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Fair Value Measurements and Fair Value of Financial Instruments (Tables) | 12 Months Ended
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Dec. 31, 2021
Fair Value Disclosures [Abstract] |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | For financial assets and liabilities measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used as of December 31, 2021 and December 31, 2020 are as follows:
|  |  |  |  | December 31, 2021 Fair Value Measurements at Reporting Date Using |
|  | Total Fair Value |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Recurring fair value measurements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal agency obligations |  | $ | 50,360 |  |  | $ | - |  |  | $ | 50,360 |  |  | $ | - |
Residential mortgage pass-through securities |  |  | 316,095 |  |  |  | - |  |  |  | 316,095 |  |  |  | - |
Commercial mortgage pass-through securities |  |  | 10,469 |  |  |  | - |  |  |  | 10,469 |  |  |  | - |
Obligations of U.S. states and political subdivision |  |  | 145,625 |  |  |  | - |  |  |  | 137,060 |  |  |  | 8,565 |
Corporate bonds and notes |  |  | 9,049 |  |  |  | - |  |  |  | 9,049 |  |  |  | - |
Asset-backed securities |  |  | 2,564 |  |  |  | - |  |  |  | 2,564 |  |  |  | - |
Certificates of deposit |  |  | 150 |  |  |  | - |  |  |  | 150 |  |  |  | - |
Other securities |  |  | 195 |  |  |  | 195 |  |  |  | - |  |  |  | - |
Total available-for-sale |  | $ | 534,507 |  |  | $ | 195 |  |  | $ | 525,747 |  |  | $ | 8,565 |
Equity securities |  |  | 13,794 |  |  |  | 11,081 |  |  |  | 2,713 |  |  |  | - |
Derivatives |  |  | 3,347 |  |  |  | - |  |  |  | 3,347 |  |  |  | - |
Total assets |  | $ | 551,648 |  |  | $ | 11,276 |  |  | $ | 531,807 |  |  | $ | 8,565 |
There were no transfers between Level 1 and Level 2 during the years ended December 31, 2021 and 2020. - 100 - Table of Contents CONNECTONE BANCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 20 – Fair Value Measurements and Fair Value of Financial Instruments – (continued)
|  |  |  |  | December 31, 2020 Fair Value Measurements at Reporting Date Using |
|  | Total Fair Value |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |
Recurring fair value measurements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Federal agency obligations |  | $ | 38,458 |  |  | $ | - |  |  | $ | 38,458 |  |  | $ | - |
Residential mortgage pass-through securities |  |  | 270,884 |  |  |  | - |  |  |  | 270,884 |  |  |  | - |
Commercial mortgage pass-through securities |  |  | 6,922 |  |  |  | - |  |  |  | 6,922 |  |  |  | - |
Obligations of U.S. states and political subdivision |  |  | 142,808 |  |  |  | - |  |  |  | 133,964 |  |  |  | 8,844 |
Corporate bonds and notes |  |  | 25,095 |  |  |  | - |  |  |  | 25,095 |  |  |  | - |
Asset-backed securities |  |  | 3,480 |  |  |  | - |  |  |  | 3,480 |  |  |  | - |
Certificates of deposit |  |  | 151 |  |  |  | - |  |  |  | 151 |  |  |  | - |
Other securities |  |  | 157 |  |  |  | 157 |  |  |  | - |  |  |  | - |
Total available-for-sale |  | $ | 487,955 |  |  | $ | 157 |  |  | $ | 478,954 |  |  | $ | 8,844 |
Equity securities |  |  | 13,387 |  |  |  | 13,387 |  |  |  | - |  |  |  | - |
Total assets |  | $ | 501,343 |  |  | $ | 13,544 |  |  | $ | 478,954 |  |  | $ | 8,844 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives |  | $ | (2,119 | ) |  | $ | - |  |  | $ | (2,119 | ) |  | $ | - |
Total liabilities |  | $ | (2,119 | ) |  | $ | - |  |  | $ | (2,119 | ) |  | $ | - |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | For assets measured at fair value on a nonrecurring basis, the fair value measurements as of December 31, 2021 and December 31, 2020 are as follows:
