 Thereafter 1,594 Total lease receivables $ 8,139 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either finance or operating. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the Company’s leases range from less than one year to thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Balance Sheets. In the fourth quarter of 2022 the Company sold two buildings in separate transactions and entered into sale-leaseback agreements to lease back the properties for up to one year. The lease terms were at market with third-parties and will result in $881 thousand of operating lease expense in 2023. The sale of the two buildings resulted in a realized gain of $3.7 million. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification 2022 2021 Right-of-use assets: Operating leases Other assets $ 7,255 $ 7,869 Finance leases Other assets 2,620 2,824 Total right-of-use assets $ 9,875 $ 10,693 Lease liabilities: Operating leases Other liabilities $ 7,592 $ 8,268 Finance Leases Other liabilities 2,745 2,897 Total lease liabilities $ 10,337 $ 11,165 The components of total lease cost were as follows for the period ending (in thousands): 2022 2021 2020 Finance lease cost Right-of-use asset amortization $ 204 $ 207 $ 34 Interest expense 63 39 6 Operating lease cost 2,495 2,517 2,344 Total lease cost $ 2,762 $ 2,763 $ 2,384 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2022 are as follows (in thousands): Operating Leases Finance Leases 2023 $ 3,474 $ 220 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 626 2,033 Total undiscounted lease payments 8,014 3,176 Less: Discount (422) (431) Net lease liabilities $ 7,592 $ 2,745 The following table presents additional information about the Company’s leases as of December 31, 2022 and 2021. Supplemental lease information (dollars in thousands) 2022 2021 Finance lease weighted average remaining lease term (years) 12.76 13.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.26 4.12 Operating lease weighted average discount rate 3.19 % 2.89 % Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,557 $ 2,323 Operating cash flows from finance leases 63 39 Financing cash flows from finance leases 152 152 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities 1,558 856
Leased Property	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the three months ended (in thousands): March 31, 2023 March 31, 2022 Operating lease income $ 575 $ 43 Total lease income $ 575 $ 43 The remaining maturities of operating lease receivables as of March 31, 2023, are as follows (in thousands): Operating Leases Remaining nine months ending December 31, 2023 $ 1,726 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 13,089 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification March 31, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 6,474 $ 7,255 Finance leases Other assets 2,569 2,620 Total right-of-use assets $ 9,043 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 6,782 $ 7,592 Finance Leases Other liabilities 2,705 2,745 Total lease liabilities $ 9,487 $ 10,337 The components of total lease cost were as follows for the period ending (in thousands): March 31, 2023 March 31, 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 Interest expense 15 16 Operating lease cost 839 594 Total lease cost $ 905 $ 661 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705 The following table presents additional information about the Company’s leases as of March 31, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) March 31, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.51 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.16 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities March 31, 2023 March 31, 2022 Operating cash flows from operating leases $ 868 $ 569 Operating cash flows from finance leases 15 16 Financing cash flows from finance leases 39 38 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — —	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Operating lease income $ 575 $ 43 $ 1,150 $ 86 Total lease income $ 575 $ 43 $ 1,150 $ 86 The remaining maturities of operating lease receivables as of June 30, 2023, are as follows (in thousands): Operating Leases Remaining six months ending December 31, 2023 $ 1,151 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 12,514 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification June 30, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 5,572 $ 7,255 Finance leases Other assets 2,518 2,620 Total right-of-use assets $ 8,090 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 5,837 $ 7,592 Finance leases Other liabilities 2,666 2,745 Total lease liabilities $ 8,503 $ 10,337 The components of total lease cost were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 $ 102 $ 102 Interest expense 15 16 30 32 Operating lease cost 839 594 1,667 1,195 Total lease cost $ 905 $ 661 $ 1,799 $ 1,329 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of June 30, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining six months ending December 31, 2023 $ 1,591 $ 110 2024 2,305 224 2025 849 228 2026 415 233 2027 366 238 Thereafter 625 2,034 Total undiscounted lease payments 6,151 3,067 Less: discount (314) (401) Net lease liabilities $ 5,837 $ 2,666 The following table presents additional information about the Company’s leases as of June 30, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) June 30, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.26 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.06 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities June 30, 2023 June 30, 2022 Operating cash flows from operating leases $ 1,739 $ 1,238 Operating cash flows from finance leases 30 32 Financing cash flows from finance leases 80 76 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — 502	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from less than one year to thirteen years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Statements of Income, were as follows for the year ending (in thousands): 2022 2021 2020 Operating lease income $ 1,309 $ 181 $ 190 Total lease income $ 1,309 $ 181 $ 190 The remaining maturities of operating lease receivables as of December 31, 2022 are as follows (in thousands): Operating Leases Leases 2023 $ 2,354 2024 1,454 2025 1,418 2026 810 2027 509 Thereafter 1,594 Total lease receivables $ 8,139 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either finance or operating. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the Company’s leases range from less than one year to thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Balance Sheets. In the fourth quarter of 2022 the Company sold two buildings in separate transactions and entered into sale-leaseback agreements to lease back the properties for up to one year. The lease terms were at market with third-parties and will result in $881 thousand of operating lease expense in 2023. The sale of the two buildings resulted in a realized gain of $3.7 million. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification 2022 2021 Right-of-use assets: Operating leases Other assets $ 7,255 $ 7,869 Finance leases Other assets 2,620 2,824 Total right-of-use assets $ 9,875 $ 10,693 Lease liabilities: Operating leases Other liabilities $ 7,592 $ 8,268 Finance Leases Other liabilities 2,745 2,897 Total lease liabilities $ 10,337 $ 11,165 The components of total lease cost were as follows for the period ending (in thousands): 2022 2021 2020 Finance lease cost Right-of-use asset amortization $ 204 $ 207 $ 34 Interest expense 63 39 6 Operating lease cost 2,495 2,517 2,344 Total lease cost $ 2,762 $ 2,763 $ 2,384 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2022 are as follows (in thousands): Operating Leases Finance Leases 2023 $ 3,474 $ 220 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 626 2,033 Total undiscounted lease payments 8,014 3,176 Less: Discount (422) (431) Net lease liabilities $ 7,592 $ 2,745 The following table presents additional information about the Company’s leases as of December 31, 2022 and 2021. Supplemental lease information (dollars in thousands) 2022 2021 Finance lease weighted average remaining lease term (years) 12.76 13.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.26 4.12 Operating lease weighted average discount rate 3.19 % 2.89 % Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,557 $ 2,323 Operating cash flows from finance leases 63 39 Financing cash flows from finance leases 152 152 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities 1,558 856
Leased Property	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the three months ended (in thousands): March 31, 2023 March 31, 2022 Operating lease income $ 575 $ 43 Total lease income $ 575 $ 43 The remaining maturities of operating lease receivables as of March 31, 2023, are as follows (in thousands): Operating Leases Remaining nine months ending December 31, 2023 $ 1,726 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 13,089 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification March 31, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 6,474 $ 7,255 Finance leases Other assets 2,569 2,620 Total right-of-use assets $ 9,043 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 6,782 $ 7,592 Finance Leases Other liabilities 2,705 2,745 Total lease liabilities $ 9,487 $ 10,337 The components of total lease cost were as follows for the period ending (in thousands): March 31, 2023 March 31, 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 Interest expense 15 16 Operating lease cost 839 594 Total lease cost $ 905 $ 661 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705 The following table presents additional information about the Company’s leases as of March 31, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) March 31, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.51 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.16 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities March 31, 2023 March 31, 2022 Operating cash flows from operating leases $ 868 $ 569 Operating cash flows from finance leases 15 16 Financing cash flows from finance leases 39 38 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — —	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from around two years to around twelve years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Operating lease income $ 575 $ 43 $ 1,150 $ 86 Total lease income $ 575 $ 43 $ 1,150 $ 86 The remaining maturities of operating lease receivables as of June 30, 2023, are as follows (in thousands): Operating Leases Remaining six months ending December 31, 2023 $ 1,151 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 12,514 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either a finance or operating lease. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the terms of the Company’s leases range from less than one year to around thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification June 30, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 5,572 $ 7,255 Finance leases Other assets 2,518 2,620 Total right-of-use assets $ 8,090 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 5,837 $ 7,592 Finance leases Other liabilities 2,666 2,745 Total lease liabilities $ 8,503 $ 10,337 The components of total lease cost were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 $ 102 $ 102 Interest expense 15 16 30 32 Operating lease cost 839 594 1,667 1,195 Total lease cost $ 905 $ 661 $ 1,799 $ 1,329 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of June 30, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining six months ending December 31, 2023 $ 1,591 $ 110 2024 2,305 224 2025 849 228 2026 415 233 2027 366 238 Thereafter 625 2,034 Total undiscounted lease payments 6,151 3,067 Less: discount (314) (401) Net lease liabilities $ 5,837 $ 2,666 The following table presents additional information about the Company’s leases as of June 30, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) June 30, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.26 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.06 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities June 30, 2023 June 30, 2022 Operating cash flows from operating leases $ 1,739 $ 1,238 Operating cash flows from finance leases 30 32 Financing cash flows from finance leases 80 76 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — 502	Leased Property Lessor Arrangements The Company enters into operating leases with customers to lease vacant space in certain owned premises that is not being used by the Company. These operating leases are typically payable in monthly installments with terms ranging from less than one year to thirteen years and may contain renewal options. The components of lease income, which was included in non-interest expense on the Statements of Income, were as follows for the year ending (in thousands): 2022 2021 2020 Operating lease income $ 1,309 $ 181 $ 190 Total lease income $ 1,309 $ 181 $ 190 The remaining maturities of operating lease receivables as of December 31, 2022 are as follows (in thousands): Operating Leases Leases 2023 $ 2,354 2024 1,454 2025 1,418 2026 810 2027 509 Thereafter 1,594 Total lease receivables $ 8,139 Lessee Arrangements The Company has entered into leases for branches and office space. The leases are evaluated for whether the lease will be classified as either finance or operating. Certain leases offer the option to extend the lease term, and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. Including renewal options, the Company’s leases range from less than one year to thirteen years. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. These cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Balance Sheets. In the fourth quarter of 2022 the Company sold two buildings in separate transactions and entered into sale-leaseback agreements to lease back the properties for up to one year. The lease terms were at market with third-parties and will result in $881 thousand of operating lease expense in 2023. The sale of the two buildings resulted in a realized gain of $3.7 million. Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification 2022 2021 Right-of-use assets: Operating leases Other assets $ 7,255 $ 7,869 Finance leases Other assets 2,620 2,824 Total right-of-use assets $ 9,875 $ 10,693 Lease liabilities: Operating leases Other liabilities $ 7,592 $ 8,268 Finance Leases Other liabilities 2,745 2,897 Total lease liabilities $ 10,337 $ 11,165 The components of total lease cost were as follows for the period ending (in thousands): 2022 2021 2020 Finance lease cost Right-of-use asset amortization $ 204 $ 207 $ 34 Interest expense 63 39 6 Operating lease cost 2,495 2,517 2,344 Total lease cost $ 2,762 $ 2,763 $ 2,384 The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2022 are as follows (in thousands): Operating Leases Finance Leases 2023 $ 3,474 $ 220 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 626 2,033 Total undiscounted lease payments 8,014 3,176 Less: Discount (422) (431) Net lease liabilities $ 7,592 $ 2,745 The following table presents additional information about the Company’s leases as of December 31, 2022 and 2021. Supplemental lease information (dollars in thousands) 2022 2021 Finance lease weighted average remaining lease term (years) 12.76 13.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.26 4.12 Operating lease weighted average discount rate 3.19 % 2.89 % Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,557 $ 2,323 Operating cash flows from finance leases 63 39 Financing cash flows from finance leases 152 152 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities 1,558 856

Regulatory Capital Matters

Regulatory Capital Matters	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Regulatory Capital Requirements under Banking Regulations [Abstract]
Regulatory Capital Matters	Regulatory Capital Matters Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, “prompt corrective action” regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under the Basel Committee on Banking Supervision’s capital guidelines for U.S. Banks (“Basel III rules”), an entity must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The net unrealized gain or loss on AFS securities is not included in computing regulatory capital. Management believes as of March 31, 2023, the Company and the Bank meet all capital adequacy requirements to which they are subject. “Prompt corrective action” regulations provide five classifications: “well capitalized”, “adequately capitalized”, “undercapitalized”, “significantly undercapitalized”, and “critically undercapitalized”, although these terms are not used to represent overall financial condition. If “adequately capitalized”, regulatory approval is required to accept brokered deposits. If “undercapitalized”, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of March 31, 2023, and December 31, 2022, the most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework for “prompt corrective action”. The following table presents the actual and required capital amounts and ratios for the Company and the Bank at March 31, 2023, and December 31, 2022 (in thousands except for ratios). Actual Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of March 31, 2023 Total Capital to risk weighted assets Consolidated $ 439,563 18.65 % $ 247,459 ≥ 10.5% $ 235,675 ≥ 10.0% Burke & Herbert Bank & Trust 436,046 18.50 247,528 ≥ 10.5 235,741 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 413,592 17.55 200,324 ≥ 8.5 188,540 ≥ 8.0 Burke & Herbert Bank & Trust 410,075 17.40 200,380 ≥ 8.5 188,593 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 413,592 17.55 164,973 ≥ 7.0 153,189 ≥ 6.5 Burke & Herbert Bank & Trust 410,075 17.40 165,019 ≥ 7.0 153,232 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 413,592 11.19 147,859 ≥ 4.0 184,824 ≥ 5.0 Burke & Herbert Bank & Trust 410,075 11.09 147,913 ≥ 4.0 184,891 ≥ 5.0 As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 241,325 ≥ 10.5% $ 229,834 ≥ 10.0% Burke & Herbert Bank & Trust 432,290 18.81 241,368 ≥ 10.5 229,874 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 195,358 ≥ 8.5 186,867 ≥ 8.0 Burke & Herbert Bank & Trust 411,251 17.89 195,393 ≥ 8.5 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 160,883 ≥ 7.0 149,392 ≥ 6.5 Burke & Herbert Bank & Trust 411,251 17.89 160,912 ≥ 7.0 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 182,007 ≥ 5.0 Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 5.0 The Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. As of March 31, 2023, approximately $188.5 million of retained earnings was available for dividend declaration without regulatory approval.	Regulatory Capital MattersBanks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, “prompt corrective action” regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under the Basel Committee on Banking Supervision’s capital guidelines for U.S. Banks (“Basel III rules”), an entity must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The net unrealized gain or loss on AFS securities is not included in computing regulatory capital. Management believes as of June 30, 2023, the Company and the Bank meet all capital adequacy requirements to which they are subject. “Prompt corrective action” regulations provide five classifications: “well capitalized”, “adequately capitalized”, “undercapitalized”, “significantly undercapitalized”, and “critically undercapitalized”, although these terms are not used to represent overall financial condition. If “adequately capitalized”, regulatory approval is required to accept brokered deposits. If “undercapitalized”, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of June 30, 2023, and December 31, 2022, the most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework for “prompt corrective action”. The following table presents the actual and required capital amounts and ratios for the Company and the Bank at June 30, 2023, and December 31, 2022 (in thousands except for ratios). Actual Minimum Required for Capital Adequacy Purposes (includes applicable Capital Conservation Buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of June 30, 2023 Total Capital to risk weighted assets Consolidated $ 442,338 18.71 % $ 248,273 ≥ 10.5% $ 236,450 ≥ 10.0% Burke & Herbert Bank & Trust 439,212 18.57 248,365 ≥ 10.5 236,538 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 416,249 17.60 200,983 ≥ 8.5 189,160 ≥ 8.0 Burke & Herbert Bank & Trust 413,123 17.47 201,057 ≥ 8.5 189,230 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 416,249 17.60 165,515 ≥ 7.0 153,693 ≥ 6.5 Burke & Herbert Bank & Trust 413,123 17.47 165,576 ≥ 7.0 153,750 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 416,249 11.20 148,725 ≥ 4.0 185,906 ≥ 5.0 Burke & Herbert Bank & Trust 413,123 11.11 148,770 ≥ 4.0 185,962 ≥ 5.0 As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 241,325 ≥ 10.5% $ 229,834 ≥ 10.0% Burke & Herbert Bank & Trust 432,290 18.81 241,368 ≥ 10.5 229,874 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 195,358 ≥ 8.5 186,867 ≥ 8.0 Burke & Herbert Bank & Trust 411,251 17.89 195,393 ≥ 8.5 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 160,883 ≥ 7.0 149,392 ≥ 6.5 Burke & Herbert Bank & Trust 411,251 17.89 160,912 ≥ 7.0 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 182,007 ≥ 5.0 Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 5.0	Regulatory Capital Matters Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, “prompt corrective action” regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under the Basel Committee on Banking Supervision’s capital guidelines for U.S. Banks (“Basel III rules”), an entity must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. Management believes as of December 31, 2022, the Company and the Bank meet all capital adequacy requirements to which they are subject. “Prompt corrective action” regulations provide five classifications: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized,” and “critically undercapitalized,” although these terms are not used to represent overall financial condition. If “adequately capitalized,” regulatory approval is required to accept brokered deposits. If “undercapitalized,” capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of December 31, 2022 and 2021, the most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework for “prompt corrective action.” The table below presents the actual and required capital amounts and ratios for the Company at December 31, 2022 and the Bank at December 31, 2022 and 2021 (in thousands). Actual Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 183,867 ≥ 8.0% n/a n/a Burke & Herbert Bank & Trust $ 432,290 18.81 % $ 183,900 ≥ 8.0% $ 229,874 ≥ 10.0% Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 137,900 ≥ 6.0 n/a n/a Burke & Herbert Bank & Trust 411,251 17.89 137,925 ≥ 6.0 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 103,425 ≥ 4.5 n/a n/a Burke & Herbert Bank & Trust 411,251 17.89 103,443 ≥ 4.5 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 n/a n/a Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 5.0 As of December 31, 2021 Total Capital to risk weighted assets Burke & Herbert Bank & Trust $ 409,923 18.84 % $ 174,050 ≥ 8.0% $ 217,562 ≥ 10.0% Tier 1 (Core) Capital to risk weighted assets Burke & Herbert Bank & Trust 382,672 17.59 130,537 ≥ 6.0 174,050 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Burke & Herbert Bank & Trust 382,672 17.59 97,903 ≥ 4.5 141,415 ≥ 6.5 Tier 1 (Core) Capital to average assets Burke & Herbert Bank & Trust 382,672 10.81 141,594 ≥ 4.0 176,992 ≥ 5.0 The Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. As of December 31, 2022, approximately $190.9 million of retained earnings was available for dividend declaration without regulatory approval.

Regulatory Capital Matters_2

Regulatory Capital Matters	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Regulatory Capital Requirements under Banking Regulations [Abstract]
Regulatory Capital Matters	Regulatory Capital Matters Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, “prompt corrective action” regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under the Basel Committee on Banking Supervision’s capital guidelines for U.S. Banks (“Basel III rules”), an entity must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The net unrealized gain or loss on AFS securities is not included in computing regulatory capital. Management believes as of March 31, 2023, the Company and the Bank meet all capital adequacy requirements to which they are subject. “Prompt corrective action” regulations provide five classifications: “well capitalized”, “adequately capitalized”, “undercapitalized”, “significantly undercapitalized”, and “critically undercapitalized”, although these terms are not used to represent overall financial condition. If “adequately capitalized”, regulatory approval is required to accept brokered deposits. If “undercapitalized”, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of March 31, 2023, and December 31, 2022, the most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework for “prompt corrective action”. The following table presents the actual and required capital amounts and ratios for the Company and the Bank at March 31, 2023, and December 31, 2022 (in thousands except for ratios). Actual Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of March 31, 2023 Total Capital to risk weighted assets Consolidated $ 439,563 18.65 % $ 247,459 ≥ 10.5% $ 235,675 ≥ 10.0% Burke & Herbert Bank & Trust 436,046 18.50 247,528 ≥ 10.5 235,741 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 413,592 17.55 200,324 ≥ 8.5 188,540 ≥ 8.0 Burke & Herbert Bank & Trust 410,075 17.40 200,380 ≥ 8.5 188,593 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 413,592 17.55 164,973 ≥ 7.0 153,189 ≥ 6.5 Burke & Herbert Bank & Trust 410,075 17.40 165,019 ≥ 7.0 153,232 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 413,592 11.19 147,859 ≥ 4.0 184,824 ≥ 5.0 Burke & Herbert Bank & Trust 410,075 11.09 147,913 ≥ 4.0 184,891 ≥ 5.0 As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 241,325 ≥ 10.5% $ 229,834 ≥ 10.0% Burke & Herbert Bank & Trust 432,290 18.81 241,368 ≥ 10.5 229,874 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 195,358 ≥ 8.5 186,867 ≥ 8.0 Burke & Herbert Bank & Trust 411,251 17.89 195,393 ≥ 8.5 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 160,883 ≥ 7.0 149,392 ≥ 6.5 Burke & Herbert Bank & Trust 411,251 17.89 160,912 ≥ 7.0 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 182,007 ≥ 5.0 Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 5.0 The Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. As of March 31, 2023, approximately $188.5 million of retained earnings was available for dividend declaration without regulatory approval.	Regulatory Capital MattersBanks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, “prompt corrective action” regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under the Basel Committee on Banking Supervision’s capital guidelines for U.S. Banks (“Basel III rules”), an entity must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The net unrealized gain or loss on AFS securities is not included in computing regulatory capital. Management believes as of June 30, 2023, the Company and the Bank meet all capital adequacy requirements to which they are subject. “Prompt corrective action” regulations provide five classifications: “well capitalized”, “adequately capitalized”, “undercapitalized”, “significantly undercapitalized”, and “critically undercapitalized”, although these terms are not used to represent overall financial condition. If “adequately capitalized”, regulatory approval is required to accept brokered deposits. If “undercapitalized”, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of June 30, 2023, and December 31, 2022, the most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework for “prompt corrective action”. The following table presents the actual and required capital amounts and ratios for the Company and the Bank at June 30, 2023, and December 31, 2022 (in thousands except for ratios). Actual Minimum Required for Capital Adequacy Purposes (includes applicable Capital Conservation Buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of June 30, 2023 Total Capital to risk weighted assets Consolidated $ 442,338 18.71 % $ 248,273 ≥ 10.5% $ 236,450 ≥ 10.0% Burke & Herbert Bank & Trust 439,212 18.57 248,365 ≥ 10.5 236,538 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 416,249 17.60 200,983 ≥ 8.5 189,160 ≥ 8.0 Burke & Herbert Bank & Trust 413,123 17.47 201,057 ≥ 8.5 189,230 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 416,249 17.60 165,515 ≥ 7.0 153,693 ≥ 6.5 Burke & Herbert Bank & Trust 413,123 17.47 165,576 ≥ 7.0 153,750 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 416,249 11.20 148,725 ≥ 4.0 185,906 ≥ 5.0 Burke & Herbert Bank & Trust 413,123 11.11 148,770 ≥ 4.0 185,962 ≥ 5.0 As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 241,325 ≥ 10.5% $ 229,834 ≥ 10.0% Burke & Herbert Bank & Trust 432,290 18.81 241,368 ≥ 10.5 229,874 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 195,358 ≥ 8.5 186,867 ≥ 8.0 Burke & Herbert Bank & Trust 411,251 17.89 195,393 ≥ 8.5 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 160,883 ≥ 7.0 149,392 ≥ 6.5 Burke & Herbert Bank & Trust 411,251 17.89 160,912 ≥ 7.0 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 182,007 ≥ 5.0 Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 5.0	Regulatory Capital Matters Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, “prompt corrective action” regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under the Basel Committee on Banking Supervision’s capital guidelines for U.S. Banks (“Basel III rules”), an entity must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. Management believes as of December 31, 2022, the Company and the Bank meet all capital adequacy requirements to which they are subject. “Prompt corrective action” regulations provide five classifications: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized,” and “critically undercapitalized,” although these terms are not used to represent overall financial condition. If “adequately capitalized,” regulatory approval is required to accept brokered deposits. If “undercapitalized,” capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of December 31, 2022 and 2021, the most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework for “prompt corrective action.” The table below presents the actual and required capital amounts and ratios for the Company at December 31, 2022 and the Bank at December 31, 2022 and 2021 (in thousands). Actual Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 183,867 ≥ 8.0% n/a n/a Burke & Herbert Bank & Trust $ 432,290 18.81 % $ 183,900 ≥ 8.0% $ 229,874 ≥ 10.0% Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 137,900 ≥ 6.0 n/a n/a Burke & Herbert Bank & Trust 411,251 17.89 137,925 ≥ 6.0 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 103,425 ≥ 4.5 n/a n/a Burke & Herbert Bank & Trust 411,251 17.89 103,443 ≥ 4.5 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 n/a n/a Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 5.0 As of December 31, 2021 Total Capital to risk weighted assets Burke & Herbert Bank & Trust $ 409,923 18.84 % $ 174,050 ≥ 8.0% $ 217,562 ≥ 10.0% Tier 1 (Core) Capital to risk weighted assets Burke & Herbert Bank & Trust 382,672 17.59 130,537 ≥ 6.0 174,050 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Burke & Herbert Bank & Trust 382,672 17.59 97,903 ≥ 4.5 141,415 ≥ 6.5 Tier 1 (Core) Capital to average assets Burke & Herbert Bank & Trust 382,672 10.81 141,594 ≥ 4.0 176,992 ≥ 5.0 The Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. As of December 31, 2022, approximately $190.9 million of retained earnings was available for dividend declaration without regulatory approval.

Regulatory Capital Matters_2_3

Regulatory Capital Matters	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Regulatory Capital Requirements under Banking Regulations [Abstract]
Regulatory Capital Matters	Regulatory Capital Matters Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, “prompt corrective action” regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under the Basel Committee on Banking Supervision’s capital guidelines for U.S. Banks (“Basel III rules”), an entity must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The net unrealized gain or loss on AFS securities is not included in computing regulatory capital. Management believes as of March 31, 2023, the Company and the Bank meet all capital adequacy requirements to which they are subject. “Prompt corrective action” regulations provide five classifications: “well capitalized”, “adequately capitalized”, “undercapitalized”, “significantly undercapitalized”, and “critically undercapitalized”, although these terms are not used to represent overall financial condition. If “adequately capitalized”, regulatory approval is required to accept brokered deposits. If “undercapitalized”, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of March 31, 2023, and December 31, 2022, the most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework for “prompt corrective action”. The following table presents the actual and required capital amounts and ratios for the Company and the Bank at March 31, 2023, and December 31, 2022 (in thousands except for ratios). Actual Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of March 31, 2023 Total Capital to risk weighted assets Consolidated $ 439,563 18.65 % $ 247,459 ≥ 10.5% $ 235,675 ≥ 10.0% Burke & Herbert Bank & Trust 436,046 18.50 247,528 ≥ 10.5 235,741 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 413,592 17.55 200,324 ≥ 8.5 188,540 ≥ 8.0 Burke & Herbert Bank & Trust 410,075 17.40 200,380 ≥ 8.5 188,593 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 413,592 17.55 164,973 ≥ 7.0 153,189 ≥ 6.5 Burke & Herbert Bank & Trust 410,075 17.40 165,019 ≥ 7.0 153,232 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 413,592 11.19 147,859 ≥ 4.0 184,824 ≥ 5.0 Burke & Herbert Bank & Trust 410,075 11.09 147,913 ≥ 4.0 184,891 ≥ 5.0 As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 241,325 ≥ 10.5% $ 229,834 ≥ 10.0% Burke & Herbert Bank & Trust 432,290 18.81 241,368 ≥ 10.5 229,874 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 195,358 ≥ 8.5 186,867 ≥ 8.0 Burke & Herbert Bank & Trust 411,251 17.89 195,393 ≥ 8.5 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 160,883 ≥ 7.0 149,392 ≥ 6.5 Burke & Herbert Bank & Trust 411,251 17.89 160,912 ≥ 7.0 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 182,007 ≥ 5.0 Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 5.0 The Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. As of March 31, 2023, approximately $188.5 million of retained earnings was available for dividend declaration without regulatory approval.	Regulatory Capital MattersBanks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, “prompt corrective action” regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under the Basel Committee on Banking Supervision’s capital guidelines for U.S. Banks (“Basel III rules”), an entity must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The net unrealized gain or loss on AFS securities is not included in computing regulatory capital. Management believes as of June 30, 2023, the Company and the Bank meet all capital adequacy requirements to which they are subject. “Prompt corrective action” regulations provide five classifications: “well capitalized”, “adequately capitalized”, “undercapitalized”, “significantly undercapitalized”, and “critically undercapitalized”, although these terms are not used to represent overall financial condition. If “adequately capitalized”, regulatory approval is required to accept brokered deposits. If “undercapitalized”, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of June 30, 2023, and December 31, 2022, the most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework for “prompt corrective action”. The following table presents the actual and required capital amounts and ratios for the Company and the Bank at June 30, 2023, and December 31, 2022 (in thousands except for ratios). Actual Minimum Required for Capital Adequacy Purposes (includes applicable Capital Conservation Buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of June 30, 2023 Total Capital to risk weighted assets Consolidated $ 442,338 18.71 % $ 248,273 ≥ 10.5% $ 236,450 ≥ 10.0% Burke & Herbert Bank & Trust 439,212 18.57 248,365 ≥ 10.5 236,538 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 416,249 17.60 200,983 ≥ 8.5 189,160 ≥ 8.0 Burke & Herbert Bank & Trust 413,123 17.47 201,057 ≥ 8.5 189,230 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 416,249 17.60 165,515 ≥ 7.0 153,693 ≥ 6.5 Burke & Herbert Bank & Trust 413,123 17.47 165,576 ≥ 7.0 153,750 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 416,249 11.20 148,725 ≥ 4.0 185,906 ≥ 5.0 Burke & Herbert Bank & Trust 413,123 11.11 148,770 ≥ 4.0 185,962 ≥ 5.0 As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 241,325 ≥ 10.5% $ 229,834 ≥ 10.0% Burke & Herbert Bank & Trust 432,290 18.81 241,368 ≥ 10.5 229,874 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 195,358 ≥ 8.5 186,867 ≥ 8.0 Burke & Herbert Bank & Trust 411,251 17.89 195,393 ≥ 8.5 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 160,883 ≥ 7.0 149,392 ≥ 6.5 Burke & Herbert Bank & Trust 411,251 17.89 160,912 ≥ 7.0 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 182,007 ≥ 5.0 Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 5.0	Regulatory Capital Matters Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, “prompt corrective action” regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Under the Basel Committee on Banking Supervision’s capital guidelines for U.S. Banks (“Basel III rules”), an entity must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. Management believes as of December 31, 2022, the Company and the Bank meet all capital adequacy requirements to which they are subject. “Prompt corrective action” regulations provide five classifications: “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized,” and “critically undercapitalized,” although these terms are not used to represent overall financial condition. If “adequately capitalized,” regulatory approval is required to accept brokered deposits. If “undercapitalized,” capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. As of December 31, 2022 and 2021, the most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework for “prompt corrective action.” The table below presents the actual and required capital amounts and ratios for the Company at December 31, 2022 and the Bank at December 31, 2022 and 2021 (in thousands). Actual Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 183,867 ≥ 8.0% n/a n/a Burke & Herbert Bank & Trust $ 432,290 18.81 % $ 183,900 ≥ 8.0% $ 229,874 ≥ 10.0% Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 137,900 ≥ 6.0 n/a n/a Burke & Herbert Bank & Trust 411,251 17.89 137,925 ≥ 6.0 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 103,425 ≥ 4.5 n/a n/a Burke & Herbert Bank & Trust 411,251 17.89 103,443 ≥ 4.5 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 n/a n/a Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 5.0 As of December 31, 2021 Total Capital to risk weighted assets Burke & Herbert Bank & Trust $ 409,923 18.84 % $ 174,050 ≥ 8.0% $ 217,562 ≥ 10.0% Tier 1 (Core) Capital to risk weighted assets Burke & Herbert Bank & Trust 382,672 17.59 130,537 ≥ 6.0 174,050 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Burke & Herbert Bank & Trust 382,672 17.59 97,903 ≥ 4.5 141,415 ≥ 6.5 Tier 1 (Core) Capital to average assets Burke & Herbert Bank & Trust 382,672 10.81 141,594 ≥ 4.0 176,992 ≥ 5.0 The Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. As of December 31, 2022, approximately $190.9 million of retained earnings was available for dividend declaration without regulatory approval.

Derivatives

Derivatives	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	DerivativesThe Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Cash flow hedges of interest rate risk The Company’s objective in using interest rate derivatives is to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and floors as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates fall below the strike rate on the contract in exchange for an up-front premium. During the first quarter of 2023, such derivatives were used to hedge the variable cash flows associated with variable-rate assets. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in AOCI and subsequently reclassified into interest income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate asset. During the next 12 months, the Company estimates that an additional $1.5 million will be reclassified as a reduction to interest income. Fair value hedges of interest rate risk The Company is exposed to changes in the fair value of fixed-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in interest income. As of March 31, 2023, the following amounts were recorded on the balance sheet related to the cumulative basis adjustment for fair value hedges (in thousands): Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Securities available-for-sale, at fair value (1) $ 302,362 $ — $ 2,362 $ — Total $ 302,362 $ — $ 2,362 $ — __________________ (1) These amounts include the amortized cost basis of closed portfolios of AFS securities used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At March 31, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $302.4 million; the cumulative basis adjustments associated with these hedging relationships was $2.4 million; and the amounts of the designated hedged items were $300.0 million. Derivatives not designated as hedges The Company enters into interest rate swaps with its loan customers to facilitate their financing requests. Upon entering into swaps with our loan customers, the Company will enter into corresponding offsetting derivatives with third parties. These derivatives represent economic hedges and do not qualify as hedges for accounting. These back-to-back interest rate swaps are reported at fair value in “other assets” and “other liabilities” in the Company’s Consolidated Balance Sheets. Changes in the fair value of interest rate swaps are recorded in other non-interest expense and sum to zero because of offsetting terms of swaps with borrowers and swaps with dealer counterparties. The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Consolidated Balance Sheets as of March 31, 2023, and December 31, 2022 (in thousands): March 31, 2023 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 1,866 Interest rate swaps related to fair value hedges Other liabilities 300,000 2,283 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,439 $ 1,045 Interest rate swaps related to customer loans Other liabilities 34,439 1,045 December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Interest rate swaps related to fair value hedges N/A — — Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities 34,674 1,311 The table below presents the effect of cash flow hedge accounting on AOCI for the three months ended March 31, 2023, and March 31, 2022, as follows (in thousands): Derivatives in Cash Flow March 31, 2023 Location of Gain or (Loss) Reclassified from AOCI into Income March 31, 2023 Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ 60 $ 60 $ — Interest Income $ (363) $ (363) $ — Total $ 60 $ 60 $ — $ (363) $ (363) $ — Derivatives in Cash Flow March 31, 2022 Location of Gain or (Loss) Reclassified from AOCI into Income March 31, 2022 Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (636) $ (636) $ — Interest Income $ 75 $ 75 $ — Total $ (636) $ (636) $ — $ 75 $ 75 $ — The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income as of March 31, 2023, and March 31, 2022. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships March 31, 2023 March 31, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (203) $ — $ 75 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items 2,362 — — — Derivatives designated as hedging instruments (2,202) — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (363) — 75 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (363) — 75 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — — Credit-risk-related Contingent Features As of March 31, 2023, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk related to these agreements, was $4.1 million. As of March 31, 2023, the Company has posted the full amount of collateral related to these agreements.	Derivatives The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Cash flow hedges of interest rate risk The Company’s objective in using interest rate derivatives is to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and floors as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates fall below the strike rate on the contract in exchange for an up-front premium. During 2023, such derivatives were used to hedge the variable cash flows associated with variable-rate assets. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in AOCI and subsequently reclassified into interest income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate asset. During the next 12 months, the Company estimates that an additional $1.5 million will be reclassified as a reduction to interest income. Fair value hedges of interest rate risk The Company is exposed to changes in the fair value of fixed-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in interest income. As of June 30, 2023, the following amounts were recorded on the balance sheet related to the cumulative basis adjustment for fair value hedges (in thousands): Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 (2) Securities available-for-sale, at fair value (1) $ 298,853 $ — $ (1,106) $ — Total $ 298,853 $ — $ (1,106) $ — __________________ (1) These amounts include the amortized cost basis of closed portfolios of AFS securities used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At June 30, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $298.9 million and the cumulative basis adjustments associated with these hedging relationships was $1.1 million. (2) The entire balance represents the hedging adjustment on a voluntary discontinued hedging relationship. The Company has allocated the basis adjustment to the remaining individual assets in the closed portfolio and will amortize the basis adjustment over a period consistent with amortization of other discounts or premiums on the assets. Derivatives not designated as hedges The Company enters into interest rate swaps with its loan customers to facilitate their financing requests. Upon entering into swaps with our loan customers, the Company will enter into corresponding offsetting derivatives with third parties. These derivatives represent economic hedges and do not qualify as hedges for accounting. These back-to-back interest rate swaps are reported at fair value in “other assets” and “other liabilities” in the Company’s Consolidated Balance Sheets. Changes in the fair value of interest rate swaps are recorded in other non-interest expense and sum to zero because of offsetting terms of swaps with borrowers and swaps with dealer counterparties. The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Consolidated Balance Sheets as of June 30, 2023, and December 31, 2022 (in thousands): June 30, 2023 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 1,836 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 66,709 $ 1,740 Interest rate swaps related to customer loans Other liabilities 66,709 1,740 December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities 34,674 1,311 The table below presents the effect of cash flow hedge accounting on AOCI for the three months ended June 30, 2023, and June 30, 2022, as follows (in thousands): June 30, 2023 June 30, 2023 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (348) $ (348) $ — Interest Income $ (423) $ (423) $ — Total $ (348) $ (348) $ — $ (423) $ (423) $ — June 30, 2022 June 30, 2022 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (459) $ (459) $ — Interest Income $ 108 $ 108 $ — Total $ (459) $ (459) $ — $ 108 $ 108 $ — The table below presents the effect of cash flow hedge accounting on AOCI for the six months ended June 30, 2023, and June 30, 2022, as follows (in thousands): June 30, 2023 June 30, 2023 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (289) $ (289) $ — Interest Income $ (786) $ (786) $ — Total $ (289) $ (289) $ — $ (786) $ (786) $ — June 30, 2022 June 30, 2022 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (1,095) $ (1,095) $ — Interest Income $ 182 $ 182 $ — Total $ (1,095) $ (1,095) $ — $ 182 $ 182 $ — The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the three and six months ended June 30, 2023, and June 30, 2022. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Three months ended June 30, 2023 June 30, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (914) $ — $ 108 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items (3,468) — — — Derivatives designated as hedging instruments 2,977 — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (423) — 108 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (423) — 108 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — — Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Six months ended June 30, 2023 June 30, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (1,117) $ — $ 182 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items (1,106) — — — Derivatives designated as hedging instruments 776 — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (786) — 182 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (786) — 182 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — — Credit-risk-related Contingent Features As of June 30, 2023, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for non-performance risk related to these agreements, was $1.8 million. As of June 30, 2023, the Company has posted the full amount of collateral related to these agreements.	Derivatives The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Cash flow hedges of interest rate risk The Company’s objectives in using interest rate derivatives are to add stability to net interest income and to manage exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2022, such derivatives were used to hedge the variable cash flows associated with variable-rate assets. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate asset. During 2022, the Company estimates that an additional $1.6 million will be reclassified as a reduction to interest income. Derivatives not designated as hedges The Company enters into interest rate swaps with its loan customers to facilitate their financing requests. Upon entering into swaps with our loan customers, the Company will enter into corresponding offsetting derivatives with third parties. These derivatives represent economic hedges and do not qualify as hedges for accounting. These back-to-back interest rate swaps are reported at fair value in “other assets” and “other liabilities” in the Company’s Balance Sheets. Changes in the fair value of interest rate swaps are recorded in other non-interest expense and sum to zero because of offsetting terms of swaps with borrowers and swaps with dealer counterparties. The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Balance Sheet as of December 31, 2022 and 2021 (in thousands): December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities $ 34,674 $ 1,311 December 31, 2021 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges N/A $ — $ — Derivatives not designated as hedges: Interest rate swaps related to customer loans Other liabilities $ 37,508 $ 1,630 Interest rate swaps related to customer loans Other assets $ 37,508 $ 1,630 The effect of cash flow hedge accounting on accumulated other comprehensive income (“AOCI”) for the years ended December 31, 2022, 2021, and 2020 are as follows (in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in AOCI on Derivative Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income 2022 2021 2020 2022 2021 2020 Interest Rate Products $ (2,178) $ — $ — Interest Income $ (167) $ — $ — Total $ (2,178) $ — $ — $ (167) $ — $ — The table below presents the effect of the Company’s derivative financial instruments on the Statements of Income as of December 31, 2022. Prior to 2022, the Company did not have derivatives designated as hedges. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships December 31, 2022 December 31, 2021 December 31, 2020 Interest Income Interest Expense Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (167) $ — $ — $ — $ — $ — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income (167) — — — — — Amount of gain or (loss) reclassified from accumulated other comprehensive income into income as a result that a forecasted transaction is no longer probable of occurring — — — — — —

Derivatives_2

Derivatives	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	DerivativesThe Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Cash flow hedges of interest rate risk The Company’s objective in using interest rate derivatives is to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and floors as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates fall below the strike rate on the contract in exchange for an up-front premium. During the first quarter of 2023, such derivatives were used to hedge the variable cash flows associated with variable-rate assets. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in AOCI and subsequently reclassified into interest income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate asset. During the next 12 months, the Company estimates that an additional $1.5 million will be reclassified as a reduction to interest income. Fair value hedges of interest rate risk The Company is exposed to changes in the fair value of fixed-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in interest income. As of March 31, 2023, the following amounts were recorded on the balance sheet related to the cumulative basis adjustment for fair value hedges (in thousands): Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Securities available-for-sale, at fair value (1) $ 302,362 $ — $ 2,362 $ — Total $ 302,362 $ — $ 2,362 $ — __________________ (1) These amounts include the amortized cost basis of closed portfolios of AFS securities used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At March 31, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $302.4 million; the cumulative basis adjustments associated with these hedging relationships was $2.4 million; and the amounts of the designated hedged items were $300.0 million. Derivatives not designated as hedges The Company enters into interest rate swaps with its loan customers to facilitate their financing requests. Upon entering into swaps with our loan customers, the Company will enter into corresponding offsetting derivatives with third parties. These derivatives represent economic hedges and do not qualify as hedges for accounting. These back-to-back interest rate swaps are reported at fair value in “other assets” and “other liabilities” in the Company’s Consolidated Balance Sheets. Changes in the fair value of interest rate swaps are recorded in other non-interest expense and sum to zero because of offsetting terms of swaps with borrowers and swaps with dealer counterparties. The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Consolidated Balance Sheets as of March 31, 2023, and December 31, 2022 (in thousands): March 31, 2023 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 1,866 Interest rate swaps related to fair value hedges Other liabilities 300,000 2,283 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,439 $ 1,045 Interest rate swaps related to customer loans Other liabilities 34,439 1,045 December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Interest rate swaps related to fair value hedges N/A — — Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities 34,674 1,311 The table below presents the effect of cash flow hedge accounting on AOCI for the three months ended March 31, 2023, and March 31, 2022, as follows (in thousands): Derivatives in Cash Flow March 31, 2023 Location of Gain or (Loss) Reclassified from AOCI into Income March 31, 2023 Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ 60 $ 60 $ — Interest Income $ (363) $ (363) $ — Total $ 60 $ 60 $ — $ (363) $ (363) $ — Derivatives in Cash Flow March 31, 2022 Location of Gain or (Loss) Reclassified from AOCI into Income March 31, 2022 Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (636) $ (636) $ — Interest Income $ 75 $ 75 $ — Total $ (636) $ (636) $ — $ 75 $ 75 $ — The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income as of March 31, 2023, and March 31, 2022. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships March 31, 2023 March 31, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (203) $ — $ 75 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items 2,362 — — — Derivatives designated as hedging instruments (2,202) — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (363) — 75 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (363) — 75 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — — Credit-risk-related Contingent Features As of March 31, 2023, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk related to these agreements, was $4.1 million. As of March 31, 2023, the Company has posted the full amount of collateral related to these agreements.	Derivatives The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Cash flow hedges of interest rate risk The Company’s objective in using interest rate derivatives is to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and floors as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates fall below the strike rate on the contract in exchange for an up-front premium. During 2023, such derivatives were used to hedge the variable cash flows associated with variable-rate assets. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in AOCI and subsequently reclassified into interest income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate asset. During the next 12 months, the Company estimates that an additional $1.5 million will be reclassified as a reduction to interest income. Fair value hedges of interest rate risk The Company is exposed to changes in the fair value of fixed-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in interest income. As of June 30, 2023, the following amounts were recorded on the balance sheet related to the cumulative basis adjustment for fair value hedges (in thousands): Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 (2) Securities available-for-sale, at fair value (1) $ 298,853 $ — $ (1,106) $ — Total $ 298,853 $ — $ (1,106) $ — __________________ (1) These amounts include the amortized cost basis of closed portfolios of AFS securities used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At June 30, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $298.9 million and the cumulative basis adjustments associated with these hedging relationships was $1.1 million. (2) The entire balance represents the hedging adjustment on a voluntary discontinued hedging relationship. The Company has allocated the basis adjustment to the remaining individual assets in the closed portfolio and will amortize the basis adjustment over a period consistent with amortization of other discounts or premiums on the assets. Derivatives not designated as hedges The Company enters into interest rate swaps with its loan customers to facilitate their financing requests. Upon entering into swaps with our loan customers, the Company will enter into corresponding offsetting derivatives with third parties. These derivatives represent economic hedges and do not qualify as hedges for accounting. These back-to-back interest rate swaps are reported at fair value in “other assets” and “other liabilities” in the Company’s Consolidated Balance Sheets. Changes in the fair value of interest rate swaps are recorded in other non-interest expense and sum to zero because of offsetting terms of swaps with borrowers and swaps with dealer counterparties. The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Consolidated Balance Sheets as of June 30, 2023, and December 31, 2022 (in thousands): June 30, 2023 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 1,836 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 66,709 $ 1,740 Interest rate swaps related to customer loans Other liabilities 66,709 1,740 December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities 34,674 1,311 The table below presents the effect of cash flow hedge accounting on AOCI for the three months ended June 30, 2023, and June 30, 2022, as follows (in thousands): June 30, 2023 June 30, 2023 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (348) $ (348) $ — Interest Income $ (423) $ (423) $ — Total $ (348) $ (348) $ — $ (423) $ (423) $ — June 30, 2022 June 30, 2022 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (459) $ (459) $ — Interest Income $ 108 $ 108 $ — Total $ (459) $ (459) $ — $ 108 $ 108 $ — The table below presents the effect of cash flow hedge accounting on AOCI for the six months ended June 30, 2023, and June 30, 2022, as follows (in thousands): June 30, 2023 June 30, 2023 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (289) $ (289) $ — Interest Income $ (786) $ (786) $ — Total $ (289) $ (289) $ — $ (786) $ (786) $ — June 30, 2022 June 30, 2022 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (1,095) $ (1,095) $ — Interest Income $ 182 $ 182 $ — Total $ (1,095) $ (1,095) $ — $ 182 $ 182 $ — The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the three and six months ended June 30, 2023, and June 30, 2022. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Three months ended June 30, 2023 June 30, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (914) $ — $ 108 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items (3,468) — — — Derivatives designated as hedging instruments 2,977 — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (423) — 108 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (423) — 108 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — — Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Six months ended June 30, 2023 June 30, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (1,117) $ — $ 182 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items (1,106) — — — Derivatives designated as hedging instruments 776 — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (786) — 182 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (786) — 182 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — — Credit-risk-related Contingent Features As of June 30, 2023, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for non-performance risk related to these agreements, was $1.8 million. As of June 30, 2023, the Company has posted the full amount of collateral related to these agreements.	Derivatives The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Cash flow hedges of interest rate risk The Company’s objectives in using interest rate derivatives are to add stability to net interest income and to manage exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2022, such derivatives were used to hedge the variable cash flows associated with variable-rate assets. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate asset. During 2022, the Company estimates that an additional $1.6 million will be reclassified as a reduction to interest income. Derivatives not designated as hedges The Company enters into interest rate swaps with its loan customers to facilitate their financing requests. Upon entering into swaps with our loan customers, the Company will enter into corresponding offsetting derivatives with third parties. These derivatives represent economic hedges and do not qualify as hedges for accounting. These back-to-back interest rate swaps are reported at fair value in “other assets” and “other liabilities” in the Company’s Balance Sheets. Changes in the fair value of interest rate swaps are recorded in other non-interest expense and sum to zero because of offsetting terms of swaps with borrowers and swaps with dealer counterparties. The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Balance Sheet as of December 31, 2022 and 2021 (in thousands): December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities $ 34,674 $ 1,311 December 31, 2021 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges N/A $ — $ — Derivatives not designated as hedges: Interest rate swaps related to customer loans Other liabilities $ 37,508 $ 1,630 Interest rate swaps related to customer loans Other assets $ 37,508 $ 1,630 The effect of cash flow hedge accounting on accumulated other comprehensive income (“AOCI”) for the years ended December 31, 2022, 2021, and 2020 are as follows (in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in AOCI on Derivative Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income 2022 2021 2020 2022 2021 2020 Interest Rate Products $ (2,178) $ — $ — Interest Income $ (167) $ — $ — Total $ (2,178) $ — $ — $ (167) $ — $ — The table below presents the effect of the Company’s derivative financial instruments on the Statements of Income as of December 31, 2022. Prior to 2022, the Company did not have derivatives designated as hedges. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships December 31, 2022 December 31, 2021 December 31, 2020 Interest Income Interest Expense Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (167) $ — $ — $ — $ — $ — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income (167) — — — — — Amount of gain or (loss) reclassified from accumulated other comprehensive income into income as a result that a forecasted transaction is no longer probable of occurring — — — — — —

Derivatives_2_3

Derivatives	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	DerivativesThe Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Cash flow hedges of interest rate risk The Company’s objective in using interest rate derivatives is to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and floors as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates fall below the strike rate on the contract in exchange for an up-front premium. During the first quarter of 2023, such derivatives were used to hedge the variable cash flows associated with variable-rate assets. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in AOCI and subsequently reclassified into interest income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate asset. During the next 12 months, the Company estimates that an additional $1.5 million will be reclassified as a reduction to interest income. Fair value hedges of interest rate risk The Company is exposed to changes in the fair value of fixed-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in interest income. As of March 31, 2023, the following amounts were recorded on the balance sheet related to the cumulative basis adjustment for fair value hedges (in thousands): Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Securities available-for-sale, at fair value (1) $ 302,362 $ — $ 2,362 $ — Total $ 302,362 $ — $ 2,362 $ — __________________ (1) These amounts include the amortized cost basis of closed portfolios of AFS securities used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At March 31, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $302.4 million; the cumulative basis adjustments associated with these hedging relationships was $2.4 million; and the amounts of the designated hedged items were $300.0 million. Derivatives not designated as hedges The Company enters into interest rate swaps with its loan customers to facilitate their financing requests. Upon entering into swaps with our loan customers, the Company will enter into corresponding offsetting derivatives with third parties. These derivatives represent economic hedges and do not qualify as hedges for accounting. These back-to-back interest rate swaps are reported at fair value in “other assets” and “other liabilities” in the Company’s Consolidated Balance Sheets. Changes in the fair value of interest rate swaps are recorded in other non-interest expense and sum to zero because of offsetting terms of swaps with borrowers and swaps with dealer counterparties. The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Consolidated Balance Sheets as of March 31, 2023, and December 31, 2022 (in thousands): March 31, 2023 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 1,866 Interest rate swaps related to fair value hedges Other liabilities 300,000 2,283 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,439 $ 1,045 Interest rate swaps related to customer loans Other liabilities 34,439 1,045 December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Interest rate swaps related to fair value hedges N/A — — Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities 34,674 1,311 The table below presents the effect of cash flow hedge accounting on AOCI for the three months ended March 31, 2023, and March 31, 2022, as follows (in thousands): Derivatives in Cash Flow March 31, 2023 Location of Gain or (Loss) Reclassified from AOCI into Income March 31, 2023 Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ 60 $ 60 $ — Interest Income $ (363) $ (363) $ — Total $ 60 $ 60 $ — $ (363) $ (363) $ — Derivatives in Cash Flow March 31, 2022 Location of Gain or (Loss) Reclassified from AOCI into Income March 31, 2022 Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (636) $ (636) $ — Interest Income $ 75 $ 75 $ — Total $ (636) $ (636) $ — $ 75 $ 75 $ — The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income as of March 31, 2023, and March 31, 2022. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships March 31, 2023 March 31, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (203) $ — $ 75 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items 2,362 — — — Derivatives designated as hedging instruments (2,202) — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (363) — 75 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (363) — 75 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — — Credit-risk-related Contingent Features As of March 31, 2023, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk related to these agreements, was $4.1 million. As of March 31, 2023, the Company has posted the full amount of collateral related to these agreements.	Derivatives The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Cash flow hedges of interest rate risk The Company’s objective in using interest rate derivatives is to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and floors as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates fall below the strike rate on the contract in exchange for an up-front premium. During 2023, such derivatives were used to hedge the variable cash flows associated with variable-rate assets. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in AOCI and subsequently reclassified into interest income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate asset. During the next 12 months, the Company estimates that an additional $1.5 million will be reclassified as a reduction to interest income. Fair value hedges of interest rate risk The Company is exposed to changes in the fair value of fixed-rate assets due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. Interest rate swaps designated as fair value hedges involve the payment of fixed-rate amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives designated and that qualify as fair value hedges, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in interest income. As of June 30, 2023, the following amounts were recorded on the balance sheet related to the cumulative basis adjustment for fair value hedges (in thousands): Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 (2) Securities available-for-sale, at fair value (1) $ 298,853 $ — $ (1,106) $ — Total $ 298,853 $ — $ (1,106) $ — __________________ (1) These amounts include the amortized cost basis of closed portfolios of AFS securities used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At June 30, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $298.9 million and the cumulative basis adjustments associated with these hedging relationships was $1.1 million. (2) The entire balance represents the hedging adjustment on a voluntary discontinued hedging relationship. The Company has allocated the basis adjustment to the remaining individual assets in the closed portfolio and will amortize the basis adjustment over a period consistent with amortization of other discounts or premiums on the assets. Derivatives not designated as hedges The Company enters into interest rate swaps with its loan customers to facilitate their financing requests. Upon entering into swaps with our loan customers, the Company will enter into corresponding offsetting derivatives with third parties. These derivatives represent economic hedges and do not qualify as hedges for accounting. These back-to-back interest rate swaps are reported at fair value in “other assets” and “other liabilities” in the Company’s Consolidated Balance Sheets. Changes in the fair value of interest rate swaps are recorded in other non-interest expense and sum to zero because of offsetting terms of swaps with borrowers and swaps with dealer counterparties. The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Consolidated Balance Sheets as of June 30, 2023, and December 31, 2022 (in thousands): June 30, 2023 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 1,836 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 66,709 $ 1,740 Interest rate swaps related to customer loans Other liabilities 66,709 1,740 December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities 34,674 1,311 The table below presents the effect of cash flow hedge accounting on AOCI for the three months ended June 30, 2023, and June 30, 2022, as follows (in thousands): June 30, 2023 June 30, 2023 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (348) $ (348) $ — Interest Income $ (423) $ (423) $ — Total $ (348) $ (348) $ — $ (423) $ (423) $ — June 30, 2022 June 30, 2022 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (459) $ (459) $ — Interest Income $ 108 $ 108 $ — Total $ (459) $ (459) $ — $ 108 $ 108 $ — The table below presents the effect of cash flow hedge accounting on AOCI for the six months ended June 30, 2023, and June 30, 2022, as follows (in thousands): June 30, 2023 June 30, 2023 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (289) $ (289) $ — Interest Income $ (786) $ (786) $ — Total $ (289) $ (289) $ — $ (786) $ (786) $ — June 30, 2022 June 30, 2022 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (1,095) $ (1,095) $ — Interest Income $ 182 $ 182 $ — Total $ (1,095) $ (1,095) $ — $ 182 $ 182 $ — The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the three and six months ended June 30, 2023, and June 30, 2022. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Three months ended June 30, 2023 June 30, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (914) $ — $ 108 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items (3,468) — — — Derivatives designated as hedging instruments 2,977 — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (423) — 108 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (423) — 108 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — — Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Six months ended June 30, 2023 June 30, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (1,117) $ — $ 182 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items (1,106) — — — Derivatives designated as hedging instruments 776 — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (786) — 182 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (786) — 182 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — — Credit-risk-related Contingent Features As of June 30, 2023, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for non-performance risk related to these agreements, was $1.8 million. As of June 30, 2023, the Company has posted the full amount of collateral related to these agreements.	Derivatives The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Cash flow hedges of interest rate risk The Company’s objectives in using interest rate derivatives are to add stability to net interest income and to manage exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2022, such derivatives were used to hedge the variable cash flows associated with variable-rate assets. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate asset. During 2022, the Company estimates that an additional $1.6 million will be reclassified as a reduction to interest income. Derivatives not designated as hedges The Company enters into interest rate swaps with its loan customers to facilitate their financing requests. Upon entering into swaps with our loan customers, the Company will enter into corresponding offsetting derivatives with third parties. These derivatives represent economic hedges and do not qualify as hedges for accounting. These back-to-back interest rate swaps are reported at fair value in “other assets” and “other liabilities” in the Company’s Balance Sheets. Changes in the fair value of interest rate swaps are recorded in other non-interest expense and sum to zero because of offsetting terms of swaps with borrowers and swaps with dealer counterparties. The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Balance Sheet as of December 31, 2022 and 2021 (in thousands): December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities $ 34,674 $ 1,311 December 31, 2021 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges N/A $ — $ — Derivatives not designated as hedges: Interest rate swaps related to customer loans Other liabilities $ 37,508 $ 1,630 Interest rate swaps related to customer loans Other assets $ 37,508 $ 1,630 The effect of cash flow hedge accounting on accumulated other comprehensive income (“AOCI”) for the years ended December 31, 2022, 2021, and 2020 are as follows (in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in AOCI on Derivative Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income 2022 2021 2020 2022 2021 2020 Interest Rate Products $ (2,178) $ — $ — Interest Income $ (167) $ — $ — Total $ (2,178) $ — $ — $ (167) $ — $ — The table below presents the effect of the Company’s derivative financial instruments on the Statements of Income as of December 31, 2022. Prior to 2022, the Company did not have derivatives designated as hedges. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships December 31, 2022 December 31, 2021 December 31, 2020 Interest Income Interest Expense Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (167) $ — $ — $ — $ — $ — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income (167) — — — — — Amount of gain or (loss) reclassified from accumulated other comprehensive income into income as a result that a forecasted transaction is no longer probable of occurring — — — — — —

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Interest rate lock commitments Commitments to fund consumer mortgage loans (interest rate lock commitments) to be sold into the secondary market are defined as derivatives under GAAP. The Company enters into best effort forward commitments for the future delivery of mortgage loans to third-party investors. The Company has elected the fair value option (“FVO”) on both the best-efforts forward commitments and the consumer mortgage loans held-for-sale in order to economically hedge the effect of changes in interest rates resulting from the commitment to fund the loans. The net gains (losses) relating to the free-standing derivative instruments (interest rate lock commitments) were $4.2 thousand and $(74.5) thousand at March 31, 2023, and March 31, 2022. The notional amount of loan pipeline that resulted in interest rate lock commitments at March 31, 2023, and March 31, 2022, was $838 thousand and $1.4 million, respectively. Interest Rate lock commitments are not designated as hedging instruments, and therefore, changes in the fair value of these free-standing derivative instruments are reported as non-interest income. Credit extension commitments The Company’s financial statements do not reflect various financial instruments which arise in the normal course of business and which involve elements of credit risk, interest rate risk and liquidity risk. These financial instruments include commitments to extend credit, commercial letters of credit, and revolving lines of credit. Many of our lending relationships contain both funded and unfunded elements. The funded portion is reflected on our balance sheet. The unfunded portion of these commitments is not recorded on our balance sheet until a draw is made under the loan facility. Since many of our commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. A summary of the contractual amounts of the Company’s financial instruments outstanding at March 31, 2023, and December 31, 2022, is as follows (in thousands): March 31, 2023 December 31, 2022 Commitments to extend credit $ 277,463 $ 291,265 Commercial letters of credit 8,525 8,539 Commitments to extend credit and commercial letters of credit all include exposure to some credit loss in the event of nonperformance of the customer. The Company’s credit policies and procedures for credit commitments and financial guarantees are the same as those for extensions of credit that are recorded on the Consolidated Balance Sheets. Many of these instruments have fixed maturity dates, and many of them will expire without being drawn upon; accordingly, they do not generally present any significant liquidity risk to the Company. Allowance for credit losses - off-balance-sheet credit exposures The Company recorded a recapture of credit losses on unfunded commitments of $7.5 thousand for the three months ended March 31, 2023. The ACL on off-balance-sheet credit totaled $267.3 thousand at March 31, 2023, and is included in accrued interest and other liabilities on the accompanying Consolidated Balance Sheets. Litigation The Company is a party to litigation, claims and proceedings arising in the normal course of business that are ordinary and routine to the nature of the Company’s business and operations. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from any currently pending or threatened litigation, claims or proceedings will not be material to the Company’s financial position.	Commitments and Contingencies Interest rate lock commitments Commitments to fund consumer mortgage loans (interest rate lock commitments) to be sold into the secondary market are defined as derivatives under GAAP. The Company enters into best effort forward commitments for the future delivery of mortgage loans to third-party investors. The Company has elected the fair value option (“FVO”) on both the best-efforts forward commitments and the consumer mortgage loans held-for-sale in order to economically hedge the effect of changes in interest rates resulting from the commitment to fund the loans. Interest Rate lock commitments are not designated as hedging instruments, and therefore, changes in the fair value of these free-standing derivative instruments are reported as non-interest income. Credit extension commitments The Company’s financial statements do not reflect various financial instruments which arise in the normal course of business and which involve elements of credit risk, interest rate risk, and liquidity risk. These financial instruments include commitments to extend credit, commercial letters of credit, and revolving lines of credit. Many of our lending relationships contain both funded and unfunded elements. The funded portion is reflected on our balance sheet. The unfunded portion of these commitments is not recorded on our balance sheet until a draw is made under the loan facility. Since many of our commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. A summary of the contractual amounts of the Company’s financial instruments outstanding at June 30, 2023, and December 31, 2022, is as follows (in thousands): June 30, 2023 December 31, 2022 Commitments to extend credit $ 247,319 $ 291,265 Commercial letters of credit 9,992 8,539 Commitments to extend credit and commercial letters of credit all include exposure to some credit loss in the event of nonperformance of the customer. The Company’s credit policies and procedures for credit commitments and financial guarantees are the same as those for extensions of credit that are recorded on the Consolidated Balance Sheets. Many of these instruments have fixed maturity dates, and many of them will expire without being drawn upon; accordingly, they do not generally present any significant liquidity risk to the Company. Allowance for credit losses - off-balance-sheet credit exposures The Company recorded a recapture of credit losses on unfunded commitments of $97.3 thousand for the three months ended June 30, 2023, and a recapture of credit losses on unfunded commitments of $104.7 thousand for the six months ended June 30, 2023. The ACL on off-balance-sheet credit totaled $170.0 thousand at June 30, 2023, and is included in accrued interest and other liabilities on the accompanying Consolidated Balance Sheets. Litigation The Company is a party to litigation, claims, and proceedings arising in the normal course of business that are ordinary and routine to the nature of the Company’s business and operations. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from any currently pending or threatened litigation, claims, or proceedings will not be material to the Company’s financial position.	Commitments and Contingencies Interest rate lock commitments Commitments to fund consumer mortgage loans (interest rate lock commitments) to be sold into the secondary market are considered derivatives. The Company enters into best effort forward commitments for the future delivery of mortgage loans to third-party investors. The Company has elected the FVO option on both the best-efforts forward commitments and the consumer mortgage loan held for sale in order to economically hedge the effect of changes in interest rates resulting from the commitment to fund the loans. These mortgage banking derivatives are not designated in hedge relationships. The net gains (losses) relating to the free-standing derivative instruments (interest rate lock commitments) were $(13) thousand, $13 thousand and $645 thousand at December 31, 2022, 2021 and 2020, respectively. At December 31, 2022, we had no mortgage loans held for sale and no interest rate lock commitments outstanding. In comparison, the notional amount of mortgage loan pipeline that resulted in interest rate lock commitments at December 31, 2021 and 2020 was $926 thousand and $24.7 million. Interest Rate lock commitments are not designated as hedging instruments, and therefore changes in the fair value of these free-standing derivative instruments are reported as non-interest income. Credit extension commitments The Company’s financial statements do not reflect various financial instruments which arise in the normal course of business and which involve elements of credit risk, interest rate risk and liquidity risk. These financial instruments include commitments to extend credit, commercial letters of credit, and revolving lines of credit. A summary of the contractual amounts of the Company’s financial instruments outstanding at December 31, 2022 and 2021, is as follows (in thousands): 2022 2021 Commitments to extend credit $ — $ — Commercial letters of credit 8,539 7,660 Undisbursed balance - revolving lines of credit 291,265 240,179 Commitments to extend credit, commercial letters of credit and revolving lines of credit all include exposure to some credit loss in the event of nonperformance of the customer. The Company’s credit policies and procedures for credit commitments and financial guarantees are the same as those for extensions of credit that are recorded on the Balance Sheets. Many of these instruments have fixed maturity dates, and many of them will expire without being drawn upon; accordingly, they do not generally present any significant liquidity risk to the Company. Litigation The Company is a party to litigation and claims arising in the normal course of business. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from such litigation and claims will not be material to the Company’s financial position.

Commitments and Contingencies_2

Commitments and Contingencies	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Interest rate lock commitments Commitments to fund consumer mortgage loans (interest rate lock commitments) to be sold into the secondary market are defined as derivatives under GAAP. The Company enters into best effort forward commitments for the future delivery of mortgage loans to third-party investors. The Company has elected the fair value option (“FVO”) on both the best-efforts forward commitments and the consumer mortgage loans held-for-sale in order to economically hedge the effect of changes in interest rates resulting from the commitment to fund the loans. The net gains (losses) relating to the free-standing derivative instruments (interest rate lock commitments) were $4.2 thousand and $(74.5) thousand at March 31, 2023, and March 31, 2022. The notional amount of loan pipeline that resulted in interest rate lock commitments at March 31, 2023, and March 31, 2022, was $838 thousand and $1.4 million, respectively. Interest Rate lock commitments are not designated as hedging instruments, and therefore, changes in the fair value of these free-standing derivative instruments are reported as non-interest income. Credit extension commitments The Company’s financial statements do not reflect various financial instruments which arise in the normal course of business and which involve elements of credit risk, interest rate risk and liquidity risk. These financial instruments include commitments to extend credit, commercial letters of credit, and revolving lines of credit. Many of our lending relationships contain both funded and unfunded elements. The funded portion is reflected on our balance sheet. The unfunded portion of these commitments is not recorded on our balance sheet until a draw is made under the loan facility. Since many of our commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. A summary of the contractual amounts of the Company’s financial instruments outstanding at March 31, 2023, and December 31, 2022, is as follows (in thousands): March 31, 2023 December 31, 2022 Commitments to extend credit $ 277,463 $ 291,265 Commercial letters of credit 8,525 8,539 Commitments to extend credit and commercial letters of credit all include exposure to some credit loss in the event of nonperformance of the customer. The Company’s credit policies and procedures for credit commitments and financial guarantees are the same as those for extensions of credit that are recorded on the Consolidated Balance Sheets. Many of these instruments have fixed maturity dates, and many of them will expire without being drawn upon; accordingly, they do not generally present any significant liquidity risk to the Company. Allowance for credit losses - off-balance-sheet credit exposures The Company recorded a recapture of credit losses on unfunded commitments of $7.5 thousand for the three months ended March 31, 2023. The ACL on off-balance-sheet credit totaled $267.3 thousand at March 31, 2023, and is included in accrued interest and other liabilities on the accompanying Consolidated Balance Sheets. Litigation The Company is a party to litigation, claims and proceedings arising in the normal course of business that are ordinary and routine to the nature of the Company’s business and operations. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from any currently pending or threatened litigation, claims or proceedings will not be material to the Company’s financial position.	Commitments and Contingencies Interest rate lock commitments Commitments to fund consumer mortgage loans (interest rate lock commitments) to be sold into the secondary market are defined as derivatives under GAAP. The Company enters into best effort forward commitments for the future delivery of mortgage loans to third-party investors. The Company has elected the fair value option (“FVO”) on both the best-efforts forward commitments and the consumer mortgage loans held-for-sale in order to economically hedge the effect of changes in interest rates resulting from the commitment to fund the loans. Interest Rate lock commitments are not designated as hedging instruments, and therefore, changes in the fair value of these free-standing derivative instruments are reported as non-interest income. Credit extension commitments The Company’s financial statements do not reflect various financial instruments which arise in the normal course of business and which involve elements of credit risk, interest rate risk, and liquidity risk. These financial instruments include commitments to extend credit, commercial letters of credit, and revolving lines of credit. Many of our lending relationships contain both funded and unfunded elements. The funded portion is reflected on our balance sheet. The unfunded portion of these commitments is not recorded on our balance sheet until a draw is made under the loan facility. Since many of our commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. A summary of the contractual amounts of the Company’s financial instruments outstanding at June 30, 2023, and December 31, 2022, is as follows (in thousands): June 30, 2023 December 31, 2022 Commitments to extend credit $ 247,319 $ 291,265 Commercial letters of credit 9,992 8,539 Commitments to extend credit and commercial letters of credit all include exposure to some credit loss in the event of nonperformance of the customer. The Company’s credit policies and procedures for credit commitments and financial guarantees are the same as those for extensions of credit that are recorded on the Consolidated Balance Sheets. Many of these instruments have fixed maturity dates, and many of them will expire without being drawn upon; accordingly, they do not generally present any significant liquidity risk to the Company. Allowance for credit losses - off-balance-sheet credit exposures The Company recorded a recapture of credit losses on unfunded commitments of $97.3 thousand for the three months ended June 30, 2023, and a recapture of credit losses on unfunded commitments of $104.7 thousand for the six months ended June 30, 2023. The ACL on off-balance-sheet credit totaled $170.0 thousand at June 30, 2023, and is included in accrued interest and other liabilities on the accompanying Consolidated Balance Sheets. Litigation The Company is a party to litigation, claims, and proceedings arising in the normal course of business that are ordinary and routine to the nature of the Company’s business and operations. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from any currently pending or threatened litigation, claims, or proceedings will not be material to the Company’s financial position.	Commitments and Contingencies Interest rate lock commitments Commitments to fund consumer mortgage loans (interest rate lock commitments) to be sold into the secondary market are considered derivatives. The Company enters into best effort forward commitments for the future delivery of mortgage loans to third-party investors. The Company has elected the FVO option on both the best-efforts forward commitments and the consumer mortgage loan held for sale in order to economically hedge the effect of changes in interest rates resulting from the commitment to fund the loans. These mortgage banking derivatives are not designated in hedge relationships. The net gains (losses) relating to the free-standing derivative instruments (interest rate lock commitments) were $(13) thousand, $13 thousand and $645 thousand at December 31, 2022, 2021 and 2020, respectively. At December 31, 2022, we had no mortgage loans held for sale and no interest rate lock commitments outstanding. In comparison, the notional amount of mortgage loan pipeline that resulted in interest rate lock commitments at December 31, 2021 and 2020 was $926 thousand and $24.7 million. Interest Rate lock commitments are not designated as hedging instruments, and therefore changes in the fair value of these free-standing derivative instruments are reported as non-interest income. Credit extension commitments The Company’s financial statements do not reflect various financial instruments which arise in the normal course of business and which involve elements of credit risk, interest rate risk and liquidity risk. These financial instruments include commitments to extend credit, commercial letters of credit, and revolving lines of credit. A summary of the contractual amounts of the Company’s financial instruments outstanding at December 31, 2022 and 2021, is as follows (in thousands): 2022 2021 Commitments to extend credit $ — $ — Commercial letters of credit 8,539 7,660 Undisbursed balance - revolving lines of credit 291,265 240,179 Commitments to extend credit, commercial letters of credit and revolving lines of credit all include exposure to some credit loss in the event of nonperformance of the customer. The Company’s credit policies and procedures for credit commitments and financial guarantees are the same as those for extensions of credit that are recorded on the Balance Sheets. Many of these instruments have fixed maturity dates, and many of them will expire without being drawn upon; accordingly, they do not generally present any significant liquidity risk to the Company. Litigation The Company is a party to litigation and claims arising in the normal course of business. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from such litigation and claims will not be material to the Company’s financial position.

Commitment and Contingencies

Commitment and Contingencies	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Interest rate lock commitments Commitments to fund consumer mortgage loans (interest rate lock commitments) to be sold into the secondary market are defined as derivatives under GAAP. The Company enters into best effort forward commitments for the future delivery of mortgage loans to third-party investors. The Company has elected the fair value option (“FVO”) on both the best-efforts forward commitments and the consumer mortgage loans held-for-sale in order to economically hedge the effect of changes in interest rates resulting from the commitment to fund the loans. The net gains (losses) relating to the free-standing derivative instruments (interest rate lock commitments) were $4.2 thousand and $(74.5) thousand at March 31, 2023, and March 31, 2022. The notional amount of loan pipeline that resulted in interest rate lock commitments at March 31, 2023, and March 31, 2022, was $838 thousand and $1.4 million, respectively. Interest Rate lock commitments are not designated as hedging instruments, and therefore, changes in the fair value of these free-standing derivative instruments are reported as non-interest income. Credit extension commitments The Company’s financial statements do not reflect various financial instruments which arise in the normal course of business and which involve elements of credit risk, interest rate risk and liquidity risk. These financial instruments include commitments to extend credit, commercial letters of credit, and revolving lines of credit. Many of our lending relationships contain both funded and unfunded elements. The funded portion is reflected on our balance sheet. The unfunded portion of these commitments is not recorded on our balance sheet until a draw is made under the loan facility. Since many of our commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. A summary of the contractual amounts of the Company’s financial instruments outstanding at March 31, 2023, and December 31, 2022, is as follows (in thousands): March 31, 2023 December 31, 2022 Commitments to extend credit $ 277,463 $ 291,265 Commercial letters of credit 8,525 8,539 Commitments to extend credit and commercial letters of credit all include exposure to some credit loss in the event of nonperformance of the customer. The Company’s credit policies and procedures for credit commitments and financial guarantees are the same as those for extensions of credit that are recorded on the Consolidated Balance Sheets. Many of these instruments have fixed maturity dates, and many of them will expire without being drawn upon; accordingly, they do not generally present any significant liquidity risk to the Company. Allowance for credit losses - off-balance-sheet credit exposures The Company recorded a recapture of credit losses on unfunded commitments of $7.5 thousand for the three months ended March 31, 2023. The ACL on off-balance-sheet credit totaled $267.3 thousand at March 31, 2023, and is included in accrued interest and other liabilities on the accompanying Consolidated Balance Sheets. Litigation The Company is a party to litigation, claims and proceedings arising in the normal course of business that are ordinary and routine to the nature of the Company’s business and operations. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from any currently pending or threatened litigation, claims or proceedings will not be material to the Company’s financial position.	Commitments and Contingencies Interest rate lock commitments Commitments to fund consumer mortgage loans (interest rate lock commitments) to be sold into the secondary market are defined as derivatives under GAAP. The Company enters into best effort forward commitments for the future delivery of mortgage loans to third-party investors. The Company has elected the fair value option (“FVO”) on both the best-efforts forward commitments and the consumer mortgage loans held-for-sale in order to economically hedge the effect of changes in interest rates resulting from the commitment to fund the loans. Interest Rate lock commitments are not designated as hedging instruments, and therefore, changes in the fair value of these free-standing derivative instruments are reported as non-interest income. Credit extension commitments The Company’s financial statements do not reflect various financial instruments which arise in the normal course of business and which involve elements of credit risk, interest rate risk, and liquidity risk. These financial instruments include commitments to extend credit, commercial letters of credit, and revolving lines of credit. Many of our lending relationships contain both funded and unfunded elements. The funded portion is reflected on our balance sheet. The unfunded portion of these commitments is not recorded on our balance sheet until a draw is made under the loan facility. Since many of our commitments to extend credit may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash flow requirements. A summary of the contractual amounts of the Company’s financial instruments outstanding at June 30, 2023, and December 31, 2022, is as follows (in thousands): June 30, 2023 December 31, 2022 Commitments to extend credit $ 247,319 $ 291,265 Commercial letters of credit 9,992 8,539 Commitments to extend credit and commercial letters of credit all include exposure to some credit loss in the event of nonperformance of the customer. The Company’s credit policies and procedures for credit commitments and financial guarantees are the same as those for extensions of credit that are recorded on the Consolidated Balance Sheets. Many of these instruments have fixed maturity dates, and many of them will expire without being drawn upon; accordingly, they do not generally present any significant liquidity risk to the Company. Allowance for credit losses - off-balance-sheet credit exposures The Company recorded a recapture of credit losses on unfunded commitments of $97.3 thousand for the three months ended June 30, 2023, and a recapture of credit losses on unfunded commitments of $104.7 thousand for the six months ended June 30, 2023. The ACL on off-balance-sheet credit totaled $170.0 thousand at June 30, 2023, and is included in accrued interest and other liabilities on the accompanying Consolidated Balance Sheets. Litigation The Company is a party to litigation, claims, and proceedings arising in the normal course of business that are ordinary and routine to the nature of the Company’s business and operations. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from any currently pending or threatened litigation, claims, or proceedings will not be material to the Company’s financial position.	Commitments and Contingencies Interest rate lock commitments Commitments to fund consumer mortgage loans (interest rate lock commitments) to be sold into the secondary market are considered derivatives. The Company enters into best effort forward commitments for the future delivery of mortgage loans to third-party investors. The Company has elected the FVO option on both the best-efforts forward commitments and the consumer mortgage loan held for sale in order to economically hedge the effect of changes in interest rates resulting from the commitment to fund the loans. These mortgage banking derivatives are not designated in hedge relationships. The net gains (losses) relating to the free-standing derivative instruments (interest rate lock commitments) were $(13) thousand, $13 thousand and $645 thousand at December 31, 2022, 2021 and 2020, respectively. At December 31, 2022, we had no mortgage loans held for sale and no interest rate lock commitments outstanding. In comparison, the notional amount of mortgage loan pipeline that resulted in interest rate lock commitments at December 31, 2021 and 2020 was $926 thousand and $24.7 million. Interest Rate lock commitments are not designated as hedging instruments, and therefore changes in the fair value of these free-standing derivative instruments are reported as non-interest income. Credit extension commitments The Company’s financial statements do not reflect various financial instruments which arise in the normal course of business and which involve elements of credit risk, interest rate risk and liquidity risk. These financial instruments include commitments to extend credit, commercial letters of credit, and revolving lines of credit. A summary of the contractual amounts of the Company’s financial instruments outstanding at December 31, 2022 and 2021, is as follows (in thousands): 2022 2021 Commitments to extend credit $ — $ — Commercial letters of credit 8,539 7,660 Undisbursed balance - revolving lines of credit 291,265 240,179 Commitments to extend credit, commercial letters of credit and revolving lines of credit all include exposure to some credit loss in the event of nonperformance of the customer. The Company’s credit policies and procedures for credit commitments and financial guarantees are the same as those for extensions of credit that are recorded on the Balance Sheets. Many of these instruments have fixed maturity dates, and many of them will expire without being drawn upon; accordingly, they do not generally present any significant liquidity risk to the Company. Litigation The Company is a party to litigation and claims arising in the normal course of business. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from such litigation and claims will not be material to the Company’s financial position.

Transactions with Related Parti

Transactions with Related Parties	12 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
Transactions with Related Parties	Transactions with Related PartiesLoans to directors and principal officers, including their immediate families and affiliated companies in which they have a direct or indirect material interest, are considered to be related parties. Aggregate loan balances with related parties were as follows (in thousands): 2022 Balance, beginning $ 73,726 New loans 28,598 Repayments (5,927) Balance, ending $ 96,397 None of the loans are past due, on nonaccrual status or have been restructured to provide a reduction or deferral of interest or principal because of deterioration in the financial position of the borrower. There were no loans to a related party that were considered classified loans at December 31, 2022 or 2021. Deposits from related parties at years end 2022 and 2021 were $109,071 and $102,268 (in thousands).

