XML 47 R37.htm IDEA: XBRL DOCUMENT v3.23.2
FAIR VALUE (Tables)
6 Months Ended
Jun. 30, 2023
Fair Value Disclosures  
Assets and Liabilities Measured at Fair Value on Recurring Basis

Fair Value Measurements at 

 

June 30, 2023 Using:

 

    

Quoted Prices in

    

Significant

    

    

    

    

 

Active Markets

Other

Significant

 

for Identical

Observable

Unobservable

Total

 

Assets

Inputs

Inputs

Fair

 

(in thousands)

(Level 1)

(Level 2)

(Level 3)

Value

 

Financial assets:

Available-for-sale debt securities:

U.S. Treasury securities and U.S. Government agencies

$

174,323

$

233,034

$

$

407,357

Private label mortgage-backed security

 

 

 

1,988

 

1,988

Mortgage-backed securities - residential

 

 

166,287

 

 

166,287

Collateralized mortgage obligations

 

 

22,747

 

 

22,747

Corporate bonds

2,025

2,025

Trust preferred security

 

 

 

3,746

 

3,746

Total available-for-sale debt securities

$

174,323

$

424,093

$

5,734

$

604,150

Equity securities with readily determinable fair value:

Freddie Mac preferred stock

$

$

122

$

$

122

Total equity securities with readily determinable fair value

$

$

122

$

$

122

Mortgage loans held for sale

$

$

4,038

$

$

4,038

Consumer loans held for sale

5,757

5,757

Rate lock loan commitments

 

 

189

 

 

189

Interest rate swap agreements

7,829

7,829

Financial liabilities:

Mandatory forward contracts

$

$

61

$

$

61

Interest rate swap agreements

7,829

7,829

Fair Value Measurements at

 

December 31, 2022 Using:

 

    

Quoted Prices in

    

Significant

    

    

    

    

 

Active Markets

Other

Significant

 

for Identical

Observable

Unobservable

Total

 

Assets

Inputs

Inputs

Fair

 

(in thousands)

(Level 1)

(Level 2)

(Level 3)

Value

 

Financial assets:

Available-for-sale debt securities:

U.S. Treasury securities and U.S. Government agencies

$

193,385

$

217,756

$

$

411,141

Private label mortgage-backed security

 

 

 

2,127

 

2,127

Mortgage-backed securities - residential

 

 

171,873

 

 

171,873

Collateralized mortgage obligations

 

 

21,368

 

 

21,368

Corporate bonds

10,001

10,001

Trust preferred security

 

 

 

3,855

 

3,855

Total available-for-sale debt securities

$

193,385

$

420,998

$

5,982

$

620,365

Equity securities with readily determinable fair value:

Freddie Mac preferred stock

$

$

111

$

$

111

Total equity securities with readily determinable fair value

$

$

111

$

$

111

Mortgage loans held for sale

$

$

1,302

$

$

1,302

Consumer loans held for sale

4,706

4,706

Consumer loans held for investment

2

2

Rate lock loan commitments

 

 

2

 

 

2

Interest rate swap agreements

 

 

8,128

 

 

8,128

Financial liabilities:

Mandatory forward contracts

$

$

67

$

$

67

Interest rate swap agreements

8,128

 

8,128

Assets Measured at Fair Value on a Non-Recurring Basis

Fair Value Measurements at

June 30, 2023 Using:

    

Quoted Prices in

    

Significant

    

    

    

Active Markets

Other

Significant

for Identical

Observable

Unobservable

Total

Assets

Inputs

Inputs

Fair

(in thousands)

(Level 1)

(Level 2)

(Level 3)

Value

Collateral-dependent loans:

Residential real estate:

Owner occupied

$

$

$

1,198

$

1,198

Commercial real estate

 

 

 

851

 

851

Total collateral-dependent loans*

$

$

$

2,049

$

2,049

Other real estate owned:

Commercial real estate

$

$

$

1,478

$

1,478

Total other real estate owned

$

$

$

1,478

$

1,478

*

The difference between the carrying value and the fair value of collateral-dependent loans measured at fair value is reconciled in a subsequent table of this Footnote.

Fair Value Measurements at

December 31, 2022 Using:

    

Quoted Prices in

    

Significant

    

    

    

Active Markets

Other

Significant

for Identical

Observable

Unobservable

Total

Assets

Inputs

Inputs

Fair

(in thousands)

(Level 1)

(Level 2)

(Level 3)

Value

Collateral-dependent loans:

Residential real estate:

Owner occupied

$

$

$

1,456

$

1,456

Commercial real estate

 

 

 

906

 

906

Total collateral-dependent loans*

$

$

$

2,362

$

2,362

Other real estate owned:

Residential real estate

$

$

$

1,581

$

1,581

Total other real estate owned

$

$

$

1,581

$

1,581

*

The difference between the carrying value and the fair value of collateral-dependent loans measured at fair value is reconciled in a subsequent table of this Footnote.