|  |  |  |  | Fair Value Measurements at Reporting Date Using |
Assets measured at fair value on a nonrecurring basis: |  | December 31, 2021 |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Collateral dependent loans: |  | (dollars in thousands) |
Commercial |  | $ | 13,399 |  |  | $ | - |  |  | $ | - |  |  | $ | 13,399 |
Commercial real estate |  |  | 20,185 |  |  |  | - |  |  |  | - |  |  |  | 20,185 |
Residential real estate |  |  | 2,794 |  |  |  | - |  |  |  | - |  |  |  | 2,794 |
|  |  |  |  | Fair Value Measurements at Reporting Date Using |
Assets measured at fair value on a nonrecurring basis: |  | December 31, 2020 |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Impaired loans: |  | (dollars in thousands) |
Commercial |  | $ | 10,751 |  |  | $ | - |  |  | $ | - |  |  | $ | 10,751 |
Commercial real estate |  |  | 1,393 |  |  |  | - |  |  |  | - |  |  |  | 1,393 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of December 31, 2021 and December 31, 2020:
|  |  |  |  |  |  |  | Fair Value Measurements |
|  | Carrying Amount |  |  | Fair Value |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Other Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
|  | (dollars in thousands) |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 265,536 |  |  | $ | 265,536 |  |  | $ | 265,536 |  |  | $ | - |  |  | $ | - |
Investment securities available-for-sale |  |  | 534,507 |  |  |  | 534,507 |  |  |  | 195 |  |  |  | 525,747 |  |  |  | 8,565 |
Restricted investment in bank stocks |  |  | 27,826 |  |  |  | n/a |  |  |  | n/a |  |  |  | n/a |  |  |  | n/a |
Equity securities |  |  | 13,794 |  |  |  | 13,794 |  |  |  | 11,081 |  |  |  | 2,713 |  |  |  | - |
Net loans |  |  | 6,749,849 |  |  |  | 6,800,287 |  |  |  | - |  |  |  | - |  |  |  | 6,800,287 |
Derivatives |  |  | 3,347 |  |  |  | 3,347 |  |  |  | - |  |  |  | 3,347 |  |  |  | - |
Accrued interest receivable |  |  | 34,152 |  |  |  | 34,152 |  |  |  | - |  |  |  | 1,554 |  |  |  | 32,598 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits |  |  | 1,617,049 |  |  |  | 1,617,049 |  |  |  | 1,617,049 |  |  |  | - |  |  |  | - |
Interest-bearing deposits |  |  | 4,715,904 |  |  |  | 4,716,358 |  |  |  | 3,565,795 |  |  |  | 1,150,563 |  |  |  | - |
Borrowings |  |  | 468,193 |  |  |  | 469,671 |  |  |  | - |  |  |  | 469,671 |  |  |  | - |
Subordinated debentures |  |  | 152,951 |  |  |  | 163,995 |  |  |  | - |  |  |  | 163,995 |  |  |  | - |
Accrued interest payable |  |  | 2,716 |  |  |  | 2,716 |  |  |  | - |  |  |  | 2,716 |  |  |  | - |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 303,756 |  |  | $ | 303,756 |  |  | $ | 303,756 |  |  | $ | - |  |  | $ | - |
Investment securities available-for-sale |  |  | 487,955 |  |  |  | 487,955 |  |  |  | 157 |  |  |  | 478,954 |  |  |  | 8,844 |
Restricted investment in bank stocks |  |  | 25,099 |  |  |  | n/a |  |  |  | n/a |  |  |  | n/a |  |  |  | n/a |
Equity securities |  |  | 13,387 |  |  |  | 13,387 |  |  |  | 13,387 |  |  |  | - |  |  |  | - |
Net loans |  |  | 6,157,081 |  |  |  | 6,244,037 |  |  |  | - |  |  |  | - |  |  |  | 6,244,037 |
Accrued interest receivable |  |  | 35,317 |  |  |  | 35,317 |  |  |  | - |  |  |  | 1,764 |  |  |  | 33,553 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing deposits |  |  | 1,339,108 |  |  |  | 1,339,108 |  |  |  | 1,339,108 |  |  |  | - |  |  |  | - |
Interest-bearing deposits |  |  | 4,620,116 |  |  |  | 4,633,961 |  |  |  | 3,155,983 |  |  |  | 1,477,978 |  |  |  | - |