Fair Value Measurements

Fair Value Measurements	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Determination of Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect our own assumptions that market participants would use in pricing an asset or liability. In instances in which multiple levels of inputs are used to measure fair value, hierarchy classification is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held-for-sale, at fair value The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at March 31, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 178,419 $ — $ — $ 178,419 Obligations of states and municipalities — 468,362 — 468,362 Residential mortgage backed - agency — 52,670 — 52,670 Residential mortgage backed - non-agency — 321,150 — 321,150 Commercial mortgage backed - agency — 57,832 — 57,832 Commercial mortgage backed - non-agency — 183,225 — 183,225 Asset-backed — 92,599 — 92,599 Other — 8,528 — 8,528 Total investment securities available-for-sale $ 178,419 $ 1,184,366 $ — $ 1,362,785 Loans held-for-sale, at fair value $ — $ 360 $ — $ 360 Derivatives $ — $ 1,045 $ — $ 1,045 Financial liabilities Derivatives $ — $ 5,194 $ — $ 5,194 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of states and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset-backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held-for-sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565 The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements: Individually evaluated loans Upon the adoption of CECL, loans individually evaluated for credit expected losses included non-accrual loans and other loans that do not share similar risk characteristics to loans in the CECL loan pools and have been classified as Level 3. Individually evaluated loans with an allocation to the ACL are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income. Prior to adoption of CECL and ASU 2022-02, which eliminated the TDR accounting model, loans were designated as impaired when, in the judgment of management and based on current information and events, it was probable that all amounts due, according to the contractual terms of the loan agreement, would not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan, the present value of the expected future cash flows, or the fair value of the collateral. Generally, the fair value of impaired loans will be determined by the present value of the expected future cash flows or if collateral-dependent based on recent real estate appraisals. For collateral-dependent, the fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets, including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals, which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings. Assets that were measured at fair value on a nonrecurring basis during the period are summarized below (in thousands): Fair Value Measurements at March 31, 2023 Using: : Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually Evaluated Loans: Commercial Real Estate $ — $ — $ 318 $ 318 Owner-occupied commercial real estate — — 1,371 1,371 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,242 2,242 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually Evaluated Loans: Commercial Real Estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — — The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at March 31, 2023, and December 31, 2022 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average March 31, 2023 Impaired loans $ 3,931 Discounted cash flow analysis Market rate for borrower 3.6% - 8.5% 5.0% December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% - 6.0% 5.2% Fair value of financial instruments The carrying amounts and estimated fair values of financial instruments not carried at fair value, at March 31, 2023, and December 31, 2022, were as follows (in thousands): Fair Value Measurements at March 31, 2023 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 10,616 $ 10,616 $ — $ — $ 10,616 Interest-bearing deposits with banks 106,323 106,323 — — 106,323 Loans, net 1,926,034 — — 1,813,068 1,813,068 Accrued interest 15,158 — 15,158 — 15,158 Financial liabilities Non-interest, bearing $ 906,723 $ — $ 906,723 $ — $ 906,723 Interest bearing 2,125,668 — 2,118,085 — 2,118,085 Other borrowed funds 321,700 — 321,667 — 321,667 Accrued interest 2,763 — 2,763 — 2,763 Fair Value Measurements at December 31, 2022 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial liabilities Non-interest, bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452	Fair Value Measurements Determination of Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect our own assumptions that market participants would use in pricing an asset or liability. In instances in which multiple levels of inputs are used to measure fair value, hierarchy classification is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held-for-sale, at fair value The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at June 30, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 175,397 $ — $ — $ 175,397 Obligations of states and municipalities — 455,862 — 455,862 Residential mortgage backed - agency — 41,990 — 41,990 Residential mortgage backed - non-agency — 296,104 — 296,104 Commercial mortgage backed - agency — 36,086 — 36,086 Commercial mortgage backed - non-agency — 164,307 — 164,307 Asset-backed — 74,479 — 74,479 Other — 7,965 — 7,965 Total investment securities available-for-sale $ 175,397 $ 1,076,793 $ — $ 1,252,190 Loans held-for-sale, at fair value $ — $ 456 $ — $ 456 Derivatives $ — $ 1,740 $ — $ 1,740 Financial liabilities Derivatives $ — $ 3,576 $ — $ 3,576 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of states and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset-backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held-for-sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565 The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a non-recurring basis in the financial statements: Individually evaluated loans Upon the adoption of CECL, loans individually evaluated for credit expected losses included non-accrual loans and other loans that do not share similar risk characteristics to loans in the CECL loan pools and have been classified as Level 3. Individually evaluated loans with an allocation to the ACL are measured at fair value on a non-recurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income. Prior to adoption of CECL and ASU 2022-02, which eliminated the TDR accounting model, loans were designated as impaired when, in the judgment of management and based on current information and events, it was probable that all amounts due, according to the contractual terms of the loan agreement, would not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan, the present value of the expected future cash flows, or the fair value of the collateral. Generally, the fair value of impaired loans will be determined by the present value of the expected future cash flows or if collateral-dependent based on recent real estate appraisals. For collateral-dependent, the fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets, including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals, which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings. Assets that were measured at fair value on a non-recurring basis during the period are summarized below (in thousands): Fair Value Measurements at June 30, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually evaluated loans: Commercial real estate $ — $ — $ 308 $ 308 Owner-occupied commercial real estate — — 1,354 1,354 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,221 2,221 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually evaluated loans: Commercial real estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — — The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at June 30, 2023, and December 31, 2022 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average June 30, 2023 Impaired loans $ 3,883 Discounted cash flow analysis Market rate for borrower 3.6% - 8.5% 5.0% December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% - 6.0% 5.2% Fair value of financial instruments The carrying amounts and estimated fair values of financial instruments not carried at fair value, at June 30, 2023, and December 31, 2022, were as follows (in thousands): Fair Value Measurements at June 30, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying Amount (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,047 $ 9,047 $ — $ — $ 9,047 Interest-earning deposits with banks 71,752 71,752 — — 71,752 Loans, net 1,975,050 — — 1,834,415 1,834,415 Accrued interest 14,781 — 14,781 — 14,781 Financial Liabilities Non-interest-bearing $ 876,396 $ — $ 876,396 $ — $ 876,396 Interest-bearing 2,128,867 — 2,119,927 — 2,119,927 Other borrowed funds 249,000 — 248,997 — 248,997 Accrued interest 3,832 — 3,832 — 3,832 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying Amount (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial Liabilities Non-interest-bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest-bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452	Fair Value Measurements Determination of Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect our own assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held for sale, at fair value The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements: Impaired loans Loans are designated as impaired, when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected when due. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Generally, the fair value of impaired loans with specific allocations of the allowance for loan losses is based on recent real estate appraisals. Fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of state and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held for sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565 Fair Value Measurements at December 31, 2021 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 169,382 $ 15,059 $ — $ 184,441 Obligations of state and municipalities — 665,567 — 665,567 Residential mortgage backed - agency — 62,787 — 62,787 Residential mortgage backed - non-agency — 244,308 — 244,308 Commercial mortgage backed - agency — 78,883 — 78,883 Commercial mortgage backed - non-agency — 172,204 — 172,204 Asset backed — 195,525 — 195,525 Other — 1,966 — 1,966 Total investment securities available-for-sale $ 169,382 $ 1,436,299 $ — $ 1,605,681 Loans held for sale, at fair value $ — $ 1,249 $ — $ 1,249 Derivatives $ — $ 1,603 $ — $ 1,603 . Financial liabilities Derivatives $ — $ 1,589 $ — $ 1,589 Assets that were measured at fair value on a nonrecurring basis during the period are summarized below (in thousands): Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Impaired Loans: Commercial Real Estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2021 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Impaired Loans: Commercial Real Estate $ — $ — $ 12,552 $ 12,552 Owner-occupied commercial real estate — — 502 502 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,052 2,052 Consumer non-real estate and other — — — — Other real estate owned — — — — The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at December 31, 2022 and 2021 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% -6% 5.2% December 31, 2021 Impaired loans $ 15,106 Discounted appraised value 7% -9% 8.0% Discounted cash flow analysis Market rate for borrower 4% - 6% 5.4% Fair value of financial instruments The carrying amounts and estimated fair values of financial instruments not carried at fair value, at December 31, 2022 and 2021 were as follows (in thousands): Fair Value Measurements at December 31, 2022 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial liabilities Non-interest-bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest-bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452 Fair Value Measurements at December 31, 2021 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 8,989 $ 8,989 $ — $ — $ 8,989 Interest-bearing deposits with banks 68,374 68,374 — — 68,374 Loans, net 1,713,364 — — 1,697,752 1,697,752 Accrued interest 15,253 — 15,253 — 15,253 Financial liabilities Non-interest-bearing $ 930,847 $ — $ 930,847 $ — $ 930,847 Interest-bearing 2,002,570 — 2,002,089 — 2,002,089 Other borrowed funds 275,000 — 274,999 — 274,999 Accrued interest 309 — 309 — 309

Fair Value Measurements_2

Fair Value Measurements	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Determination of Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect our own assumptions that market participants would use in pricing an asset or liability. In instances in which multiple levels of inputs are used to measure fair value, hierarchy classification is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held-for-sale, at fair value The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at March 31, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 178,419 $ — $ — $ 178,419 Obligations of states and municipalities — 468,362 — 468,362 Residential mortgage backed - agency — 52,670 — 52,670 Residential mortgage backed - non-agency — 321,150 — 321,150 Commercial mortgage backed - agency — 57,832 — 57,832 Commercial mortgage backed - non-agency — 183,225 — 183,225 Asset-backed — 92,599 — 92,599 Other — 8,528 — 8,528 Total investment securities available-for-sale $ 178,419 $ 1,184,366 $ — $ 1,362,785 Loans held-for-sale, at fair value $ — $ 360 $ — $ 360 Derivatives $ — $ 1,045 $ — $ 1,045 Financial liabilities Derivatives $ — $ 5,194 $ — $ 5,194 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of states and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset-backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held-for-sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565 The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements: Individually evaluated loans Upon the adoption of CECL, loans individually evaluated for credit expected losses included non-accrual loans and other loans that do not share similar risk characteristics to loans in the CECL loan pools and have been classified as Level 3. Individually evaluated loans with an allocation to the ACL are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income. Prior to adoption of CECL and ASU 2022-02, which eliminated the TDR accounting model, loans were designated as impaired when, in the judgment of management and based on current information and events, it was probable that all amounts due, according to the contractual terms of the loan agreement, would not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan, the present value of the expected future cash flows, or the fair value of the collateral. Generally, the fair value of impaired loans will be determined by the present value of the expected future cash flows or if collateral-dependent based on recent real estate appraisals. For collateral-dependent, the fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets, including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals, which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings. Assets that were measured at fair value on a nonrecurring basis during the period are summarized below (in thousands): Fair Value Measurements at March 31, 2023 Using: : Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually Evaluated Loans: Commercial Real Estate $ — $ — $ 318 $ 318 Owner-occupied commercial real estate — — 1,371 1,371 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,242 2,242 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually Evaluated Loans: Commercial Real Estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — — The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at March 31, 2023, and December 31, 2022 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average March 31, 2023 Impaired loans $ 3,931 Discounted cash flow analysis Market rate for borrower 3.6% - 8.5% 5.0% December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% - 6.0% 5.2% Fair value of financial instruments The carrying amounts and estimated fair values of financial instruments not carried at fair value, at March 31, 2023, and December 31, 2022, were as follows (in thousands): Fair Value Measurements at March 31, 2023 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 10,616 $ 10,616 $ — $ — $ 10,616 Interest-bearing deposits with banks 106,323 106,323 — — 106,323 Loans, net 1,926,034 — — 1,813,068 1,813,068 Accrued interest 15,158 — 15,158 — 15,158 Financial liabilities Non-interest, bearing $ 906,723 $ — $ 906,723 $ — $ 906,723 Interest bearing 2,125,668 — 2,118,085 — 2,118,085 Other borrowed funds 321,700 — 321,667 — 321,667 Accrued interest 2,763 — 2,763 — 2,763 Fair Value Measurements at December 31, 2022 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial liabilities Non-interest, bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452	Fair Value Measurements Determination of Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect our own assumptions that market participants would use in pricing an asset or liability. In instances in which multiple levels of inputs are used to measure fair value, hierarchy classification is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held-for-sale, at fair value The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at June 30, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 175,397 $ — $ — $ 175,397 Obligations of states and municipalities — 455,862 — 455,862 Residential mortgage backed - agency — 41,990 — 41,990 Residential mortgage backed - non-agency — 296,104 — 296,104 Commercial mortgage backed - agency — 36,086 — 36,086 Commercial mortgage backed - non-agency — 164,307 — 164,307 Asset-backed — 74,479 — 74,479 Other — 7,965 — 7,965 Total investment securities available-for-sale $ 175,397 $ 1,076,793 $ — $ 1,252,190 Loans held-for-sale, at fair value $ — $ 456 $ — $ 456 Derivatives $ — $ 1,740 $ — $ 1,740 Financial liabilities Derivatives $ — $ 3,576 $ — $ 3,576 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of states and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset-backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held-for-sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565 The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a non-recurring basis in the financial statements: Individually evaluated loans Upon the adoption of CECL, loans individually evaluated for credit expected losses included non-accrual loans and other loans that do not share similar risk characteristics to loans in the CECL loan pools and have been classified as Level 3. Individually evaluated loans with an allocation to the ACL are measured at fair value on a non-recurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income. Prior to adoption of CECL and ASU 2022-02, which eliminated the TDR accounting model, loans were designated as impaired when, in the judgment of management and based on current information and events, it was probable that all amounts due, according to the contractual terms of the loan agreement, would not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan, the present value of the expected future cash flows, or the fair value of the collateral. Generally, the fair value of impaired loans will be determined by the present value of the expected future cash flows or if collateral-dependent based on recent real estate appraisals. For collateral-dependent, the fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets, including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals, which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings. Assets that were measured at fair value on a non-recurring basis during the period are summarized below (in thousands): Fair Value Measurements at June 30, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually evaluated loans: Commercial real estate $ — $ — $ 308 $ 308 Owner-occupied commercial real estate — — 1,354 1,354 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,221 2,221 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually evaluated loans: Commercial real estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — — The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at June 30, 2023, and December 31, 2022 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average June 30, 2023 Impaired loans $ 3,883 Discounted cash flow analysis Market rate for borrower 3.6% - 8.5% 5.0% December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% - 6.0% 5.2% Fair value of financial instruments The carrying amounts and estimated fair values of financial instruments not carried at fair value, at June 30, 2023, and December 31, 2022, were as follows (in thousands): Fair Value Measurements at June 30, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying Amount (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,047 $ 9,047 $ — $ — $ 9,047 Interest-earning deposits with banks 71,752 71,752 — — 71,752 Loans, net 1,975,050 — — 1,834,415 1,834,415 Accrued interest 14,781 — 14,781 — 14,781 Financial Liabilities Non-interest-bearing $ 876,396 $ — $ 876,396 $ — $ 876,396 Interest-bearing 2,128,867 — 2,119,927 — 2,119,927 Other borrowed funds 249,000 — 248,997 — 248,997 Accrued interest 3,832 — 3,832 — 3,832 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying Amount (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial Liabilities Non-interest-bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest-bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452	Fair Value Measurements Determination of Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect our own assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held for sale, at fair value The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements: Impaired loans Loans are designated as impaired, when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected when due. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Generally, the fair value of impaired loans with specific allocations of the allowance for loan losses is based on recent real estate appraisals. Fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of state and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held for sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565 Fair Value Measurements at December 31, 2021 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 169,382 $ 15,059 $ — $ 184,441 Obligations of state and municipalities — 665,567 — 665,567 Residential mortgage backed - agency — 62,787 — 62,787 Residential mortgage backed - non-agency — 244,308 — 244,308 Commercial mortgage backed - agency — 78,883 — 78,883 Commercial mortgage backed - non-agency — 172,204 — 172,204 Asset backed — 195,525 — 195,525 Other — 1,966 — 1,966 Total investment securities available-for-sale $ 169,382 $ 1,436,299 $ — $ 1,605,681 Loans held for sale, at fair value $ — $ 1,249 $ — $ 1,249 Derivatives $ — $ 1,603 $ — $ 1,603 . Financial liabilities Derivatives $ — $ 1,589 $ — $ 1,589 Assets that were measured at fair value on a nonrecurring basis during the period are summarized below (in thousands): Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Impaired Loans: Commercial Real Estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2021 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Impaired Loans: Commercial Real Estate $ — $ — $ 12,552 $ 12,552 Owner-occupied commercial real estate — — 502 502 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,052 2,052 Consumer non-real estate and other — — — — Other real estate owned — — — — The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at December 31, 2022 and 2021 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% -6% 5.2% December 31, 2021 Impaired loans $ 15,106 Discounted appraised value 7% -9% 8.0% Discounted cash flow analysis Market rate for borrower 4% - 6% 5.4% Fair value of financial instruments The carrying amounts and estimated fair values of financial instruments not carried at fair value, at December 31, 2022 and 2021 were as follows (in thousands): Fair Value Measurements at December 31, 2022 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial liabilities Non-interest-bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest-bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452 Fair Value Measurements at December 31, 2021 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 8,989 $ 8,989 $ — $ — $ 8,989 Interest-bearing deposits with banks 68,374 68,374 — — 68,374 Loans, net 1,713,364 — — 1,697,752 1,697,752 Accrued interest 15,253 — 15,253 — 15,253 Financial liabilities Non-interest-bearing $ 930,847 $ — $ 930,847 $ — $ 930,847 Interest-bearing 2,002,570 — 2,002,089 — 2,002,089 Other borrowed funds 275,000 — 274,999 — 274,999 Accrued interest 309 — 309 — 309

Fair Value Measurements_2_3

Fair Value Measurements	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Determination of Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect our own assumptions that market participants would use in pricing an asset or liability. In instances in which multiple levels of inputs are used to measure fair value, hierarchy classification is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held-for-sale, at fair value The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at March 31, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 178,419 $ — $ — $ 178,419 Obligations of states and municipalities — 468,362 — 468,362 Residential mortgage backed - agency — 52,670 — 52,670 Residential mortgage backed - non-agency — 321,150 — 321,150 Commercial mortgage backed - agency — 57,832 — 57,832 Commercial mortgage backed - non-agency — 183,225 — 183,225 Asset-backed — 92,599 — 92,599 Other — 8,528 — 8,528 Total investment securities available-for-sale $ 178,419 $ 1,184,366 $ — $ 1,362,785 Loans held-for-sale, at fair value $ — $ 360 $ — $ 360 Derivatives $ — $ 1,045 $ — $ 1,045 Financial liabilities Derivatives $ — $ 5,194 $ — $ 5,194 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of states and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset-backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held-for-sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565 The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements: Individually evaluated loans Upon the adoption of CECL, loans individually evaluated for credit expected losses included non-accrual loans and other loans that do not share similar risk characteristics to loans in the CECL loan pools and have been classified as Level 3. Individually evaluated loans with an allocation to the ACL are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income. Prior to adoption of CECL and ASU 2022-02, which eliminated the TDR accounting model, loans were designated as impaired when, in the judgment of management and based on current information and events, it was probable that all amounts due, according to the contractual terms of the loan agreement, would not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan, the present value of the expected future cash flows, or the fair value of the collateral. Generally, the fair value of impaired loans will be determined by the present value of the expected future cash flows or if collateral-dependent based on recent real estate appraisals. For collateral-dependent, the fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets, including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals, which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings. Assets that were measured at fair value on a nonrecurring basis during the period are summarized below (in thousands): Fair Value Measurements at March 31, 2023 Using: : Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually Evaluated Loans: Commercial Real Estate $ — $ — $ 318 $ 318 Owner-occupied commercial real estate — — 1,371 1,371 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,242 2,242 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually Evaluated Loans: Commercial Real Estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — — The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at March 31, 2023, and December 31, 2022 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average March 31, 2023 Impaired loans $ 3,931 Discounted cash flow analysis Market rate for borrower 3.6% - 8.5% 5.0% December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% - 6.0% 5.2% Fair value of financial instruments The carrying amounts and estimated fair values of financial instruments not carried at fair value, at March 31, 2023, and December 31, 2022, were as follows (in thousands): Fair Value Measurements at March 31, 2023 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 10,616 $ 10,616 $ — $ — $ 10,616 Interest-bearing deposits with banks 106,323 106,323 — — 106,323 Loans, net 1,926,034 — — 1,813,068 1,813,068 Accrued interest 15,158 — 15,158 — 15,158 Financial liabilities Non-interest, bearing $ 906,723 $ — $ 906,723 $ — $ 906,723 Interest bearing 2,125,668 — 2,118,085 — 2,118,085 Other borrowed funds 321,700 — 321,667 — 321,667 Accrued interest 2,763 — 2,763 — 2,763 Fair Value Measurements at December 31, 2022 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial liabilities Non-interest, bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452	Fair Value Measurements Determination of Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect our own assumptions that market participants would use in pricing an asset or liability. In instances in which multiple levels of inputs are used to measure fair value, hierarchy classification is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held-for-sale, at fair value The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at June 30, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 175,397 $ — $ — $ 175,397 Obligations of states and municipalities — 455,862 — 455,862 Residential mortgage backed - agency — 41,990 — 41,990 Residential mortgage backed - non-agency — 296,104 — 296,104 Commercial mortgage backed - agency — 36,086 — 36,086 Commercial mortgage backed - non-agency — 164,307 — 164,307 Asset-backed — 74,479 — 74,479 Other — 7,965 — 7,965 Total investment securities available-for-sale $ 175,397 $ 1,076,793 $ — $ 1,252,190 Loans held-for-sale, at fair value $ — $ 456 $ — $ 456 Derivatives $ — $ 1,740 $ — $ 1,740 Financial liabilities Derivatives $ — $ 3,576 $ — $ 3,576 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of states and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset-backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held-for-sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565 The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a non-recurring basis in the financial statements: Individually evaluated loans Upon the adoption of CECL, loans individually evaluated for credit expected losses included non-accrual loans and other loans that do not share similar risk characteristics to loans in the CECL loan pools and have been classified as Level 3. Individually evaluated loans with an allocation to the ACL are measured at fair value on a non-recurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income. Prior to adoption of CECL and ASU 2022-02, which eliminated the TDR accounting model, loans were designated as impaired when, in the judgment of management and based on current information and events, it was probable that all amounts due, according to the contractual terms of the loan agreement, would not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan, the present value of the expected future cash flows, or the fair value of the collateral. Generally, the fair value of impaired loans will be determined by the present value of the expected future cash flows or if collateral-dependent based on recent real estate appraisals. For collateral-dependent, the fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets, including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals, which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings. Assets that were measured at fair value on a non-recurring basis during the period are summarized below (in thousands): Fair Value Measurements at June 30, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually evaluated loans: Commercial real estate $ — $ — $ 308 $ 308 Owner-occupied commercial real estate — — 1,354 1,354 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,221 2,221 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually evaluated loans: Commercial real estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — — The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at June 30, 2023, and December 31, 2022 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average June 30, 2023 Impaired loans $ 3,883 Discounted cash flow analysis Market rate for borrower 3.6% - 8.5% 5.0% December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% - 6.0% 5.2% Fair value of financial instruments The carrying amounts and estimated fair values of financial instruments not carried at fair value, at June 30, 2023, and December 31, 2022, were as follows (in thousands): Fair Value Measurements at June 30, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying Amount (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,047 $ 9,047 $ — $ — $ 9,047 Interest-earning deposits with banks 71,752 71,752 — — 71,752 Loans, net 1,975,050 — — 1,834,415 1,834,415 Accrued interest 14,781 — 14,781 — 14,781 Financial Liabilities Non-interest-bearing $ 876,396 $ — $ 876,396 $ — $ 876,396 Interest-bearing 2,128,867 — 2,119,927 — 2,119,927 Other borrowed funds 249,000 — 248,997 — 248,997 Accrued interest 3,832 — 3,832 — 3,832 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying Amount (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial Liabilities Non-interest-bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest-bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452	Fair Value Measurements Determination of Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect our own assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate fair value: Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held for sale, at fair value The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements: Impaired loans Loans are designated as impaired, when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected when due. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Generally, the fair value of impaired loans with specific allocations of the allowance for loan losses is based on recent real estate appraisals. Fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings. Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of state and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held for sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565 Fair Value Measurements at December 31, 2021 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 169,382 $ 15,059 $ — $ 184,441 Obligations of state and municipalities — 665,567 — 665,567 Residential mortgage backed - agency — 62,787 — 62,787 Residential mortgage backed - non-agency — 244,308 — 244,308 Commercial mortgage backed - agency — 78,883 — 78,883 Commercial mortgage backed - non-agency — 172,204 — 172,204 Asset backed — 195,525 — 195,525 Other — 1,966 — 1,966 Total investment securities available-for-sale $ 169,382 $ 1,436,299 $ — $ 1,605,681 Loans held for sale, at fair value $ — $ 1,249 $ — $ 1,249 Derivatives $ — $ 1,603 $ — $ 1,603 . Financial liabilities Derivatives $ — $ 1,589 $ — $ 1,589 Assets that were measured at fair value on a nonrecurring basis during the period are summarized below (in thousands): Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Impaired Loans: Commercial Real Estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2021 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Impaired Loans: Commercial Real Estate $ — $ — $ 12,552 $ 12,552 Owner-occupied commercial real estate — — 502 502 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,052 2,052 Consumer non-real estate and other — — — — Other real estate owned — — — — The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at December 31, 2022 and 2021 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% -6% 5.2% December 31, 2021 Impaired loans $ 15,106 Discounted appraised value 7% -9% 8.0% Discounted cash flow analysis Market rate for borrower 4% - 6% 5.4% Fair value of financial instruments The carrying amounts and estimated fair values of financial instruments not carried at fair value, at December 31, 2022 and 2021 were as follows (in thousands): Fair Value Measurements at December 31, 2022 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial liabilities Non-interest-bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest-bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452 Fair Value Measurements at December 31, 2021 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 8,989 $ 8,989 $ — $ — $ 8,989 Interest-bearing deposits with banks 68,374 68,374 — — 68,374 Loans, net 1,713,364 — — 1,697,752 1,697,752 Accrued interest 15,253 — 15,253 — 15,253 Financial liabilities Non-interest-bearing $ 930,847 $ — $ 930,847 $ — $ 930,847 Interest-bearing 2,002,570 — 2,002,089 — 2,002,089 Other borrowed funds 275,000 — 274,999 — 274,999 Accrued interest 309 — 309 — 309

Common Stock Transactions

Common Stock Transactions	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Common Stock Transactions	Common Stock Transactions On November 15, 2022, the Company effected a forty-for-one stock split of its Common Stock by issuing thirty-nine additional shares of Common Stock for each outstanding share of Common Stock of record as of November 9, 2022. All share and earnings per share information have been retroactively adjusted to reflect the stock split within the financial statements and notes to the financial statements. In 2022, the Company reissued 2,000 shares of treasury stock to satisfy the vesting of RSUs. No other purchase or sale of the Company’s Common Stock occurred in 2022. In 2021, the Company purchased shares of its own Common Stock on the open market in arms-length transactions. It acquired 90,040 shares at an aggregate cost of $4.4 million at prices ranging from $45.25 to $50.00 per share. Additionally, in early August 2021 the Company sold 64,000 shares to certain of its directors, pursuant to a private placement exemption from registration for aggregate consideration of $3.2 million and reissued 1,720 shares of treasury stock to satisfy the vesting of RSUs. In 2020, the Company acquired 30,240 shares at an aggregate cost of $1.545 million at prices ranging from $46.88 to $56.25 per share. During 2022, 2021 and 2020, the Company declared and paid cash dividends of $2.12, $2.00, and $2.00 per share, respectively.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods ending March 31, 2023, and March 31, 2022 (in thousands): March 31, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) Net unrealized gains (losses) 47 17,218 — 17,265 Less: net realized (gains) losses reclassified to earnings 287 (1,866) — (1,579) Net change in pension plan benefits — — — — Ending Balance $ (1,255) $ (115,523) $ (7,031) $ (123,809) March 31, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (503) (63,808) — (64,311) Less: net realized (gains) losses reclassified to earnings (59) (82) — (141) Net change in pension plan benefits — — — — Ending Balance $ (562) $ (50,915) $ (6,020) $ (57,497) The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the periods ending March 31, 2023, and December 31, 2022 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income March 31, 2023 March 31, 2022 Cash flow hedges: Interest rate contracts $ (363) $ 75 Interest income Tax effect 76 (16) Income tax expense (benefit) Net of Tax $ (287) 59 Available-for-sale securities: Realized gains (losses) on securities $ — $ 104 Net gains/(losses) on securities Realized gains (losses) on basis adjustment for fair value hedges 2,362 — Interest income Tax effect (496) (22) Income tax expense (benefit) Net of Tax $ 1,866 $ 82 Total reclassifications, net of tax $ 1,579 $ 141 Net income	Accumulated Other Comprehensive Income (Loss) The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the three and six months ended June 30, 2023, and June 30, 2022 (in thousands): Three months ended June 30, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,255) $ (115,523) $ (7,031) $ (123,809) Net unrealized gains (losses) (275) (5,254) — (5,529) Less: net realized (gains) losses reclassified to earnings 334 2,827 — 3,161 Net change in pension plan benefits — — — — Ending Balance $ (1,196) $ (117,950) $ (7,031) $ (126,177) Three months ended June 30, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (562) $ (50,915) $ (6,020) $ (57,497) Net unrealized gains (losses) (362) (46,277) — (46,639) Less: net realized (gains) losses reclassified to earnings (85) — — (85) Net change in pension plan benefits — — — — Ending Balance $ (1,009) $ (97,192) $ (6,020) $ (104,221) Six months ended June 30, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) Net unrealized gains (losses) (228) 11,964 — 11,736 Less: net realized (gains) losses reclassified to earnings 621 961 — 1,582 Net change in pension plan benefits — — — — Ending Balance $ (1,196) $ (117,950) $ (7,031) $ (126,177) Six months ended June 30, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (865) (110,085) — (110,950) Less: net realized (gains) losses reclassified to earnings (144) (82) — (226) Net change in pension plan benefits — — — — Ending Balance $ (1,009) $ (97,192) $ (6,020) $ (104,221) The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2023, and June 30, 2022 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Cash flow hedges: Interest rate contracts $ (423) $ 108 $ (786) $ 182 Interest income Tax effect 89 (23) 165 (38) Income tax expense (benefit) Net of tax $ (334) $ 85 $ (621) $ 144 Available-for-sale securities: Realized gains (losses) on securities $ (111) $ — $ (111) $ 104 Net gains/(losses) on securities Realized gains (losses) on basis adjustment for fair value hedges (3,468) — (1,106) — Interest income Tax effect 752 — 256 (22) Income tax expense (benefit) Net of tax $ (2,827) $ — $ (961) $ 82 Total reclassifications, net of tax $ (3,161) $ 85 $ (1,582) $ 226 Net income	Accumulated Other Comprehensive Income (Loss) The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ending December 31, 2022, 2021 and 2020 (in thousands): December 31, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (1,721) (144,209) — (145,930) Less: net realized (gains) losses reclassified to earnings 132 359 — 491 Net change in pension plan benefits — — (1,011) (1,011) Ending Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) December 31, 2021 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 28,905 $ (6,325) $ 22,580 Net unrealized gains (losses) — (15,933) — (15,933) Less: net realized (gains) losses reclassified to earnings — 3 — 3 Net change in pension plan benefits — — 305 305 Ending Balance $ — $ 12,975 $ (6,020) $ 6,955 December 31, 2020 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 7,838 $ (6,412) $ 1,426 Net unrealized gains (losses) — 22,603 — 22,603 Less: net realized (gains) losses reclassified to earnings — (1,536) — (1,536) Net change in pension plan benefits — 87 87 Ending Balance $ — $ 28,905 $ (6,325) $ 22,580 The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the years ending December 31, 2022, 2021, and 2020 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income 2022 2021 2020 Cash flow hedges: Interest rate contracts $ (167) $ — $ — Interest income Tax effect 35 — — Income tax expense (benefit) Net of Tax $ (132) $ — $ — Available-for-sale securities: Realized gains (losses) on securities $ (454) $ (4) $ 1,944 Net gains/(losses) on securities Tax effect 95 1 (408) Income tax expense (benefit) Net of Tax $ (359) $ (3) $ 1,536 Defined benefit pension plan: Amortization of actuarial gain / (loss) $ 1,280 $ (386) $ 110 Pension and other employee benefits Tax effect (269) 81 (23) Income tax expense (benefit) Net of Tax $ 1,011 $ (305) $ 87 Total reclassifications, net of tax $ 520 $ (308) $ 1,623 Net income Note: The Defined benefit pension plan items are included in the computation of net periodic pension cost. See Note 8— Defined Benefit Pension Plan , for additional information.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods ending March 31, 2023, and March 31, 2022 (in thousands): March 31, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) Net unrealized gains (losses) 47 17,218 — 17,265 Less: net realized (gains) losses reclassified to earnings 287 (1,866) — (1,579) Net change in pension plan benefits — — — — Ending Balance $ (1,255) $ (115,523) $ (7,031) $ (123,809) March 31, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (503) (63,808) — (64,311) Less: net realized (gains) losses reclassified to earnings (59) (82) — (141) Net change in pension plan benefits — — — — Ending Balance $ (562) $ (50,915) $ (6,020) $ (57,497) The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the periods ending March 31, 2023, and December 31, 2022 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income March 31, 2023 March 31, 2022 Cash flow hedges: Interest rate contracts $ (363) $ 75 Interest income Tax effect 76 (16) Income tax expense (benefit) Net of Tax $ (287) 59 Available-for-sale securities: Realized gains (losses) on securities $ — $ 104 Net gains/(losses) on securities Realized gains (losses) on basis adjustment for fair value hedges 2,362 — Interest income Tax effect (496) (22) Income tax expense (benefit) Net of Tax $ 1,866 $ 82 Total reclassifications, net of tax $ 1,579 $ 141 Net income	Accumulated Other Comprehensive Income (Loss) The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the three and six months ended June 30, 2023, and June 30, 2022 (in thousands): Three months ended June 30, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,255) $ (115,523) $ (7,031) $ (123,809) Net unrealized gains (losses) (275) (5,254) — (5,529) Less: net realized (gains) losses reclassified to earnings 334 2,827 — 3,161 Net change in pension plan benefits — — — — Ending Balance $ (1,196) $ (117,950) $ (7,031) $ (126,177) Three months ended June 30, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (562) $ (50,915) $ (6,020) $ (57,497) Net unrealized gains (losses) (362) (46,277) — (46,639) Less: net realized (gains) losses reclassified to earnings (85) — — (85) Net change in pension plan benefits — — — — Ending Balance $ (1,009) $ (97,192) $ (6,020) $ (104,221) Six months ended June 30, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) Net unrealized gains (losses) (228) 11,964 — 11,736 Less: net realized (gains) losses reclassified to earnings 621 961 — 1,582 Net change in pension plan benefits — — — — Ending Balance $ (1,196) $ (117,950) $ (7,031) $ (126,177) Six months ended June 30, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (865) (110,085) — (110,950) Less: net realized (gains) losses reclassified to earnings (144) (82) — (226) Net change in pension plan benefits — — — — Ending Balance $ (1,009) $ (97,192) $ (6,020) $ (104,221) The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2023, and June 30, 2022 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Cash flow hedges: Interest rate contracts $ (423) $ 108 $ (786) $ 182 Interest income Tax effect 89 (23) 165 (38) Income tax expense (benefit) Net of tax $ (334) $ 85 $ (621) $ 144 Available-for-sale securities: Realized gains (losses) on securities $ (111) $ — $ (111) $ 104 Net gains/(losses) on securities Realized gains (losses) on basis adjustment for fair value hedges (3,468) — (1,106) — Interest income Tax effect 752 — 256 (22) Income tax expense (benefit) Net of tax $ (2,827) $ — $ (961) $ 82 Total reclassifications, net of tax $ (3,161) $ 85 $ (1,582) $ 226 Net income	Accumulated Other Comprehensive Income (Loss) The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ending December 31, 2022, 2021 and 2020 (in thousands): December 31, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (1,721) (144,209) — (145,930) Less: net realized (gains) losses reclassified to earnings 132 359 — 491 Net change in pension plan benefits — — (1,011) (1,011) Ending Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) December 31, 2021 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 28,905 $ (6,325) $ 22,580 Net unrealized gains (losses) — (15,933) — (15,933) Less: net realized (gains) losses reclassified to earnings — 3 — 3 Net change in pension plan benefits — — 305 305 Ending Balance $ — $ 12,975 $ (6,020) $ 6,955 December 31, 2020 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 7,838 $ (6,412) $ 1,426 Net unrealized gains (losses) — 22,603 — 22,603 Less: net realized (gains) losses reclassified to earnings — (1,536) — (1,536) Net change in pension plan benefits — 87 87 Ending Balance $ — $ 28,905 $ (6,325) $ 22,580 The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the years ending December 31, 2022, 2021, and 2020 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income 2022 2021 2020 Cash flow hedges: Interest rate contracts $ (167) $ — $ — Interest income Tax effect 35 — — Income tax expense (benefit) Net of Tax $ (132) $ — $ — Available-for-sale securities: Realized gains (losses) on securities $ (454) $ (4) $ 1,944 Net gains/(losses) on securities Tax effect 95 1 (408) Income tax expense (benefit) Net of Tax $ (359) $ (3) $ 1,536 Defined benefit pension plan: Amortization of actuarial gain / (loss) $ 1,280 $ (386) $ 110 Pension and other employee benefits Tax effect (269) 81 (23) Income tax expense (benefit) Net of Tax $ 1,011 $ (305) $ 87 Total reclassifications, net of tax $ 520 $ (308) $ 1,623 Net income Note: The Defined benefit pension plan items are included in the computation of net periodic pension cost. See Note 8— Defined Benefit Pension Plan , for additional information.

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods ending March 31, 2023, and March 31, 2022 (in thousands): March 31, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) Net unrealized gains (losses) 47 17,218 — 17,265 Less: net realized (gains) losses reclassified to earnings 287 (1,866) — (1,579) Net change in pension plan benefits — — — — Ending Balance $ (1,255) $ (115,523) $ (7,031) $ (123,809) March 31, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (503) (63,808) — (64,311) Less: net realized (gains) losses reclassified to earnings (59) (82) — (141) Net change in pension plan benefits — — — — Ending Balance $ (562) $ (50,915) $ (6,020) $ (57,497) The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the periods ending March 31, 2023, and December 31, 2022 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income March 31, 2023 March 31, 2022 Cash flow hedges: Interest rate contracts $ (363) $ 75 Interest income Tax effect 76 (16) Income tax expense (benefit) Net of Tax $ (287) 59 Available-for-sale securities: Realized gains (losses) on securities $ — $ 104 Net gains/(losses) on securities Realized gains (losses) on basis adjustment for fair value hedges 2,362 — Interest income Tax effect (496) (22) Income tax expense (benefit) Net of Tax $ 1,866 $ 82 Total reclassifications, net of tax $ 1,579 $ 141 Net income	Accumulated Other Comprehensive Income (Loss) The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the three and six months ended June 30, 2023, and June 30, 2022 (in thousands): Three months ended June 30, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,255) $ (115,523) $ (7,031) $ (123,809) Net unrealized gains (losses) (275) (5,254) — (5,529) Less: net realized (gains) losses reclassified to earnings 334 2,827 — 3,161 Net change in pension plan benefits — — — — Ending Balance $ (1,196) $ (117,950) $ (7,031) $ (126,177) Three months ended June 30, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (562) $ (50,915) $ (6,020) $ (57,497) Net unrealized gains (losses) (362) (46,277) — (46,639) Less: net realized (gains) losses reclassified to earnings (85) — — (85) Net change in pension plan benefits — — — — Ending Balance $ (1,009) $ (97,192) $ (6,020) $ (104,221) Six months ended June 30, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) Net unrealized gains (losses) (228) 11,964 — 11,736 Less: net realized (gains) losses reclassified to earnings 621 961 — 1,582 Net change in pension plan benefits — — — — Ending Balance $ (1,196) $ (117,950) $ (7,031) $ (126,177) Six months ended June 30, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (865) (110,085) — (110,950) Less: net realized (gains) losses reclassified to earnings (144) (82) — (226) Net change in pension plan benefits — — — — Ending Balance $ (1,009) $ (97,192) $ (6,020) $ (104,221) The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2023, and June 30, 2022 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Cash flow hedges: Interest rate contracts $ (423) $ 108 $ (786) $ 182 Interest income Tax effect 89 (23) 165 (38) Income tax expense (benefit) Net of tax $ (334) $ 85 $ (621) $ 144 Available-for-sale securities: Realized gains (losses) on securities $ (111) $ — $ (111) $ 104 Net gains/(losses) on securities Realized gains (losses) on basis adjustment for fair value hedges (3,468) — (1,106) — Interest income Tax effect 752 — 256 (22) Income tax expense (benefit) Net of tax $ (2,827) $ — $ (961) $ 82 Total reclassifications, net of tax $ (3,161) $ 85 $ (1,582) $ 226 Net income	Accumulated Other Comprehensive Income (Loss) The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ending December 31, 2022, 2021 and 2020 (in thousands): December 31, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (1,721) (144,209) — (145,930) Less: net realized (gains) losses reclassified to earnings 132 359 — 491 Net change in pension plan benefits — — (1,011) (1,011) Ending Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) December 31, 2021 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 28,905 $ (6,325) $ 22,580 Net unrealized gains (losses) — (15,933) — (15,933) Less: net realized (gains) losses reclassified to earnings — 3 — 3 Net change in pension plan benefits — — 305 305 Ending Balance $ — $ 12,975 $ (6,020) $ 6,955 December 31, 2020 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 7,838 $ (6,412) $ 1,426 Net unrealized gains (losses) — 22,603 — 22,603 Less: net realized (gains) losses reclassified to earnings — (1,536) — (1,536) Net change in pension plan benefits — 87 87 Ending Balance $ — $ 28,905 $ (6,325) $ 22,580 The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the years ending December 31, 2022, 2021, and 2020 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income 2022 2021 2020 Cash flow hedges: Interest rate contracts $ (167) $ — $ — Interest income Tax effect 35 — — Income tax expense (benefit) Net of Tax $ (132) $ — $ — Available-for-sale securities: Realized gains (losses) on securities $ (454) $ (4) $ 1,944 Net gains/(losses) on securities Tax effect 95 1 (408) Income tax expense (benefit) Net of Tax $ (359) $ (3) $ 1,536 Defined benefit pension plan: Amortization of actuarial gain / (loss) $ 1,280 $ (386) $ 110 Pension and other employee benefits Tax effect (269) 81 (23) Income tax expense (benefit) Net of Tax $ 1,011 $ (305) $ 87 Total reclassifications, net of tax $ 520 $ (308) $ 1,623 Net income Note: The Defined benefit pension plan items are included in the computation of net periodic pension cost. See Note 8— Defined Benefit Pension Plan , for additional information.

Parent Company Financial Inform

Parent Company Financial Information	12 Months Ended
	Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract]
Parent Company Financial Information	Parent Company Financial Information The following tables summarize condensed financial statements for Burke & Herbert Financial Services Corp. for the periods indicated (in thousands): Parent Company Only Condensed Balance Sheet 2022 Assets Cash $ 2,000 Investment in subsidiary 271,757 Other assets 209 Total Assets $ 273,966 Liabilities Other liabilities $ 513 Total Liabilities 513 Total Shareholders’ Equity 273,453 Total Liabilities and Shareholders’ Equity $ 273,966 Parent Company Only Condensed Statement of Income 2022 Income Dividends from bank subsidiary $ 5,936 Total Income 5,936 Expense Salaries and employee benefit 426 Other operating expenses 568 Total Expense 994 Income (loss) before income tax benefit and equity in undistributed income of subsidiaries 4,942 Income tax benefit 209 Income (loss) before equity in undistributed income of subsidiaries 5,151 Equity in undistributed earnings of subsidiary 38,862 Net Income $ 44,013 Parent Company Only Condensed Statement of Cash Flows 2022 Cash Flows from Operating Activities Net income $ 44,013 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiaries (38,862) Share based compensation 481 Deferred income taxes (105) Net change in other assets 513 Net change in other liabilities (104) Net cash flows provided by operating activities $ 5,936 Cash Flows from Investing Activities — Net cash (used in) provided by investing activities $ — Cash Flows from Financing Activities Dividends paid (3,936) Net cash (used in) financing activities $ (3,936) Increase in cash and cash equivalents $ 2,000 Cash and cash equivalents Beginning of the year $ — End of the year 2,000

Other Operating Expense

Other Operating Expense	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Other Income and Expenses [Abstract]
Other Operating Expense	Other Operating Expense Other operating expense from the Consolidated Statements of Income for the three months ended March 31, 2023, and March 31, 2022, is as follows (in thousands): Three months ended 2023 2022 FDIC assessment $ 734 $ 702 Historic tax credit amortization 632 632 IT related 491 412 Consultant fees 470 212 Network expense 429 394 Directors' fees 410 245 Audit expense 307 92 Legal expense 305 175 Virginia franchise tax 243 233 Marketing expense 219 317 Other 1,367 1,258 Total $ 5,607 $ 4,672	Other Operating Expense Other operating expense from the Consolidated Statements of Income for the three and six months ended June 30, 2023, and June 30, 2022, is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 FDIC assessment $ 686 $ 345 $ 1,033 $ 680 Historic tax credit amortization 631 631 1,263 1,263 IT related 466 504 957 916 Consultant fees 508 298 978 510 Network expense 483 418 912 812 Directors' fees 434 792 844 1,037 Audit expense 213 175 520 267 Legal expense 328 412 633 587 Virginia franchise tax 630 600 1,260 1,200 Marketing expense 119 317 338 634 Other 1,520 1,366 2,887 2,624 Total $ 6,018 $ 5,858 $ 11,625 $ 10,530	Other Operating Expense Other operating expense from the Statements of Income for years ended December 31, 2022, 2021, and 2020 is as follows (in thousands): 2022 2021 2020 Directors' fees $ 1,941 $ 1,093 $ 1,147 Consultant fees 1,708 1,548 1,064 Marketing expense 1,295 1,086 509 Historic tax credit amortization 2,526 2,717 2,718 Virginia franchise tax 2,492 2,366 2,249 (Recapture of) Provision for off-balance sheet exposure — — (1,380) Network expense 1,693 1,592 1,459 FDIC assessment 958 920 460 IT related 1,980 1,306 965 (Gain)/loss on sale of buildings (4,533) (1,063) 7 Legal expense 986 275 369 Audit expense 705 302 220 Other 5,668 5,627 5,963 Total $ 17,419 $ 17,769 $ 15,750

Other Operating Expense_2

Other Operating Expense	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Other Income and Expenses [Abstract]
Other Operating Expense	Other Operating Expense Other operating expense from the Consolidated Statements of Income for the three months ended March 31, 2023, and March 31, 2022, is as follows (in thousands): Three months ended 2023 2022 FDIC assessment $ 734 $ 702 Historic tax credit amortization 632 632 IT related 491 412 Consultant fees 470 212 Network expense 429 394 Directors' fees 410 245 Audit expense 307 92 Legal expense 305 175 Virginia franchise tax 243 233 Marketing expense 219 317 Other 1,367 1,258 Total $ 5,607 $ 4,672	Other Operating Expense Other operating expense from the Consolidated Statements of Income for the three and six months ended June 30, 2023, and June 30, 2022, is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 FDIC assessment $ 686 $ 345 $ 1,033 $ 680 Historic tax credit amortization 631 631 1,263 1,263 IT related 466 504 957 916 Consultant fees 508 298 978 510 Network expense 483 418 912 812 Directors' fees 434 792 844 1,037 Audit expense 213 175 520 267 Legal expense 328 412 633 587 Virginia franchise tax 630 600 1,260 1,200 Marketing expense 119 317 338 634 Other 1,520 1,366 2,887 2,624 Total $ 6,018 $ 5,858 $ 11,625 $ 10,530	Other Operating Expense Other operating expense from the Statements of Income for years ended December 31, 2022, 2021, and 2020 is as follows (in thousands): 2022 2021 2020 Directors' fees $ 1,941 $ 1,093 $ 1,147 Consultant fees 1,708 1,548 1,064 Marketing expense 1,295 1,086 509 Historic tax credit amortization 2,526 2,717 2,718 Virginia franchise tax 2,492 2,366 2,249 (Recapture of) Provision for off-balance sheet exposure — — (1,380) Network expense 1,693 1,592 1,459 FDIC assessment 958 920 460 IT related 1,980 1,306 965 (Gain)/loss on sale of buildings (4,533) (1,063) 7 Legal expense 986 275 369 Audit expense 705 302 220 Other 5,668 5,627 5,963 Total $ 17,419 $ 17,769 $ 15,750

Other Operating Expense_2_3

Other Operating Expense	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Other Income and Expenses [Abstract]
Other Operating Expense	Other Operating Expense Other operating expense from the Consolidated Statements of Income for the three months ended March 31, 2023, and March 31, 2022, is as follows (in thousands): Three months ended 2023 2022 FDIC assessment $ 734 $ 702 Historic tax credit amortization 632 632 IT related 491 412 Consultant fees 470 212 Network expense 429 394 Directors' fees 410 245 Audit expense 307 92 Legal expense 305 175 Virginia franchise tax 243 233 Marketing expense 219 317 Other 1,367 1,258 Total $ 5,607 $ 4,672	Other Operating Expense Other operating expense from the Consolidated Statements of Income for the three and six months ended June 30, 2023, and June 30, 2022, is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 FDIC assessment $ 686 $ 345 $ 1,033 $ 680 Historic tax credit amortization 631 631 1,263 1,263 IT related 466 504 957 916 Consultant fees 508 298 978 510 Network expense 483 418 912 812 Directors' fees 434 792 844 1,037 Audit expense 213 175 520 267 Legal expense 328 412 633 587 Virginia franchise tax 630 600 1,260 1,200 Marketing expense 119 317 338 634 Other 1,520 1,366 2,887 2,624 Total $ 6,018 $ 5,858 $ 11,625 $ 10,530	Other Operating Expense Other operating expense from the Statements of Income for years ended December 31, 2022, 2021, and 2020 is as follows (in thousands): 2022 2021 2020 Directors' fees $ 1,941 $ 1,093 $ 1,147 Consultant fees 1,708 1,548 1,064 Marketing expense 1,295 1,086 509 Historic tax credit amortization 2,526 2,717 2,718 Virginia franchise tax 2,492 2,366 2,249 (Recapture of) Provision for off-balance sheet exposure — — (1,380) Network expense 1,693 1,592 1,459 FDIC assessment 958 920 460 IT related 1,980 1,306 965 (Gain)/loss on sale of buildings (4,533) (1,063) 7 Legal expense 986 275 369 Audit expense 705 302 220 Other 5,668 5,627 5,963 Total $ 17,419 $ 17,769 $ 15,750

Qualified Affordable Housing Pr

Qualified Affordable Housing Project and Historic Tax Investments	12 Months Ended
	Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]
Qualified Affordable Housing Project and Historic Tax Investments	Qualified Affordable Housing Project and Historic Tax InvestmentsThe Company invests in qualified affordable housing projects. At December 31, 2022 and 2021, the balance of the investment for qualified affordable housing projects was $23.5 million and $29.7 million, respectively. These balances are reflected in the other assets line on the Balance Sheets. Total unfunded commitments related to the investments in qualified affordable housing projects totaled $0.8 million and $1.6 million at December 31, 2022 and 2021, respectively. The Company expects to fulfill the majority of these commitments by 2024. During the year ended December 31, 2022, 2021, and 2020, the Company recognized total amortization expense of $6.1 million, $6.8 million, and $7.0 million, respectively. In 2022, 2021, and 2020, $2.5 million, $2.7 million, and $2.7 million was included in non-interest expense on the Statements of Income related to historic tax credit investments that do not qualify for the proportional amortization method. The remainder of the amortization expense was recorded as income tax expense.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	Revenue from Contracts with CustomersAll of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within non-interest income. ASC 606 is applicable to non-interest revenue streams, such as trust and wealth management income, deposit related fees, interchange fees, merchant income, and annuity and insurance commissions. The following table presents the components of non-interest income for the years ended December 31, 2022, 2021, and 2020 (in thousands): 2022 2021 2020 Service charges and fees (1) Debit card fees $ 4,454 $ 4,413 $ 3,743 Deposit related fees 2,308 1,792 1,869 Other fees 93 123 88 Fiduciary and wealth management (1) Trust fees 3,176 3,297 3,067 Advisory fees 1,575 1,342 950 Other fees 558 523 434 Net gains (losses) on securities (2) (454) (4) 1,944 Income from life insurance (2) 2,656 2,325 2,303 Other non-interest income (1) FHLB dividend (2) 484 409 501 Merchant & credit card fees 801 730 576 Safety deposit fees 394 411 394 Servicing release premium 58 1,303 1,374 Wire fees 358 372 338 Other non-interest (3) 626 215 1,423 Total non-interest income $ 17,087 $ 17,251 $ 19,004 __________________ (1) Income within the scope of ASC 606 - Revenue Recognition (2) Income excluded from the scope of ASC 606 - Revenue Recognition (3) Includes income that arises from the Company electing the FVO as stated that is not within the scope of ASC 606. A description of the Company’s revenue streams accounted for under ASC 606 follows: Income from fiduciary & wealth management activities Fiduciary and wealth management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied at a point in time (i.e., as incurred), and that allows the Company to recognize the related revenue associated with that transaction. Payment is received shortly after services are rendered. Annuity and insurance income primarily consists of commissions received on annuity product sales. The Company acts as an intermediary between the Company’s customer and the insurance carrier. The Company’s performance obligation is generally satisfied upon the issuance of the annuity policy. Shortly after the policy is issued, the carrier remits the commission payment to the Company, and the Company recognizes the revenue. The Company does not earn a significant amount of trailer fees on annuity sales. The majority of the trailer fees relates to variable annuity products and are calculated based on a percentage of market value at period end. Revenue is not recognized until the annuity’s market value can be determined. Other non-interest income consists of other recurring revenue streams, such as commissions from sales of mutual funds and other investments, investment advisor fees from the Company’s wealth management product, safety deposit box rental fees, and other miscellaneous revenue streams. Commissions from the sale of mutual funds and other investments are payable on the trade date and are received in the following month, which is when the Company has satisfied its performance obligation. The Company also receives periodic service fees (i.e., trailers) from mutual fund companies typically based on a percentage of net asset value. Trailer revenue is recorded over time, usually monthly or quarterly, as net asset value is determined. Investment advisor fees from the wealth management product are earned over time and based on an annual percentage rate of the net asset value. The investment advisor fees are charged to the customer’s account in advance on the first month of the quarter, and the revenue is recognized over the following three-month period. Service charges and fees Service charges and fees on deposit accounts consist of monthly service fees, check orders, and other deposit account related fees. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied at a point in time, and the related revenue recognized. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Fees, exchange, and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. Merchant services income mainly consists of fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation.

Share-Based Compensation

Share-Based Compensation	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation The Company has a share-based incentive plan described below that allows it to offer a variety of equity compensation awards subject to approval. Total compensation cost that has been charged against income for the share-based awards granted was $580.6 thousand and $506.2 thousand for the three months ended March 31, 2023, and March 31, 2022, respectively. The total income tax benefit was $121.9 thousand and $106.3 thousand for the three months ended March 31, 2023, and March 31, 2022, respectively. 2019 Stock Incentive Plan In 2019, the Company’s Stock Incentive Plan (“2019 SIP”) was approved by the Bank’s Board of Directors. The 2019 SIP provides for the issuance of share-based awards to directors and employees of the Company. The 2019 SIP authorized 240,000 units to be issued, and the Company has a practice of using shares held as treasury stock to satisfy these share-based awards. Each unit represents a contingent right to receive one common share or an equivalent amount of cash, or a combination of the two, at the discretion of the Company. Currently, we have a sufficient number of treasury shares to satisfy outstanding equity awards. Under the 2019 SIP, the Company has issued restricted stock unit (“RSU”) awards that are both time-based and performance-based. Each RSU award will indicate the number of shares, the conditions (e.g., service, performance, and/or a combination), and the grant date. Compensation expense is recognized over the vesting period of the awards based on the fair value of the award at grant date. A total of 24,705 and 12,160 shares were issued during the three months ended March 31, 2023, and March 31, 2022, respectively. For time-based RSUs, the fair value was determined by using the closing stock price on the date prior to the grant date. These RSUs vest over three The Board, from time-to-time, approves performance-based RSU awards that may be earned between a three The fair value for performance-based RSU awards was determined by using a Monte Carlo simulation analysis to estimate the achievement of the market capitalization target determined by the Board. The Monte Carlo simulation analysis required the following inputs: (1) expected term, (2) expected volatility, (3) risk-free rate, and (4) dividend yield. The expected term was based on the stated performance period. Management used the expected volatility from a peer group. The risk-free interest rate is based on the U.S. Treasury yield curve over the performance period. The dividend yield assumption was based on historical and anticipated dividend payouts. The following is a summary of the Company’s RSU awards: Nonvested Shares Shares Weighted-Average Grant-Date Fair Value Nonvested at December 31, 2022 122,440 $ 48.00 Granted 24,705 67.81 Vested (3,120) 50.47 Forfeited — — Nonvested at March 31, 2023 144,025 $ 51.34 As of March 31, 2023, there was $4.7 million of total unrecognized compensation costs related to nonvested shares granted under the 2019 SIP. The cost is expected to be recognized over a weighted average period of 2.08 years. 2023 Stock Incentive Plan In 2023, a new stock incentive plan (“2023 SIP”) was approved by the Board of directors and shareholders. Upon the plan’s shareholder approval date of March 30, 2023, no further share-based awards will be issued under the 2019 SIP. The plan provides for the issuance of share-based awards to directors and employees of the Company. The 2023 SIP authorized the issuance of 250,000 shares, subject to an annual increase in available shares. As of March 31, 2023, no share-based awards have been issued under the 2023 SIP.	Share-Based Compensation The Company has a share-based incentive plan described below that allows it to offer a variety of equity compensation awards subject to approval. Total compensation cost that has been charged against income for the share-based awards granted was $607.2 thousand and $492.8 thousand for the three months ended June 30, 2023, and June 30, 2022, respectively. The total income tax benefit was $127.5 thousand and $103.5 thousand for the three months ended June 30, 2023, and June 30, 2022, respectively. Total compensation cost that has been charged against income for the share-based awards granted was $1.2 million and $999 thousand for the six months ended June 30, 2023, and June 30, 2022, respectively. The total income tax benefit was $249.4 thousand and $209.8 thousand for the six months ended June 30, 2023, and June 30, 2022, respectively. 2019 Stock Incentive Plan In 2019, the Company’s Stock Incentive Plan (“2019 SIP”) was approved by the Bank’s Board of Directors. The 2019 SIP provides for the issuance of share-based awards to directors and employees of the Company. The 2019 SIP authorized 240,000 units to be issued, and the Company has a practice of using shares held as treasury stock to satisfy these share-based awards. Each unit represents a contingent right to receive one common share or an equivalent amount of cash, or a combination of the two, at the discretion of the Company. Currently, we have a sufficient number of treasury shares to satisfy outstanding equity awards. Under the 2019 SIP, the Company has issued restricted stock unit (“RSU”) awards that are both time-based and performance-based. Each RSU award will indicate the number of shares, the conditions (e.g., service, performance, and/or a combination), and the grant date. Compensation expense is recognized over the vesting period of the awards based on the fair value of the award at grant date. A total of 24,705 and 13,160 shares were issued during the six months ended June 30, 2023, and June 30, 2022, respectively. For time-based RSUs, the fair value was determined by using the closing stock price on the date prior to the grant date. These RSUs vest over three The Board, from time-to-time, approves performance-based RSU awards that may be earned between a three achieved, the grant recipient will receive 50% of the units upon fulfilling the required service time. If the performance condition is achieved, the grant recipient will receive 100% of the units granted. The market capitalization target will be determined by the Board. The fair value for performance-based RSU awards was determined by using a Monte Carlo simulation analysis to estimate the achievement of the market capitalization target determined by the Board. The Monte Carlo simulation analysis required the following inputs: (1) expected term, (2) expected volatility, (3) risk-free rate, and (4) dividend yield. The expected term was based on the stated performance period. Management used the expected volatility from a peer group. The risk-free interest rate is based on the U.S. Treasury yield curve over the performance period. The dividend yield assumption was based on historical and anticipated dividend payouts. The following is a summary of the Company’s RSU awards: Non-vested Shares Shares Weighted-Average Grant-Date Fair Value Non-vested at December 31, 2022 122,440 $ 48.00 Granted 24,705 67.81 Vested (4,560) 54.07 Forfeited — — Non-vested at June 30, 2023 142,585 $ 51.24 As of June 30, 2023, there was $4.1 million of total unrecognized compensation costs related to non-vested shares granted under the 2019 SIP. The cost is expected to be recognized over a weighted average period of 1.85 years. 2023 Stock Incentive Plan In 2023, a new stock incentive plan (“2023 SIP”) was approved by the Board of directors and shareholders. Upon the plan’s shareholder approval date of March 30, 2023, no further share-based awards will be issued under the 2019 SIP. The plan provides for the issuance of share-based awards to directors and employees of the Company. The 2023 SIP authorized the issuance of 250,000 shares, subject to an annual increase in available shares. As of June 30, 2023, no share-based awards have been issued under the 2023 SIP.	Share-Based Compensation The Company has a share-based incentive plan described below that allows it to offer a variety of equity compensation awards subject to approval. Total compensation cost that has been charged against income for the awards granted was $2.0 million, $283 thousand and $146 thousand for 2022, 2021 and 2020, respectively. The total income tax benefit was $421 thousand, $59 thousand and $31 thousand for 2022, 2021 and 2020, respectively. 2019 Stock Incentive Plan In 2019, the Company’s Stock Incentive Plan (“2019 SIP”) was approved by the Bank’s Board of Directors. The 2019 SIP provides for the issuance of stock-based awards to directors and employees of the Company. The 2019 SIP authorized the issuance of 240,000 units to be issued and the Company has a practice of using shares held as treasury stock to satisfy these awards. Each unit represents a contingent right to receive one common share or an equivalent amount of cash, or a combination of the two, at the discretion of the Company. Currently, we have a sufficient number of treasury shares to satisfy outstanding equity awards. Under the 2019 SIP, the Company has issued RSUs that are both time-based and performance-based. Each RSU award will indicate the number of shares, the conditions (e.g., service, performance, and/or a combination), and the grant date. Compensation expense is recognized over the vesting period of the awards based on the fair value of the award at grant date. A total of 13,160, 106,040, and 4,160 shares were issued in 2022, 2021, and 2020, respectively. For time-based RSUs, the fair value was determined by using the closing stock price on the date prior to the grant date. These RSUs vest over three In 2021, the Board approved performance-based RSUs that may be earned between a three recipient will receive 50% of the units. If the condition is achieved, the grant recipient will receive a 100% of the units granted. The fair value for performance-based RSUs was determined by using a Monte Carlo simulation analysis to estimate the market capitalization of the Company and whether the market capitalization met the required hurdle over a thirty-day trading period. The simulation analysis required the following inputs: (1) expected term, (2) expected volatility, (3) risk-free rate, and (4) dividend yield. The expected term was based on the stated performance period. Management used the expected volatility from a peer group. The risk-free interest rate is based on the U.S. Treasury yield curve over the performance period. The dividend yield assumption was based on historical and anticipated dividend payouts. The following is a summary of the Company’s RSUs: Nonvested Shares Shares Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2022 112,880 $ 47.49 Granted 13,160 54.78 Vested (2,000) 59.87 Forfeited (1,600) 52.92 Nonvested at December 31, 2022 122,440 $ 48.00

Share-Based Compensation_2

Share-Based Compensation	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation The Company has a share-based incentive plan described below that allows it to offer a variety of equity compensation awards subject to approval. Total compensation cost that has been charged against income for the share-based awards granted was $580.6 thousand and $506.2 thousand for the three months ended March 31, 2023, and March 31, 2022, respectively. The total income tax benefit was $121.9 thousand and $106.3 thousand for the three months ended March 31, 2023, and March 31, 2022, respectively. 2019 Stock Incentive Plan In 2019, the Company’s Stock Incentive Plan (“2019 SIP”) was approved by the Bank’s Board of Directors. The 2019 SIP provides for the issuance of share-based awards to directors and employees of the Company. The 2019 SIP authorized 240,000 units to be issued, and the Company has a practice of using shares held as treasury stock to satisfy these share-based awards. Each unit represents a contingent right to receive one common share or an equivalent amount of cash, or a combination of the two, at the discretion of the Company. Currently, we have a sufficient number of treasury shares to satisfy outstanding equity awards. Under the 2019 SIP, the Company has issued restricted stock unit (“RSU”) awards that are both time-based and performance-based. Each RSU award will indicate the number of shares, the conditions (e.g., service, performance, and/or a combination), and the grant date. Compensation expense is recognized over the vesting period of the awards based on the fair value of the award at grant date. A total of 24,705 and 12,160 shares were issued during the three months ended March 31, 2023, and March 31, 2022, respectively. For time-based RSUs, the fair value was determined by using the closing stock price on the date prior to the grant date. These RSUs vest over three The Board, from time-to-time, approves performance-based RSU awards that may be earned between a three The fair value for performance-based RSU awards was determined by using a Monte Carlo simulation analysis to estimate the achievement of the market capitalization target determined by the Board. The Monte Carlo simulation analysis required the following inputs: (1) expected term, (2) expected volatility, (3) risk-free rate, and (4) dividend yield. The expected term was based on the stated performance period. Management used the expected volatility from a peer group. The risk-free interest rate is based on the U.S. Treasury yield curve over the performance period. The dividend yield assumption was based on historical and anticipated dividend payouts. The following is a summary of the Company’s RSU awards: Nonvested Shares Shares Weighted-Average Grant-Date Fair Value Nonvested at December 31, 2022 122,440 $ 48.00 Granted 24,705 67.81 Vested (3,120) 50.47 Forfeited — — Nonvested at March 31, 2023 144,025 $ 51.34 As of March 31, 2023, there was $4.7 million of total unrecognized compensation costs related to nonvested shares granted under the 2019 SIP. The cost is expected to be recognized over a weighted average period of 2.08 years. 2023 Stock Incentive Plan In 2023, a new stock incentive plan (“2023 SIP”) was approved by the Board of directors and shareholders. Upon the plan’s shareholder approval date of March 30, 2023, no further share-based awards will be issued under the 2019 SIP. The plan provides for the issuance of share-based awards to directors and employees of the Company. The 2023 SIP authorized the issuance of 250,000 shares, subject to an annual increase in available shares. As of March 31, 2023, no share-based awards have been issued under the 2023 SIP.	Share-Based Compensation The Company has a share-based incentive plan described below that allows it to offer a variety of equity compensation awards subject to approval. Total compensation cost that has been charged against income for the share-based awards granted was $607.2 thousand and $492.8 thousand for the three months ended June 30, 2023, and June 30, 2022, respectively. The total income tax benefit was $127.5 thousand and $103.5 thousand for the three months ended June 30, 2023, and June 30, 2022, respectively. Total compensation cost that has been charged against income for the share-based awards granted was $1.2 million and $999 thousand for the six months ended June 30, 2023, and June 30, 2022, respectively. The total income tax benefit was $249.4 thousand and $209.8 thousand for the six months ended June 30, 2023, and June 30, 2022, respectively. 2019 Stock Incentive Plan In 2019, the Company’s Stock Incentive Plan (“2019 SIP”) was approved by the Bank’s Board of Directors. The 2019 SIP provides for the issuance of share-based awards to directors and employees of the Company. The 2019 SIP authorized 240,000 units to be issued, and the Company has a practice of using shares held as treasury stock to satisfy these share-based awards. Each unit represents a contingent right to receive one common share or an equivalent amount of cash, or a combination of the two, at the discretion of the Company. Currently, we have a sufficient number of treasury shares to satisfy outstanding equity awards. Under the 2019 SIP, the Company has issued restricted stock unit (“RSU”) awards that are both time-based and performance-based. Each RSU award will indicate the number of shares, the conditions (e.g., service, performance, and/or a combination), and the grant date. Compensation expense is recognized over the vesting period of the awards based on the fair value of the award at grant date. A total of 24,705 and 13,160 shares were issued during the six months ended June 30, 2023, and June 30, 2022, respectively. For time-based RSUs, the fair value was determined by using the closing stock price on the date prior to the grant date. These RSUs vest over three The Board, from time-to-time, approves performance-based RSU awards that may be earned between a three achieved, the grant recipient will receive 50% of the units upon fulfilling the required service time. If the performance condition is achieved, the grant recipient will receive 100% of the units granted. The market capitalization target will be determined by the Board. The fair value for performance-based RSU awards was determined by using a Monte Carlo simulation analysis to estimate the achievement of the market capitalization target determined by the Board. The Monte Carlo simulation analysis required the following inputs: (1) expected term, (2) expected volatility, (3) risk-free rate, and (4) dividend yield. The expected term was based on the stated performance period. Management used the expected volatility from a peer group. The risk-free interest rate is based on the U.S. Treasury yield curve over the performance period. The dividend yield assumption was based on historical and anticipated dividend payouts. The following is a summary of the Company’s RSU awards: Non-vested Shares Shares Weighted-Average Grant-Date Fair Value Non-vested at December 31, 2022 122,440 $ 48.00 Granted 24,705 67.81 Vested (4,560) 54.07 Forfeited — — Non-vested at June 30, 2023 142,585 $ 51.24 As of June 30, 2023, there was $4.1 million of total unrecognized compensation costs related to non-vested shares granted under the 2019 SIP. The cost is expected to be recognized over a weighted average period of 1.85 years. 2023 Stock Incentive Plan In 2023, a new stock incentive plan (“2023 SIP”) was approved by the Board of directors and shareholders. Upon the plan’s shareholder approval date of March 30, 2023, no further share-based awards will be issued under the 2019 SIP. The plan provides for the issuance of share-based awards to directors and employees of the Company. The 2023 SIP authorized the issuance of 250,000 shares, subject to an annual increase in available shares. As of June 30, 2023, no share-based awards have been issued under the 2023 SIP.	Share-Based Compensation The Company has a share-based incentive plan described below that allows it to offer a variety of equity compensation awards subject to approval. Total compensation cost that has been charged against income for the awards granted was $2.0 million, $283 thousand and $146 thousand for 2022, 2021 and 2020, respectively. The total income tax benefit was $421 thousand, $59 thousand and $31 thousand for 2022, 2021 and 2020, respectively. 2019 Stock Incentive Plan In 2019, the Company’s Stock Incentive Plan (“2019 SIP”) was approved by the Bank’s Board of Directors. The 2019 SIP provides for the issuance of stock-based awards to directors and employees of the Company. The 2019 SIP authorized the issuance of 240,000 units to be issued and the Company has a practice of using shares held as treasury stock to satisfy these awards. Each unit represents a contingent right to receive one common share or an equivalent amount of cash, or a combination of the two, at the discretion of the Company. Currently, we have a sufficient number of treasury shares to satisfy outstanding equity awards. Under the 2019 SIP, the Company has issued RSUs that are both time-based and performance-based. Each RSU award will indicate the number of shares, the conditions (e.g., service, performance, and/or a combination), and the grant date. Compensation expense is recognized over the vesting period of the awards based on the fair value of the award at grant date. A total of 13,160, 106,040, and 4,160 shares were issued in 2022, 2021, and 2020, respectively. For time-based RSUs, the fair value was determined by using the closing stock price on the date prior to the grant date. These RSUs vest over three In 2021, the Board approved performance-based RSUs that may be earned between a three recipient will receive 50% of the units. If the condition is achieved, the grant recipient will receive a 100% of the units granted. The fair value for performance-based RSUs was determined by using a Monte Carlo simulation analysis to estimate the market capitalization of the Company and whether the market capitalization met the required hurdle over a thirty-day trading period. The simulation analysis required the following inputs: (1) expected term, (2) expected volatility, (3) risk-free rate, and (4) dividend yield. The expected term was based on the stated performance period. Management used the expected volatility from a peer group. The risk-free interest rate is based on the U.S. Treasury yield curve over the performance period. The dividend yield assumption was based on historical and anticipated dividend payouts. The following is a summary of the Company’s RSUs: Nonvested Shares Shares Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2022 112,880 $ 47.49 Granted 13,160 54.78 Vested (2,000) 59.87 Forfeited (1,600) 52.92 Nonvested at December 31, 2022 122,440 $ 48.00

Share-Based Compensation_2_3

Share-Based Compensation	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation The Company has a share-based incentive plan described below that allows it to offer a variety of equity compensation awards subject to approval. Total compensation cost that has been charged against income for the share-based awards granted was $580.6 thousand and $506.2 thousand for the three months ended March 31, 2023, and March 31, 2022, respectively. The total income tax benefit was $121.9 thousand and $106.3 thousand for the three months ended March 31, 2023, and March 31, 2022, respectively. 2019 Stock Incentive Plan In 2019, the Company’s Stock Incentive Plan (“2019 SIP”) was approved by the Bank’s Board of Directors. The 2019 SIP provides for the issuance of share-based awards to directors and employees of the Company. The 2019 SIP authorized 240,000 units to be issued, and the Company has a practice of using shares held as treasury stock to satisfy these share-based awards. Each unit represents a contingent right to receive one common share or an equivalent amount of cash, or a combination of the two, at the discretion of the Company. Currently, we have a sufficient number of treasury shares to satisfy outstanding equity awards. Under the 2019 SIP, the Company has issued restricted stock unit (“RSU”) awards that are both time-based and performance-based. Each RSU award will indicate the number of shares, the conditions (e.g., service, performance, and/or a combination), and the grant date. Compensation expense is recognized over the vesting period of the awards based on the fair value of the award at grant date. A total of 24,705 and 12,160 shares were issued during the three months ended March 31, 2023, and March 31, 2022, respectively. For time-based RSUs, the fair value was determined by using the closing stock price on the date prior to the grant date. These RSUs vest over three The Board, from time-to-time, approves performance-based RSU awards that may be earned between a three The fair value for performance-based RSU awards was determined by using a Monte Carlo simulation analysis to estimate the achievement of the market capitalization target determined by the Board. The Monte Carlo simulation analysis required the following inputs: (1) expected term, (2) expected volatility, (3) risk-free rate, and (4) dividend yield. The expected term was based on the stated performance period. Management used the expected volatility from a peer group. The risk-free interest rate is based on the U.S. Treasury yield curve over the performance period. The dividend yield assumption was based on historical and anticipated dividend payouts. The following is a summary of the Company’s RSU awards: Nonvested Shares Shares Weighted-Average Grant-Date Fair Value Nonvested at December 31, 2022 122,440 $ 48.00 Granted 24,705 67.81 Vested (3,120) 50.47 Forfeited — — Nonvested at March 31, 2023 144,025 $ 51.34 As of March 31, 2023, there was $4.7 million of total unrecognized compensation costs related to nonvested shares granted under the 2019 SIP. The cost is expected to be recognized over a weighted average period of 2.08 years. 2023 Stock Incentive Plan In 2023, a new stock incentive plan (“2023 SIP”) was approved by the Board of directors and shareholders. Upon the plan’s shareholder approval date of March 30, 2023, no further share-based awards will be issued under the 2019 SIP. The plan provides for the issuance of share-based awards to directors and employees of the Company. The 2023 SIP authorized the issuance of 250,000 shares, subject to an annual increase in available shares. As of March 31, 2023, no share-based awards have been issued under the 2023 SIP.	Share-Based Compensation The Company has a share-based incentive plan described below that allows it to offer a variety of equity compensation awards subject to approval. Total compensation cost that has been charged against income for the share-based awards granted was $607.2 thousand and $492.8 thousand for the three months ended June 30, 2023, and June 30, 2022, respectively. The total income tax benefit was $127.5 thousand and $103.5 thousand for the three months ended June 30, 2023, and June 30, 2022, respectively. Total compensation cost that has been charged against income for the share-based awards granted was $1.2 million and $999 thousand for the six months ended June 30, 2023, and June 30, 2022, respectively. The total income tax benefit was $249.4 thousand and $209.8 thousand for the six months ended June 30, 2023, and June 30, 2022, respectively. 2019 Stock Incentive Plan In 2019, the Company’s Stock Incentive Plan (“2019 SIP”) was approved by the Bank’s Board of Directors. The 2019 SIP provides for the issuance of share-based awards to directors and employees of the Company. The 2019 SIP authorized 240,000 units to be issued, and the Company has a practice of using shares held as treasury stock to satisfy these share-based awards. Each unit represents a contingent right to receive one common share or an equivalent amount of cash, or a combination of the two, at the discretion of the Company. Currently, we have a sufficient number of treasury shares to satisfy outstanding equity awards. Under the 2019 SIP, the Company has issued restricted stock unit (“RSU”) awards that are both time-based and performance-based. Each RSU award will indicate the number of shares, the conditions (e.g., service, performance, and/or a combination), and the grant date. Compensation expense is recognized over the vesting period of the awards based on the fair value of the award at grant date. A total of 24,705 and 13,160 shares were issued during the six months ended June 30, 2023, and June 30, 2022, respectively. For time-based RSUs, the fair value was determined by using the closing stock price on the date prior to the grant date. These RSUs vest over three The Board, from time-to-time, approves performance-based RSU awards that may be earned between a three achieved, the grant recipient will receive 50% of the units upon fulfilling the required service time. If the performance condition is achieved, the grant recipient will receive 100% of the units granted. The market capitalization target will be determined by the Board. The fair value for performance-based RSU awards was determined by using a Monte Carlo simulation analysis to estimate the achievement of the market capitalization target determined by the Board. The Monte Carlo simulation analysis required the following inputs: (1) expected term, (2) expected volatility, (3) risk-free rate, and (4) dividend yield. The expected term was based on the stated performance period. Management used the expected volatility from a peer group. The risk-free interest rate is based on the U.S. Treasury yield curve over the performance period. The dividend yield assumption was based on historical and anticipated dividend payouts. The following is a summary of the Company’s RSU awards: Non-vested Shares Shares Weighted-Average Grant-Date Fair Value Non-vested at December 31, 2022 122,440 $ 48.00 Granted 24,705 67.81 Vested (4,560) 54.07 Forfeited — — Non-vested at June 30, 2023 142,585 $ 51.24 As of June 30, 2023, there was $4.1 million of total unrecognized compensation costs related to non-vested shares granted under the 2019 SIP. The cost is expected to be recognized over a weighted average period of 1.85 years. 2023 Stock Incentive Plan In 2023, a new stock incentive plan (“2023 SIP”) was approved by the Board of directors and shareholders. Upon the plan’s shareholder approval date of March 30, 2023, no further share-based awards will be issued under the 2019 SIP. The plan provides for the issuance of share-based awards to directors and employees of the Company. The 2023 SIP authorized the issuance of 250,000 shares, subject to an annual increase in available shares. As of June 30, 2023, no share-based awards have been issued under the 2023 SIP.	Share-Based Compensation The Company has a share-based incentive plan described below that allows it to offer a variety of equity compensation awards subject to approval. Total compensation cost that has been charged against income for the awards granted was $2.0 million, $283 thousand and $146 thousand for 2022, 2021 and 2020, respectively. The total income tax benefit was $421 thousand, $59 thousand and $31 thousand for 2022, 2021 and 2020, respectively. 2019 Stock Incentive Plan In 2019, the Company’s Stock Incentive Plan (“2019 SIP”) was approved by the Bank’s Board of Directors. The 2019 SIP provides for the issuance of stock-based awards to directors and employees of the Company. The 2019 SIP authorized the issuance of 240,000 units to be issued and the Company has a practice of using shares held as treasury stock to satisfy these awards. Each unit represents a contingent right to receive one common share or an equivalent amount of cash, or a combination of the two, at the discretion of the Company. Currently, we have a sufficient number of treasury shares to satisfy outstanding equity awards. Under the 2019 SIP, the Company has issued RSUs that are both time-based and performance-based. Each RSU award will indicate the number of shares, the conditions (e.g., service, performance, and/or a combination), and the grant date. Compensation expense is recognized over the vesting period of the awards based on the fair value of the award at grant date. A total of 13,160, 106,040, and 4,160 shares were issued in 2022, 2021, and 2020, respectively. For time-based RSUs, the fair value was determined by using the closing stock price on the date prior to the grant date. These RSUs vest over three In 2021, the Board approved performance-based RSUs that may be earned between a three recipient will receive 50% of the units. If the condition is achieved, the grant recipient will receive a 100% of the units granted. The fair value for performance-based RSUs was determined by using a Monte Carlo simulation analysis to estimate the market capitalization of the Company and whether the market capitalization met the required hurdle over a thirty-day trading period. The simulation analysis required the following inputs: (1) expected term, (2) expected volatility, (3) risk-free rate, and (4) dividend yield. The expected term was based on the stated performance period. Management used the expected volatility from a peer group. The risk-free interest rate is based on the U.S. Treasury yield curve over the performance period. The dividend yield assumption was based on historical and anticipated dividend payouts. The following is a summary of the Company’s RSUs: Nonvested Shares Shares Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2022 112,880 $ 47.49 Granted 13,160 54.78 Vested (2,000) 59.87 Forfeited (1,600) 52.92 Nonvested at December 31, 2022 122,440 $ 48.00

Earnings Per Share

Earnings Per Share	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential impact of contingently issuable shares. The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. Three Months Ended March 31, 2023 2022 Net income (in thousands) $ 7,524 $ 9,126 Weighted average number of shares 7,426,638 7,424,059 Options effect of dilutive shares 77,835 27,799 Weighted average dilutive shares 7,504,473 7,451,858 Basic EPS $ 1.01 $ 1.23 Diluted EPS 1.00 1.23 Stock awards equivalent to zero and zero shares of Common Stock were not considered in computing diluted earnings per common share for March 31, 2023, and March 31, 2022, respectively, because they were antidilutive.	Earnings Per ShareBasic earnings per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential impact of contingently issuable shares. The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net income (in thousands) $ 6,034 $ 10,397 $ 13,558 $ 19,523 Weighted average number of shares 7,428,079 7,424,747 7,427,363 7,424,405 Options effect of dilutive shares 86,876 31,339 82,468 29,570 Weighted average dilutive shares 7,514,955 7,456,086 7,509,831 7,453,975 Basic EPS $ 0.81 $ 1.40 $ 1.82 $ 2.63 Diluted EPS 0.80 1.39 1.80 2.62 Stock awards equivalent to zero and 890 shares of Common Stock were not considered in computing diluted earnings per common share for the three months ended June 30, 2023, and June 30, 2022, respectively, because they were antidilutive. Stock awards equivalent to zero and zero shares of Common Stock were not considered in computing diluted earnings per share for the six months ended June 30, 2023, and June 30, 2022, respectively, because they were antidilutive.	Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential impact of contingently issuable shares. The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. 2022 2021 2020 Net income (in thousands) $ 44,013 $ 36,165 $ 26,499 Weighted average number of shares 7,425,088 7,424,405 7,453,651 Options effect of dilutive shares 42,629 5,659 809 Weighted average dilutive shares 7,467,717 7,430,064 7,454,460 Basic EPS $ 5.93 $ 4.87 $ 3.56 Diluted EPS 5.89 4.87 3.55 Stock awards equivalent to zero, 462, and 5,727 shares of Common Stock were not considered in computing diluted earnings per common share for 2022, 2021, and 2020, respectively, because they were antidilutive.

Earnings Per Share_2

Earnings Per Share	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential impact of contingently issuable shares. The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. Three Months Ended March 31, 2023 2022 Net income (in thousands) $ 7,524 $ 9,126 Weighted average number of shares 7,426,638 7,424,059 Options effect of dilutive shares 77,835 27,799 Weighted average dilutive shares 7,504,473 7,451,858 Basic EPS $ 1.01 $ 1.23 Diluted EPS 1.00 1.23 Stock awards equivalent to zero and zero shares of Common Stock were not considered in computing diluted earnings per common share for March 31, 2023, and March 31, 2022, respectively, because they were antidilutive.	Earnings Per ShareBasic earnings per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential impact of contingently issuable shares. The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net income (in thousands) $ 6,034 $ 10,397 $ 13,558 $ 19,523 Weighted average number of shares 7,428,079 7,424,747 7,427,363 7,424,405 Options effect of dilutive shares 86,876 31,339 82,468 29,570 Weighted average dilutive shares 7,514,955 7,456,086 7,509,831 7,453,975 Basic EPS $ 0.81 $ 1.40 $ 1.82 $ 2.63 Diluted EPS 0.80 1.39 1.80 2.62 Stock awards equivalent to zero and 890 shares of Common Stock were not considered in computing diluted earnings per common share for the three months ended June 30, 2023, and June 30, 2022, respectively, because they were antidilutive. Stock awards equivalent to zero and zero shares of Common Stock were not considered in computing diluted earnings per share for the six months ended June 30, 2023, and June 30, 2022, respectively, because they were antidilutive.	Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential impact of contingently issuable shares. The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. 2022 2021 2020 Net income (in thousands) $ 44,013 $ 36,165 $ 26,499 Weighted average number of shares 7,425,088 7,424,405 7,453,651 Options effect of dilutive shares 42,629 5,659 809 Weighted average dilutive shares 7,467,717 7,430,064 7,454,460 Basic EPS $ 5.93 $ 4.87 $ 3.56 Diluted EPS 5.89 4.87 3.55 Stock awards equivalent to zero, 462, and 5,727 shares of Common Stock were not considered in computing diluted earnings per common share for 2022, 2021, and 2020, respectively, because they were antidilutive.

Earnings Per Share_2_3

Earnings Per Share	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential impact of contingently issuable shares. The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. Three Months Ended March 31, 2023 2022 Net income (in thousands) $ 7,524 $ 9,126 Weighted average number of shares 7,426,638 7,424,059 Options effect of dilutive shares 77,835 27,799 Weighted average dilutive shares 7,504,473 7,451,858 Basic EPS $ 1.01 $ 1.23 Diluted EPS 1.00 1.23 Stock awards equivalent to zero and zero shares of Common Stock were not considered in computing diluted earnings per common share for March 31, 2023, and March 31, 2022, respectively, because they were antidilutive.	Earnings Per ShareBasic earnings per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential impact of contingently issuable shares. The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net income (in thousands) $ 6,034 $ 10,397 $ 13,558 $ 19,523 Weighted average number of shares 7,428,079 7,424,747 7,427,363 7,424,405 Options effect of dilutive shares 86,876 31,339 82,468 29,570 Weighted average dilutive shares 7,514,955 7,456,086 7,509,831 7,453,975 Basic EPS $ 0.81 $ 1.40 $ 1.82 $ 2.63 Diluted EPS 0.80 1.39 1.80 2.62 Stock awards equivalent to zero and 890 shares of Common Stock were not considered in computing diluted earnings per common share for the three months ended June 30, 2023, and June 30, 2022, respectively, because they were antidilutive. Stock awards equivalent to zero and zero shares of Common Stock were not considered in computing diluted earnings per share for the six months ended June 30, 2023, and June 30, 2022, respectively, because they were antidilutive.	Earnings Per Share Basic earnings per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential impact of contingently issuable shares. The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. 2022 2021 2020 Net income (in thousands) $ 44,013 $ 36,165 $ 26,499 Weighted average number of shares 7,425,088 7,424,405 7,453,651 Options effect of dilutive shares 42,629 5,659 809 Weighted average dilutive shares 7,467,717 7,430,064 7,454,460 Basic EPS $ 5.93 $ 4.87 $ 3.56 Diluted EPS 5.89 4.87 3.55 Stock awards equivalent to zero, 462, and 5,727 shares of Common Stock were not considered in computing diluted earnings per common share for 2022, 2021, and 2020, respectively, because they were antidilutive.