Impaired collateral dependent loans classified with Level 3 fair value hierarchy

Provisions for loss on collateral dependent impaired loans

Three Months Ended

Six Months Ended

June 30, 

June 30, 

(in thousands)

2023

    

2022

    

2023

    

2022

Provision on collateral-dependent loans

$

$

(7)

$

(14)

$

(4)

Other Real Estate Owned

    

(in thousands)

June 30, 2023

    

December 31, 2022

    

Other real estate owned carried at fair value

$

1,478

$

1,581

Total carrying value of other real estate owned

$

1,478

$

1,581

Other real estate owned write-downs during the years ended

$

105

$

211

    

Three Months Ended

Six Months Ended

    

June 30, 

June 30, 

(in thousands)

2023

    

2022

    

2023

    

2022

Other real estate owned write-downs during the period

$

52

$

54

$

105

$

105

Carrying amount and estimated fair values of financial instruments

Fair Value Measurements at

 

June 30, 2023:

 

    

    

    

    

    

    

    

    

Total

 

Carrying

Fair

 

(in thousands)

Value

Level 1

Level 2

Level 3

Value

 

Assets:

Cash and cash equivalents

$

241,967

$

241,967

$

$

$

241,967

Available-for-sale debt securities

 

604,150

 

174,323

 

424,093

 

5,734

 

604,150

Held-to-maturity debt securities

 

101,966

 

 

101,190

 

 

101,190

Equity securities with readily determinable fair values

122

122

122

Mortgage loans held for sale, at fair value

 

4,038

 

 

4,038

 

 

4,038

Consumer loans held for sale, at fair value

5,757

5,757

5,757

Consumer loans held for sale, at the lower of cost or fair value

15,787

15,787

15,787

Loans, net

 

4,980,940

 

 

 

4,725,917

 

4,725,917

Federal Home Loan Bank stock

 

29,395

 

 

 

 

NA

Accrued interest receivable

 

16,157

 

 

2,624

 

13,533

 

16,157

Mortgage servicing rights

7,995

16,955

16,955

Rate lock loan commitments

189

189

189

Interest rate swap agreements

7,829

7,829

7,829

Liabilities:

Noninterest-bearing deposits

$

1,854,907

$

$

1,854,907

$

$

1,854,907

Transaction deposits

 

2,489,853

 

 

2,489,853

 

 

2,489,853

Time deposits

 

384,521

 

 

378,663

 

 

378,663

Securities sold under agreements to repurchase and other short-term borrowings

 

92,450

 

 

92,450

 

 

92,450

Federal Home Loan Bank advances

 

520,000

 

 

516,307

 

 

516,307

Accrued interest payable

 

868

 

 

868

 

 

868

Rate lock loan commitments

189

189

189

Mandatory forward contracts

61

61

61

Interest rate swap agreements

7,829

7,829

7,829

Fair Value Measurements at

 

December 31, 2022:

 

    

    

    

    

    

    

    

    

    

Total

 

Carrying

Fair

 

(in thousands)

Value

Level 1

Level 2

Level 3

Value

 

Assets:

Cash and cash equivalents

$

313,689

$

313,689

$

$

$

313,689

Available-for-sale debt securities

 

620,365

 

193,385

 

420,998

 

5,982

 

620,365

Held-to-maturity debt securities

 

87,386

 

 

87,357

 

 

87,357

Equity securities with readily determinable fair values

111

111

111

Mortgage loans held for sale, at fair value

 

1,302

 

 

1,302

 

 

1,302

Consumer loans held for sale, at fair value

4,706

4,706

4,706

Consumer loans held for sale, at the lower of cost or fair value

13,169

13,169

13,169

Loans, net

 

4,445,389

 

 

 

4,276,423

 

4,276,423

Federal Home Loan Bank stock

 

9,146

 

 

 

 

NA

Accrued interest receivable

 

13,572

 

 

2,462

 

11,110

 

13,572

Mortgage servicing rights

8,769

17,592

17,592

Rate lock loan commitments

2

2

2

Interest rate swap agreements

8,128

8,128

8,128

Liabilities:

Noninterest-bearing deposits

$

1,908,768

$

$

1,908,768

$

$

1,908,768

Transaction deposits

 

2,398,853

 

 

2,398,853

 

 

2,398,853

Time deposits

 

230,224

 

 

223,912

 

 

223,912

Securities sold under agreements to repurchase and other short-term borrowings

 

216,956

 

 

216,956

 

 

216,956

Federal Home Loan Bank advances

 

95,000

 

 

93,044

 

 

93,044

Accrued interest payable

 

239

 

 

239

 

 

239

Mandatory forward contracts

67

67

67

Interest rate swap agreements

8,128

8,128

8,128

Nonrecurring basis  
Fair Value Disclosures  
Fair value inputs quantitative information

    

    

    

    

    

    

    

Range

Fair

Valuation

Unobservable

(Weighted

June 30, 2023 (dollars in thousands)

Value

Technique

Inputs

Average)

Collateral-dependent loans - residential real estate owner occupied

$

1,198

 

Sales comparison approach

 

Adjustments determined for differences between comparable sales

 

0% - 35% (11.1%)

Collateral-dependent loans - commercial real estate

$

851

 

