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FAIR VALUE (Tables)
3 Months Ended
Mar. 31, 2024
Fair Value Disclosures  
Assets and Liabilities Measured at Fair Value on Recurring Basis

Fair Value Measurements at 

 

March 31, 2024 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

$

148,755

$

264,370

$

$

413,125

Private label mortgage-backed security

 

 

 

1,772

 

1,772

Mortgage-backed securities - residential

 

 

145,822

 

 

145,822

Collateralized mortgage obligations

 

 

21,040

 

 

21,040

Corporate bonds

2,019

2,019

Trust preferred security

 

 

 

4,027

 

4,027

Total available-for-sale debt securities

$

148,755

$

433,251

$

5,799

$

587,805

Equity securities with readily determinable fair value:

Freddie Mac preferred stock

$

$

235

$

$

235

Total equity securities with readily determinable fair value

$

$

235

$

$

235

Mortgage loans held for sale

$

$

80,884

$

$

80,884

Consumer loans held for sale

6,093

6,093

Rate lock commitments

 

 

466

 

 

466

Interest rate swap agreements

7,870

7,870

Financial liabilities:

Mandatory forward contracts

$

$

77

$

$

77

Interest rate swap agreements

7,870

7,870

Fair Value Measurements at

 

December 31, 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

$

177,784

$

229,249

$

$

407,033

Private label mortgage-backed security

 

 

 

1,773

 

1,773

Mortgage-backed securities - residential

 

 

154,710

 

 

154,710

Collateralized mortgage obligations

 

 

21,659

 

 

21,659

Corporate bonds

2,020

2,020

Trust preferred security

 

 

 

4,118

 

4,118

Total available-for-sale debt securities

$

177,784

$

407,638

$

5,891

$

591,313

Equity securities with readily determinable fair value:

Freddie Mac preferred stock

$

$

174

$

$

174

Total equity securities with readily determinable fair value

$

$

174

$

$

174

Mortgage loans held for sale

$

$

3,227

$

$

3,227

Consumer loans held for sale

7,914

7,914

Rate lock commitments

 

 

243

 

 

243

Interest rate swap agreements

 

 

8,933

 

 

8,933

Financial liabilities:

Mandatory forward contracts

$

$

61

$

$

61

Interest rate swap agreements

8,933

 

8,933

Assets Measured at Fair Value on a Non-Recurring Basis

Fair Value Measurements at

March 31, 2024 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

Other real estate owned:

Commercial real estate

$

$

$

1,486

$

1,486

Total other real estate owned

$

$

$

1,486

$

1,486

Fair Value Measurements at

December 31, 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

$

$

$

1,580

$

1,580

Commercial real estate

 

 

 

795

 

795

Home equity

 

 

 

104

 

104

Total collateral-dependent loans*

$

$

$

2,479

$

2,479

Other real estate owned:

Residential real estate

$

$

$

1,370

$

1,370

Total other real estate owned

$

$

$

1,370

$

1,370

Provisions for collateral dependent impaired loans

Three Months Ended

March 31, 

(in thousands)

    

2024

    

2023

Provision on collateral-dependent loans

$

(7)

$

(19)

Other Real Estate Owned

    

(in thousands)

March 31, 2024

    

December 31, 2023

    

Other real estate owned carried at fair value

$

1,486

$

1,370

Total carrying value of other real estate owned

$

1,486

$

1,370

Three Months Ended

    

March 31, 

(in thousands)

    

2024

    

2023

Other real estate owned write-downs during the period

$

53

$

52

Carrying amount and estimated fair values of financial instruments

Fair Value Measurements at

 

March 31, 2024:

 

    

    

    

    

    

    

    

    

Total

 

Carrying

Fair

 

(in thousands)

Value

Level 1

Level 2

Level 3

Value

 

Assets:

Cash and cash equivalents

$

546,363

$

546,363

$

$

$

546,363

Available-for-sale debt securities

 

587,805

 

148,755

 

433,251

 

5,799

 

587,805

Held-to-maturity debt securities

 

76,254

 

 

76,119

 

 

76,119

Equity securities with readily determinable fair values

235

235

235

Mortgage loans held for sale, at fair value

 

80,884

 

 

80,884

 

 

80,884

Consumer loans held for sale, at fair value

6,093

6,093

6,093

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

13,083

13,083

13,083

Loans, net

 

5,115,590

 

 

 

4,843,728

 

4,843,728

Federal Home Loan Bank stock

 

43,729

 

 

 

 

NA

Accrued interest receivable

 

20,325

 

 

4,111

 

16,214

 

20,325

Mortgage servicing rights

7,102

16,054

16,054

Rate lock commitments

466

466

466

Interest rate swap agreements

7,870

7,870

7,870

Liabilities:

Noninterest-bearing deposits

$

1,359,516

$

$

1,359,516

$

$

1,359,516

Transaction deposits

 

3,583,714

 

 

3,583,714

 

 

3,583,714

Time deposits

 

477,419

 

 

473,818

 

 

473,818

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

 

86,171

 

 

86,171

 

 

86,171

Federal Home Loan Bank advances

 

270,000

 

 

270,565

 

 

270,565

Accrued interest payable

 

6,905

 

 

6,905

 

 

6,905

Rate lock commitments

466

466

466

Mandatory forward contracts

(77)

(77)

(77)

Interest rate swap agreements

7,870

7,870

7,870

Fair Value Measurements at

 

December 31, 2023:

 

    

    

    

    

    

    

    

    

    

Total

 

Carrying

Fair

 

(in thousands)