Nature of Business Activities_4

Nature of Business Activities and Significant Accounting Policies (Policies)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Principles of consolidation			The consolidated financial statements include Burke & Herbert Financial Services Corp. and its wholly owned subsidiary Burke & Herbert Bank & Trust Company (“the Bank”), together referred to as “the Company.” Intercompany transactions and balances are eliminated in consolidation.
Use of estimates			Use of estimates To prepare financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”), management makes estimates and assumptions based on available information that affects the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash, cash equivalents and cash flows			Cash, cash equivalents and cash flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand and amounts due from banks, including cash items in process of clearing with maturities fewer than 90 days. Cash flows from loans, federal funds purchased and sold, securities sold under agreements to repurchase and deposits are reported on a net basis.
Restriction on cash			Restriction on cash No reserve balances were required at December 31, 2022 and December 31, 2021. There was no reserve requirement with the Federal Reserve as of December 31, 2022 or December 31, 2021.
Debt & equity securities			Debt & equity securities Management determines the appropriate classification of debt securities at the time of purchase. Debt securities that the Company has both the positive intent and ability to hold to maturity are classified as held to maturity and are reported at cost, adjusted for amortization of premiums and accretion of discounts. Debt securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity, are classified as available-for-sale and are reported at fair value. Unrealized gains and losses on investments classified as available-for-sale have been accounted for as a separate component of accumulated other comprehensive income or loss, net of the related deferred tax effect. Amortization of premiums and accretion of discounts are recognized in interest income over the terms of the securities. Any decision to sell a security classified as available-for-sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Management evaluates debt securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For debt securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a debt security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized costs and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the statements of income and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Equity securities are carried at fair value with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical, or a similar, investment.
Loans held for sale			Loans held for sale Loans held for sale are those loans the Company has the intent to sell in the foreseeable future. The Company has elected to use the fair value accounting option (“FVO”) for loans held for sale. Gains and losses on sales of loans are recognized at settlement dates and are determined by the difference between the sales proceeds and the fair value of the loans. All sales are made without recourse and are sold with servicing released.
Loan commitments and related financial instruments			Loan commitments and related financial instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.
Mortgage banking			Mortgage banking The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (interest rate lock commitments). Interest rate lock commitments on mortgage loans to be held for sale are accounted for as free standing derivatives. The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 15 to 90 days. The Company protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Company is not exposed to significant losses nor will it realize significant gains related to rate lock commitments due to changes in interest rates. The Company has elected to use the FVO for best effort forward sales commitments.
Derivatives			Derivatives At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to the likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), or (3) an instrument with no hedging designation (“stand-alone derivative”). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in current earnings as respective fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives not designated or that do not qualify for hedge accounting are reported currently in earnings as non-interest income. Accrued settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense based on the item being hedged. Accrued settlements on derivatives not designated or that do not qualify for hedge accounting are reported in non-interest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows of the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk-management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended.
Loans			Loans The Company loan portfolio segments include (i) commercial real estate, (ii) single family residential (1-4 units), (iii) owner-occupied commercial real estate, (iv) acquisition, construction and development, (v) commercial & industrial, and (vi) consumer non-real estate and other. Risk factors evaluated include the economic environment’s impact on each portfolio segment and the following specific risk factors: • Commercial real estate loans carry risk associated with either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. Other risk factors include the credit-worthiness of the sponsor and the value of the collateral. • Single family residential (1-4 units) loans for consumer purposes carry risk associated with the continued credit-worthiness of the borrower and the value of the collateral. Single family residential (1-4 units) loans for investment purposes carry risk associated with the continued credit-worthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. • Owner-occupied commercial real estate loans carry risk associated with the operations of the business that occupies the property and the value of the collateral. • Acquisition, construction and development loans carry risk associated with the credit-worthiness of the borrower, project completion within budget, sale after completion, and the value of the collateral. • Commercial & industrial loans carry risk associated with the operations of the business and the value of the collateral, if any. • Consumer non-real estate and other loans carry risk associated with the credit-worthiness of the borrower and the value of the collateral, if any. The Company’s recorded investments in loans that management has the intent and ability to hold for the foreseeable future, until maturity or until pay-off, generally are reported at their outstanding unpaid principal balances, adjusted for partial charge-offs, the allowance for loan losses, and any deferred fees and costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees and costs are deferred and recognized as an adjustment of the related loan yield using the interest method without anticipating prepayments. For all portfolio segments, the accrual of interest is discontinued at the time a loan becomes 90 days delinquent, unless the credit is well-secured and in process of collection. Loans also are placed on nonaccrual if collection of principal or interest is considered impaired. All interest accrued, but not received, for loans placed on non-accrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. For all portfolio segments, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and a history of on-time payments has again been established.
Concentrations of credit			Concentrations of credit Substantially all of the Company’s loans, commitments, and standby letters of credit have been granted to customers in the Company’s market area. Such customers are general depositors of the Company. Some investments in state and municipal securities also involve governmental entities within the Company’s market area. The distribution of commitments to extend credit approximates the distribution of loans outstanding. Standby letters of credit are granted primarily to commercial borrowers.
Troubled debt restructuring (“TDR”)			Troubled debt restructuring (“TDR”) Loans are classified as a TDR, if a concession was granted in connection with the modification, for legal or economic reasons, related to the debtor’s financial difficulties. Management strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of collateral. In cases where borrowers are granted new terms that provided for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for any impaired loans. Troubled debt restructurings are individually evaluated for impairment and included in the separately identified impairment disclosures. TDRs are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For TDRs that subsequently default, the Company determines the amount of the allowance on that loan in accordance with the accounting policy for the allowance for loan losses on loans individually identified as impaired. The Company incorporates recent historical experience related to TDRs, including the performance of TDRs that subsequently default, into the calculation of the allowance by loan portfolio segment. The Company is monitoring COVID-19 related modifications. If loans within this population require subsequent modifications, including payment extensions beyond six months, the Company will consider the borrower’s financial status at the time of the request and the effect of all modifications, past and requested, on the loan. If the borrower is deemed to be in financial difficulty that is not short-term and the impact of all modifications is considered to amount to a concession under U.S. GAAP, the loan will be designated a TDR. The Company is also
Allowance for loan losses			Allowance for loan losses The allowance for loan losses is established to absorb probable losses inherent in outstanding loans through a provision for loan losses charged to earnings. Credit losses are charged against the allowance. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a quarterly basis by management and is based upon (i) past loan loss experience for each portfolio segment as adjusted by environmental factors plus a risk adjustment based on the risk rating of the loan, and (ii) a loan by loan analysis of all other loans which are rated as either in a nonaccrual status or classified as troubled debt restructuring. Loan ratings include: • Pass-rated loans include all loans which are considered to be either high quality, good quality or acceptable quality. Borrowers have an acceptable financial condition with demonstrated repayment ability. • Special mention loans have potential developing weaknesses that deserve extra attention. If the developing weakness is not corrected or mitigated, there may be deterioration in the ability of the borrower to repay. • Substandard is a regulatory classification. Loans rated substandard are considered to have well-defined weakness and there is a possibility that some future loss will be sustained if such weakness is not corrected. • Doubtful is a regulatory classification. Loans rated doubtful have all of the weaknesses inherent in those rated substandard, with the added characteristic that the severity of the weaknesses makes collection or liquidation in full highly questionable. The probability of some loss is high. • Loss represents a classification for loans which are considered uncollectible and are in the process of being charged off. Historical credit losses for each portfolio segment are adjusted by environmental factors which include (i) changes in lending policies and procedures, including underwriting standards, and collection, charge-off, and recovery practices; (ii) changes in national and local economic and business conditions, including the conditions of various market segments; (iii) changes in the nature and volume of the portfolio; (iv) changes in the experience, ability, and depth of lending management and staff; (v) changes in the volume and severity of past due and classified loans and the volume of nonaccruals, troubled debt restructurings, and other loan modifications; (vi) changes in the quality of the Company’s loan review system and the degree of oversight by the Company’s Board; (vii) the existence and effect of any concentrations of credit and changes in the level of such concentrations; and (viii) the effect of external factors, such as competition and legal and regulatory requirements, on the level of estimated credit losses in the Company’s current portfolio. This evaluation is inherently subjective since it requires estimates that are susceptible to significant revision as additional information becomes available or as economic conditions change. Impaired, collateral dependent loans may be charged down to the net realizable value of the collateral. Alternatively, a specific allowance may be established when the discounted cash flows (or collateral value of observable market price) of the impaired loan are less than the carrying value of that loan. For all portfolio segments, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. For all portfolio segments, a loan is charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed.
Premises and equipment			Premises and equipment Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation. Buildings and related components are depreciated using the straight-line method with useful lives up to 40 years. Furniture, fixtures and equipment are depreciated using the straight-line method (or accelerated) method with useful lives ranging from 3 to 10 years. Maintenance and repairs are charged to expense as incurred and major improvements are capitalized.
Company-owned life insurance			Company-owned life insurance The Company has purchased life insurance policies on certain employees. Company-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.
Transfers of financial assets			Transfers of financial assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
Other real estate owned (OREO)			Other real estate owned (OREO) Assets acquired through foreclosure or other proceedings are initially recorded at fair value at the date of foreclosure less estimated costs of disposal, which establishes a new cost. After foreclosure, valuations periodically are performed by management and the foreclosed assets held for sale are carried at the lower of cost or fair value less estimated costs of disposal. Any write-down to fair value at the time of transfer to foreclosed assets is charged to the allowance for loan losses. All subsequent gains on sale, losses on sale, and additional write-downs are included in net gains/(losses) on other real estate owned. Revenue and expenses from the operations of foreclosed assets are included in other non-interest income and other operating expenses.
Income taxes			Income taxes The Company accounts for income taxes in accordance with income tax accounting guidance. The Company has adopted the accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.
Employee benefits			Employee benefits The Company has a noncontributory defined benefit pension plan that was frozen to new participants on June 1, 2005. The Company also has a defined contribution plan (The Investment and Savings Plan) with a salary deferral provision, which covers all employees in the month following their date of hire if they have reached the age of 18. The Company’s funding policy for the defined benefit plan is to make annual contributions to the Plan in amounts that are determined based on actuarial valuations and recommendations and which meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974.
Per share data			Per share dataThe Company’s capital structure includes a stock-based compensation plan, which may be dilutive to earnings per share (“EPS”). Basic EPS is calculated by dividing net income by the weighted average number of shares outstanding during the year. Diluted EPS is calculated by assuming dilution of common shares and adjusting net income for compensation cost attributable to the stock-based compensation plan.
Trust assets and fees			Trust assets and fees Assets of the trust department, other than trust cash on deposit at the Company, are not included in these financial statements because they are not assets of the Company. Trust fees are recognized in income using the accrual method.
Loss contingencies			Loss contingenciesLoss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated.
Comprehensive income (loss)			Comprehensive income (loss)Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available-for-sale, unrealized gains and losses on cash flow hedges, and changes in the funded status of the pension plan, which are also recognized as separate components of equity.
Leases			LeasesLease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor.
Fair value of financial instruments			Fair value of financial instruments Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.
Stock-based compensation			Stock-based compensation Compensation cost is recognized for equity awards issued to employees and directors, based on the fair value of these awards at the date of grant using an observable market price. The Company classifies stock awards as equity. Compensation cost is recognized over the required service period on a straight-line basis. The Company’s accounting policy is to recognize forfeitures as they occur.
Segment reporting			Segment reporting The Company operates in one segment – Community Banking and the financial performance of this one segment is used to make resource allocations and performance decisions. While the chief decision-maker monitors the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Individual operating results are not reviewed by senior management to make resource allocation or performance decisions. Therefore, all of the financial service operations are considered by management to be aggregated in one reportable operating segment.
Reclassifications			Reclassifications Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholder’s equity.
Recent Accounting Pronouncements	Adoption of new accounting standards Derivatives and Hedging On March 28, 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method . The purpose of this updated guidance is to further align risk management objectives with hedge accounting results on the application of the last-of-layer method, which was first introduced in ASU 2017-02, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2022-01 is effective for public business entities for fiscal years beginning after December 15, 2022. ASU 2022-01 requires a modified retrospective transition method for basis adjustments in which the entity will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company adopted this ASU on January 1, 2023, on a prospective basis; therefore, there was no impact to the consolidated financial statements. Allowance for Credit Losses On January 1, 2023, the Company adopted ASU 2016-13 : Measurement of Credit Losses on Financial Instruments ( “ASC 326” ) , as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The CECL methodology requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, as well as future forecasts including reasonable and supportable forecasts and other forecast periods. CECL generally applies to financial assets measured at amortized cost and some off-balance sheet credit exposures, such as unfunded commitments to extend credit. Financial assets measured at amortized cost are presented as the net amount expected to be collected. In addition, CECL made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell. The Company adopted ASC 326 and all related subsequent amendments thereto effective January 1, 2023, using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the new CECL standard resulted in a cumulative-effect adjustment that increased the allowance for credit losses for loans by $4.1 million and increased the allowance for unfunded commitments by $274.8 thousand. Retained earnings, net of deferred taxes, decreased by $3.4 million. Results for reporting periods beginning after January 1, 2023, are presented under ASU 2016-13, while prior period amounts continue to be reported in accordance with the incurred loss model under the previously applicable GAAP. The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities. The Company did not record an ACL for securities upon adoption. The Company elected not to measure an ACL for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on non-accrual status, which is generally when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectible interest. On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures	Adoption of new accounting standards Derivatives and Hedging On March 28, 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method . The purpose of this updated guidance is to further align risk management objectives with hedge accounting results on the application of the last-of-layer method, which was first introduced in ASU 2017-02, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2022-01 is effective for public business entities for fiscal years beginning after December 15, 2022. ASU 2022-01 requires a modified retrospective transition method for basis adjustments in which the entity will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company adopted this ASU on January 1, 2023; therefore, there was no impact to the consolidated financial statements. Allowance for Credit Losses On January 1, 2023, the Company adopted ASU 2016-13 : Measurement of Credit Losses on Financial Instruments (“ASC 326”), as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The CECL methodology requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, as well as future forecasts including reasonable and supportable forecasts and other forecast periods. CECL generally applies to financial assets measured at amortized cost and some off-balance sheet credit exposures, such as unfunded commitments to extend credit. Financial assets measured at amortized cost are presented as the net amount expected to be collected. In addition, CECL made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell. The Company adopted ASC 326 and all related subsequent amendments thereto effective January 1, 2023, using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the new CECL standard resulted in a cumulative-effect adjustment that increased the allowance for credit losses for loans by $4.1 million and increased the allowance for unfunded commitments by $274.8 thousand. Retained earnings, net of deferred taxes, decreased by $3.4 million. Results for reporting periods beginning after January 1, 2023, are presented under ASU 2016-13, while prior period amounts continue to be reported in accordance with the incurred loss model under the previously applicable GAAP. The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities. The Company did not record an ACL for securities upon adoption. The Company elected not to measure an ACL for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on non-accrual status, which generally occurs when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectible interest. On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures	Recent Accounting Pronouncements The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13: Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments to replace the incurred loss model for loans and other financial assets with an expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in certain leases recognized by a lessor. In addition, the amendments in Topic 326 require credit losses on available-for-sale to be presented as a valuation allowance rather than as a direct write-down (e.g. OTTI). The FASB has issued multiple updates to ASU 2016-13 as codified in Topic 326, including ASUs 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. The Company as an EGC filer that is taking advantage of the extended transition period, we plan to adopt the standard for fiscal years, and interim periods within those years, beginning after December 15, 2022. Absent this extended transition period, SEC filers were required to adopt this standard for fiscal years beginning after December 15, 2019. As part of the Company’s implementation efforts, we have engaged a third-party vendor, reconciled historical loan, charge-off and recovery data and determined segmentation of the loan portfolio for application of the current expected credit losses calculation. The Company has also designed calculation methodologies under the new guidance and have engaged an external vendor to perform model validation. The Company is currently designing appropriate controls and management review prior to the adoption of the standard. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition. Upon transition: • the Company does not expect an impact to its debt securities based on not having any debt security classified as held-to-maturity and having no OTTI on our existing portfolio of debt securities. • for all other assets within the scope of CECL, a cumulative-effect adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective. Subsequently, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses - (Topic 326) - Troubled Debt Restructurings and Vintage Disclosures, which eliminates the recognition and measurement guidance for TDRs by creditors in ASC 310-40. This Update also enhances disclosure requirements for certain loan restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for a TDRs, an entity will apply the loan refinancing and restructuring guidance to determine whether a modification or other form of restructuring results in a new loan or a continuation of an existing loan. The effective date for the amendments in this Update are the same as the effective dates in Update 2016-13. This Update requires prospective transition for the disclosures related to loan restructurings for borrowers experiencing financial difficulty and the presentation of gross write-offs in the vintage disclosures. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition. In March 2020, the FASB issued ASU No. 2020-04: Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. Subsequently, in January 2021, the FASB issued ASU No. 2021-01: Reference Rate Reform (Topic 848): Scope. This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply ASU No. 2021-01 on contract modifications that change the interest rate used for margining, discounting, or contract price alignment retrospectively as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications from any date within the interim period that includes or is subsequent to January 7, 2021, up to the date that financial statements are available to be issued. The Company does not believe this will have material impacts on its financial statements. An entity may elect to apply ASU No. 2021-01 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020, and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. The Company has limited exposure to the number of loans tied to LIBOR and these loans are in process of being modif ied through modifications to the relevant legal agreements. For any new loans, the Company is using an alternative rate as an index. ASU 2020-01 will not have material impact on the Company.
Fair Value Measurements	Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held-for-sale, at fair value The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. Individually evaluated loans Upon the adoption of CECL, loans individually evaluated for credit expected losses included non-accrual loans and other loans that do not share similar risk characteristics to loans in the CECL loan pools and have been classified as Level 3. Individually evaluated loans with an allocation to the ACL are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income. Prior to adoption of CECL and ASU 2022-02, which eliminated the TDR accounting model, loans were designated as impaired when, in the judgment of management and based on current information and events, it was probable that all amounts due, according to the contractual terms of the loan agreement, would not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan, the present value of the expected future cash flows, or the fair value of the collateral. Generally, the fair value of impaired loans will be determined by the present value of the expected future cash flows or if collateral-dependent based on recent real estate appraisals. For collateral-dependent, the fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets, including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals, which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings.	Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held-for-sale, at fair value The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. Individually evaluated loans Upon the adoption of CECL, loans individually evaluated for credit expected losses included non-accrual loans and other loans that do not share similar risk characteristics to loans in the CECL loan pools and have been classified as Level 3. Individually evaluated loans with an allocation to the ACL are measured at fair value on a non-recurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income. Prior to adoption of CECL and ASU 2022-02, which eliminated the TDR accounting model, loans were designated as impaired when, in the judgment of management and based on current information and events, it was probable that all amounts due, according to the contractual terms of the loan agreement, would not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan, the present value of the expected future cash flows, or the fair value of the collateral. Generally, the fair value of impaired loans will be determined by the present value of the expected future cash flows or if collateral-dependent based on recent real estate appraisals. For collateral-dependent, the fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets, including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals, which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings.	Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held for sale, at fair value The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. Impaired loans Loans are designated as impaired, when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected when due. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Generally, the fair value of impaired loans with specific allocations of the allowance for loan losses is based on recent real estate appraisals. Fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings.

Nature of Business Activities_5

Nature of Business Activities and Significant Accounting Policies (Policies)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include Burke & Herbert Financial Services Corp. and its wholly owned subsidiary Burke & Herbert Bank & Trust Company and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and with applicable quarterly reporting regulations of the U.S. Securities and Exchange Commission (“SEC”). The accounting and reporting policies of the Company conform to GAAP and reflect practices of the banking industry. They do not include all of the information and notes required by GAAP for complete financial statements. As such, these unaudited financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ending December 31, 2022, included in the Company’s Registration Statement on Form 10 filed with the SEC on February 28, 2023, as amended on April 4, 2023, April 20, 2023, and April 21, 2023, and as declared as effective by the SEC on April 21, 2023. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions between the Company and the Bank have been eliminated. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.	Basis of Presentation The accompanying consolidated financial statements include Burke & Herbert Financial Services Corp. and its wholly owned subsidiary Burke & Herbert Bank & Trust Company and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and with applicable quarterly reporting regulations of the U.S. Securities and Exchange Commission (“SEC”). The accounting and reporting policies of the Company conform to GAAP and reflect practices of the banking industry. They do not include all of the information and notes required by GAAP for complete financial statements. As such, these unaudited financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ending December 31, 2022, included in the Company’s Registration Statement on Form 10 filed with the SEC on February 28, 2023, as amended on April 4, 2023, April 20, 2023, and April 21, 2023, and as declared as effective by the SEC on April 21, 2023. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions between the Company and the Bank have been eliminated. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Adoption of new accounting standards	Adoption of new accounting standards Derivatives and Hedging On March 28, 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method . The purpose of this updated guidance is to further align risk management objectives with hedge accounting results on the application of the last-of-layer method, which was first introduced in ASU 2017-02, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2022-01 is effective for public business entities for fiscal years beginning after December 15, 2022. ASU 2022-01 requires a modified retrospective transition method for basis adjustments in which the entity will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company adopted this ASU on January 1, 2023, on a prospective basis; therefore, there was no impact to the consolidated financial statements. Allowance for Credit Losses On January 1, 2023, the Company adopted ASU 2016-13 : Measurement of Credit Losses on Financial Instruments ( “ASC 326” ) , as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The CECL methodology requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, as well as future forecasts including reasonable and supportable forecasts and other forecast periods. CECL generally applies to financial assets measured at amortized cost and some off-balance sheet credit exposures, such as unfunded commitments to extend credit. Financial assets measured at amortized cost are presented as the net amount expected to be collected. In addition, CECL made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell. The Company adopted ASC 326 and all related subsequent amendments thereto effective January 1, 2023, using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the new CECL standard resulted in a cumulative-effect adjustment that increased the allowance for credit losses for loans by $4.1 million and increased the allowance for unfunded commitments by $274.8 thousand. Retained earnings, net of deferred taxes, decreased by $3.4 million. Results for reporting periods beginning after January 1, 2023, are presented under ASU 2016-13, while prior period amounts continue to be reported in accordance with the incurred loss model under the previously applicable GAAP. The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities. The Company did not record an ACL for securities upon adoption. The Company elected not to measure an ACL for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on non-accrual status, which is generally when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectible interest. On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures	Adoption of new accounting standards Derivatives and Hedging On March 28, 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method . The purpose of this updated guidance is to further align risk management objectives with hedge accounting results on the application of the last-of-layer method, which was first introduced in ASU 2017-02, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2022-01 is effective for public business entities for fiscal years beginning after December 15, 2022. ASU 2022-01 requires a modified retrospective transition method for basis adjustments in which the entity will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company adopted this ASU on January 1, 2023; therefore, there was no impact to the consolidated financial statements. Allowance for Credit Losses On January 1, 2023, the Company adopted ASU 2016-13 : Measurement of Credit Losses on Financial Instruments (“ASC 326”), as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The CECL methodology requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, as well as future forecasts including reasonable and supportable forecasts and other forecast periods. CECL generally applies to financial assets measured at amortized cost and some off-balance sheet credit exposures, such as unfunded commitments to extend credit. Financial assets measured at amortized cost are presented as the net amount expected to be collected. In addition, CECL made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell. The Company adopted ASC 326 and all related subsequent amendments thereto effective January 1, 2023, using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the new CECL standard resulted in a cumulative-effect adjustment that increased the allowance for credit losses for loans by $4.1 million and increased the allowance for unfunded commitments by $274.8 thousand. Retained earnings, net of deferred taxes, decreased by $3.4 million. Results for reporting periods beginning after January 1, 2023, are presented under ASU 2016-13, while prior period amounts continue to be reported in accordance with the incurred loss model under the previously applicable GAAP. The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities. The Company did not record an ACL for securities upon adoption. The Company elected not to measure an ACL for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on non-accrual status, which generally occurs when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectible interest. On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures	Recent Accounting Pronouncements The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13: Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments to replace the incurred loss model for loans and other financial assets with an expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in certain leases recognized by a lessor. In addition, the amendments in Topic 326 require credit losses on available-for-sale to be presented as a valuation allowance rather than as a direct write-down (e.g. OTTI). The FASB has issued multiple updates to ASU 2016-13 as codified in Topic 326, including ASUs 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. The Company as an EGC filer that is taking advantage of the extended transition period, we plan to adopt the standard for fiscal years, and interim periods within those years, beginning after December 15, 2022. Absent this extended transition period, SEC filers were required to adopt this standard for fiscal years beginning after December 15, 2019. As part of the Company’s implementation efforts, we have engaged a third-party vendor, reconciled historical loan, charge-off and recovery data and determined segmentation of the loan portfolio for application of the current expected credit losses calculation. The Company has also designed calculation methodologies under the new guidance and have engaged an external vendor to perform model validation. The Company is currently designing appropriate controls and management review prior to the adoption of the standard. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition. Upon transition: • the Company does not expect an impact to its debt securities based on not having any debt security classified as held-to-maturity and having no OTTI on our existing portfolio of debt securities. • for all other assets within the scope of CECL, a cumulative-effect adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective. Subsequently, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses - (Topic 326) - Troubled Debt Restructurings and Vintage Disclosures, which eliminates the recognition and measurement guidance for TDRs by creditors in ASC 310-40. This Update also enhances disclosure requirements for certain loan restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for a TDRs, an entity will apply the loan refinancing and restructuring guidance to determine whether a modification or other form of restructuring results in a new loan or a continuation of an existing loan. The effective date for the amendments in this Update are the same as the effective dates in Update 2016-13. This Update requires prospective transition for the disclosures related to loan restructurings for borrowers experiencing financial difficulty and the presentation of gross write-offs in the vintage disclosures. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition. In March 2020, the FASB issued ASU No. 2020-04: Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. Subsequently, in January 2021, the FASB issued ASU No. 2021-01: Reference Rate Reform (Topic 848): Scope. This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply ASU No. 2021-01 on contract modifications that change the interest rate used for margining, discounting, or contract price alignment retrospectively as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications from any date within the interim period that includes or is subsequent to January 7, 2021, up to the date that financial statements are available to be issued. The Company does not believe this will have material impacts on its financial statements. An entity may elect to apply ASU No. 2021-01 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020, and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. The Company has limited exposure to the number of loans tied to LIBOR and these loans are in process of being modif ied through modifications to the relevant legal agreements. For any new loans, the Company is using an alternative rate as an index. ASU 2020-01 will not have material impact on the Company.
Allowance for credit losses and Accrued Interest Receivable	Allowance for credit losses - available-for-sale debt securities Management evaluates all available-for-sale (“AFS”) debt securities in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. The Company first assesses whether it intends to sell or if it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists, and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as credit loss expense (or recapture). Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. At March 31, 2023, there was no ACL related to the AFS security portfolio. Refer to Note 2 - Securities in Notes to the Consolidated Financial Statements. Allowance for credit losses - loans The ACL represents an amount, which, in management’s judgment, reflects expected credit losses in the loan portfolio at the balance sheet date. The estimate for expected credit losses is based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions, and prepayment experience as related to credit contractual term information. The ACL is measured and recorded upon the initial recognition of a financial asset. The ACL is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision for (or recapture of) credit losses, which is recorded in the Consolidated Statements of Income. The ACL for expected credit losses is determined based on a quantitative assessment of two categories of loans: collectively evaluated loans and individually evaluated loans. In addition, the ACL also includes a qualitative component which adjusts the CECL model for risk factors that are not considered within the CECL model, but are relevant in assessing the expected credit losses within the loan portfolio. The Company is using a remaining useful life or weighted average remaining maturity (“WARM”) methodology to estimate its current expected credit losses. For purposes of calculating reserves in collectively evaluated loans, ACL calculation segments the Company’s loan portfolio using federal call codes to group loans which share similar risk characteristics. In order to generate reasonable and supportable forecasts of loss rates over a two-year period, the ACL calculation utilizes macroeconomic variable loss drivers, which may include aggregate macroeconomic indicators pertaining to such items as equity market conditions or interest rates, as well as other variables that are portfolio-specific, such as those that pertain to the commercial real estate or residential loan portfolios. A straight-line reversion technique is used for the following four quarters, and in following quarters, the ACL calculation reverts to historical average loss rates. Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond information used to calculate reasonable and supportable, reversion and post-reversion period forecasts on collectively evaluated loans. As the reasonable and supportable and reversion period forecasts reflect the use of the macroeconomic variable loss drivers, management may consider that an additional or reduced reserve is warranted through qualitative risk factors based on current and expected conditions, including those that utilize supplemental information relative to the macroeconomic variable loss drivers. Many of these qualitative risk factors considered by management are comparable to legacy factors prior to the adoption of CECL and include the following: • Nature and volume of loans; • Concentrations of credit; • Delinquency trends; • Experience, ability, and depth of management and lending staff; and • Quality of loan review system. Loans that do not share similar risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans collectively evaluated. A specific reserve analysis is applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the expected future cash flows. A specific reserve may be assigned if the measured value of the loan using one of the before mentioned methods is less than the current carrying value of the loan. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient to measure the ACL based on the fair value of the collateral. A loan is considered collateral-dependent when the Company determines foreclosure is probable or the borrower is experiencing financial difficulty and the Company expects repayment to be provided substantially through the operation or sale of the collateral. Collateral could be in the form of real estate, equipment, or business assets. An ACL may result for a collateral-dependent loan if the fair value of the underlying collateral, as of the reporting date, adjusted for expected costs to repair or sell, was less than the amortized cost basis of the loan. If repayment of the loan is instead dependent only on the operation, rather than the sale of the collateral, the measure of the ACL does not incorporate estimated costs to sell. For loans analyzed on the basis of projected future principal and interest cash flows, the Company will discount the expected cash flows at the effective interest rate of the loan, and an ACL would result if the present value of the expected cash flows was less than the amortized cost basis of the loan. When the discounted cash flow method is used to determine the ACL, management does not adjust the effective interest rate used to discount cash flows to incorporate expected prepayments. Allowance for credit losses on off-balance sheet credit exposures On a quarterly basis, the Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on off-balance sheet credit exposures is adjusted through the provision for credit losses on the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life by loan segment at each balance sheet date under the CECL model using the same methodology as the loan portfolio. The ACL for unfunded commitments is included in accrued interest and other liabilities on the Company’s Consolidated Balance Sheets. Accrued Interest Receivable	Allowance for credit losses - available-for-sale debt securities Management evaluates all available-for-sale (“AFS”) debt securities in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. The Company first assesses whether it intends to sell or if it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists, and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as credit loss expense (or recapture). Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. At June 30, 2023, there was no ACL related to the AFS security portfolio. Refer to Note 2 - Securities in Notes to the Consolidated Financial Statements. Allowance for credit losses - loans The ACL represents an amount, which, in management’s judgment, reflects expected credit losses in the loan portfolio at the balance sheet date. The estimate for expected credit losses is based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions, and prepayment experience as related to credit contractual term information. The ACL is measured and recorded upon the initial recognition of a financial asset. The ACL is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision for (or recapture of) credit losses, which is recorded in the Consolidated Statements of Income. The ACL for expected credit losses is determined based on a quantitative assessment of two categories of loans: collectively evaluated loans and individually evaluated loans. In addition, the ACL also includes a qualitative component which adjusts the CECL model for risk factors that are not considered within the CECL model, but are relevant in assessing the expected credit losses within the loan portfolio. The Company is using a remaining useful life or weighted average remaining maturity (“WARM”) methodology to estimate its current expected credit losses. For purposes of calculating reserves in collectively evaluated loans, the ACL calculation segments the Company’s loan portfolio using federal call codes to group loans which share similar risk characteristics. In order to generate reasonable and supportable forecasts of loss rates over a two-year period, the ACL calculation utilizes macroeconomic variable loss drivers, which may include aggregate macroeconomic indicators pertaining to such items as equity market conditions or interest rates, as well as other variables that are portfolio-specific, such as those that pertain to the commercial real estate or residential loan portfolios. A straight-line reversion technique is used for the following four quarters, and in following quarters, the ACL calculation reverts to historical average loss rates. Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond information used to calculate reasonable and supportable, reversion and post-reversion period forecasts on collectively evaluated loans. As the reasonable and supportable and reversion period forecasts reflect the use of the macroeconomic variable loss drivers, management may consider that an additional or reduced reserve is warranted through qualitative risk factors based on current and expected conditions, including those that utilize supplemental information relative to the macroeconomic variable loss drivers. Many of these qualitative risk factors considered by management are comparable to legacy factors prior to the adoption of CECL and include the following: • Nature and volume of loans; • Concentrations of credit; • Delinquency trends; • Experience, ability, and depth of management and lending staff; and • Quality of loan review system. Loans that do not share similar risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans collectively evaluated. A specific reserve analysis is applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the expected future cash flows. A specific reserve may be assigned if the measured value of the loan using one of the before mentioned methods is less than the current carrying value of the loan. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient to measure the ACL based on the fair value of the collateral. A loan is considered collateral-dependent when the Company determines foreclosure is probable or the borrower is experiencing financial difficulty and the Company expects repayment to be provided substantially through the operation or sale of the collateral. Collateral could be in the form of real estate, equipment, or business assets. An ACL may result for a collateral-dependent loan if the fair value of the underlying collateral, as of the reporting date, adjusted for expected costs to repair or sell, was less than the amortized cost basis of the loan. If repayment of the loan is instead dependent only on the operation, rather than the sale of the collateral, the measure of the ACL does not incorporate estimated costs to sell. For loans analyzed on the basis of projected future principal and interest cash flows, the Company will discount the expected cash flows at the effective interest rate of the loan, and an ACL would result if the present value of the expected cash flows was less than the amortized cost basis of the loan. When the discounted cash flow method is used to determine the ACL, management does not adjust the effective interest rate used to discount cash flows to incorporate expected prepayments. Allowance for credit losses on off-balance sheet credit exposures On a quarterly basis, the Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on off-balance sheet credit exposures is adjusted through the provision for credit losses on the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life by loan segment at each balance sheet date under the CECL model using the same methodology as the loan portfolio. The ACL for unfunded commitments is included in accrued interest and other liabilities on the Company’s Consolidated Balance Sheets. Accrued Interest Receivable
Fair Value Measurements	Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held-for-sale, at fair value The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. Individually evaluated loans Upon the adoption of CECL, loans individually evaluated for credit expected losses included non-accrual loans and other loans that do not share similar risk characteristics to loans in the CECL loan pools and have been classified as Level 3. Individually evaluated loans with an allocation to the ACL are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income. Prior to adoption of CECL and ASU 2022-02, which eliminated the TDR accounting model, loans were designated as impaired when, in the judgment of management and based on current information and events, it was probable that all amounts due, according to the contractual terms of the loan agreement, would not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan, the present value of the expected future cash flows, or the fair value of the collateral. Generally, the fair value of impaired loans will be determined by the present value of the expected future cash flows or if collateral-dependent based on recent real estate appraisals. For collateral-dependent, the fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets, including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals, which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings.	Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held-for-sale, at fair value The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. Individually evaluated loans Upon the adoption of CECL, loans individually evaluated for credit expected losses included non-accrual loans and other loans that do not share similar risk characteristics to loans in the CECL loan pools and have been classified as Level 3. Individually evaluated loans with an allocation to the ACL are measured at fair value on a non-recurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income. Prior to adoption of CECL and ASU 2022-02, which eliminated the TDR accounting model, loans were designated as impaired when, in the judgment of management and based on current information and events, it was probable that all amounts due, according to the contractual terms of the loan agreement, would not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan, the present value of the expected future cash flows, or the fair value of the collateral. Generally, the fair value of impaired loans will be determined by the present value of the expected future cash flows or if collateral-dependent based on recent real estate appraisals. For collateral-dependent, the fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets, including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals, which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings.	Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held for sale, at fair value The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. Impaired loans Loans are designated as impaired, when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected when due. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Generally, the fair value of impaired loans with specific allocations of the allowance for loan losses is based on recent real estate appraisals. Fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings.

Nature of Business Activities_6

Nature of Business Activities and Significant Accounting Policies (Policies)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include Burke & Herbert Financial Services Corp. and its wholly owned subsidiary Burke & Herbert Bank & Trust Company and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and with applicable quarterly reporting regulations of the U.S. Securities and Exchange Commission (“SEC”). The accounting and reporting policies of the Company conform to GAAP and reflect practices of the banking industry. They do not include all of the information and notes required by GAAP for complete financial statements. As such, these unaudited financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ending December 31, 2022, included in the Company’s Registration Statement on Form 10 filed with the SEC on February 28, 2023, as amended on April 4, 2023, April 20, 2023, and April 21, 2023, and as declared as effective by the SEC on April 21, 2023. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions between the Company and the Bank have been eliminated. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.	Basis of Presentation The accompanying consolidated financial statements include Burke & Herbert Financial Services Corp. and its wholly owned subsidiary Burke & Herbert Bank & Trust Company and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting and with applicable quarterly reporting regulations of the U.S. Securities and Exchange Commission (“SEC”). The accounting and reporting policies of the Company conform to GAAP and reflect practices of the banking industry. They do not include all of the information and notes required by GAAP for complete financial statements. As such, these unaudited financial statements should be read in conjunction with the consolidated financial statements and notes thereto as of and for the year ending December 31, 2022, included in the Company’s Registration Statement on Form 10 filed with the SEC on February 28, 2023, as amended on April 4, 2023, April 20, 2023, and April 21, 2023, and as declared as effective by the SEC on April 21, 2023. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions between the Company and the Bank have been eliminated. In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Adoption of new accounting standards	Adoption of new accounting standards Derivatives and Hedging On March 28, 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method . The purpose of this updated guidance is to further align risk management objectives with hedge accounting results on the application of the last-of-layer method, which was first introduced in ASU 2017-02, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2022-01 is effective for public business entities for fiscal years beginning after December 15, 2022. ASU 2022-01 requires a modified retrospective transition method for basis adjustments in which the entity will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company adopted this ASU on January 1, 2023, on a prospective basis; therefore, there was no impact to the consolidated financial statements. Allowance for Credit Losses On January 1, 2023, the Company adopted ASU 2016-13 : Measurement of Credit Losses on Financial Instruments ( “ASC 326” ) , as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The CECL methodology requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, as well as future forecasts including reasonable and supportable forecasts and other forecast periods. CECL generally applies to financial assets measured at amortized cost and some off-balance sheet credit exposures, such as unfunded commitments to extend credit. Financial assets measured at amortized cost are presented as the net amount expected to be collected. In addition, CECL made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell. The Company adopted ASC 326 and all related subsequent amendments thereto effective January 1, 2023, using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the new CECL standard resulted in a cumulative-effect adjustment that increased the allowance for credit losses for loans by $4.1 million and increased the allowance for unfunded commitments by $274.8 thousand. Retained earnings, net of deferred taxes, decreased by $3.4 million. Results for reporting periods beginning after January 1, 2023, are presented under ASU 2016-13, while prior period amounts continue to be reported in accordance with the incurred loss model under the previously applicable GAAP. The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities. The Company did not record an ACL for securities upon adoption. The Company elected not to measure an ACL for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on non-accrual status, which is generally when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectible interest. On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures	Adoption of new accounting standards Derivatives and Hedging On March 28, 2022, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method . The purpose of this updated guidance is to further align risk management objectives with hedge accounting results on the application of the last-of-layer method, which was first introduced in ASU 2017-02, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. ASU 2022-01 is effective for public business entities for fiscal years beginning after December 15, 2022. ASU 2022-01 requires a modified retrospective transition method for basis adjustments in which the entity will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the statement of financial position as of the date of adoption. The Company adopted this ASU on January 1, 2023; therefore, there was no impact to the consolidated financial statements. Allowance for Credit Losses On January 1, 2023, the Company adopted ASU 2016-13 : Measurement of Credit Losses on Financial Instruments (“ASC 326”), as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The CECL methodology requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, as well as future forecasts including reasonable and supportable forecasts and other forecast periods. CECL generally applies to financial assets measured at amortized cost and some off-balance sheet credit exposures, such as unfunded commitments to extend credit. Financial assets measured at amortized cost are presented as the net amount expected to be collected. In addition, CECL made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell. The Company adopted ASC 326 and all related subsequent amendments thereto effective January 1, 2023, using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The adoption of the new CECL standard resulted in a cumulative-effect adjustment that increased the allowance for credit losses for loans by $4.1 million and increased the allowance for unfunded commitments by $274.8 thousand. Retained earnings, net of deferred taxes, decreased by $3.4 million. Results for reporting periods beginning after January 1, 2023, are presented under ASU 2016-13, while prior period amounts continue to be reported in accordance with the incurred loss model under the previously applicable GAAP. The Company adopted ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to January 1, 2023. As of December 31, 2022, the Company did not have any other-than-temporarily impaired investment securities. The Company did not record an ACL for securities upon adoption. The Company elected not to measure an ACL for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on non-accrual status, which generally occurs when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectible interest. On January 1, 2023, the Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures	Recent Accounting Pronouncements The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13: Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments to replace the incurred loss model for loans and other financial assets with an expected credit loss (“CECL”) model. The CECL model is applicable to the measurement of credit losses on financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in certain leases recognized by a lessor. In addition, the amendments in Topic 326 require credit losses on available-for-sale to be presented as a valuation allowance rather than as a direct write-down (e.g. OTTI). The FASB has issued multiple updates to ASU 2016-13 as codified in Topic 326, including ASUs 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. The Company as an EGC filer that is taking advantage of the extended transition period, we plan to adopt the standard for fiscal years, and interim periods within those years, beginning after December 15, 2022. Absent this extended transition period, SEC filers were required to adopt this standard for fiscal years beginning after December 15, 2019. As part of the Company’s implementation efforts, we have engaged a third-party vendor, reconciled historical loan, charge-off and recovery data and determined segmentation of the loan portfolio for application of the current expected credit losses calculation. The Company has also designed calculation methodologies under the new guidance and have engaged an external vendor to perform model validation. The Company is currently designing appropriate controls and management review prior to the adoption of the standard. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition. Upon transition: • the Company does not expect an impact to its debt securities based on not having any debt security classified as held-to-maturity and having no OTTI on our existing portfolio of debt securities. • for all other assets within the scope of CECL, a cumulative-effect adjustment will be recognized in retained earnings as of the beginning of the first reporting period in which the guidance is effective. Subsequently, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses - (Topic 326) - Troubled Debt Restructurings and Vintage Disclosures, which eliminates the recognition and measurement guidance for TDRs by creditors in ASC 310-40. This Update also enhances disclosure requirements for certain loan restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for a TDRs, an entity will apply the loan refinancing and restructuring guidance to determine whether a modification or other form of restructuring results in a new loan or a continuation of an existing loan. The effective date for the amendments in this Update are the same as the effective dates in Update 2016-13. This Update requires prospective transition for the disclosures related to loan restructurings for borrowers experiencing financial difficulty and the presentation of gross write-offs in the vintage disclosures. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition. In March 2020, the FASB issued ASU No. 2020-04: Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. Subsequently, in January 2021, the FASB issued ASU No. 2021-01: Reference Rate Reform (Topic 848): Scope. This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply ASU No. 2021-01 on contract modifications that change the interest rate used for margining, discounting, or contract price alignment retrospectively as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications from any date within the interim period that includes or is subsequent to January 7, 2021, up to the date that financial statements are available to be issued. The Company does not believe this will have material impacts on its financial statements. An entity may elect to apply ASU No. 2021-01 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020, and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. The Company has limited exposure to the number of loans tied to LIBOR and these loans are in process of being modif ied through modifications to the relevant legal agreements. For any new loans, the Company is using an alternative rate as an index. ASU 2020-01 will not have material impact on the Company.
Allowance for credit losses and Accrued Interest Receivable	Allowance for credit losses - available-for-sale debt securities Management evaluates all available-for-sale (“AFS”) debt securities in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. The Company first assesses whether it intends to sell or if it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists, and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as credit loss expense (or recapture). Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. At March 31, 2023, there was no ACL related to the AFS security portfolio. Refer to Note 2 - Securities in Notes to the Consolidated Financial Statements. Allowance for credit losses - loans The ACL represents an amount, which, in management’s judgment, reflects expected credit losses in the loan portfolio at the balance sheet date. The estimate for expected credit losses is based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions, and prepayment experience as related to credit contractual term information. The ACL is measured and recorded upon the initial recognition of a financial asset. The ACL is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision for (or recapture of) credit losses, which is recorded in the Consolidated Statements of Income. The ACL for expected credit losses is determined based on a quantitative assessment of two categories of loans: collectively evaluated loans and individually evaluated loans. In addition, the ACL also includes a qualitative component which adjusts the CECL model for risk factors that are not considered within the CECL model, but are relevant in assessing the expected credit losses within the loan portfolio. The Company is using a remaining useful life or weighted average remaining maturity (“WARM”) methodology to estimate its current expected credit losses. For purposes of calculating reserves in collectively evaluated loans, ACL calculation segments the Company’s loan portfolio using federal call codes to group loans which share similar risk characteristics. In order to generate reasonable and supportable forecasts of loss rates over a two-year period, the ACL calculation utilizes macroeconomic variable loss drivers, which may include aggregate macroeconomic indicators pertaining to such items as equity market conditions or interest rates, as well as other variables that are portfolio-specific, such as those that pertain to the commercial real estate or residential loan portfolios. A straight-line reversion technique is used for the following four quarters, and in following quarters, the ACL calculation reverts to historical average loss rates. Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond information used to calculate reasonable and supportable, reversion and post-reversion period forecasts on collectively evaluated loans. As the reasonable and supportable and reversion period forecasts reflect the use of the macroeconomic variable loss drivers, management may consider that an additional or reduced reserve is warranted through qualitative risk factors based on current and expected conditions, including those that utilize supplemental information relative to the macroeconomic variable loss drivers. Many of these qualitative risk factors considered by management are comparable to legacy factors prior to the adoption of CECL and include the following: • Nature and volume of loans; • Concentrations of credit; • Delinquency trends; • Experience, ability, and depth of management and lending staff; and • Quality of loan review system. Loans that do not share similar risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans collectively evaluated. A specific reserve analysis is applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the expected future cash flows. A specific reserve may be assigned if the measured value of the loan using one of the before mentioned methods is less than the current carrying value of the loan. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient to measure the ACL based on the fair value of the collateral. A loan is considered collateral-dependent when the Company determines foreclosure is probable or the borrower is experiencing financial difficulty and the Company expects repayment to be provided substantially through the operation or sale of the collateral. Collateral could be in the form of real estate, equipment, or business assets. An ACL may result for a collateral-dependent loan if the fair value of the underlying collateral, as of the reporting date, adjusted for expected costs to repair or sell, was less than the amortized cost basis of the loan. If repayment of the loan is instead dependent only on the operation, rather than the sale of the collateral, the measure of the ACL does not incorporate estimated costs to sell. For loans analyzed on the basis of projected future principal and interest cash flows, the Company will discount the expected cash flows at the effective interest rate of the loan, and an ACL would result if the present value of the expected cash flows was less than the amortized cost basis of the loan. When the discounted cash flow method is used to determine the ACL, management does not adjust the effective interest rate used to discount cash flows to incorporate expected prepayments. Allowance for credit losses on off-balance sheet credit exposures On a quarterly basis, the Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on off-balance sheet credit exposures is adjusted through the provision for credit losses on the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life by loan segment at each balance sheet date under the CECL model using the same methodology as the loan portfolio. The ACL for unfunded commitments is included in accrued interest and other liabilities on the Company’s Consolidated Balance Sheets. Accrued Interest Receivable	Allowance for credit losses - available-for-sale debt securities Management evaluates all available-for-sale (“AFS”) debt securities in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. The Company first assesses whether it intends to sell or if it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists, and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as credit loss expense (or recapture). Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. At June 30, 2023, there was no ACL related to the AFS security portfolio. Refer to Note 2 - Securities in Notes to the Consolidated Financial Statements. Allowance for credit losses - loans The ACL represents an amount, which, in management’s judgment, reflects expected credit losses in the loan portfolio at the balance sheet date. The estimate for expected credit losses is based on the evaluation of the size and current risk characteristics of the loan portfolio, past events, current conditions, reasonable and supportable forecasts of future economic conditions, and prepayment experience as related to credit contractual term information. The ACL is measured and recorded upon the initial recognition of a financial asset. The ACL is reduced by charge-offs, net of recoveries of previous losses, and is increased or decreased by a provision for (or recapture of) credit losses, which is recorded in the Consolidated Statements of Income. The ACL for expected credit losses is determined based on a quantitative assessment of two categories of loans: collectively evaluated loans and individually evaluated loans. In addition, the ACL also includes a qualitative component which adjusts the CECL model for risk factors that are not considered within the CECL model, but are relevant in assessing the expected credit losses within the loan portfolio. The Company is using a remaining useful life or weighted average remaining maturity (“WARM”) methodology to estimate its current expected credit losses. For purposes of calculating reserves in collectively evaluated loans, the ACL calculation segments the Company’s loan portfolio using federal call codes to group loans which share similar risk characteristics. In order to generate reasonable and supportable forecasts of loss rates over a two-year period, the ACL calculation utilizes macroeconomic variable loss drivers, which may include aggregate macroeconomic indicators pertaining to such items as equity market conditions or interest rates, as well as other variables that are portfolio-specific, such as those that pertain to the commercial real estate or residential loan portfolios. A straight-line reversion technique is used for the following four quarters, and in following quarters, the ACL calculation reverts to historical average loss rates. Based on management’s analysis, adjustments may be applied for additional factors impacting the risk of loss in the loan portfolio beyond information used to calculate reasonable and supportable, reversion and post-reversion period forecasts on collectively evaluated loans. As the reasonable and supportable and reversion period forecasts reflect the use of the macroeconomic variable loss drivers, management may consider that an additional or reduced reserve is warranted through qualitative risk factors based on current and expected conditions, including those that utilize supplemental information relative to the macroeconomic variable loss drivers. Many of these qualitative risk factors considered by management are comparable to legacy factors prior to the adoption of CECL and include the following: • Nature and volume of loans; • Concentrations of credit; • Delinquency trends; • Experience, ability, and depth of management and lending staff; and • Quality of loan review system. Loans that do not share similar risk characteristics are evaluated on an individual basis and are excluded from the collective evaluation for the ACL. Loans identified to be individually evaluated under CECL include loans on non-accrual status and may include accruing loans that do not share similar risk characteristics to other accruing loans collectively evaluated. A specific reserve analysis is applied to the individually evaluated loans, which considers collateral value, an observable market price, or the present value of the expected future cash flows. A specific reserve may be assigned if the measured value of the loan using one of the before mentioned methods is less than the current carrying value of the loan. Under CECL, for collateral-dependent loans, the Company has adopted the practical expedient to measure the ACL based on the fair value of the collateral. A loan is considered collateral-dependent when the Company determines foreclosure is probable or the borrower is experiencing financial difficulty and the Company expects repayment to be provided substantially through the operation or sale of the collateral. Collateral could be in the form of real estate, equipment, or business assets. An ACL may result for a collateral-dependent loan if the fair value of the underlying collateral, as of the reporting date, adjusted for expected costs to repair or sell, was less than the amortized cost basis of the loan. If repayment of the loan is instead dependent only on the operation, rather than the sale of the collateral, the measure of the ACL does not incorporate estimated costs to sell. For loans analyzed on the basis of projected future principal and interest cash flows, the Company will discount the expected cash flows at the effective interest rate of the loan, and an ACL would result if the present value of the expected cash flows was less than the amortized cost basis of the loan. When the discounted cash flow method is used to determine the ACL, management does not adjust the effective interest rate used to discount cash flows to incorporate expected prepayments. Allowance for credit losses on off-balance sheet credit exposures On a quarterly basis, the Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The ACL on off-balance sheet credit exposures is adjusted through the provision for credit losses on the Consolidated Statements of Income. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life by loan segment at each balance sheet date under the CECL model using the same methodology as the loan portfolio. The ACL for unfunded commitments is included in accrued interest and other liabilities on the Company’s Consolidated Balance Sheets. Accrued Interest Receivable
Fair Value Measurements	Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held-for-sale, at fair value The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. Individually evaluated loans Upon the adoption of CECL, loans individually evaluated for credit expected losses included non-accrual loans and other loans that do not share similar risk characteristics to loans in the CECL loan pools and have been classified as Level 3. Individually evaluated loans with an allocation to the ACL are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income. Prior to adoption of CECL and ASU 2022-02, which eliminated the TDR accounting model, loans were designated as impaired when, in the judgment of management and based on current information and events, it was probable that all amounts due, according to the contractual terms of the loan agreement, would not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan, the present value of the expected future cash flows, or the fair value of the collateral. Generally, the fair value of impaired loans will be determined by the present value of the expected future cash flows or if collateral-dependent based on recent real estate appraisals. For collateral-dependent, the fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets, including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals, which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings.	Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held-for-sale, at fair value The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. Individually evaluated loans Upon the adoption of CECL, loans individually evaluated for credit expected losses included non-accrual loans and other loans that do not share similar risk characteristics to loans in the CECL loan pools and have been classified as Level 3. Individually evaluated loans with an allocation to the ACL are measured at fair value on a non-recurring basis. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income. Prior to adoption of CECL and ASU 2022-02, which eliminated the TDR accounting model, loans were designated as impaired when, in the judgment of management and based on current information and events, it was probable that all amounts due, according to the contractual terms of the loan agreement, would not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan, the present value of the expected future cash flows, or the fair value of the collateral. Generally, the fair value of impaired loans will be determined by the present value of the expected future cash flows or if collateral-dependent based on recent real estate appraisals. For collateral-dependent, the fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets, including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches, including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for credit losses on the Consolidated Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals, which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings.	Investment securities The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing Matrix pricing is a mathematical technique commonly used to price debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Derivatives The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2). The Company has contracted with a third-party vendor to provide valuations for interest rate swaps using standard swap valuation techniques. The Company has considered counterparty credit risk in the valuation of its interest rate swap assets and has considered its own credit risk in the valuation of its interest rate swap liabilities. The Company recognizes interest rate lock commitments at fair value. Fair value of interest rate lock commitments is based on the price of underlying loans obtained from an investor for loans that will be delivered on a best effort basis (Level 2). Loans held for sale, at fair value The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan (Level 2). These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. Impaired loans Loans are designated as impaired, when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected when due. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Generally, the fair value of impaired loans with specific allocations of the allowance for loan losses is based on recent real estate appraisals. Fair value is measured based on the value of the collateral securing the loans, less estimated costs of disposal. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Statements of Income and will result in a Level 3 fair value classification. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Other real estate owned Assets acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. Any fair value adjustments are recorded in the period incurred and expensed against current earnings.

Nature of Business Activities_7

Nature of Business Activities and Significant Accounting Policies (Tables)	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Jun. 30, 2023
Accounting Policies [Abstract]
Schedule of Impact from Adoption of CECL	The following table illustrates the impact of the adoption of CECL, and the transition away from the incurred loss method, on January 1, 2023. The impact to the allowance for credit losses (“ACL”) is presented at the loan segment level (in thousands): January 1, 2023 Reserves under Incurred Loss Model Reserves under CECL Model Impact of CECL Adoption Financial Assets: Commercial real estate $ 15,477 $ 18,163 $ 2,686 Owner-occupied commercial real estate 635 629 (6) Acquisition, construction & development 2,082 1,442 (640) Commercial & industrial 438 675 237 Single family residential (1-4 units) 2,379 4,040 1,661 Consumer non-real estate and other 28 215 187 Unallocated reserve — — — Allowance for credit losses on loans $ 21,039 $ 25,164 $ 4,125 Financial Liabilities: Allowance for credit losses on off-balance sheet credit exposure $ — $ 275 $ 275	The following table illustrates the impact of the adoption of CECL, and the transition away from the incurred loss method, on January 1, 2023. The impact to the allowance for credit losses (“ACL”) is presented at the loan segment level (in thousands): January 1, 2023 Reserves under Incurred Loss Model Reserves under CECL Model Impact of CECL Adoption Financial Assets: Commercial real estate $ 15,477 $ 18,163 $ 2,686 Owner-occupied commercial real estate 635 629 (6) Acquisition, construction & development 2,082 1,442 (640) Commercial & industrial 438 675 237 Single family residential (1-4 units) 2,379 4,040 1,661 Consumer non-real estate and other 28 215 187 Unallocated reserve — — — Allowance for credit losses on loans $ 21,039 $ 25,164 $ 4,125 Financial Liabilities: Allowance for credit losses on off-balance sheet credit exposure $ — $ 275 $ 275

Nature of Business Activities_8

Nature of Business Activities and Significant Accounting Policies (Tables)	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Jun. 30, 2023
Accounting Policies [Abstract]
Schedule of Impact from Adoption of CECL	The following table illustrates the impact of the adoption of CECL, and the transition away from the incurred loss method, on January 1, 2023. The impact to the allowance for credit losses (“ACL”) is presented at the loan segment level (in thousands): January 1, 2023 Reserves under Incurred Loss Model Reserves under CECL Model Impact of CECL Adoption Financial Assets: Commercial real estate $ 15,477 $ 18,163 $ 2,686 Owner-occupied commercial real estate 635 629 (6) Acquisition, construction & development 2,082 1,442 (640) Commercial & industrial 438 675 237 Single family residential (1-4 units) 2,379 4,040 1,661 Consumer non-real estate and other 28 215 187 Unallocated reserve — — — Allowance for credit losses on loans $ 21,039 $ 25,164 $ 4,125 Financial Liabilities: Allowance for credit losses on off-balance sheet credit exposure $ — $ 275 $ 275	The following table illustrates the impact of the adoption of CECL, and the transition away from the incurred loss method, on January 1, 2023. The impact to the allowance for credit losses (“ACL”) is presented at the loan segment level (in thousands): January 1, 2023 Reserves under Incurred Loss Model Reserves under CECL Model Impact of CECL Adoption Financial Assets: Commercial real estate $ 15,477 $ 18,163 $ 2,686 Owner-occupied commercial real estate 635 629 (6) Acquisition, construction & development 2,082 1,442 (640) Commercial & industrial 438 675 237 Single family residential (1-4 units) 2,379 4,040 1,661 Consumer non-real estate and other 28 215 187 Unallocated reserve — — — Allowance for credit losses on loans $ 21,039 $ 25,164 $ 4,125 Financial Liabilities: Allowance for credit losses on off-balance sheet credit exposure $ — $ 275 $ 275

Securities (Tables)

Securities (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Debt Securities, Available-for-Sale	The carrying amount of AFS securities and their approximate fair values at March 31, 2023, and December 31, 2022, are summarized as follows (in thousands): March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 197,875 $ — $ 19,456 $ 178,419 Obligations of states and municipalities 547,896 44 79,578 468,362 Residential mortgage backed - agency 56,991 20 4,341 52,670 Residential mortgage backed - non-agency 349,123 12 27,985 321,150 Commercial mortgage backed - agency 59,409 58 1,635 57,832 Commercial mortgage backed - non-agency 190,542 97 7,414 183,225 Asset-backed 95,317 101 2,819 92,599 Other 9,500 — 972 8,528 $ 1,506,653 $ 332 $ 144,200 $ 1,362,785 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed - agency 57,883 14 4,836 53,061 Residential mortgage backed - non-agency 365,983 2 26,690 339,295 Commercial mortgage backed - agency 61,810 75 1,952 59,933 Commercial mortgage backed - non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 March 31, 2023 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 59,546 $ 138,329 $ — $ 197,875 Obligations of states and municipalities 370 10,947 332,562 204,017 547,896 Residential mortgage backed - agency 42 33,446 23,503 — 56,991 Residential mortgage backed - non-agency 32,336 209,368 92,763 14,656 349,123 Commercial mortgage backed - agency 233 52,796 6,380 — 59,409 Commercial mortgage backed - non-agency 32,882 152,507 5,153 — 190,542 Asset-backed 2,296 51,621 41,400 — 95,317 Other — — 9,500 — 9,500 $ 68,159 $ 570,231 $ 649,590 $ 218,673 $ 1,506,653 March 31, 2023 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 55,500 $ 122,919 $ — $ 178,419 Obligations of states and municipalities 370 10,204 296,965 160,823 468,362 Residential mortgage backed - agency 42 32,561 20,067 — 52,670 Residential mortgage backed - non-agency 31,027 198,301 78,487 13,335 321,150 Commercial mortgage backed - agency 232 51,524 6,076 — 57,832 Commercial mortgage backed - non-agency 32,283 146,728 4,214 — 183,225 Asset-backed 2,238 49,966 40,395 — 92,599 Other — 8,528 — 8,528 $ 66,192 $ 544,784 $ 577,651 $ 174,158 $ 1,362,785	The carrying amount of AFS securities and their approximate fair values at June 30, 2023, and December 31, 2022, are summarized as follows (in thousands): June 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 197,592 $ — $ 22,195 $ 175,397 Obligations of states and municipalities 538,194 28 82,360 455,862 Residential mortgage backed - agency 47,340 — 5,350 41,990 Residential mortgage backed - non-agency 323,519 13 27,428 296,104 Commercial mortgage backed - agency 37,558 25 1,497 36,086 Commercial mortgage backed - non-agency 172,286 — 7,979 164,307 Asset-backed 76,611 3 2,135 74,479 Other 9,500 — 1,535 7,965 $ 1,402,600 $ 69 $ 150,479 $ 1,252,190 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed - agency 57,883 14 4,836 53,061 Residential mortgage backed - non-agency 365,983 2 26,690 339,295 Commercial mortgage backed - agency 61,810 75 1,952 59,933 Commercial mortgage backed - non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 maturities may differ from contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties). June 30, 2023 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ 29,711 $ 40,637 $ 127,244 $ — $ 197,592 Obligations of states and municipalities 370 12,935 317,052 207,837 538,194 Residential mortgage backed - agency 42 23,836 23,462 — 47,340 Residential mortgage backed - non-agency 58,019 160,253 95,481 9,766 323,519 Commercial mortgage backed - agency 196 31,090 6,272 — 37,558 Commercial mortgage backed - non-agency 8,562 158,575 5,149 — 172,286 Asset-backed 8,765 36,411 31,435 — 76,611 Other — — 9,500 — 9,500 $ 105,665 $ 463,737 $ 615,595 $ 217,603 $ 1,402,600 June 30, 2023 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,835 $ 35,757 $ 110,805 $ — $ 175,397 Obligations of states and municipalities 370 11,884 279,357 164,251 455,862 Residential mortgage backed - agency 42 22,857 19,091 — 41,990 Residential mortgage backed - non-agency 55,532 150,656 80,996 8,920 296,104 Commercial mortgage backed - agency 196 29,955 5,935 — 36,086 Commercial mortgage backed - non-agency 8,367 151,823 4,117 — 164,307 Asset-backed 8,661 35,210 30,608 — 74,479 Other — 7,965 — 7,965 $ 102,003 $ 438,142 $ 538,874 $ 173,171 $ 1,252,190	The carrying amount of securities and their approximate fair values at December 31, 2022 and 2021, are summarized as follows (in thousands): December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed — agency 57,883 14 4,836 53,061 Residential mortgage backed — non-agency 365,983 2 26,690 339,295 Commercial mortgage backed — agency 61,810 75 1,952 59,933 Commercial mortgage backed — non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 185,085 $ 98 $ 742 $ 184,441 Obligations of states and municipalities 651,000 20,285 5,718 665,567 Residential mortgage backed — agency 63,568 372 1,153 62,787 Residential mortgage backed — non-agency 245,794 863 2,349 244,308 Commercial mortgage backed — agency 78,830 411 358 78,883 Commercial mortgage backed — non-agency 170,048 2,492 336 172,204 Asset-backed 192,930 3,127 532 195,525 Other 2,000 — 34 1,966 $ 1,589,255 $ 27,648 $ 11,222 $ 1,605,681 Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties). December 31, 2022 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 39,854 $ 158,300 $ — $ 198,154 Obligations of states and municipalities 5,235 1,563 277,320 266,472 550,590 Residential mortgage backed - agency 42 34,100 23,741 — 57,883 Residential mortgage backed - non-agency 28,203 265,190 68,172 4,418 365,983 Commercial mortgage backed - agency 415 56,622 4,773 — 61,810 Commercial mortgage backed - non-agency 32,979 153,572 5,158 — 191,709 Asset-backed 3,255 33,495 65,041 — 101,791 Other — — 9,500 — 9,500 $ 70,129 $ 584,396 $ 612,005 $ 270,890 $ 1,537,420 December 31, 2022 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 37,439 $ 137,554 $ — $ 174,993 Obligations of states and municipalities 5,246 1,529 240,753 206,379 453,907 Residential mortgage backed - agency 42 33,128 19,891 — 53,061 Residential mortgage backed - non-agency 27,182 247,662 60,448 4,003 339,295 Commercial mortgage backed - agency 414 54,960 4,559 — 59,933 Commercial mortgage backed - non-agency 32,400 146,812 4,087 — 183,299 Asset-backed 3,165 32,592 62,869 — 98,626 Other — — 8,643 — 8,643 $ 68,449 $ 554,122 $ 538,804 $ 210,382 $ 1,371,757
Schedule of Realized Gain (Loss)	The gross realized gains, realized losses, and proceeds from the sales of securities for the three months ended March 31, 2023, and March 31, 2022, were as follows (in thousands): March 31, 2023 March 31, 2022 Gross realized gains $ — $ 727 Gross realized losses — (623) Proceeds from sales of securities — 87,033	The gross realized gains, realized losses, and proceeds from the sales of securities for the six months ended June 30, 2023, and June 30, 2022, were as follows (in thousands): June 30, 2023 June 30, 2022 Gross realized gains $ 773 $ 727 Gross realized losses (884) (623) Proceeds from sales of securities 77,780 87,033	The gross realized gains, realized losses, and proceeds from the sales of securities for the years ended December 31, 2022, 2021 and 2020 were as follows (in thousands): 2022 2021 2020 Gross realized gains $ 1,512 $ — $ 1,957 Gross realized losses (1,966) (4) (13) Proceeds from sales of securities 195,907 700 49,233
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value	AFS securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): March 31, 2023 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ — $ 178,419 $ 19,456 $ 19,456 Obligations of states and municipalities 17,774 330 444,269 79,248 79,578 Residential mortgage backed - agency 616 10 42,382 4,331 4,341 Residential mortgage backed - non-agency 109,454 7,318 210,963 20,667 27,985 Commercial mortgage backed - agency 1,688 124 54,441 1,511 1,635 Commercial mortgage backed - non-agency 10,970 136 160,432 7,278 7,414 Asset-backed 21,586 187 61,972 2,632 2,819 Other 6,775 725 1,753 247 972 $ 168,863 $ 8,830 $ 1,154,631 $ 135,370 $ 144,200 December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825	AFS securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): June 30, 2023 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ — $ 175,397 $ 22,195 $ 22,195 Obligations of states and municipalities 11,245 291 440,754 82,069 82,360 Residential mortgage backed - agency 602 15 41,387 5,335 5,350 Residential mortgage backed - non-agency 43,562 4,315 251,852 23,113 27,428 Commercial mortgage backed - agency 1,663 145 33,625 1,352 1,497 Commercial mortgage backed - non-agency — — 164,307 7,979 7,979 Asset-backed 10,411 47 60,100 2,088 2,135 Other 6,291 1,209 1,673 326 1,535 $ 73,774 $ 6,022 $ 1,169,095 $ 144,457 $ 150,479 December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825	Available-for-sale securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825 December 31, 2021 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 134,379 $ 392 $ 10,082 $ 350 $ 742 Obligations of states and municipalities 218,099 4,938 14,521 780 5,718 Residential mortgage backed - agency 48,167 1,153 — — 1,153 Residential mortgage backed - non-agency 149,640 1,624 31,024 725 2,349 Commercial mortgage backed - agency 33,703 274 6,456 84 358 Commercial mortgage backed - non-agency 36,307 321 4,137 15 336 Asset-backed 50,005 402 17,372 130 532 Other 1,966 34 — — 34 $ 672,266 $ 9,138 $ 83,592 $ 2,084 $ 11,222

Securities (Tables)_2

Securities (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Debt Securities, Available-for-Sale	The carrying amount of AFS securities and their approximate fair values at March 31, 2023, and December 31, 2022, are summarized as follows (in thousands): March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 197,875 $ — $ 19,456 $ 178,419 Obligations of states and municipalities 547,896 44 79,578 468,362 Residential mortgage backed - agency 56,991 20 4,341 52,670 Residential mortgage backed - non-agency 349,123 12 27,985 321,150 Commercial mortgage backed - agency 59,409 58 1,635 57,832 Commercial mortgage backed - non-agency 190,542 97 7,414 183,225 Asset-backed 95,317 101 2,819 92,599 Other 9,500 — 972 8,528 $ 1,506,653 $ 332 $ 144,200 $ 1,362,785 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed - agency 57,883 14 4,836 53,061 Residential mortgage backed - non-agency 365,983 2 26,690 339,295 Commercial mortgage backed - agency 61,810 75 1,952 59,933 Commercial mortgage backed - non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 March 31, 2023 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 59,546 $ 138,329 $ — $ 197,875 Obligations of states and municipalities 370 10,947 332,562 204,017 547,896 Residential mortgage backed - agency 42 33,446 23,503 — 56,991 Residential mortgage backed - non-agency 32,336 209,368 92,763 14,656 349,123 Commercial mortgage backed - agency 233 52,796 6,380 — 59,409 Commercial mortgage backed - non-agency 32,882 152,507 5,153 — 190,542 Asset-backed 2,296 51,621 41,400 — 95,317 Other — — 9,500 — 9,500 $ 68,159 $ 570,231 $ 649,590 $ 218,673 $ 1,506,653 March 31, 2023 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 55,500 $ 122,919 $ — $ 178,419 Obligations of states and municipalities 370 10,204 296,965 160,823 468,362 Residential mortgage backed - agency 42 32,561 20,067 — 52,670 Residential mortgage backed - non-agency 31,027 198,301 78,487 13,335 321,150 Commercial mortgage backed - agency 232 51,524 6,076 — 57,832 Commercial mortgage backed - non-agency 32,283 146,728 4,214 — 183,225 Asset-backed 2,238 49,966 40,395 — 92,599 Other — 8,528 — 8,528 $ 66,192 $ 544,784 $ 577,651 $ 174,158 $ 1,362,785	The carrying amount of AFS securities and their approximate fair values at June 30, 2023, and December 31, 2022, are summarized as follows (in thousands): June 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 197,592 $ — $ 22,195 $ 175,397 Obligations of states and municipalities 538,194 28 82,360 455,862 Residential mortgage backed - agency 47,340 — 5,350 41,990 Residential mortgage backed - non-agency 323,519 13 27,428 296,104 Commercial mortgage backed - agency 37,558 25 1,497 36,086 Commercial mortgage backed - non-agency 172,286 — 7,979 164,307 Asset-backed 76,611 3 2,135 74,479 Other 9,500 — 1,535 7,965 $ 1,402,600 $ 69 $ 150,479 $ 1,252,190 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed - agency 57,883 14 4,836 53,061 Residential mortgage backed - non-agency 365,983 2 26,690 339,295 Commercial mortgage backed - agency 61,810 75 1,952 59,933 Commercial mortgage backed - non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 maturities may differ from contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties). June 30, 2023 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ 29,711 $ 40,637 $ 127,244 $ — $ 197,592 Obligations of states and municipalities 370 12,935 317,052 207,837 538,194 Residential mortgage backed - agency 42 23,836 23,462 — 47,340 Residential mortgage backed - non-agency 58,019 160,253 95,481 9,766 323,519 Commercial mortgage backed - agency 196 31,090 6,272 — 37,558 Commercial mortgage backed - non-agency 8,562 158,575 5,149 — 172,286 Asset-backed 8,765 36,411 31,435 — 76,611 Other — — 9,500 — 9,500 $ 105,665 $ 463,737 $ 615,595 $ 217,603 $ 1,402,600 June 30, 2023 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,835 $ 35,757 $ 110,805 $ — $ 175,397 Obligations of states and municipalities 370 11,884 279,357 164,251 455,862 Residential mortgage backed - agency 42 22,857 19,091 — 41,990 Residential mortgage backed - non-agency 55,532 150,656 80,996 8,920 296,104 Commercial mortgage backed - agency 196 29,955 5,935 — 36,086 Commercial mortgage backed - non-agency 8,367 151,823 4,117 — 164,307 Asset-backed 8,661 35,210 30,608 — 74,479 Other — 7,965 — 7,965 $ 102,003 $ 438,142 $ 538,874 $ 173,171 $ 1,252,190	The carrying amount of securities and their approximate fair values at December 31, 2022 and 2021, are summarized as follows (in thousands): December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed — agency 57,883 14 4,836 53,061 Residential mortgage backed — non-agency 365,983 2 26,690 339,295 Commercial mortgage backed — agency 61,810 75 1,952 59,933 Commercial mortgage backed — non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 185,085 $ 98 $ 742 $ 184,441 Obligations of states and municipalities 651,000 20,285 5,718 665,567 Residential mortgage backed — agency 63,568 372 1,153 62,787 Residential mortgage backed — non-agency 245,794 863 2,349 244,308 Commercial mortgage backed — agency 78,830 411 358 78,883 Commercial mortgage backed — non-agency 170,048 2,492 336 172,204 Asset-backed 192,930 3,127 532 195,525 Other 2,000 — 34 1,966 $ 1,589,255 $ 27,648 $ 11,222 $ 1,605,681 Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties). December 31, 2022 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 39,854 $ 158,300 $ — $ 198,154 Obligations of states and municipalities 5,235 1,563 277,320 266,472 550,590 Residential mortgage backed - agency 42 34,100 23,741 — 57,883 Residential mortgage backed - non-agency 28,203 265,190 68,172 4,418 365,983 Commercial mortgage backed - agency 415 56,622 4,773 — 61,810 Commercial mortgage backed - non-agency 32,979 153,572 5,158 — 191,709 Asset-backed 3,255 33,495 65,041 — 101,791 Other — — 9,500 — 9,500 $ 70,129 $ 584,396 $ 612,005 $ 270,890 $ 1,537,420 December 31, 2022 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 37,439 $ 137,554 $ — $ 174,993 Obligations of states and municipalities 5,246 1,529 240,753 206,379 453,907 Residential mortgage backed - agency 42 33,128 19,891 — 53,061 Residential mortgage backed - non-agency 27,182 247,662 60,448 4,003 339,295 Commercial mortgage backed - agency 414 54,960 4,559 — 59,933 Commercial mortgage backed - non-agency 32,400 146,812 4,087 — 183,299 Asset-backed 3,165 32,592 62,869 — 98,626 Other — — 8,643 — 8,643 $ 68,449 $ 554,122 $ 538,804 $ 210,382 $ 1,371,757
Schedule of Realized Gain (Loss)	The gross realized gains, realized losses, and proceeds from the sales of securities for the three months ended March 31, 2023, and March 31, 2022, were as follows (in thousands): March 31, 2023 March 31, 2022 Gross realized gains $ — $ 727 Gross realized losses — (623) Proceeds from sales of securities — 87,033	The gross realized gains, realized losses, and proceeds from the sales of securities for the six months ended June 30, 2023, and June 30, 2022, were as follows (in thousands): June 30, 2023 June 30, 2022 Gross realized gains $ 773 $ 727 Gross realized losses (884) (623) Proceeds from sales of securities 77,780 87,033	The gross realized gains, realized losses, and proceeds from the sales of securities for the years ended December 31, 2022, 2021 and 2020 were as follows (in thousands): 2022 2021 2020 Gross realized gains $ 1,512 $ — $ 1,957 Gross realized losses (1,966) (4) (13) Proceeds from sales of securities 195,907 700 49,233
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value	AFS securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): March 31, 2023 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ — $ 178,419 $ 19,456 $ 19,456 Obligations of states and municipalities 17,774 330 444,269 79,248 79,578 Residential mortgage backed - agency 616 10 42,382 4,331 4,341 Residential mortgage backed - non-agency 109,454 7,318 210,963 20,667 27,985 Commercial mortgage backed - agency 1,688 124 54,441 1,511 1,635 Commercial mortgage backed - non-agency 10,970 136 160,432 7,278 7,414 Asset-backed 21,586 187 61,972 2,632 2,819 Other 6,775 725 1,753 247 972 $ 168,863 $ 8,830 $ 1,154,631 $ 135,370 $ 144,200 December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825	AFS securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): June 30, 2023 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ — $ 175,397 $ 22,195 $ 22,195 Obligations of states and municipalities 11,245 291 440,754 82,069 82,360 Residential mortgage backed - agency 602 15 41,387 5,335 5,350 Residential mortgage backed - non-agency 43,562 4,315 251,852 23,113 27,428 Commercial mortgage backed - agency 1,663 145 33,625 1,352 1,497 Commercial mortgage backed - non-agency — — 164,307 7,979 7,979 Asset-backed 10,411 47 60,100 2,088 2,135 Other 6,291 1,209 1,673 326 1,535 $ 73,774 $ 6,022 $ 1,169,095 $ 144,457 $ 150,479 December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825	Available-for-sale securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825 December 31, 2021 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 134,379 $ 392 $ 10,082 $ 350 $ 742 Obligations of states and municipalities 218,099 4,938 14,521 780 5,718 Residential mortgage backed - agency 48,167 1,153 — — 1,153 Residential mortgage backed - non-agency 149,640 1,624 31,024 725 2,349 Commercial mortgage backed - agency 33,703 274 6,456 84 358 Commercial mortgage backed - non-agency 36,307 321 4,137 15 336 Asset-backed 50,005 402 17,372 130 532 Other 1,966 34 — — 34 $ 672,266 $ 9,138 $ 83,592 $ 2,084 $ 11,222

Securities (Tables)_2_3

Securities (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Debt Securities, Available-for-Sale	The carrying amount of AFS securities and their approximate fair values at March 31, 2023, and December 31, 2022, are summarized as follows (in thousands): March 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 197,875 $ — $ 19,456 $ 178,419 Obligations of states and municipalities 547,896 44 79,578 468,362 Residential mortgage backed - agency 56,991 20 4,341 52,670 Residential mortgage backed - non-agency 349,123 12 27,985 321,150 Commercial mortgage backed - agency 59,409 58 1,635 57,832 Commercial mortgage backed - non-agency 190,542 97 7,414 183,225 Asset-backed 95,317 101 2,819 92,599 Other 9,500 — 972 8,528 $ 1,506,653 $ 332 $ 144,200 $ 1,362,785 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed - agency 57,883 14 4,836 53,061 Residential mortgage backed - non-agency 365,983 2 26,690 339,295 Commercial mortgage backed - agency 61,810 75 1,952 59,933 Commercial mortgage backed - non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 March 31, 2023 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 59,546 $ 138,329 $ — $ 197,875 Obligations of states and municipalities 370 10,947 332,562 204,017 547,896 Residential mortgage backed - agency 42 33,446 23,503 — 56,991 Residential mortgage backed - non-agency 32,336 209,368 92,763 14,656 349,123 Commercial mortgage backed - agency 233 52,796 6,380 — 59,409 Commercial mortgage backed - non-agency 32,882 152,507 5,153 — 190,542 Asset-backed 2,296 51,621 41,400 — 95,317 Other — — 9,500 — 9,500 $ 68,159 $ 570,231 $ 649,590 $ 218,673 $ 1,506,653 March 31, 2023 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 55,500 $ 122,919 $ — $ 178,419 Obligations of states and municipalities 370 10,204 296,965 160,823 468,362 Residential mortgage backed - agency 42 32,561 20,067 — 52,670 Residential mortgage backed - non-agency 31,027 198,301 78,487 13,335 321,150 Commercial mortgage backed - agency 232 51,524 6,076 — 57,832 Commercial mortgage backed - non-agency 32,283 146,728 4,214 — 183,225 Asset-backed 2,238 49,966 40,395 — 92,599 Other — 8,528 — 8,528 $ 66,192 $ 544,784 $ 577,651 $ 174,158 $ 1,362,785	The carrying amount of AFS securities and their approximate fair values at June 30, 2023, and December 31, 2022, are summarized as follows (in thousands): June 30, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 197,592 $ — $ 22,195 $ 175,397 Obligations of states and municipalities 538,194 28 82,360 455,862 Residential mortgage backed - agency 47,340 — 5,350 41,990 Residential mortgage backed - non-agency 323,519 13 27,428 296,104 Commercial mortgage backed - agency 37,558 25 1,497 36,086 Commercial mortgage backed - non-agency 172,286 — 7,979 164,307 Asset-backed 76,611 3 2,135 74,479 Other 9,500 — 1,535 7,965 $ 1,402,600 $ 69 $ 150,479 $ 1,252,190 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed - agency 57,883 14 4,836 53,061 Residential mortgage backed - non-agency 365,983 2 26,690 339,295 Commercial mortgage backed - agency 61,810 75 1,952 59,933 Commercial mortgage backed - non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 maturities may differ from contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties). June 30, 2023 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ 29,711 $ 40,637 $ 127,244 $ — $ 197,592 Obligations of states and municipalities 370 12,935 317,052 207,837 538,194 Residential mortgage backed - agency 42 23,836 23,462 — 47,340 Residential mortgage backed - non-agency 58,019 160,253 95,481 9,766 323,519 Commercial mortgage backed - agency 196 31,090 6,272 — 37,558 Commercial mortgage backed - non-agency 8,562 158,575 5,149 — 172,286 Asset-backed 8,765 36,411 31,435 — 76,611 Other — — 9,500 — 9,500 $ 105,665 $ 463,737 $ 615,595 $ 217,603 $ 1,402,600 June 30, 2023 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,835 $ 35,757 $ 110,805 $ — $ 175,397 Obligations of states and municipalities 370 11,884 279,357 164,251 455,862 Residential mortgage backed - agency 42 22,857 19,091 — 41,990 Residential mortgage backed - non-agency 55,532 150,656 80,996 8,920 296,104 Commercial mortgage backed - agency 196 29,955 5,935 — 36,086 Commercial mortgage backed - non-agency 8,367 151,823 4,117 — 164,307 Asset-backed 8,661 35,210 30,608 — 74,479 Other — 7,965 — 7,965 $ 102,003 $ 438,142 $ 538,874 $ 173,171 $ 1,252,190	The carrying amount of securities and their approximate fair values at December 31, 2022 and 2021, are summarized as follows (in thousands): December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 198,154 $ — $ 23,161 $ 174,993 Obligations of states and municipalities 550,590 12 96,695 453,907 Residential mortgage backed — agency 57,883 14 4,836 53,061 Residential mortgage backed — non-agency 365,983 2 26,690 339,295 Commercial mortgage backed — agency 61,810 75 1,952 59,933 Commercial mortgage backed — non-agency 191,709 10 8,420 183,299 Asset-backed 101,791 49 3,214 98,626 Other 9,500 — 857 8,643 $ 1,537,420 $ 162 $ 165,825 $ 1,371,757 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available-for-Sale U.S. Treasuries and government agencies $ 185,085 $ 98 $ 742 $ 184,441 Obligations of states and municipalities 651,000 20,285 5,718 665,567 Residential mortgage backed — agency 63,568 372 1,153 62,787 Residential mortgage backed — non-agency 245,794 863 2,349 244,308 Commercial mortgage backed — agency 78,830 411 358 78,883 Commercial mortgage backed — non-agency 170,048 2,492 336 172,204 Asset-backed 192,930 3,127 532 195,525 Other 2,000 — 34 1,966 $ 1,589,255 $ 27,648 $ 11,222 $ 1,605,681 Expected maturities may differ from contractual maturities because borrowers have the right to call or prepay some obligations with or without call or prepayment penalties). December 31, 2022 Amortized Cost One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 39,854 $ 158,300 $ — $ 198,154 Obligations of states and municipalities 5,235 1,563 277,320 266,472 550,590 Residential mortgage backed - agency 42 34,100 23,741 — 57,883 Residential mortgage backed - non-agency 28,203 265,190 68,172 4,418 365,983 Commercial mortgage backed - agency 415 56,622 4,773 — 61,810 Commercial mortgage backed - non-agency 32,979 153,572 5,158 — 191,709 Asset-backed 3,255 33,495 65,041 — 101,791 Other — — 9,500 — 9,500 $ 70,129 $ 584,396 $ 612,005 $ 270,890 $ 1,537,420 December 31, 2022 Fair Value One Year or Less One to Five Years Five to Ten Years After Ten Years Total Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ 37,439 $ 137,554 $ — $ 174,993 Obligations of states and municipalities 5,246 1,529 240,753 206,379 453,907 Residential mortgage backed - agency 42 33,128 19,891 — 53,061 Residential mortgage backed - non-agency 27,182 247,662 60,448 4,003 339,295 Commercial mortgage backed - agency 414 54,960 4,559 — 59,933 Commercial mortgage backed - non-agency 32,400 146,812 4,087 — 183,299 Asset-backed 3,165 32,592 62,869 — 98,626 Other — — 8,643 — 8,643 $ 68,449 $ 554,122 $ 538,804 $ 210,382 $ 1,371,757
Schedule of Realized Gain (Loss)	The gross realized gains, realized losses, and proceeds from the sales of securities for the three months ended March 31, 2023, and March 31, 2022, were as follows (in thousands): March 31, 2023 March 31, 2022 Gross realized gains $ — $ 727 Gross realized losses — (623) Proceeds from sales of securities — 87,033	The gross realized gains, realized losses, and proceeds from the sales of securities for the six months ended June 30, 2023, and June 30, 2022, were as follows (in thousands): June 30, 2023 June 30, 2022 Gross realized gains $ 773 $ 727 Gross realized losses (884) (623) Proceeds from sales of securities 77,780 87,033	The gross realized gains, realized losses, and proceeds from the sales of securities for the years ended December 31, 2022, 2021 and 2020 were as follows (in thousands): 2022 2021 2020 Gross realized gains $ 1,512 $ — $ 1,957 Gross realized losses (1,966) (4) (13) Proceeds from sales of securities 195,907 700 49,233
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value	AFS securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): March 31, 2023 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ — $ 178,419 $ 19,456 $ 19,456 Obligations of states and municipalities 17,774 330 444,269 79,248 79,578 Residential mortgage backed - agency 616 10 42,382 4,331 4,341 Residential mortgage backed - non-agency 109,454 7,318 210,963 20,667 27,985 Commercial mortgage backed - agency 1,688 124 54,441 1,511 1,635 Commercial mortgage backed - non-agency 10,970 136 160,432 7,278 7,414 Asset-backed 21,586 187 61,972 2,632 2,819 Other 6,775 725 1,753 247 972 $ 168,863 $ 8,830 $ 1,154,631 $ 135,370 $ 144,200 December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825	AFS securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): June 30, 2023 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ — $ — $ 175,397 $ 22,195 $ 22,195 Obligations of states and municipalities 11,245 291 440,754 82,069 82,360 Residential mortgage backed - agency 602 15 41,387 5,335 5,350 Residential mortgage backed - non-agency 43,562 4,315 251,852 23,113 27,428 Commercial mortgage backed - agency 1,663 145 33,625 1,352 1,497 Commercial mortgage backed - non-agency — — 164,307 7,979 7,979 Asset-backed 10,411 47 60,100 2,088 2,135 Other 6,291 1,209 1,673 326 1,535 $ 73,774 $ 6,022 $ 1,169,095 $ 144,457 $ 150,479 December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825	Available-for-sale securities in a continuous unrealized loss position for less than twelve months and more than twelve months are as follows (in thousands): December 31, 2022 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 28,399 $ 1,131 $ 146,594 $ 22,030 $ 23,161 Obligations of states and municipalities 128,373 12,378 320,287 84,317 96,695 Residential mortgage backed - agency 7,258 26 41,975 4,810 4,836 Residential mortgage backed - non-agency 204,866 11,822 134,056 14,868 26,690 Commercial mortgage backed - agency 23,026 562 34,847 1,390 1,952 Commercial mortgage backed - non-agency 144,193 6,171 23,374 2,249 8,420 Asset-backed 43,472 815 50,088 2,399 3,214 Other 6,877 623 1,766 234 857 $ 586,464 $ 33,528 $ 752,987 $ 132,297 $ 165,825 December 31, 2021 Less Than Twelve Months More Than Twelve Months Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Total Unrealized Losses Securities Available-for-Sale U.S. Treasuries and government agencies $ 134,379 $ 392 $ 10,082 $ 350 $ 742 Obligations of states and municipalities 218,099 4,938 14,521 780 5,718 Residential mortgage backed - agency 48,167 1,153 — — 1,153 Residential mortgage backed - non-agency 149,640 1,624 31,024 725 2,349 Commercial mortgage backed - agency 33,703 274 6,456 84 358 Commercial mortgage backed - non-agency 36,307 321 4,137 15 336 Asset-backed 50,005 402 17,372 130 532 Other 1,966 34 — — 34 $ 672,266 $ 9,138 $ 83,592 $ 2,084 $ 11,222