Sales comparison approach

 

Adjustments determined for differences between comparable sales

 

16% (16%)

Other real estate owned - commercial real estate

$

1,478

 

Sales comparison approach

 

Adjustments determined for differences between comparable sales

 

39% (39%)

    

    

    

    

    

    

    

Range

Fair

Valuation

Unobservable

(Weighted

December 31, 2022 (dollars in thousands)

Value

Technique

Inputs

Average)

Collateral-dependent loans - residential real estate owner occupied

$

1,456

 

Sales comparison approach

 

Adjustments determined for differences between comparable sales

 

0% - 41% (11%)

Collateral-dependent loans - commercial real estate

$

906

 

Sales comparison approach

 

Adjustments determined for differences between comparable sales

 

16% (16%)

Other real estate owned - commercial real estate

$

1,581

 

Sales comparison approach

 

Adjustments determined for differences between comparable sales

 

39% (39%)

Private label mortgage backed security  
Fair Value Disclosures  
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs

  

Three Months Ended

  

Six Months Ended

June 30, 

June 30, 

(in thousands)

2023

2022

2023

2022

Balance, beginning of period

$

2,010

$

2,602

$

2,127

$

2,731

Total gains or losses included in earnings:

Net change in unrealized gain

 

26

 

(15)

 

32

 

9

Principal paydowns

 

(48)

 

(109)

 

(171)

 

(262)

Balance, end of period

$

1,988

$

2,478

$

1,988

$

2,478

Private label mortgage backed security | Recurring basis  
Fair Value Disclosures  
Fair value inputs quantitative information

    

Fair

    

Valuation

    

    

    

 

June 30, 2023 (dollars in thousands)

Value

Technique

Unobservable Inputs

Range

 

Private label mortgage-backed security

$

1,988

 

Discounted cash flow

 

(1) Constant prepayment rate

 

2.7% - 4.5%

 

(2) Probability of default

 

1.8% - 9.3%

 

(3) Loss severity

 

12% - 35%

    

Fair

    

Valuation

    

    

    

 

December 31, 2022 (dollars in thousands)

Value

Technique

Unobservable Inputs

Range

 

Private label mortgage-backed security

$

2,127

 

Discounted cash flow

 

(1) Constant prepayment rate

 

4.5% - 4.7%

 

(2) Probability of default

 

1.8% - 9.3%

 

(3) Loss severity

 

25% - 35%

Trust Preferred Securities  
Fair Value Disclosures  
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs

    

Three Months Ended

    

Six Months Ended

June 30, 

June 30, 

(in thousands)

2023

2022

2023

2022

Balance, beginning of period

$

4,001

$

3,725

$

3,855

$

3,847

Total gains or losses included in earnings:

Discount accretion

15

14

29

28

Net change in unrealized gain

 

(270)

 

85

 

(138)

 

(51)

Balance, end of period

$

3,746

$

3,824

$

3,746

$

3,824

Mortgage Loans Held for Sale  
Fair Value Disclosures  
Schedule of aggregate fair value, contractual balance and unrealized gain

(in thousands)

    

June 30, 2023

    

December 31, 2022

 

Aggregate fair value

$

4,038

$

1,302

Contractual balance

 

3,961

 

1,265

Unrealized gain

 

77

 

37

Schedule of gains and losses from changes in fair value included in earnings

    

Three Months Ended

Six Months Ended

    

June 30, 

June 30, 

(in thousands)

2023

    

2022

    

2023

    

2022

Interest income

$

61

$

153

$

122

$

357

Change in fair value

 

47

 

109

 

39

 

(597)

Total included in earnings

$

108

$

262

$

161

$

(240)

Consumer loans  
Fair Value Disclosures  
Schedule of aggregate fair value, contractual balance and unrealized gain

(in thousands)

    

June 30, 2023

    

December 31, 2022

Aggregate fair value

$

5,757

$

4,706

Contractual balance

 

5,791

 

4,734

Unrealized loss

 

(34)

 

(28)

Schedule of gains and losses from changes in fair value included in earnings

    

Three Months Ended

Six Months Ended

June 30, 

June 30, 

(in thousands)

2023

    

2022

    

2023

    

2022

Interest income

$

949

$

2,990

$

1,714

$

5,880

Change in fair value

 

(9)

 

(181)

 

(6)

 

(218)

Total included in earnings

$

940

$

2,809

$

1,708

$

5,662

Consumer loans | Recurring basis  
Fair Value Disclosures  
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs

    

Fair

    

Valuation

    

    

    

June 30, 2023 (dollars in thousands)

Value

Technique

Unobservable Inputs

Rate

Consumer loans held for sale

$

5,757

 

Contract Terms

 

(1) Net Premium

 

0.15%

 

(2) Discounted Sales

 

10.00%

    

Fair

    

Valuation

    

    

    

December 31, 2022 (dollars in thousands)

Value

Technique

Unobservable Inputs

Rate

Consumer loans held for sale

$

4,706

 

Contract Terms

 

(1) Net Premium

 

0.15%

 

(2) Discounted Sales

 

10.00%