Value

Level 1

Level 2

Level 3

Value

 

Assets:

Cash and cash equivalents

$

316,567

$

316,567

$

$

$

316,567

Available-for-sale debt securities

 

 

 

 

 

Held-to-maturity debt securities

 

76,387

 

 

76,167

 

 

76,167

Equity securities with readily determinable fair values

174

Mortgage loans held for sale, at fair value

 

3,227

 

 

3,227

 

 

3,227

Consumer loans held for sale, at fair value

7,914

7,914

7,914

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

16,094

16,094

16,094

Loans, net

 

5,157,731

 

 

 

4,874,974

 

4,874,974

Federal Home Loan Bank stock

 

23,770

 

 

 

 

NA

Accrued interest receivable

 

18,447

 

 

4,097

 

14,350

 

18,447

Mortgage servicing rights

7,411

16,054

16,054

Rate lock commitments

243

243

243

Interest rate swap agreements

8,933

8,933

8,933

Liabilities:

Noninterest-bearing deposits

$

1,676,998

$

$

1,676,998

$

$

1,676,998

Transaction deposits

 

2,924,114

 

 

2,924,114

 

 

2,924,114

Time deposits

 

452,051

 

 

446,218

 

 

446,218

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

 

 

 

 

 

Federal Home Loan Bank advances

 

380,000

 

 

382,062

 

 

382,062

Accrued interest payable

 

4,073

 

 

4,073

 

 

4,073

Rate lock commitments

 

243

243

243

Mandatory forward contracts

61

61

61

Interest rate swap agreements

8,933

8,933

8,933

Nonrecurring basis  
Fair Value Disclosures  
Fair value inputs quantitative information

    

    

    

    

    

    

    

Range

Fair

Valuation

Unobservable

(Weighted

March 31, 2024 (dollars in thousands)

Value

Technique

Inputs

Average)

Other real estate owned - commercial real estate

$

1,486

 

Sales comparison approach

 

Adjustments determined for differences between comparable sales

 

39% (39%)

    

    

    

    

    

    

    

Range

Fair

Valuation

Unobservable

(Weighted

December 31, 2023 (dollars in thousands)

Value

Technique

Inputs

Average)

Collateral-dependent loans - residential real estate owner-occupied

$

1,580

 

Sales comparison approach

 

Adjustments determined for differences between comparable sales

 

0% - 27% (4%)

Collateral-dependent loans - commercial real estate

$

795

 

Sales comparison approach

 

Adjustments determined for differences between comparable sales

 

11% (11%)

Collateral-dependent loans - home equity

$

104

 

Sales comparison approach

 

Adjustments determined for differences between comparable sales

 

5% (5%)

Other real estate owned - commercial real estate

$

1,370

 

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

March 31, 

(in thousands)

2024

2023

    

Balance, beginning of period

$

1,773

$

2,127

Total gains or losses included in earnings:

Net change in unrealized gain (loss)

 

57

 

5

Principal paydowns

 

(58)

 

(122)

Balance, end of period

$

1,772

$

2,010

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

    

Fair

    

Valuation

    

    

    

 

March 31, 2024 (dollars in thousands)

Value

Technique

Unobservable Inputs

Range

 

Private label mortgage-backed security

$

1,772

 

Discounted cash flow

 

(1) Constant prepayment rate

 

3.9% - 4.6%

 

(2) Probability of default

 

1.8% - 9.4%

 

(3) Loss severity

 

22% - 35%

    

Fair

    

Valuation

    

    

    

 

December 31, 2023 (dollars in thousands)

Value

Technique

Unobservable Inputs

Range

 

Private label mortgage-backed security

$

1,773

 

Discounted cash flow

 

(1) Constant prepayment rate

 

3.9% - 4.5%

 

(2) Probability of default

 

1.8% - 9.4%

 

(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

March 31, 

(in thousands)

2024

2023

Balance, beginning of period

$

4,118

$

3,855

Total gains or losses included in earnings:

Discount accretion

15

14

Net change in unrealized gain (loss)

 

(106)

 

132

Balance, end of period

$

4,027

$

4,001

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

(in thousands)

    

March 31, 2024

    

December 31, 2023

 

Aggregate fair value

$

80,884

$

3,227

Contractual balance

 

80,681

 

3,168

Unrealized gain

 

203

 

59

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

Three Months Ended

    

March 31, 

(in thousands)

    

2024

    

2023

Interest income

$

86

$

61

Change in fair value

 

145

 

(8)

Total included in earnings

$

231

$

53

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

(in thousands)

    

March 31, 2024

    

December 31, 2023

Aggregate fair value

$

6,093

$

7,914

Contractual balance

 

6,129

 

7,964

Unrealized loss

 

(36)

 

(50)

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

Three Months Ended

March 31, 

(in thousands)

    

2024

    

2023

Interest income

$

1,173

$

765

Change in fair value

 

14

 

3

Total included in earnings

$

1,187

$

768

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

    

Fair

    

Valuation

    

    

    

March 31, 2024 (dollars in thousands)

Value

Technique

Unobservable Inputs

Rate

Consumer loans held for sale

$

6,093

 

Contract Terms

 

(1) Net Premium

 

0.15%

 

(2) Discounted Sales

 

10.00%

    

Fair

    

Valuation

    

    

    

December 31, 2023 (dollars in thousands)

Value

Technique

Unobservable Inputs

Rate

Consumer loans held for sale

$

7,914

 

Contract Terms

 

(1) Net Premium

 

0.15%

 

(2) Discounted Sales

 

10.00%