Loans (Tables)

Loans (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Receivables [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable	Loan balances at March 31, 2023, and December 31, 2022, by portfolio segment were as follows (in thousands): March 31, 2023 December 31, 2022 Commercial real estate $ 1,154,210 $ 1,109,315 Owner-occupied commercial real estate 125,657 127,114 Acquisition, construction & development 99,886 94,450 Commercial & industrial 50,101 53,514 Single family residential (1-4 units) 518,775 499,362 Consumer non-real estate and other 3,109 3,466 1,951,738 1,887,221 Allowance for credit losses (25,704) (21,039) Loans, net $ 1,926,034 $ 1,866,182	Loan balances at June 30, 2023, and December 31, 2022, by portfolio segment were as follows (in thousands): June 30, 2023 December 31, 2022 Commercial real estate $ 1,198,840 $ 1,109,315 Owner-occupied commercial real estate 124,466 127,114 Acquisition, construction & development 92,730 94,450 Commercial & industrial 59,142 53,514 Single family residential (1-4 units) 522,944 499,362 Consumer non-real estate and other 2,847 3,466 2,000,969 1,887,221 Allowance for credit losses (25,919) (21,039) Loans, net $ 1,975,050 $ 1,866,182	Loans at year-end by portfolio segment were as follows (in thousands): 2022 2021 Commercial real estate $ 1,109,315 $ 1,031,641 Owner-occupied commercial real estate 127,114 125,613 Acquisition, construction & development 94,450 109,518 Commercial & industrial 53,514 58,818 Single family residential (1-4 units) 499,362 415,594 Consumer non-real estate and other 3,466 3,889 1,887,221 1,745,073 Allowance for loan losses (21,039) (31,709) Loans, net $ 1,866,182 $ 1,713,364
Financing Receivable, Allowance for Credit Loss	The following table presents the activity in the ACL, including the impact of the adoption of CECL, for the three months ended March 31, 2023, and the activity for the allowance for loan losses for the three months ended March 31, 2022 (in thousands). Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & Industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total Three months ended March 31, 2023 Beginning balance, prior to adoption of CECL $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Impact of the adoption of CECL 2,686 (6) (640) 237 1,661 187 — 4,125 Provision for (recapture of) credit losses 218 (73) 410 25 (13) (44) — 523 Charge-offs — — — — — (17) — (17) Recoveries 28 — — — 3 3 — 34 Balance, end of period $ 18,409 $ 556 $ 1,852 $ 700 $ 4,030 $ 157 $ — $ 25,704 March 31, 2022 Balance, beginning of period $ 25,112 $ 611 $ 2,189 $ 165 $ 2,434 $ 18 $ 1,180 $ 31,709 Provision for (recapture of) loan losses (2,321) 52 127 (32) (1,030) 15 551 (2,638) Charge-offs (21) — — (20) — (28) — (69) Recoveries 3 — — — 47 9 — 59 Balance, end of period $ 22,773 $ 663 $ 2,316 $ 113 $ 1,451 $ 14 $ 1,731 $ 29,061	The following tables presents the activity in the ACL, including the impact of the adoption of CECL, for the three months and six months ended June 30, 2023, and the activity for the allowance for loan losses for the three months and six months ended June 30, 2022 (in thousands). Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & Industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total Three months ended June 30, 2023 Balance, beginning of period $ 18,409 $ 556 $ 1,852 $ 700 $ 4,030 $ 157 $ — $ 25,704 Provision for (recapture of) credit losses 227 163 (533) (59) 487 25 — 310 Charge-offs — — — (29) — (75) — (104) Recoveries 3 — — — 3 3 — 9 Balance, end of period $ 18,639 $ 719 $ 1,319 $ 612 $ 4,520 $ 110 $ — $ 25,919 June 30, 2022 Balance, beginning of period $ 22,773 $ 663 $ 2,316 $ 113 $ 1,451 $ 14 $ 1,731 $ 29,061 Provision for (recapture of) loan losses (3,968) 61 1,291 101 (49) 26 — (2,538) Charge-offs (3,261) — — — — (27) — (3,288) Recoveries 4 — — — 117 6 — 127 Balance, end of period $ 15,548 $ 724 $ 3,607 $ 214 $ 1,519 $ 19 $ 1,731 $ 23,362 Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total Six months ended June 30, 2023 Beginning balance, prior to adoption of CECL $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Impact of the adoption of CECL 2,686 (6) (640) 237 1,661 187 — 4,125 Provision for (recapture of) credit losses 445 90 (123) (34) 474 (19) — 833 Charge-offs — — — (29) — (92) — (121) Recoveries 31 — — — 6 6 — 43 Balance, end of period $ 18,639 $ 719 $ 1,319 $ 612 $ 4,520 $ 110 $ — $ 25,919 June 30, 2022 Balance, beginning of period $ 25,112 $ 611 $ 2,189 $ 165 $ 2,434 $ 18 $ 1,180 $ 31,709 Provision for (recapture of) loan losses (6,289) 113 1,418 69 (1,079) 41 551 (5,176) Charge-offs (3,282) — — (20) — (55) — (3,357) Recoveries 7 — — — 164 15 — 186 Balance, end of period $ 15,548 $ 724 $ 3,607 $ 214 $ 1,519 $ 19 $ 1,731 $ 23,362	The following table presents the activity in the allowance for loan losses by portfolio segment for each of the years ending December 31, 2022, 2021, and 2020 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Total December 31, 2022 Allowance for loan losses Beginning balance $ 25,112 $ 611 $ 3,369 $ 160 $ 2,434 $ 23 $ 31,709 Provision for (recapture of) loan losses (6,391) 24 (1,287) 298 (239) 129 (7,466) Loans charged-off (3,282) — — (20) — (148) (3,450) Recoveries 38 — — — 184 24 246 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ 21,039 December 31, 2021 Allowance for loan losses Beginning balance $ 23,356 $ 1,196 $ 4,255 $ 68 $ 3,757 $ 65 $ 32,697 Provision for (recapture of) loan losses 1,870 (602) (886) 72 (1,490) 34 (1,002) Loans charged-off (127) — — — (16) (99) (242) Recoveries 13 17 — 20 183 23 256 Total ending allowance balance $ 25,112 $ 611 $ 3,369 $ 160 $ 2,434 $ 23 $ 31,709 December 31, 2020 Allowance for loan losses Beginning balance $ 11,396 $ 2,310 $ 1,697 $ 5,952 $ 2,791 $ 55 $ 24,201 Provision for (recapture of) loan losses 11,946 (1,114) 2,558 (1,752) 945 65 12,648 Loans charged-off — — — (5,858) (44) (94) (5,996) Recoveries 14 — — 1,726 65 39 1,844 Total ending allowance balance $ 23,356 $ 1,196 $ 4,255 $ 68 $ 3,757 $ 65 $ 32,697 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 and 2021 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Total December 31, 2022 Allowance for loan losses Individually evaluated for impairment $ 41 $ 102 $ — $ — $ 96 $ — $ 239 Collectively evaluated for impairment 15,436 533 2,082 438 2,283 28 20,800 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ 21,039 Loan balance: Individually evaluated for impairment $ 331 $ 2,580 $ — $ — $ 6,158 $ — $ 9,069 Collectively evaluated for impairment 1,108,984 124,534 94,450 53,514 493,204 3,466 1,878,152 Total ending loan balance $ 1,109,315 $ 127,114 $ 94,450 $ 53,514 $ 499,362 $ 3,466 $ 1,887,221 December 31, 2021 Allowance for loan losses Individually evaluated for impairment $ 7,558 $ 14 $ — $ — $ 107 $ — $ 7,679 Collectively evaluated for impairment 17,554 597 3,369 160 2,327 23 24,030 Total ending allowance balance $ 25,112 $ 611 $ 3,369 $ 160 $ 2,434 $ 23 $ 31,709 Loan balance: Individually evaluated for impairment $ 20,110 $ 2,843 $ — $ — $ 7,831 $ — $ 30,784 Collectively evaluated for impairment 1,011,531 122,770 109,518 58,818 407,763 3,889 1,714,289 Total ending loan balance $ 1,031,641 $ 125,613 $ 109,518 $ 58,818 $ 415,594 $ 3,889 $ 1,745,073
Impaired Financing Receivables	The information presented in the table below is not required for periods after the adoption of CECL. The following table summarizes the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & Industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total December 31, 2022 Allowance for loan losses Individually evaluated for impairment $ 41 $ 102 $ — $ — $ 96 $ — $ — $ 239 Collectively evaluated for impairment 15,436 533 2,082 438 2,283 28 — 20,800 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Loan balance: Individually evaluated for impairment $ 331 $ 2,580 $ — $ — $ 6,158 $ — $ — $ 9,069 Collectively evaluated for impairment 1,108,984 124,534 94,450 53,514 493,204 3,466 — 1,878,152 Total ending loan balance $ 1,109,315 $ 127,114 $ 94,450 $ 53,514 $ 499,362 $ 3,466 $ — $ 1,887,221 The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) December 31, 2022 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 1,184 1,394 — 1,291 97 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,151 5,576 — 5,131 213 Consumer non-real estate and other — — — — — Subtotal $ 6,335 $ 6,970 $ — $ 6,422 $ 310 With an allowance recorded: Commercial real estate $ 331 $ 331 $ 41 $ 350 $ 23 Owner-occupied commercial real estate 1,397 1,397 102 1,420 74 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 1,007 1,141 96 1,033 57 Consumer non-real estate and other — — — — — Subtotal $ 2,735 $ 2,869 $ 239 $ 2,803 $ 154 __________________ (1) Cash basis interest income recognized approximates interest income recognized shown as of the twelve months ended December 31, 2022. The following tables present information about collateral dependent loans that were individually evaluated for purposes of determining the ACL as of March 31, 2023 (in thousands): Collateral Dependent Loans With Allowance With No Related Allowance Total Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance March 31, 2023 Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate — — 1,121 1,121 — Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) — — 3,329 3,329 — Consumer non-real estate and other — — — — — Total $ — $ — $ 4,450 $ 4,450 $ —	The information presented in the table below is not required for periods after the adoption of CECL. The following table summarizes the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total December 31, 2022 Allowance for loan losses Individually evaluated for impairment $ 41 $ 102 $ — $ — $ 96 $ — $ — $ 239 Collectively evaluated for impairment 15,436 533 2,082 438 2,283 28 — 20,800 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Loan balance: Individually evaluated for impairment $ 331 $ 2,580 $ — $ — $ 6,158 $ — $ — $ 9,069 Collectively evaluated for impairment 1,108,984 124,534 94,450 53,514 493,204 3,466 — 1,878,152 Total ending loan balance $ 1,109,315 $ 127,114 $ 94,450 $ 53,514 $ 499,362 $ 3,466 $ — $ 1,887,221 The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) December 31, 2022 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 1,184 1,394 — 1,291 97 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,151 5,576 — 5,131 213 Consumer non-real estate and other — — — — — Subtotal $ 6,335 $ 6,970 $ — $ 6,422 $ 310 With an allowance recorded: Commercial real estate $ 331 $ 331 $ 41 $ 350 $ 23 Owner-occupied commercial real estate 1,397 1,397 102 1,420 74 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 1,007 1,141 96 1,033 57 Consumer non-real estate and other — — — — — Subtotal $ 2,735 $ 2,869 $ 239 $ 2,803 $ 154 __________________ (1) Cash basis interest income recognized approximates interest income recognized shown as of the twelve months ended December 31, 2022. The following tables present information about collateral-dependent loans that were individually evaluated for purposes of determining the ACL as of June 30, 2023 (in thousands): Collateral-Dependent Loans With Allowance With No Related Allowance Total Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance June 30, 2023 Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate — — 1,066 1,066 — Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) — — 2,670 2,670 — Consumer non-real estate and other — — — — — Total $ — $ — $ 3,736 $ 3,736 $ —	The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022 and 2021: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) December 31, 2022 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 1,184 1,394 — 1,291 97 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,151 5,576 — 5,131 213 Consumer non-real estate and other — — — — — Subtotal $ 6,335 $ 6,970 $ — $ 6,422 $ 310 With an allowance recorded: Commercial real estate $ 331 $ 331 $ 41 $ 350 $ 23 Owner-occupied commercial real estate 1,397 1,397 102 1,420 74 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 1,007 1,141 96 1,033 57 Consumer non-real estate and other — — — — — Subtotal $ 2,735 $ 2,869 $ 239 $ 2,803 $ 154 December 31, 2021 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 2,327 2,460 — 2,437 129 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,673 6,230 — 5,848 245 Consumer non-real estate and other — — — — — Subtotal $ 8,000 $ 8,690 $ — $ 8,285 $ 374 With an allowance recorded: Commercial real estate $ 20,110 $ 20,236 $ 7,558 $ 20,130 $ 30 Owner-occupied commercial real estate 516 516 14 530 32 Acquisition, construction & development — — — — — Commercial & industrial — — — — Single family residential (1-4 units) 2,159 2,285 107 2,203 122 Consumer non-real estate and other — — — — — Subtotal $ 22,785 $ 23,037 $ 7,679 $ 22,863 $ 184 __________________ (1) Cash basis interest income recognized approximates interest income recognized as of December 31, 2022 and 2021.
Financing Receivable, Past Due	The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents the aging of the recorded investment in past due loans as of March 31, 2023, and December 31, 2022, by portfolio segment (in thousands): March 31, 2023 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ 2,075 $ — $ 2,075 $ 1,152,135 $ 1,154,210 $ — $ — Owner-occupied commercial real estate — — — — 125,657 125,657 — 1,121 Acquisition, construction & development — — — — 99,886 99,886 — — Commercial & industrial — 31 — 31 50,070 50,101 — — Single family residential (1-4 units) 1,515 — 328 1,843 516,932 518,775 — 2,125 Consumer non-real estate and other — — — — 3,109 3,109 — — Total $ 1,515 $ 2,106 $ 328 $ 3,949 $ 1,947,789 $ 1,951,738 $ — $ 3,246 December 31, 2022 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,109,315 $ 1,109,315 $ — $ — Owner-occupied commercial real estate — — — — 127,114 127,114 — 1,184 Acquisition, construction & development — — — — 94,450 94,450 — — Commercial & industrial — — — — 53,514 53,514 — — Single family residential (1-4 units) 1,403 154 546 2,103 497,259 499,362 — 4,313 Consumer non-real estate and other — 4 — 4 3,462 3,466 — — Total $ 1,403 $ 158 $ 546 $ 2,107 $ 1,885,114 $ 1,887,221 $ — $ 5,497	The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents the aging of the recorded investment in past due loans as of June 30, 2023, and December 31, 2022, by portfolio segment (in thousands): June 30, 2023 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,198,840 $ 1,198,840 $ — $ — Owner-occupied commercial real estate 873 — 673 1,546 122,920 124,466 — 1,066 Acquisition, construction & development — — — — 92,730 92,730 — — Commercial & industrial — — — — 59,142 59,142 — — Single family residential (1-4 units) 146 — 61 207 522,737 522,944 — 1,857 Consumer non-real estate and other 42 — — 42 2,805 2,847 — — Total $ 1,061 $ — $ 734 $ 1,795 $ 1,999,174 $ 2,000,969 $ — $ 2,923 December 31, 2022 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,109,315 $ 1,109,315 $ — $ — Owner-occupied commercial real estate — — — — 127,114 127,114 — 1,184 Acquisition, construction & development — — — — 94,450 94,450 — — Commercial & industrial — — — — 53,514 53,514 — — Single family residential (1-4 units) 1,403 154 546 2,103 497,259 499,362 — 4,313 Consumer non-real estate and other — 4 — 4 3,462 3,466 — — Total $ 1,403 $ 158 $ 546 $ 2,107 $ 1,885,114 $ 1,887,221 $ — $ 5,497	The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents the aging of the recorded investment in past due loans as of December 31, 2022 and 2021 by portfolio segment: Aging and Nonaccrual Loans (in thousands): December 31, 2022 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,109,315 $ 1,109,315 $ — $ — Owner-occupied commercial real estate — — — — 127,114 127,114 — 1,184 Acquisition, construction & development — — — — 94,450 94,450 — — Commercial & industrial — — — — 53,514 53,514 — — Single family residential (1-4 units) 1,403 154 546 2,103 497,259 499,362 — 4,313 Consumer non-real estate and other — 4 — 4 3,462 3,466 — — Total $ 1,403 $ 158 $ 546 $ 2,107 $ 1,885,114 $ 1,887,221 $ — $ 5,497 December 31, 2021 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ 19,531 $ 19,531 $ 1,012,110 $ 1,031,641 $ — $ 19,594 Owner-occupied commercial real estate 121 — 820 941 124,672 125,613 — 1,399 Acquisition, construction & development — — — — 109,518 109,518 — — Commercial & industrial 21 — — 21 58,797 58,818 — — Single family residential (1-4 units) 365 — 649 1,014 414,580 415,594 — 5,268 Consumer non-real estate and other — — — — 3,889 3,889 — — Total $ 507 $ — $ 21,000 $ 21,507 $ 1,723,566 $ 1,745,073 $ — $ 26,261
Financing Receivable Credit Quality Indicators	The following table presents the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of March 31, 2023 (in thousands): Term Loans 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate Pass $ 51,800 $ 282,900 $ 214,098 $ 15,998 $ 76,014 $ 403,273 $ 4,309 $ 1,048,392 Special Mention — — — 8,433 5,302 40,929 — 54,664 Substandard — 600 2,351 — 7,569 40,634 — 51,154 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 51,800 $ 283,500 $ 216,449 $ 24,431 $ 88,885 $ 484,836 $ 4,309 $ 1,154,210 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Owner-occupied commercial real estate Pass $ 823 $ 30,039 $ 9,857 $ 15,463 $ 13,686 $ 49,753 $ 2,385 $ 122,006 Special Mention — — — — — 1,947 — 1,947 Substandard — 293 — — — 1,411 — 1,704 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 823 $ 30,332 $ 9,857 $ 15,463 $ 13,686 $ 53,111 $ 2,385 $ 125,657 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Acquisition, construction & development Pass $ 1,275 $ 28,498 $ 10,995 $ — $ 9,260 $ 1,398 $ 1,360 $ 52,786 Special Mention — — — — 807 22,093 — 22,900 Substandard — — — — — 24,200 — 24,200 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 1,275 $ 28,498 $ 10,995 $ — $ 10,067 $ 47,691 $ 1,360 $ 99,886 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial & industrial Pass $ 7,877 $ 18,402 $ 8,943 $ 603 $ 55 $ 1,769 $ 12,452 $ 50,101 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 7,877 $ 18,402 $ 8,943 $ 603 $ 55 $ 1,769 $ 12,452 $ 50,101 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Single family residential (1-4 units) Pass $ 32,061 $ 129,294 $ 62,952 $ 33,281 $ 42,540 $ 154,070 $ 62,451 $ 516,649 Special Mention — — — — — — — — Substandard — — — 263 — 1,863 — 2,126 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 32,061 $ 129,294 $ 62,952 $ 33,544 $ 42,540 $ 155,933 $ 62,451 $ 518,775 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer non-real estate and other Pass $ 376 $ 310 $ 183 $ 322 $ 460 $ 423 $ 1,035 $ 3,109 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 376 $ 310 $ 183 $ 322 $ 460 $ 423 $ 1,035 $ 3,109 Current period gross charge-offs $ — $ 17 $ — $ — $ — $ — $ — $ 17 The value of outstanding loans by credit quality indicators as of December 31, 2022 were as follows (in thousands): Pass Special Mention Substandard Doubtful Loss Total December 31, 2022 Commercial real estate $ 1,011,025 $ 62,907 $ 35,383 $ — $ — $ 1,109,315 Owner-occupied commercial real estate 121,621 1,963 3,530 — — 127,114 Acquisition, construction & development 68,220 836 25,394 — — 94,450 Commercial & industrial 53,273 — 241 — — 53,514 Single family residential (1-4 units) 494,994 55 4,313 — — 499,362 Consumer non-real estate and other 3,466 — — — — 3,466 Total $ 1,752,599 $ 65,761 $ 68,861 $ — $ — $ 1,887,221	The following table presents the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of June 30, 2023 (in thousands): Term Loans 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate Pass $ 109,677 $ 268,807 $ 170,100 $ 15,736 $ 75,506 $ 422,563 $ 4,975 $ 1,067,364 Special Mention — 15,000 44,873 8,398 1,266 2,306 — 71,843 Substandard — 600 2,351 — 7,516 49,166 — 59,633 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 109,677 $ 284,407 $ 217,324 $ 24,134 $ 84,288 $ 474,035 $ 4,975 $ 1,198,840 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Owner-occupied commercial real estate Pass $ 2,569 $ 29,761 $ 9,622 $ 15,225 $ 13,021 $ 44,538 $ 4,535 $ 119,271 Special Mention — — — — — — — — Substandard — 539 — — — 4,656 — 5,195 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 2,569 $ 30,300 $ 9,622 $ 15,225 $ 13,021 $ 49,194 $ 4,535 $ 124,466 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Acquisition, construction & development Pass $ 2,941 $ 26,843 $ 14,504 $ — $ — $ 23,960 $ 1,610 $ 69,858 Special Mention — — — — 779 — — 779 Substandard — — — — — 22,093 — 22,093 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 2,941 $ 26,843 $ 14,504 $ — $ 779 $ 46,053 $ 1,610 $ 92,730 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial & industrial Pass $ 19,732 $ 17,575 $ 8,041 $ 523 $ 41 $ 1,595 $ 11,635 $ 59,142 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 19,732 $ 17,575 $ 8,041 $ 523 $ 41 $ 1,595 $ 11,635 $ 59,142 Year to date gross charge-offs $ — $ — $ — $ 29 $ — $ — $ — $ 29 Single family residential (1-4 units) Pass $ 55,068 $ 130,556 $ 61,981 $ 32,645 $ 41,566 $ 148,187 $ 51,084 $ 521,087 Special Mention — — Substandard — — 291 252 — 1,314 — 1,857 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 55,068 $ 130,556 $ 62,272 $ 32,897 $ 41,566 $ 149,501 $ 51,084 $ 522,944 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer non-real estate and other Pass $ 227 $ 270 $ 161 $ 248 $ 435 $ 397 $ 1,109 $ 2,847 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 227 $ 270 $ 161 $ 248 $ 435 $ 397 $ 1,109 $ 2,847 Year to date gross charge-offs $ 92 $ — $ — $ — $ — $ — $ — $ 92 The value of outstanding loans by credit quality indicators as of December 31, 2022 were as follows (in thousands): Pass Special Mention Substandard Doubtful Loss Total December 31, 2022 Commercial real estate $ 1,011,025 $ 62,907 $ 35,383 $ — $ — $ 1,109,315 Owner-occupied commercial real estate 121,621 1,963 3,530 — — 127,114 Acquisition, construction & development 68,220 836 25,394 — — 94,450 Commercial & industrial 53,273 — 241 — — 53,514 Single family residential (1-4 units) 494,994 55 4,313 — — 499,362 Consumer non-real estate and other 3,466 — — — — 3,466 Total $ 1,752,599 $ 65,761 $ 68,861 $ — $ — $ 1,887,221	Loans by credit quality indicators as of December 31, 2022 and 2021 were as follows (in thousands): Pass Special Mention Substandard Doubtful Loss Total December 31, 2022 Commercial real estate $ 1,011,025 $ 62,907 $ 35,383 $ — $ — $ 1,109,315 Owner-occupied commercial real estate 121,621 1,963 3,530 — — 127,114 Acquisition, construction & development 68,220 836 25,394 — — 94,450 Commercial & industrial 53,273 — 241 — — 53,514 Single family residential (1-4 units) 494,994 55 4,313 — — 499,362 Consumer non-real estate and other 3,466 — — — — 3,466 Total $ 1,752,599 $ 65,761 $ 68,861 $ — $ — $ 1,887,221 Pass Special Mention Substandard Doubtful Loss Total December 31, 2021 Commercial real estate $ 868,787 $ 75,397 $ 87,457 $ — $ — $ 1,031,641 Owner-occupied commercial real estate 122,065 2,149 1,399 — — 125,613 Acquisition, construction & development 72,895 36,623 — — — 109,518 Commercial & industrial 58,763 55 — — — 58,818 Single family residential (1-4 units) 410,227 99 5,268 — — 415,594 Consumer non-real estate and other 3,889 — — — — 3,889 Total $ 1,536,626 $ 114,323 $ 94,124 $ — $ — $ 1,745,073

Loans (Tables)_2

Loans (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Receivables [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable	Loan balances at March 31, 2023, and December 31, 2022, by portfolio segment were as follows (in thousands): March 31, 2023 December 31, 2022 Commercial real estate $ 1,154,210 $ 1,109,315 Owner-occupied commercial real estate 125,657 127,114 Acquisition, construction & development 99,886 94,450 Commercial & industrial 50,101 53,514 Single family residential (1-4 units) 518,775 499,362 Consumer non-real estate and other 3,109 3,466 1,951,738 1,887,221 Allowance for credit losses (25,704) (21,039) Loans, net $ 1,926,034 $ 1,866,182	Loan balances at June 30, 2023, and December 31, 2022, by portfolio segment were as follows (in thousands): June 30, 2023 December 31, 2022 Commercial real estate $ 1,198,840 $ 1,109,315 Owner-occupied commercial real estate 124,466 127,114 Acquisition, construction & development 92,730 94,450 Commercial & industrial 59,142 53,514 Single family residential (1-4 units) 522,944 499,362 Consumer non-real estate and other 2,847 3,466 2,000,969 1,887,221 Allowance for credit losses (25,919) (21,039) Loans, net $ 1,975,050 $ 1,866,182	Loans at year-end by portfolio segment were as follows (in thousands): 2022 2021 Commercial real estate $ 1,109,315 $ 1,031,641 Owner-occupied commercial real estate 127,114 125,613 Acquisition, construction & development 94,450 109,518 Commercial & industrial 53,514 58,818 Single family residential (1-4 units) 499,362 415,594 Consumer non-real estate and other 3,466 3,889 1,887,221 1,745,073 Allowance for loan losses (21,039) (31,709) Loans, net $ 1,866,182 $ 1,713,364

Loans (Tables)_2_3

Loans (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Receivables [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable	Loan balances at March 31, 2023, and December 31, 2022, by portfolio segment were as follows (in thousands): March 31, 2023 December 31, 2022 Commercial real estate $ 1,154,210 $ 1,109,315 Owner-occupied commercial real estate 125,657 127,114 Acquisition, construction & development 99,886 94,450 Commercial & industrial 50,101 53,514 Single family residential (1-4 units) 518,775 499,362 Consumer non-real estate and other 3,109 3,466 1,951,738 1,887,221 Allowance for credit losses (25,704) (21,039) Loans, net $ 1,926,034 $ 1,866,182	Loan balances at June 30, 2023, and December 31, 2022, by portfolio segment were as follows (in thousands): June 30, 2023 December 31, 2022 Commercial real estate $ 1,198,840 $ 1,109,315 Owner-occupied commercial real estate 124,466 127,114 Acquisition, construction & development 92,730 94,450 Commercial & industrial 59,142 53,514 Single family residential (1-4 units) 522,944 499,362 Consumer non-real estate and other 2,847 3,466 2,000,969 1,887,221 Allowance for credit losses (25,919) (21,039) Loans, net $ 1,975,050 $ 1,866,182	Loans at year-end by portfolio segment were as follows (in thousands): 2022 2021 Commercial real estate $ 1,109,315 $ 1,031,641 Owner-occupied commercial real estate 127,114 125,613 Acquisition, construction & development 94,450 109,518 Commercial & industrial 53,514 58,818 Single family residential (1-4 units) 499,362 415,594 Consumer non-real estate and other 3,466 3,889 1,887,221 1,745,073 Allowance for loan losses (21,039) (31,709) Loans, net $ 1,866,182 $ 1,713,364

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of Premises and Equipment	Premises and equipment are included in the Balance Sheet at December 31, 2022 and 2021 were as follows (in thousands): 2022 2021 Cost: Land $ 14,626 $ 12,791 Premises 56,999 44,109 Furniture and equipment 18,705 23,792 90,330 80,692 Less: Accumulated depreciation (37,160) (43,817) $ 53,170 $ 36,875

Allowance for Credit Losses (Ta

Allowance for Credit Losses (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Credit Loss [Abstract]
Financing Receivable, Allowance for Credit Loss	The following table presents the activity in the ACL, including the impact of the adoption of CECL, for the three months ended March 31, 2023, and the activity for the allowance for loan losses for the three months ended March 31, 2022 (in thousands). Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & Industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total Three months ended March 31, 2023 Beginning balance, prior to adoption of CECL $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Impact of the adoption of CECL 2,686 (6) (640) 237 1,661 187 — 4,125 Provision for (recapture of) credit losses 218 (73) 410 25 (13) (44) — 523 Charge-offs — — — — — (17) — (17) Recoveries 28 — — — 3 3 — 34 Balance, end of period $ 18,409 $ 556 $ 1,852 $ 700 $ 4,030 $ 157 $ — $ 25,704 March 31, 2022 Balance, beginning of period $ 25,112 $ 611 $ 2,189 $ 165 $ 2,434 $ 18 $ 1,180 $ 31,709 Provision for (recapture of) loan losses (2,321) 52 127 (32) (1,030) 15 551 (2,638) Charge-offs (21) — — (20) — (28) — (69) Recoveries 3 — — — 47 9 — 59 Balance, end of period $ 22,773 $ 663 $ 2,316 $ 113 $ 1,451 $ 14 $ 1,731 $ 29,061	The following tables presents the activity in the ACL, including the impact of the adoption of CECL, for the three months and six months ended June 30, 2023, and the activity for the allowance for loan losses for the three months and six months ended June 30, 2022 (in thousands). Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & Industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total Three months ended June 30, 2023 Balance, beginning of period $ 18,409 $ 556 $ 1,852 $ 700 $ 4,030 $ 157 $ — $ 25,704 Provision for (recapture of) credit losses 227 163 (533) (59) 487 25 — 310 Charge-offs — — — (29) — (75) — (104) Recoveries 3 — — — 3 3 — 9 Balance, end of period $ 18,639 $ 719 $ 1,319 $ 612 $ 4,520 $ 110 $ — $ 25,919 June 30, 2022 Balance, beginning of period $ 22,773 $ 663 $ 2,316 $ 113 $ 1,451 $ 14 $ 1,731 $ 29,061 Provision for (recapture of) loan losses (3,968) 61 1,291 101 (49) 26 — (2,538) Charge-offs (3,261) — — — — (27) — (3,288) Recoveries 4 — — — 117 6 — 127 Balance, end of period $ 15,548 $ 724 $ 3,607 $ 214 $ 1,519 $ 19 $ 1,731 $ 23,362 Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total Six months ended June 30, 2023 Beginning balance, prior to adoption of CECL $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Impact of the adoption of CECL 2,686 (6) (640) 237 1,661 187 — 4,125 Provision for (recapture of) credit losses 445 90 (123) (34) 474 (19) — 833 Charge-offs — — — (29) — (92) — (121) Recoveries 31 — — — 6 6 — 43 Balance, end of period $ 18,639 $ 719 $ 1,319 $ 612 $ 4,520 $ 110 $ — $ 25,919 June 30, 2022 Balance, beginning of period $ 25,112 $ 611 $ 2,189 $ 165 $ 2,434 $ 18 $ 1,180 $ 31,709 Provision for (recapture of) loan losses (6,289) 113 1,418 69 (1,079) 41 551 (5,176) Charge-offs (3,282) — — (20) — (55) — (3,357) Recoveries 7 — — — 164 15 — 186 Balance, end of period $ 15,548 $ 724 $ 3,607 $ 214 $ 1,519 $ 19 $ 1,731 $ 23,362	The following table presents the activity in the allowance for loan losses by portfolio segment for each of the years ending December 31, 2022, 2021, and 2020 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Total December 31, 2022 Allowance for loan losses Beginning balance $ 25,112 $ 611 $ 3,369 $ 160 $ 2,434 $ 23 $ 31,709 Provision for (recapture of) loan losses (6,391) 24 (1,287) 298 (239) 129 (7,466) Loans charged-off (3,282) — — (20) — (148) (3,450) Recoveries 38 — — — 184 24 246 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ 21,039 December 31, 2021 Allowance for loan losses Beginning balance $ 23,356 $ 1,196 $ 4,255 $ 68 $ 3,757 $ 65 $ 32,697 Provision for (recapture of) loan losses 1,870 (602) (886) 72 (1,490) 34 (1,002) Loans charged-off (127) — — — (16) (99) (242) Recoveries 13 17 — 20 183 23 256 Total ending allowance balance $ 25,112 $ 611 $ 3,369 $ 160 $ 2,434 $ 23 $ 31,709 December 31, 2020 Allowance for loan losses Beginning balance $ 11,396 $ 2,310 $ 1,697 $ 5,952 $ 2,791 $ 55 $ 24,201 Provision for (recapture of) loan losses 11,946 (1,114) 2,558 (1,752) 945 65 12,648 Loans charged-off — — — (5,858) (44) (94) (5,996) Recoveries 14 — — 1,726 65 39 1,844 Total ending allowance balance $ 23,356 $ 1,196 $ 4,255 $ 68 $ 3,757 $ 65 $ 32,697 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 and 2021 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Total December 31, 2022 Allowance for loan losses Individually evaluated for impairment $ 41 $ 102 $ — $ — $ 96 $ — $ 239 Collectively evaluated for impairment 15,436 533 2,082 438 2,283 28 20,800 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ 21,039 Loan balance: Individually evaluated for impairment $ 331 $ 2,580 $ — $ — $ 6,158 $ — $ 9,069 Collectively evaluated for impairment 1,108,984 124,534 94,450 53,514 493,204 3,466 1,878,152 Total ending loan balance $ 1,109,315 $ 127,114 $ 94,450 $ 53,514 $ 499,362 $ 3,466 $ 1,887,221 December 31, 2021 Allowance for loan losses Individually evaluated for impairment $ 7,558 $ 14 $ — $ — $ 107 $ — $ 7,679 Collectively evaluated for impairment 17,554 597 3,369 160 2,327 23 24,030 Total ending allowance balance $ 25,112 $ 611 $ 3,369 $ 160 $ 2,434 $ 23 $ 31,709 Loan balance: Individually evaluated for impairment $ 20,110 $ 2,843 $ — $ — $ 7,831 $ — $ 30,784 Collectively evaluated for impairment 1,011,531 122,770 109,518 58,818 407,763 3,889 1,714,289 Total ending loan balance $ 1,031,641 $ 125,613 $ 109,518 $ 58,818 $ 415,594 $ 3,889 $ 1,745,073
Impaired Financing Receivables	The information presented in the table below is not required for periods after the adoption of CECL. The following table summarizes the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & Industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total December 31, 2022 Allowance for loan losses Individually evaluated for impairment $ 41 $ 102 $ — $ — $ 96 $ — $ — $ 239 Collectively evaluated for impairment 15,436 533 2,082 438 2,283 28 — 20,800 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Loan balance: Individually evaluated for impairment $ 331 $ 2,580 $ — $ — $ 6,158 $ — $ — $ 9,069 Collectively evaluated for impairment 1,108,984 124,534 94,450 53,514 493,204 3,466 — 1,878,152 Total ending loan balance $ 1,109,315 $ 127,114 $ 94,450 $ 53,514 $ 499,362 $ 3,466 $ — $ 1,887,221 The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) December 31, 2022 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 1,184 1,394 — 1,291 97 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,151 5,576 — 5,131 213 Consumer non-real estate and other — — — — — Subtotal $ 6,335 $ 6,970 $ — $ 6,422 $ 310 With an allowance recorded: Commercial real estate $ 331 $ 331 $ 41 $ 350 $ 23 Owner-occupied commercial real estate 1,397 1,397 102 1,420 74 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 1,007 1,141 96 1,033 57 Consumer non-real estate and other — — — — — Subtotal $ 2,735 $ 2,869 $ 239 $ 2,803 $ 154 __________________ (1) Cash basis interest income recognized approximates interest income recognized shown as of the twelve months ended December 31, 2022. The following tables present information about collateral dependent loans that were individually evaluated for purposes of determining the ACL as of March 31, 2023 (in thousands): Collateral Dependent Loans With Allowance With No Related Allowance Total Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance March 31, 2023 Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate — — 1,121 1,121 — Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) — — 3,329 3,329 — Consumer non-real estate and other — — — — — Total $ — $ — $ 4,450 $ 4,450 $ —	The information presented in the table below is not required for periods after the adoption of CECL. The following table summarizes the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total December 31, 2022 Allowance for loan losses Individually evaluated for impairment $ 41 $ 102 $ — $ — $ 96 $ — $ — $ 239 Collectively evaluated for impairment 15,436 533 2,082 438 2,283 28 — 20,800 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Loan balance: Individually evaluated for impairment $ 331 $ 2,580 $ — $ — $ 6,158 $ — $ — $ 9,069 Collectively evaluated for impairment 1,108,984 124,534 94,450 53,514 493,204 3,466 — 1,878,152 Total ending loan balance $ 1,109,315 $ 127,114 $ 94,450 $ 53,514 $ 499,362 $ 3,466 $ — $ 1,887,221 The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) December 31, 2022 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 1,184 1,394 — 1,291 97 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,151 5,576 — 5,131 213 Consumer non-real estate and other — — — — — Subtotal $ 6,335 $ 6,970 $ — $ 6,422 $ 310 With an allowance recorded: Commercial real estate $ 331 $ 331 $ 41 $ 350 $ 23 Owner-occupied commercial real estate 1,397 1,397 102 1,420 74 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 1,007 1,141 96 1,033 57 Consumer non-real estate and other — — — — — Subtotal $ 2,735 $ 2,869 $ 239 $ 2,803 $ 154 __________________ (1) Cash basis interest income recognized approximates interest income recognized shown as of the twelve months ended December 31, 2022. The following tables present information about collateral-dependent loans that were individually evaluated for purposes of determining the ACL as of June 30, 2023 (in thousands): Collateral-Dependent Loans With Allowance With No Related Allowance Total Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance June 30, 2023 Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate — — 1,066 1,066 — Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) — — 2,670 2,670 — Consumer non-real estate and other — — — — — Total $ — $ — $ 3,736 $ 3,736 $ —	The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022 and 2021: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) December 31, 2022 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 1,184 1,394 — 1,291 97 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,151 5,576 — 5,131 213 Consumer non-real estate and other — — — — — Subtotal $ 6,335 $ 6,970 $ — $ 6,422 $ 310 With an allowance recorded: Commercial real estate $ 331 $ 331 $ 41 $ 350 $ 23 Owner-occupied commercial real estate 1,397 1,397 102 1,420 74 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 1,007 1,141 96 1,033 57 Consumer non-real estate and other — — — — — Subtotal $ 2,735 $ 2,869 $ 239 $ 2,803 $ 154 December 31, 2021 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 2,327 2,460 — 2,437 129 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,673 6,230 — 5,848 245 Consumer non-real estate and other — — — — — Subtotal $ 8,000 $ 8,690 $ — $ 8,285 $ 374 With an allowance recorded: Commercial real estate $ 20,110 $ 20,236 $ 7,558 $ 20,130 $ 30 Owner-occupied commercial real estate 516 516 14 530 32 Acquisition, construction & development — — — — — Commercial & industrial — — — — Single family residential (1-4 units) 2,159 2,285 107 2,203 122 Consumer non-real estate and other — — — — — Subtotal $ 22,785 $ 23,037 $ 7,679 $ 22,863 $ 184 __________________ (1) Cash basis interest income recognized approximates interest income recognized as of December 31, 2022 and 2021.
Financing Receivable, Past Due	The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents the aging of the recorded investment in past due loans as of March 31, 2023, and December 31, 2022, by portfolio segment (in thousands): March 31, 2023 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ 2,075 $ — $ 2,075 $ 1,152,135 $ 1,154,210 $ — $ — Owner-occupied commercial real estate — — — — 125,657 125,657 — 1,121 Acquisition, construction & development — — — — 99,886 99,886 — — Commercial & industrial — 31 — 31 50,070 50,101 — — Single family residential (1-4 units) 1,515 — 328 1,843 516,932 518,775 — 2,125 Consumer non-real estate and other — — — — 3,109 3,109 — — Total $ 1,515 $ 2,106 $ 328 $ 3,949 $ 1,947,789 $ 1,951,738 $ — $ 3,246 December 31, 2022 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,109,315 $ 1,109,315 $ — $ — Owner-occupied commercial real estate — — — — 127,114 127,114 — 1,184 Acquisition, construction & development — — — — 94,450 94,450 — — Commercial & industrial — — — — 53,514 53,514 — — Single family residential (1-4 units) 1,403 154 546 2,103 497,259 499,362 — 4,313 Consumer non-real estate and other — 4 — 4 3,462 3,466 — — Total $ 1,403 $ 158 $ 546 $ 2,107 $ 1,885,114 $ 1,887,221 $ — $ 5,497	The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents the aging of the recorded investment in past due loans as of June 30, 2023, and December 31, 2022, by portfolio segment (in thousands): June 30, 2023 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,198,840 $ 1,198,840 $ — $ — Owner-occupied commercial real estate 873 — 673 1,546 122,920 124,466 — 1,066 Acquisition, construction & development — — — — 92,730 92,730 — — Commercial & industrial — — — — 59,142 59,142 — — Single family residential (1-4 units) 146 — 61 207 522,737 522,944 — 1,857 Consumer non-real estate and other 42 — — 42 2,805 2,847 — — Total $ 1,061 $ — $ 734 $ 1,795 $ 1,999,174 $ 2,000,969 $ — $ 2,923 December 31, 2022 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,109,315 $ 1,109,315 $ — $ — Owner-occupied commercial real estate — — — — 127,114 127,114 — 1,184 Acquisition, construction & development — — — — 94,450 94,450 — — Commercial & industrial — — — — 53,514 53,514 — — Single family residential (1-4 units) 1,403 154 546 2,103 497,259 499,362 — 4,313 Consumer non-real estate and other — 4 — 4 3,462 3,466 — — Total $ 1,403 $ 158 $ 546 $ 2,107 $ 1,885,114 $ 1,887,221 $ — $ 5,497	The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents the aging of the recorded investment in past due loans as of December 31, 2022 and 2021 by portfolio segment: Aging and Nonaccrual Loans (in thousands): December 31, 2022 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,109,315 $ 1,109,315 $ — $ — Owner-occupied commercial real estate — — — — 127,114 127,114 — 1,184 Acquisition, construction & development — — — — 94,450 94,450 — — Commercial & industrial — — — — 53,514 53,514 — — Single family residential (1-4 units) 1,403 154 546 2,103 497,259 499,362 — 4,313 Consumer non-real estate and other — 4 — 4 3,462 3,466 — — Total $ 1,403 $ 158 $ 546 $ 2,107 $ 1,885,114 $ 1,887,221 $ — $ 5,497 December 31, 2021 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ 19,531 $ 19,531 $ 1,012,110 $ 1,031,641 $ — $ 19,594 Owner-occupied commercial real estate 121 — 820 941 124,672 125,613 — 1,399 Acquisition, construction & development — — — — 109,518 109,518 — — Commercial & industrial 21 — — 21 58,797 58,818 — — Single family residential (1-4 units) 365 — 649 1,014 414,580 415,594 — 5,268 Consumer non-real estate and other — — — — 3,889 3,889 — — Total $ 507 $ — $ 21,000 $ 21,507 $ 1,723,566 $ 1,745,073 $ — $ 26,261
Financing Receivable Credit Quality Indicators	The following table presents the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of March 31, 2023 (in thousands): Term Loans 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate Pass $ 51,800 $ 282,900 $ 214,098 $ 15,998 $ 76,014 $ 403,273 $ 4,309 $ 1,048,392 Special Mention — — — 8,433 5,302 40,929 — 54,664 Substandard — 600 2,351 — 7,569 40,634 — 51,154 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 51,800 $ 283,500 $ 216,449 $ 24,431 $ 88,885 $ 484,836 $ 4,309 $ 1,154,210 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Owner-occupied commercial real estate Pass $ 823 $ 30,039 $ 9,857 $ 15,463 $ 13,686 $ 49,753 $ 2,385 $ 122,006 Special Mention — — — — — 1,947 — 1,947 Substandard — 293 — — — 1,411 — 1,704 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 823 $ 30,332 $ 9,857 $ 15,463 $ 13,686 $ 53,111 $ 2,385 $ 125,657 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Acquisition, construction & development Pass $ 1,275 $ 28,498 $ 10,995 $ — $ 9,260 $ 1,398 $ 1,360 $ 52,786 Special Mention — — — — 807 22,093 — 22,900 Substandard — — — — — 24,200 — 24,200 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 1,275 $ 28,498 $ 10,995 $ — $ 10,067 $ 47,691 $ 1,360 $ 99,886 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial & industrial Pass $ 7,877 $ 18,402 $ 8,943 $ 603 $ 55 $ 1,769 $ 12,452 $ 50,101 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 7,877 $ 18,402 $ 8,943 $ 603 $ 55 $ 1,769 $ 12,452 $ 50,101 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Single family residential (1-4 units) Pass $ 32,061 $ 129,294 $ 62,952 $ 33,281 $ 42,540 $ 154,070 $ 62,451 $ 516,649 Special Mention — — — — — — — — Substandard — — — 263 — 1,863 — 2,126 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 32,061 $ 129,294 $ 62,952 $ 33,544 $ 42,540 $ 155,933 $ 62,451 $ 518,775 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer non-real estate and other Pass $ 376 $ 310 $ 183 $ 322 $ 460 $ 423 $ 1,035 $ 3,109 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 376 $ 310 $ 183 $ 322 $ 460 $ 423 $ 1,035 $ 3,109 Current period gross charge-offs $ — $ 17 $ — $ — $ — $ — $ — $ 17 The value of outstanding loans by credit quality indicators as of December 31, 2022 were as follows (in thousands): Pass Special Mention Substandard Doubtful Loss Total December 31, 2022 Commercial real estate $ 1,011,025 $ 62,907 $ 35,383 $ — $ — $ 1,109,315 Owner-occupied commercial real estate 121,621 1,963 3,530 — — 127,114 Acquisition, construction & development 68,220 836 25,394 — — 94,450 Commercial & industrial 53,273 — 241 — — 53,514 Single family residential (1-4 units) 494,994 55 4,313 — — 499,362 Consumer non-real estate and other 3,466 — — — — 3,466 Total $ 1,752,599 $ 65,761 $ 68,861 $ — $ — $ 1,887,221	The following table presents the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of June 30, 2023 (in thousands): Term Loans 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate Pass $ 109,677 $ 268,807 $ 170,100 $ 15,736 $ 75,506 $ 422,563 $ 4,975 $ 1,067,364 Special Mention — 15,000 44,873 8,398 1,266 2,306 — 71,843 Substandard — 600 2,351 — 7,516 49,166 — 59,633 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 109,677 $ 284,407 $ 217,324 $ 24,134 $ 84,288 $ 474,035 $ 4,975 $ 1,198,840 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Owner-occupied commercial real estate Pass $ 2,569 $ 29,761 $ 9,622 $ 15,225 $ 13,021 $ 44,538 $ 4,535 $ 119,271 Special Mention — — — — — — — — Substandard — 539 — — — 4,656 — 5,195 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 2,569 $ 30,300 $ 9,622 $ 15,225 $ 13,021 $ 49,194 $ 4,535 $ 124,466 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Acquisition, construction & development Pass $ 2,941 $ 26,843 $ 14,504 $ — $ — $ 23,960 $ 1,610 $ 69,858 Special Mention — — — — 779 — — 779 Substandard — — — — — 22,093 — 22,093 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 2,941 $ 26,843 $ 14,504 $ — $ 779 $ 46,053 $ 1,610 $ 92,730 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial & industrial Pass $ 19,732 $ 17,575 $ 8,041 $ 523 $ 41 $ 1,595 $ 11,635 $ 59,142 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 19,732 $ 17,575 $ 8,041 $ 523 $ 41 $ 1,595 $ 11,635 $ 59,142 Year to date gross charge-offs $ — $ — $ — $ 29 $ — $ — $ — $ 29 Single family residential (1-4 units) Pass $ 55,068 $ 130,556 $ 61,981 $ 32,645 $ 41,566 $ 148,187 $ 51,084 $ 521,087 Special Mention — — Substandard — — 291 252 — 1,314 — 1,857 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 55,068 $ 130,556 $ 62,272 $ 32,897 $ 41,566 $ 149,501 $ 51,084 $ 522,944 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer non-real estate and other Pass $ 227 $ 270 $ 161 $ 248 $ 435 $ 397 $ 1,109 $ 2,847 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 227 $ 270 $ 161 $ 248 $ 435 $ 397 $ 1,109 $ 2,847 Year to date gross charge-offs $ 92 $ — $ — $ — $ — $ — $ — $ 92 The value of outstanding loans by credit quality indicators as of December 31, 2022 were as follows (in thousands): Pass Special Mention Substandard Doubtful Loss Total December 31, 2022 Commercial real estate $ 1,011,025 $ 62,907 $ 35,383 $ — $ — $ 1,109,315 Owner-occupied commercial real estate 121,621 1,963 3,530 — — 127,114 Acquisition, construction & development 68,220 836 25,394 — — 94,450 Commercial & industrial 53,273 — 241 — — 53,514 Single family residential (1-4 units) 494,994 55 4,313 — — 499,362 Consumer non-real estate and other 3,466 — — — — 3,466 Total $ 1,752,599 $ 65,761 $ 68,861 $ — $ — $ 1,887,221	Loans by credit quality indicators as of December 31, 2022 and 2021 were as follows (in thousands): Pass Special Mention Substandard Doubtful Loss Total December 31, 2022 Commercial real estate $ 1,011,025 $ 62,907 $ 35,383 $ — $ — $ 1,109,315 Owner-occupied commercial real estate 121,621 1,963 3,530 — — 127,114 Acquisition, construction & development 68,220 836 25,394 — — 94,450 Commercial & industrial 53,273 — 241 — — 53,514 Single family residential (1-4 units) 494,994 55 4,313 — — 499,362 Consumer non-real estate and other 3,466 — — — — 3,466 Total $ 1,752,599 $ 65,761 $ 68,861 $ — $ — $ 1,887,221 Pass Special Mention Substandard Doubtful Loss Total December 31, 2021 Commercial real estate $ 868,787 $ 75,397 $ 87,457 $ — $ — $ 1,031,641 Owner-occupied commercial real estate 122,065 2,149 1,399 — — 125,613 Acquisition, construction & development 72,895 36,623 — — — 109,518 Commercial & industrial 58,763 55 — — — 58,818 Single family residential (1-4 units) 410,227 99 5,268 — — 415,594 Consumer non-real estate and other 3,889 — — — — 3,889 Total $ 1,536,626 $ 114,323 $ 94,124 $ — $ — $ 1,745,073

Allowance for Credit Losses (_2

Allowance for Credit Losses (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Credit Loss [Abstract]
Financing Receivable, Allowance for Credit Loss	The following table presents the activity in the ACL, including the impact of the adoption of CECL, for the three months ended March 31, 2023, and the activity for the allowance for loan losses for the three months ended March 31, 2022 (in thousands). Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & Industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total Three months ended March 31, 2023 Beginning balance, prior to adoption of CECL $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Impact of the adoption of CECL 2,686 (6) (640) 237 1,661 187 — 4,125 Provision for (recapture of) credit losses 218 (73) 410 25 (13) (44) — 523 Charge-offs — — — — — (17) — (17) Recoveries 28 — — — 3 3 — 34 Balance, end of period $ 18,409 $ 556 $ 1,852 $ 700 $ 4,030 $ 157 $ — $ 25,704 March 31, 2022 Balance, beginning of period $ 25,112 $ 611 $ 2,189 $ 165 $ 2,434 $ 18 $ 1,180 $ 31,709 Provision for (recapture of) loan losses (2,321) 52 127 (32) (1,030) 15 551 (2,638) Charge-offs (21) — — (20) — (28) — (69) Recoveries 3 — — — 47 9 — 59 Balance, end of period $ 22,773 $ 663 $ 2,316 $ 113 $ 1,451 $ 14 $ 1,731 $ 29,061	The following tables presents the activity in the ACL, including the impact of the adoption of CECL, for the three months and six months ended June 30, 2023, and the activity for the allowance for loan losses for the three months and six months ended June 30, 2022 (in thousands). Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & Industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total Three months ended June 30, 2023 Balance, beginning of period $ 18,409 $ 556 $ 1,852 $ 700 $ 4,030 $ 157 $ — $ 25,704 Provision for (recapture of) credit losses 227 163 (533) (59) 487 25 — 310 Charge-offs — — — (29) — (75) — (104) Recoveries 3 — — — 3 3 — 9 Balance, end of period $ 18,639 $ 719 $ 1,319 $ 612 $ 4,520 $ 110 $ — $ 25,919 June 30, 2022 Balance, beginning of period $ 22,773 $ 663 $ 2,316 $ 113 $ 1,451 $ 14 $ 1,731 $ 29,061 Provision for (recapture of) loan losses (3,968) 61 1,291 101 (49) 26 — (2,538) Charge-offs (3,261) — — — — (27) — (3,288) Recoveries 4 — — — 117 6 — 127 Balance, end of period $ 15,548 $ 724 $ 3,607 $ 214 $ 1,519 $ 19 $ 1,731 $ 23,362 Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total Six months ended June 30, 2023 Beginning balance, prior to adoption of CECL $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Impact of the adoption of CECL 2,686 (6) (640) 237 1,661 187 — 4,125 Provision for (recapture of) credit losses 445 90 (123) (34) 474 (19) — 833 Charge-offs — — — (29) — (92) — (121) Recoveries 31 — — — 6 6 — 43 Balance, end of period $ 18,639 $ 719 $ 1,319 $ 612 $ 4,520 $ 110 $ — $ 25,919 June 30, 2022 Balance, beginning of period $ 25,112 $ 611 $ 2,189 $ 165 $ 2,434 $ 18 $ 1,180 $ 31,709 Provision for (recapture of) loan losses (6,289) 113 1,418 69 (1,079) 41 551 (5,176) Charge-offs (3,282) — — (20) — (55) — (3,357) Recoveries 7 — — — 164 15 — 186 Balance, end of period $ 15,548 $ 724 $ 3,607 $ 214 $ 1,519 $ 19 $ 1,731 $ 23,362	The following table presents the activity in the allowance for loan losses by portfolio segment for each of the years ending December 31, 2022, 2021, and 2020 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Total December 31, 2022 Allowance for loan losses Beginning balance $ 25,112 $ 611 $ 3,369 $ 160 $ 2,434 $ 23 $ 31,709 Provision for (recapture of) loan losses (6,391) 24 (1,287) 298 (239) 129 (7,466) Loans charged-off (3,282) — — (20) — (148) (3,450) Recoveries 38 — — — 184 24 246 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ 21,039 December 31, 2021 Allowance for loan losses Beginning balance $ 23,356 $ 1,196 $ 4,255 $ 68 $ 3,757 $ 65 $ 32,697 Provision for (recapture of) loan losses 1,870 (602) (886) 72 (1,490) 34 (1,002) Loans charged-off (127) — — — (16) (99) (242) Recoveries 13 17 — 20 183 23 256 Total ending allowance balance $ 25,112 $ 611 $ 3,369 $ 160 $ 2,434 $ 23 $ 31,709 December 31, 2020 Allowance for loan losses Beginning balance $ 11,396 $ 2,310 $ 1,697 $ 5,952 $ 2,791 $ 55 $ 24,201 Provision for (recapture of) loan losses 11,946 (1,114) 2,558 (1,752) 945 65 12,648 Loans charged-off — — — (5,858) (44) (94) (5,996) Recoveries 14 — — 1,726 65 39 1,844 Total ending allowance balance $ 23,356 $ 1,196 $ 4,255 $ 68 $ 3,757 $ 65 $ 32,697 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 and 2021 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Total December 31, 2022 Allowance for loan losses Individually evaluated for impairment $ 41 $ 102 $ — $ — $ 96 $ — $ 239 Collectively evaluated for impairment 15,436 533 2,082 438 2,283 28 20,800 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ 21,039 Loan balance: Individually evaluated for impairment $ 331 $ 2,580 $ — $ — $ 6,158 $ — $ 9,069 Collectively evaluated for impairment 1,108,984 124,534 94,450 53,514 493,204 3,466 1,878,152 Total ending loan balance $ 1,109,315 $ 127,114 $ 94,450 $ 53,514 $ 499,362 $ 3,466 $ 1,887,221 December 31, 2021 Allowance for loan losses Individually evaluated for impairment $ 7,558 $ 14 $ — $ — $ 107 $ — $ 7,679 Collectively evaluated for impairment 17,554 597 3,369 160 2,327 23 24,030 Total ending allowance balance $ 25,112 $ 611 $ 3,369 $ 160 $ 2,434 $ 23 $ 31,709 Loan balance: Individually evaluated for impairment $ 20,110 $ 2,843 $ — $ — $ 7,831 $ — $ 30,784 Collectively evaluated for impairment 1,011,531 122,770 109,518 58,818 407,763 3,889 1,714,289 Total ending loan balance $ 1,031,641 $ 125,613 $ 109,518 $ 58,818 $ 415,594 $ 3,889 $ 1,745,073
Impaired Financing Receivables	The information presented in the table below is not required for periods after the adoption of CECL. The following table summarizes the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & Industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total December 31, 2022 Allowance for loan losses Individually evaluated for impairment $ 41 $ 102 $ — $ — $ 96 $ — $ — $ 239 Collectively evaluated for impairment 15,436 533 2,082 438 2,283 28 — 20,800 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Loan balance: Individually evaluated for impairment $ 331 $ 2,580 $ — $ — $ 6,158 $ — $ — $ 9,069 Collectively evaluated for impairment 1,108,984 124,534 94,450 53,514 493,204 3,466 — 1,878,152 Total ending loan balance $ 1,109,315 $ 127,114 $ 94,450 $ 53,514 $ 499,362 $ 3,466 $ — $ 1,887,221 The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) December 31, 2022 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 1,184 1,394 — 1,291 97 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,151 5,576 — 5,131 213 Consumer non-real estate and other — — — — — Subtotal $ 6,335 $ 6,970 $ — $ 6,422 $ 310 With an allowance recorded: Commercial real estate $ 331 $ 331 $ 41 $ 350 $ 23 Owner-occupied commercial real estate 1,397 1,397 102 1,420 74 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 1,007 1,141 96 1,033 57 Consumer non-real estate and other — — — — — Subtotal $ 2,735 $ 2,869 $ 239 $ 2,803 $ 154 __________________ (1) Cash basis interest income recognized approximates interest income recognized shown as of the twelve months ended December 31, 2022. The following tables present information about collateral dependent loans that were individually evaluated for purposes of determining the ACL as of March 31, 2023 (in thousands): Collateral Dependent Loans With Allowance With No Related Allowance Total Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance March 31, 2023 Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate — — 1,121 1,121 — Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) — — 3,329 3,329 — Consumer non-real estate and other — — — — — Total $ — $ — $ 4,450 $ 4,450 $ —	The information presented in the table below is not required for periods after the adoption of CECL. The following table summarizes the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method (individually or collectively evaluated for impairment) as of December 31, 2022 (in thousands): Commercial real estate Owner-occupied commercial real estate Acquisition, construction & development Commercial & industrial Single family residential (1-4 units) Consumer non-real estate and other Unallocated Total December 31, 2022 Allowance for loan losses Individually evaluated for impairment $ 41 $ 102 $ — $ — $ 96 $ — $ — $ 239 Collectively evaluated for impairment 15,436 533 2,082 438 2,283 28 — 20,800 Total ending allowance balance $ 15,477 $ 635 $ 2,082 $ 438 $ 2,379 $ 28 $ — $ 21,039 Loan balance: Individually evaluated for impairment $ 331 $ 2,580 $ — $ — $ 6,158 $ — $ — $ 9,069 Collectively evaluated for impairment 1,108,984 124,534 94,450 53,514 493,204 3,466 — 1,878,152 Total ending loan balance $ 1,109,315 $ 127,114 $ 94,450 $ 53,514 $ 499,362 $ 3,466 $ — $ 1,887,221 The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) December 31, 2022 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 1,184 1,394 — 1,291 97 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,151 5,576 — 5,131 213 Consumer non-real estate and other — — — — — Subtotal $ 6,335 $ 6,970 $ — $ 6,422 $ 310 With an allowance recorded: Commercial real estate $ 331 $ 331 $ 41 $ 350 $ 23 Owner-occupied commercial real estate 1,397 1,397 102 1,420 74 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 1,007 1,141 96 1,033 57 Consumer non-real estate and other — — — — — Subtotal $ 2,735 $ 2,869 $ 239 $ 2,803 $ 154 __________________ (1) Cash basis interest income recognized approximates interest income recognized shown as of the twelve months ended December 31, 2022. The following tables present information about collateral-dependent loans that were individually evaluated for purposes of determining the ACL as of June 30, 2023 (in thousands): Collateral-Dependent Loans With Allowance With No Related Allowance Total Amortized Cost Related Allowance Amortized Cost Amortized Cost Related Allowance June 30, 2023 Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate — — 1,066 1,066 — Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) — — 2,670 2,670 — Consumer non-real estate and other — — — — — Total $ — $ — $ 3,736 $ 3,736 $ —	The following table presents information related to impaired loans (in thousands) by portfolio segment as of December 31, 2022 and 2021: Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (1) December 31, 2022 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 1,184 1,394 — 1,291 97 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,151 5,576 — 5,131 213 Consumer non-real estate and other — — — — — Subtotal $ 6,335 $ 6,970 $ — $ 6,422 $ 310 With an allowance recorded: Commercial real estate $ 331 $ 331 $ 41 $ 350 $ 23 Owner-occupied commercial real estate 1,397 1,397 102 1,420 74 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 1,007 1,141 96 1,033 57 Consumer non-real estate and other — — — — — Subtotal $ 2,735 $ 2,869 $ 239 $ 2,803 $ 154 December 31, 2021 With no related allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Owner-occupied commercial real estate 2,327 2,460 — 2,437 129 Acquisition, construction & development — — — — — Commercial & industrial — — — — — Single family residential (1-4 units) 5,673 6,230 — 5,848 245 Consumer non-real estate and other — — — — — Subtotal $ 8,000 $ 8,690 $ — $ 8,285 $ 374 With an allowance recorded: Commercial real estate $ 20,110 $ 20,236 $ 7,558 $ 20,130 $ 30 Owner-occupied commercial real estate 516 516 14 530 32 Acquisition, construction & development — — — — — Commercial & industrial — — — — Single family residential (1-4 units) 2,159 2,285 107 2,203 122 Consumer non-real estate and other — — — — — Subtotal $ 22,785 $ 23,037 $ 7,679 $ 22,863 $ 184 __________________ (1) Cash basis interest income recognized approximates interest income recognized as of December 31, 2022 and 2021.
Financing Receivable, Past Due	The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents the aging of the recorded investment in past due loans as of March 31, 2023, and December 31, 2022, by portfolio segment (in thousands): March 31, 2023 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ 2,075 $ — $ 2,075 $ 1,152,135 $ 1,154,210 $ — $ — Owner-occupied commercial real estate — — — — 125,657 125,657 — 1,121 Acquisition, construction & development — — — — 99,886 99,886 — — Commercial & industrial — 31 — 31 50,070 50,101 — — Single family residential (1-4 units) 1,515 — 328 1,843 516,932 518,775 — 2,125 Consumer non-real estate and other — — — — 3,109 3,109 — — Total $ 1,515 $ 2,106 $ 328 $ 3,949 $ 1,947,789 $ 1,951,738 $ — $ 3,246 December 31, 2022 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,109,315 $ 1,109,315 $ — $ — Owner-occupied commercial real estate — — — — 127,114 127,114 — 1,184 Acquisition, construction & development — — — — 94,450 94,450 — — Commercial & industrial — — — — 53,514 53,514 — — Single family residential (1-4 units) 1,403 154 546 2,103 497,259 499,362 — 4,313 Consumer non-real estate and other — 4 — 4 3,462 3,466 — — Total $ 1,403 $ 158 $ 546 $ 2,107 $ 1,885,114 $ 1,887,221 $ — $ 5,497	The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents the aging of the recorded investment in past due loans as of June 30, 2023, and December 31, 2022, by portfolio segment (in thousands): June 30, 2023 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,198,840 $ 1,198,840 $ — $ — Owner-occupied commercial real estate 873 — 673 1,546 122,920 124,466 — 1,066 Acquisition, construction & development — — — — 92,730 92,730 — — Commercial & industrial — — — — 59,142 59,142 — — Single family residential (1-4 units) 146 — 61 207 522,737 522,944 — 1,857 Consumer non-real estate and other 42 — — 42 2,805 2,847 — — Total $ 1,061 $ — $ 734 $ 1,795 $ 1,999,174 $ 2,000,969 $ — $ 2,923 December 31, 2022 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,109,315 $ 1,109,315 $ — $ — Owner-occupied commercial real estate — — — — 127,114 127,114 — 1,184 Acquisition, construction & development — — — — 94,450 94,450 — — Commercial & industrial — — — — 53,514 53,514 — — Single family residential (1-4 units) 1,403 154 546 2,103 497,259 499,362 — 4,313 Consumer non-real estate and other — 4 — 4 3,462 3,466 — — Total $ 1,403 $ 158 $ 546 $ 2,107 $ 1,885,114 $ 1,887,221 $ — $ 5,497	The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. The following table presents the aging of the recorded investment in past due loans as of December 31, 2022 and 2021 by portfolio segment: Aging and Nonaccrual Loans (in thousands): December 31, 2022 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ — $ — $ 1,109,315 $ 1,109,315 $ — $ — Owner-occupied commercial real estate — — — — 127,114 127,114 — 1,184 Acquisition, construction & development — — — — 94,450 94,450 — — Commercial & industrial — — — — 53,514 53,514 — — Single family residential (1-4 units) 1,403 154 546 2,103 497,259 499,362 — 4,313 Consumer non-real estate and other — 4 — 4 3,462 3,466 — — Total $ 1,403 $ 158 $ 546 $ 2,107 $ 1,885,114 $ 1,887,221 $ — $ 5,497 December 31, 2021 30 - 59 Days Past Due 60 - 89 Days Past Due 90 Days or More Past Due Total Past Due Current Loans Total Loans 90 Days Past Due & Still Accruing Non-accrual loans Commercial real estate $ — $ — $ 19,531 $ 19,531 $ 1,012,110 $ 1,031,641 $ — $ 19,594 Owner-occupied commercial real estate 121 — 820 941 124,672 125,613 — 1,399 Acquisition, construction & development — — — — 109,518 109,518 — — Commercial & industrial 21 — — 21 58,797 58,818 — — Single family residential (1-4 units) 365 — 649 1,014 414,580 415,594 — 5,268 Consumer non-real estate and other — — — — 3,889 3,889 — — Total $ 507 $ — $ 21,000 $ 21,507 $ 1,723,566 $ 1,745,073 $ — $ 26,261
Financing Receivable Credit Quality Indicators	The following table presents the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of March 31, 2023 (in thousands): Term Loans 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate Pass $ 51,800 $ 282,900 $ 214,098 $ 15,998 $ 76,014 $ 403,273 $ 4,309 $ 1,048,392 Special Mention — — — 8,433 5,302 40,929 — 54,664 Substandard — 600 2,351 — 7,569 40,634 — 51,154 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 51,800 $ 283,500 $ 216,449 $ 24,431 $ 88,885 $ 484,836 $ 4,309 $ 1,154,210 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Owner-occupied commercial real estate Pass $ 823 $ 30,039 $ 9,857 $ 15,463 $ 13,686 $ 49,753 $ 2,385 $ 122,006 Special Mention — — — — — 1,947 — 1,947 Substandard — 293 — — — 1,411 — 1,704 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 823 $ 30,332 $ 9,857 $ 15,463 $ 13,686 $ 53,111 $ 2,385 $ 125,657 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Acquisition, construction & development Pass $ 1,275 $ 28,498 $ 10,995 $ — $ 9,260 $ 1,398 $ 1,360 $ 52,786 Special Mention — — — — 807 22,093 — 22,900 Substandard — — — — — 24,200 — 24,200 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 1,275 $ 28,498 $ 10,995 $ — $ 10,067 $ 47,691 $ 1,360 $ 99,886 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial & industrial Pass $ 7,877 $ 18,402 $ 8,943 $ 603 $ 55 $ 1,769 $ 12,452 $ 50,101 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 7,877 $ 18,402 $ 8,943 $ 603 $ 55 $ 1,769 $ 12,452 $ 50,101 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Single family residential (1-4 units) Pass $ 32,061 $ 129,294 $ 62,952 $ 33,281 $ 42,540 $ 154,070 $ 62,451 $ 516,649 Special Mention — — — — — — — — Substandard — — — 263 — 1,863 — 2,126 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 32,061 $ 129,294 $ 62,952 $ 33,544 $ 42,540 $ 155,933 $ 62,451 $ 518,775 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer non-real estate and other Pass $ 376 $ 310 $ 183 $ 322 $ 460 $ 423 $ 1,035 $ 3,109 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 376 $ 310 $ 183 $ 322 $ 460 $ 423 $ 1,035 $ 3,109 Current period gross charge-offs $ — $ 17 $ — $ — $ — $ — $ — $ 17 The value of outstanding loans by credit quality indicators as of December 31, 2022 were as follows (in thousands): Pass Special Mention Substandard Doubtful Loss Total December 31, 2022 Commercial real estate $ 1,011,025 $ 62,907 $ 35,383 $ — $ — $ 1,109,315 Owner-occupied commercial real estate 121,621 1,963 3,530 — — 127,114 Acquisition, construction & development 68,220 836 25,394 — — 94,450 Commercial & industrial 53,273 — 241 — — 53,514 Single family residential (1-4 units) 494,994 55 4,313 — — 499,362 Consumer non-real estate and other 3,466 — — — — 3,466 Total $ 1,752,599 $ 65,761 $ 68,861 $ — $ — $ 1,887,221	The following table presents the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of June 30, 2023 (in thousands): Term Loans 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial real estate Pass $ 109,677 $ 268,807 $ 170,100 $ 15,736 $ 75,506 $ 422,563 $ 4,975 $ 1,067,364 Special Mention — 15,000 44,873 8,398 1,266 2,306 — 71,843 Substandard — 600 2,351 — 7,516 49,166 — 59,633 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 109,677 $ 284,407 $ 217,324 $ 24,134 $ 84,288 $ 474,035 $ 4,975 $ 1,198,840 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Owner-occupied commercial real estate Pass $ 2,569 $ 29,761 $ 9,622 $ 15,225 $ 13,021 $ 44,538 $ 4,535 $ 119,271 Special Mention — — — — — — — — Substandard — 539 — — — 4,656 — 5,195 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 2,569 $ 30,300 $ 9,622 $ 15,225 $ 13,021 $ 49,194 $ 4,535 $ 124,466 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Acquisition, construction & development Pass $ 2,941 $ 26,843 $ 14,504 $ — $ — $ 23,960 $ 1,610 $ 69,858 Special Mention — — — — 779 — — 779 Substandard — — — — — 22,093 — 22,093 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 2,941 $ 26,843 $ 14,504 $ — $ 779 $ 46,053 $ 1,610 $ 92,730 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Commercial & industrial Pass $ 19,732 $ 17,575 $ 8,041 $ 523 $ 41 $ 1,595 $ 11,635 $ 59,142 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 19,732 $ 17,575 $ 8,041 $ 523 $ 41 $ 1,595 $ 11,635 $ 59,142 Year to date gross charge-offs $ — $ — $ — $ 29 $ — $ — $ — $ 29 Single family residential (1-4 units) Pass $ 55,068 $ 130,556 $ 61,981 $ 32,645 $ 41,566 $ 148,187 $ 51,084 $ 521,087 Special Mention — — Substandard — — 291 252 — 1,314 — 1,857 Doubtful — — — — — — — — Loss — — — — — — — — Total $ 55,068 $ 130,556 $ 62,272 $ 32,897 $ 41,566 $ 149,501 $ 51,084 $ 522,944 Year to date gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer non-real estate and other Pass $ 227 $ 270 $ 161 $ 248 $ 435 $ 397 $ 1,109 $ 2,847 Special Mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Loss — — — — — — — — Total $ 227 $ 270 $ 161 $ 248 $ 435 $ 397 $ 1,109 $ 2,847 Year to date gross charge-offs $ 92 $ — $ — $ — $ — $ — $ — $ 92 The value of outstanding loans by credit quality indicators as of December 31, 2022 were as follows (in thousands): Pass Special Mention Substandard Doubtful Loss Total December 31, 2022 Commercial real estate $ 1,011,025 $ 62,907 $ 35,383 $ — $ — $ 1,109,315 Owner-occupied commercial real estate 121,621 1,963 3,530 — — 127,114 Acquisition, construction & development 68,220 836 25,394 — — 94,450 Commercial & industrial 53,273 — 241 — — 53,514 Single family residential (1-4 units) 494,994 55 4,313 — — 499,362 Consumer non-real estate and other 3,466 — — — — 3,466 Total $ 1,752,599 $ 65,761 $ 68,861 $ — $ — $ 1,887,221	Loans by credit quality indicators as of December 31, 2022 and 2021 were as follows (in thousands): Pass Special Mention Substandard Doubtful Loss Total December 31, 2022 Commercial real estate $ 1,011,025 $ 62,907 $ 35,383 $ — $ — $ 1,109,315 Owner-occupied commercial real estate 121,621 1,963 3,530 — — 127,114 Acquisition, construction & development 68,220 836 25,394 — — 94,450 Commercial & industrial 53,273 — 241 — — 53,514 Single family residential (1-4 units) 494,994 55 4,313 — — 499,362 Consumer non-real estate and other 3,466 — — — — 3,466 Total $ 1,752,599 $ 65,761 $ 68,861 $ — $ — $ 1,887,221 Pass Special Mention Substandard Doubtful Loss Total December 31, 2021 Commercial real estate $ 868,787 $ 75,397 $ 87,457 $ — $ — $ 1,031,641 Owner-occupied commercial real estate 122,065 2,149 1,399 — — 125,613 Acquisition, construction & development 72,895 36,623 — — — 109,518 Commercial & industrial 58,763 55 — — — 58,818 Single family residential (1-4 units) 410,227 99 5,268 — — 415,594 Consumer non-real estate and other 3,889 — — — — 3,889 Total $ 1,536,626 $ 114,323 $ 94,124 $ — $ — $ 1,745,073

Deposits (Tables)

Deposits (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Financial Services, Banking and Thrift [Abstract]
Time Deposit Maturities	At March 31, 2023, the scheduled maturities of time deposits for the remaining nine months ending December 31, 2023 and the following five years were as follows (in thousands): As of March 31, 2023 Remaining nine months ending, December 31, 2023 $ 130,833 2024 114,613 2025 133,679 2026 82,141 2027 49,529 2028 77,386 $ 588,181	At June 30, 2023, the scheduled maturities of time deposits for the remaining six months ending December 31, 2023 and the following five years were as follows (in thousands): As of June 30, 2023 Remaining six months ending, December 31, 2023 $ 99,479 2024 191,983 2025 132,500 2026 82,716 2027 49,528 2028 77,838 Total $ 634,044	At December 31, 2022, the scheduled maturities of time deposits for the next five years were as follows (in thousands): Years ending December 31, 2023 $ 153,075 2024 94,816 2025 45,724 2026 3,449 2027 1,827 $ 298,891

Deposits (Tables)_2

Deposits (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Financial Services, Banking and Thrift [Abstract]
Time Deposit Maturities	At March 31, 2023, the scheduled maturities of time deposits for the remaining nine months ending December 31, 2023 and the following five years were as follows (in thousands): As of March 31, 2023 Remaining nine months ending, December 31, 2023 $ 130,833 2024 114,613 2025 133,679 2026 82,141 2027 49,529 2028 77,386 $ 588,181	At June 30, 2023, the scheduled maturities of time deposits for the remaining six months ending December 31, 2023 and the following five years were as follows (in thousands): As of June 30, 2023 Remaining six months ending, December 31, 2023 $ 99,479 2024 191,983 2025 132,500 2026 82,716 2027 49,528 2028 77,838 Total $ 634,044	At December 31, 2022, the scheduled maturities of time deposits for the next five years were as follows (in thousands): Years ending December 31, 2023 $ 153,075 2024 94,816 2025 45,724 2026 3,449 2027 1,827 $ 298,891

Deposits (Tables)_2_3

Deposits (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Financial Services, Banking and Thrift [Abstract]
Time Deposit Maturities	At March 31, 2023, the scheduled maturities of time deposits for the remaining nine months ending December 31, 2023 and the following five years were as follows (in thousands): As of March 31, 2023 Remaining nine months ending, December 31, 2023 $ 130,833 2024 114,613 2025 133,679 2026 82,141 2027 49,529 2028 77,386 $ 588,181	At June 30, 2023, the scheduled maturities of time deposits for the remaining six months ending December 31, 2023 and the following five years were as follows (in thousands): As of June 30, 2023 Remaining six months ending, December 31, 2023 $ 99,479 2024 191,983 2025 132,500 2026 82,716 2027 49,528 2028 77,838 Total $ 634,044	At December 31, 2022, the scheduled maturities of time deposits for the next five years were as follows (in thousands): Years ending December 31, 2023 $ 153,075 2024 94,816 2025 45,724 2026 3,449 2027 1,827 $ 298,891

Federal Home Loan Bank Advanc_2

Federal Home Loan Bank Advances and Other Short-Term Borrowings (Tables)	12 Months Ended
	Dec. 31, 2022
Federal Home Loan Banks [Abstract]
Schedule of Contractual Maturities of Debt	The contractual maturities of this debt as of December 31, 2022 are as follows (in thousands): Due in 2023 $ 243,100 Due in 2024 100,000 $ 343,100

Advances and Other Borrowings (

Advances and Other Borrowings (Tables)	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of Short-Term Debt	The contractual maturities of this debt as of March 31, 2023, are as follows (in thousands): Due in 2023 $ 171,700 Due in 2024 150,000 $ 321,700	The contractual maturities of these borrowings as of June 30, 2023, are as follows (in thousands): Due in 2023 $ 49,000 Due in 2024 200,000 Total $ 249,000

Advances and Other Borrowings_3

Advances and Other Borrowings (Tables)	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of Short-Term Debt	The contractual maturities of this debt as of March 31, 2023, are as follows (in thousands): Due in 2023 $ 171,700 Due in 2024 150,000 $ 321,700	The contractual maturities of these borrowings as of June 30, 2023, are as follows (in thousands): Due in 2023 $ 49,000 Due in 2024 200,000 Total $ 249,000