Borrowings |  |  | 425,954 |  |  |  | 429,671 |  |  |  | - |  |  |  | 429,671 |  |  |  | - |
Subordinated debentures |  |  | 202,648 |  |  |  | 214,113 |  |  |  | - |  |  |  | 214,113 |  |  |  | - |
Derivatives |  |  | 2,119 |  |  |  | 2,119 |  |  |  | - |  |  |  | 2,119 |  |  |  | - |
Accrued interest payable |  |  | 3,687 |  |  |  | 3,687 |  |  |  | - |  |  |  | 3,687 |  |  |  | - |
Cash and due from banks |  | $ | 303,756 |  |  | $ | 303,756 |  |  | $ | 303,756 |  |  | $ | - |  |  | $ | - |
Fair Value, Recurring basis [Table Text Block] | The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2021 and year ended December 31, 2020:
| Municipal Securities |
| (dollars in thousands) |
Beginning balance, January 1, 2021 | $ | 8,844 |
Principal paydowns |  | (279 | )
Ending balance, December 31, 2021 | $ | 8,565 |
| Municipal Securities |
| (dollars in thousands) |
Beginning balance, January 1, 2020 | $ | 9,114 |
Principal paydowns |  | (270 | )
Ending balance, December 31, 2020 | $ | 8,844 |
Significant unobservable inputs used in fair value measurements [Table Text Block] | The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a recurring basis as of December 31, 2021 and December 31, 2020. The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy. December 31, 2021
|  | Fair Value |  |  | Valuation Techniques |  | Unobservable Input |  | Range |
Securities available-for-sale: |  |  |  |  | (dollars in thousands) |  |  |  |  |
Municipal securities |  | $ | 8,565 |  |  | Discounted cash flows |  | Discount rate |  |  | 2.9% |
December 31, 2020
|  | Fair Value |  |  | Valuation Techniques |  | Unobservable Input |  | Range |
Securities available-for-sale: |  |  |  |  | (dollars in thousands) |  |  |  |  |
Municipal securities |  |  | 8,844 |  |  | Discounted cash flows |  | Discount rate |  |  | 2.9% |
Fair Value Measurements, Nonrecurring [Table Text Block] | The following methods and assumptions were used to estimate the fair values of the Company’s assets measured at fair value on a non-recurring basis for the periods presented. The tables below provide quantitative information about significant unobservable inputs used in fair value measurements within Level 3 hierarchy. December 31, 2021
(dollars in thousands) |  | Fair Value |  |  | Valuation Techniques |  | Unobservable Input |  | Range (weighed average)
Commercial |  | $ | 12,193 |  |  | Market approach (100%) |  | Average transfer price as a price to unpaid principal balance |  | 48% to 73% (49%)
Commercial |  | $ | 1,206 |  |  | Appraisals of collateral value |  | Adjustment for comparable sales |  | -10% to +35% (+6%)
Commercial real estate |  | $ | 20,185 |  |  | Appraisals of collateral value |  | Adjustment for comparable sales |  | -20% to +15% (-6%)
Residential real estate |  | $ | 2,794 |  |  | Appraisals of collateral value |  | Adjustment for comparable sales |  | -15% to +39% (5%)
December 31, 2020
(dollars in thousands) |  | Fair Value |  |  | Valuation Techniques |  | Unobservable Input |  | Range (weighed average)
Impaired loans: |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 10,524 |  |  | Market approach (100%) |  | Average transfer price as a price to unpaid principal balance |  | 48-53 (49)
Commercial |  | $ | 227 |  |  | Appraisals of collateral value |  | Adjustment for comparable sales |  | 1% to +5% (+2%)
Commercial Real Estate |  | $ | 1,393 |  |  | Appraisals of collateral value |  | Adjustment for comparable sales |  | -25% to +20% (-8%)

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- Definition Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
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