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Schedule of Income Tax Expense (Benefit)	The income tax expense (benefit) for 2022, 2021, and 2020 was as follows (in thousands): 2022 2021 2020 Current Expense: Federal $ 5,501 $ 5,564 $ 5,770 State 1,388 372 — $ 6,889 $ 5,936 $ 5,770 Deferred Expense: Federal $ 1,318 $ (1,401) $ (3,830) State 79 (258) — $ 1,397 $ (1,659) $ (3,830) Total $ 8,286 $ 4,277 $ 1,940
Schedule of Statutory Tax Rates to Income Before Taxes	The following reconciles income taxes reported in the financial statements to taxes that would be obtained by applying statutory tax rates to income before taxes (in thousands): 2022 2021 2020 Expected taxes using statutory rates $ 10,983 $ 8,493 $ 5,972 Benefit of tax exempt income, net of non-deductible interest (1,694) (1,993) (1,644) Nontaxable income from life insurance (570) (502) (496) Low income tax credits, net of amortization (1,840) (1,843) (1,231) State taxes, net of federal benefit 1,159 294 — Other adjustment, net 248 (172) (661) $ 8,286 $ 4,277 $ 1,940
Schedule of Deferred Tax Assets and Liabilities	The net deferred tax amounts in the accompanying Balance Sheets include the following components (in thousands): 2022 2021 Deferred tax assets: Provision for loan losses $ 4,418 $ 6,962 Lease liability 2,171 2,451 Compensation accruals 1,773 1,345 Partnership investments 1,907 1,550 Unrealized losses on securities available-for-sale 34,789 — Tax credit carryforward 7,634 7,272 Deferred state taxes 179 — Other 422 243 $ 53,293 $ 19,823 Deferred tax liabilities: Unrealized gains on securities available-for-sale $ — $ (3,449) Tax over book depreciation (1,555) (1,369) Pension accrual (366) (890) Right of use asset (2,074) (2,349) $ (3,995) $ (8,057) Net deferred tax asset $ 49,298 $ 11,766

Defined Benefit Pension Plan (T

Defined Benefit Pension Plan (Tables)	12 Months Ended
	Dec. 31, 2022
Retirement Benefits [Abstract]
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets	The following tables set forth the Plan’s status and related disclosures (in thousands): 2022 2021 Changes in benefit obligation: Benefit obligation at beginning of year $ 42,297 $ 43,371 Service cost 786 998 Interest cost 1,141 1,042 Actuarial (gain) loss (12,549) (2,131) Distributions (1,450) (983) Benefit obligation at end of year $ 30,225 $ 42,297 Change in plan assets: Fair value of plan assets at beginning of year $ 46,017 $ 47,526 Adjustment to beginning of year fair value — — Actual return on plan assets (12,599) (526) Employer contribution — — Distributions (1,450) (983) Fair value of plan assets at end of year $ 31,968 $ 46,017 Funded status recognized as accrued pension cost $ 1,743 $ 3,720 Amounts recognized in accumulated other comprehensive (income) loss: Net loss $ 8,901 $ 7,621 Deferred income tax benefit (1,869) (1,601) Total amount recognized $ 7,032 $ 6,020 Accumulated benefit obligation $ 28,184 $ 38,315 At December 31, 2022, 2021 and 2020, the assumptions used to determine the pension benefit obligation were as follows: 2022 2021 2020 Discount rate 5.00 % 2.76 % 2.42 % Rate of compensation increase 3.00 3.50 3.50
Schedule of Net Periodic Benefit Costs	Components of net periodic benefit cost and other amounts recognized in other comprehensive income (in thousands): 2022 2021 2020 Components of net periodic pension cost: Service cost $ 786 $ 998 $ 911 Interest cost 1,141 1,042 1,159 Expected return on plan assets (1,539) (1,612) (1,938) Amortization of prior service costs — — — Amortization of net loss 309 393 488 Net periodic pension costs $ 697 $ 821 $ 620 Other changes recognized in other comprehensive (income) loss Net loss $ 1,589 $ 7 $ 378 Amortization of net loss (309) (393) (488) Deferred tax expense (benefit) (269) 81 23 Total recognized in accumulated other comprehensive (income) loss $ 1,011 $ (305) $ (87) Total recognized in net periodic pension costs and other comprehensive loss $ 1,708 $ 516 $ 533
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)	Components of net periodic benefit cost and other amounts recognized in other comprehensive income (in thousands): 2022 2021 2020 Components of net periodic pension cost: Service cost $ 786 $ 998 $ 911 Interest cost 1,141 1,042 1,159 Expected return on plan assets (1,539) (1,612) (1,938) Amortization of prior service costs — — — Amortization of net loss 309 393 488 Net periodic pension costs $ 697 $ 821 $ 620 Other changes recognized in other comprehensive (income) loss Net loss $ 1,589 $ 7 $ 378 Amortization of net loss (309) (393) (488) Deferred tax expense (benefit) (269) 81 23 Total recognized in accumulated other comprehensive (income) loss $ 1,011 $ (305) $ (87) Total recognized in net periodic pension costs and other comprehensive loss $ 1,708 $ 516 $ 533
Defined Benefit Plan, Assumptions	For the years ended December 31, 2022, 2021 and 2020, the assumptions used to determine net periodic pension cost were as follows: 2022 2021 2020 Discount rate 5.00 % 2.76 % 2.42 % Expected long-term rate of return on plan assets 3.75 3.75 5.10 Annual salary increase 3.00 3.50 3.50
Schedule of Pension Plan Asset Allocations	The Company’s pension plan asset allocations at December 31, 2022 and 2021 were as follows: 2022 2021 Equity securities 10 % 11 % Debt securities 90 89 Total 100 % 100 %
Schedule of Fair Value of Plan Assets	As of December 31, 2022 and 2021, the fair value of plan assets was as follows (in thousands): December 31, 2022 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Cash and cash equivalents $ 102 $ — $ — $ 102 Equity securities — 3,181 — 3,181 Debt securities — 28,749 — 28,749 Total pension assets $ 102 $ 31,930 $ — $ 32,032 December 31, 2021 Fair Value Measurements Using Level 1 Level 2 Level 3 Assets at Fair Value Cash and cash equivalents $ 82 $ — $ — $ 82 Equity securities — 5,154 — 5,154 Debt securities — 40,782 — 40,782 Total pension assets $ 82 $ 45,936 $ — $ 46,018
Schedule of Expected Future Benefit Payments	Estimated future benefit payments, which reflect expected future service, as appropriate, are as follows (in thousands): Years ending December 31, 2023 $ 1,391 2024 1,402 2025 1,387 2026 1,434 2027 1,533 Following 5 years 9,116

Leased Property (Tables)

Leased Property (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Lessor, Lease Income	The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the three months ended (in thousands): March 31, 2023 March 31, 2022 Operating lease income $ 575 $ 43 Total lease income $ 575 $ 43	The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Operating lease income $ 575 $ 43 $ 1,150 $ 86 Total lease income $ 575 $ 43 $ 1,150 $ 86	The components of lease income, which was included in non-interest expense on the Statements of Income, were as follows for the year ending (in thousands): 2022 2021 2020 Operating lease income $ 1,309 $ 181 $ 190 Total lease income $ 1,309 $ 181 $ 190
Lessor, Operating Lease, Payment to be Received, Maturity	The remaining maturities of operating lease receivables as of March 31, 2023, are as follows (in thousands): Operating Leases Remaining nine months ending December 31, 2023 $ 1,726 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 13,089	The remaining maturities of operating lease receivables as of June 30, 2023, are as follows (in thousands): Operating Leases Remaining six months ending December 31, 2023 $ 1,151 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 12,514	The remaining maturities of operating lease receivables as of December 31, 2022 are as follows (in thousands): Operating Leases Leases 2023 $ 2,354 2024 1,454 2025 1,418 2026 810 2027 509 Thereafter 1,594 Total lease receivables $ 8,139
Assets And Liabilities, Lessee	Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification March 31, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 6,474 $ 7,255 Finance leases Other assets 2,569 2,620 Total right-of-use assets $ 9,043 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 6,782 $ 7,592 Finance Leases Other liabilities 2,705 2,745 Total lease liabilities $ 9,487 $ 10,337	Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification June 30, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 5,572 $ 7,255 Finance leases Other assets 2,518 2,620 Total right-of-use assets $ 8,090 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 5,837 $ 7,592 Finance leases Other liabilities 2,666 2,745 Total lease liabilities $ 8,503 $ 10,337	Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification 2022 2021 Right-of-use assets: Operating leases Other assets $ 7,255 $ 7,869 Finance leases Other assets 2,620 2,824 Total right-of-use assets $ 9,875 $ 10,693 Lease liabilities: Operating leases Other liabilities $ 7,592 $ 8,268 Finance Leases Other liabilities 2,745 2,897 Total lease liabilities $ 10,337 $ 11,165
Lease, Cost	The components of total lease cost were as follows for the period ending (in thousands): March 31, 2023 March 31, 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 Interest expense 15 16 Operating lease cost 839 594 Total lease cost $ 905 $ 661 The following table presents additional information about the Company’s leases as of March 31, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) March 31, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.51 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.16 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities March 31, 2023 March 31, 2022 Operating cash flows from operating leases $ 868 $ 569 Operating cash flows from finance leases 15 16 Financing cash flows from finance leases 39 38 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — —	The components of total lease cost were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 $ 102 $ 102 Interest expense 15 16 30 32 Operating lease cost 839 594 1,667 1,195 Total lease cost $ 905 $ 661 $ 1,799 $ 1,329 The following table presents additional information about the Company’s leases as of June 30, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) June 30, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.26 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.06 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities June 30, 2023 June 30, 2022 Operating cash flows from operating leases $ 1,739 $ 1,238 Operating cash flows from finance leases 30 32 Financing cash flows from finance leases 80 76 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — 502	The components of total lease cost were as follows for the period ending (in thousands): 2022 2021 2020 Finance lease cost Right-of-use asset amortization $ 204 $ 207 $ 34 Interest expense 63 39 6 Operating lease cost 2,495 2,517 2,344 Total lease cost $ 2,762 $ 2,763 $ 2,384 The following table presents additional information about the Company’s leases as of December 31, 2022 and 2021. Supplemental lease information (dollars in thousands) 2022 2021 Finance lease weighted average remaining lease term (years) 12.76 13.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.26 4.12 Operating lease weighted average discount rate 3.19 % 2.89 % Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,557 $ 2,323 Operating cash flows from finance leases 63 39 Financing cash flows from finance leases 152 152 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities 1,558 856
Finance Lease, Liability, to be Paid, Maturity	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of June 30, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining six months ending December 31, 2023 $ 1,591 $ 110 2024 2,305 224 2025 849 228 2026 415 233 2027 366 238 Thereafter 625 2,034 Total undiscounted lease payments 6,151 3,067 Less: discount (314) (401) Net lease liabilities $ 5,837 $ 2,666	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2022 are as follows (in thousands): Operating Leases Finance Leases 2023 $ 3,474 $ 220 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 626 2,033 Total undiscounted lease payments 8,014 3,176 Less: Discount (422) (431) Net lease liabilities $ 7,592 $ 2,745
Lessee, Operating Lease, Liability, Maturity	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of June 30, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining six months ending December 31, 2023 $ 1,591 $ 110 2024 2,305 224 2025 849 228 2026 415 233 2027 366 238 Thereafter 625 2,034 Total undiscounted lease payments 6,151 3,067 Less: discount (314) (401) Net lease liabilities $ 5,837 $ 2,666	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2022 are as follows (in thousands): Operating Leases Finance Leases 2023 $ 3,474 $ 220 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 626 2,033 Total undiscounted lease payments 8,014 3,176 Less: Discount (422) (431) Net lease liabilities $ 7,592 $ 2,745

Leased Property (Tables)_2

Leased Property (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Lessor, Lease Income	The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the three months ended (in thousands): March 31, 2023 March 31, 2022 Operating lease income $ 575 $ 43 Total lease income $ 575 $ 43	The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Operating lease income $ 575 $ 43 $ 1,150 $ 86 Total lease income $ 575 $ 43 $ 1,150 $ 86	The components of lease income, which was included in non-interest expense on the Statements of Income, were as follows for the year ending (in thousands): 2022 2021 2020 Operating lease income $ 1,309 $ 181 $ 190 Total lease income $ 1,309 $ 181 $ 190
Lessor, Operating Lease, Payment to be Received, Maturity	The remaining maturities of operating lease receivables as of March 31, 2023, are as follows (in thousands): Operating Leases Remaining nine months ending December 31, 2023 $ 1,726 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 13,089	The remaining maturities of operating lease receivables as of June 30, 2023, are as follows (in thousands): Operating Leases Remaining six months ending December 31, 2023 $ 1,151 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 12,514	The remaining maturities of operating lease receivables as of December 31, 2022 are as follows (in thousands): Operating Leases Leases 2023 $ 2,354 2024 1,454 2025 1,418 2026 810 2027 509 Thereafter 1,594 Total lease receivables $ 8,139
Assets And Liabilities, Lessee	Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification March 31, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 6,474 $ 7,255 Finance leases Other assets 2,569 2,620 Total right-of-use assets $ 9,043 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 6,782 $ 7,592 Finance Leases Other liabilities 2,705 2,745 Total lease liabilities $ 9,487 $ 10,337	Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification June 30, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 5,572 $ 7,255 Finance leases Other assets 2,518 2,620 Total right-of-use assets $ 8,090 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 5,837 $ 7,592 Finance leases Other liabilities 2,666 2,745 Total lease liabilities $ 8,503 $ 10,337	Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification 2022 2021 Right-of-use assets: Operating leases Other assets $ 7,255 $ 7,869 Finance leases Other assets 2,620 2,824 Total right-of-use assets $ 9,875 $ 10,693 Lease liabilities: Operating leases Other liabilities $ 7,592 $ 8,268 Finance Leases Other liabilities 2,745 2,897 Total lease liabilities $ 10,337 $ 11,165
Lease, Cost	The components of total lease cost were as follows for the period ending (in thousands): March 31, 2023 March 31, 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 Interest expense 15 16 Operating lease cost 839 594 Total lease cost $ 905 $ 661 The following table presents additional information about the Company’s leases as of March 31, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) March 31, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.51 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.16 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities March 31, 2023 March 31, 2022 Operating cash flows from operating leases $ 868 $ 569 Operating cash flows from finance leases 15 16 Financing cash flows from finance leases 39 38 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — —	The components of total lease cost were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 $ 102 $ 102 Interest expense 15 16 30 32 Operating lease cost 839 594 1,667 1,195 Total lease cost $ 905 $ 661 $ 1,799 $ 1,329 The following table presents additional information about the Company’s leases as of June 30, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) June 30, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.26 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.06 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities June 30, 2023 June 30, 2022 Operating cash flows from operating leases $ 1,739 $ 1,238 Operating cash flows from finance leases 30 32 Financing cash flows from finance leases 80 76 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — 502	The components of total lease cost were as follows for the period ending (in thousands): 2022 2021 2020 Finance lease cost Right-of-use asset amortization $ 204 $ 207 $ 34 Interest expense 63 39 6 Operating lease cost 2,495 2,517 2,344 Total lease cost $ 2,762 $ 2,763 $ 2,384 The following table presents additional information about the Company’s leases as of December 31, 2022 and 2021. Supplemental lease information (dollars in thousands) 2022 2021 Finance lease weighted average remaining lease term (years) 12.76 13.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.26 4.12 Operating lease weighted average discount rate 3.19 % 2.89 % Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,557 $ 2,323 Operating cash flows from finance leases 63 39 Financing cash flows from finance leases 152 152 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities 1,558 856
Lessee, Operating Lease, Liability, Maturity	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of June 30, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining six months ending December 31, 2023 $ 1,591 $ 110 2024 2,305 224 2025 849 228 2026 415 233 2027 366 238 Thereafter 625 2,034 Total undiscounted lease payments 6,151 3,067 Less: discount (314) (401) Net lease liabilities $ 5,837 $ 2,666	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2022 are as follows (in thousands): Operating Leases Finance Leases 2023 $ 3,474 $ 220 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 626 2,033 Total undiscounted lease payments 8,014 3,176 Less: Discount (422) (431) Net lease liabilities $ 7,592 $ 2,745
Finance Lease, Liability, to be Paid, Maturity	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of June 30, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining six months ending December 31, 2023 $ 1,591 $ 110 2024 2,305 224 2025 849 228 2026 415 233 2027 366 238 Thereafter 625 2,034 Total undiscounted lease payments 6,151 3,067 Less: discount (314) (401) Net lease liabilities $ 5,837 $ 2,666	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2022 are as follows (in thousands): Operating Leases Finance Leases 2023 $ 3,474 $ 220 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 626 2,033 Total undiscounted lease payments 8,014 3,176 Less: Discount (422) (431) Net lease liabilities $ 7,592 $ 2,745

Leased Property (Tables)_2_3

Leased Property (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Lessor, Lease Income	The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows for the three months ended (in thousands): March 31, 2023 March 31, 2022 Operating lease income $ 575 $ 43 Total lease income $ 575 $ 43	The components of lease income, which was included in non-interest expense on the Consolidated Statements of Income, were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Operating lease income $ 575 $ 43 $ 1,150 $ 86 Total lease income $ 575 $ 43 $ 1,150 $ 86	The components of lease income, which was included in non-interest expense on the Statements of Income, were as follows for the year ending (in thousands): 2022 2021 2020 Operating lease income $ 1,309 $ 181 $ 190 Total lease income $ 1,309 $ 181 $ 190
Lessor, Operating Lease, Payment to be Received, Maturity	The remaining maturities of operating lease receivables as of March 31, 2023, are as follows (in thousands): Operating Leases Remaining nine months ending December 31, 2023 $ 1,726 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 13,089	The remaining maturities of operating lease receivables as of June 30, 2023, are as follows (in thousands): Operating Leases Remaining six months ending December 31, 2023 $ 1,151 2024 2,302 2025 2,265 2026 1,657 2027 1,356 Thereafter 3,783 Total lease receivables $ 12,514	The remaining maturities of operating lease receivables as of December 31, 2022 are as follows (in thousands): Operating Leases Leases 2023 $ 2,354 2024 1,454 2025 1,418 2026 810 2027 509 Thereafter 1,594 Total lease receivables $ 8,139
Assets And Liabilities, Lessee	Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification March 31, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 6,474 $ 7,255 Finance leases Other assets 2,569 2,620 Total right-of-use assets $ 9,043 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 6,782 $ 7,592 Finance Leases Other liabilities 2,705 2,745 Total lease liabilities $ 9,487 $ 10,337	Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification June 30, 2023 December 31, 2022 Right-of-use assets: Operating leases Other assets $ 5,572 $ 7,255 Finance leases Other assets 2,518 2,620 Total right-of-use assets $ 8,090 $ 9,875 Lease liabilities: Operating leases Other liabilities $ 5,837 $ 7,592 Finance leases Other liabilities 2,666 2,745 Total lease liabilities $ 8,503 $ 10,337	Right-of-use assets and liabilities by lease type, and the associated balance sheet classifications are as follows (in thousands): Balance Sheet Classification 2022 2021 Right-of-use assets: Operating leases Other assets $ 7,255 $ 7,869 Finance leases Other assets 2,620 2,824 Total right-of-use assets $ 9,875 $ 10,693 Lease liabilities: Operating leases Other liabilities $ 7,592 $ 8,268 Finance Leases Other liabilities 2,745 2,897 Total lease liabilities $ 10,337 $ 11,165
Lease, Cost	The components of total lease cost were as follows for the period ending (in thousands): March 31, 2023 March 31, 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 Interest expense 15 16 Operating lease cost 839 594 Total lease cost $ 905 $ 661 The following table presents additional information about the Company’s leases as of March 31, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) March 31, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.51 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.16 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities March 31, 2023 March 31, 2022 Operating cash flows from operating leases $ 868 $ 569 Operating cash flows from finance leases 15 16 Financing cash flows from finance leases 39 38 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — —	The components of total lease cost were as follows (in thousands): Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Finance lease cost Right-of-use asset amortization $ 51 $ 51 $ 102 $ 102 Interest expense 15 16 30 32 Operating lease cost 839 594 1,667 1,195 Total lease cost $ 905 $ 661 $ 1,799 $ 1,329 The following table presents additional information about the Company’s leases as of June 30, 2023, and December 31, 2022. Supplemental lease information (dollars in thousands) June 30, 2023 December 31, 2022 Finance lease weighted average remaining lease term (years) 12.26 12.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.15 3.26 Operating lease weighted average discount rate 3.06 % 3.19 % Cash paid for amounts included in the measurement of lease liabilities June 30, 2023 June 30, 2022 Operating cash flows from operating leases $ 1,739 $ 1,238 Operating cash flows from finance leases 30 32 Financing cash flows from finance leases 80 76 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities — 502	The components of total lease cost were as follows for the period ending (in thousands): 2022 2021 2020 Finance lease cost Right-of-use asset amortization $ 204 $ 207 $ 34 Interest expense 63 39 6 Operating lease cost 2,495 2,517 2,344 Total lease cost $ 2,762 $ 2,763 $ 2,384 The following table presents additional information about the Company’s leases as of December 31, 2022 and 2021. Supplemental lease information (dollars in thousands) 2022 2021 Finance lease weighted average remaining lease term (years) 12.76 13.76 Finance lease weighted average discount rate 2.22 % 2.22 % Operating lease weighted average remaining lease term (years) 3.26 4.12 Operating lease weighted average discount rate 3.19 % 2.89 % Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,557 $ 2,323 Operating cash flows from finance leases 63 39 Financing cash flows from finance leases 152 152 Right-of-use assets obtained in exchange for new finance lease liabilities — — Right-of-use assets obtained in exchange for new operating lease liabilities 1,558 856
Lessee, Operating Lease, Liability, Maturity	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of June 30, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining six months ending December 31, 2023 $ 1,591 $ 110 2024 2,305 224 2025 849 228 2026 415 233 2027 366 238 Thereafter 625 2,034 Total undiscounted lease payments 6,151 3,067 Less: discount (314) (401) Net lease liabilities $ 5,837 $ 2,666	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2022 are as follows (in thousands): Operating Leases Finance Leases 2023 $ 3,474 $ 220 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 626 2,033 Total undiscounted lease payments 8,014 3,176 Less: Discount (422) (431) Net lease liabilities $ 7,592 $ 2,745
Finance Lease, Liability, to be Paid, Maturity	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of March 31, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining nine months ending December 31, 2023 $ 2,606 $ 165 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 625 2,033 Total undiscounted lease payments 7,145 3,121 Less: Discount (363) (416) Net lease liabilities $ 6,782 $ 2,705	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of June 30, 2023, are as follows (in thousands): Operating Leases Finance Leases Remaining six months ending December 31, 2023 $ 1,591 $ 110 2024 2,305 224 2025 849 228 2026 415 233 2027 366 238 Thereafter 625 2,034 Total undiscounted lease payments 6,151 3,067 Less: discount (314) (401) Net lease liabilities $ 5,837 $ 2,666	The Company’s future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2022 are as follows (in thousands): Operating Leases Finance Leases 2023 $ 3,474 $ 220 2024 2,294 224 2025 839 228 2026 415 233 2027 366 238 Thereafter 626 2,033 Total undiscounted lease payments 8,014 3,176 Less: Discount (422) (431) Net lease liabilities $ 7,592 $ 2,745

Regulatory Capital Matters (Tab

Regulatory Capital Matters (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Regulatory Capital Requirements under Banking Regulations [Abstract]
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations	The following table presents the actual and required capital amounts and ratios for the Company and the Bank at March 31, 2023, and December 31, 2022 (in thousands except for ratios). Actual Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of March 31, 2023 Total Capital to risk weighted assets Consolidated $ 439,563 18.65 % $ 247,459 ≥ 10.5% $ 235,675 ≥ 10.0% Burke & Herbert Bank & Trust 436,046 18.50 247,528 ≥ 10.5 235,741 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 413,592 17.55 200,324 ≥ 8.5 188,540 ≥ 8.0 Burke & Herbert Bank & Trust 410,075 17.40 200,380 ≥ 8.5 188,593 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 413,592 17.55 164,973 ≥ 7.0 153,189 ≥ 6.5 Burke & Herbert Bank & Trust 410,075 17.40 165,019 ≥ 7.0 153,232 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 413,592 11.19 147,859 ≥ 4.0 184,824 ≥ 5.0 Burke & Herbert Bank & Trust 410,075 11.09 147,913 ≥ 4.0 184,891 ≥ 5.0 As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 241,325 ≥ 10.5% $ 229,834 ≥ 10.0% Burke & Herbert Bank & Trust 432,290 18.81 241,368 ≥ 10.5 229,874 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 195,358 ≥ 8.5 186,867 ≥ 8.0 Burke & Herbert Bank & Trust 411,251 17.89 195,393 ≥ 8.5 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 160,883 ≥ 7.0 149,392 ≥ 6.5 Burke & Herbert Bank & Trust 411,251 17.89 160,912 ≥ 7.0 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 182,007 ≥ 5.0 Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 5.0	The following table presents the actual and required capital amounts and ratios for the Company and the Bank at June 30, 2023, and December 31, 2022 (in thousands except for ratios). Actual Minimum Required for Capital Adequacy Purposes (includes applicable Capital Conservation Buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of June 30, 2023 Total Capital to risk weighted assets Consolidated $ 442,338 18.71 % $ 248,273 ≥ 10.5% $ 236,450 ≥ 10.0% Burke & Herbert Bank & Trust 439,212 18.57 248,365 ≥ 10.5 236,538 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 416,249 17.60 200,983 ≥ 8.5 189,160 ≥ 8.0 Burke & Herbert Bank & Trust 413,123 17.47 201,057 ≥ 8.5 189,230 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 416,249 17.60 165,515 ≥ 7.0 153,693 ≥ 6.5 Burke & Herbert Bank & Trust 413,123 17.47 165,576 ≥ 7.0 153,750 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 416,249 11.20 148,725 ≥ 4.0 185,906 ≥ 5.0 Burke & Herbert Bank & Trust 413,123 11.11 148,770 ≥ 4.0 185,962 ≥ 5.0 As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 241,325 ≥ 10.5% $ 229,834 ≥ 10.0% Burke & Herbert Bank & Trust 432,290 18.81 241,368 ≥ 10.5 229,874 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 195,358 ≥ 8.5 186,867 ≥ 8.0 Burke & Herbert Bank & Trust 411,251 17.89 195,393 ≥ 8.5 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 160,883 ≥ 7.0 149,392 ≥ 6.5 Burke & Herbert Bank & Trust 411,251 17.89 160,912 ≥ 7.0 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 182,007 ≥ 5.0 Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 5.0	The table below presents the actual and required capital amounts and ratios for the Company at December 31, 2022 and the Bank at December 31, 2022 and 2021 (in thousands). Actual Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 183,867 ≥ 8.0% n/a n/a Burke & Herbert Bank & Trust $ 432,290 18.81 % $ 183,900 ≥ 8.0% $ 229,874 ≥ 10.0% Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 137,900 ≥ 6.0 n/a n/a Burke & Herbert Bank & Trust 411,251 17.89 137,925 ≥ 6.0 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 103,425 ≥ 4.5 n/a n/a Burke & Herbert Bank & Trust 411,251 17.89 103,443 ≥ 4.5 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 n/a n/a Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 5.0 As of December 31, 2021 Total Capital to risk weighted assets Burke & Herbert Bank & Trust $ 409,923 18.84 % $ 174,050 ≥ 8.0% $ 217,562 ≥ 10.0% Tier 1 (Core) Capital to risk weighted assets Burke & Herbert Bank & Trust 382,672 17.59 130,537 ≥ 6.0 174,050 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Burke & Herbert Bank & Trust 382,672 17.59 97,903 ≥ 4.5 141,415 ≥ 6.5 Tier 1 (Core) Capital to average assets Burke & Herbert Bank & Trust 382,672 10.81 141,594 ≥ 4.0 176,992 ≥ 5.0

Regulatory Capital Matters (T_2

Regulatory Capital Matters (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Regulatory Capital Requirements under Banking Regulations [Abstract]
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations	The following table presents the actual and required capital amounts and ratios for the Company and the Bank at March 31, 2023, and December 31, 2022 (in thousands except for ratios). Actual Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of March 31, 2023 Total Capital to risk weighted assets Consolidated $ 439,563 18.65 % $ 247,459 ≥ 10.5% $ 235,675 ≥ 10.0% Burke & Herbert Bank & Trust 436,046 18.50 247,528 ≥ 10.5 235,741 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 413,592 17.55 200,324 ≥ 8.5 188,540 ≥ 8.0 Burke & Herbert Bank & Trust 410,075 17.40 200,380 ≥ 8.5 188,593 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 413,592 17.55 164,973 ≥ 7.0 153,189 ≥ 6.5 Burke & Herbert Bank & Trust 410,075 17.40 165,019 ≥ 7.0 153,232 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 413,592 11.19 147,859 ≥ 4.0 184,824 ≥ 5.0 Burke & Herbert Bank & Trust 410,075 11.09 147,913 ≥ 4.0 184,891 ≥ 5.0 As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 241,325 ≥ 10.5% $ 229,834 ≥ 10.0% Burke & Herbert Bank & Trust 432,290 18.81 241,368 ≥ 10.5 229,874 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 195,358 ≥ 8.5 186,867 ≥ 8.0 Burke & Herbert Bank & Trust 411,251 17.89 195,393 ≥ 8.5 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 160,883 ≥ 7.0 149,392 ≥ 6.5 Burke & Herbert Bank & Trust 411,251 17.89 160,912 ≥ 7.0 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 182,007 ≥ 5.0 Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 5.0	The following table presents the actual and required capital amounts and ratios for the Company and the Bank at June 30, 2023, and December 31, 2022 (in thousands except for ratios). Actual Minimum Required for Capital Adequacy Purposes (includes applicable Capital Conservation Buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of June 30, 2023 Total Capital to risk weighted assets Consolidated $ 442,338 18.71 % $ 248,273 ≥ 10.5% $ 236,450 ≥ 10.0% Burke & Herbert Bank & Trust 439,212 18.57 248,365 ≥ 10.5 236,538 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 416,249 17.60 200,983 ≥ 8.5 189,160 ≥ 8.0 Burke & Herbert Bank & Trust 413,123 17.47 201,057 ≥ 8.5 189,230 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 416,249 17.60 165,515 ≥ 7.0 153,693 ≥ 6.5 Burke & Herbert Bank & Trust 413,123 17.47 165,576 ≥ 7.0 153,750 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 416,249 11.20 148,725 ≥ 4.0 185,906 ≥ 5.0 Burke & Herbert Bank & Trust 413,123 11.11 148,770 ≥ 4.0 185,962 ≥ 5.0 As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 241,325 ≥ 10.5% $ 229,834 ≥ 10.0% Burke & Herbert Bank & Trust 432,290 18.81 241,368 ≥ 10.5 229,874 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 195,358 ≥ 8.5 186,867 ≥ 8.0 Burke & Herbert Bank & Trust 411,251 17.89 195,393 ≥ 8.5 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 160,883 ≥ 7.0 149,392 ≥ 6.5 Burke & Herbert Bank & Trust 411,251 17.89 160,912 ≥ 7.0 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 182,007 ≥ 5.0 Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 5.0	The table below presents the actual and required capital amounts and ratios for the Company at December 31, 2022 and the Bank at December 31, 2022 and 2021 (in thousands). Actual Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 183,867 ≥ 8.0% n/a n/a Burke & Herbert Bank & Trust $ 432,290 18.81 % $ 183,900 ≥ 8.0% $ 229,874 ≥ 10.0% Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 137,900 ≥ 6.0 n/a n/a Burke & Herbert Bank & Trust 411,251 17.89 137,925 ≥ 6.0 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 103,425 ≥ 4.5 n/a n/a Burke & Herbert Bank & Trust 411,251 17.89 103,443 ≥ 4.5 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 n/a n/a Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 5.0 As of December 31, 2021 Total Capital to risk weighted assets Burke & Herbert Bank & Trust $ 409,923 18.84 % $ 174,050 ≥ 8.0% $ 217,562 ≥ 10.0% Tier 1 (Core) Capital to risk weighted assets Burke & Herbert Bank & Trust 382,672 17.59 130,537 ≥ 6.0 174,050 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Burke & Herbert Bank & Trust 382,672 17.59 97,903 ≥ 4.5 141,415 ≥ 6.5 Tier 1 (Core) Capital to average assets Burke & Herbert Bank & Trust 382,672 10.81 141,594 ≥ 4.0 176,992 ≥ 5.0

Regulatory Capital Matters (T_3

Regulatory Capital Matters (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Regulatory Capital Requirements under Banking Regulations [Abstract]
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations	The following table presents the actual and required capital amounts and ratios for the Company and the Bank at March 31, 2023, and December 31, 2022 (in thousands except for ratios). Actual Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of March 31, 2023 Total Capital to risk weighted assets Consolidated $ 439,563 18.65 % $ 247,459 ≥ 10.5% $ 235,675 ≥ 10.0% Burke & Herbert Bank & Trust 436,046 18.50 247,528 ≥ 10.5 235,741 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 413,592 17.55 200,324 ≥ 8.5 188,540 ≥ 8.0 Burke & Herbert Bank & Trust 410,075 17.40 200,380 ≥ 8.5 188,593 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 413,592 17.55 164,973 ≥ 7.0 153,189 ≥ 6.5 Burke & Herbert Bank & Trust 410,075 17.40 165,019 ≥ 7.0 153,232 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 413,592 11.19 147,859 ≥ 4.0 184,824 ≥ 5.0 Burke & Herbert Bank & Trust 410,075 11.09 147,913 ≥ 4.0 184,891 ≥ 5.0 As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 241,325 ≥ 10.5% $ 229,834 ≥ 10.0% Burke & Herbert Bank & Trust 432,290 18.81 241,368 ≥ 10.5 229,874 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 195,358 ≥ 8.5 186,867 ≥ 8.0 Burke & Herbert Bank & Trust 411,251 17.89 195,393 ≥ 8.5 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 160,883 ≥ 7.0 149,392 ≥ 6.5 Burke & Herbert Bank & Trust 411,251 17.89 160,912 ≥ 7.0 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 182,007 ≥ 5.0 Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 5.0	The following table presents the actual and required capital amounts and ratios for the Company and the Bank at June 30, 2023, and December 31, 2022 (in thousands except for ratios). Actual Minimum Required for Capital Adequacy Purposes (includes applicable Capital Conservation Buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of June 30, 2023 Total Capital to risk weighted assets Consolidated $ 442,338 18.71 % $ 248,273 ≥ 10.5% $ 236,450 ≥ 10.0% Burke & Herbert Bank & Trust 439,212 18.57 248,365 ≥ 10.5 236,538 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 416,249 17.60 200,983 ≥ 8.5 189,160 ≥ 8.0 Burke & Herbert Bank & Trust 413,123 17.47 201,057 ≥ 8.5 189,230 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 416,249 17.60 165,515 ≥ 7.0 153,693 ≥ 6.5 Burke & Herbert Bank & Trust 413,123 17.47 165,576 ≥ 7.0 153,750 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 416,249 11.20 148,725 ≥ 4.0 185,906 ≥ 5.0 Burke & Herbert Bank & Trust 413,123 11.11 148,770 ≥ 4.0 185,962 ≥ 5.0 As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 241,325 ≥ 10.5% $ 229,834 ≥ 10.0% Burke & Herbert Bank & Trust 432,290 18.81 241,368 ≥ 10.5 229,874 ≥ 10.0 Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 195,358 ≥ 8.5 186,867 ≥ 8.0 Burke & Herbert Bank & Trust 411,251 17.89 195,393 ≥ 8.5 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 160,883 ≥ 7.0 149,392 ≥ 6.5 Burke & Herbert Bank & Trust 411,251 17.89 160,912 ≥ 7.0 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 182,007 ≥ 5.0 Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 5.0	The table below presents the actual and required capital amounts and ratios for the Company at December 31, 2022 and the Bank at December 31, 2022 and 2021 (in thousands). Actual Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio As of December 31, 2022 Total Capital to risk weighted assets Consolidated $ 433,958 18.88 % $ 183,867 ≥ 8.0% n/a n/a Burke & Herbert Bank & Trust $ 432,290 18.81 % $ 183,900 ≥ 8.0% $ 229,874 ≥ 10.0% Tier 1 (Core) Capital to risk weighted assets Consolidated 412,946 17.97 137,900 ≥ 6.0 n/a n/a Burke & Herbert Bank & Trust 411,251 17.89 137,925 ≥ 6.0 183,900 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Consolidated 412,946 17.97 103,425 ≥ 4.5 n/a n/a Burke & Herbert Bank & Trust 411,251 17.89 103,443 ≥ 4.5 149,418 ≥ 6.5 Tier 1 (Core) Capital to average assets Consolidated 412,946 11.34 145,605 ≥ 4.0 n/a n/a Burke & Herbert Bank & Trust 411,251 11.30 145,605 ≥ 4.0 182,007 ≥ 5.0 As of December 31, 2021 Total Capital to risk weighted assets Burke & Herbert Bank & Trust $ 409,923 18.84 % $ 174,050 ≥ 8.0% $ 217,562 ≥ 10.0% Tier 1 (Core) Capital to risk weighted assets Burke & Herbert Bank & Trust 382,672 17.59 130,537 ≥ 6.0 174,050 ≥ 8.0 Common Tier 1 (CET 1) to risk-weighted assets Burke & Herbert Bank & Trust 382,672 17.59 97,903 ≥ 4.5 141,415 ≥ 6.5 Tier 1 (Core) Capital to average assets Burke & Herbert Bank & Trust 382,672 10.81 141,594 ≥ 4.0 176,992 ≥ 5.0

Derivatives (Tables)

Derivatives (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Consolidated Balance Sheets as of March 31, 2023, and December 31, 2022 (in thousands): March 31, 2023 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 1,866 Interest rate swaps related to fair value hedges Other liabilities 300,000 2,283 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,439 $ 1,045 Interest rate swaps related to customer loans Other liabilities 34,439 1,045 December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Interest rate swaps related to fair value hedges N/A — — Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities 34,674 1,311	The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Consolidated Balance Sheets as of June 30, 2023, and December 31, 2022 (in thousands): June 30, 2023 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 1,836 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 66,709 $ 1,740 Interest rate swaps related to customer loans Other liabilities 66,709 1,740 December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities 34,674 1,311	The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Balance Sheet as of December 31, 2022 and 2021 (in thousands): December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities $ 34,674 $ 1,311 December 31, 2021 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges N/A $ — $ — Derivatives not designated as hedges: Interest rate swaps related to customer loans Other liabilities $ 37,508 $ 1,630 Interest rate swaps related to customer loans Other assets $ 37,508 $ 1,630
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)	The table below presents the effect of cash flow hedge accounting on AOCI for the three months ended March 31, 2023, and March 31, 2022, as follows (in thousands): Derivatives in Cash Flow March 31, 2023 Location of Gain or (Loss) Reclassified from AOCI into Income March 31, 2023 Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ 60 $ 60 $ — Interest Income $ (363) $ (363) $ — Total $ 60 $ 60 $ — $ (363) $ (363) $ — Derivatives in Cash Flow March 31, 2022 Location of Gain or (Loss) Reclassified from AOCI into Income March 31, 2022 Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (636) $ (636) $ — Interest Income $ 75 $ 75 $ — Total $ (636) $ (636) $ — $ 75 $ 75 $ —	The table below presents the effect of cash flow hedge accounting on AOCI for the three months ended June 30, 2023, and June 30, 2022, as follows (in thousands): June 30, 2023 June 30, 2023 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (348) $ (348) $ — Interest Income $ (423) $ (423) $ — Total $ (348) $ (348) $ — $ (423) $ (423) $ — June 30, 2022 June 30, 2022 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (459) $ (459) $ — Interest Income $ 108 $ 108 $ — Total $ (459) $ (459) $ — $ 108 $ 108 $ — The table below presents the effect of cash flow hedge accounting on AOCI for the six months ended June 30, 2023, and June 30, 2022, as follows (in thousands): June 30, 2023 June 30, 2023 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (289) $ (289) $ — Interest Income $ (786) $ (786) $ — Total $ (289) $ (289) $ — $ (786) $ (786) $ — June 30, 2022 June 30, 2022 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (1,095) $ (1,095) $ — Interest Income $ 182 $ 182 $ — Total $ (1,095) $ (1,095) $ — $ 182 $ 182 $ —	The effect of cash flow hedge accounting on accumulated other comprehensive income (“AOCI”) for the years ended December 31, 2022, 2021, and 2020 are as follows (in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in AOCI on Derivative Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income 2022 2021 2020 2022 2021 2020 Interest Rate Products $ (2,178) $ — $ — Interest Income $ (167) $ — $ — Total $ (2,178) $ — $ — $ (167) $ — $ —
Schedule of Derivative Instruments	The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income as of March 31, 2023, and March 31, 2022. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships March 31, 2023 March 31, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (203) $ — $ 75 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items 2,362 — — — Derivatives designated as hedging instruments (2,202) — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (363) — 75 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (363) — 75 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — —	The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the three and six months ended June 30, 2023, and June 30, 2022. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Three months ended June 30, 2023 June 30, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (914) $ — $ 108 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items (3,468) — — — Derivatives designated as hedging instruments 2,977 — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (423) — 108 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (423) — 108 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — — Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Six months ended June 30, 2023 June 30, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (1,117) $ — $ 182 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items (1,106) — — — Derivatives designated as hedging instruments 776 — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (786) — 182 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (786) — 182 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — —	The table below presents the effect of the Company’s derivative financial instruments on the Statements of Income as of December 31, 2022. Prior to 2022, the Company did not have derivatives designated as hedges. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships December 31, 2022 December 31, 2021 December 31, 2020 Interest Income Interest Expense Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (167) $ — $ — $ — $ — $ — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income (167) — — — — — Amount of gain or (loss) reclassified from accumulated other comprehensive income into income as a result that a forecasted transaction is no longer probable of occurring — — — — — —

Derivatives (Tables)_2

Derivatives (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Fair Value Hedging Instruments	As of March 31, 2023, the following amounts were recorded on the balance sheet related to the cumulative basis adjustment for fair value hedges (in thousands): Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Securities available-for-sale, at fair value (1) $ 302,362 $ — $ 2,362 $ — Total $ 302,362 $ — $ 2,362 $ — __________________ (1) These amounts include the amortized cost basis of closed portfolios of AFS securities used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At March 31, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $302.4 million; the cumulative basis adjustments associated with these hedging relationships was $2.4 million; and the amounts of the designated hedged items were $300.0 million.	As of June 30, 2023, the following amounts were recorded on the balance sheet related to the cumulative basis adjustment for fair value hedges (in thousands): Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 (2) Securities available-for-sale, at fair value (1) $ 298,853 $ — $ (1,106) $ — Total $ 298,853 $ — $ (1,106) $ — __________________ (1) These amounts include the amortized cost basis of closed portfolios of AFS securities used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At June 30, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $298.9 million and the cumulative basis adjustments associated with these hedging relationships was $1.1 million.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Consolidated Balance Sheets as of March 31, 2023, and December 31, 2022 (in thousands): March 31, 2023 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 1,866 Interest rate swaps related to fair value hedges Other liabilities 300,000 2,283 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,439 $ 1,045 Interest rate swaps related to customer loans Other liabilities 34,439 1,045 December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Interest rate swaps related to fair value hedges N/A — — Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities 34,674 1,311	The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Consolidated Balance Sheets as of June 30, 2023, and December 31, 2022 (in thousands): June 30, 2023 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 1,836 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 66,709 $ 1,740 Interest rate swaps related to customer loans Other liabilities 66,709 1,740 December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities 34,674 1,311	The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Balance Sheet as of December 31, 2022 and 2021 (in thousands): December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities $ 34,674 $ 1,311 December 31, 2021 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges N/A $ — $ — Derivatives not designated as hedges: Interest rate swaps related to customer loans Other liabilities $ 37,508 $ 1,630 Interest rate swaps related to customer loans Other assets $ 37,508 $ 1,630
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)	The table below presents the effect of cash flow hedge accounting on AOCI for the three months ended March 31, 2023, and March 31, 2022, as follows (in thousands): Derivatives in Cash Flow March 31, 2023 Location of Gain or (Loss) Reclassified from AOCI into Income March 31, 2023 Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ 60 $ 60 $ — Interest Income $ (363) $ (363) $ — Total $ 60 $ 60 $ — $ (363) $ (363) $ — Derivatives in Cash Flow March 31, 2022 Location of Gain or (Loss) Reclassified from AOCI into Income March 31, 2022 Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (636) $ (636) $ — Interest Income $ 75 $ 75 $ — Total $ (636) $ (636) $ — $ 75 $ 75 $ —	The table below presents the effect of cash flow hedge accounting on AOCI for the three months ended June 30, 2023, and June 30, 2022, as follows (in thousands): June 30, 2023 June 30, 2023 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (348) $ (348) $ — Interest Income $ (423) $ (423) $ — Total $ (348) $ (348) $ — $ (423) $ (423) $ — June 30, 2022 June 30, 2022 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (459) $ (459) $ — Interest Income $ 108 $ 108 $ — Total $ (459) $ (459) $ — $ 108 $ 108 $ — The table below presents the effect of cash flow hedge accounting on AOCI for the six months ended June 30, 2023, and June 30, 2022, as follows (in thousands): June 30, 2023 June 30, 2023 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (289) $ (289) $ — Interest Income $ (786) $ (786) $ — Total $ (289) $ (289) $ — $ (786) $ (786) $ — June 30, 2022 June 30, 2022 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (1,095) $ (1,095) $ — Interest Income $ 182 $ 182 $ — Total $ (1,095) $ (1,095) $ — $ 182 $ 182 $ —	The effect of cash flow hedge accounting on accumulated other comprehensive income (“AOCI”) for the years ended December 31, 2022, 2021, and 2020 are as follows (in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in AOCI on Derivative Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income 2022 2021 2020 2022 2021 2020 Interest Rate Products $ (2,178) $ — $ — Interest Income $ (167) $ — $ — Total $ (2,178) $ — $ — $ (167) $ — $ —
Schedule of Derivative Instruments	The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income as of March 31, 2023, and March 31, 2022. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships March 31, 2023 March 31, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (203) $ — $ 75 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items 2,362 — — — Derivatives designated as hedging instruments (2,202) — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (363) — 75 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (363) — 75 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — —	The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the three and six months ended June 30, 2023, and June 30, 2022. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Three months ended June 30, 2023 June 30, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (914) $ — $ 108 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items (3,468) — — — Derivatives designated as hedging instruments 2,977 — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (423) — 108 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (423) — 108 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — — Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Six months ended June 30, 2023 June 30, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (1,117) $ — $ 182 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items (1,106) — — — Derivatives designated as hedging instruments 776 — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (786) — 182 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (786) — 182 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — —	The table below presents the effect of the Company’s derivative financial instruments on the Statements of Income as of December 31, 2022. Prior to 2022, the Company did not have derivatives designated as hedges. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships December 31, 2022 December 31, 2021 December 31, 2020 Interest Income Interest Expense Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (167) $ — $ — $ — $ — $ — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income (167) — — — — — Amount of gain or (loss) reclassified from accumulated other comprehensive income into income as a result that a forecasted transaction is no longer probable of occurring — — — — — —

Derivatives (Tables)_2_3

Derivatives (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Fair Value Hedging Instruments	As of March 31, 2023, the following amounts were recorded on the balance sheet related to the cumulative basis adjustment for fair value hedges (in thousands): Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 Securities available-for-sale, at fair value (1) $ 302,362 $ — $ 2,362 $ — Total $ 302,362 $ — $ 2,362 $ — __________________ (1) These amounts include the amortized cost basis of closed portfolios of AFS securities used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At March 31, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $302.4 million; the cumulative basis adjustments associated with these hedging relationships was $2.4 million; and the amounts of the designated hedged items were $300.0 million.	As of June 30, 2023, the following amounts were recorded on the balance sheet related to the cumulative basis adjustment for fair value hedges (in thousands): Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 (2) Securities available-for-sale, at fair value (1) $ 298,853 $ — $ (1,106) $ — Total $ 298,853 $ — $ (1,106) $ — __________________ (1) These amounts include the amortized cost basis of closed portfolios of AFS securities used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At June 30, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $298.9 million and the cumulative basis adjustments associated with these hedging relationships was $1.1 million.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Consolidated Balance Sheets as of March 31, 2023, and December 31, 2022 (in thousands): March 31, 2023 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 1,866 Interest rate swaps related to fair value hedges Other liabilities 300,000 2,283 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,439 $ 1,045 Interest rate swaps related to customer loans Other liabilities 34,439 1,045 December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Interest rate swaps related to fair value hedges N/A — — Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities 34,674 1,311	The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Consolidated Balance Sheets as of June 30, 2023, and December 31, 2022 (in thousands): June 30, 2023 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 1,836 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 66,709 $ 1,740 Interest rate swaps related to customer loans Other liabilities 66,709 1,740 December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities 34,674 1,311	The table below presents the fair value of the Company’s derivative financial instruments, which includes accrued interest, as well as their classification on the Balance Sheet as of December 31, 2022 and 2021 (in thousands): December 31, 2022 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges Other liabilities $ 50,000 $ 2,254 Derivatives not designated as hedges: Interest rate swaps related to customer loans Other assets $ 34,674 $ 1,311 Interest rate swaps related to customer loans Other liabilities $ 34,674 $ 1,311 December 31, 2021 Balance Sheet Location Notional Amount Fair Value Derivatives designated as hedges: Interest rate swaps related to cash flow hedges N/A $ — $ — Derivatives not designated as hedges: Interest rate swaps related to customer loans Other liabilities $ 37,508 $ 1,630 Interest rate swaps related to customer loans Other assets $ 37,508 $ 1,630
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)	The table below presents the effect of cash flow hedge accounting on AOCI for the three months ended March 31, 2023, and March 31, 2022, as follows (in thousands): Derivatives in Cash Flow March 31, 2023 Location of Gain or (Loss) Reclassified from AOCI into Income March 31, 2023 Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ 60 $ 60 $ — Interest Income $ (363) $ (363) $ — Total $ 60 $ 60 $ — $ (363) $ (363) $ — Derivatives in Cash Flow March 31, 2022 Location of Gain or (Loss) Reclassified from AOCI into Income March 31, 2022 Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (636) $ (636) $ — Interest Income $ 75 $ 75 $ — Total $ (636) $ (636) $ — $ 75 $ 75 $ —	The table below presents the effect of cash flow hedge accounting on AOCI for the three months ended June 30, 2023, and June 30, 2022, as follows (in thousands): June 30, 2023 June 30, 2023 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (348) $ (348) $ — Interest Income $ (423) $ (423) $ — Total $ (348) $ (348) $ — $ (423) $ (423) $ — June 30, 2022 June 30, 2022 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (459) $ (459) $ — Interest Income $ 108 $ 108 $ — Total $ (459) $ (459) $ — $ 108 $ 108 $ — The table below presents the effect of cash flow hedge accounting on AOCI for the six months ended June 30, 2023, and June 30, 2022, as follows (in thousands): June 30, 2023 June 30, 2023 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (289) $ (289) $ — Interest Income $ (786) $ (786) $ — Total $ (289) $ (289) $ — $ (786) $ (786) $ — June 30, 2022 June 30, 2022 Derivatives in Cash Flow Amount of Gain or (Loss) Recognized in OCI on Derivative Amount of Gain or (Loss) Recognized in OCI Included Component Amount of Gain or (Loss) Recognized in OCI Excluded Component Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income Included Component Amount of Gain or (Loss) Reclassified from AOCI into Income Excluded Component Interest Rate Products $ (1,095) $ (1,095) $ — Interest Income $ 182 $ 182 $ — Total $ (1,095) $ (1,095) $ — $ 182 $ 182 $ —	The effect of cash flow hedge accounting on accumulated other comprehensive income (“AOCI”) for the years ended December 31, 2022, 2021, and 2020 are as follows (in thousands): Derivatives in Cash Flow Hedging Relationships Amount of Gain or (Loss) Recognized in AOCI on Derivative Location of Gain or (Loss) Reclassified from AOCI into Income Amount of Gain or (Loss) Reclassified from AOCI into Income 2022 2021 2020 2022 2021 2020 Interest Rate Products $ (2,178) $ — $ — Interest Income $ (167) $ — $ — Total $ (2,178) $ — $ — $ (167) $ — $ —
Schedule of Derivative Instruments	The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income as of March 31, 2023, and March 31, 2022. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships March 31, 2023 March 31, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (203) $ — $ 75 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items 2,362 — — — Derivatives designated as hedging instruments (2,202) — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (363) — 75 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (363) — 75 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — —	The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income for the three and six months ended June 30, 2023, and June 30, 2022. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Three months ended June 30, 2023 June 30, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (914) $ — $ 108 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items (3,468) — — — Derivatives designated as hedging instruments 2,977 — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (423) — 108 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (423) — 108 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — — Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Six months ended June 30, 2023 June 30, 2022 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (1,117) $ — $ 182 $ — The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20 Interest contracts Hedged items (1,106) — — — Derivatives designated as hedging instruments 776 — — — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from AOCI into income (786) — 182 — Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring — — — — Amount of gain or (loss) reclassified from AOCI into income - included component (786) — 182 — Amount of gain or (loss) reclassified from AOCI into income - excluded component — — — —	The table below presents the effect of the Company’s derivative financial instruments on the Statements of Income as of December 31, 2022. Prior to 2022, the Company did not have derivatives designated as hedges. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships December 31, 2022 December 31, 2021 December 31, 2020 Interest Income Interest Expense Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded. $ (167) $ — $ — $ — $ — $ — Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income (167) — — — — — Amount of gain or (loss) reclassified from accumulated other comprehensive income into income as a result that a forecasted transaction is no longer probable of occurring — — — — — —

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of Fair Value, off-Balance-Sheet Risks	A summary of the contractual amounts of the Company’s financial instruments outstanding at March 31, 2023, and December 31, 2022, is as follows (in thousands): March 31, 2023 December 31, 2022 Commitments to extend credit $ 277,463 $ 291,265 Commercial letters of credit 8,525 8,539	A summary of the contractual amounts of the Company’s financial instruments outstanding at June 30, 2023, and December 31, 2022, is as follows (in thousands): June 30, 2023 December 31, 2022 Commitments to extend credit $ 247,319 $ 291,265 Commercial letters of credit 9,992 8,539	A summary of the contractual amounts of the Company’s financial instruments outstanding at December 31, 2022 and 2021, is as follows (in thousands): 2022 2021 Commitments to extend credit $ — $ — Commercial letters of credit 8,539 7,660 Undisbursed balance - revolving lines of credit 291,265 240,179

Commitments and Contingencies_3

Commitments and Contingencies (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of Fair Value, off-Balance-Sheet Risks	A summary of the contractual amounts of the Company’s financial instruments outstanding at March 31, 2023, and December 31, 2022, is as follows (in thousands): March 31, 2023 December 31, 2022 Commitments to extend credit $ 277,463 $ 291,265 Commercial letters of credit 8,525 8,539	A summary of the contractual amounts of the Company’s financial instruments outstanding at June 30, 2023, and December 31, 2022, is as follows (in thousands): June 30, 2023 December 31, 2022 Commitments to extend credit $ 247,319 $ 291,265 Commercial letters of credit 9,992 8,539	A summary of the contractual amounts of the Company’s financial instruments outstanding at December 31, 2022 and 2021, is as follows (in thousands): 2022 2021 Commitments to extend credit $ — $ — Commercial letters of credit 8,539 7,660 Undisbursed balance - revolving lines of credit 291,265 240,179

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Schedule of Fair Value, off-Balance-Sheet Risks	A summary of the contractual amounts of the Company’s financial instruments outstanding at March 31, 2023, and December 31, 2022, is as follows (in thousands): March 31, 2023 December 31, 2022 Commitments to extend credit $ 277,463 $ 291,265 Commercial letters of credit 8,525 8,539	A summary of the contractual amounts of the Company’s financial instruments outstanding at June 30, 2023, and December 31, 2022, is as follows (in thousands): June 30, 2023 December 31, 2022 Commitments to extend credit $ 247,319 $ 291,265 Commercial letters of credit 9,992 8,539	A summary of the contractual amounts of the Company’s financial instruments outstanding at December 31, 2022 and 2021, is as follows (in thousands): 2022 2021 Commitments to extend credit $ — $ — Commercial letters of credit 8,539 7,660 Undisbursed balance - revolving lines of credit 291,265 240,179

Transactions with Related Par_2

Transactions with Related Parties (Tables)	12 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
Schedule of Aggregate Loan Balances with Related Parties	Aggregate loan balances with related parties were as follows (in thousands): 2022 Balance, beginning $ 73,726 New loans 28,598 Repayments (5,927) Balance, ending $ 96,397

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at March 31, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 178,419 $ — $ — $ 178,419 Obligations of states and municipalities — 468,362 — 468,362 Residential mortgage backed - agency — 52,670 — 52,670 Residential mortgage backed - non-agency — 321,150 — 321,150 Commercial mortgage backed - agency — 57,832 — 57,832 Commercial mortgage backed - non-agency — 183,225 — 183,225 Asset-backed — 92,599 — 92,599 Other — 8,528 — 8,528 Total investment securities available-for-sale $ 178,419 $ 1,184,366 $ — $ 1,362,785 Loans held-for-sale, at fair value $ — $ 360 $ — $ 360 Derivatives $ — $ 1,045 $ — $ 1,045 Financial liabilities Derivatives $ — $ 5,194 $ — $ 5,194 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of states and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset-backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held-for-sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565	Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at June 30, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 175,397 $ — $ — $ 175,397 Obligations of states and municipalities — 455,862 — 455,862 Residential mortgage backed - agency — 41,990 — 41,990 Residential mortgage backed - non-agency — 296,104 — 296,104 Commercial mortgage backed - agency — 36,086 — 36,086 Commercial mortgage backed - non-agency — 164,307 — 164,307 Asset-backed — 74,479 — 74,479 Other — 7,965 — 7,965 Total investment securities available-for-sale $ 175,397 $ 1,076,793 $ — $ 1,252,190 Loans held-for-sale, at fair value $ — $ 456 $ — $ 456 Derivatives $ — $ 1,740 $ — $ 1,740 Financial liabilities Derivatives $ — $ 3,576 $ — $ 3,576 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of states and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset-backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held-for-sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565	Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of state and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held for sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565 Fair Value Measurements at December 31, 2021 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 169,382 $ 15,059 $ — $ 184,441 Obligations of state and municipalities — 665,567 — 665,567 Residential mortgage backed - agency — 62,787 — 62,787 Residential mortgage backed - non-agency — 244,308 — 244,308 Commercial mortgage backed - agency — 78,883 — 78,883 Commercial mortgage backed - non-agency — 172,204 — 172,204 Asset backed — 195,525 — 195,525 Other — 1,966 — 1,966 Total investment securities available-for-sale $ 169,382 $ 1,436,299 $ — $ 1,605,681 Loans held for sale, at fair value $ — $ 1,249 $ — $ 1,249 Derivatives $ — $ 1,603 $ — $ 1,603 . Financial liabilities Derivatives $ — $ 1,589 $ — $ 1,589
Fair Value Measurements, Nonrecurring	Assets that were measured at fair value on a nonrecurring basis during the period are summarized below (in thousands): Fair Value Measurements at March 31, 2023 Using: : Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually Evaluated Loans: Commercial Real Estate $ — $ — $ 318 $ 318 Owner-occupied commercial real estate — — 1,371 1,371 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,242 2,242 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually Evaluated Loans: Commercial Real Estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — —	Assets that were measured at fair value on a non-recurring basis during the period are summarized below (in thousands): Fair Value Measurements at June 30, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually evaluated loans: Commercial real estate $ — $ — $ 308 $ 308 Owner-occupied commercial real estate — — 1,354 1,354 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,221 2,221 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually evaluated loans: Commercial real estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — —	Assets that were measured at fair value on a nonrecurring basis during the period are summarized below (in thousands): Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Impaired Loans: Commercial Real Estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2021 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Impaired Loans: Commercial Real Estate $ — $ — $ 12,552 $ 12,552 Owner-occupied commercial real estate — — 502 502 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,052 2,052 Consumer non-real estate and other — — — — Other real estate owned — — — —
Fair Value Measurement Inputs and Valuation Techniques	The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at March 31, 2023, and December 31, 2022 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average March 31, 2023 Impaired loans $ 3,931 Discounted cash flow analysis Market rate for borrower 3.6% - 8.5% 5.0% December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% - 6.0% 5.2%	The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at June 30, 2023, and December 31, 2022 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average June 30, 2023 Impaired loans $ 3,883 Discounted cash flow analysis Market rate for borrower 3.6% - 8.5% 5.0% December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% - 6.0% 5.2%	The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at December 31, 2022 and 2021 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% -6% 5.2% December 31, 2021 Impaired loans $ 15,106 Discounted appraised value 7% -9% 8.0% Discounted cash flow analysis Market rate for borrower 4% - 6% 5.4%
Fair Value Disclosure of Asset and Liability Not Measured at Fair Value	The carrying amounts and estimated fair values of financial instruments not carried at fair value, at March 31, 2023, and December 31, 2022, were as follows (in thousands): Fair Value Measurements at March 31, 2023 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 10,616 $ 10,616 $ — $ — $ 10,616 Interest-bearing deposits with banks 106,323 106,323 — — 106,323 Loans, net 1,926,034 — — 1,813,068 1,813,068 Accrued interest 15,158 — 15,158 — 15,158 Financial liabilities Non-interest, bearing $ 906,723 $ — $ 906,723 $ — $ 906,723 Interest bearing 2,125,668 — 2,118,085 — 2,118,085 Other borrowed funds 321,700 — 321,667 — 321,667 Accrued interest 2,763 — 2,763 — 2,763 Fair Value Measurements at December 31, 2022 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial liabilities Non-interest, bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452	The carrying amounts and estimated fair values of financial instruments not carried at fair value, at June 30, 2023, and December 31, 2022, were as follows (in thousands): Fair Value Measurements at June 30, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying Amount (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,047 $ 9,047 $ — $ — $ 9,047 Interest-earning deposits with banks 71,752 71,752 — — 71,752 Loans, net 1,975,050 — — 1,834,415 1,834,415 Accrued interest 14,781 — 14,781 — 14,781 Financial Liabilities Non-interest-bearing $ 876,396 $ — $ 876,396 $ — $ 876,396 Interest-bearing 2,128,867 — 2,119,927 — 2,119,927 Other borrowed funds 249,000 — 248,997 — 248,997 Accrued interest 3,832 — 3,832 — 3,832 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying Amount (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial Liabilities Non-interest-bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest-bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452	The carrying amounts and estimated fair values of financial instruments not carried at fair value, at December 31, 2022 and 2021 were as follows (in thousands): Fair Value Measurements at December 31, 2022 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial liabilities Non-interest-bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest-bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452 Fair Value Measurements at December 31, 2021 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 8,989 $ 8,989 $ — $ — $ 8,989 Interest-bearing deposits with banks 68,374 68,374 — — 68,374 Loans, net 1,713,364 — — 1,697,752 1,697,752 Accrued interest 15,253 — 15,253 — 15,253 Financial liabilities Non-interest-bearing $ 930,847 $ — $ 930,847 $ — $ 930,847 Interest-bearing 2,002,570 — 2,002,089 — 2,002,089 Other borrowed funds 275,000 — 274,999 — 274,999 Accrued interest 309 — 309 — 309

Fair Value Measurements (Tabl_2

Fair Value Measurements (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at March 31, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 178,419 $ — $ — $ 178,419 Obligations of states and municipalities — 468,362 — 468,362 Residential mortgage backed - agency — 52,670 — 52,670 Residential mortgage backed - non-agency — 321,150 — 321,150 Commercial mortgage backed - agency — 57,832 — 57,832 Commercial mortgage backed - non-agency — 183,225 — 183,225 Asset-backed — 92,599 — 92,599 Other — 8,528 — 8,528 Total investment securities available-for-sale $ 178,419 $ 1,184,366 $ — $ 1,362,785 Loans held-for-sale, at fair value $ — $ 360 $ — $ 360 Derivatives $ — $ 1,045 $ — $ 1,045 Financial liabilities Derivatives $ — $ 5,194 $ — $ 5,194 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of states and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset-backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held-for-sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565	Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at June 30, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 175,397 $ — $ — $ 175,397 Obligations of states and municipalities — 455,862 — 455,862 Residential mortgage backed - agency — 41,990 — 41,990 Residential mortgage backed - non-agency — 296,104 — 296,104 Commercial mortgage backed - agency — 36,086 — 36,086 Commercial mortgage backed - non-agency — 164,307 — 164,307 Asset-backed — 74,479 — 74,479 Other — 7,965 — 7,965 Total investment securities available-for-sale $ 175,397 $ 1,076,793 $ — $ 1,252,190 Loans held-for-sale, at fair value $ — $ 456 $ — $ 456 Derivatives $ — $ 1,740 $ — $ 1,740 Financial liabilities Derivatives $ — $ 3,576 $ — $ 3,576 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of states and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset-backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held-for-sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565	Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of state and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held for sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565 Fair Value Measurements at December 31, 2021 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 169,382 $ 15,059 $ — $ 184,441 Obligations of state and municipalities — 665,567 — 665,567 Residential mortgage backed - agency — 62,787 — 62,787 Residential mortgage backed - non-agency — 244,308 — 244,308 Commercial mortgage backed - agency — 78,883 — 78,883 Commercial mortgage backed - non-agency — 172,204 — 172,204 Asset backed — 195,525 — 195,525 Other — 1,966 — 1,966 Total investment securities available-for-sale $ 169,382 $ 1,436,299 $ — $ 1,605,681 Loans held for sale, at fair value $ — $ 1,249 $ — $ 1,249 Derivatives $ — $ 1,603 $ — $ 1,603 . Financial liabilities Derivatives $ — $ 1,589 $ — $ 1,589
Fair Value Measurements, Nonrecurring	Assets that were measured at fair value on a nonrecurring basis during the period are summarized below (in thousands): Fair Value Measurements at March 31, 2023 Using: : Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually Evaluated Loans: Commercial Real Estate $ — $ — $ 318 $ 318 Owner-occupied commercial real estate — — 1,371 1,371 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,242 2,242 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually Evaluated Loans: Commercial Real Estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — —	Assets that were measured at fair value on a non-recurring basis during the period are summarized below (in thousands): Fair Value Measurements at June 30, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually evaluated loans: Commercial real estate $ — $ — $ 308 $ 308 Owner-occupied commercial real estate — — 1,354 1,354 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,221 2,221 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually evaluated loans: Commercial real estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — —	Assets that were measured at fair value on a nonrecurring basis during the period are summarized below (in thousands): Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Impaired Loans: Commercial Real Estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2021 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Impaired Loans: Commercial Real Estate $ — $ — $ 12,552 $ 12,552 Owner-occupied commercial real estate — — 502 502 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,052 2,052 Consumer non-real estate and other — — — — Other real estate owned — — — —
Fair Value Measurement Inputs and Valuation Techniques	The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at March 31, 2023, and December 31, 2022 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average March 31, 2023 Impaired loans $ 3,931 Discounted cash flow analysis Market rate for borrower 3.6% - 8.5% 5.0% December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% - 6.0% 5.2%	The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at June 30, 2023, and December 31, 2022 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average June 30, 2023 Impaired loans $ 3,883 Discounted cash flow analysis Market rate for borrower 3.6% - 8.5% 5.0% December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% - 6.0% 5.2%	The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at December 31, 2022 and 2021 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% -6% 5.2% December 31, 2021 Impaired loans $ 15,106 Discounted appraised value 7% -9% 8.0% Discounted cash flow analysis Market rate for borrower 4% - 6% 5.4%
Fair Value Disclosure of Asset and Liability Not Measured at Fair Value	The carrying amounts and estimated fair values of financial instruments not carried at fair value, at March 31, 2023, and December 31, 2022, were as follows (in thousands): Fair Value Measurements at March 31, 2023 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 10,616 $ 10,616 $ — $ — $ 10,616 Interest-bearing deposits with banks 106,323 106,323 — — 106,323 Loans, net 1,926,034 — — 1,813,068 1,813,068 Accrued interest 15,158 — 15,158 — 15,158 Financial liabilities Non-interest, bearing $ 906,723 $ — $ 906,723 $ — $ 906,723 Interest bearing 2,125,668 — 2,118,085 — 2,118,085 Other borrowed funds 321,700 — 321,667 — 321,667 Accrued interest 2,763 — 2,763 — 2,763 Fair Value Measurements at December 31, 2022 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial liabilities Non-interest, bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452	The carrying amounts and estimated fair values of financial instruments not carried at fair value, at June 30, 2023, and December 31, 2022, were as follows (in thousands): Fair Value Measurements at June 30, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying Amount (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,047 $ 9,047 $ — $ — $ 9,047 Interest-earning deposits with banks 71,752 71,752 — — 71,752 Loans, net 1,975,050 — — 1,834,415 1,834,415 Accrued interest 14,781 — 14,781 — 14,781 Financial Liabilities Non-interest-bearing $ 876,396 $ — $ 876,396 $ — $ 876,396 Interest-bearing 2,128,867 — 2,119,927 — 2,119,927 Other borrowed funds 249,000 — 248,997 — 248,997 Accrued interest 3,832 — 3,832 — 3,832 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying Amount (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial Liabilities Non-interest-bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest-bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452	The carrying amounts and estimated fair values of financial instruments not carried at fair value, at December 31, 2022 and 2021 were as follows (in thousands): Fair Value Measurements at December 31, 2022 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial liabilities Non-interest-bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest-bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452 Fair Value Measurements at December 31, 2021 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 8,989 $ 8,989 $ — $ — $ 8,989 Interest-bearing deposits with banks 68,374 68,374 — — 68,374 Loans, net 1,713,364 — — 1,697,752 1,697,752 Accrued interest 15,253 — 15,253 — 15,253 Financial liabilities Non-interest-bearing $ 930,847 $ — $ 930,847 $ — $ 930,847 Interest-bearing 2,002,570 — 2,002,089 — 2,002,089 Other borrowed funds 275,000 — 274,999 — 274,999 Accrued interest 309 — 309 — 309

Fair Value Measurements (Tabl_3

Fair Value Measurements (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at March 31, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 178,419 $ — $ — $ 178,419 Obligations of states and municipalities — 468,362 — 468,362 Residential mortgage backed - agency — 52,670 — 52,670 Residential mortgage backed - non-agency — 321,150 — 321,150 Commercial mortgage backed - agency — 57,832 — 57,832 Commercial mortgage backed - non-agency — 183,225 — 183,225 Asset-backed — 92,599 — 92,599 Other — 8,528 — 8,528 Total investment securities available-for-sale $ 178,419 $ 1,184,366 $ — $ 1,362,785 Loans held-for-sale, at fair value $ — $ 360 $ — $ 360 Derivatives $ — $ 1,045 $ — $ 1,045 Financial liabilities Derivatives $ — $ 5,194 $ — $ 5,194 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of states and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset-backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held-for-sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565	Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at June 30, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 175,397 $ — $ — $ 175,397 Obligations of states and municipalities — 455,862 — 455,862 Residential mortgage backed - agency — 41,990 — 41,990 Residential mortgage backed - non-agency — 296,104 — 296,104 Commercial mortgage backed - agency — 36,086 — 36,086 Commercial mortgage backed - non-agency — 164,307 — 164,307 Asset-backed — 74,479 — 74,479 Other — 7,965 — 7,965 Total investment securities available-for-sale $ 175,397 $ 1,076,793 $ — $ 1,252,190 Loans held-for-sale, at fair value $ — $ 456 $ — $ 456 Derivatives $ — $ 1,740 $ — $ 1,740 Financial liabilities Derivatives $ — $ 3,576 $ — $ 3,576 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of states and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset-backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held-for-sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565	Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 174,993 $ — $ — $ 174,993 Obligations of state and municipalities — 453,907 — 453,907 Residential mortgage backed - agency — 53,061 — 53,061 Residential mortgage backed - non-agency — 339,295 — 339,295 Commercial mortgage backed - agency — 59,933 — 59,933 Commercial mortgage backed - non-agency — 183,299 — 183,299 Asset backed — 98,626 — 98,626 Other — 8,643 — 8,643 Total investment securities available-for-sale $ 174,993 $ 1,196,764 $ — $ 1,371,757 Loans held for sale, at fair value $ — $ — $ — $ — Derivatives $ — $ 1,311 $ — $ 1,311 Financial liabilities Derivatives $ — $ 3,565 $ — $ 3,565 Fair Value Measurements at December 31, 2021 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial assets Investment Securities U.S. Treasuries and government agencies $ 169,382 $ 15,059 $ — $ 184,441 Obligations of state and municipalities — 665,567 — 665,567 Residential mortgage backed - agency — 62,787 — 62,787 Residential mortgage backed - non-agency — 244,308 — 244,308 Commercial mortgage backed - agency — 78,883 — 78,883 Commercial mortgage backed - non-agency — 172,204 — 172,204 Asset backed — 195,525 — 195,525 Other — 1,966 — 1,966 Total investment securities available-for-sale $ 169,382 $ 1,436,299 $ — $ 1,605,681 Loans held for sale, at fair value $ — $ 1,249 $ — $ 1,249 Derivatives $ — $ 1,603 $ — $ 1,603 . Financial liabilities Derivatives $ — $ 1,589 $ — $ 1,589
Fair Value Measurements, Nonrecurring	Assets that were measured at fair value on a nonrecurring basis during the period are summarized below (in thousands): Fair Value Measurements at March 31, 2023 Using: : Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually Evaluated Loans: Commercial Real Estate $ — $ — $ 318 $ 318 Owner-occupied commercial real estate — — 1,371 1,371 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,242 2,242 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually Evaluated Loans: Commercial Real Estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — —	Assets that were measured at fair value on a non-recurring basis during the period are summarized below (in thousands): Fair Value Measurements at June 30, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually evaluated loans: Commercial real estate $ — $ — $ 308 $ 308 Owner-occupied commercial real estate — — 1,354 1,354 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,221 2,221 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Individually evaluated loans: Commercial real estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — —	Assets that were measured at fair value on a nonrecurring basis during the period are summarized below (in thousands): Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Impaired Loans: Commercial Real Estate $ — $ — $ 290 $ 290 Owner-occupied commercial real estate — — 1,295 1,295 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 911 911 Consumer non-real estate and other — — — — Other real estate owned — — — — Fair Value Measurements at December 31, 2021 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Impaired Loans: Commercial Real Estate $ — $ — $ 12,552 $ 12,552 Owner-occupied commercial real estate — — 502 502 Acquisition, construction & development — — — — Commercial & industrial — — — — Single family residential — — 2,052 2,052 Consumer non-real estate and other — — — — Other real estate owned — — — —
Fair Value Measurement Inputs and Valuation Techniques	The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at March 31, 2023, and December 31, 2022 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average March 31, 2023 Impaired loans $ 3,931 Discounted cash flow analysis Market rate for borrower 3.6% - 8.5% 5.0% December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% - 6.0% 5.2%	The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at June 30, 2023, and December 31, 2022 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average June 30, 2023 Impaired loans $ 3,883 Discounted cash flow analysis Market rate for borrower 3.6% - 8.5% 5.0% December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% - 6.0% 5.2%	The following table presents quantitative information about Level 3 Fair Value Measurements for assets measured at fair value on a non-recurring basis at December 31, 2022 and 2021 (in thousands except for percentages): Description Fair Value Valuation Techniques Unobservable Inputs Range Weighted Average December 31, 2022 Impaired loans $ 2,496 Discounted cash flow analysis Market rate for borrower 4.5% -6% 5.2% December 31, 2021 Impaired loans $ 15,106 Discounted appraised value 7% -9% 8.0% Discounted cash flow analysis Market rate for borrower 4% - 6% 5.4%
Fair Value Disclosure of Asset and Liability Not Measured at Fair Value	The carrying amounts and estimated fair values of financial instruments not carried at fair value, at March 31, 2023, and December 31, 2022, were as follows (in thousands): Fair Value Measurements at March 31, 2023 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 10,616 $ 10,616 $ — $ — $ 10,616 Interest-bearing deposits with banks 106,323 106,323 — — 106,323 Loans, net 1,926,034 — — 1,813,068 1,813,068 Accrued interest 15,158 — 15,158 — 15,158 Financial liabilities Non-interest, bearing $ 906,723 $ — $ 906,723 $ — $ 906,723 Interest bearing 2,125,668 — 2,118,085 — 2,118,085 Other borrowed funds 321,700 — 321,667 — 321,667 Accrued interest 2,763 — 2,763 — 2,763 Fair Value Measurements at December 31, 2022 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial liabilities Non-interest, bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452	The carrying amounts and estimated fair values of financial instruments not carried at fair value, at June 30, 2023, and December 31, 2022, were as follows (in thousands): Fair Value Measurements at June 30, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying Amount (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,047 $ 9,047 $ — $ — $ 9,047 Interest-earning deposits with banks 71,752 71,752 — — 71,752 Loans, net 1,975,050 — — 1,834,415 1,834,415 Accrued interest 14,781 — 14,781 — 14,781 Financial Liabilities Non-interest-bearing $ 876,396 $ — $ 876,396 $ — $ 876,396 Interest-bearing 2,128,867 — 2,119,927 — 2,119,927 Other borrowed funds 249,000 — 248,997 — 248,997 Accrued interest 3,832 — 3,832 — 3,832 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying Amount (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial Liabilities Non-interest-bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest-bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452	The carrying amounts and estimated fair values of financial instruments not carried at fair value, at December 31, 2022 and 2021 were as follows (in thousands): Fair Value Measurements at December 31, 2022 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 9,124 $ 9,124 $ — $ — $ 9,124 Interest-bearing deposits with banks 41,171 41,171 — — 41,171 Loans, net 1,866,182 — — 1,768,903 1,768,903 Accrued interest 15,481 — 15,481 — 15,481 Financial liabilities Non-interest-bearing $ 960,692 $ — $ 960,692 $ — $ 960,692 Interest-bearing 1,959,708 — 1,951,227 — 1,951,227 Other borrowed funds 343,100 — 342,904 — 342,904 Accrued interest 1,452 — 1,452 — 1,452 Fair Value Measurements at December 31, 2021 Using: Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Level 1) (Level 2) (Level 3) Total Financial Assets Cash and due from banks $ 8,989 $ 8,989 $ — $ — $ 8,989 Interest-bearing deposits with banks 68,374 68,374 — — 68,374 Loans, net 1,713,364 — — 1,697,752 1,697,752 Accrued interest 15,253 — 15,253 — 15,253 Financial liabilities Non-interest-bearing $ 930,847 $ — $ 930,847 $ — $ 930,847 Interest-bearing 2,002,570 — 2,002,089 — 2,002,089 Other borrowed funds 275,000 — 274,999 — 274,999 Accrued interest 309 — 309 — 309

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods ending March 31, 2023, and March 31, 2022 (in thousands): March 31, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) Net unrealized gains (losses) 47 17,218 — 17,265 Less: net realized (gains) losses reclassified to earnings 287 (1,866) — (1,579) Net change in pension plan benefits — — — — Ending Balance $ (1,255) $ (115,523) $ (7,031) $ (123,809) March 31, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (503) (63,808) — (64,311) Less: net realized (gains) losses reclassified to earnings (59) (82) — (141) Net change in pension plan benefits — — — — Ending Balance $ (562) $ (50,915) $ (6,020) $ (57,497)	The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the three and six months ended June 30, 2023, and June 30, 2022 (in thousands): Three months ended June 30, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,255) $ (115,523) $ (7,031) $ (123,809) Net unrealized gains (losses) (275) (5,254) — (5,529) Less: net realized (gains) losses reclassified to earnings 334 2,827 — 3,161 Net change in pension plan benefits — — — — Ending Balance $ (1,196) $ (117,950) $ (7,031) $ (126,177) Three months ended June 30, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (562) $ (50,915) $ (6,020) $ (57,497) Net unrealized gains (losses) (362) (46,277) — (46,639) Less: net realized (gains) losses reclassified to earnings (85) — — (85) Net change in pension plan benefits — — — — Ending Balance $ (1,009) $ (97,192) $ (6,020) $ (104,221) Six months ended June 30, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) Net unrealized gains (losses) (228) 11,964 — 11,736 Less: net realized (gains) losses reclassified to earnings 621 961 — 1,582 Net change in pension plan benefits — — — — Ending Balance $ (1,196) $ (117,950) $ (7,031) $ (126,177) Six months ended June 30, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (865) (110,085) — (110,950) Less: net realized (gains) losses reclassified to earnings (144) (82) — (226) Net change in pension plan benefits — — — — Ending Balance $ (1,009) $ (97,192) $ (6,020) $ (104,221)	The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ending December 31, 2022, 2021 and 2020 (in thousands): December 31, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (1,721) (144,209) — (145,930) Less: net realized (gains) losses reclassified to earnings 132 359 — 491 Net change in pension plan benefits — — (1,011) (1,011) Ending Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) December 31, 2021 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 28,905 $ (6,325) $ 22,580 Net unrealized gains (losses) — (15,933) — (15,933) Less: net realized (gains) losses reclassified to earnings — 3 — 3 Net change in pension plan benefits — — 305 305 Ending Balance $ — $ 12,975 $ (6,020) $ 6,955 December 31, 2020 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 7,838 $ (6,412) $ 1,426 Net unrealized gains (losses) — 22,603 — 22,603 Less: net realized (gains) losses reclassified to earnings — (1,536) — (1,536) Net change in pension plan benefits — 87 87 Ending Balance $ — $ 28,905 $ (6,325) $ 22,580
Reclassification out of Accumulated Other Comprehensive Income	The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the periods ending March 31, 2023, and December 31, 2022 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income March 31, 2023 March 31, 2022 Cash flow hedges: Interest rate contracts $ (363) $ 75 Interest income Tax effect 76 (16) Income tax expense (benefit) Net of Tax $ (287) 59 Available-for-sale securities: Realized gains (losses) on securities $ — $ 104 Net gains/(losses) on securities Realized gains (losses) on basis adjustment for fair value hedges 2,362 — Interest income Tax effect (496) (22) Income tax expense (benefit) Net of Tax $ 1,866 $ 82 Total reclassifications, net of tax $ 1,579 $ 141 Net income	The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2023, and June 30, 2022 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Cash flow hedges: Interest rate contracts $ (423) $ 108 $ (786) $ 182 Interest income Tax effect 89 (23) 165 (38) Income tax expense (benefit) Net of tax $ (334) $ 85 $ (621) $ 144 Available-for-sale securities: Realized gains (losses) on securities $ (111) $ — $ (111) $ 104 Net gains/(losses) on securities Realized gains (losses) on basis adjustment for fair value hedges (3,468) — (1,106) — Interest income Tax effect 752 — 256 (22) Income tax expense (benefit) Net of tax $ (2,827) $ — $ (961) $ 82 Total reclassifications, net of tax $ (3,161) $ 85 $ (1,582) $ 226 Net income	The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the years ending December 31, 2022, 2021, and 2020 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income 2022 2021 2020 Cash flow hedges: Interest rate contracts $ (167) $ — $ — Interest income Tax effect 35 — — Income tax expense (benefit) Net of Tax $ (132) $ — $ — Available-for-sale securities: Realized gains (losses) on securities $ (454) $ (4) $ 1,944 Net gains/(losses) on securities Tax effect 95 1 (408) Income tax expense (benefit) Net of Tax $ (359) $ (3) $ 1,536 Defined benefit pension plan: Amortization of actuarial gain / (loss) $ 1,280 $ (386) $ 110 Pension and other employee benefits Tax effect (269) 81 (23) Income tax expense (benefit) Net of Tax $ 1,011 $ (305) $ 87 Total reclassifications, net of tax $ 520 $ (308) $ 1,623 Net income

Accumulated Other Comprehensi_5

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods ending March 31, 2023, and March 31, 2022 (in thousands): March 31, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) Net unrealized gains (losses) 47 17,218 — 17,265 Less: net realized (gains) losses reclassified to earnings 287 (1,866) — (1,579) Net change in pension plan benefits — — — — Ending Balance $ (1,255) $ (115,523) $ (7,031) $ (123,809) March 31, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (503) (63,808) — (64,311) Less: net realized (gains) losses reclassified to earnings (59) (82) — (141) Net change in pension plan benefits — — — — Ending Balance $ (562) $ (50,915) $ (6,020) $ (57,497)	The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the three and six months ended June 30, 2023, and June 30, 2022 (in thousands): Three months ended June 30, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,255) $ (115,523) $ (7,031) $ (123,809) Net unrealized gains (losses) (275) (5,254) — (5,529) Less: net realized (gains) losses reclassified to earnings 334 2,827 — 3,161 Net change in pension plan benefits — — — — Ending Balance $ (1,196) $ (117,950) $ (7,031) $ (126,177) Three months ended June 30, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (562) $ (50,915) $ (6,020) $ (57,497) Net unrealized gains (losses) (362) (46,277) — (46,639) Less: net realized (gains) losses reclassified to earnings (85) — — (85) Net change in pension plan benefits — — — — Ending Balance $ (1,009) $ (97,192) $ (6,020) $ (104,221) Six months ended June 30, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) Net unrealized gains (losses) (228) 11,964 — 11,736 Less: net realized (gains) losses reclassified to earnings 621 961 — 1,582 Net change in pension plan benefits — — — — Ending Balance $ (1,196) $ (117,950) $ (7,031) $ (126,177) Six months ended June 30, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (865) (110,085) — (110,950) Less: net realized (gains) losses reclassified to earnings (144) (82) — (226) Net change in pension plan benefits — — — — Ending Balance $ (1,009) $ (97,192) $ (6,020) $ (104,221)	The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ending December 31, 2022, 2021 and 2020 (in thousands): December 31, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (1,721) (144,209) — (145,930) Less: net realized (gains) losses reclassified to earnings 132 359 — 491 Net change in pension plan benefits — — (1,011) (1,011) Ending Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) December 31, 2021 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 28,905 $ (6,325) $ 22,580 Net unrealized gains (losses) — (15,933) — (15,933) Less: net realized (gains) losses reclassified to earnings — 3 — 3 Net change in pension plan benefits — — 305 305 Ending Balance $ — $ 12,975 $ (6,020) $ 6,955 December 31, 2020 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 7,838 $ (6,412) $ 1,426 Net unrealized gains (losses) — 22,603 — 22,603 Less: net realized (gains) losses reclassified to earnings — (1,536) — (1,536) Net change in pension plan benefits — 87 87 Ending Balance $ — $ 28,905 $ (6,325) $ 22,580
Reclassification out of Accumulated Other Comprehensive Income	The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the periods ending March 31, 2023, and December 31, 2022 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income March 31, 2023 March 31, 2022 Cash flow hedges: Interest rate contracts $ (363) $ 75 Interest income Tax effect 76 (16) Income tax expense (benefit) Net of Tax $ (287) 59 Available-for-sale securities: Realized gains (losses) on securities $ — $ 104 Net gains/(losses) on securities Realized gains (losses) on basis adjustment for fair value hedges 2,362 — Interest income Tax effect (496) (22) Income tax expense (benefit) Net of Tax $ 1,866 $ 82 Total reclassifications, net of tax $ 1,579 $ 141 Net income	The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2023, and June 30, 2022 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Cash flow hedges: Interest rate contracts $ (423) $ 108 $ (786) $ 182 Interest income Tax effect 89 (23) 165 (38) Income tax expense (benefit) Net of tax $ (334) $ 85 $ (621) $ 144 Available-for-sale securities: Realized gains (losses) on securities $ (111) $ — $ (111) $ 104 Net gains/(losses) on securities Realized gains (losses) on basis adjustment for fair value hedges (3,468) — (1,106) — Interest income Tax effect 752 — 256 (22) Income tax expense (benefit) Net of tax $ (2,827) $ — $ (961) $ 82 Total reclassifications, net of tax $ (3,161) $ 85 $ (1,582) $ 226 Net income	The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the years ending December 31, 2022, 2021, and 2020 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income 2022 2021 2020 Cash flow hedges: Interest rate contracts $ (167) $ — $ — Interest income Tax effect 35 — — Income tax expense (benefit) Net of Tax $ (132) $ — $ — Available-for-sale securities: Realized gains (losses) on securities $ (454) $ (4) $ 1,944 Net gains/(losses) on securities Tax effect 95 1 (408) Income tax expense (benefit) Net of Tax $ (359) $ (3) $ 1,536 Defined benefit pension plan: Amortization of actuarial gain / (loss) $ 1,280 $ (386) $ 110 Pension and other employee benefits Tax effect (269) 81 (23) Income tax expense (benefit) Net of Tax $ 1,011 $ (305) $ 87 Total reclassifications, net of tax $ 520 $ (308) $ 1,623 Net income

Accumulated Other Comprehensi_6

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the periods ending March 31, 2023, and March 31, 2022 (in thousands): March 31, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) Net unrealized gains (losses) 47 17,218 — 17,265 Less: net realized (gains) losses reclassified to earnings 287 (1,866) — (1,579) Net change in pension plan benefits — — — — Ending Balance $ (1,255) $ (115,523) $ (7,031) $ (123,809) March 31, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (503) (63,808) — (64,311) Less: net realized (gains) losses reclassified to earnings (59) (82) — (141) Net change in pension plan benefits — — — — Ending Balance $ (562) $ (50,915) $ (6,020) $ (57,497)	The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the three and six months ended June 30, 2023, and June 30, 2022 (in thousands): Three months ended June 30, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,255) $ (115,523) $ (7,031) $ (123,809) Net unrealized gains (losses) (275) (5,254) — (5,529) Less: net realized (gains) losses reclassified to earnings 334 2,827 — 3,161 Net change in pension plan benefits — — — — Ending Balance $ (1,196) $ (117,950) $ (7,031) $ (126,177) Three months ended June 30, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (562) $ (50,915) $ (6,020) $ (57,497) Net unrealized gains (losses) (362) (46,277) — (46,639) Less: net realized (gains) losses reclassified to earnings (85) — — (85) Net change in pension plan benefits — — — — Ending Balance $ (1,009) $ (97,192) $ (6,020) $ (104,221) Six months ended June 30, 2023 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) Net unrealized gains (losses) (228) 11,964 — 11,736 Less: net realized (gains) losses reclassified to earnings 621 961 — 1,582 Net change in pension plan benefits — — — — Ending Balance $ (1,196) $ (117,950) $ (7,031) $ (126,177) Six months ended June 30, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (865) (110,085) — (110,950) Less: net realized (gains) losses reclassified to earnings (144) (82) — (226) Net change in pension plan benefits — — — — Ending Balance $ (1,009) $ (97,192) $ (6,020) $ (104,221)	The following table presents changes in accumulated other comprehensive income (loss) by component, net of tax, for the years ending December 31, 2022, 2021 and 2020 (in thousands): December 31, 2022 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 12,975 $ (6,020) $ 6,955 Net unrealized gains (losses) (1,721) (144,209) — (145,930) Less: net realized (gains) losses reclassified to earnings 132 359 — 491 Net change in pension plan benefits — — (1,011) (1,011) Ending Balance $ (1,589) $ (130,875) $ (7,031) $ (139,495) December 31, 2021 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 28,905 $ (6,325) $ 22,580 Net unrealized gains (losses) — (15,933) — (15,933) Less: net realized (gains) losses reclassified to earnings — 3 — 3 Net change in pension plan benefits — — 305 305 Ending Balance $ — $ 12,975 $ (6,020) $ 6,955 December 31, 2020 Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-for-Sale Securities Defined Benefit Pension Items Accumulated Other Comprehensive Income Beginning Balance $ — $ 7,838 $ (6,412) $ 1,426 Net unrealized gains (losses) — 22,603 — 22,603 Less: net realized (gains) losses reclassified to earnings — (1,536) — (1,536) Net change in pension plan benefits — 87 87 Ending Balance $ — $ 28,905 $ (6,325) $ 22,580
Reclassification out of Accumulated Other Comprehensive Income	The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the periods ending March 31, 2023, and December 31, 2022 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income March 31, 2023 March 31, 2022 Cash flow hedges: Interest rate contracts $ (363) $ 75 Interest income Tax effect 76 (16) Income tax expense (benefit) Net of Tax $ (287) 59 Available-for-sale securities: Realized gains (losses) on securities $ — $ 104 Net gains/(losses) on securities Realized gains (losses) on basis adjustment for fair value hedges 2,362 — Interest income Tax effect (496) (22) Income tax expense (benefit) Net of Tax $ 1,866 $ 82 Total reclassifications, net of tax $ 1,579 $ 141 Net income	The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2023, and June 30, 2022 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income Three months ended Six months ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Cash flow hedges: Interest rate contracts $ (423) $ 108 $ (786) $ 182 Interest income Tax effect 89 (23) 165 (38) Income tax expense (benefit) Net of tax $ (334) $ 85 $ (621) $ 144 Available-for-sale securities: Realized gains (losses) on securities $ (111) $ — $ (111) $ 104 Net gains/(losses) on securities Realized gains (losses) on basis adjustment for fair value hedges (3,468) — (1,106) — Interest income Tax effect 752 — 256 (22) Income tax expense (benefit) Net of tax $ (2,827) $ — $ (961) $ 82 Total reclassifications, net of tax $ (3,161) $ 85 $ (1,582) $ 226 Net income	The following table presents amounts reclassified out of each component of accumulated other comprehensive income (loss) for the years ending December 31, 2022, 2021, and 2020 (in thousands). Details about Accumulated Other Comprehensive Income Components Amount Reclassified From Accumulated Other Comprehensive Income Affected Line Item in the Statements of Income 2022 2021 2020 Cash flow hedges: Interest rate contracts $ (167) $ — $ — Interest income Tax effect 35 — — Income tax expense (benefit) Net of Tax $ (132) $ — $ — Available-for-sale securities: Realized gains (losses) on securities $ (454) $ (4) $ 1,944 Net gains/(losses) on securities Tax effect 95 1 (408) Income tax expense (benefit) Net of Tax $ (359) $ (3) $ 1,536 Defined benefit pension plan: Amortization of actuarial gain / (loss) $ 1,280 $ (386) $ 110 Pension and other employee benefits Tax effect (269) 81 (23) Income tax expense (benefit) Net of Tax $ 1,011 $ (305) $ 87 Total reclassifications, net of tax $ 520 $ (308) $ 1,623 Net income

Parent Company Financial Info_2

Parent Company Financial Information (Tables)	12 Months Ended
	Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract]
Schedule of Condensed Balance Sheet	The following tables summarize condensed financial statements for Burke & Herbert Financial Services Corp. for the periods indicated (in thousands): Parent Company Only Condensed Balance Sheet 2022 Assets Cash $ 2,000 Investment in subsidiary 271,757 Other assets 209 Total Assets $ 273,966 Liabilities Other liabilities $ 513 Total Liabilities 513 Total Shareholders’ Equity 273,453 Total Liabilities and Shareholders’ Equity $ 273,966
Schedule of Condensed Statement of Income	Parent Company Only Condensed Statement of Income 2022 Income Dividends from bank subsidiary $ 5,936 Total Income 5,936 Expense Salaries and employee benefit 426 Other operating expenses 568 Total Expense 994 Income (loss) before income tax benefit and equity in undistributed income of subsidiaries 4,942 Income tax benefit 209 Income (loss) before equity in undistributed income of subsidiaries 5,151 Equity in undistributed earnings of subsidiary 38,862 Net Income $ 44,013
Schedule of Condensed Statement of Cash Flows	Parent Company Only Condensed Statement of Cash Flows 2022 Cash Flows from Operating Activities Net income $ 44,013 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiaries (38,862) Share based compensation 481 Deferred income taxes (105) Net change in other assets 513 Net change in other liabilities (104) Net cash flows provided by operating activities $ 5,936 Cash Flows from Investing Activities — Net cash (used in) provided by investing activities $ — Cash Flows from Financing Activities Dividends paid (3,936) Net cash (used in) financing activities $ (3,936) Increase in cash and cash equivalents $ 2,000 Cash and cash equivalents Beginning of the year $ — End of the year 2,000

Other Operating Expense (Tables

Other Operating Expense (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Other Income and Expenses [Abstract]
Schedule of Other Operating Expense	Other operating expense from the Consolidated Statements of Income for the three months ended March 31, 2023, and March 31, 2022, is as follows (in thousands): Three months ended 2023 2022 FDIC assessment $ 734 $ 702 Historic tax credit amortization 632 632 IT related 491 412 Consultant fees 470 212 Network expense 429 394 Directors' fees 410 245 Audit expense 307 92 Legal expense 305 175 Virginia franchise tax 243 233 Marketing expense 219 317 Other 1,367 1,258 Total $ 5,607 $ 4,672	Other operating expense from the Consolidated Statements of Income for the three and six months ended June 30, 2023, and June 30, 2022, is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 FDIC assessment $ 686 $ 345 $ 1,033 $ 680 Historic tax credit amortization 631 631 1,263 1,263 IT related 466 504 957 916 Consultant fees 508 298 978 510 Network expense 483 418 912 812 Directors' fees 434 792 844 1,037 Audit expense 213 175 520 267 Legal expense 328 412 633 587 Virginia franchise tax 630 600 1,260 1,200 Marketing expense 119 317 338 634 Other 1,520 1,366 2,887 2,624 Total $ 6,018 $ 5,858 $ 11,625 $ 10,530	Other operating expense from the Statements of Income for years ended December 31, 2022, 2021, and 2020 is as follows (in thousands): 2022 2021 2020 Directors' fees $ 1,941 $ 1,093 $ 1,147 Consultant fees 1,708 1,548 1,064 Marketing expense 1,295 1,086 509 Historic tax credit amortization 2,526 2,717 2,718 Virginia franchise tax 2,492 2,366 2,249 (Recapture of) Provision for off-balance sheet exposure — — (1,380) Network expense 1,693 1,592 1,459 FDIC assessment 958 920 460 IT related 1,980 1,306 965 (Gain)/loss on sale of buildings (4,533) (1,063) 7 Legal expense 986 275 369 Audit expense 705 302 220 Other 5,668 5,627 5,963 Total $ 17,419 $ 17,769 $ 15,750

Other Operating Expense (Tabl_2

Other Operating Expense (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Other Income and Expenses [Abstract]
Schedule of Other Operating Cost and Expense, by Component	Other operating expense from the Consolidated Statements of Income for the three months ended March 31, 2023, and March 31, 2022, is as follows (in thousands): Three months ended 2023 2022 FDIC assessment $ 734 $ 702 Historic tax credit amortization 632 632 IT related 491 412 Consultant fees 470 212 Network expense 429 394 Directors' fees 410 245 Audit expense 307 92 Legal expense 305 175 Virginia franchise tax 243 233 Marketing expense 219 317 Other 1,367 1,258 Total $ 5,607 $ 4,672	Other operating expense from the Consolidated Statements of Income for the three and six months ended June 30, 2023, and June 30, 2022, is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 FDIC assessment $ 686 $ 345 $ 1,033 $ 680 Historic tax credit amortization 631 631 1,263 1,263 IT related 466 504 957 916 Consultant fees 508 298 978 510 Network expense 483 418 912 812 Directors' fees 434 792 844 1,037 Audit expense 213 175 520 267 Legal expense 328 412 633 587 Virginia franchise tax 630 600 1,260 1,200 Marketing expense 119 317 338 634 Other 1,520 1,366 2,887 2,624 Total $ 6,018 $ 5,858 $ 11,625 $ 10,530	Other operating expense from the Statements of Income for years ended December 31, 2022, 2021, and 2020 is as follows (in thousands): 2022 2021 2020 Directors' fees $ 1,941 $ 1,093 $ 1,147 Consultant fees 1,708 1,548 1,064 Marketing expense 1,295 1,086 509 Historic tax credit amortization 2,526 2,717 2,718 Virginia franchise tax 2,492 2,366 2,249 (Recapture of) Provision for off-balance sheet exposure — — (1,380) Network expense 1,693 1,592 1,459 FDIC assessment 958 920 460 IT related 1,980 1,306 965 (Gain)/loss on sale of buildings (4,533) (1,063) 7 Legal expense 986 275 369 Audit expense 705 302 220 Other 5,668 5,627 5,963 Total $ 17,419 $ 17,769 $ 15,750

Other Operating Expense (Tabl_3

Other Operating Expense (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Other Income and Expenses [Abstract]
Schedule of Other Operating Expense	Other operating expense from the Consolidated Statements of Income for the three months ended March 31, 2023, and March 31, 2022, is as follows (in thousands): Three months ended 2023 2022 FDIC assessment $ 734 $ 702 Historic tax credit amortization 632 632 IT related 491 412 Consultant fees 470 212 Network expense 429 394 Directors' fees 410 245 Audit expense 307 92 Legal expense 305 175 Virginia franchise tax 243 233 Marketing expense 219 317 Other 1,367 1,258 Total $ 5,607 $ 4,672	Other operating expense from the Consolidated Statements of Income for the three and six months ended June 30, 2023, and June 30, 2022, is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 FDIC assessment $ 686 $ 345 $ 1,033 $ 680 Historic tax credit amortization 631 631 1,263 1,263 IT related 466 504 957 916 Consultant fees 508 298 978 510 Network expense 483 418 912 812 Directors' fees 434 792 844 1,037 Audit expense 213 175 520 267 Legal expense 328 412 633 587 Virginia franchise tax 630 600 1,260 1,200 Marketing expense 119 317 338 634 Other 1,520 1,366 2,887 2,624 Total $ 6,018 $ 5,858 $ 11,625 $ 10,530	Other operating expense from the Statements of Income for years ended December 31, 2022, 2021, and 2020 is as follows (in thousands): 2022 2021 2020 Directors' fees $ 1,941 $ 1,093 $ 1,147 Consultant fees 1,708 1,548 1,064 Marketing expense 1,295 1,086 509 Historic tax credit amortization 2,526 2,717 2,718 Virginia franchise tax 2,492 2,366 2,249 (Recapture of) Provision for off-balance sheet exposure — — (1,380) Network expense 1,693 1,592 1,459 FDIC assessment 958 920 460 IT related 1,980 1,306 965 (Gain)/loss on sale of buildings (4,533) (1,063) 7 Legal expense 986 275 369 Audit expense 705 302 220 Other 5,668 5,627 5,963 Total $ 17,419 $ 17,769 $ 15,750

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Non-interest Income	The following table presents the components of non-interest income for the years ended December 31, 2022, 2021, and 2020 (in thousands): 2022 2021 2020 Service charges and fees (1) Debit card fees $ 4,454 $ 4,413 $ 3,743 Deposit related fees 2,308 1,792 1,869 Other fees 93 123 88 Fiduciary and wealth management (1) Trust fees 3,176 3,297 3,067 Advisory fees 1,575 1,342 950 Other fees 558 523 434 Net gains (losses) on securities (2) (454) (4) 1,944 Income from life insurance (2) 2,656 2,325 2,303 Other non-interest income (1) FHLB dividend (2) 484 409 501 Merchant & credit card fees 801 730 576 Safety deposit fees 394 411 394 Servicing release premium 58 1,303 1,374 Wire fees 358 372 338 Other non-interest (3) 626 215 1,423 Total non-interest income $ 17,087 $ 17,251 $ 19,004 __________________ (1) Income within the scope of ASC 606 - Revenue Recognition (2) Income excluded from the scope of ASC 606 - Revenue Recognition (3) Includes income that arises from the Company electing the FVO as stated that is not within the scope of ASC 606.

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Restricted Stock Unit (RSU) Activity	The following is a summary of the Company’s RSU awards: Nonvested Shares Shares Weighted-Average Grant-Date Fair Value Nonvested at December 31, 2022 122,440 $ 48.00 Granted 24,705 67.81 Vested (3,120) 50.47 Forfeited — — Nonvested at March 31, 2023 144,025 $ 51.34	The following is a summary of the Company’s RSU awards: Non-vested Shares Shares Weighted-Average Grant-Date Fair Value Non-vested at December 31, 2022 122,440 $ 48.00 Granted 24,705 67.81 Vested (4,560) 54.07 Forfeited — — Non-vested at June 30, 2023 142,585 $ 51.24	The following is a summary of the Company’s RSUs: Nonvested Shares Shares Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2022 112,880 $ 47.49 Granted 13,160 54.78 Vested (2,000) 59.87 Forfeited (1,600) 52.92 Nonvested at December 31, 2022 122,440 $ 48.00

Share-Based Compensation (Tab_2

Share-Based Compensation (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity	The following is a summary of the Company’s RSU awards: Nonvested Shares Shares Weighted-Average Grant-Date Fair Value Nonvested at December 31, 2022 122,440 $ 48.00 Granted 24,705 67.81 Vested (3,120) 50.47 Forfeited — — Nonvested at March 31, 2023 144,025 $ 51.34	The following is a summary of the Company’s RSU awards: Non-vested Shares Shares Weighted-Average Grant-Date Fair Value Non-vested at December 31, 2022 122,440 $ 48.00 Granted 24,705 67.81 Vested (4,560) 54.07 Forfeited — — Non-vested at June 30, 2023 142,585 $ 51.24	The following is a summary of the Company’s RSUs: Nonvested Shares Shares Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2022 112,880 $ 47.49 Granted 13,160 54.78 Vested (2,000) 59.87 Forfeited (1,600) 52.92 Nonvested at December 31, 2022 122,440 $ 48.00

Share-Based Compensation (Tab_3

Share-Based Compensation (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Restricted Stock Unit (RSU) Activity	The following is a summary of the Company’s RSU awards: Nonvested Shares Shares Weighted-Average Grant-Date Fair Value Nonvested at December 31, 2022 122,440 $ 48.00 Granted 24,705 67.81 Vested (3,120) 50.47 Forfeited — — Nonvested at March 31, 2023 144,025 $ 51.34	The following is a summary of the Company’s RSU awards: Non-vested Shares Shares Weighted-Average Grant-Date Fair Value Non-vested at December 31, 2022 122,440 $ 48.00 Granted 24,705 67.81 Vested (4,560) 54.07 Forfeited — — Non-vested at June 30, 2023 142,585 $ 51.24	The following is a summary of the Company’s RSUs: Nonvested Shares Shares Weighted-Average Grant-Date Fair Value Nonvested at January 1, 2022 112,880 $ 47.49 Granted 13,160 54.78 Vested (2,000) 59.87 Forfeited (1,600) 52.92 Nonvested at December 31, 2022 122,440 $ 48.00

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. Three Months Ended March 31, 2023 2022 Net income (in thousands) $ 7,524 $ 9,126 Weighted average number of shares 7,426,638 7,424,059 Options effect of dilutive shares 77,835 27,799 Weighted average dilutive shares 7,504,473 7,451,858 Basic EPS $ 1.01 $ 1.23 Diluted EPS 1.00 1.23	The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net income (in thousands) $ 6,034 $ 10,397 $ 13,558 $ 19,523 Weighted average number of shares 7,428,079 7,424,747 7,427,363 7,424,405 Options effect of dilutive shares 86,876 31,339 82,468 29,570 Weighted average dilutive shares 7,514,955 7,456,086 7,509,831 7,453,975 Basic EPS $ 0.81 $ 1.40 $ 1.82 $ 2.63 Diluted EPS 0.80 1.39 1.80 2.62	The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. 2022 2021 2020 Net income (in thousands) $ 44,013 $ 36,165 $ 26,499 Weighted average number of shares 7,425,088 7,424,405 7,453,651 Options effect of dilutive shares 42,629 5,659 809 Weighted average dilutive shares 7,467,717 7,430,064 7,454,460 Basic EPS $ 5.93 $ 4.87 $ 3.56 Diluted EPS 5.89 4.87 3.55

Earnings Per Share (Tables)_2

Earnings Per Share (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. Three Months Ended March 31, 2023 2022 Net income (in thousands) $ 7,524 $ 9,126 Weighted average number of shares 7,426,638 7,424,059 Options effect of dilutive shares 77,835 27,799 Weighted average dilutive shares 7,504,473 7,451,858 Basic EPS $ 1.01 $ 1.23 Diluted EPS 1.00 1.23	The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net income (in thousands) $ 6,034 $ 10,397 $ 13,558 $ 19,523 Weighted average number of shares 7,428,079 7,424,747 7,427,363 7,424,405 Options effect of dilutive shares 86,876 31,339 82,468 29,570 Weighted average dilutive shares 7,514,955 7,456,086 7,509,831 7,453,975 Basic EPS $ 0.81 $ 1.40 $ 1.82 $ 2.63 Diluted EPS 0.80 1.39 1.80 2.62	The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. 2022 2021 2020 Net income (in thousands) $ 44,013 $ 36,165 $ 26,499 Weighted average number of shares 7,425,088 7,424,405 7,453,651 Options effect of dilutive shares 42,629 5,659 809 Weighted average dilutive shares 7,467,717 7,430,064 7,454,460 Basic EPS $ 5.93 $ 4.87 $ 3.56 Diluted EPS 5.89 4.87 3.55

Earnings Per Share (Tables)_2_3

Earnings Per Share (Tables)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. Three Months Ended March 31, 2023 2022 Net income (in thousands) $ 7,524 $ 9,126 Weighted average number of shares 7,426,638 7,424,059 Options effect of dilutive shares 77,835 27,799 Weighted average dilutive shares 7,504,473 7,451,858 Basic EPS $ 1.01 $ 1.23 Diluted EPS 1.00 1.23	The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net income (in thousands) $ 6,034 $ 10,397 $ 13,558 $ 19,523 Weighted average number of shares 7,428,079 7,424,747 7,427,363 7,424,405 Options effect of dilutive shares 86,876 31,339 82,468 29,570 Weighted average dilutive shares 7,514,955 7,456,086 7,509,831 7,453,975 Basic EPS $ 0.81 $ 1.40 $ 1.82 $ 2.63 Diluted EPS 0.80 1.39 1.80 2.62	The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares dilutive potential Common Stock. Dilutive potential Common Stock has no effect on income available to common shareholders. 2022 2021 2020 Net income (in thousands) $ 44,013 $ 36,165 $ 26,499 Weighted average number of shares 7,425,088 7,424,405 7,453,651 Options effect of dilutive shares 42,629 5,659 809 Weighted average dilutive shares 7,467,717 7,430,064 7,454,460 Basic EPS $ 5.93 $ 4.87 $ 3.56 Diluted EPS 5.89 4.87 3.55

Nature of Business Activities_9

Nature of Business Activities and Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) segment branch	Jun. 30, 2023 branch	Mar. 31, 2023 branch	Dec. 31, 2021 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of branches | branch	20	20	20
Reserve balance requirements | $	$ 0			$ 0
Number of operating segment	1
Number of reportable segment	1
Building and Building Improvements
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life	40 years
Furniture and Fixtures | Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life	3 years
Furniture and Fixtures | Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Useful life	10 years
Burke & Herbert Bank & Trust Company
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Subsidiary, ownership percentage, parent	100%	100%	100%

Nature of Business Activitie_10

Nature of Business Activities and Significant Accounting Policies - Narrative (Details)	3 Months Ended		6 Months Ended	12 Months Ended
	Mar. 31, 2023 USD ($) branch		Jun. 30, 2023 USD ($) branch	Dec. 31, 2022 USD ($) branch		Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of branches | branch	20		20	20
Accounting standards update			Accounting Standards Update 2016-13 [Member]	Accounting Standards Update 2016-13 [Member]
Allowance for credit losses	$ 25,704,000	[1]	$ 25,919,000	$ 21,039,000	[1]	$ 31,709,000		$ 23,362,000	$ 29,061,000
Credit loss liability expense (reversal)	267,300		170,000	0		0	$ (1,380,000)
Decrease in retained earnings, net of deferred taxes	(424,532,000)		(426,625,000)	(424,391,000)		$ (396,120,000)
Accrued interest receivable on loans	7,500,000		7,700,000
Accrued interest receivable on available-for-sale debt securities	$ 7,900,000		$ 7,400,000
Impact of CECL Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses				4,125,000
Credit loss liability expense (reversal)				274,800
Decrease in retained earnings, net of deferred taxes				$ 3,400,000
Burke & Herbert Bank & Trust Company
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Subsidiary, ownership percentage, parent	100%		100%	100%
[1] Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies in Notes to Consolidated Financial Statements for additional information related to our adoption of this standard.

Nature of Business Activitie_11

Nature of Business Activities and Significant Accounting Policies - Impact of Adoption of CECL (Details) - USD ($)	Jun. 30, 2023	Mar. 31, 2023		Dec. 31, 2022		Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Financial Assets:
Allowance for credit losses	$ 25,919,000	$ 25,704,000	[1]	$ 21,039,000	[1]	$ 23,362,000	$ 29,061,000	$ 31,709,000
Financial Liabilities:
Allowance for credit losses on off-balance sheet credit exposure				0
Reserves under CECL Model
Financial Assets:
Allowance for credit losses				25,164,000
Financial Liabilities:
Allowance for credit losses on off-balance sheet credit exposure				275,000
Impact of CECL Adoption
Financial Assets:
Allowance for credit losses				4,125,000
Financial Liabilities:
Allowance for credit losses on off-balance sheet credit exposure				275,000
Commercial real estate
Financial Assets:
Allowance for credit losses	18,639,000	18,409,000		15,477,000		15,548,000	22,773,000	25,112,000
Commercial real estate | Reserves under CECL Model
Financial Assets:
Allowance for credit losses				18,163,000
Commercial real estate | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses				2,686,000
Owner-occupied commercial real estate
Financial Assets:
Allowance for credit losses	719,000	556,000		635,000		724,000	663,000	611,000
Owner-occupied commercial real estate | Reserves under CECL Model
Financial Assets:
Allowance for credit losses				629,000
Owner-occupied commercial real estate | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses				(6,000)
Acquisition, construction & development
Financial Assets:
Allowance for credit losses	1,319,000	1,852,000		2,082,000		3,607,000	2,316,000	2,189,000
Acquisition, construction & development | Reserves under CECL Model
Financial Assets:
Allowance for credit losses				1,442,000
Acquisition, construction & development | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses				(640,000)
Commercial & industrial
Financial Assets:
Allowance for credit losses	612,000	700,000		438,000		214,000	113,000	165,000
Commercial & industrial | Reserves under CECL Model
Financial Assets:
Allowance for credit losses				675,000
Commercial & industrial | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses				237,000
Single family residential (1-4 units)
Financial Assets:
Allowance for credit losses	4,520,000	4,030,000		2,379,000		1,519,000	1,451,000	2,434,000
Single family residential (1-4 units) | Reserves under CECL Model
Financial Assets:
Allowance for credit losses				4,040,000
Single family residential (1-4 units) | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses				1,661,000
Consumer non-real estate and other
Financial Assets:
Allowance for credit losses	110,000	157,000		28,000		19,000	14,000	18,000
Consumer non-real estate and other | Reserves under CECL Model
Financial Assets:
Allowance for credit losses				215,000
Consumer non-real estate and other | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses				187,000
Unallocated reserve
Financial Assets:
Allowance for credit losses	$ 0	$ 0		0		$ 1,731,000	$ 1,731,000	$ 1,180,000
Unallocated reserve | Reserves under CECL Model
Financial Assets:
Allowance for credit losses				0
Unallocated reserve | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses				$ 0
[1] Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies in Notes to Consolidated Financial Statements for additional information related to our adoption of this standard.

Nature of Business Activitie_12

Nature of Business Activities and Significant Accounting Policies - Narrative (Details)	3 Months Ended		6 Months Ended	12 Months Ended
	Mar. 31, 2023 USD ($) branch		Jun. 30, 2023 USD ($) branch	Dec. 31, 2022 USD ($) branch		Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of branches | branch	20		20	20
Accounting standards update			Accounting Standards Update 2016-13 [Member]	Accounting Standards Update 2016-13 [Member]
Allowance for credit losses	$ 25,704,000	[1]	$ 25,919,000	$ 21,039,000	[1]	$ 31,709,000		$ 23,362,000	$ 29,061,000
(Recapture of) Provision for off-balance sheet exposure	267,300		170,000	0		0	$ (1,380,000)
Decrease in retained earnings, net of deferred taxes	(424,532,000)		(426,625,000)	$ (424,391,000)		$ (396,120,000)
Accrued interest receivable on loans	7,500,000		7,700,000
Accrued interest receivable on available-for-sale debt securities	$ 7,900,000		$ 7,400,000
Burke & Herbert Bank & Trust Company
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Subsidiary, ownership percentage, parent	100%		100%	100%
Impact of CECL Adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for credit losses				$ 4,125,000
(Recapture of) Provision for off-balance sheet exposure				274,800
Decrease in retained earnings, net of deferred taxes				$ 3,400,000
[1] Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies in Notes to Consolidated Financial Statements for additional information related to our adoption of this standard.

Nature of Business Activitie_13

Nature of Business Activities and Significant Accounting Policies - Impact of Adoption of CECL (Details) - USD ($)	Jun. 30, 2023	Mar. 31, 2023		Dec. 31, 2022		Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Financial Assets:
Allowance for credit losses	$ 25,919,000	$ 25,704,000	[1]	$ 21,039,000	[1]	$ 23,362,000	$ 29,061,000	$ 31,709,000
Financial Liabilities:
Allowance for credit losses on off-balance sheet credit exposure				0
Reserves under CECL Model
Financial Assets:
Allowance for credit losses				25,164,000
Financial Liabilities:
Allowance for credit losses on off-balance sheet credit exposure				275,000
Impact of CECL Adoption
Financial Assets:
Allowance for credit losses				4,125,000
Financial Liabilities:
Allowance for credit losses on off-balance sheet credit exposure				275,000
Commercial real estate
Financial Assets:
Allowance for credit losses	18,639,000	18,409,000		15,477,000		15,548,000	22,773,000	25,112,000
Commercial real estate | Reserves under CECL Model
Financial Assets:
Allowance for credit losses				18,163,000
Commercial real estate | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses				2,686,000
Owner-occupied commercial real estate
Financial Assets:
Allowance for credit losses	719,000	556,000		635,000		724,000	663,000	611,000
Owner-occupied commercial real estate | Reserves under CECL Model
Financial Assets:
Allowance for credit losses				629,000
Owner-occupied commercial real estate | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses				(6,000)
Acquisition, construction & development
Financial Assets:
Allowance for credit losses	1,319,000	1,852,000		2,082,000		3,607,000	2,316,000	2,189,000
Acquisition, construction & development | Reserves under CECL Model
Financial Assets:
Allowance for credit losses				1,442,000
Acquisition, construction & development | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses				(640,000)
Commercial & industrial
Financial Assets:
Allowance for credit losses	612,000	700,000		438,000		214,000	113,000	165,000
Commercial & industrial | Reserves under CECL Model
Financial Assets:
Allowance for credit losses				675,000
Commercial & industrial | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses				237,000
Single family residential (1-4 units)
Financial Assets:
Allowance for credit losses	4,520,000	4,030,000		2,379,000		1,519,000	1,451,000	2,434,000
Single family residential (1-4 units) | Reserves under CECL Model
Financial Assets:
Allowance for credit losses				4,040,000
Single family residential (1-4 units) | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses				1,661,000
Consumer non-real estate and other
Financial Assets:
Allowance for credit losses	110,000	157,000		28,000		19,000	14,000	18,000
Consumer non-real estate and other | Reserves under CECL Model
Financial Assets:
Allowance for credit losses				215,000
Consumer non-real estate and other | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses				187,000
Unallocated reserve
Financial Assets:
Allowance for credit losses	$ 0	$ 0		0		$ 1,731,000	$ 1,731,000	$ 1,180,000
Unallocated reserve | Reserves under CECL Model
Financial Assets:
Allowance for credit losses				0
Unallocated reserve | Impact of CECL Adoption
Financial Assets:
Allowance for credit losses				$ 0
[1] Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies in Notes to Consolidated Financial Statements for additional information related to our adoption of this standard.

Securities - Debt Securities, A

Securities - Debt Securities, Available-for-Sale (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	$ 1,402,600	$ 1,506,653	$ 1,537,420	$ 1,589,255
Gross Unrealized Gains	69	332	162	27,648
Gross Unrealized Losses	150,479	144,200	165,825	11,222
Investment Securities	1,252,190	1,362,785	1,371,757	1,605,681
U.S. Treasuries and government agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	197,592	197,875	198,154	185,085
Gross Unrealized Gains	0	0	0	98
Gross Unrealized Losses	22,195	19,456	23,161	742
Investment Securities	175,397	178,419	174,993	184,441
Obligations of states and municipalities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	538,194	547,896	550,590	651,000
Gross Unrealized Gains	28	44	12	20,285
Gross Unrealized Losses	82,360	79,578	96,695	5,718
Investment Securities	455,862	468,362	453,907	665,567
Residential mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	47,340	56,991	57,883	63,568
Gross Unrealized Gains	0	20	14	372
Gross Unrealized Losses	5,350	4,341	4,836	1,153
Investment Securities	41,990	52,670	53,061	62,787
Residential mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	323,519	349,123	365,983	245,794
Gross Unrealized Gains	13	12	2	863
Gross Unrealized Losses	27,428	27,985	26,690	2,349
Investment Securities	296,104	321,150	339,295	244,308
Commercial mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	37,558	59,409	61,810	78,830
Gross Unrealized Gains	25	58	75	411
Gross Unrealized Losses	1,497	1,635	1,952	358
Investment Securities	36,086	57,832	59,933	78,883
Commercial mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	172,286	190,542	191,709	170,048
Gross Unrealized Gains	0	97	10	2,492
Gross Unrealized Losses	7,979	7,414	8,420	336
Investment Securities	164,307	183,225	183,299	172,204
Asset-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	76,611	95,317	101,791	192,930
Gross Unrealized Gains	3	101	49	3,127
Gross Unrealized Losses	2,135	2,819	3,214	532
Investment Securities	74,479	92,599	98,626	195,525
Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	9,500	9,500	9,500	2,000
Gross Unrealized Gains	0	0	0	0
Gross Unrealized Losses	1,535	972	857	34
Investment Securities	$ 7,965	$ 8,528	$ 8,643	$ 1,966

Securities - Narrative (Details

Securities - Narrative (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($) security	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($) security	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) security	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 1,506,653,000		$ 1,402,600,000		$ 1,537,420,000	$ 1,589,255,000
Fair value	1,362,785,000		1,252,190,000		1,371,757,000	1,605,681,000
Realized tax benefit (provision) gain (loss)	0	$ 21,800	23,300	$ (21,800)	95,300	800	$ (408,200)
Restricted stock, at cost	9,129,000		3,914,000		16,443,000	12,079,000
Restricted stock, at cost, before adjustments						12,000,000
Community Bankers' Bank
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Restricted stock, at cost	50,000		50,000		50,000	50,000
U.S. Treasuries and government agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	197,875,000		197,592,000		198,154,000	185,085,000
Fair value	$ 178,419,000		$ 175,397,000		$ 174,993,000	184,441,000
Securities in unrealized loss positions | security	12		12		12
Residential mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 56,991,000		$ 47,340,000		$ 57,883,000	63,568,000
Fair value	$ 52,670,000		$ 41,990,000		$ 53,061,000	62,787,000
Securities in unrealized loss positions | security	19		16		19
Commercial mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities in unrealized loss positions | security	31		16		31
State and Municipal Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities in unrealized loss positions | security	214		202		230
Residential mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 349,123,000		$ 323,519,000		$ 365,983,000	245,794,000
Fair value	$ 321,150,000		$ 296,104,000		$ 339,295,000	244,308,000
Securities in unrealized loss positions | security	108		96		109
Commercial mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 190,542,000		$ 172,286,000		$ 191,709,000	170,048,000
Fair value	$ 183,225,000		$ 164,307,000		$ 183,299,000	172,204,000
Securities in unrealized loss positions | security	36		34		36
Asset-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 95,317,000		$ 76,611,000		$ 101,791,000	192,930,000
Fair value	$ 92,599,000		$ 74,479,000		$ 98,626,000	195,525,000
Securities in unrealized loss positions | security	28		23		28
Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 9,500,000		$ 9,500,000		$ 9,500,000	2,000,000
Fair value	$ 8,528,000		$ 7,965,000		$ 8,643,000	1,966,000
Securities in unrealized loss positions | security	3		3		3
Asset Pledged as Collateral
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 799,300,000		$ 834,800,000		$ 637,100,000	498,100,000
Fair value	$ 714,500,000		$ 735,500,000		$ 552,500,000	$ 518,600,000

Securities - Schedule of Realiz

Securities - Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Gross realized gains	$ 0	$ 727	$ 773	$ 727	$ 1,512	$ 0	$ 1,957
Gross realized losses	0	(623)	(884)	(623)	(1,966)	(4)	(13)
Proceeds from sales of securities	$ 0	$ 87,033	$ 77,780	$ 87,033	$ 195,907	$ 700	$ 49,233

Securities - Expected Maturity

Securities - Expected Maturity for Debt Securities, Available-for-Sale (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Amortized Cost
One Year or Less	$ 105,665	$ 68,159	$ 70,129
One to Five Years	463,737	570,231	584,396
Five to Ten Years	615,595	649,590	612,005
After Ten Years	217,603	218,673	270,890
Amortized Cost	1,402,600	1,506,653	1,537,420	$ 1,589,255
Fair Value
One Year or Less	102,003	66,192	68,449
One to Five Years	438,142	544,784	554,122
Five to Ten Years	538,874	577,651	538,804
After Ten Years	173,171	174,158	210,382
Fair Value	1,252,190	1,362,785	1,371,757	1,605,681
U.S. Treasuries and government agencies
Amortized Cost
One Year or Less	29,711	0	0
One to Five Years	40,637	59,546	39,854
Five to Ten Years	127,244	138,329	158,300
After Ten Years	0	0	0
Amortized Cost	197,592	197,875	198,154	185,085
Fair Value
One Year or Less	28,835	0	0
One to Five Years	35,757	55,500	37,439
Five to Ten Years	110,805	122,919	137,554
After Ten Years	0	0	0
Fair Value	175,397	178,419	174,993	184,441
Obligations of states and municipalities
Amortized Cost
One Year or Less	370	370	5,235
One to Five Years	12,935	10,947	1,563
Five to Ten Years	317,052	332,562	277,320
After Ten Years	207,837	204,017	266,472
Amortized Cost	538,194	547,896	550,590	651,000
Fair Value
One Year or Less	370	370	5,246
One to Five Years	11,884	10,204	1,529
Five to Ten Years	279,357	296,965	240,753
After Ten Years	164,251	160,823	206,379
Fair Value	455,862	468,362	453,907	665,567
Residential mortgage backed - agency
Amortized Cost
One Year or Less	42	42	42
One to Five Years	23,836	33,446	34,100
Five to Ten Years	23,462	23,503	23,741
After Ten Years	0	0	0
Amortized Cost	47,340	56,991	57,883	63,568
Fair Value
One Year or Less	42	42	42
One to Five Years	22,857	32,561	33,128
Five to Ten Years	19,091	20,067	19,891
After Ten Years	0	0	0
Fair Value	41,990	52,670	53,061	62,787
Residential mortgage backed - non-agency
Amortized Cost
One Year or Less	58,019	32,336	28,203
One to Five Years	160,253	209,368	265,190
Five to Ten Years	95,481	92,763	68,172
After Ten Years	9,766	14,656	4,418
Amortized Cost	323,519	349,123	365,983	245,794
Fair Value
One Year or Less	55,532	31,027	27,182
One to Five Years	150,656	198,301	247,662
Five to Ten Years	80,996	78,487	60,448
After Ten Years	8,920	13,335	4,003
Fair Value	296,104	321,150	339,295	244,308
Commercial mortgage backed - agency
Amortized Cost
One Year or Less	196	233	415
One to Five Years	31,090	52,796	56,622
Five to Ten Years	6,272	6,380	4,773
After Ten Years	0	0	0
Amortized Cost	37,558	59,409	61,810	78,830
Fair Value
One Year or Less	196	232	414
One to Five Years	29,955	51,524	54,960
Five to Ten Years	5,935	6,076	4,559
After Ten Years	0	0	0
Fair Value	36,086	57,832	59,933	78,883
Commercial mortgage backed - non-agency
Amortized Cost
One Year or Less	8,562	32,882	32,979
One to Five Years	158,575	152,507	153,572
Five to Ten Years	5,149	5,153	5,158
After Ten Years	0	0	0
Amortized Cost	172,286	190,542	191,709	170,048
Fair Value
One Year or Less	8,367	32,283	32,400
One to Five Years	151,823	146,728	146,812
Five to Ten Years	4,117	4,214	4,087
After Ten Years	0	0	0
Fair Value	164,307	183,225	183,299	172,204
Asset-backed
Amortized Cost
One Year or Less	8,765	2,296	3,255
One to Five Years	36,411	51,621	33,495
Five to Ten Years	31,435	41,400	65,041
After Ten Years	0	0	0
Amortized Cost	76,611	95,317	101,791	192,930
Fair Value
One Year or Less	8,661	2,238	3,165
One to Five Years	35,210	49,966	32,592
Five to Ten Years	30,608	40,395	62,869
After Ten Years	0	0	0
Fair Value	74,479	92,599	98,626	195,525
Other
Amortized Cost
One Year or Less	0	0	0
One to Five Years	0	0	0
Five to Ten Years	9,500	9,500	9,500
After Ten Years	0	0	0
Amortized Cost	9,500	9,500	9,500	2,000
Fair Value
One Year or Less	0	0	0
One to Five Years			0
Five to Ten Years	7,965	8,528	8,643
After Ten Years	0	0	0
Fair Value	$ 7,965	$ 8,528	$ 8,643	$ 1,966

Securities - Debt Securities,_2

Securities - Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	$ 73,774	$ 168,863	$ 586,464	$ 672,266
AFS, Less than 12 months, Gross Unrealized Losses	6,022	8,830	33,528	9,138
AFS, 12 months or longer, Fair Value	1,169,095	1,154,631	752,987	83,592
AFS, 12 months or longer, Gross Unrealized Losses	144,457	135,370	132,297	2,084
AFS, Total Gross Unrealized Losses	150,479	144,200	165,825	11,222
U.S. Treasuries and government agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	0	0	28,399	134,379
AFS, Less than 12 months, Gross Unrealized Losses	0	0	1,131	392
AFS, 12 months or longer, Fair Value	175,397	178,419	146,594	10,082
AFS, 12 months or longer, Gross Unrealized Losses	22,195	19,456	22,030	350
AFS, Total Gross Unrealized Losses	22,195	19,456	23,161	742
Obligations of states and municipalities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	11,245	17,774	128,373	218,099
AFS, Less than 12 months, Gross Unrealized Losses	291	330	12,378	4,938
AFS, 12 months or longer, Fair Value	440,754	444,269	320,287	14,521
AFS, 12 months or longer, Gross Unrealized Losses	82,069	79,248	84,317	780
AFS, Total Gross Unrealized Losses	82,360	79,578	96,695	5,718
Residential mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	602	616	7,258	48,167
AFS, Less than 12 months, Gross Unrealized Losses	15	10	26	1,153
AFS, 12 months or longer, Fair Value	41,387	42,382	41,975	0
AFS, 12 months or longer, Gross Unrealized Losses	5,335	4,331	4,810	0
AFS, Total Gross Unrealized Losses	5,350	4,341	4,836	1,153
Residential mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	43,562	109,454	204,866	149,640
AFS, Less than 12 months, Gross Unrealized Losses	4,315	7,318	11,822	1,624
AFS, 12 months or longer, Fair Value	251,852	210,963	134,056	31,024
AFS, 12 months or longer, Gross Unrealized Losses	23,113	20,667	14,868	725
AFS, Total Gross Unrealized Losses	27,428	27,985	26,690	2,349
Commercial mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	1,663	1,688	23,026	33,703
AFS, Less than 12 months, Gross Unrealized Losses	145	124	562	274
AFS, 12 months or longer, Fair Value	33,625	54,441	34,847	6,456
AFS, 12 months or longer, Gross Unrealized Losses	1,352	1,511	1,390	84
AFS, Total Gross Unrealized Losses	1,497	1,635	1,952	358
Commercial mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	0	10,970	144,193	36,307
AFS, Less than 12 months, Gross Unrealized Losses	0	136	6,171	321
AFS, 12 months or longer, Fair Value	164,307	160,432	23,374	4,137
AFS, 12 months or longer, Gross Unrealized Losses	7,979	7,278	2,249	15
AFS, Total Gross Unrealized Losses	7,979	7,414	8,420	336
Asset-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	10,411	21,586	43,472	50,005
AFS, Less than 12 months, Gross Unrealized Losses	47	187	815	402
AFS, 12 months or longer, Fair Value	60,100	61,972	50,088	17,372
AFS, 12 months or longer, Gross Unrealized Losses	2,088	2,632	2,399	130
AFS, Total Gross Unrealized Losses	2,135	2,819	3,214	532
Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	6,291	6,775	6,877	1,966
AFS, Less than 12 months, Gross Unrealized Losses	1,209	725	623	34
AFS, 12 months or longer, Fair Value	1,673	1,753	1,766	0
AFS, 12 months or longer, Gross Unrealized Losses	326	247	234	0
AFS, Total Gross Unrealized Losses	$ 1,535	$ 972	$ 857	$ 34

Securities - Debt Securities,_3

Securities - Debt Securities, Available-for-Sale (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	$ 1,402,600	$ 1,506,653	$ 1,537,420	$ 1,589,255
Gross Unrealized Gains	69	332	162	27,648
Gross Unrealized Losses	150,479	144,200	165,825	11,222
Fair value	1,252,190	1,362,785	1,371,757	1,605,681
U.S. Treasuries and government agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	197,592	197,875	198,154	185,085
Gross Unrealized Gains	0	0	0	98
Gross Unrealized Losses	22,195	19,456	23,161	742
Fair value	175,397	178,419	174,993	184,441
Obligations of states and municipalities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	538,194	547,896	550,590	651,000
Gross Unrealized Gains	28	44	12	20,285
Gross Unrealized Losses	82,360	79,578	96,695	5,718
Fair value	455,862	468,362	453,907	665,567
Residential mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	47,340	56,991	57,883	63,568
Gross Unrealized Gains	0	20	14	372
Gross Unrealized Losses	5,350	4,341	4,836	1,153
Fair value	41,990	52,670	53,061	62,787
Residential mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	323,519	349,123	365,983	245,794
Gross Unrealized Gains	13	12	2	863
Gross Unrealized Losses	27,428	27,985	26,690	2,349
Fair value	296,104	321,150	339,295	244,308
Commercial mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	37,558	59,409	61,810	78,830
Gross Unrealized Gains	25	58	75	411
Gross Unrealized Losses	1,497	1,635	1,952	358
Fair value	36,086	57,832	59,933	78,883
Commercial mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	172,286	190,542	191,709	170,048
Gross Unrealized Gains	0	97	10	2,492
Gross Unrealized Losses	7,979	7,414	8,420	336
Fair value	164,307	183,225	183,299	172,204
Asset-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	76,611	95,317	101,791	192,930
Gross Unrealized Gains	3	101	49	3,127
Gross Unrealized Losses	2,135	2,819	3,214	532
Fair value	74,479	92,599	98,626	195,525
Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	9,500	9,500	9,500	2,000
Gross Unrealized Gains	0	0	0	0
Gross Unrealized Losses	1,535	972	857	34
Fair value	$ 7,965	$ 8,528	$ 8,643	$ 1,966

Securities - Narrative (Detai_2

Securities - Narrative (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($) security	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($) security	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) security	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 1,506,653,000		$ 1,402,600,000		$ 1,537,420,000	$ 1,589,255,000
Fair value	1,362,785,000		1,252,190,000		1,371,757,000	1,605,681,000
Realized tax benefit (provision) gain (loss)	$ 0	$ 21,800	$ 23,300	$ (21,800)	95,300	800	$ (408,200)
Securities unrealized loss | security	451		402
Restricted stock, at cost	$ 9,129,000		$ 3,914,000		16,443,000	12,079,000
Community Bankers' Bank
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Restricted stock, at cost	50,000		50,000		50,000	50,000
U.S. Treasuries and government agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	197,875,000		197,592,000		198,154,000	185,085,000
Fair value	$ 178,419,000		$ 175,397,000		$ 174,993,000	184,441,000
Securities in unrealized loss positions | security	12		12		12
Residential mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 56,991,000		$ 47,340,000		$ 57,883,000	63,568,000
Fair value	$ 52,670,000		$ 41,990,000		$ 53,061,000	62,787,000
Securities in unrealized loss positions | security	19		16		19
Commercial mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities in unrealized loss positions | security	31		16		31
State and Municipal Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities in unrealized loss positions | security	214		202		230
Residential mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 349,123,000		$ 323,519,000		$ 365,983,000	245,794,000
Fair value	$ 321,150,000		$ 296,104,000		$ 339,295,000	244,308,000
Securities in unrealized loss positions | security	108		96		109
Commercial mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 190,542,000		$ 172,286,000		$ 191,709,000	170,048,000
Fair value	$ 183,225,000		$ 164,307,000		$ 183,299,000	172,204,000
Securities in unrealized loss positions | security	36		34		36
Asset-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 95,317,000		$ 76,611,000		$ 101,791,000	192,930,000
Fair value	$ 92,599,000		$ 74,479,000		$ 98,626,000	195,525,000
Securities in unrealized loss positions | security	28		23		28
Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 9,500,000		$ 9,500,000		$ 9,500,000	2,000,000
Fair value	$ 8,528,000		$ 7,965,000		$ 8,643,000	1,966,000
Securities in unrealized loss positions | security	3		3		3
Asset Pledged as Collateral
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized cost	$ 799,300,000		$ 834,800,000		$ 637,100,000	498,100,000
Fair value	$ 714,500,000		$ 735,500,000		$ 552,500,000	$ 518,600,000

Securities - Schedule of Real_2

Securities - Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Gross realized gains	$ 0	$ 727	$ 773	$ 727	$ 1,512	$ 0	$ 1,957
Gross realized losses	0	(623)	(884)	(623)	(1,966)	(4)	(13)
Proceeds from sales of securities	$ 0	$ 87,033	$ 77,780	$ 87,033	$ 195,907	$ 700	$ 49,233

Securities - Expected Maturit_2

Securities - Expected Maturity for Debt Securities, Available-for-Sale (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Amortized Cost
One Year or Less	$ 105,665	$ 68,159	$ 70,129
One to Five Years	463,737	570,231	584,396
Five to Ten Years	615,595	649,590	612,005
After Ten Years	217,603	218,673	270,890
Amortized Cost	1,402,600	1,506,653	1,537,420	$ 1,589,255
Fair Value
One Year or Less	102,003	66,192	68,449
One to Five Years	438,142	544,784	554,122
Five to Ten Years	538,874	577,651	538,804
After Ten Years	173,171	174,158	210,382
Fair value	1,252,190	1,362,785	1,371,757	1,605,681
U.S. Treasuries and government agencies
Amortized Cost
One Year or Less	29,711	0	0
One to Five Years	40,637	59,546	39,854
Five to Ten Years	127,244	138,329	158,300
After Ten Years	0	0	0
Amortized Cost	197,592	197,875	198,154	185,085
Fair Value
One Year or Less	28,835	0	0
One to Five Years	35,757	55,500	37,439
Five to Ten Years	110,805	122,919	137,554
After Ten Years	0	0	0
Fair value	175,397	178,419	174,993	184,441
Obligations of states and municipalities
Amortized Cost
One Year or Less	370	370	5,235
One to Five Years	12,935	10,947	1,563
Five to Ten Years	317,052	332,562	277,320
After Ten Years	207,837	204,017	266,472
Amortized Cost	538,194	547,896	550,590	651,000
Fair Value
One Year or Less	370	370	5,246
One to Five Years	11,884	10,204	1,529
Five to Ten Years	279,357	296,965	240,753
After Ten Years	164,251	160,823	206,379
Fair value	455,862	468,362	453,907	665,567
Residential mortgage backed - agency
Amortized Cost
One Year or Less	42	42	42
One to Five Years	23,836	33,446	34,100
Five to Ten Years	23,462	23,503	23,741
After Ten Years	0	0	0
Amortized Cost	47,340	56,991	57,883	63,568
Fair Value
One Year or Less	42	42	42
One to Five Years	22,857	32,561	33,128
Five to Ten Years	19,091	20,067	19,891
After Ten Years	0	0	0
Fair value	41,990	52,670	53,061	62,787
Residential mortgage backed - non-agency
Amortized Cost
One Year or Less	58,019	32,336	28,203
One to Five Years	160,253	209,368	265,190
Five to Ten Years	95,481	92,763	68,172
After Ten Years	9,766	14,656	4,418
Amortized Cost	323,519	349,123	365,983	245,794
Fair Value
One Year or Less	55,532	31,027	27,182
One to Five Years	150,656	198,301	247,662
Five to Ten Years	80,996	78,487	60,448
After Ten Years	8,920	13,335	4,003
Fair value	296,104	321,150	339,295	244,308
Commercial mortgage backed - agency
Amortized Cost
One Year or Less	196	233	415
One to Five Years	31,090	52,796	56,622
Five to Ten Years	6,272	6,380	4,773
After Ten Years	0	0	0
Amortized Cost	37,558	59,409	61,810	78,830
Fair Value
One Year or Less	196	232	414
One to Five Years	29,955	51,524	54,960
Five to Ten Years	5,935	6,076	4,559
After Ten Years	0	0	0
Fair value	36,086	57,832	59,933	78,883
Commercial mortgage backed - non-agency
Amortized Cost
One Year or Less	8,562	32,882	32,979
One to Five Years	158,575	152,507	153,572
Five to Ten Years	5,149	5,153	5,158
After Ten Years	0	0	0
Amortized Cost	172,286	190,542	191,709	170,048
Fair Value
One Year or Less	8,367	32,283	32,400
One to Five Years	151,823	146,728	146,812
Five to Ten Years	4,117	4,214	4,087
After Ten Years	0	0	0
Fair value	164,307	183,225	183,299	172,204
Asset-backed
Amortized Cost
One Year or Less	8,765	2,296	3,255
One to Five Years	36,411	51,621	33,495
Five to Ten Years	31,435	41,400	65,041
After Ten Years	0	0	0
Amortized Cost	76,611	95,317	101,791	192,930
Fair Value
One Year or Less	8,661	2,238	3,165
One to Five Years	35,210	49,966	32,592
Five to Ten Years	30,608	40,395	62,869
After Ten Years	0	0	0
Fair value	74,479	92,599	98,626	195,525
Other
Amortized Cost
One Year or Less	0	0	0
One to Five Years	0	0	0
Five to Ten Years	9,500	9,500	9,500
After Ten Years	0	0	0
Amortized Cost	9,500	9,500	9,500	2,000
Fair Value
One Year or Less	0	0	0
One to Five Years			0
Five to Ten Years	7,965	8,528	8,643
After Ten Years	0	0	0
Fair value	$ 7,965	$ 8,528	$ 8,643	$ 1,966

Securities - Debt Securities,_4

Securities - Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	$ 73,774	$ 168,863	$ 586,464	$ 672,266
AFS, Less than 12 months, Gross Unrealized Losses	6,022	8,830	33,528	9,138
AFS, 12 months or longer, Fair Value	1,169,095	1,154,631	752,987	83,592
AFS, 12 months or longer, Gross Unrealized Losses	144,457	135,370	132,297	2,084
AFS, Total Gross Unrealized Losses	150,479	144,200	165,825	11,222
U.S. Treasuries and government agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	0	0	28,399	134,379
AFS, Less than 12 months, Gross Unrealized Losses	0	0	1,131	392
AFS, 12 months or longer, Fair Value	175,397	178,419	146,594	10,082
AFS, 12 months or longer, Gross Unrealized Losses	22,195	19,456	22,030	350
AFS, Total Gross Unrealized Losses	22,195	19,456	23,161	742
Obligations of states and municipalities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	11,245	17,774	128,373	218,099
AFS, Less than 12 months, Gross Unrealized Losses	291	330	12,378	4,938
AFS, 12 months or longer, Fair Value	440,754	444,269	320,287	14,521
AFS, 12 months or longer, Gross Unrealized Losses	82,069	79,248	84,317	780
AFS, Total Gross Unrealized Losses	82,360	79,578	96,695	5,718
Residential mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	602	616	7,258	48,167
AFS, Less than 12 months, Gross Unrealized Losses	15	10	26	1,153
AFS, 12 months or longer, Fair Value	41,387	42,382	41,975	0
AFS, 12 months or longer, Gross Unrealized Losses	5,335	4,331	4,810	0
AFS, Total Gross Unrealized Losses	5,350	4,341	4,836	1,153
Residential mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	43,562	109,454	204,866	149,640
AFS, Less than 12 months, Gross Unrealized Losses	4,315	7,318	11,822	1,624
AFS, 12 months or longer, Fair Value	251,852	210,963	134,056	31,024
AFS, 12 months or longer, Gross Unrealized Losses	23,113	20,667	14,868	725
AFS, Total Gross Unrealized Losses	27,428	27,985	26,690	2,349
Commercial mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	1,663	1,688	23,026	33,703
AFS, Less than 12 months, Gross Unrealized Losses	145	124	562	274
AFS, 12 months or longer, Fair Value	33,625	54,441	34,847	6,456
AFS, 12 months or longer, Gross Unrealized Losses	1,352	1,511	1,390	84
AFS, Total Gross Unrealized Losses	1,497	1,635	1,952	358
Commercial mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	0	10,970	144,193	36,307
AFS, Less than 12 months, Gross Unrealized Losses	0	136	6,171	321
AFS, 12 months or longer, Fair Value	164,307	160,432	23,374	4,137
AFS, 12 months or longer, Gross Unrealized Losses	7,979	7,278	2,249	15
AFS, Total Gross Unrealized Losses	7,979	7,414	8,420	336
Asset-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	10,411	21,586	43,472	50,005
AFS, Less than 12 months, Gross Unrealized Losses	47	187	815	402
AFS, 12 months or longer, Fair Value	60,100	61,972	50,088	17,372
AFS, 12 months or longer, Gross Unrealized Losses	2,088	2,632	2,399	130
AFS, Total Gross Unrealized Losses	2,135	2,819	3,214	532
Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	6,291	6,775	6,877	1,966
AFS, Less than 12 months, Gross Unrealized Losses	1,209	725	623	34
AFS, 12 months or longer, Fair Value	1,673	1,753	1,766	0
AFS, 12 months or longer, Gross Unrealized Losses	326	247	234	0
AFS, Total Gross Unrealized Losses	$ 1,535	$ 972	$ 857	$ 34

Securities - Debt Securities,_5

Securities - Debt Securities, Available-for-Sale (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	$ 1,402,600	$ 1,506,653	$ 1,537,420	$ 1,589,255
Gross Unrealized Gains	69	332	162	27,648
Gross Unrealized Losses	150,479	144,200	165,825	11,222
Investment Securities	1,252,190	1,362,785	1,371,757	1,605,681
U.S. Treasuries and government agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	197,592	197,875	198,154	185,085
Gross Unrealized Gains	0	0	0	98
Gross Unrealized Losses	22,195	19,456	23,161	742
Investment Securities	175,397	178,419	174,993	184,441
Obligations of states and municipalities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	538,194	547,896	550,590	651,000
Gross Unrealized Gains	28	44	12	20,285
Gross Unrealized Losses	82,360	79,578	96,695	5,718
Investment Securities	455,862	468,362	453,907	665,567
Residential mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	47,340	56,991	57,883	63,568
Gross Unrealized Gains	0	20	14	372
Gross Unrealized Losses	5,350	4,341	4,836	1,153
Investment Securities	41,990	52,670	53,061	62,787
Residential mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	323,519	349,123	365,983	245,794
Gross Unrealized Gains	13	12	2	863
Gross Unrealized Losses	27,428	27,985	26,690	2,349
Investment Securities	296,104	321,150	339,295	244,308
Commercial mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	37,558	59,409	61,810	78,830
Gross Unrealized Gains	25	58	75	411
Gross Unrealized Losses	1,497	1,635	1,952	358
Investment Securities	36,086	57,832	59,933	78,883
Commercial mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	172,286	190,542	191,709	170,048
Gross Unrealized Gains	0	97	10	2,492
Gross Unrealized Losses	7,979	7,414	8,420	336
Investment Securities	164,307	183,225	183,299	172,204
Asset-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	76,611	95,317	101,791	192,930
Gross Unrealized Gains	3	101	49	3,127
Gross Unrealized Losses	2,135	2,819	3,214	532
Investment Securities	74,479	92,599	98,626	195,525
Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	9,500	9,500	9,500	2,000
Gross Unrealized Gains	0	0	0	0
Gross Unrealized Losses	1,535	972	857	34
Investment Securities	$ 7,965	$ 8,528	$ 8,643	$ 1,966

Securities - Narrative (Detai_3

Securities - Narrative (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($) security	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($) security	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($) security	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	$ 1,506,653,000		$ 1,402,600,000		$ 1,537,420,000	$ 1,589,255,000
Investment Securities	1,362,785,000		1,252,190,000		1,371,757,000	1,605,681,000
Realized tax benefit (provision) gain (loss)	$ 0	$ 21,800	$ 23,300	$ (21,800)	95,300	800	$ (408,200)
Securities unrealized loss | security	451		402
Restricted stock, at cost	$ 9,129,000		$ 3,914,000		16,443,000	12,079,000
Asset Pledged as Collateral
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	799,300,000		834,800,000		637,100,000	498,100,000
Investment Securities	714,500,000		735,500,000		552,500,000	518,600,000
Community Bankers' Bank
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Restricted stock, at cost	50,000		50,000		50,000	50,000
U.S. Treasuries and government agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	197,875,000		197,592,000		198,154,000	185,085,000
Investment Securities	$ 178,419,000		$ 175,397,000		$ 174,993,000	184,441,000
Securities in unrealized loss positions | security	12		12		12
Residential mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	$ 56,991,000		$ 47,340,000		$ 57,883,000	63,568,000
Investment Securities	$ 52,670,000		$ 41,990,000		$ 53,061,000	62,787,000
Securities in unrealized loss positions | security	19		16		19
Commercial mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities in unrealized loss positions | security	31		16		31
State and Municipal Securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Securities in unrealized loss positions | security	214		202		230
Residential mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	$ 349,123,000		$ 323,519,000		$ 365,983,000	245,794,000
Investment Securities	$ 321,150,000		$ 296,104,000		$ 339,295,000	244,308,000
Securities in unrealized loss positions | security	108		96		109
Commercial mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	$ 190,542,000		$ 172,286,000		$ 191,709,000	170,048,000
Investment Securities	$ 183,225,000		$ 164,307,000		$ 183,299,000	172,204,000
Securities in unrealized loss positions | security	36		34		36
Asset-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	$ 95,317,000		$ 76,611,000		$ 101,791,000	192,930,000
Investment Securities	$ 92,599,000		$ 74,479,000		$ 98,626,000	195,525,000
Securities in unrealized loss positions | security	28		23		28
Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Amortized Cost	$ 9,500,000		$ 9,500,000		$ 9,500,000	2,000,000
Investment Securities	$ 8,528,000		$ 7,965,000		$ 8,643,000	$ 1,966,000
Securities in unrealized loss positions | security	3		3		3

Securities - Schedule of Real_3

Securities - Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Gross realized gains	$ 0	$ 727	$ 773	$ 727	$ 1,512	$ 0	$ 1,957
Gross realized losses	0	(623)	(884)	(623)	(1,966)	(4)	(13)
Proceeds from sales of securities	$ 0	$ 87,033	$ 77,780	$ 87,033	$ 195,907	$ 700	$ 49,233

Securities - Expected Maturit_3

Securities - Expected Maturity for Debt Securities, Available-for-Sale (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Amortized Cost
One Year or Less	$ 105,665	$ 68,159	$ 70,129
One to Five Years	463,737	570,231	584,396
Five to Ten Years	615,595	649,590	612,005
After Ten Years	217,603	218,673	270,890
Amortized Cost	1,402,600	1,506,653	1,537,420	$ 1,589,255
Fair Value
One Year or Less	102,003	66,192	68,449
One to Five Years	438,142	544,784	554,122
Five to Ten Years	538,874	577,651	538,804
After Ten Years	173,171	174,158	210,382
Fair Value	1,252,190	1,362,785	1,371,757	1,605,681
U.S. Treasuries and government agencies
Amortized Cost
One Year or Less	29,711	0	0
One to Five Years	40,637	59,546	39,854
Five to Ten Years	127,244	138,329	158,300
After Ten Years	0	0	0
Amortized Cost	197,592	197,875	198,154	185,085
Fair Value
One Year or Less	28,835	0	0
One to Five Years	35,757	55,500	37,439
Five to Ten Years	110,805	122,919	137,554
After Ten Years	0	0	0
Fair Value	175,397	178,419	174,993	184,441
Obligations of states and municipalities
Amortized Cost
One Year or Less	370	370	5,235
One to Five Years	12,935	10,947	1,563
Five to Ten Years	317,052	332,562	277,320
After Ten Years	207,837	204,017	266,472
Amortized Cost	538,194	547,896	550,590	651,000
Fair Value
One Year or Less	370	370	5,246
One to Five Years	11,884	10,204	1,529
Five to Ten Years	279,357	296,965	240,753
After Ten Years	164,251	160,823	206,379
Fair Value	455,862	468,362	453,907	665,567
Residential mortgage backed - agency
Amortized Cost
One Year or Less	42	42	42
One to Five Years	23,836	33,446	34,100
Five to Ten Years	23,462	23,503	23,741
After Ten Years	0	0	0
Amortized Cost	47,340	56,991	57,883	63,568
Fair Value
One Year or Less	42	42	42
One to Five Years	22,857	32,561	33,128
Five to Ten Years	19,091	20,067	19,891
After Ten Years	0	0	0
Fair Value	41,990	52,670	53,061	62,787
Residential mortgage backed - non-agency
Amortized Cost
One Year or Less	58,019	32,336	28,203
One to Five Years	160,253	209,368	265,190
Five to Ten Years	95,481	92,763	68,172
After Ten Years	9,766	14,656	4,418
Amortized Cost	323,519	349,123	365,983	245,794
Fair Value
One Year or Less	55,532	31,027	27,182
One to Five Years	150,656	198,301	247,662
Five to Ten Years	80,996	78,487	60,448
After Ten Years	8,920	13,335	4,003
Fair Value	296,104	321,150	339,295	244,308
Commercial mortgage backed - agency
Amortized Cost
One Year or Less	196	233	415
One to Five Years	31,090	52,796	56,622
Five to Ten Years	6,272	6,380	4,773
After Ten Years	0	0	0
Amortized Cost	37,558	59,409	61,810	78,830
Fair Value
One Year or Less	196	232	414
One to Five Years	29,955	51,524	54,960
Five to Ten Years	5,935	6,076	4,559
After Ten Years	0	0	0
Fair Value	36,086	57,832	59,933	78,883
Commercial mortgage backed - non-agency
Amortized Cost
One Year or Less	8,562	32,882	32,979
One to Five Years	158,575	152,507	153,572
Five to Ten Years	5,149	5,153	5,158
After Ten Years	0	0	0
Amortized Cost	172,286	190,542	191,709	170,048
Fair Value
One Year or Less	8,367	32,283	32,400
One to Five Years	151,823	146,728	146,812
Five to Ten Years	4,117	4,214	4,087
After Ten Years	0	0	0
Fair Value	164,307	183,225	183,299	172,204
Asset-backed
Amortized Cost
One Year or Less	8,765	2,296	3,255
One to Five Years	36,411	51,621	33,495
Five to Ten Years	31,435	41,400	65,041
After Ten Years	0	0	0
Amortized Cost	76,611	95,317	101,791	192,930
Fair Value
One Year or Less	8,661	2,238	3,165
One to Five Years	35,210	49,966	32,592
Five to Ten Years	30,608	40,395	62,869
After Ten Years	0	0	0
Fair Value	74,479	92,599	98,626	195,525
Other
Amortized Cost
One Year or Less	0	0	0
One to Five Years	0	0	0
Five to Ten Years	9,500	9,500	9,500
After Ten Years	0	0	0
Amortized Cost	9,500	9,500	9,500	2,000
Fair Value
One Year or Less	0	0	0
One to Five Years			0
Five to Ten Years	7,965	8,528	8,643
After Ten Years	0	0	0
Fair Value	$ 7,965	$ 8,528	$ 8,643	$ 1,966

Securities - Debt Securities,_6

Securities - Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	$ 73,774	$ 168,863	$ 586,464	$ 672,266
AFS, Less than 12 months, Gross Unrealized Losses	6,022	8,830	33,528	9,138
AFS, 12 months or longer, Fair Value	1,169,095	1,154,631	752,987	83,592
AFS, 12 months or longer, Gross Unrealized Losses	144,457	135,370	132,297	2,084
AFS, Total Gross Unrealized Losses	150,479	144,200	165,825	11,222
U.S. Treasuries and government agencies
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	0	0	28,399	134,379
AFS, Less than 12 months, Gross Unrealized Losses	0	0	1,131	392
AFS, 12 months or longer, Fair Value	175,397	178,419	146,594	10,082
AFS, 12 months or longer, Gross Unrealized Losses	22,195	19,456	22,030	350
AFS, Total Gross Unrealized Losses	22,195	19,456	23,161	742
Obligations of states and municipalities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	11,245	17,774	128,373	218,099
AFS, Less than 12 months, Gross Unrealized Losses	291	330	12,378	4,938
AFS, 12 months or longer, Fair Value	440,754	444,269	320,287	14,521
AFS, 12 months or longer, Gross Unrealized Losses	82,069	79,248	84,317	780
AFS, Total Gross Unrealized Losses	82,360	79,578	96,695	5,718
Residential mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	602	616	7,258	48,167
AFS, Less than 12 months, Gross Unrealized Losses	15	10	26	1,153
AFS, 12 months or longer, Fair Value	41,387	42,382	41,975	0
AFS, 12 months or longer, Gross Unrealized Losses	5,335	4,331	4,810	0
AFS, Total Gross Unrealized Losses	5,350	4,341	4,836	1,153
Residential mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	43,562	109,454	204,866	149,640
AFS, Less than 12 months, Gross Unrealized Losses	4,315	7,318	11,822	1,624
AFS, 12 months or longer, Fair Value	251,852	210,963	134,056	31,024
AFS, 12 months or longer, Gross Unrealized Losses	23,113	20,667	14,868	725
AFS, Total Gross Unrealized Losses	27,428	27,985	26,690	2,349
Commercial mortgage backed - agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	1,663	1,688	23,026	33,703
AFS, Less than 12 months, Gross Unrealized Losses	145	124	562	274
AFS, 12 months or longer, Fair Value	33,625	54,441	34,847	6,456
AFS, 12 months or longer, Gross Unrealized Losses	1,352	1,511	1,390	84
AFS, Total Gross Unrealized Losses	1,497	1,635	1,952	358
Commercial mortgage backed - non-agency
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	0	10,970	144,193	36,307
AFS, Less than 12 months, Gross Unrealized Losses	0	136	6,171	321
AFS, 12 months or longer, Fair Value	164,307	160,432	23,374	4,137
AFS, 12 months or longer, Gross Unrealized Losses	7,979	7,278	2,249	15
AFS, Total Gross Unrealized Losses	7,979	7,414	8,420	336
Asset-backed
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	10,411	21,586	43,472	50,005
AFS, Less than 12 months, Gross Unrealized Losses	47	187	815	402
AFS, 12 months or longer, Fair Value	60,100	61,972	50,088	17,372
AFS, 12 months or longer, Gross Unrealized Losses	2,088	2,632	2,399	130
AFS, Total Gross Unrealized Losses	2,135	2,819	3,214	532
Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
AFS, Less than 12 months, Fair Value	6,291	6,775	6,877	1,966
AFS, Less than 12 months, Gross Unrealized Losses	1,209	725	623	34
AFS, 12 months or longer, Fair Value	1,673	1,753	1,766	0
AFS, 12 months or longer, Gross Unrealized Losses	326	247	234	0
AFS, Total Gross Unrealized Losses	$ 1,535	$ 972	$ 857	$ 34

Loans - Schedule of Accounts, N

Loans - Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023		Dec. 31, 2022		Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 2,000,969	$ 1,951,738		$ 1,887,221				$ 1,745,073
Allowance for credit losses	(25,919)	(25,704)	[1]	(21,039)	[1]	$ (23,362)	$ (29,061)	(31,709)
Loans, net	1,975,050	1,926,034		1,866,182				1,713,364
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,198,840	1,154,210		1,109,315				1,031,641
Allowance for credit losses	(18,639)	(18,409)		(15,477)		(15,548)	(22,773)	(25,112)
Owner-occupied commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	124,466	125,657		127,114				125,613
Allowance for credit losses	(719)	(556)		(635)		(724)	(663)	(611)
Acquisition, construction & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	92,730	99,886		94,450				109,518
Allowance for credit losses	(1,319)	(1,852)		(2,082)		(3,607)	(2,316)	(2,189)
Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	59,142	50,101		53,514				58,818
Allowance for credit losses	(612)	(700)		(438)		(214)	(113)	(165)
Single family residential (1-4 units)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	522,944	518,775		499,362				415,594
Allowance for credit losses	(4,520)	(4,030)		(2,379)		(1,519)	(1,451)	(2,434)
Consumer non-real estate and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	2,847	3,109		3,466				3,889
Allowance for credit losses	$ (110)	$ (157)		$ (28)		$ (19)	$ (14)	$ (18)
[1] Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies in Notes to Consolidated Financial Statements for additional information related to our adoption of this standard.

Loans - Narrative (Details)

Loans - Narrative (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) loan	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($) loan	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unamortized loan fee	$ 3,300,000	$ 4,400,000		$ 3,400,000	$ 3,300,000
Loans, net	$ 1,866,182,000	$ 1,713,364,000		1,975,050,000	1,926,034,000
Number of troubled debt restructurings loans | loan	0	0	0
Number of loans, subsequent default | loan	0	0
Amount holds in loans on deferral under CARES Act provisions	$ 35,900,000	$ 173,100,000
Other real estate owned	0	0	$ 0
Loans in the process of foreclosure	0	0	$ 0
Paycheck Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net	$ 7,900,000	$ 37,800,000		$ 5,700,000	$ 6,400,000

Loans - Activity in the Allowan

Loans - Activity in the Allowance for Loan Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance, beginning of period		$ 21,039		$ 31,709	$ 21,039	$ 31,709	$ 31,709	$ 32,697	$ 24,201
Provision for (recapture of) loan losses	$ 214	515	$ (2,538)	(2,638)	729	(5,176)	(7,466)	(1,002)	12,648
Loans charged-off	(104)	(17)	(3,288)	(69)	(121)	(3,357)	(3,450)	(242)	(5,996)
Recoveries	9	34	127	59	43	186	246	256	1,844
Balance, end of period							21,039	31,709	32,697
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance, beginning of period		15,477		25,112	15,477	25,112	25,112	23,356	11,396
Provision for (recapture of) loan losses			(3,968)	(2,321)		(6,289)	(6,391)	1,870	11,946
Loans charged-off	0	0	(3,261)	(21)	0	(3,282)	(3,282)	(127)	0
Recoveries	3	28	4	3	31	7	38	13	14
Balance, end of period							15,477	25,112	23,356
Owner-occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance, beginning of period		635		611	635	611	611	1,196	2,310
Provision for (recapture of) loan losses			61	52		113	24	(602)	(1,114)
Loans charged-off	0	0	0	0	0	0	0	0	0
Recoveries	0	0	0	0	0	0	0	17	0
Balance, end of period							635	611	1,196
Acquisition, construction & development
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance, beginning of period		2,082		3,369	2,082	3,369	3,369	4,255	1,697
Provision for (recapture of) loan losses			1,291	127		1,418	(1,287)	(886)	2,558
Loans charged-off	0	0	0	0	0	0	0	0	0
Recoveries	0	0	0	0	0	0	0	0	0
Balance, end of period							2,082	3,369	4,255
Commercial & industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance, beginning of period		438		160	438	160	160	68	5,952
Provision for (recapture of) loan losses			101	(32)		69	298	72	(1,752)
Loans charged-off	(29)	0	0	(20)	(29)	(20)	(20)	0	(5,858)
Recoveries	0	0	0	0	0	0	0	20	1,726
Balance, end of period							438	160	68
Single family residential (1-4 units)
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance, beginning of period		2,379		2,434	2,379	2,434	2,434	3,757	2,791
Provision for (recapture of) loan losses			(49)	(1,030)		(1,079)	(239)	(1,490)	945
Loans charged-off	0	0	0	0	0	0	0	(16)	(44)
Recoveries	3	3	117	47	6	164	184	183	65
Balance, end of period							2,379	2,434	3,757
Consumer non-real estate and other
Financing Receivable, Allowance for Credit Loss [Line Items]
Balance, beginning of period		28		23	28	23	23	65	55
Provision for (recapture of) loan losses			26	15		41	129	34	65
Loans charged-off	(75)	(17)	(27)	(28)	(92)	(55)	(148)	(99)	(94)
Recoveries	$ 3	$ 3	$ 6	$ 9	$ 6	$ 15	24	23	39
Balance, end of period							$ 28	$ 23	$ 65

Loans - Allowance for Loan Loss

Loans - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Allowance for loan losses
Individually evaluated for impairment			$ 239	$ 7,679
Collectively evaluated for impairment			20,800	24,030
Total ending allowance balance			21,039	31,709	$ 32,697	$ 24,201
Loan balance:
Individually evaluated for impairment			9,069	30,784
Collectively evaluated for impairment			1,878,152	1,714,289
Total	$ 2,000,969	$ 1,951,738	1,887,221	1,745,073
Commercial real estate
Allowance for loan losses
Individually evaluated for impairment			41	7,558
Collectively evaluated for impairment			15,436	17,554
Total ending allowance balance			15,477	25,112	23,356	11,396
Loan balance:
Individually evaluated for impairment			331	20,110
Collectively evaluated for impairment			1,108,984	1,011,531
Total	1,198,840	1,154,210	1,109,315	1,031,641
Owner-occupied commercial real estate
Allowance for loan losses
Individually evaluated for impairment			102	14
Collectively evaluated for impairment			533	597
Total ending allowance balance			635	611	1,196	2,310
Loan balance:
Individually evaluated for impairment			2,580	2,843
Collectively evaluated for impairment			124,534	122,770
Total	124,466	125,657	127,114	125,613
Acquisition, construction & development
Allowance for loan losses
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			2,082	3,369
Total ending allowance balance			2,082	3,369	4,255	1,697
Loan balance:
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			94,450	109,518
Total	92,730	99,886	94,450	109,518
Commercial & industrial
Allowance for loan losses
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			438	160
Total ending allowance balance			438	160	68	5,952
Loan balance:
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			53,514	58,818
Total	59,142	50,101	53,514	58,818
Single family residential (1-4 units)
Allowance for loan losses
Individually evaluated for impairment			96	107
Collectively evaluated for impairment			2,283	2,327
Total ending allowance balance			2,379	2,434	3,757	2,791
Loan balance:
Individually evaluated for impairment			6,158	7,831
Collectively evaluated for impairment			493,204	407,763
Total	522,944	518,775	499,362	415,594
Consumer non-real estate and other
Allowance for loan losses
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			28	23
Total ending allowance balance			28	23	$ 65	$ 55
Loan balance:
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			3,466	3,889
Total	$ 2,847	$ 3,109	$ 3,466	$ 3,889

Loans - Aging and Non-Accrual L

Loans - Aging and Non-Accrual Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	$ 2,000,969	$ 1,951,738	$ 1,887,221	$ 1,745,073
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	2,923	3,246	5,497	26,261
Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,795	3,949	2,107	21,507
30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,061	1,515	1,403	507
60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	2,106	158	0
90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	734	328	546	21,000
Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,999,174	1,947,789	1,885,114	1,723,566
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,198,840	1,154,210	1,109,315	1,031,641
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	0	0	0	19,594
Commercial real estate | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	2,075	0	19,531
Commercial real estate | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Commercial real estate | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	2,075	0	0
Commercial real estate | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	19,531
Commercial real estate | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,198,840	1,152,135	1,109,315	1,012,110
Owner-occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	124,466	125,657	127,114	125,613
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	1,066	1,121	1,184	1,399
Owner-occupied commercial real estate | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,546	0	0	941
Owner-occupied commercial real estate | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	873	0	0	121
Owner-occupied commercial real estate | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Owner-occupied commercial real estate | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	673	0	0	820
Owner-occupied commercial real estate | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	122,920	125,657	127,114	124,672
Acquisition, construction & development
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	92,730	99,886	94,450	109,518
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	0	0	0	0
Acquisition, construction & development | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Acquisition, construction & development | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Acquisition, construction & development | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Acquisition, construction & development | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Acquisition, construction & development | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	92,730	99,886	94,450	109,518
Commercial & industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	59,142	50,101	53,514	58,818
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	0	0	0	0
Commercial & industrial | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	31	0	21
Commercial & industrial | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	21
Commercial & industrial | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	31	0	0
Commercial & industrial | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Commercial & industrial | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	59,142	50,070	53,514	58,797
Single family residential (1-4 units)
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	522,944	518,775	499,362	415,594
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	1,857	2,125	4,313	5,268
Single family residential (1-4 units) | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	207	1,843	2,103	1,014
Single family residential (1-4 units) | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	146	1,515	1,403	365
Single family residential (1-4 units) | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	154	0
Single family residential (1-4 units) | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	61	328	546	649
Single family residential (1-4 units) | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	522,737	516,932	497,259	414,580
Consumer non-real estate and other
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	2,847	3,109	3,466	3,889
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	0	0	0	0
Consumer non-real estate and other | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	42	0	4	0
Consumer non-real estate and other | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	42	0	0	0
Consumer non-real estate and other | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	4	0
Consumer non-real estate and other | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Consumer non-real estate and other | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	$ 2,805	$ 3,109	$ 3,462	$ 3,889

Loans - Impaired Loans by Portf

Loans - Impaired Loans by Portfolio Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
With no related allowance recorded:
Recorded Investment	$ 6,335	$ 8,000
Unpaid Principal Balance	6,970	8,690
Average Recorded Investment	6,422	8,285
Interest Income Recognized	310	374
With an allowance recorded:
Recorded Investment	2,735	22,785
Unpaid Principal Balance	2,869	23,037
Related Allowance	239	7,679
Average Recorded Investment	2,803	22,863
Interest Income Recognized	154	184
Commercial real estate
With no related allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With an allowance recorded:
Recorded Investment	331	20,110
Unpaid Principal Balance	331	20,236
Related Allowance	41	7,558
Average Recorded Investment	350	20,130
Interest Income Recognized	23	30
Owner-occupied commercial real estate
With no related allowance recorded:
Recorded Investment	1,184	2,327
Unpaid Principal Balance	1,394	2,460
Average Recorded Investment	1,291	2,437
Interest Income Recognized	97	129
With an allowance recorded:
Recorded Investment	1,397	516
Unpaid Principal Balance	1,397	516
Related Allowance	102	14
Average Recorded Investment	1,420	530
Interest Income Recognized	74	32
Acquisition, construction & development
With no related allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With an allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Commercial & industrial
With no related allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With an allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0
Interest Income Recognized	0	0
Single family residential (1-4 units)
With no related allowance recorded:
Recorded Investment	5,151	5,673
Unpaid Principal Balance	5,576	6,230
Average Recorded Investment	5,131	5,848
Interest Income Recognized	213	245
With an allowance recorded:
Recorded Investment	1,007	2,159
Unpaid Principal Balance	1,141	2,285
Related Allowance	96	107
Average Recorded Investment	1,033	2,203
Interest Income Recognized	57	122
Consumer non-real estate and other
With no related allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With an allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	$ 0	$ 0

Loans - Loans by Credit Quality

Loans - Loans by Credit Quality Indicators (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	$ 2,000,969	$ 1,951,738	$ 1,887,221	$ 1,745,073
Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans			1,752,599	1,536,626
Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans			65,761	114,323
Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans			68,861	94,124
Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans			0	0
Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans			0	0
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,198,840	1,154,210	1,109,315	1,031,641
Commercial real estate | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,067,364	1,048,392	1,011,025	868,787
Commercial real estate | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	71,843	54,664	62,907	75,397
Commercial real estate | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	59,633	51,154	35,383	87,457
Commercial real estate | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Commercial real estate | Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Owner-occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	124,466	125,657	127,114	125,613
Owner-occupied commercial real estate | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	119,271	122,006	121,621	122,065
Owner-occupied commercial real estate | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	1,947	1,963	2,149
Owner-occupied commercial real estate | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	5,195	1,704	3,530	1,399
Owner-occupied commercial real estate | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Owner-occupied commercial real estate | Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Acquisition, construction & development
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	92,730	99,886	94,450	109,518
Acquisition, construction & development | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	69,858	52,786	68,220	72,895
Acquisition, construction & development | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	779	22,900	836	36,623
Acquisition, construction & development | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	22,093	24,200	25,394	0
Acquisition, construction & development | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Acquisition, construction & development | Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Commercial & industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	59,142	50,101	53,514	58,818
Commercial & industrial | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	59,142	50,101	53,273	58,763
Commercial & industrial | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	55
Commercial & industrial | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	241	0
Commercial & industrial | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Commercial & industrial | Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Single family residential (1-4 units)
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	522,944	518,775	499,362	415,594
Single family residential (1-4 units) | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	521,087	516,649	494,994	410,227
Single family residential (1-4 units) | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	55	99
Single family residential (1-4 units) | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,857	2,126	4,313	5,268
Single family residential (1-4 units) | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Single family residential (1-4 units) | Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Consumer non-real estate and other
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	2,847	3,109	3,466	3,889
Consumer non-real estate and other | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	2,847	3,109	3,466	3,889
Consumer non-real estate and other | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Consumer non-real estate and other | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Consumer non-real estate and other | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Consumer non-real estate and other | Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	$ 0	$ 0	$ 0	$ 0

Loans - Schedule of Accounts,_2

Loans - Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023		Dec. 31, 2022		Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 2,000,969	$ 1,951,738		$ 1,887,221				$ 1,745,073
Allowance for credit losses	(25,919)	(25,704)	[1]	(21,039)	[1]	$ (23,362)	$ (29,061)	(31,709)
Loans, net	1,975,050	1,926,034		1,866,182				1,713,364
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,198,840	1,154,210		1,109,315				1,031,641
Allowance for credit losses	(18,639)	(18,409)		(15,477)		(15,548)	(22,773)	(25,112)
Owner-occupied commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	124,466	125,657		127,114				125,613
Allowance for credit losses	(719)	(556)		(635)		(724)	(663)	(611)
Acquisition, construction & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	92,730	99,886		94,450				109,518
Allowance for credit losses	(1,319)	(1,852)		(2,082)		(3,607)	(2,316)	(2,189)
Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	59,142	50,101		53,514				58,818
Allowance for credit losses	(612)	(700)		(438)		(214)	(113)	(165)
Single family residential (1-4 units)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	522,944	518,775		499,362				415,594
Allowance for credit losses	(4,520)	(4,030)		(2,379)		(1,519)	(1,451)	(2,434)
Consumer non-real estate and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	2,847	3,109		3,466				3,889
Allowance for credit losses	$ (110)	$ (157)		$ (28)		$ (19)	$ (14)	$ (18)
[1] Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies in Notes to Consolidated Financial Statements for additional information related to our adoption of this standard.

Loans - Narrative (Details)_2

Loans - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unamortized loan fee	$ 3,400	$ 3,300	$ 3,300	$ 4,400
Loans, net	1,975,050	1,926,034	1,866,182	1,713,364
Paycheck Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net	$ 5,700	$ 6,400	$ 7,900	$ 37,800

Loans - Schedule of Accounts,_3

Loans - Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023		Dec. 31, 2022		Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 2,000,969	$ 1,951,738		$ 1,887,221				$ 1,745,073
Allowance for credit losses	(25,919)	(25,704)	[1]	(21,039)	[1]	$ (23,362)	$ (29,061)	(31,709)
Loans, net	1,975,050	1,926,034		1,866,182				1,713,364
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,198,840	1,154,210		1,109,315				1,031,641
Allowance for credit losses	(18,639)	(18,409)		(15,477)		(15,548)	(22,773)	(25,112)
Owner-occupied commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	124,466	125,657		127,114				125,613
Allowance for credit losses	(719)	(556)		(635)		(724)	(663)	(611)
Acquisition, construction & development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	92,730	99,886		94,450				109,518
Allowance for credit losses	(1,319)	(1,852)		(2,082)		(3,607)	(2,316)	(2,189)
Commercial & industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	59,142	50,101		53,514				58,818
Allowance for credit losses	(612)	(700)		(438)		(214)	(113)	(165)
Single family residential (1-4 units)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	522,944	518,775		499,362				415,594
Allowance for credit losses	(4,520)	(4,030)		(2,379)		(1,519)	(1,451)	(2,434)
Consumer non-real estate and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	2,847	3,109		3,466				3,889
Allowance for credit losses	$ (110)	$ (157)		$ (28)		$ (19)	$ (14)	$ (18)
[1] Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies in Notes to Consolidated Financial Statements for additional information related to our adoption of this standard.

Loans - Narrative (Details)_2_3

Loans - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Unamortized loan fee	$ 3,400	$ 3,300	$ 3,300	$ 4,400
Loans, net	1,975,050	1,926,034	1,866,182	1,713,364
Paycheck Protection Program
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net	$ 5,700	$ 6,400	$ 7,900	$ 37,800

Premises and Equipment - Schedu

Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Premises and equipment, gross			$ 90,330	$ 80,692
Less accumulated depreciation			(37,160)	(43,817)
Premises and equipment, net	$ 56,183	$ 55,157	53,170	36,875
Land
Property, Plant and Equipment [Line Items]
Premises and equipment, gross			14,626	12,791
Premises
Property, Plant and Equipment [Line Items]
Premises and equipment, gross			56,999	44,109
Furniture and equipment
Property, Plant and Equipment [Line Items]
Premises and equipment, gross			$ 18,705	$ 23,792

Premises and Equipment - Narrat

Premises and Equipment - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 684	$ 777	$ 1,354	$ 1,522	$ 3,053	$ 3,205	$ 2,937
Gain on sold premises					$ 4,500	$ 1,100

Allowance for Credit Losses - A

Allowance for Credit Losses - Activity in the Allowance for Loan Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended						6 Months Ended			12 Months Ended
	Jun. 30, 2023		Mar. 31, 2023		Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023		Jun. 30, 2022	Dec. 31, 2022		Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 25,704	[1]	$ 21,039	[1]	$ 29,061	$ 31,709	$ 21,039	[1]	$ 31,709	$ 31,709
Provision for (recapture of) credit losses	310		523				833
Provision for (recapture of) loan losses	214		515		(2,538)	(2,638)	729		(5,176)	(7,466)		$ (1,002)	$ 12,648
Charge-offs	(104)		(17)		(3,288)	(69)	(121)		(3,357)	(3,450)		(242)	(5,996)
Recoveries	9		34		127	59	43		186	246		256	1,844
Balance, end of period	25,919		25,704	[1]	23,362	29,061	25,919		23,362	21,039	[1]	31,709
Impact of CECL Adoption
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period			4,125				4,125
Balance, end of period										4,125
Commercial real estate
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	18,409		15,477		22,773	25,112	15,477		25,112	25,112
Provision for (recapture of) credit losses	227		218				445
Provision for (recapture of) loan losses					(3,968)	(2,321)			(6,289)	(6,391)		1,870	11,946
Charge-offs	0		0		(3,261)	(21)	0		(3,282)	(3,282)		(127)	0
Recoveries	3		28		4	3	31		7	38		13	14
Balance, end of period	18,639		18,409		15,548	22,773	18,639		15,548	15,477		25,112
Commercial real estate | Impact of CECL Adoption
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period			2,686				2,686
Balance, end of period										2,686
Owner-occupied commercial real estate
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	556		635		663	611	635		611	611
Provision for (recapture of) credit losses	163		(73)				90
Provision for (recapture of) loan losses					61	52			113	24		(602)	(1,114)
Charge-offs	0		0		0	0	0		0	0		0	0
Recoveries	0		0		0	0	0		0	0		17	0
Balance, end of period	719		556		724	663	719		724	635		611
Owner-occupied commercial real estate | Impact of CECL Adoption
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period			(6)				(6)
Balance, end of period										(6)
Acquisition, construction & development
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	1,852		2,082		2,316	2,189	2,082		2,189	2,189
Provision for (recapture of) credit losses	(533)		410				(123)
Provision for (recapture of) loan losses					1,291	127			1,418	(1,287)		(886)	2,558
Charge-offs	0		0		0	0	0		0	0		0	0
Recoveries	0		0		0	0	0		0	0		0	0
Balance, end of period	1,319		1,852		3,607	2,316	1,319		3,607	2,082		2,189
Acquisition, construction & development | Impact of CECL Adoption
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period			(640)				(640)
Balance, end of period										(640)
Commercial & industrial
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	700		438		113	165	438		165	165
Provision for (recapture of) credit losses	(59)		25				(34)
Provision for (recapture of) loan losses					101	(32)			69	298		72	(1,752)
Charge-offs	(29)		0		0	(20)	(29)		(20)	(20)		0	(5,858)
Recoveries	0		0		0	0	0		0	0		20	1,726
Balance, end of period	612		700		214	113	612		214	438		165
Commercial & industrial | Impact of CECL Adoption
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period			237				237
Balance, end of period										237
Single family residential (1-4 units)
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	4,030		2,379		1,451	2,434	2,379		2,434	2,434
Provision for (recapture of) credit losses	487		(13)				474
Provision for (recapture of) loan losses					(49)	(1,030)			(1,079)	(239)		(1,490)	945
Charge-offs	0		0		0	0	0		0	0		(16)	(44)
Recoveries	3		3		117	47	6		164	184		183	65
Balance, end of period	4,520		4,030		1,519	1,451	4,520		1,519	2,379		2,434
Single family residential (1-4 units) | Impact of CECL Adoption
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period			1,661				1,661
Balance, end of period										1,661
Consumer non-real estate and other
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	157		28		14	18	28		18	18
Provision for (recapture of) credit losses	25		(44)				(19)
Provision for (recapture of) loan losses					26	15			41	129		34	65
Charge-offs	(75)		(17)		(27)	(28)	(92)		(55)	(148)		(99)	(94)
Recoveries	3		3		6	9	6		15	24		23	$ 39
Balance, end of period	110		157		19	14	110		19	28		18
Consumer non-real estate and other | Impact of CECL Adoption
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period			187				187
Balance, end of period										187
Unallocated reserve
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	0		0		1,731	1,180	0		1,180	1,180
Provision for (recapture of) credit losses	0		0				0
Provision for (recapture of) loan losses					0	551			551
Charge-offs	0		0		0	0	0		0
Recoveries	0		0		0	0	0		0
Balance, end of period	$ 0		0		$ 1,731	$ 1,731	0		$ 1,731	0		$ 1,180
Unallocated reserve | Impact of CECL Adoption
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period			$ 0				$ 0
Balance, end of period										$ 0
[1] Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies in Notes to Consolidated Financial Statements for additional information related to our adoption of this standard.

Allowance for Credit Losses -_2

Allowance for Credit Losses - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023		Dec. 31, 2022		Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Allowance for loan losses
Individually evaluated for impairment				$ 239				$ 7,679
Collectively evaluated for impairment				20,800				24,030
Total ending allowance balance	$ 25,919	$ 25,704	[1]	21,039	[1]	$ 23,362	$ 29,061	31,709
Loan balance:
Individually evaluated for impairment				9,069				30,784
Collectively evaluated for impairment				1,878,152				1,714,289
Total ending loan balance	2,000,969	1,951,738		1,887,221				1,745,073
Commercial real estate
Allowance for loan losses
Individually evaluated for impairment				41				7,558
Collectively evaluated for impairment				15,436				17,554
Total ending allowance balance	18,639	18,409		15,477		15,548	22,773	25,112
Loan balance:
Individually evaluated for impairment				331				20,110
Collectively evaluated for impairment				1,108,984				1,011,531
Total ending loan balance	1,198,840	1,154,210		1,109,315				1,031,641
Owner-occupied commercial real estate
Allowance for loan losses
Individually evaluated for impairment				102				14
Collectively evaluated for impairment				533				597
Total ending allowance balance	719	556		635		724	663	611
Loan balance:
Individually evaluated for impairment				2,580				2,843
Collectively evaluated for impairment				124,534				122,770
Total ending loan balance	124,466	125,657		127,114				125,613
Acquisition, construction & development
Allowance for loan losses
Individually evaluated for impairment				0				0
Collectively evaluated for impairment				2,082				3,369
Total ending allowance balance	1,319	1,852		2,082		3,607	2,316	2,189
Loan balance:
Individually evaluated for impairment				0				0
Collectively evaluated for impairment				94,450				109,518
Total ending loan balance	92,730	99,886		94,450				109,518
Commercial & industrial
Allowance for loan losses
Individually evaluated for impairment				0				0
Collectively evaluated for impairment				438				160
Total ending allowance balance	612	700		438		214	113	165
Loan balance:
Individually evaluated for impairment				0				0
Collectively evaluated for impairment				53,514				58,818
Total ending loan balance	59,142	50,101		53,514				58,818
Single family residential (1-4 units)
Allowance for loan losses
Individually evaluated for impairment				96				107
Collectively evaluated for impairment				2,283				2,327
Total ending allowance balance	4,520	4,030		2,379		1,519	1,451	2,434
Loan balance:
Individually evaluated for impairment				6,158				7,831
Collectively evaluated for impairment				493,204				407,763
Total ending loan balance	522,944	518,775		499,362				415,594
Consumer non-real estate and other
Allowance for loan losses
Individually evaluated for impairment				0				0
Collectively evaluated for impairment				28				23
Total ending allowance balance	110	157		28		19	14	18
Loan balance:
Individually evaluated for impairment				0				0
Collectively evaluated for impairment				3,466				3,889
Total ending loan balance	2,847	3,109		3,466				3,889
Unallocated reserve
Allowance for loan losses
Individually evaluated for impairment				0
Collectively evaluated for impairment				0
Total ending allowance balance	$ 0	$ 0		0		$ 1,731	$ 1,731	$ 1,180
Loan balance:
Individually evaluated for impairment				0
Collectively evaluated for impairment				0
Total ending loan balance				$ 0
[1] Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies in Notes to Consolidated Financial Statements for additional information related to our adoption of this standard.

Allowance for Credit Losses - I

Allowance for Credit Losses - Impaired Loans by Portfolio Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
With no related allowance recorded:
Recorded Investment	$ 6,335	$ 8,000
Unpaid Principal Balance	6,970	8,690
Average Recorded Investment	6,422	8,285
Interest Income Recognized	310	374
With an allowance recorded:
Recorded Investment	2,735	22,785
Unpaid Principal Balance	2,869	23,037
Related Allowance	239	7,679
Average Recorded Investment	2,803	22,863
Interest Income Recognized	154	184
Commercial real estate
With no related allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With an allowance recorded:
Recorded Investment	331	20,110
Unpaid Principal Balance	331	20,236
Related Allowance	41	7,558
Average Recorded Investment	350	20,130
Interest Income Recognized	23	30
Owner-occupied commercial real estate
With no related allowance recorded:
Recorded Investment	1,184	2,327
Unpaid Principal Balance	1,394	2,460
Average Recorded Investment	1,291	2,437
Interest Income Recognized	97	129
With an allowance recorded:
Recorded Investment	1,397	516
Unpaid Principal Balance	1,397	516
Related Allowance	102	14
Average Recorded Investment	1,420	530
Interest Income Recognized	74	32
Acquisition, construction & development
With no related allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With an allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Commercial & industrial
With no related allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With an allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0
Interest Income Recognized	0	0
Single family residential (1-4 units)
With no related allowance recorded:
Recorded Investment	5,151	5,673
Unpaid Principal Balance	5,576	6,230
Average Recorded Investment	5,131	5,848
Interest Income Recognized	213	245
With an allowance recorded:
Recorded Investment	1,007	2,159
Unpaid Principal Balance	1,141	2,285
Related Allowance	96	107
Average Recorded Investment	1,033	2,203
Interest Income Recognized	57	122
Consumer non-real estate and other
With no related allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With an allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	$ 0	$ 0

Allowance for Credit Losses -_3

Allowance for Credit Losses - Aging and Non-Accrual Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	$ 2,000,969	$ 1,951,738	$ 1,887,221	$ 1,745,073
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	2,923	3,246	5,497	26,261
Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,795	3,949	2,107	21,507
30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,061	1,515	1,403	507
60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	2,106	158	0
90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	734	328	546	21,000
Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,999,174	1,947,789	1,885,114	1,723,566
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,198,840	1,154,210	1,109,315	1,031,641
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	0	0	0	19,594
Commercial real estate | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	2,075	0	19,531
Commercial real estate | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Commercial real estate | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	2,075	0	0
Commercial real estate | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	19,531
Commercial real estate | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,198,840	1,152,135	1,109,315	1,012,110
Owner-occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	124,466	125,657	127,114	125,613
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	1,066	1,121	1,184	1,399
Owner-occupied commercial real estate | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,546	0	0	941
Owner-occupied commercial real estate | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	873	0	0	121
Owner-occupied commercial real estate | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Owner-occupied commercial real estate | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	673	0	0	820
Owner-occupied commercial real estate | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	122,920	125,657	127,114	124,672
Acquisition, construction & development
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	92,730	99,886	94,450	109,518
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	0	0	0	0
Acquisition, construction & development | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Acquisition, construction & development | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Acquisition, construction & development | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Acquisition, construction & development | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Acquisition, construction & development | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	92,730	99,886	94,450	109,518
Commercial & industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	59,142	50,101	53,514	58,818
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	0	0	0	0
Commercial & industrial | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	31	0	21
Commercial & industrial | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	21
Commercial & industrial | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	31	0	0
Commercial & industrial | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Commercial & industrial | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	59,142	50,070	53,514	58,797
Single family residential (1-4 units)
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	522,944	518,775	499,362	415,594
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	1,857	2,125	4,313	5,268
Single family residential (1-4 units) | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	207	1,843	2,103	1,014
Single family residential (1-4 units) | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	146	1,515	1,403	365
Single family residential (1-4 units) | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	154	0
Single family residential (1-4 units) | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	61	328	546	649
Single family residential (1-4 units) | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	522,737	516,932	497,259	414,580
Consumer non-real estate and other
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	2,847	3,109	3,466	3,889
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	0	0	0	0
Consumer non-real estate and other | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	42	0	4	0
Consumer non-real estate and other | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	42	0	0	0
Consumer non-real estate and other | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	4	0
Consumer non-real estate and other | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Consumer non-real estate and other | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	$ 2,805	$ 3,109	$ 3,462	$ 3,889

Allowance for Credit Losses - L

Allowance for Credit Losses - Loans by Credit Quality Indicators (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	$ 2,000,969	$ 1,951,738			$ 2,000,969		$ 1,887,221	$ 1,745,073
Current period gross charge-offs
Total	104	17	$ 3,288	$ 69	121	$ 3,357	3,450	242	$ 5,996
Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
Total							1,752,599	1,536,626
Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
Total							65,761	114,323
Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
Total							68,861	94,124
Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
Total							0	0
Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
Total							0	0
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	109,677	51,800			109,677
2022	284,407	283,500			284,407
2021	217,324	216,449			217,324
2020	24,134	24,431			24,134
2019	84,288	88,885			84,288
Prior	474,035	484,836			474,035
Revolving Loans	4,975	4,309			4,975
Total	1,198,840	1,154,210			1,198,840		1,109,315	1,031,641
Current period gross charge-offs
2023		0			0
2022		0			0
2021		0			0
2020		0			0
2019		0			0
Prior		0			0
Revolving Loans		0			0
Total	0	0	3,261	21	0	3,282	3,282	127	0
Commercial real estate | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	109,677	51,800			109,677
2022	268,807	282,900			268,807
2021	170,100	214,098			170,100
2020	15,736	15,998			15,736
2019	75,506	76,014			75,506
Prior	422,563	403,273			422,563
Revolving Loans	4,975	4,309			4,975
Total	1,067,364	1,048,392			1,067,364		1,011,025	868,787
Commercial real estate | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	15,000	0			15,000
2021	44,873	0			44,873
2020	8,398	8,433			8,398
2019	1,266	5,302			1,266
Prior	2,306	40,929			2,306
Revolving Loans	0	0			0
Total	71,843	54,664			71,843		62,907	75,397
Commercial real estate | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	600	600			600
2021	2,351	2,351			2,351
2020	0	0			0
2019	7,516	7,569			7,516
Prior	49,166	40,634			49,166
Revolving Loans	0	0			0
Total	59,633	51,154			59,633		35,383	87,457
Commercial real estate | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Commercial real estate | Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Owner-occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	2,569	823			2,569
2022	30,300	30,332			30,300
2021	9,622	9,857			9,622
2020	15,225	15,463			15,225
2019	13,021	13,686			13,021
Prior	49,194	53,111			49,194
Revolving Loans	4,535	2,385			4,535
Total	124,466	125,657			124,466		127,114	125,613
Current period gross charge-offs
2023		0			0
2022		0			0
2021		0			0
2020		0			0
2019		0			0
Prior		0			0
Revolving Loans		0			0
Total	0	0	0	0	0	0	0	0	0
Owner-occupied commercial real estate | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	2,569	823			2,569
2022	29,761	30,039			29,761
2021	9,622	9,857			9,622
2020	15,225	15,463			15,225
2019	13,021	13,686			13,021
Prior	44,538	49,753			44,538
Revolving Loans	4,535	2,385			4,535
Total	119,271	122,006			119,271		121,621	122,065
Owner-occupied commercial real estate | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	1,947			0
Revolving Loans	0	0			0
Total	0	1,947			0		1,963	2,149
Owner-occupied commercial real estate | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	539	293			539
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	4,656	1,411			4,656
Revolving Loans	0	0			0
Total	5,195	1,704			5,195		3,530	1,399
Owner-occupied commercial real estate | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Owner-occupied commercial real estate | Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Acquisition, construction & development
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	2,941	1,275			2,941
2022	26,843	28,498			26,843
2021	14,504	10,995			14,504
2020	0	0			0
2019	779	10,067			779
Prior	46,053	47,691			46,053
Revolving Loans	1,610	1,360			1,610
Total	92,730	99,886			92,730		94,450	109,518
Current period gross charge-offs
2023		0			0
2022		0			0
2021		0			0
2020		0			0
2019		0			0
Prior		0			0
Revolving Loans		0			0
Total	0	0	0	0	0	0	0	0	0
Acquisition, construction & development | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	2,941	1,275			2,941
2022	26,843	28,498			26,843
2021	14,504	10,995			14,504
2020	0	0			0
2019	0	9,260			0
Prior	23,960	1,398			23,960
Revolving Loans	1,610	1,360			1,610
Total	69,858	52,786			69,858		68,220	72,895
Acquisition, construction & development | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	779	807			779
Prior	0	22,093			0
Revolving Loans	0	0			0
Total	779	22,900			779		836	36,623
Acquisition, construction & development | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	22,093	24,200			22,093
Revolving Loans	0	0			0
Total	22,093	24,200			22,093		25,394	0
Acquisition, construction & development | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Acquisition, construction & development | Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Commercial & industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	19,732	7,877			19,732
2022	17,575	18,402			17,575
2021	8,041	8,943			8,041
2020	523	603			523
2019	41	55			41
Prior	1,595	1,769			1,595
Revolving Loans	11,635	12,452			11,635
Total	59,142	50,101			59,142		53,514	58,818
Current period gross charge-offs
2023		0			0
2022		0			0
2021		0			0
2020		0			29
2019		0			0
Prior		0			0
Revolving Loans		0			0
Total	29	0	0	20	29	20	20	0	5,858
Commercial & industrial | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	19,732	7,877			19,732
2022	17,575	18,402			17,575
2021	8,041	8,943			8,041
2020	523	603			523
2019	41	55			41
Prior	1,595	1,769			1,595
Revolving Loans	11,635	12,452			11,635
Total	59,142	50,101			59,142		53,273	58,763
Commercial & industrial | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	55
Commercial & industrial | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		241	0
Commercial & industrial | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Commercial & industrial | Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Single family residential (1-4 units)
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	55,068	32,061			55,068
2022	130,556	129,294			130,556
2021	62,272	62,952			62,272
2020	32,897	33,544			32,897
2019	41,566	42,540			41,566
Prior	149,501	155,933			149,501
Revolving Loans	51,084	62,451			51,084
Total	522,944	518,775			522,944		499,362	415,594
Current period gross charge-offs
2023		0			0
2022		0			0
2021		0			0
2020		0			0
2019		0			0
Prior		0			0
Revolving Loans		0			0
Total	0	0	0	0	0	0	0	16	44
Single family residential (1-4 units) | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	55,068	32,061			55,068
2022	130,556	129,294			130,556
2021	61,981	62,952			61,981
2020	32,645	33,281			32,645
2019	41,566	42,540			41,566
Prior	148,187	154,070			148,187
Revolving Loans	51,084	62,451			51,084
Total	521,087	516,649			521,087		494,994	410,227
Single family residential (1-4 units) | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022		0
2021		0
2020		0
2019		0
Prior		0
Revolving Loans		0
Total	0	0			0		55	99
Single family residential (1-4 units) | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	291	0			291
2020	252	263			252
2019	0	0			0
Prior	1,314	1,863			1,314
Revolving Loans	0	0			0
Total	1,857	2,126			1,857		4,313	5,268
Single family residential (1-4 units) | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Single family residential (1-4 units) | Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Consumer non-real estate and other
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	227	376			227
2022	270	310			270
2021	161	183			161
2020	248	322			248
2019	435	460			435
Prior	397	423			397
Revolving Loans	1,109	1,035			1,109
Total	2,847	3,109			2,847		3,466	3,889
Current period gross charge-offs
2023		0			92
2022		17			0
2021		0			0
2020		0			0
2019		0			0
Prior		0			0
Revolving Loans		0			0
Total	75	17	$ 27	$ 28	92	$ 55	148	99	$ 94
Consumer non-real estate and other | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	227	376			227
2022	270	310			270
2021	161	183			161
2020	248	322			248
2019	435	460			435
Prior	397	423			397
Revolving Loans	1,109	1,035			1,109
Total	2,847	3,109			2,847		3,466	3,889
Consumer non-real estate and other | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Consumer non-real estate and other | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Consumer non-real estate and other | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Consumer non-real estate and other | Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	$ 0	$ 0			$ 0		$ 0	$ 0

Allowance for Credit Losses - C

Allowance for Credit Losses - Collateral Dependent Loans Individually Evaluated (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance			$ 2,735	$ 22,785
Related Allowance			239	7,679
Amortized Cost, With No Related Allowance			6,335	8,000
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance			331	20,110
Related Allowance			41	7,558
Amortized Cost, With No Related Allowance			0	0
Owner-occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance			1,397	516
Related Allowance			102	14
Amortized Cost, With No Related Allowance			1,184	2,327
Acquisition, construction & development
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance			0	0
Related Allowance			0	0
Amortized Cost, With No Related Allowance			0	0
Commercial & industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance			0	0
Related Allowance			0	0
Amortized Cost, With No Related Allowance			0	0
Single family residential (1-4 units)
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance			1,007	2,159
Related Allowance			96	107
Amortized Cost, With No Related Allowance			5,151	5,673
Consumer non-real estate and other
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance			0	0
Related Allowance			0	0
Amortized Cost, With No Related Allowance			$ 0	$ 0
Collateral-Dependent Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	$ 0	$ 0
Related Allowance	0	0
Amortized Cost, With No Related Allowance	3,736	4,450
Amortized Cost	3,736	4,450
Collateral-Dependent Loans | Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	0	0
Related Allowance	0	0
Amortized Cost, With No Related Allowance	0	0
Amortized Cost	0	0
Collateral-Dependent Loans | Owner-occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	0	0
Related Allowance	0	0
Amortized Cost, With No Related Allowance	1,066	1,121
Amortized Cost	1,066	1,121
Collateral-Dependent Loans | Acquisition, construction & development
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	0	0
Related Allowance	0	0
Amortized Cost, With No Related Allowance	0	0
Amortized Cost	0	0
Collateral-Dependent Loans | Commercial & industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	0	0
Related Allowance	0	0
Amortized Cost, With No Related Allowance	0	0
Amortized Cost	0	0
Collateral-Dependent Loans | Single family residential (1-4 units)
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	0	0
Related Allowance	0	0
Amortized Cost, With No Related Allowance	2,670	3,329
Amortized Cost	2,670	3,329
Collateral-Dependent Loans | Consumer non-real estate and other
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	0	0
Related Allowance	0	0
Amortized Cost, With No Related Allowance	0	0
Amortized Cost	$ 0	$ 0

Allowance for Credit Losses -_4

Allowance for Credit Losses - Activity in the Allowance for Loan Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended						6 Months Ended			12 Months Ended
	Jun. 30, 2023		Mar. 31, 2023		Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023		Jun. 30, 2022	Dec. 31, 2022		Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	$ 25,704	[1]	$ 21,039	[1]	$ 29,061	$ 31,709	$ 21,039	[1]	$ 31,709	$ 31,709
Provision for (recapture of) credit losses	310		523				833
Provision for (recapture of) loan losses	214		515		(2,538)	(2,638)	729		(5,176)	(7,466)		$ (1,002)	$ 12,648
Charge-offs	(104)		(17)		(3,288)	(69)	(121)		(3,357)	(3,450)		(242)	(5,996)
Recoveries	9		34		127	59	43		186	246		256	1,844
Balance, end of period	25,919		25,704	[1]	23,362	29,061	25,919		23,362	21,039	[1]	31,709
Commercial real estate
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	18,409		15,477		22,773	25,112	15,477		25,112	25,112
Provision for (recapture of) credit losses	227		218				445
Provision for (recapture of) loan losses					(3,968)	(2,321)			(6,289)	(6,391)		1,870	11,946
Charge-offs	0		0		(3,261)	(21)	0		(3,282)	(3,282)		(127)	0
Recoveries	3		28		4	3	31		7	38		13	14
Balance, end of period	18,639		18,409		15,548	22,773	18,639		15,548	15,477		25,112
Owner-occupied commercial real estate
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	556		635		663	611	635		611	611
Provision for (recapture of) credit losses	163		(73)				90
Provision for (recapture of) loan losses					61	52			113	24		(602)	(1,114)
Charge-offs	0		0		0	0	0		0	0		0	0
Recoveries	0		0		0	0	0		0	0		17	0
Balance, end of period	719		556		724	663	719		724	635		611
Acquisition, construction & development
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	1,852		2,082		2,316	2,189	2,082		2,189	2,189
Provision for (recapture of) credit losses	(533)		410				(123)
Provision for (recapture of) loan losses					1,291	127			1,418	(1,287)		(886)	2,558
Charge-offs	0		0		0	0	0		0	0		0	0
Recoveries	0		0		0	0	0		0	0		0	0
Balance, end of period	1,319		1,852		3,607	2,316	1,319		3,607	2,082		2,189
Commercial & industrial
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	700		438		113	165	438		165	165
Provision for (recapture of) credit losses	(59)		25				(34)
Provision for (recapture of) loan losses					101	(32)			69	298		72	(1,752)
Charge-offs	(29)		0		0	(20)	(29)		(20)	(20)		0	(5,858)
Recoveries	0		0		0	0	0		0	0		20	1,726
Balance, end of period	612		700		214	113	612		214	438		165
Single family residential (1-4 units)
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	4,030		2,379		1,451	2,434	2,379		2,434	2,434
Provision for (recapture of) credit losses	487		(13)				474
Provision for (recapture of) loan losses					(49)	(1,030)			(1,079)	(239)		(1,490)	945
Charge-offs	0		0		0	0	0		0	0		(16)	(44)
Recoveries	3		3		117	47	6		164	184		183	65
Balance, end of period	4,520		4,030		1,519	1,451	4,520		1,519	2,379		2,434
Consumer non-real estate and other
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	157		28		14	18	28		18	18
Provision for (recapture of) credit losses	25		(44)				(19)
Provision for (recapture of) loan losses					26	15			41	129		34	65
Charge-offs	(75)		(17)		(27)	(28)	(92)		(55)	(148)		(99)	(94)
Recoveries	3		3		6	9	6		15	24		23	$ 39
Balance, end of period	110		157		19	14	110		19	28		18
Unallocated reserve
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period	0		0		1,731	1,180	0		1,180	1,180
Provision for (recapture of) credit losses	0		0				0
Provision for (recapture of) loan losses					0	551			551
Charge-offs	0		0		0	0	0		0
Recoveries	0		0		0	0	0		0
Balance, end of period	$ 0		0		$ 1,731	$ 1,731	0		$ 1,731	0		$ 1,180
Impact of CECL Adoption
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period			4,125				4,125
Balance, end of period										4,125
Impact of CECL Adoption | Commercial real estate
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period			2,686				2,686
Balance, end of period										2,686
Impact of CECL Adoption | Owner-occupied commercial real estate
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period			(6)				(6)
Balance, end of period										(6)
Impact of CECL Adoption | Acquisition, construction & development
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period			(640)				(640)
Balance, end of period										(640)
Impact of CECL Adoption | Commercial & industrial
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period			237				237
Balance, end of period										237
Impact of CECL Adoption | Single family residential (1-4 units)
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period			1,661				1,661
Balance, end of period										1,661
Impact of CECL Adoption | Consumer non-real estate and other
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period			187				187
Balance, end of period										187
Impact of CECL Adoption | Unallocated reserve
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning of period			$ 0				$ 0
Balance, end of period										$ 0
[1] Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies in Notes to Consolidated Financial Statements for additional information related to our adoption of this standard.

Allowance for Credit Losses -_5

Allowance for Credit Losses - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023		Dec. 31, 2022		Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021
Allowance for loan losses
Individually evaluated for impairment				$ 239				$ 7,679
Collectively evaluated for impairment				20,800				24,030
Total ending allowance balance	$ 25,919	$ 25,704	[1]	21,039	[1]	$ 23,362	$ 29,061	31,709
Loan balance:
Individually evaluated for impairment				9,069				30,784
Collectively evaluated for impairment				1,878,152				1,714,289
Total ending loan balance	2,000,969	1,951,738		1,887,221				1,745,073
Commercial real estate
Allowance for loan losses
Individually evaluated for impairment				41				7,558
Collectively evaluated for impairment				15,436				17,554
Total ending allowance balance	18,639	18,409		15,477		15,548	22,773	25,112
Loan balance:
Individually evaluated for impairment				331				20,110
Collectively evaluated for impairment				1,108,984				1,011,531
Total ending loan balance	1,198,840	1,154,210		1,109,315				1,031,641
Owner-occupied commercial real estate
Allowance for loan losses
Individually evaluated for impairment				102				14
Collectively evaluated for impairment				533				597
Total ending allowance balance	719	556		635		724	663	611
Loan balance:
Individually evaluated for impairment				2,580				2,843
Collectively evaluated for impairment				124,534				122,770
Total ending loan balance	124,466	125,657		127,114				125,613
Acquisition, construction & development
Allowance for loan losses
Individually evaluated for impairment				0				0
Collectively evaluated for impairment				2,082				3,369
Total ending allowance balance	1,319	1,852		2,082		3,607	2,316	2,189
Loan balance:
Individually evaluated for impairment				0				0
Collectively evaluated for impairment				94,450				109,518
Total ending loan balance	92,730	99,886		94,450				109,518
Commercial & industrial
Allowance for loan losses
Individually evaluated for impairment				0				0
Collectively evaluated for impairment				438				160
Total ending allowance balance	612	700		438		214	113	165
Loan balance:
Individually evaluated for impairment				0				0
Collectively evaluated for impairment				53,514				58,818
Total ending loan balance	59,142	50,101		53,514				58,818
Single family residential (1-4 units)
Allowance for loan losses
Individually evaluated for impairment				96				107
Collectively evaluated for impairment				2,283				2,327
Total ending allowance balance	4,520	4,030		2,379		1,519	1,451	2,434
Loan balance:
Individually evaluated for impairment				6,158				7,831
Collectively evaluated for impairment				493,204				407,763
Total ending loan balance	522,944	518,775		499,362				415,594
Consumer non-real estate and other
Allowance for loan losses
Individually evaluated for impairment				0				0
Collectively evaluated for impairment				28				23
Total ending allowance balance	110	157		28		19	14	18
Loan balance:
Individually evaluated for impairment				0				0
Collectively evaluated for impairment				3,466				3,889
Total ending loan balance	2,847	3,109		3,466				3,889
Unallocated reserve
Allowance for loan losses
Individually evaluated for impairment				0
Collectively evaluated for impairment				0
Total ending allowance balance	$ 0	$ 0		0		$ 1,731	$ 1,731	$ 1,180
Loan balance:
Individually evaluated for impairment				0
Collectively evaluated for impairment				0
Total ending loan balance				$ 0
[1] Amount at March 31, 2023, reflects the impact of adopting Accounting Standards update 2016-13 - Financial Instruments - Credit Losses, which is commonly referred to as the Current Expected Credit Losses (CECL) standard, and our transition from an incurred loss methodology for these reserves to an expected credit loss methodology. Prior period amounts represent Allowance for Loan and Lease Losses (ALLL) under the incurred loss methodology. See Note 1 - Nature of Business Activities and Significant Accounting Policies in Notes to Consolidated Financial Statements for additional information related to our adoption of this standard.

Allowance for Credit Losses -_6

Allowance for Credit Losses - Impaired Loans by Portfolio Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
With no related allowance recorded:
Recorded Investment	$ 6,335	$ 8,000
Unpaid Principal Balance	6,970	8,690
Average Recorded Investment	6,422	8,285
Interest Income Recognized	310	374
With an allowance recorded:
Recorded Investment	2,735	22,785
Unpaid Principal Balance	2,869	23,037
Related Allowance	239	7,679
Average Recorded Investment	2,803	22,863
Interest Income Recognized	154	184
Commercial real estate
With no related allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With an allowance recorded:
Recorded Investment	331	20,110
Unpaid Principal Balance	331	20,236
Related Allowance	41	7,558
Average Recorded Investment	350	20,130
Interest Income Recognized	23	30
Owner-occupied commercial real estate
With no related allowance recorded:
Recorded Investment	1,184	2,327
Unpaid Principal Balance	1,394	2,460
Average Recorded Investment	1,291	2,437
Interest Income Recognized	97	129
With an allowance recorded:
Recorded Investment	1,397	516
Unpaid Principal Balance	1,397	516
Related Allowance	102	14
Average Recorded Investment	1,420	530
Interest Income Recognized	74	32
Acquisition, construction & development
With no related allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With an allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Commercial & industrial
With no related allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With an allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0
Interest Income Recognized	0	0
Single family residential (1-4 units)
With no related allowance recorded:
Recorded Investment	5,151	5,673
Unpaid Principal Balance	5,576	6,230
Average Recorded Investment	5,131	5,848
Interest Income Recognized	213	245
With an allowance recorded:
Recorded Investment	1,007	2,159
Unpaid Principal Balance	1,141	2,285
Related Allowance	96	107
Average Recorded Investment	1,033	2,203
Interest Income Recognized	57	122
Consumer non-real estate and other
With no related allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With an allowance recorded:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	$ 0	$ 0

Allowance for Credit Losses -_7

Allowance for Credit Losses - Aging and Non-Accrual Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	$ 2,000,969	$ 1,951,738	$ 1,887,221	$ 1,745,073
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	2,923	3,246	5,497	26,261
Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,795	3,949	2,107	21,507
30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,061	1,515	1,403	507
60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	2,106	158	0
90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	734	328	546	21,000
Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,999,174	1,947,789	1,885,114	1,723,566
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,198,840	1,154,210	1,109,315	1,031,641
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	0	0	0	19,594
Commercial real estate | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	2,075	0	19,531
Commercial real estate | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Commercial real estate | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	2,075	0	0
Commercial real estate | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	19,531
Commercial real estate | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,198,840	1,152,135	1,109,315	1,012,110
Owner-occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	124,466	125,657	127,114	125,613
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	1,066	1,121	1,184	1,399
Owner-occupied commercial real estate | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	1,546	0	0	941
Owner-occupied commercial real estate | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	873	0	0	121
Owner-occupied commercial real estate | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Owner-occupied commercial real estate | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	673	0	0	820
Owner-occupied commercial real estate | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	122,920	125,657	127,114	124,672
Acquisition, construction & development
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	92,730	99,886	94,450	109,518
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	0	0	0	0
Acquisition, construction & development | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Acquisition, construction & development | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Acquisition, construction & development | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Acquisition, construction & development | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Acquisition, construction & development | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	92,730	99,886	94,450	109,518
Commercial & industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	59,142	50,101	53,514	58,818
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	0	0	0	0
Commercial & industrial | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	31	0	21
Commercial & industrial | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	21
Commercial & industrial | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	31	0	0
Commercial & industrial | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Commercial & industrial | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	59,142	50,070	53,514	58,797
Single family residential (1-4 units)
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	522,944	518,775	499,362	415,594
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	1,857	2,125	4,313	5,268
Single family residential (1-4 units) | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	207	1,843	2,103	1,014
Single family residential (1-4 units) | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	146	1,515	1,403	365
Single family residential (1-4 units) | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	154	0
Single family residential (1-4 units) | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	61	328	546	649
Single family residential (1-4 units) | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	522,737	516,932	497,259	414,580
Consumer non-real estate and other
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	2,847	3,109	3,466	3,889
90 Days Past Due & Still Accruing	0	0	0	0
Non-accrual loans	0	0	0	0
Consumer non-real estate and other | Total Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	42	0	4	0
Consumer non-real estate and other | 30 - 59 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	42	0	0	0
Consumer non-real estate and other | 60 - 89 Days Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	4	0
Consumer non-real estate and other | 90 Days or More Past Due
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	0	0	0	0
Consumer non-real estate and other | Current Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Loans	$ 2,805	$ 3,109	$ 3,462	$ 3,889

Allowance for Credit Losses -_8

Allowance for Credit Losses - Loans by Credit Quality Indicators (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Total	$ 2,000,969	$ 1,951,738			$ 2,000,969		$ 1,887,221	$ 1,745,073
Year to date gross charge-offs
Total	104	17	$ 3,288	$ 69	121	$ 3,357	3,450	242	$ 5,996
Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
Total							1,752,599	1,536,626
Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
Total							65,761	114,323
Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
Total							68,861	94,124
Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
Total							0	0
Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
Total							0	0
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	109,677	51,800			109,677
2022	284,407	283,500			284,407
2021	217,324	216,449			217,324
2020	24,134	24,431			24,134
2019	84,288	88,885			84,288
Prior	474,035	484,836			474,035
Revolving Loans	4,975	4,309			4,975
Total	1,198,840	1,154,210			1,198,840		1,109,315	1,031,641
Year to date gross charge-offs
2023		0			0
2022		0			0
2021		0			0
2020		0			0
2019		0			0
Prior		0			0
Revolving Loans		0			0
Total	0	0	3,261	21	0	3,282	3,282	127	0
Commercial real estate | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	109,677	51,800			109,677
2022	268,807	282,900			268,807
2021	170,100	214,098			170,100
2020	15,736	15,998			15,736
2019	75,506	76,014			75,506
Prior	422,563	403,273			422,563
Revolving Loans	4,975	4,309			4,975
Total	1,067,364	1,048,392			1,067,364		1,011,025	868,787
Commercial real estate | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	15,000	0			15,000
2021	44,873	0			44,873
2020	8,398	8,433			8,398
2019	1,266	5,302			1,266
Prior	2,306	40,929			2,306
Revolving Loans	0	0			0
Total	71,843	54,664			71,843		62,907	75,397
Commercial real estate | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	600	600			600
2021	2,351	2,351			2,351
2020	0	0			0
2019	7,516	7,569			7,516
Prior	49,166	40,634			49,166
Revolving Loans	0	0			0
Total	59,633	51,154			59,633		35,383	87,457
Commercial real estate | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Commercial real estate | Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Owner-occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	2,569	823			2,569
2022	30,300	30,332			30,300
2021	9,622	9,857			9,622
2020	15,225	15,463			15,225
2019	13,021	13,686			13,021
Prior	49,194	53,111			49,194
Revolving Loans	4,535	2,385			4,535
Total	124,466	125,657			124,466		127,114	125,613
Year to date gross charge-offs
2023		0			0
2022		0			0
2021		0			0
2020		0			0
2019		0			0
Prior		0			0
Revolving Loans		0			0
Total	0	0	0	0	0	0	0	0	0
Owner-occupied commercial real estate | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	2,569	823			2,569
2022	29,761	30,039			29,761
2021	9,622	9,857			9,622
2020	15,225	15,463			15,225
2019	13,021	13,686			13,021
Prior	44,538	49,753			44,538
Revolving Loans	4,535	2,385			4,535
Total	119,271	122,006			119,271		121,621	122,065
Owner-occupied commercial real estate | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	1,947			0
Revolving Loans	0	0			0
Total	0	1,947			0		1,963	2,149
Owner-occupied commercial real estate | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	539	293			539
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	4,656	1,411			4,656
Revolving Loans	0	0			0
Total	5,195	1,704			5,195		3,530	1,399
Owner-occupied commercial real estate | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Owner-occupied commercial real estate | Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Acquisition, construction & development
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	2,941	1,275			2,941
2022	26,843	28,498			26,843
2021	14,504	10,995			14,504
2020	0	0			0
2019	779	10,067			779
Prior	46,053	47,691			46,053
Revolving Loans	1,610	1,360			1,610
Total	92,730	99,886			92,730		94,450	109,518
Year to date gross charge-offs
2023		0			0
2022		0			0
2021		0			0
2020		0			0
2019		0			0
Prior		0			0
Revolving Loans		0			0
Total	0	0	0	0	0	0	0	0	0
Acquisition, construction & development | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	2,941	1,275			2,941
2022	26,843	28,498			26,843
2021	14,504	10,995			14,504
2020	0	0			0
2019	0	9,260			0
Prior	23,960	1,398			23,960
Revolving Loans	1,610	1,360			1,610
Total	69,858	52,786			69,858		68,220	72,895
Acquisition, construction & development | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	779	807			779
Prior	0	22,093			0
Revolving Loans	0	0			0
Total	779	22,900			779		836	36,623
Acquisition, construction & development | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	22,093	24,200			22,093
Revolving Loans	0	0			0
Total	22,093	24,200			22,093		25,394	0
Acquisition, construction & development | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Acquisition, construction & development | Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Commercial & industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	19,732	7,877			19,732
2022	17,575	18,402			17,575
2021	8,041	8,943			8,041
2020	523	603			523
2019	41	55			41
Prior	1,595	1,769			1,595
Revolving Loans	11,635	12,452			11,635
Total	59,142	50,101			59,142		53,514	58,818
Year to date gross charge-offs
2023		0			0
2022		0			0
2021		0			0
2020		0			29
2019		0			0
Prior		0			0
Revolving Loans		0			0
Total	29	0	0	20	29	20	20	0	5,858
Commercial & industrial | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	19,732	7,877			19,732
2022	17,575	18,402			17,575
2021	8,041	8,943			8,041
2020	523	603			523
2019	41	55			41
Prior	1,595	1,769			1,595
Revolving Loans	11,635	12,452			11,635
Total	59,142	50,101			59,142		53,273	58,763
Commercial & industrial | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	55
Commercial & industrial | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		241	0
Commercial & industrial | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Commercial & industrial | Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Single family residential (1-4 units)
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	55,068	32,061			55,068
2022	130,556	129,294			130,556
2021	62,272	62,952			62,272
2020	32,897	33,544			32,897
2019	41,566	42,540			41,566
Prior	149,501	155,933			149,501
Revolving Loans	51,084	62,451			51,084
Total	522,944	518,775			522,944		499,362	415,594
Year to date gross charge-offs
2023		0			0
2022		0			0
2021		0			0
2020		0			0
2019		0			0
Prior		0			0
Revolving Loans		0			0
Total	0	0	0	0	0	0	0	16	44
Single family residential (1-4 units) | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	55,068	32,061			55,068
2022	130,556	129,294			130,556
2021	61,981	62,952			61,981
2020	32,645	33,281			32,645
2019	41,566	42,540			41,566
Prior	148,187	154,070			148,187
Revolving Loans	51,084	62,451			51,084
Total	521,087	516,649			521,087		494,994	410,227
Single family residential (1-4 units) | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022		0
2021		0
2020		0
2019		0
Prior		0
Revolving Loans		0
Total	0	0			0		55	99
Single family residential (1-4 units) | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	291	0			291
2020	252	263			252
2019	0	0			0
Prior	1,314	1,863			1,314
Revolving Loans	0	0			0
Total	1,857	2,126			1,857		4,313	5,268
Single family residential (1-4 units) | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Single family residential (1-4 units) | Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Consumer non-real estate and other
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	227	376			227
2022	270	310			270
2021	161	183			161
2020	248	322			248
2019	435	460			435
Prior	397	423			397
Revolving Loans	1,109	1,035			1,109
Total	2,847	3,109			2,847		3,466	3,889
Year to date gross charge-offs
2023		0			92
2022		17			0
2021		0			0
2020		0			0
2019		0			0
Prior		0			0
Revolving Loans		0			0
Total	75	17	$ 27	$ 28	92	$ 55	148	99	$ 94
Consumer non-real estate and other | Pass
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	227	376			227
2022	270	310			270
2021	161	183			161
2020	248	322			248
2019	435	460			435
Prior	397	423			397
Revolving Loans	1,109	1,035			1,109
Total	2,847	3,109			2,847		3,466	3,889
Consumer non-real estate and other | Special Mention
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Consumer non-real estate and other | Substandard
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Consumer non-real estate and other | Doubtful
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	0	0			0		0	0
Consumer non-real estate and other | Loss
Financing Receivable, Allowance for Credit Loss [Line Items]
2023	0	0			0
2022	0	0			0
2021	0	0			0
2020	0	0			0
2019	0	0			0
Prior	0	0			0
Revolving Loans	0	0			0
Total	$ 0	$ 0			$ 0		$ 0	$ 0

Allowance for Credit Losses -_9

Allowance for Credit Losses - Collateral Dependent Loans Individually Evaluated (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance			$ 2,735	$ 22,785
Related Allowance			239	7,679
Amortized Cost, With No Related Allowance			6,335	8,000
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance			331	20,110
Related Allowance			41	7,558
Amortized Cost, With No Related Allowance			0	0
Owner-occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance			1,397	516
Related Allowance			102	14
Amortized Cost, With No Related Allowance			1,184	2,327
Acquisition, construction & development
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance			0	0
Related Allowance			0	0
Amortized Cost, With No Related Allowance			0	0
Commercial & industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance			0	0
Related Allowance			0	0
Amortized Cost, With No Related Allowance			0	0
Single family residential (1-4 units)
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance			1,007	2,159
Related Allowance			96	107
Amortized Cost, With No Related Allowance			5,151	5,673
Consumer non-real estate and other
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance			0	0
Related Allowance			0	0
Amortized Cost, With No Related Allowance			$ 0	$ 0
Collateral-Dependent Loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	$ 0	$ 0
Related Allowance	0	0
Amortized Cost, With No Related Allowance	3,736	4,450
Amortized Cost	3,736	4,450
Collateral-Dependent Loans | Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	0	0
Related Allowance	0	0
Amortized Cost, With No Related Allowance	0	0
Amortized Cost	0	0
Collateral-Dependent Loans | Owner-occupied commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	0	0
Related Allowance	0	0
Amortized Cost, With No Related Allowance	1,066	1,121
Amortized Cost	1,066	1,121
Collateral-Dependent Loans | Acquisition, construction & development
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	0	0
Related Allowance	0	0
Amortized Cost, With No Related Allowance	0	0
Amortized Cost	0	0
Collateral-Dependent Loans | Commercial & industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	0	0
Related Allowance	0	0
Amortized Cost, With No Related Allowance	0	0
Amortized Cost	0	0
Collateral-Dependent Loans | Single family residential (1-4 units)
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	0	0
Related Allowance	0	0
Amortized Cost, With No Related Allowance	2,670	3,329
Amortized Cost	2,670	3,329
Collateral-Dependent Loans | Consumer non-real estate and other
Financing Receivable, Allowance for Credit Loss [Line Items]
Amortized Cost, With Allowance	0	0
Related Allowance	0	0
Amortized Cost, With No Related Allowance	0	0
Amortized Cost	$ 0	$ 0

Deposits - Narrative (Details)

Deposits - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financial Services, Banking and Thrift [Abstract]
Time deposits, at or above FDIC insurance limit, before adjustments			$ 133,300
Time deposits, at or above FDIC insurance limit	$ 48,500	$ 35,700	32,600	$ 52,400
Brokered time deposits	389,100	389,200	100,300	0
Interest bearing deposit, certificates of deposits	18,800	13,100	11,700	18,900
Time deposits, individual retirement account	32,000	35,200	36,900	42,900
Deposit liabilities reclassified as loans receivable	$ 102	$ 277	$ 503	$ 94

Deposits - Time Deposit Maturit

Deposits - Time Deposit Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Financial Services, Banking and Thrift [Abstract]
2023	$ 191,983	$ 114,613	$ 153,075
2024	132,500	133,679	94,816
2025	82,716	82,141	45,724
2026	49,528	49,529	3,449
2027	77,838	77,386	1,827
Total	$ 634,044	$ 588,181	$ 298,891

Deposits - Narrative (Details_2

Deposits - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financial Services, Banking and Thrift [Abstract]
Time deposits, at or above FDIC insurance limit	$ 48,500	$ 35,700	$ 32,600	$ 52,400
Brokered time deposits	389,100	389,200	100,300	0
Interest bearing deposit, certificates of deposits	18,800	13,100	11,700	18,900
Time deposits, individual retirement account	32,000	35,200	36,900	42,900
Deposit liabilities reclassified as loans receivable	$ 102	$ 277	$ 503	$ 94

Deposits - Time Deposit Matur_2

Deposits - Time Deposit Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Financial Services, Banking and Thrift [Abstract]
Remaining nine months ending, December 31, 2023	$ 99,479	$ 130,833
2024	191,983	114,613	$ 153,075
2025	132,500	133,679	94,816
2026	82,716	82,141	45,724
2027	49,528	49,529	3,449
2028	77,838	77,386	1,827
Total	$ 634,044	$ 588,181	$ 298,891

Deposits - Narrative (Details_3

Deposits - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financial Services, Banking and Thrift [Abstract]
Time deposits, at or above FDIC insurance limit	$ 48,500	$ 35,700	$ 32,600	$ 52,400
Brokered time deposits	389,100	389,200	100,300	0
Interest bearing deposit, certificates of deposits	18,800	13,100	11,700	18,900
Time deposits, individual retirement account	32,000	35,200	36,900	42,900
Deposit liabilities reclassified as loans receivable	$ 102	$ 277	$ 503	$ 94

Deposits - Time Deposit Matur_3

Deposits - Time Deposit Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Financial Services, Banking and Thrift [Abstract]
Remaining six months ending, December 31, 2023	$ 99,479	$ 130,833
2024	191,983	114,613	$ 153,075
2025	132,500	133,679	94,816
2026	82,716	82,141	45,724
2027	49,528	49,529	3,449
2028	77,838	77,386	1,827
Total	$ 634,044	$ 588,181	$ 298,891

Federal Home Loan Bank Advanc_3

Federal Home Loan Bank Advances and Other Short-Term Borrowings - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Short-Term Debt [Line Items]
Federal Home Loan Bank advances outstanding	$ 343,100,000	$ 275,000,000
Weighted average interest rate	4.422%	0.545%
Average balance outstanding during period	$ 269,500,000	$ 227,000,000
Available amount of line of credit with Federal Home Loan Bank	875,300,000
Securities and loans pledged	698,100,000	637,200,000
Unsecured federal fund lines of credit, liquidity available	90,000,000
Borrowings of federal fund lines of credit outstanding	$ 0	$ 0
Minimum
Short-Term Debt [Line Items]
Interest rate on debt	4.13%	0.18%
Maximum
Short-Term Debt [Line Items]
Interest rate on debt	4.57%	0.7725%

Federal Home Loan Bank Advanc_4

Federal Home Loan Bank Advances and Other Short-Term Borrowings - Contractual Maturities Of Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Federal Home Loan Banks [Abstract]
Due in 2023	$ 243,100
Due in 2024	100,000
Total	$ 343,100	$ 275,000

Advances and Other Borrowings -

Advances and Other Borrowings - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Short-Term Debt [Line Items]
Borrowed funds	$ 321,700	$ 249,000	$ 343,100	$ 275,000
Outstanding amount for short-term debt	358,100	257,200	269,500
Unused funds for short-term debt	809,100	959,000
Securities and loans pledged	$ 620,700	$ 782,900	$ 698,100
Minimum
Short-Term Debt [Line Items]
Interest rate for short-term debt	4.38%	4.38%	4.13%
Maximum
Short-Term Debt [Line Items]
Interest rate for short-term debt	4.88%	5.20%	4.57%

Advances and Other Borrowings_4

Advances and Other Borrowings -Schedule of Short-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Advance from Federal Home Loan Bank, Fiscal Year Maturity [Abstract]
Borrowed funds	$ 249,000	$ 321,700	$ 343,100	$ 275,000
Short-Term Debt
Advance from Federal Home Loan Bank, Fiscal Year Maturity [Abstract]
Due in 2023	49,000	171,700
Due in 2024	200,000	150,000
Borrowed funds	$ 249,000	$ 321,700

Advances and Other Borrowings_5

Advances and Other Borrowings - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Short-Term Debt [Line Items]
Borrowed funds	$ 321,700	$ 249,000	$ 343,100	$ 275,000
Outstanding amount for short-term debt	358,100	257,200	269,500
Unused funds for short-term debt	809,100	959,000
Securities and loans pledged	$ 620,700	$ 782,900	$ 698,100
Minimum
Short-Term Debt [Line Items]
Interest rate for short-term debt	4.38%	4.38%	4.13%
Maximum
Short-Term Debt [Line Items]
Interest rate for short-term debt	4.88%	5.20%	4.57%

Advances and Other Borrowings_6

Advances and Other Borrowings -Schedule of Short-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Advance from Federal Home Loan Bank, Fiscal Year Maturity [Abstract]
Borrowed funds	$ 249,000	$ 321,700	$ 343,100	$ 275,000
Short-Term Debt
Advance from Federal Home Loan Bank, Fiscal Year Maturity [Abstract]
Due in 2023	49,000	171,700
Due in 2024	200,000	150,000
Borrowed funds	$ 249,000	$ 321,700

Income Taxes - Schedule of Inco

Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Current Expense:
Federal							$ 5,501	$ 5,564	$ 5,770
State							1,388	372	0
Current expense							6,889	5,936	5,770
Deferred Expense:
Federal							1,318	(1,401)	(3,830)
State							79	(258)	0
Deferred expense		$ (1,234)		$ (214)	$ (1,560)	$ 611	1,397	(1,659)	(3,830)
Total	$ 821	$ 584	$ 1,900	$ 1,933	$ 1,405	$ 3,833	$ 8,286	$ 4,277	$ 1,940

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Uncertain tax positions	$ 291,000	$ 0	$ 0

Income Taxes - Schedule of Stat

Income Taxes - Schedule of Statutory Tax Rates to Income Before Taxes (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Expected taxes using statutory rates							$ 10,983	$ 8,493	$ 5,972
Benefit of tax exempt income, net of non-deductible interest							(1,694)	(1,993)	(1,644)
Nontaxable income from life insurance							(570)	(502)	(496)
Low income tax credits, net of amortization							(1,840)	(1,843)	(1,231)
State taxes, net of federal benefit							1,159	294	0
Other adjustment, net							248	(172)	(661)
Total	$ 821	$ 584	$ 1,900	$ 1,933	$ 1,405	$ 3,833	$ 8,286	$ 4,277	$ 1,940

Income Taxes - Schedule of Defe

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Provision for loan losses	$ 4,418	$ 6,962
Lease liability	2,171	2,451
Compensation accruals	1,773	1,345
Partnership investments	1,907	1,550
Unrealized losses on securities available-for-sale	34,789	0
Tax credit carryforward	7,634	7,272
Deferred state taxes	179	0
Other	422	243
Deferred tax assets	53,293	19,823
Deferred tax liabilities:
Unrealized gains on securities available-for-sale	0	(3,449)
Tax over book depreciation	(1,555)	(1,369)
Pension accrual	(366)	(890)
Right of use asset	(2,074)	(2,349)
Deferred tax liabilities	(3,995)	(8,057)
Net deferred tax asset	$ 49,298	$ 11,766

Defined Benefit Pension Plan -

Defined Benefit Pension Plan - Narrative (Details)	12 Months Ended
	Dec. 31, 2022
Retirement Benefits [Abstract]
Defined benefit plan, vesting period	5 years

Defined Benefit Pension Plan _2

Defined Benefit Pension Plan - Schedule of Plan's Status (Details) - Pension Plan - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Changes in benefit obligation:
Beginning balance	$ 42,297	$ 43,371
Service cost	786	998	$ 911
Interest cost	1,141	1,042	1,159
Actuarial (gain) loss	(12,549)	(2,131)
Distributions	(1,450)	(983)
Ending balance	30,225	42,297	43,371
Change in plan assets:
Beginning balance of fair value	46,017	47,526
Actual return on plan assets	(12,599)	(526)
Employer contribution	0	0
Distributions	(1,450)	(983)
Ending balance of fair value	31,968	46,017	47,526
Funded status recognized as accrued pension cost	1,743	3,720
Amounts recognized in accumulated other comprehensive (income) loss:
Net loss	8,901	7,621
Deferred income tax benefit	(1,869)	(1,601)
Total amount recognized	7,032	6,020
Accumulated benefit obligation	28,184	38,315
Revision of Prior Period, Adjustment
Change in plan assets:
Beginning balance of fair value	$ 0	0
Ending balance of fair value		$ 0	$ 0

Defined Benefit Pension Plan _3

Defined Benefit Pension Plan - Schedule of Assumptions Used to Determine Pension Benefit Obligation (Details) - Pension Plan	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Discount rate	5%	2.76%	2.42%
Rate of compensation increase	3%	3.50%	3.50%

Defined Benefit Pension Plan _4

Defined Benefit Pension Plan - Schedule of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other changes recognized in other comprehensive (income) loss
Deferred tax expense (benefit)							$ (263)	$ 81	$ 23
Total recognized in accumulated other comprehensive (income) loss	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	(1,011)	305	87
Pension Plan
Components of net periodic pension cost:
Service cost							786	998	911
Interest cost							1,141	1,042	1,159
Expected return on plan assets							(1,539)	(1,612)	(1,938)
Amortization of prior service costs							0	0	0
Amortization of net loss							309	393	488
Net periodic pension costs							697	821	620
Other changes recognized in other comprehensive (income) loss
Net loss							1,589	7	378
Amortization of net loss							(309)	(393)	(488)
Deferred tax expense (benefit)							(269)	81	23
Total recognized in accumulated other comprehensive (income) loss							1,011	(305)	(87)
Total recognized in net periodic pension costs and other comprehensive loss							$ 1,708	$ 516	$ 533

Defined Benefit Pension Plan _5

Defined Benefit Pension Plan - Schedule of Assumptions Used to Determine Net Periodic Pension Cost (Details) - Pension Plan	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Discount rate	5%	2.76%	2.42%
Expected long-term rate of return on plan assets	3.75%	3.75%	5.10%
Annual salary increase	3%	3.50%	3.50%

Defined Benefit Pension Plan _6

Defined Benefit Pension Plan - Schedule of Pension Plan Asset Allocations (Details) - Pension Plan	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Plan asset allocations percentage	100%	100%
Equity securities
Defined Benefit Plan Disclosure [Line Items]
Plan asset allocations percentage	10%	11%
Debt securities
Defined Benefit Plan Disclosure [Line Items]
Plan asset allocations percentage	90%	89%

Defined Benefit Pension Plan _7

Defined Benefit Pension Plan - Schedule of Fair Value of Plan Assets (Details) - Pension Plan - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	$ 31,968	$ 46,017	$ 47,526
Recurring
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	32,032	46,018
Recurring | Level 1
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	102	82
Recurring | Level 2
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	31,930	45,936
Recurring | Level 3
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Recurring | Cash and cash equivalents
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	102	82
Recurring | Cash and cash equivalents | Level 1
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	102	82
Recurring | Cash and cash equivalents | Level 2
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Recurring | Cash and cash equivalents | Level 3
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Recurring | Equity securities
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	3,181	5,154
Recurring | Equity securities | Level 1
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Recurring | Equity securities | Level 2
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	3,181	5,154
Recurring | Equity securities | Level 3
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Recurring | Debt securities
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	28,749	40,782
Recurring | Debt securities | Level 1
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	0	0
Recurring | Debt securities | Level 2
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	28,749	40,782
Recurring | Debt securities | Level 3
Defined Benefit Plan Disclosure [Line Items]
Pension plan assets	$ 0	$ 0

Defined Benefit Pension Plan _8

Defined Benefit Pension Plan - Schedule of Estimated Future Benefit Payments (Details) - Pension Plan $ in Thousands	Dec. 31, 2022 USD ($)
Defined Benefit Plan Disclosure [Line Items]
2023	$ 1,391
2024	1,402
2025	1,387
2026	1,434
2027	1,533
Following 5 years	$ 9,116

Other Post-Retirement Plans (De

Other Post-Retirement Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Deferral percent of compensation	90%
Plan cost	$ 1,020	$ 1,020	$ 990
Percent of employer contribution	3.50%
Other Postretirement Benefits Plan | Two Thousand Twenty One Deferred Compensation Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Net periodic pension costs	$ 212	104
Pension plan assets	496	108
Net periodic pension costs (credit)	$ 212	104
Other Postretirement Benefits Plan | Deferred Compensation Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Payment period	15 years
Net periodic pension costs	$ (61)	(57)	(51)
Net periodic pension costs (credit)	(61)	(57)	(51)
Supplemental Employee Retirement Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Plan cost	$ 290	$ 459	$ 442

Leased Property - Narrative (De

Leased Property - Narrative (Details) $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($) building	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($) building	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Lessor, Lease, Description [Line Items]
Number of buildings sold | building		2					2
Sale leaseback transaction, lease terms		one year
Realized gain on sale of property	$ 0	$ 3,700	$ (6)	$ 0	$ (6)		$ 4,533	$ 1,063	$ (7)
Forecast
Lessor, Lease, Description [Line Items]
Operating lease expense						$ 881
Minimum
Lessor, Lease, Description [Line Items]
Operating lease term		1 year					1 year
Operating lease term	2 years	1 year		2 years			1 year
Maximum
Lessor, Lease, Description [Line Items]
Operating lease term		13 years					13 years
Operating lease term	12 years	13 years		12 years			13 years

Leased Property - Lessor, Lease

Leased Property - Lessor, Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease income	$ 575	$ 575	$ 43	$ 43	$ 1,150	$ 86	$ 1,309	$ 181	$ 190
Total lease income	$ 575	$ 575	$ 43	$ 43	$ 1,150	$ 86	$ 1,309	$ 181	$ 190

Leased Property - Lessor, Opera

Leased Property - Lessor, Operating Lease, Payment to be Received, Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
2023	$ 2,302	$ 2,302	$ 2,354
2024	2,265	2,265	1,454
2025	1,657	1,657	1,418
2026	1,356	1,356	810
2027			509
Thereafter			1,594
Total undiscounted lease payments	$ 12,514	$ 13,089	$ 8,139

Leased Property - Assets And Li

Leased Property - Assets And Liabilities, Lessee (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Right-of-use assets:
Operating leases	$ 5,572	$ 6,474	$ 7,255	$ 7,869
Finance leases	2,518	2,569	2,620	2,824
Total right-of-use assets	8,090	9,043	9,875	10,693
Lease liabilities:
Operating leases	5,837	6,782	7,592	8,268
Finance leases	2,666	2,705	2,745	2,897
Total lease liabilities	$ 8,503	$ 9,487	$ 10,337	$ 11,165

Leased Property - Lease, Cost (

Leased Property - Lease, Cost (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Finance lease cost
Right-of-use asset amortization	$ 51	$ 51	$ 51	$ 51	$ 102	$ 102	$ 204	$ 207	$ 34
Interest expense	15	15	16	16	30	32	63	39	6
Operating lease cost	839	839	594	594	1,667	1,195	2,495	2,517	2,344
Total lease cost	$ 905	$ 905	$ 661	$ 661	$ 1,799	$ 1,329	$ 2,762	$ 2,763	$ 2,384

Leased Property - Lessee, Opera

Leased Property - Lessee, Operating Lease and Financing Lease, Payment to be Received, Fiscal Year Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Operating Leases
2023	$ 2,305	$ 2,294	$ 3,474
2024	849	839	2,294
2025	415	415	839
2026	366	366	415
2027			366
Thereafter			626
Total undiscounted lease payments	6,151	7,145	8,014
Less: discount	(314)	(363)	(422)
Net lease liabilities	5,837	6,782	7,592	$ 8,268
Finance Leases
2023	224	224	220
2024	228	228	224
2025	233	233	228
2026	238	238	233
2027			238
Thereafter			2,033
Total undiscounted lease payments	3,067	3,121	3,176
Less: discount	(401)	(416)	(431)
Net lease liabilities	$ 2,666	$ 2,705	$ 2,745	$ 2,897

Leased Property - Additional In

Leased Property - Additional Information on Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Finance lease weighted average remaining lease term (years)	12 years 6 months 3 days		12 years 3 months 3 days		12 years 9 months 3 days	13 years 9 months 3 days
Finance lease weighted average discount rate	2.22%		2.22%		2.22%	2.22%
Operating lease weighted average remaining lease term (years)	3 years 1 month 24 days		3 years 1 month 24 days		3 years 3 months 3 days	4 years 1 month 13 days
Operating lease weighted average discount rate	3.16%		3.06%		3.19%	2.89%
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 868	$ 569	$ 1,739	$ 1,238	$ 2,557	$ 2,323
Operating cash flows from finance leases	15	16	30	32	63	39	$ 6
Financing cash flows from finance leases	39	38	80	76	152	152
Right-of-use assets obtained in exchange for new finance lease liabilities	0	0	0	0	0	0
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 0	$ 0	$ 0	$ 502	$ 1,558	$ 856

Leased Property - Narrative (_2

Leased Property - Narrative (Details)	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Minimum
Lessee, Lease, Description [Line Items]
Operating lease term	2 years	2 years	1 year
Lease term of contract	1 year	1 year
Maximum
Lessee, Lease, Description [Line Items]
Operating lease term	12 years	12 years	13 years
Lease term of contract	13 years	13 years

Leased Property - Lessor, Lea_2

Leased Property - Lessor, Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease income	$ 575	$ 575	$ 43	$ 43	$ 1,150	$ 86	$ 1,309	$ 181	$ 190
Total lease income	$ 575	$ 575	$ 43	$ 43	$ 1,150	$ 86	$ 1,309	$ 181	$ 190

Leased Property - Lessor, Ope_2

Leased Property - Lessor, Operating Lease, Payment to be Received, Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Remaining nine months ending December 31, 2023	$ 1,151	$ 1,726
2024	2,302	2,302	$ 2,354
2025	2,265	2,265	1,454
2026	1,657	1,657	1,418
2027	1,356	1,356	810
Thereafter	3,783	3,783
Total undiscounted lease payments	$ 12,514	$ 13,089	$ 8,139

Leased Property - Assets And _2

Leased Property - Assets And Liabilities, Lessee (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Right-of-use assets:
Operating leases	$ 5,572	$ 6,474	$ 7,255	$ 7,869
Finance leases	2,518	2,569	2,620	2,824
Total right-of-use assets	8,090	9,043	9,875	10,693
Lease liabilities:
Operating leases	5,837	6,782	7,592	8,268
Finance leases	2,666	2,705	2,745	2,897
Total lease liabilities	$ 8,503	$ 9,487	$ 10,337	$ 11,165

Leased Property - Lease, Cost_2

Leased Property - Lease, Cost (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Finance lease cost
Right-of-use asset amortization	$ 51	$ 51	$ 51	$ 51	$ 102	$ 102	$ 204	$ 207	$ 34
Interest expense	15	15	16	16	30	32	63	39	6
Operating lease cost	839	839	594	594	1,667	1,195	2,495	2,517	2,344
Total lease cost	$ 905	$ 905	$ 661	$ 661	$ 1,799	$ 1,329	$ 2,762	$ 2,763	$ 2,384

Leased Property - Lessee, Ope_2

Leased Property - Lessee, Operating Lease and Financing Lease, Payment to be Received, Fiscal Year Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Operating Leases
Remaining nine months ending December 31, 2023	$ 1,591	$ 2,606
2024	2,305	2,294	$ 3,474
2025	849	839	2,294
2026	415	415	839
2027	366	366	415
Thereafter	625	625
Total undiscounted lease payments	6,151	7,145	8,014
Less: discount	(314)	(363)	(422)
Operating leases	5,837	6,782	7,592	$ 8,268
Finance Leases
Remaining nine months ending December 31, 2023	110	165
2024	224	224	220
2025	228	228	224
2026	233	233	228
2027	238	238	233
Thereafter	2,034	2,033
Total undiscounted lease payments	3,067	3,121	3,176
Less: discount	(401)	(416)	(431)
Finance leases	$ 2,666	$ 2,705	$ 2,745	$ 2,897

Leased Property - Additional _2

Leased Property - Additional Information on Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Finance lease weighted average remaining lease term (years)	12 years 6 months 3 days		12 years 3 months 3 days		12 years 9 months 3 days	13 years 9 months 3 days
Finance lease weighted average discount rate	2.22%		2.22%		2.22%	2.22%
Operating lease weighted average remaining lease term (years)	3 years 1 month 24 days		3 years 1 month 24 days		3 years 3 months 3 days	4 years 1 month 13 days
Operating lease weighted average discount rate	3.16%		3.06%		3.19%	2.89%
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 868	$ 569	$ 1,739	$ 1,238	$ 2,557	$ 2,323
Operating cash flows from finance leases	15	16	30	32	63	39	$ 6
Financing cash flows from finance leases	39	38	80	76	152	152
Right-of-use assets obtained in exchange for new finance lease liabilities	0	0	0	0	0	0
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 0	$ 0	$ 0	$ 502	$ 1,558	$ 856

Leased Property - Narrative (_3

Leased Property - Narrative (Details)	3 Months Ended	6 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Minimum
Lessor, Lease, Description [Line Items]
Operating lease term	2 years	2 years	1 year
Lease term of contract	1 year	1 year
Maximum
Lessor, Lease, Description [Line Items]
Operating lease term	12 years	12 years	13 years
Lease term of contract	13 years	13 years

Leased Property - Lessor, Lea_3

Leased Property - Lessor, Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease income	$ 575	$ 575	$ 43	$ 43	$ 1,150	$ 86	$ 1,309	$ 181	$ 190
Total lease income	$ 575	$ 575	$ 43	$ 43	$ 1,150	$ 86	$ 1,309	$ 181	$ 190

Leased Property - Lessor, Ope_3

Leased Property - Lessor, Operating Lease, Payment to be Received, Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Leases [Abstract]
Remaining six months ending December 31, 2023	$ 1,151	$ 1,726
2024	2,302	2,302	$ 2,354
2025	2,265	2,265	1,454
2026	1,657	1,657	1,418
2027	1,356	1,356	810
Thereafter	3,783	3,783
Total undiscounted lease payments	$ 12,514	$ 13,089	$ 8,139

Leased Property - Assets And _3

Leased Property - Assets And Liabilities, Lessee (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Right-of-use assets:
Operating leases	$ 5,572	$ 6,474	$ 7,255	$ 7,869
Finance leases	2,518	2,569	2,620	2,824
Total right-of-use assets	8,090	9,043	9,875	10,693
Lease liabilities:
Operating leases	5,837	6,782	7,592	8,268
Finance leases	2,666	2,705	2,745	2,897
Total lease liabilities	$ 8,503	$ 9,487	$ 10,337	$ 11,165

Leased Property - Lease, Cost_3

Leased Property - Lease, Cost (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Finance lease cost
Right-of-use asset amortization	$ 51	$ 51	$ 51	$ 51	$ 102	$ 102	$ 204	$ 207	$ 34
Interest expense	15	15	16	16	30	32	63	39	6
Operating lease cost	839	839	594	594	1,667	1,195	2,495	2,517	2,344
Total lease cost	$ 905	$ 905	$ 661	$ 661	$ 1,799	$ 1,329	$ 2,762	$ 2,763	$ 2,384

Leased Property - Lessee, Ope_3

Leased Property - Lessee, Operating Lease and Financing Lease, Payment to be Received, Fiscal Year Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Operating Leases
Remaining six months ending December 31, 2023	$ 1,591	$ 2,606
2024	2,305	2,294	$ 3,474
2025	849	839	2,294
2026	415	415	839
2027	366	366	415
Thereafter	625	625
Total undiscounted lease payments	6,151	7,145	8,014
Less: discount	(314)	(363)	(422)
Operating leases	5,837	6,782	7,592	$ 8,268
Finance Leases
Remaining six months ending December 31, 2023	110	165
2024	224	224	220
2025	228	228	224
2026	233	233	228
2027	238	238	233
Thereafter	2,034	2,033
Total undiscounted lease payments	3,067	3,121	3,176
Less: discount	(401)	(416)	(431)
Finance leases	$ 2,666	$ 2,705	$ 2,745	$ 2,897

Leased Property - Additional _3

Leased Property - Additional Information on Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Finance lease weighted average remaining lease term (years)	12 years 6 months 3 days		12 years 3 months 3 days		12 years 9 months 3 days	13 years 9 months 3 days
Finance lease weighted average discount rate	2.22%		2.22%		2.22%	2.22%
Operating lease weighted average remaining lease term (years)	3 years 1 month 24 days		3 years 1 month 24 days		3 years 3 months 3 days	4 years 1 month 13 days
Operating lease weighted average discount rate	3.16%		3.06%		3.19%	2.89%
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 868	$ 569	$ 1,739	$ 1,238	$ 2,557	$ 2,323
Operating cash flows from finance leases	15	16	30	32	63	39	$ 6
Financing cash flows from finance leases	39	38	80	76	152	152
Right-of-use assets obtained in exchange for new finance lease liabilities	0	0	0	0	0	0
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 0	$ 0	$ 0	$ 502	$ 1,558	$ 856

Regulatory Capital Matters - Sc

Regulatory Capital Matters - Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Details) $ in Thousands	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Consolidated
Total Capital to risk weighted assets
Actual Amount	$ 442,338	$ 439,563	$ 433,958
Actual Ratio	0.1871	0.1865	0.1888
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount, before adjustments			$ 183,867
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 248,273	$ 247,459	241,325
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	236,450	235,675	229,834
Tier 1 (Core) Capital to risk weighted assets
Actual Amount	$ 416,249	$ 413,592	$ 412,946
Actual Ratio	0.1760	0.1755	0.1797
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount, before adjustments			$ 137,900
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 200,983	$ 200,324	195,358
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	189,160	188,540	186,867
Common Tier 1 (CET 1) to risk-weighted assets
Actual Amount	$ 416,249	$ 413,592	$ 412,946
Actual Ratio	0.1760	0.1755	0.1797
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount, before adjustments			$ 103,425
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 165,515	$ 164,973	160,883
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	153,693	153,189	149,392
Tier 1 (Core) Capital to average assets
Actual Amount	$ 416,249	$ 413,592	$ 412,946
Actual Ratio	0.1120	0.1119	0.1134
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 148,725	$ 147,859	$ 145,605
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	185,906	184,824	182,007
Burke & Herbert Bank & Trust
Total Capital to risk weighted assets
Actual Amount	$ 439,212	$ 436,046	$ 432,290	$ 409,923
Actual Ratio	0.1857	0.1850	0.1881	0.1884
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount, before adjustments			$ 183,900
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 248,365	$ 247,528	241,368	$ 174,050
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	236,538	235,741	229,874	217,562
Tier 1 (Core) Capital to risk weighted assets
Actual Amount	$ 413,123	$ 410,075	$ 411,251	$ 382,672
Actual Ratio	0.1747	0.1740	0.1789	0.1759
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount, before adjustments			$ 137,925
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 201,057	$ 200,380	195,393	$ 130,537
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	189,230	188,593	183,900	174,050
Common Tier 1 (CET 1) to risk-weighted assets
Actual Amount	$ 413,123	$ 410,075	$ 411,251	$ 382,672
Actual Ratio	0.1747	0.1740	0.1789	0.1759
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount, before adjustments			$ 103,443
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 165,576	$ 165,019	160,912	$ 97,903
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	153,750	153,232	149,418	141,415
Tier 1 (Core) Capital to average assets
Actual Amount	$ 413,123	$ 410,075	$ 411,251	$ 382,672
Actual Ratio	0.1111	0.1109	0.1130	0.1081
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 148,770	$ 147,913	$ 145,605	$ 141,594
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 185,962	$ 184,891	$ 182,007	$ 176,992

Regulatory Capital Matters - Na

Regulatory Capital Matters - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Regulatory Capital Requirements under Banking Regulations [Abstract]
Retained earnings available to be declared as dividend	$ 188.5	$ 190.8	$ 190.9

Regulatory Capital Matters - _2

Regulatory Capital Matters - Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Details) $ in Thousands	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Consolidated
Total Capital to risk weighted assets
Actual Amount	$ 442,338	$ 439,563	$ 433,958
Actual Ratio	0.1871	0.1865	0.1888
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 248,273	$ 247,459	$ 241,325
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.105	0.105	0.105
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 236,450	$ 235,675	$ 229,834
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.100	0.100	0.100
Tier 1 (Core) Capital to risk weighted assets
Actual Amount	$ 416,249	$ 413,592	$ 412,946
Actual Ratio	0.1760	0.1755	0.1797
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 200,983	$ 200,324	$ 195,358
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.085	0.085	0.085
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 189,160	$ 188,540	$ 186,867
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.080	0.080	0.080
Common Tier 1 (CET 1) to risk-weighted assets
Actual Amount	$ 416,249	$ 413,592	$ 412,946
Actual Ratio	0.1760	0.1755	0.1797
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 165,515	$ 164,973	$ 160,883
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.070	0.070	0.070
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 153,693	$ 153,189	$ 149,392
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.065	0.065	0.065
Tier 1 (Core) Capital to average assets
Actual Amount	$ 416,249	$ 413,592	$ 412,946
Actual Ratio	0.1120	0.1119	0.1134
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 148,725	$ 147,859	$ 145,605
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.040	0.040	0.040
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 185,906	$ 184,824	$ 182,007
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.050	0.050	0.050
Burke & Herbert Bank & Trust
Total Capital to risk weighted assets
Actual Amount	$ 439,212	$ 436,046	$ 432,290	$ 409,923
Actual Ratio	0.1857	0.1850	0.1881	0.1884
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 248,365	$ 247,528	$ 241,368	$ 174,050
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.105	0.105	0.105
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 236,538	$ 235,741	$ 229,874	217,562
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.100	0.100	0.100
Tier 1 (Core) Capital to risk weighted assets
Actual Amount	$ 413,123	$ 410,075	$ 411,251	$ 382,672
Actual Ratio	0.1747	0.1740	0.1789	0.1759
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 201,057	$ 200,380	$ 195,393	$ 130,537
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.085	0.085	0.085
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 189,230	$ 188,593	$ 183,900	174,050
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.080	0.080	0.080
Common Tier 1 (CET 1) to risk-weighted assets
Actual Amount	$ 413,123	$ 410,075	$ 411,251	$ 382,672
Actual Ratio	0.1747	0.1740	0.1789	0.1759
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 165,576	$ 165,019	$ 160,912	$ 97,903
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.070	0.070	0.070
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 153,750	$ 153,232	$ 149,418	141,415
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.065	0.065	0.065
Tier 1 (Core) Capital to average assets
Actual Amount	$ 413,123	$ 410,075	$ 411,251	$ 382,672
Actual Ratio	0.1111	0.1109	0.1130	0.1081
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 148,770	$ 147,913	$ 145,605	$ 141,594
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.040	0.040	0.040
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 185,962	$ 184,891	$ 182,007	$ 176,992
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.050	0.050	0.050

Regulatory Capital Matters - _3

Regulatory Capital Matters - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Regulatory Capital Requirements under Banking Regulations [Abstract]
Retained earnings available to be declared as dividend	$ 188.5	$ 190.8	$ 190.9

Regulatory Capital Matters - _4

Regulatory Capital Matters - Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Details) $ in Thousands	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Consolidated
Total Capital to risk weighted assets
Actual Amount	$ 442,338	$ 439,563	$ 433,958
Actual Ratio	0.1871	0.1865	0.1888
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 248,273	$ 247,459	$ 241,325
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.105	0.105	0.105
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 236,450	$ 235,675	$ 229,834
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.100	0.100	0.100
Tier 1 (Core) Capital to risk weighted assets
Actual Amount	$ 416,249	$ 413,592	$ 412,946
Actual Ratio	0.1760	0.1755	0.1797
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 200,983	$ 200,324	$ 195,358
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.085	0.085	0.085
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 189,160	$ 188,540	$ 186,867
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.080	0.080	0.080
Common Tier 1 (CET 1) to risk-weighted assets
Actual Amount	$ 416,249	$ 413,592	$ 412,946
Actual Ratio	0.1760	0.1755	0.1797
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 165,515	$ 164,973	$ 160,883
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.070	0.070	0.070
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 153,693	$ 153,189	$ 149,392
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.065	0.065	0.065
Tier 1 (Core) Capital to average assets
Actual Amount	$ 416,249	$ 413,592	$ 412,946
Actual Ratio	0.1120	0.1119	0.1134
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 148,725	$ 147,859	$ 145,605
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.040	0.040	0.040
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 185,906	$ 184,824	$ 182,007
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.050	0.050	0.050
Burke & Herbert Bank & Trust
Total Capital to risk weighted assets
Actual Amount	$ 439,212	$ 436,046	$ 432,290	$ 409,923
Actual Ratio	0.1857	0.1850	0.1881	0.1884
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 248,365	$ 247,528	$ 241,368	$ 174,050
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.105	0.105	0.105
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 236,538	$ 235,741	$ 229,874	217,562
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.100	0.100	0.100
Tier 1 (Core) Capital to risk weighted assets
Actual Amount	$ 413,123	$ 410,075	$ 411,251	$ 382,672
Actual Ratio	0.1747	0.1740	0.1789	0.1759
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 201,057	$ 200,380	$ 195,393	$ 130,537
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.085	0.085	0.085
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 189,230	$ 188,593	$ 183,900	174,050
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.080	0.080	0.080
Common Tier 1 (CET 1) to risk-weighted assets
Actual Amount	$ 413,123	$ 410,075	$ 411,251	$ 382,672
Actual Ratio	0.1747	0.1740	0.1789	0.1759
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 165,576	$ 165,019	$ 160,912	$ 97,903
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.070	0.070	0.070
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 153,750	$ 153,232	$ 149,418	141,415
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.065	0.065	0.065
Tier 1 (Core) Capital to average assets
Actual Amount	$ 413,123	$ 410,075	$ 411,251	$ 382,672
Actual Ratio	0.1111	0.1109	0.1130	0.1081
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Amount	$ 148,770	$ 147,913	$ 145,605	$ 141,594
Minimum Required for Capital Adequacy Purposes (includes applicable capital conservation buffer) Ratio	0.040	0.040	0.040
To Be Well Capitalized Under Prompt Corrective Action Regulations Amount	$ 185,962	$ 184,891	$ 182,007	$ 176,992
To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio	0.050	0.050	0.050

Regulatory Capital Matters Narr

Regulatory Capital Matters Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Regulatory Capital Requirements under Banking Regulations [Abstract]
Retained earnings available to be declared as dividend	$ 188.5	$ 190.8	$ 190.9

Derivatives - Narrative (Detail

Derivatives - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Cash flow hedge gain (loss) to be reclassified within 12 months	$ 1.5	$ 1.5	$ 1.6

Derivatives - Schedule of Deriv

Derivatives - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Other liabilities | Derivatives not designated as hedges
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amount	$ 66,709	$ 34,439	$ 34,674	$ 37,508
Fair Value	1,740	1,045	1,311	1,630
Other liabilities | Cash Flow Hedging | Derivatives designated as hedges
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amount	50,000	50,000	50,000
Fair Value	1,836	1,866	2,254
Other assets | Derivatives not designated as hedges
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Notional Amount	66,709	34,439	34,674	37,508
Fair Value	$ 1,740	$ 1,045	$ 1,311	$ 1,630

Derivatives - Schedule of Accum

Derivatives - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain or (Loss) Recognized in AOCI on Derivative	$ (348)	$ 60	$ (459)	$ (636)	$ (289)	$ (1,095)	$ (2,178)	$ 0	$ 0
Amount of Gain or (Loss) Reclassified from AOCI into Income	(423)	(363)	108	75	(786)	182	(167)	0	0
Interest Rate Products
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain or (Loss) Recognized in AOCI on Derivative	(348)	60	(459)	(636)	(289)	(1,095)	(2,178)	0	0
Interest Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Income	$ (423)	$ (363)	$ 108	$ 75	$ (786)	$ 182	$ (167)	$ 0	$ 0

Derivatives - Schedule of Der_2

Derivatives - Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of gain or (loss) reclassified from AOCI into income	$ (423)	$ (363)	$ 108	$ 75	$ (786)	$ 182	$ (167)	$ 0	$ 0
Interest Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded.	(914)	(203)	108	75	(1,117)	182	(167)	0	0
Interest Income | Interest contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of gain or (loss) reclassified from AOCI into income	(423)	(363)	108	75	(786)	182	(167)	0	0
Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring	0	0	0	0	0	0	0	0	0
Interest Expense
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded.	0	0	0	0	0	0	0	0	0
Interest Expense | Interest contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of gain or (loss) reclassified from AOCI into income	0	0	0	0	0	0	0	0	0
Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0

Derivatives - Narrative (Deta_2

Derivatives - Narrative (Details) - USD ($)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Cash flow hedge gain (loss) to be reclassified within 12 months	$ 1,500,000	$ 1,500,000	$ 1,600,000
Fair value of interest rate swaps	0	0
Fair value of liabilities	$ 4,100,000	$ 1,800,000

Derivatives - Schedule of Fair

Derivatives - Schedule of Fair Value Hedging Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Derivative [Line Items]
Carrying Amount of the Hedged Assets/(Liabilities)	$ 298,853	$ 302,362	$ 0
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)	(1,106)	2,362	0
Securities available-for-sale, at fair value
Derivative [Line Items]
Carrying Amount of the Hedged Assets/(Liabilities)	298,853	302,362	0
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)	(1,106)	2,362	$ 0
Closed portfolio, amortized cost	298,900	302,400
Closed portfolio, cumulative basis adjustment	$ (1,100)	2,400
Closed portfolio, hedged amount		$ 300,000

Derivatives - Schedule of Der_3

Derivatives - Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Other liabilities | Derivatives not designated as hedges:
Derivatives, Fair Value [Line Items]
Notional Amount	$ 66,709	$ 34,439	$ 34,674	$ 37,508
Fair Value	1,740	1,045	1,311	1,630
Other liabilities | Cash Flow Hedging | Derivatives designated as hedges:
Derivatives, Fair Value [Line Items]
Notional Amount	50,000	50,000	50,000
Fair Value	1,836	1,866	2,254
Other liabilities | Fair Value Hedging | Derivatives designated as hedges:
Derivatives, Fair Value [Line Items]
Notional Amount		300,000	0
Fair Value		2,283	0
Other assets | Derivatives not designated as hedges:
Derivatives, Fair Value [Line Items]
Notional Amount	66,709	34,439	34,674	37,508
Fair Value	$ 1,740	$ 1,045	$ 1,311	$ 1,630

Derivatives - Schedule of Acc_2

Derivatives - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain or (Loss) Recognized in OCI	$ (348)	$ 60	$ (459)	$ (636)	$ (289)	$ (1,095)	$ (2,178)	$ 0	$ 0
Amount of Gain or (Loss)	0	0	0	0	0	0
Amount of Gain or (Loss) Reclassified from AOCI into Income	(423)	(363)	108	75	(786)	182	(167)	0	0
Interest Rate Products
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain or (Loss) Recognized in OCI	(348)	60	(459)	(636)	(289)	(1,095)	(2,178)	0	0
Amount of Gain or (Loss)	0	0	0	0	0	0
Interest Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain or (Loss)	0	0	0	0	0	0
Amount of Gain or (Loss) Reclassified from AOCI into Income	$ (423)	$ (363)	$ 108	$ 75	$ (786)	$ 182	$ (167)	$ 0	$ 0

Derivatives - Schedule of Der_4

Derivatives - Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Income	$ (423)	$ (363)	$ 108	$ 75	$ (786)	$ 182	$ (167)	$ 0	$ 0
Interest Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded.	(914)	(203)	108	75	(1,117)	182	(167)	0	0
Interest Income | Interest Rate Products
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Hedged items	(3,468)	2,362	0	0	(1,106)	0
Derivatives designated as hedging instruments	2,977	(2,202)	0	0	776	0
Amount of Gain or (Loss) Reclassified from AOCI into Income	(423)	(363)	108	75	(786)	182	(167)	0	0
Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring	0	0	0	0	0	0	0	0	0
Interest Expense
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded.	0	0	0	0	0	0	0	0	0
Interest Expense | Interest Rate Products
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Hedged items	0	0	0	0	0	0
Derivatives designated as hedging instruments	0	0	0	0	0	0
Amount of Gain or (Loss) Reclassified from AOCI into Income	0	0	0	0	0	0	0	0	0
Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0

Derivatives - Narrative (Deta_3

Derivatives - Narrative (Details) - USD ($)	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Cash flow hedge gain (loss) to be reclassified within 12 months	$ 1,500,000	$ 1,500,000	$ 1,600,000
Fair value of interest rate swaps	0	0
Fair value of liabilities	$ 4,100,000	$ 1,800,000

Derivatives - Schedule of Fai_2

Derivatives - Schedule of Fair Value Hedging Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Derivative [Line Items]
Carrying Amount of the Hedged Assets/(Liabilities)	$ 298,853	$ 302,362	$ 0
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)	(1,106)	2,362	0
Securities available-for-sale, at fair value
Derivative [Line Items]
Carrying Amount of the Hedged Assets/(Liabilities)	298,853	302,362	0
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)	(1,106)	2,362	$ 0
Closed portfolio, amortized cost	298,900	302,400
Closed portfolio, increase (decrease) cumulative basis adjustment	$ (1,100)	$ 2,400

Derivatives Schedule of Derivat

Derivatives Schedule of Derivative Instruments in Statement of Financial Position, Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Other liabilities | Derivatives designated as hedges | Cash Flow Hedging
Derivatives, Fair Value [Line Items]
Notional Amount	$ 50,000	$ 50,000	$ 50,000
Fair Value	1,836	1,866	2,254
Other liabilities | Derivatives not designated as hedges
Derivatives, Fair Value [Line Items]
Notional Amount	66,709	34,439	34,674	$ 37,508
Fair Value	1,740	1,045	1,311	1,630
Other assets | Derivatives not designated as hedges
Derivatives, Fair Value [Line Items]
Notional Amount	66,709	34,439	34,674	37,508
Fair Value	$ 1,740	$ 1,045	$ 1,311	$ 1,630

Derivatives - Schedule of Acc_3

Derivatives - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain or (Loss) Recognized in OCI	$ (348)	$ 60	$ (459)	$ (636)	$ (289)	$ (1,095)	$ (2,178)	$ 0	$ 0
Amount of Gain or (Loss) Reclassified from AOCI into Income	(423)	(363)	108	75	(786)	182	(167)	0	0
Amount of Gain or (Loss)	0	0	0	0	0	0
Interest Rate Products
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain or (Loss) Recognized in OCI	(348)	60	(459)	(636)	(289)	(1,095)	(2,178)	0	0
Amount of Gain or (Loss)	0	0	0	0	0	0
Interest Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain or (Loss) Reclassified from AOCI into Income	(423)	(363)	108	75	(786)	182	$ (167)	$ 0	$ 0
Amount of Gain or (Loss)	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0

Derivatives - Schedule of Der_5

Derivatives - Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of gain or (loss) reclassified from AOCI into income	$ (423)	$ (363)	$ 108	$ 75	$ (786)	$ 182	$ (167)	$ 0	$ 0
Interest Income
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded.	(914)	(203)	108	75	(1,117)	182	(167)	0	0
Interest Income | Interest Rate Products
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Hedged items	(3,468)	2,362	0	0	(1,106)	0
Derivatives designated as hedging instruments	2,977	(2,202)	0	0	776	0
Amount of gain or (loss) reclassified from AOCI into income	(423)	(363)	108	75	(786)	182	(167)	0	0
Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring	0	0	0	0	0	0	0	0	0
Interest Expense
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded.	0	0	0	0	0	0	0	0	0
Interest Expense | Interest Rate Products
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Hedged items	0	0	0	0	0	0
Derivatives designated as hedging instruments	0	0	0	0	0	0
Amount of gain or (loss) reclassified from AOCI into income	0	0	0	0	0	0	0	0	0
Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring	$ 4,200	$ (74,500)	$ (13,000)	$ 13,000	$ 645,000
Mortgage loans held for sale			0
Interest Rate Lock Commitments
Derivatives, Fair Value [Line Items]
Derivative, notional amount			0
Derivative asset, notional amount	$ 838,000	$ 1,400,000	$ 926,000	$ 24,700,000

Commitments and Contingencies_4

Commitments and Contingencies - Schedule of Fair Value, off-Balance-Sheet Risks (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Commitments to extend credit, before adjustments
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instrument contractual amount			$ 0	$ 0
Commitments to extend credit
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instrument contractual amount	$ 247,319	$ 277,463	291,265
Commercial letters of credit
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instrument contractual amount	$ 9,992	$ 8,525	8,539	7,660
Undisbursed balance - revolving lines of credit
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instrument contractual amount			$ 291,265	$ 240,179

Commitments and Contingencies_5

Commitments and Contingencies (Details) - USD ($)	3 Months Ended			6 Months Ended	12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Amount of gain or (loss) reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring		$ 4,200	$ (74,500)		$ (13,000)	$ 13,000	$ 645,000
Credit loss liability expense (reversal)		267,300		$ 170,000	0	0	$ (1,380,000)
Unfunded Loan Commitment
Derivatives, Fair Value [Line Items]
Credit loss liability expense (reversal)	$ (97,300)	(7,500)		$ (104,700)
Interest Rate Lock Commitments
Derivatives, Fair Value [Line Items]
Derivative asset, notional amount		$ 838,000	$ 1,400,000		$ 926,000	$ 24,700,000

Commitments and Contingencies_6

Commitments and Contingencies - Schedule of Fair Value, off-Balance-Sheet Risks (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Commitments to extend credit
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instrument contractual amount	$ 247,319	$ 277,463	$ 291,265
Commercial letters of credit
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instrument contractual amount	$ 9,992	$ 8,525	$ 8,539	$ 7,660

Commitment and Contingencies -

Commitment and Contingencies - Schedule of Fair Value, off-Balance-Sheet Risks (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Commitments to extend credit
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instrument contractual amount	$ 247,319	$ 277,463	$ 291,265
Commercial letters of credit
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items]
Financial instrument contractual amount	$ 9,992	$ 8,525	$ 8,539	$ 7,660

Commitment and Contingencies _2

Commitment and Contingencies - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended	12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
(Recapture of) Provision for off-balance sheet exposure		$ 267,300	$ 170,000	$ 0	$ 0	$ (1,380,000)
Unfunded Loan Commitment
Derivatives, Fair Value [Line Items]
(Recapture of) Provision for off-balance sheet exposure	$ (97,300)	$ (7,500)	$ (104,700)

Transactions with Related Par_3

Transactions with Related Parties - Schedule Of Aggregate Loan Balances With Related Parties (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($)
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning	$ 1,745,073
Balance, ending	1,887,221
Related Party
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Balance, beginning	73,726
New loans	28,598
Repayments	(5,927)
Balance, ending	$ 96,397

Transactions with Related Par_4

Transactions with Related Parties - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Deposits	$ 3,005,263	$ 3,032,391	$ 2,920,400	$ 2,933,417
Related Party
Related Party Transaction [Line Items]
Deposits			$ 109,071	$ 102,268

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities, Recurring (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financial assets
Investment Securities	$ 1,252,190	$ 1,362,785	$ 1,371,757	$ 1,605,681
Recurring
Financial assets
Investment Securities	1,252,190	1,362,785	1,371,757	1,605,681
Loans held-for-sale, at fair value	456	360	0	1,249
Derivatives	1,740	1,045	1,311	1,603
Financial liabilities
Derivatives	3,576	5,194	3,565	1,589
Level 1 | Recurring
Financial assets
Investment Securities	175,397	178,419	174,993	169,382
Loans held-for-sale, at fair value	0	0	0	0
Derivatives	0	0	0	0
Financial liabilities
Derivatives	0	0	0	0
Level 2 | Recurring
Financial assets
Investment Securities	1,076,793	1,184,366	1,196,764	1,436,299
Loans held-for-sale, at fair value	456	360	0	1,249
Derivatives	1,740	1,045	1,311	1,603
Financial liabilities
Derivatives	3,576	5,194	3,565	1,589
Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Loans held-for-sale, at fair value	0	0	0	0
Derivatives	0	0	0	0
Financial liabilities
Derivatives	0	0	0	0
U.S. Treasuries and government agencies
Financial assets
Investment Securities	175,397	178,419	174,993	184,441
U.S. Treasuries and government agencies | Recurring
Financial assets
Investment Securities	175,397	178,419	174,993	184,441
U.S. Treasuries and government agencies | Level 1 | Recurring
Financial assets
Investment Securities	175,397	178,419	174,993	169,382
U.S. Treasuries and government agencies | Level 2 | Recurring
Financial assets
Investment Securities	0	0	0	15,059
U.S. Treasuries and government agencies | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Obligations of states and municipalities
Financial assets
Investment Securities	455,862	468,362	453,907	665,567
Obligations of states and municipalities | Recurring
Financial assets
Investment Securities	455,862	468,362	453,907	665,567
Obligations of states and municipalities | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Obligations of states and municipalities | Level 2 | Recurring
Financial assets
Investment Securities	455,862	468,362	453,907	665,567
Obligations of states and municipalities | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Residential mortgage backed - agency
Financial assets
Investment Securities	41,990	52,670	53,061	62,787
Residential mortgage backed - agency | Recurring
Financial assets
Investment Securities	41,990	52,670	53,061	62,787
Residential mortgage backed - agency | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Residential mortgage backed - agency | Level 2 | Recurring
Financial assets
Investment Securities	41,990	52,670	53,061	62,787
Residential mortgage backed - agency | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Residential mortgage backed - non-agency
Financial assets
Investment Securities	296,104	321,150	339,295	244,308
Residential mortgage backed - non-agency | Recurring
Financial assets
Investment Securities	296,104	321,150	339,295	244,308
Residential mortgage backed - non-agency | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Residential mortgage backed - non-agency | Level 2 | Recurring
Financial assets
Investment Securities	296,104	321,150	339,295	244,308
Residential mortgage backed - non-agency | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Commercial mortgage backed - agency
Financial assets
Investment Securities	36,086	57,832	59,933	78,883
Commercial mortgage backed - agency | Recurring
Financial assets
Investment Securities	36,086	57,832	59,933	78,883
Commercial mortgage backed - agency | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Commercial mortgage backed - agency | Level 2 | Recurring
Financial assets
Investment Securities	36,086	57,832	59,933	78,883
Commercial mortgage backed - agency | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Commercial mortgage backed - non-agency
Financial assets
Investment Securities	164,307	183,225	183,299	172,204
Commercial mortgage backed - non-agency | Recurring
Financial assets
Investment Securities	164,307	183,225	183,299	172,204
Commercial mortgage backed - non-agency | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Commercial mortgage backed - non-agency | Level 2 | Recurring
Financial assets
Investment Securities	164,307	183,225	183,299	172,204
Commercial mortgage backed - non-agency | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Asset-backed
Financial assets
Investment Securities	74,479	92,599	98,626	195,525
Asset-backed | Recurring
Financial assets
Investment Securities	74,479	92,599	98,626	195,525
Asset-backed | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Asset-backed | Level 2 | Recurring
Financial assets
Investment Securities	74,479	92,599	98,626	195,525
Asset-backed | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Other
Financial assets
Investment Securities	7,965	8,528	8,643	1,966
Other | Recurring
Financial assets
Investment Securities	7,965	8,528	8,643	1,966
Other | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Other | Level 2 | Recurring
Financial assets
Investment Securities	7,965	8,528	8,643	1,966
Other | Level 3 | Recurring
Financial assets
Investment Securities	$ 0	$ 0	$ 0	$ 0

Fair Value Measurements - Sch_2

Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities, Nonrecurring (Details) - Nonrecurring - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	$ 0	$ 0	$ 0	$ 0
Commercial Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	308	318	290	12,552
Owner-occupied commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	1,354	1,371	1,295	502
Acquisition, construction & development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Commercial & industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Single family residential
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	2,221	2,242	911	2,052
Consumer non-real estate and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	0	0	0	0
Level 1 | Commercial Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 1 | Owner-occupied commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 1 | Acquisition, construction & development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 1 | Commercial & industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 1 | Single family residential
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 1 | Consumer non-real estate and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	0	0	0	0
Level 2 | Commercial Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 2 | Owner-occupied commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 2 | Acquisition, construction & development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 2 | Commercial & industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 2 | Single family residential
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 2 | Consumer non-real estate and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	0	0	0	0
Level 3 | Commercial Real Estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	308	318	290	12,552
Level 3 | Owner-occupied commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	1,354	1,371	1,295	502
Level 3 | Acquisition, construction & development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 3 | Commercial & industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 3 | Single family residential
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	2,221	2,242	911	2,052
Level 3 | Consumer non-real estate and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 0	$ 0	$ 0	$ 0

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Measurement Inputs and Valuation Techniques (Details) - Level 3 - Nonrecurring $ in Thousands	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Discounted cash flow analysis
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	$ 3,883	$ 3,931	$ 2,496
Discounted cash flow analysis | Weighted Average | Market rate for borrower
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input	0.050	0.050	0.052	0.054
Discounted cash flow analysis | Maximum | Market rate for borrower
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input	0.085	0.085	0.06	0.06
Discounted cash flow analysis | Minimum | Market rate for borrower
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input	0.036	0.036	0.045	0.04
Discounted appraised value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans				$ 15,106
Discounted appraised value | Weighted Average | Discounted appraised value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input				0.080
Discounted appraised value | Maximum | Discounted appraised value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input				0.09
Discounted appraised value | Minimum | Discounted appraised value
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input				0.07

Fair Value Measurements - Fai_2

Fair Value Measurements - Fair Value Disclosure of Asset and Liability Not Measured at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financial assets
Cash and due from banks	$ 9,047	$ 10,616	$ 9,124	$ 8,989
Carrying Amount
Financial assets
Cash and due from banks	9,047	10,616	9,124	8,989
Loans, net	1,975,050	1,926,034	1,866,182	1,713,364
Accrued interest	14,781	15,158	15,481	15,253
Financial liabilities
Other borrowed funds	249,000	321,700	343,100	275,000
Accrued interest	3,832	2,763	1,452	309
Carrying Amount | Non-Interest Bearing
Financial liabilities
Deposit liabilities	876,396	906,723	960,692	930,847
Carrying Amount | Interest-bearing
Financial liabilities
Deposit liabilities	2,128,867	2,125,668	1,959,708	2,002,570
Carrying Amount | Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	71,752	106,323	41,171	68,374
Fair Value Amount
Financial assets
Cash and due from banks	9,047	10,616	9,124	8,989
Loans, net	1,834,415	1,813,068	1,768,903	1,697,752
Accrued interest	14,781	15,158	15,481	15,253
Financial liabilities
Other borrowed funds	248,997	321,667	342,904	274,999
Accrued interest	3,832	2,763	1,452	309
Fair Value Amount | Non-Interest Bearing
Financial liabilities
Deposit liabilities	876,396	906,723	960,692	930,847
Fair Value Amount | Interest-bearing
Financial liabilities
Deposit liabilities	2,119,927	2,118,085	1,951,227	2,002,089
Fair Value Amount | Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	71,752	106,323	41,171	68,374
Level 1 | Fair Value Amount
Financial assets
Cash and due from banks	9,047	10,616	9,124	8,989
Loans, net	0	0	0	0
Accrued interest	0	0	0	0
Financial liabilities
Other borrowed funds	0	0	0	0
Accrued interest	0	0	0	0
Level 1 | Fair Value Amount | Non-Interest Bearing
Financial liabilities
Deposit liabilities	0	0	0	0
Level 1 | Fair Value Amount | Interest-bearing
Financial liabilities
Deposit liabilities	0	0	0	0
Level 1 | Fair Value Amount | Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	71,752	106,323	41,171	68,374
Level 2 | Fair Value Amount
Financial assets
Cash and due from banks	0	0	0	0
Loans, net	0	0	0	0
Accrued interest	14,781	15,158	15,481	15,253
Financial liabilities
Other borrowed funds	248,997	321,667	342,904	274,999
Accrued interest	3,832	2,763	1,452	309
Level 2 | Fair Value Amount | Non-Interest Bearing
Financial liabilities
Deposit liabilities	876,396	906,723	960,692	930,847
Level 2 | Fair Value Amount | Interest-bearing
Financial liabilities
Deposit liabilities	2,119,927	2,118,085	1,951,227	2,002,089
Level 2 | Fair Value Amount | Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	0	0	0	0
Level 3 | Fair Value Amount
Financial assets
Cash and due from banks	0	0	0	0
Loans, net	1,834,415	1,813,068	1,768,903	1,697,752
Accrued interest	0	0	0	0
Financial liabilities
Other borrowed funds	0	0	0	0
Accrued interest	0	0	0	0
Level 3 | Fair Value Amount | Non-Interest Bearing
Financial liabilities
Deposit liabilities	0	0	0	0
Level 3 | Fair Value Amount | Interest-bearing
Financial liabilities
Deposit liabilities	0	0	0	0
Level 3 | Fair Value Amount | Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	$ 0	$ 0	$ 0	$ 0

Fair Value Measurements - Sch_3

Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities, Recurring (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financial assets
Investment Securities	$ 1,252,190	$ 1,362,785	$ 1,371,757	$ 1,605,681
Recurring
Financial assets
Investment Securities	1,252,190	1,362,785	1,371,757	1,605,681
Loans held-for-sale, at fair value	456	360	0	1,249
Derivatives	1,740	1,045	1,311	1,603
Financial liabilities
Derivatives	3,576	5,194	3,565	1,589
Level 1 | Recurring
Financial assets
Investment Securities	175,397	178,419	174,993	169,382
Loans held-for-sale, at fair value	0	0	0	0
Derivatives	0	0	0	0
Financial liabilities
Derivatives	0	0	0	0
Level 2 | Recurring
Financial assets
Investment Securities	1,076,793	1,184,366	1,196,764	1,436,299
Loans held-for-sale, at fair value	456	360	0	1,249
Derivatives	1,740	1,045	1,311	1,603
Financial liabilities
Derivatives	3,576	5,194	3,565	1,589
Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Loans held-for-sale, at fair value	0	0	0	0
Derivatives	0	0	0	0
Financial liabilities
Derivatives	0	0	0	0
U.S. Treasuries and government agencies
Financial assets
Investment Securities	175,397	178,419	174,993	184,441
U.S. Treasuries and government agencies | Recurring
Financial assets
Investment Securities	175,397	178,419	174,993	184,441
U.S. Treasuries and government agencies | Level 1 | Recurring
Financial assets
Investment Securities	175,397	178,419	174,993	169,382
U.S. Treasuries and government agencies | Level 2 | Recurring
Financial assets
Investment Securities	0	0	0	15,059
U.S. Treasuries and government agencies | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Obligations of states and municipalities
Financial assets
Investment Securities	455,862	468,362	453,907	665,567
Obligations of states and municipalities | Recurring
Financial assets
Investment Securities	455,862	468,362	453,907	665,567
Obligations of states and municipalities | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Obligations of states and municipalities | Level 2 | Recurring
Financial assets
Investment Securities	455,862	468,362	453,907	665,567
Obligations of states and municipalities | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Residential mortgage backed - agency
Financial assets
Investment Securities	41,990	52,670	53,061	62,787
Residential mortgage backed - agency | Recurring
Financial assets
Investment Securities	41,990	52,670	53,061	62,787
Residential mortgage backed - agency | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Residential mortgage backed - agency | Level 2 | Recurring
Financial assets
Investment Securities	41,990	52,670	53,061	62,787
Residential mortgage backed - agency | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Residential mortgage backed - non-agency
Financial assets
Investment Securities	296,104	321,150	339,295	244,308
Residential mortgage backed - non-agency | Recurring
Financial assets
Investment Securities	296,104	321,150	339,295	244,308
Residential mortgage backed - non-agency | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Residential mortgage backed - non-agency | Level 2 | Recurring
Financial assets
Investment Securities	296,104	321,150	339,295	244,308
Residential mortgage backed - non-agency | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Commercial mortgage backed - agency
Financial assets
Investment Securities	36,086	57,832	59,933	78,883
Commercial mortgage backed - agency | Recurring
Financial assets
Investment Securities	36,086	57,832	59,933	78,883
Commercial mortgage backed - agency | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Commercial mortgage backed - agency | Level 2 | Recurring
Financial assets
Investment Securities	36,086	57,832	59,933	78,883
Commercial mortgage backed - agency | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Commercial mortgage backed - non-agency
Financial assets
Investment Securities	164,307	183,225	183,299	172,204
Commercial mortgage backed - non-agency | Recurring
Financial assets
Investment Securities	164,307	183,225	183,299	172,204
Commercial mortgage backed - non-agency | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Commercial mortgage backed - non-agency | Level 2 | Recurring
Financial assets
Investment Securities	164,307	183,225	183,299	172,204
Commercial mortgage backed - non-agency | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Asset-backed
Financial assets
Investment Securities	74,479	92,599	98,626	195,525
Asset-backed | Recurring
Financial assets
Investment Securities	74,479	92,599	98,626	195,525
Asset-backed | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Asset-backed | Level 2 | Recurring
Financial assets
Investment Securities	74,479	92,599	98,626	195,525
Asset-backed | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Other
Financial assets
Investment Securities	7,965	8,528	8,643	1,966
Other | Recurring
Financial assets
Investment Securities	7,965	8,528	8,643	1,966
Other | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Other | Level 2 | Recurring
Financial assets
Investment Securities	7,965	8,528	8,643	1,966
Other | Level 3 | Recurring
Financial assets
Investment Securities	$ 0	$ 0	$ 0	$ 0

Fair Value Measurements - Sch_4

Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities, Nonrecurring (Details) - Nonrecurring - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	$ 0	$ 0	$ 0	$ 0
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	0	0	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	0	0	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	0	0	0	0
Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	308	318	290	12,552
Commercial real estate | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Commercial real estate | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Commercial real estate | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	308	318	290	12,552
Owner-occupied commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	1,354	1,371	1,295	502
Owner-occupied commercial real estate | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Owner-occupied commercial real estate | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Owner-occupied commercial real estate | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	1,354	1,371	1,295	502
Acquisition, construction & development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Acquisition, construction & development | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Acquisition, construction & development | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Acquisition, construction & development | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Commercial & industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Commercial & industrial | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Commercial & industrial | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Commercial & industrial | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Single family residential (1-4 units)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	2,221	2,242	911	2,052
Single family residential (1-4 units) | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Single family residential (1-4 units) | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Single family residential (1-4 units) | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	2,221	2,242	911	2,052
Consumer non-real estate and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Consumer non-real estate and other | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Consumer non-real estate and other | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Consumer non-real estate and other | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 0	$ 0	$ 0	$ 0

Fair Value Measurements - Fai_3

Fair Value Measurements - Fair Value Measurement Inputs and Valuation Techniques (Details) - Level 3 - Nonrecurring - Discounted cash flow analysis $ in Thousands	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	$ 3,883	$ 3,931	$ 2,496
Minimum | Market rate for borrower
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input	0.036	0.036	0.045	0.04
Maximum | Market rate for borrower
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input	0.085	0.085	0.06	0.06
Weighted Average | Market rate for borrower
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input	0.050	0.050	0.052	0.054

Fair Value Measurements - Fai_4

Fair Value Measurements - Fair Value Disclosure of Asset and Liability Not Measured at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financial assets
Cash and due from banks	$ 9,047	$ 10,616	$ 9,124	$ 8,989
Carrying Amount
Financial assets
Cash and due from banks	9,047	10,616	9,124	8,989
Loans, net	1,975,050	1,926,034	1,866,182	1,713,364
Accrued interest receivable	14,781	15,158	15,481	15,253
Financial liabilities
Other borrowed funds	249,000	321,700	343,100	275,000
Accrued interest	3,832	2,763	1,452	309
Carrying Amount | Non-Interest Bearing
Financial liabilities
Deposit liabilities	876,396	906,723	960,692	930,847
Carrying Amount | Interest-bearing
Financial liabilities
Deposit liabilities	2,128,867	2,125,668	1,959,708	2,002,570
Carrying Amount | Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	71,752	106,323	41,171	68,374
Fair Value Amount
Financial assets
Cash and due from banks	9,047	10,616	9,124	8,989
Loans, net	1,834,415	1,813,068	1,768,903	1,697,752
Accrued interest receivable	14,781	15,158	15,481	15,253
Financial liabilities
Other borrowed funds	248,997	321,667	342,904	274,999
Accrued interest	3,832	2,763	1,452	309
Fair Value Amount | Non-Interest Bearing
Financial liabilities
Deposit liabilities	876,396	906,723	960,692	930,847
Fair Value Amount | Interest-bearing
Financial liabilities
Deposit liabilities	2,119,927	2,118,085	1,951,227	2,002,089
Fair Value Amount | Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	71,752	106,323	41,171	68,374
Fair Value Amount | Level 1
Financial assets
Cash and due from banks	9,047	10,616	9,124	8,989
Loans, net	0	0	0	0
Accrued interest receivable	0	0	0	0
Financial liabilities
Other borrowed funds	0	0	0	0
Accrued interest	0	0	0	0
Fair Value Amount | Level 1 | Non-Interest Bearing
Financial liabilities
Deposit liabilities	0	0	0	0
Fair Value Amount | Level 1 | Interest-bearing
Financial liabilities
Deposit liabilities	0	0	0	0
Fair Value Amount | Level 1 | Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	71,752	106,323	41,171	68,374
Fair Value Amount | Level 2
Financial assets
Cash and due from banks	0	0	0	0
Loans, net	0	0	0	0
Accrued interest receivable	14,781	15,158	15,481	15,253
Financial liabilities
Other borrowed funds	248,997	321,667	342,904	274,999
Accrued interest	3,832	2,763	1,452	309
Fair Value Amount | Level 2 | Non-Interest Bearing
Financial liabilities
Deposit liabilities	876,396	906,723	960,692	930,847
Fair Value Amount | Level 2 | Interest-bearing
Financial liabilities
Deposit liabilities	2,119,927	2,118,085	1,951,227	2,002,089
Fair Value Amount | Level 2 | Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	0	0	0	0
Fair Value Amount | Level 3
Financial assets
Cash and due from banks	0	0	0	0
Loans, net	1,834,415	1,813,068	1,768,903	1,697,752
Accrued interest receivable	0	0	0	0
Financial liabilities
Other borrowed funds	0	0	0	0
Accrued interest	0	0	0	0
Fair Value Amount | Level 3 | Non-Interest Bearing
Financial liabilities
Deposit liabilities	0	0	0	0
Fair Value Amount | Level 3 | Interest-bearing
Financial liabilities
Deposit liabilities	0	0	0	0
Fair Value Amount | Level 3 | Bank Time Deposits
Financial assets
Interest-bearing deposits with banks	$ 0	$ 0	$ 0	$ 0

Fair Value Measurements - Sch_5

Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities, Recurring (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financial assets
Investment Securities	$ 1,252,190	$ 1,362,785	$ 1,371,757	$ 1,605,681
Recurring
Financial assets
Investment Securities	1,252,190	1,362,785	1,371,757	1,605,681
Loans held-for-sale, at fair value	456	360	0	1,249
Derivatives	1,740	1,045	1,311	1,603
Financial liabilities
Derivatives	3,576	5,194	3,565	1,589
Level 1 | Recurring
Financial assets
Investment Securities	175,397	178,419	174,993	169,382
Loans held-for-sale, at fair value	0	0	0	0
Derivatives	0	0	0	0
Financial liabilities
Derivatives	0	0	0	0
Level 2 | Recurring
Financial assets
Investment Securities	1,076,793	1,184,366	1,196,764	1,436,299
Loans held-for-sale, at fair value	456	360	0	1,249
Derivatives	1,740	1,045	1,311	1,603
Financial liabilities
Derivatives	3,576	5,194	3,565	1,589
Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Loans held-for-sale, at fair value	0	0	0	0
Derivatives	0	0	0	0
Financial liabilities
Derivatives	0	0	0	0
U.S. Treasuries and government agencies
Financial assets
Investment Securities	175,397	178,419	174,993	184,441
U.S. Treasuries and government agencies | Recurring
Financial assets
Investment Securities	175,397	178,419	174,993	184,441
U.S. Treasuries and government agencies | Level 1 | Recurring
Financial assets
Investment Securities	175,397	178,419	174,993	169,382
U.S. Treasuries and government agencies | Level 2 | Recurring
Financial assets
Investment Securities	0	0	0	15,059
U.S. Treasuries and government agencies | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Obligations of states and municipalities
Financial assets
Investment Securities	455,862	468,362	453,907	665,567
Obligations of states and municipalities | Recurring
Financial assets
Investment Securities	455,862	468,362	453,907	665,567
Obligations of states and municipalities | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Obligations of states and municipalities | Level 2 | Recurring
Financial assets
Investment Securities	455,862	468,362	453,907	665,567
Obligations of states and municipalities | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Residential mortgage backed - agency
Financial assets
Investment Securities	41,990	52,670	53,061	62,787
Residential mortgage backed - agency | Recurring
Financial assets
Investment Securities	41,990	52,670	53,061	62,787
Residential mortgage backed - agency | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Residential mortgage backed - agency | Level 2 | Recurring
Financial assets
Investment Securities	41,990	52,670	53,061	62,787
Residential mortgage backed - agency | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Residential mortgage backed - non-agency
Financial assets
Investment Securities	296,104	321,150	339,295	244,308
Residential mortgage backed - non-agency | Recurring
Financial assets
Investment Securities	296,104	321,150	339,295	244,308
Residential mortgage backed - non-agency | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Residential mortgage backed - non-agency | Level 2 | Recurring
Financial assets
Investment Securities	296,104	321,150	339,295	244,308
Residential mortgage backed - non-agency | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Commercial mortgage backed - agency
Financial assets
Investment Securities	36,086	57,832	59,933	78,883
Commercial mortgage backed - agency | Recurring
Financial assets
Investment Securities	36,086	57,832	59,933	78,883
Commercial mortgage backed - agency | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Commercial mortgage backed - agency | Level 2 | Recurring
Financial assets
Investment Securities	36,086	57,832	59,933	78,883
Commercial mortgage backed - agency | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Commercial mortgage backed - non-agency
Financial assets
Investment Securities	164,307	183,225	183,299	172,204
Commercial mortgage backed - non-agency | Recurring
Financial assets
Investment Securities	164,307	183,225	183,299	172,204
Commercial mortgage backed - non-agency | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Commercial mortgage backed - non-agency | Level 2 | Recurring
Financial assets
Investment Securities	164,307	183,225	183,299	172,204
Commercial mortgage backed - non-agency | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Asset-backed
Financial assets
Investment Securities	74,479	92,599	98,626	195,525
Asset-backed | Recurring
Financial assets
Investment Securities	74,479	92,599	98,626	195,525
Asset-backed | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Asset-backed | Level 2 | Recurring
Financial assets
Investment Securities	74,479	92,599	98,626	195,525
Asset-backed | Level 3 | Recurring
Financial assets
Investment Securities	0	0	0	0
Other
Financial assets
Investment Securities	7,965	8,528	8,643	1,966
Other | Recurring
Financial assets
Investment Securities	7,965	8,528	8,643	1,966
Other | Level 1 | Recurring
Financial assets
Investment Securities	0	0	0	0
Other | Level 2 | Recurring
Financial assets
Investment Securities	7,965	8,528	8,643	1,966
Other | Level 3 | Recurring
Financial assets
Investment Securities	$ 0	$ 0	$ 0	$ 0

Fair Value Measurements - Sch_6

Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities, Nonrecurring (Details) - Nonrecurring - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	$ 0	$ 0	$ 0	$ 0
Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	308	318	290	12,552
Owner-occupied commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	1,354	1,371	1,295	502
Acquisition, construction & development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Commercial & industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Single family residential (1-4 units)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	2,221	2,242	911	2,052
Consumer non-real estate and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	0	0	0	0
Level 1 | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 1 | Owner-occupied commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 1 | Acquisition, construction & development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 1 | Commercial & industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 1 | Single family residential (1-4 units)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 1 | Consumer non-real estate and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	0	0	0	0
Level 2 | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 2 | Owner-occupied commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 2 | Acquisition, construction & development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 2 | Commercial & industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 2 | Single family residential (1-4 units)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 2 | Consumer non-real estate and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	0	0	0	0
Level 3 | Commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	308	318	290	12,552
Level 3 | Owner-occupied commercial real estate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	1,354	1,371	1,295	502
Level 3 | Acquisition, construction & development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 3 | Commercial & industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0	0	0	0
Level 3 | Single family residential (1-4 units)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	2,221	2,242	911	2,052
Level 3 | Consumer non-real estate and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	$ 0	$ 0	$ 0	$ 0

Fair Value Measurements - Fai_5

Fair Value Measurements - Fair Value Measurement Inputs and Valuation Techniques (Details) - Level 3 - Nonrecurring - Discounted cash flow analysis $ in Thousands	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2021
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	$ 3,883	$ 3,931	$ 2,496
Minimum | Market rate for borrower
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input	0.036	0.036	0.045	0.04
Maximum | Market rate for borrower
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input	0.085	0.085	0.06	0.06
Weighted Average | Market rate for borrower
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input	0.050	0.050	0.052	0.054

Fair Value Measurements - Fai_6

Fair Value Measurements - Fair Value Disclosure of Asset and Liability Not Measured at Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Financial assets
Cash and due from banks	$ 9,047	$ 10,616	$ 9,124	$ 8,989
Carrying Amount
Financial assets
Cash and due from banks	9,047	10,616	9,124	8,989
Loans, net	1,975,050	1,926,034	1,866,182	1,713,364
Accrued interest receivable	14,781	15,158	15,481	15,253
Financial liabilities
Other borrowed funds	249,000	321,700	343,100	275,000
Accrued interest	3,832	2,763	1,452	309
Carrying Amount | Non-Interest Bearing
Financial liabilities
Deposit liabilities	876,396	906,723	960,692	930,847
Carrying Amount | Interest-bearing
Financial liabilities
Deposit liabilities	2,128,867	2,125,668	1,959,708	2,002,570
Carrying Amount | Bank Time Deposits
Financial assets
Interest-earning deposits with banks	71,752	106,323	41,171	68,374
Fair Value Amount
Financial assets
Cash and due from banks	9,047	10,616	9,124	8,989
Loans, net	1,834,415	1,813,068	1,768,903	1,697,752
Accrued interest receivable	14,781	15,158	15,481	15,253
Financial liabilities
Other borrowed funds	248,997	321,667	342,904	274,999
Accrued interest	3,832	2,763	1,452	309
Fair Value Amount | Non-Interest Bearing
Financial liabilities
Deposit liabilities	876,396	906,723	960,692	930,847
Fair Value Amount | Interest-bearing
Financial liabilities
Deposit liabilities	2,119,927	2,118,085	1,951,227	2,002,089
Fair Value Amount | Bank Time Deposits
Financial assets
Interest-earning deposits with banks	71,752	106,323	41,171	68,374
Level 1 | Fair Value Amount
Financial assets
Cash and due from banks	9,047	10,616	9,124	8,989
Loans, net	0	0	0	0
Accrued interest receivable	0	0	0	0
Financial liabilities
Other borrowed funds	0	0	0	0
Accrued interest	0	0	0	0
Level 1 | Fair Value Amount | Non-Interest Bearing
Financial liabilities
Deposit liabilities	0	0	0	0
Level 1 | Fair Value Amount | Interest-bearing
Financial liabilities
Deposit liabilities	0	0	0	0
Level 1 | Fair Value Amount | Bank Time Deposits
Financial assets
Interest-earning deposits with banks	71,752	106,323	41,171	68,374
Level 2 | Fair Value Amount
Financial assets
Cash and due from banks	0	0	0	0
Loans, net	0	0	0	0
Accrued interest receivable	14,781	15,158	15,481	15,253
Financial liabilities
Other borrowed funds	248,997	321,667	342,904	274,999
Accrued interest	3,832	2,763	1,452	309
Level 2 | Fair Value Amount | Non-Interest Bearing
Financial liabilities
Deposit liabilities	876,396	906,723	960,692	930,847
Level 2 | Fair Value Amount | Interest-bearing
Financial liabilities
Deposit liabilities	2,119,927	2,118,085	1,951,227	2,002,089
Level 2 | Fair Value Amount | Bank Time Deposits
Financial assets
Interest-earning deposits with banks	0	0	0	0
Level 3 | Fair Value Amount
Financial assets
Cash and due from banks	0	0	0	0
Loans, net	1,834,415	1,813,068	1,768,903	1,697,752
Accrued interest receivable	0	0	0	0
Financial liabilities
Other borrowed funds	0	0	0	0
Accrued interest	0	0	0	0
Level 3 | Fair Value Amount | Non-Interest Bearing
Financial liabilities
Deposit liabilities	0	0	0	0
Level 3 | Fair Value Amount | Interest-bearing
Financial liabilities
Deposit liabilities	0	0	0	0
Level 3 | Fair Value Amount | Bank Time Deposits
Financial assets
Interest-earning deposits with banks	$ 0	$ 0	$ 0	$ 0

Common Stock Transactions (Deta

Common Stock Transactions (Details) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended				6 Months Ended		12 Months Ended
	Nov. 15, 2022 shares	Aug. 31, 2021 USD ($) shares	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2022 $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares
Class of Stock [Line Items]
Stockholders' equity note, stock split, conversion ratio	40
Additional shares of common stock (in shares) | shares	39
Treasury stock reissued (in shares) | shares									2,000
Treasury stock, shares acquired (in shares) | shares										90,040	30,240
Treasury stock value acquired | $										$ 4,400	$ 1,545
Aggregate cost | $			$ 42	$ 99	$ 69	$ 27	$ 141	$ 96
Common stock, dividends, per share, declared (in usd per share) | $ / shares									$ 2.12	$ 2	$ 2
Restricted Stock Units (RSUs)
Class of Stock [Line Items]
Treasury stock reissued (in shares) | shares		1,720
Director
Class of Stock [Line Items]
Treasury stock reissued (in shares) | shares		64,000
Aggregate cost | $		$ 3,200
Minimum
Class of Stock [Line Items]
Shares acquired (in dollars per share) | $ / shares										45.25
Sale of stock, price per share (in usd per share) | $ / shares											46.88
Maximum
Class of Stock [Line Items]
Shares acquired (in dollars per share) | $ / shares										$ 50
Sale of stock, price per share (in usd per share) | $ / shares											$ 56.25

Accumulated Other Comprehensi_7

Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 289,783	$ 273,453	$ 330,910	$ 389,627	$ 273,453	$ 389,627	$ 389,627	$ 384,877	$ 353,528
Net unrealized gains (losses)	(5,529)	17,265	(46,639)	(64,311)	11,736	(110,950)	(145,930)	(15,933)	22,603
Less: net realized (gains) losses reclassified to earnings	3,161	(1,579)	(85)	(141)	1,582	(226)	491	3	(1,536)
Net change in pension plan benefits	0	0	0	0	0	0	(1,011)	305	87
Ending balance	290,072	289,783	291,138	330,910	290,072	291,138	273,453	389,627	384,877
Gains and Losses on Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,255)	(1,589)	(562)	0	(1,589)	0	0	0	0
Net unrealized gains (losses)	(275)	47	(362)	(503)	(228)	(865)	(1,721)	0	0
Less: net realized (gains) losses reclassified to earnings	334	287	(85)	(59)	621	(144)	132	0	0
Net change in pension plan benefits	0	0	0	0	0	0	0	0	0
Ending balance	(1,196)	(1,255)	(1,009)	(562)	(1,196)	(1,009)	(1,589)	0	0
Unrealized Gains and Losses on Available-for-Sale Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(115,523)	(130,875)	(50,915)	12,975	(130,875)	12,975	12,975	28,905	7,838
Net unrealized gains (losses)	(5,254)	17,218	(46,277)	(63,808)	11,964	(110,085)	(144,209)	(15,933)	22,603
Less: net realized (gains) losses reclassified to earnings	2,827	(1,866)	0	(82)	961	(82)	359	3	(1,536)
Net change in pension plan benefits	0	0	0	0	0	0	0	0
Ending balance	(117,950)	(115,523)	(97,192)	(50,915)	(117,950)	(97,192)	(130,875)	12,975	28,905
Defined Benefit Pension Items
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(7,031)	(7,031)	(6,020)	(6,020)	(7,031)	(6,020)	(6,020)	(6,325)	(6,412)
Net unrealized gains (losses)	0	0	0	0	0	0	0	0	0
Less: net realized (gains) losses reclassified to earnings	0	0	0	0	0	0	0	0	0
Net change in pension plan benefits	0	0	0	0	0	0	(1,011)	305	87
Ending balance	(7,031)	(7,031)	(6,020)	(6,020)	(7,031)	(6,020)	(7,031)	(6,020)	(6,325)
Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(123,809)	(139,495)	(57,497)	6,955	(139,495)	6,955	6,955	22,580	1,426
Ending balance	$ (126,177)	$ (123,809)	$ (104,221)	$ (57,497)	$ (126,177)	$ (104,221)	$ (139,495)	$ 6,955	$ 22,580

Accumulated Other Comprehensi_8

Accumulated Other Comprehensive Income (Loss) - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income	$ 37,116	$ 34,328	$ 26,542	$ 24,252	$ 71,444	$ 50,794	$ 112,633	$ 100,820	$ 100,997
Pensions and other employee benefits	2,406	2,468	1,901	2,039	4,874	3,940	7,700	7,621	7,568
Income tax expense (benefit)	(821)	(584)	(1,900)	(1,933)	(1,405)	(3,833)	(8,286)	(4,277)	(1,940)
Net of Tax	6,034	7,524	10,397	9,126	13,558	19,523	44,013	36,165	26,499
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net of Tax	(3,161)	1,579	85	141	(1,582)	226	520	(308)	1,623
Reclassification out of Accumulated Other Comprehensive Income | Cash flow hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income	(423)	(363)	108	75	(786)	182	(167)	0	0
Income tax expense (benefit)	89	76	(23)	(16)	165	(38)	35	0	0
Net of Tax	(334)	(287)	85	59	(621)	144	(132)	0	0
Reclassification out of Accumulated Other Comprehensive Income | Available-for-sale securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Interest income	(3,468)	2,362	0	0	(1,106)	0
Realized gains (losses) on securities	(111)	0	0	104	(111)	104	(454)	(4)	1,944
Income tax expense (benefit)	752	(496)	0	(22)	256	(22)	95	1	(408)
Net of Tax	$ (2,827)	$ 1,866	$ 0	$ 82	$ (961)	$ 82	(359)	(3)	1,536
Reclassification out of Accumulated Other Comprehensive Income | Defined benefit pension plan
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Pensions and other employee benefits							1,280	(386)	110
Income tax expense (benefit)							(269)	81	(23)
Net of Tax							$ 1,011	$ (305)	$ 87

Accumulated Other Comprehensi_9

Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 289,783	$ 273,453	$ 330,910	$ 389,627	$ 273,453	$ 389,627	$ 389,627	$ 384,877	$ 353,528
Net unrealized gains (losses)	(5,529)	17,265	(46,639)	(64,311)	11,736	(110,950)	(145,930)	(15,933)	22,603
Less: net realized (gains) losses reclassified to earnings	3,161	(1,579)	(85)	(141)	1,582	(226)	491	3	(1,536)
Net change in pension plan benefits	0	0	0	0	0	0	(1,011)	305	87
Ending balance	290,072	289,783	291,138	330,910	290,072	291,138	273,453	389,627	384,877
Gains and Losses on Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,255)	(1,589)	(562)	0	(1,589)	0	0	0	0
Net unrealized gains (losses)	(275)	47	(362)	(503)	(228)	(865)	(1,721)	0	0
Less: net realized (gains) losses reclassified to earnings	334	287	(85)	(59)	621	(144)	132	0	0
Net change in pension plan benefits	0	0	0	0	0	0	0	0	0
Ending balance	(1,196)	(1,255)	(1,009)	(562)	(1,196)	(1,009)	(1,589)	0	0
Unrealized Gains and Losses on Available-for-Sale Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(115,523)	(130,875)	(50,915)	12,975	(130,875)	12,975	12,975	28,905	7,838
Net unrealized gains (losses)	(5,254)	17,218	(46,277)	(63,808)	11,964	(110,085)	(144,209)	(15,933)	22,603
Less: net realized (gains) losses reclassified to earnings	2,827	(1,866)	0	(82)	961	(82)	359	3	(1,536)
Net change in pension plan benefits	0	0	0	0	0	0	0	0
Ending balance	(117,950)	(115,523)	(97,192)	(50,915)	(117,950)	(97,192)	(130,875)	12,975	28,905
Defined Benefit Pension Items
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(7,031)	(7,031)	(6,020)	(6,020)	(7,031)	(6,020)	(6,020)	(6,325)	(6,412)
Net unrealized gains (losses)	0	0	0	0	0	0	0	0	0
Less: net realized (gains) losses reclassified to earnings	0	0	0	0	0	0	0	0	0
Net change in pension plan benefits	0	0	0	0	0	0	(1,011)	305	87
Ending balance	(7,031)	(7,031)	(6,020)	(6,020)	(7,031)	(6,020)	(7,031)	(6,020)	(6,325)
Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(123,809)	(139,495)	(57,497)	6,955	(139,495)	6,955	6,955	22,580	1,426
Ending balance	$ (126,177)	$ (123,809)	$ (104,221)	$ (57,497)	$ (126,177)	$ (104,221)	$ (139,495)	$ 6,955	$ 22,580

Accumulated Other Comprehens_10

Accumulated Other Comprehensive Income (Loss) - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total pre-tax amount	$ 37,116	$ 34,328	$ 26,542	$ 24,252	$ 71,444	$ 50,794	$ 112,633	$ 100,820	$ 100,997
Tax effect	(821)	(584)	(1,900)	(1,933)	(1,405)	(3,833)	(8,286)	(4,277)	(1,940)
Net income	6,034	7,524	10,397	9,126	13,558	19,523	44,013	36,165	26,499
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	(3,161)	1,579	85	141	(1,582)	226	520	(308)	1,623
Reclassification out of Accumulated Other Comprehensive Income | Gains and Losses on Cash Flow Hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total pre-tax amount	(423)	(363)	108	75	(786)	182	(167)	0	0
Tax effect	89	76	(23)	(16)	165	(38)	35	0	0
Net income	(334)	(287)	85	59	(621)	144	(132)	0	0
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and Losses on Available-for-Sale Securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total pre-tax amount	(3,468)	2,362	0	0	(1,106)	0
Realized gains (losses) on securities	(111)	0	0	104	(111)	104	(454)	(4)	1,944
Tax effect	752	(496)	0	(22)	256	(22)	95	1	(408)
Net income	$ (2,827)	$ 1,866	$ 0	$ 82	$ (961)	$ 82	$ (359)	$ (3)	$ 1,536

Accumulated Other Comprehens_11

Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 289,783	$ 273,453	$ 330,910	$ 389,627	$ 273,453	$ 389,627	$ 389,627	$ 384,877	$ 353,528
Net unrealized gains (losses)	(5,529)	17,265	(46,639)	(64,311)	11,736	(110,950)	(145,930)	(15,933)	22,603
Less: net realized (gains) losses reclassified to earnings	3,161	(1,579)	(85)	(141)	1,582	(226)	491	3	(1,536)
Net change in pension plan benefits	0	0	0	0	0	0	(1,011)	305	87
Ending balance	290,072	289,783	291,138	330,910	290,072	291,138	273,453	389,627	384,877
Gains and Losses on Cash Flow Hedges
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(1,255)	(1,589)	(562)	0	(1,589)	0	0	0	0
Net unrealized gains (losses)	(275)	47	(362)	(503)	(228)	(865)	(1,721)	0	0
Less: net realized (gains) losses reclassified to earnings	334	287	(85)	(59)	621	(144)	132	0	0
Net change in pension plan benefits	0	0	0	0	0	0	0	0	0
Ending balance	(1,196)	(1,255)	(1,009)	(562)	(1,196)	(1,009)	(1,589)	0	0
Unrealized Gains and Losses on Available-for-Sale Securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(115,523)	(130,875)	(50,915)	12,975	(130,875)	12,975	12,975	28,905	7,838
Net unrealized gains (losses)	(5,254)	17,218	(46,277)	(63,808)	11,964	(110,085)	(144,209)	(15,933)	22,603
Less: net realized (gains) losses reclassified to earnings	2,827	(1,866)	0	(82)	961	(82)	359	3	(1,536)
Net change in pension plan benefits	0	0	0	0	0	0	0	0
Ending balance	(117,950)	(115,523)	(97,192)	(50,915)	(117,950)	(97,192)	(130,875)	12,975	28,905
Defined Benefit Pension Items
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(7,031)	(7,031)	(6,020)	(6,020)	(7,031)	(6,020)	(6,020)	(6,325)	(6,412)
Net unrealized gains (losses)	0	0	0	0	0	0	0	0	0
Less: net realized (gains) losses reclassified to earnings	0	0	0	0	0	0	0	0	0
Net change in pension plan benefits	0	0	0	0	0	0	(1,011)	305	87
Ending balance	(7,031)	(7,031)	(6,020)	(6,020)	(7,031)	(6,020)	(7,031)	(6,020)	(6,325)
Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(123,809)	(139,495)	(57,497)	6,955	(139,495)	6,955	6,955	22,580	1,426
Ending balance	$ (126,177)	$ (123,809)	$ (104,221)	$ (57,497)	$ (126,177)	$ (104,221)	$ (139,495)	$ 6,955	$ 22,580

Accumulated Other Comprehens_12

Accumulated Other Comprehensive Income (Loss) - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total pre-tax amount	$ 37,116	$ 34,328	$ 26,542	$ 24,252	$ 71,444	$ 50,794	$ 112,633	$ 100,820	$ 100,997
Income tax expense (benefit)	(821)	(584)	(1,900)	(1,933)	(1,405)	(3,833)	(8,286)	(4,277)	(1,940)
Net income	6,034	7,524	10,397	9,126	13,558	19,523	44,013	36,165	26,499
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	(3,161)	1,579	85	141	(1,582)	226	520	(308)	1,623
Reclassification out of Accumulated Other Comprehensive Income | Gains and Losses on Cash Flow Hedges
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total pre-tax amount	(423)	(363)	108	75	(786)	182	(167)	0	0
Income tax expense (benefit)	89	76	(23)	(16)	165	(38)	35	0	0
Net income	(334)	(287)	85	59	(621)	144	(132)	0	0
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains and Losses on Available-for-Sale Securities
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total pre-tax amount	(3,468)	2,362	0	0	(1,106)	0
Realized gains (losses) on securities	(111)	0	0	104	(111)	104	(454)	(4)	1,944
Income tax expense (benefit)	752	(496)	0	(22)	256	(22)	95	1	(408)
Net income	$ (2,827)	$ 1,866	$ 0	$ 82	$ (961)	$ 82	$ (359)	$ (3)	$ 1,536

Parent Company Financial Info_3

Parent Company Financial Information - Schedule of Condensed Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Assets
Other assets	$ 92,228	$ 92,571	$ 97,083			$ 68,817
Total Assets	3,569,226	3,671,186	3,562,898			3,621,743
Liabilities
Total Liabilities	3,279,154	3,381,403	3,289,445			3,232,116
Total Shareholders’ Equity	290,072	289,783	273,453	$ 291,138	$ 330,910	389,627	$ 384,877	$ 353,528
Total Liabilities and Shareholders’ Equity	$ 3,569,226	$ 3,671,186	3,562,898			$ 3,621,743
Burke & Herbert Financial Services Corp.
Assets
Cash			2,000
Investment in subsidiary			271,757
Other assets			209
Total Assets			273,966
Liabilities
Other Liabilities			513
Total Liabilities			513
Total Shareholders’ Equity			273,453
Total Liabilities and Shareholders’ Equity			$ 273,966

Parent Company Financial Info_4

Parent Company Financial Information - Schedule of Condensed Statement of Income (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Expense
Income tax benefit	$ (821)	$ (584)	$ (1,900)	$ (1,933)	$ (1,405)	$ (3,833)	$ (8,286)	$ (4,277)	$ (1,940)
Net income	$ 6,034	$ 7,524	$ 10,397	$ 9,126	$ 13,558	$ 19,523	44,013	$ 36,165	$ 26,499
Burke & Herbert Financial Services Corp.
Income
Dividends from bank subsidiary							5,936
Total Income							5,936
Expense
Salaries and employee benefit							426
Other operating expenses							568
Total Expense							994
Income (loss) before income tax benefit and equity in undistributed income of subsidiaries							4,942
Income tax benefit							209
Income (loss) before equity in undistributed income of subsidiaries							5,151
Equity in undistributed earnings of subsidiary							38,862
Net income							$ 44,013

Parent Company Financial Info_5

Parent Company Financial Information - Schedule of Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash Flows from Operating Activities
Net income	$ 6,034	$ 7,524	$ 10,397	$ 9,126	$ 13,558	$ 19,523	$ 44,013	$ 36,165	$ 26,499
Adjustments to reconcile net income to net cash provided by operating activities:
Share based compensation		581		506	1,188	999	2,000	283	146
Deferred income taxes		(1,234)		(214)	(1,560)	611	1,397	(1,659)	(3,830)
Net change in other assets		(1,235)		4,027	2,750	(968)	501	2,581	(2,334)
Net cash flows provided by operating activities		10,926		14,195	22,864	30,972	61,057	54,952	23,190
Cash Flows from Investing Activities
Net cash (used in) provided by investing activities		(30,997)		(18,193)	24,688	(69,674)	(127,563)	(384,278)	(405,738)
Cash Flows from Financing Activities
Dividends paid		(3,936)		(3,935)	(7,872)	(7,871)	(15,742)	(14,871)	(14,905)
Net cash flows provided by (used in) financing activities		86,715		(13,745)	(17,048)	54,154	39,438	177,985	527,505
Increase (decrease) in cash and cash equivalents		66,644		(17,743)	30,504	15,452	(27,068)	(151,341)	144,957
Beginning of period	116,939	50,295		77,363	50,295	77,363	77,363	228,704	83,747
End of period	$ 80,799	116,939	$ 92,815		80,799	92,815	50,295	77,363	$ 228,704
Burke & Herbert Financial Services Corp.
Cash Flows from Operating Activities
Net income							44,013
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income of subsidiaries							(38,862)
Share based compensation							481
Deferred income taxes							(105)
Net change in other assets							513
Net change in other liabilities							(104)
Net cash flows provided by operating activities							5,936
Cash Flows from Financing Activities
Dividends paid							(3,936)
Net cash flows provided by (used in) financing activities							(3,936)
Increase (decrease) in cash and cash equivalents							2,000
Beginning of period		$ 2,000		$ 0	$ 2,000	$ 0	0
End of period							$ 2,000	$ 0

Other Operating Expense (Detail

Other Operating Expense (Details) - USD ($)	3 Months Ended					6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other Income and Expenses [Abstract]
Directors' fees	$ 434,000	$ 410,000		$ 792,000	$ 245,000	$ 844,000	$ 1,037,000	$ 1,941,000	$ 1,093,000	$ 1,147,000
Consultant fees	508,000	470,000		298,000	212,000	978,000	510,000	1,708,000	1,548,000	1,064,000
Marketing expense	119,000	219,000		317,000	317,000	338,000	634,000	1,295,000	1,086,000	509,000
Historic tax credit amortization	631,000	632,000		631,000	632,000	1,263,000	1,263,000	2,526,000	2,717,000	2,718,000
Virginia franchise tax	630,000	243,000		600,000	233,000	1,260,000	1,200,000	2,492,000	2,366,000	2,249,000
(Recapture of) Provision for off-balance sheet exposure		267,300				170,000		0	0	(1,380,000)
Network expense	483,000	429,000		418,000	394,000	912,000	812,000	1,693,000	1,592,000	1,459,000
FDIC assessment	686,000	734,000		345,000	702,000	1,033,000	680,000	958,000	920,000	460,000
IT related	466,000	491,000		504,000	412,000	957,000	916,000	1,980,000	1,306,000	965,000
(Gain)/loss on sale of buildings		0	$ (3,700,000)		6,000	0	6,000	(4,533,000)	(1,063,000)	7,000
Legal expense	328,000	305,000		412,000	175,000	633,000	587,000	986,000	275,000	369,000
Audit expense	213,000	307,000		175,000	92,000	520,000	267,000	705,000	302,000	220,000
Other	1,520,000	1,367,000		1,366,000	1,258,000	2,887,000	2,624,000	5,668,000	5,627,000	5,963,000
Total	$ 6,018,000	$ 5,607,000		$ 5,858,000	$ 4,672,000	$ 11,625,000	$ 10,530,000	$ 17,419,000	$ 17,769,000	$ 15,750,000

Other Operating Expense - Sched

Other Operating Expense - Schedule of Other Operating Cost and Expense, by Component (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other Income and Expenses [Abstract]
FDIC assessment	$ 686	$ 734	$ 345	$ 702	$ 1,033	$ 680	$ 958	$ 920	$ 460
Historic tax credit amortization	631	632	631	632	1,263	1,263	2,526	2,717	2,718
IT related	466	491	504	412	957	916	1,980	1,306	965
Consultant fees	508	470	298	212	978	510	1,708	1,548	1,064
Network expense	483	429	418	394	912	812	1,693	1,592	1,459
Directors' fees	434	410	792	245	844	1,037	1,941	1,093	1,147
Audit expense	213	307	175	92	520	267	705	302	220
Legal expense	328	305	412	175	633	587	986	275	369
Virginia franchise tax	630	243	600	233	1,260	1,200	2,492	2,366	2,249
Marketing expense	119	219	317	317	338	634	1,295	1,086	509
Other	1,520	1,367	1,366	1,258	2,887	2,624	5,668	5,627	5,963
Total	$ 6,018	$ 5,607	$ 5,858	$ 4,672	$ 11,625	$ 10,530	$ 17,419	$ 17,769	$ 15,750

Other Operating Expense - Sch_2

Other Operating Expense - Schedule of Other Operating Cost and Expense, by Component (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other Income and Expenses [Abstract]
FDIC assessment	$ 686	$ 734	$ 345	$ 702	$ 1,033	$ 680	$ 958	$ 920	$ 460
Historic tax credit amortization	631	632	631	632	1,263	1,263	2,526	2,717	2,718
IT related	466	491	504	412	957	916	1,980	1,306	965
Consultant fees	508	470	298	212	978	510	1,708	1,548	1,064
Network expense	483	429	418	394	912	812	1,693	1,592	1,459
Directors' fees	434	410	792	245	844	1,037	1,941	1,093	1,147
Audit expense	213	307	175	92	520	267	705	302	220
Legal expense	328	305	412	175	633	587	986	275	369
Virginia franchise tax	630	243	600	233	1,260	1,200	2,492	2,366	2,249
Marketing expense	119	219	317	317	338	634	1,295	1,086	509
Other	1,520	1,367	1,366	1,258	2,887	2,624	5,668	5,627	5,963
Total	$ 6,018	$ 5,607	$ 5,858	$ 4,672	$ 11,625	$ 10,530	$ 17,419	$ 17,769	$ 15,750

Qualified Affordable Housing _2

Qualified Affordable Housing Project and Historic Tax Investments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]
Investments in qualified affordable housing projects	$ 23.5	$ 29.7
Investments in qualified affordable housing projects, unfunded commitments	0.8	1.6
Investments in qualified affordable housing projects, amortization expense	6.1	6.8	$ 7
Noninterest Expense
Schedule of Equity Method Investments [Line Items]
Investments in qualified affordable housing projects, amortization expense	$ 2.5	$ 2.7	$ 2.7

Revenue from Contracts with C_3

Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Net gains (losses) on securities	$ (111)	$ 0	$ 0	$ 104	$ (111)	$ 104	$ (454)	$ (4)	$ 1,944
Income from life insurance	571	560	542	537	1,131	1,079	2,656	2,325	2,303
Other non-interest income	1,119	682	831	536	1,801	1,367	2,721	3,440	4,606
Total non-interest income	4,625	4,214	4,496	4,115	8,839	8,611	17,087	17,251	19,004
Service charges and fees
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	1,741	1,635	1,761	1,633	3,376	3,394	6,855	6,328	5,700
Debit card fees
Disaggregation of Revenue [Line Items]
Revenue from contract with customer							4,454	4,413	3,743
Deposit related fees
Disaggregation of Revenue [Line Items]
Revenue from contract with customer							2,308	1,792	1,869
Other fees
Disaggregation of Revenue [Line Items]
Revenue from contract with customer							93	123	88
Fiduciary and wealth management
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 1,305	$ 1,337	$ 1,362	$ 1,305	$ 2,642	$ 2,667	5,309	5,162	4,451
Trust fees
Disaggregation of Revenue [Line Items]
Revenue from contract with customer							3,176	3,297	3,067
Advisory fees
Disaggregation of Revenue [Line Items]
Revenue from contract with customer							1,575	1,342	950
Other fees
Disaggregation of Revenue [Line Items]
Revenue from contract with customer							558	523	434
FHLB dividend
Disaggregation of Revenue [Line Items]
Other non-interest income							484	409	501
Merchant & credit card fees
Disaggregation of Revenue [Line Items]
Other non-interest income							801	730	576
Safety deposit fees
Disaggregation of Revenue [Line Items]
Other non-interest income							394	411	394
Servicing release premium
Disaggregation of Revenue [Line Items]
Other non-interest income							58	1,303	1,374
Wire fees
Disaggregation of Revenue [Line Items]
Other non-interest income							358	372	338
Other non-interest
Disaggregation of Revenue [Line Items]
Other non-interest income							$ 626	$ 215	$ 1,423

Share-Based Compensation - Narr

Share-Based Compensation - Narrative (Details) - USD ($)	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation cost for awards granted	$ 607,200	$ 580,600	$ 492,800	$ 506,200	$ 1,200,000	$ 999,000	$ 2,000,000	$ 283,000	$ 146,000
Total income tax benefit	127,500	121,900	$ 103,500	$ 106,300	249,400	$ 209,800	421,000	$ 59,000	$ 31,000
Restricted Stock Units (RSUs)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation costs	$ 4,100,000	$ 4,700,000			$ 4,100,000		$ 3,600,000
Average period for cost to be recognized		2 years 29 days			1 year 10 months 6 days		1 year 11 months 12 days
Restricted Stock Units (RSUs) | Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period		3 years			3 years
Vesting percentage		50%			50%
Restricted Stock Units (RSUs) | Minimum | Time-based RSUs
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period							3 years
Restricted Stock Units (RSUs) | Minimum | Performance-based RSUs
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period								3 years
Vesting percentage							50%
Restricted Stock Units (RSUs) | Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period		5 years			5 years
Vesting percentage		100%			100%
Restricted Stock Units (RSUs) | Maximum | Time-based RSUs
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period							5 years
Restricted Stock Units (RSUs) | Maximum | Performance-based RSUs
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period								5 years
Vesting percentage							100%
Restricted Stock Units (RSUs) | 2019 Stock Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares authorized to be issued (in shares)										240,000
Shares issued during period (in shares)							13,160	106,040	4,160

Share-Based Compensation - Shar

Share-Based Compensation - Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity (Details) - Restricted Stock Units (RSUs) - $ / shares	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Shares
Beginning nonvested (in shares)	122,440	122,440	112,880
Granted (in shares)	24,705	24,705	13,160
Vested (in shares)	(3,120)	(4,560)	(2,000)
Forfeited (in shares)	0	0	(1,600)
Ending nonvested (in shares)	144,025	142,585	122,440
Weighted-Average Grant-Date Fair Value
Beginning nonvested (in usd per share)	$ 48	$ 48	$ 47.49
Granted (in usd per share)	67.81	67.81	54.78
Vested (in usd per share)	50.47	54.07	59.87
Forfeited (in usd per share)	0	0	52.92
Ending nonvested (in usd per share)	$ 51.34	$ 51.24	$ 48

Share-Based Compensation - Na_2

Share-Based Compensation - Narrative (Details) - USD ($)	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation cost for awards granted	$ 607,200	$ 580,600	$ 492,800	$ 506,200	$ 1,200,000	$ 999,000	$ 2,000,000	$ 283,000	$ 146,000
Total income tax benefit	127,500	121,900	$ 103,500	$ 106,300	249,400	$ 209,800	421,000	$ 59,000	$ 31,000
Restricted Stock Units (RSUs)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation costs	$ 4,100,000	$ 4,700,000			$ 4,100,000		$ 3,600,000
Average period for cost to be recognized		2 years 29 days			1 year 10 months 6 days		1 year 11 months 12 days
Restricted Stock Units (RSUs) | Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period		3 years			3 years
Vesting percentage		50%			50%
Restricted Stock Units (RSUs) | Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period		5 years			5 years
Vesting percentage		100%			100%
Restricted Stock Units (RSUs) | 2020 Stock Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares authorized to be issued (in shares)										240,000
Shares issued during period (in shares)		24,705		12,160	24,705	13,160
Restricted Stock Units (RSUs) | 2023 Stock Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares authorized to be issued (in shares)	250,000	250,000			250,000

Share-Based Compensation - Sh_2

Share-Based Compensation - Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity (Details) - Restricted Stock Units (RSUs) - $ / shares	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Shares
Beginning nonvested (in shares)	122,440	122,440	112,880
Granted (in shares)	24,705	24,705	13,160
Vested (in shares)	(3,120)	(4,560)	(2,000)
Forfeited (in shares)	0	0	(1,600)
Ending nonvested (in shares)	144,025	142,585	122,440
Weighted-Average Grant-Date Fair Value
Beginning nonvested (in usd per share)	$ 48	$ 48	$ 47.49
Granted (in usd per share)	67.81	67.81	54.78
Vested (in usd per share)	50.47	54.07	59.87
Forfeited (in usd per share)	0	0	52.92
Ending nonvested (in usd per share)	$ 51.34	$ 51.24	$ 48

Share-Based Compensation - Na_3

Share-Based Compensation - Narrative (Details) - USD ($)	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Compensation cost for awards granted	$ 607,200	$ 580,600	$ 492,800	$ 506,200	$ 1,200,000	$ 999,000	$ 2,000,000	$ 283,000	$ 146,000
Total income tax benefit	127,500	121,900	$ 103,500	$ 106,300	249,400	$ 209,800	421,000	$ 59,000	$ 31,000
Restricted Stock Units (RSUs)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Unrecognized compensation costs	$ 4,100,000	$ 4,700,000			$ 4,100,000		$ 3,600,000
Average period for cost to be recognized		2 years 29 days			1 year 10 months 6 days		1 year 11 months 12 days
Restricted Stock Units (RSUs) | Minimum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period		3 years			3 years
Vesting percentage		50%			50%
Restricted Stock Units (RSUs) | Maximum
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Award vesting period		5 years			5 years
Vesting percentage		100%			100%
Restricted Stock Units (RSUs) | 2020 Stock Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares authorized to be issued (in shares)										240,000
Shares issued during period (in shares)		24,705		12,160	24,705	13,160
Restricted Stock Units (RSUs) | 2023 Stock Incentive Plan
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Shares authorized to be issued (in shares)	250,000	250,000			250,000

Share-Based Compensation - Sh_3

Share-Based Compensation - Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity (Details) - Restricted Stock Units (RSUs) - $ / shares	3 Months Ended	6 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Shares
Beginning nonvested (in shares)	122,440	122,440	112,880
Granted (in shares)	24,705	24,705	13,160
Vested (in shares)	(3,120)	(4,560)	(2,000)
Forfeited (in shares)	0	0	(1,600)
Ending nonvested (in shares)	144,025	142,585	122,440
Weighted-Average Grant-Date Fair Value
Beginning nonvested (in usd per share)	$ 48	$ 48	$ 47.49
Granted (in usd per share)	67.81	67.81	54.78
Vested (in usd per share)	50.47	54.07	59.87
Forfeited (in usd per share)	0	0	52.92
Ending nonvested (in usd per share)	$ 51.34	$ 51.24	$ 48

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Net income (in thousands)	$ 6,034	$ 7,524	$ 10,397	$ 9,126	$ 13,558	$ 19,523	$ 44,013	$ 36,165	$ 26,499
Weighted average number of shares (in shares)	7,428,079	7,426,638	7,424,747	7,424,059	7,427,363	7,424,405	7,425,088	7,424,405	7,453,651
Options effect of dilutive shares (in shares)	86,876	77,835	31,339	27,799	82,468	29,570	42,629	5,659	809
Weighted average dilutive shares (in shares)	7,514,955	7,504,473	7,456,086	7,451,858	7,509,831	7,453,975	7,467,717	7,430,064	7,454,460
Basic EPS (in usd per share)	$ 0.81	$ 1.01	$ 1.40	$ 1.23	$ 1.82	$ 2.63	$ 5.93	$ 4.87	$ 3.56
Diluted EPS (in usd per share)	$ 0.80	$ 1	$ 1.39	$ 1.23	$ 1.80	$ 2.62	$ 5.89	$ 4.87	$ 3.55

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Stock awards antidilutive (in shares)	0	0	890	0	0	0	0	462	5,727

Earnings Per Share - Schedule_2

Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Net income (in thousands)	$ 6,034	$ 7,524	$ 10,397	$ 9,126	$ 13,558	$ 19,523	$ 44,013	$ 36,165	$ 26,499
Weighted average number of shares (in shares)	7,428,079	7,426,638	7,424,747	7,424,059	7,427,363	7,424,405	7,425,088	7,424,405	7,453,651
Options effect of dilutive shares (in shares)	86,876	77,835	31,339	27,799	82,468	29,570	42,629	5,659	809
Weighted average dilutive shares (in shares)	7,514,955	7,504,473	7,456,086	7,451,858	7,509,831	7,453,975	7,467,717	7,430,064	7,454,460
Basic EPS (in usd per share)	$ 0.81	$ 1.01	$ 1.40	$ 1.23	$ 1.82	$ 2.63	$ 5.93	$ 4.87	$ 3.56
Diluted EPS (in usd per share)	$ 0.80	$ 1	$ 1.39	$ 1.23	$ 1.80	$ 2.62	$ 5.89	$ 4.87	$ 3.55

Earnings Per Share - Narrativ_2

Earnings Per Share - Narrative (Details) - shares	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Stock awards antidilutive (in shares)	0	0	890	0	0	0	0	462	5,727

Earnings Per Share - Schedule_3

Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Net income (in thousands)	$ 6,034	$ 7,524	$ 10,397	$ 9,126	$ 13,558	$ 19,523	$ 44,013	$ 36,165	$ 26,499
Weighted average number of shares (in shares)	7,428,079	7,426,638	7,424,747	7,424,059	7,427,363	7,424,405	7,425,088	7,424,405	7,453,651
Options effect of dilutive shares (in shares)	86,876	77,835	31,339	27,799	82,468	29,570	42,629	5,659	809
Weighted average dilutive shares (in shares)	7,514,955	7,504,473	7,456,086	7,451,858	7,509,831	7,453,975	7,467,717	7,430,064	7,454,460
Basic EPS (in usd per share)	$ 0.81	$ 1.01	$ 1.40	$ 1.23	$ 1.82	$ 2.63	$ 5.93	$ 4.87	$ 3.56
Diluted EPS (in usd per share)	$ 0.80	$ 1	$ 1.39	$ 1.23	$ 1.80	$ 2.62	$ 5.89	$ 4.87	$ 3.55

Earnings Per Share - Narrativ_3

Earnings Per Share - Narrative (Details) - shares	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share [Abstract]
Stock awards antidilutive (in shares)	0	0	890	0	0	0	0	462	5,727