XML 41 R31.htm IDEA: XBRL DOCUMENT
v3.22.2

FAIR VALUE (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2022
Fair Value Disclosures [Abstract] |
Summary of Assets Measured at Fair Value on Recurring Basis | The following table summarizes assets and liabilities measured at fair value on a recurring basis at June 30, 2022 and December 31, 2021:
| Level 1 |  | Level 2 |  | Level 3 |  | Total Fair Value Measurements
June 30, 2022 |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |
Investment securities: |  |  |  |  |  |  |
U.S. Treasury securities | $ | 17,969 |  |  | $ | — |  |  | $ | — |  |  | $ | 17,969 |
States and political subdivisions | — |  |  | 227,272 |  |  | 6,255 |  |  | 233,527 |
GSE residential MBSs | — |  |  | 61,558 |  |  | — |  |  | 61,558 |
GSE residential CMOs | — |  |  | 69,691 |  |  | — |  |  | 69,691 |
Nonagency CMOs | — |  |  | 20,698 |  |  | — |  |  | 20,698 |
Asset-backed | — |  |  | 108,856 |  |  | — |  |  | 108,856 |
Other | 399 |  |  | — |  |  | — |  |  | 399 |
Loans held for sale | — |  |  | 7,824 |  |  | — |  |  | 7,824 |
Derivatives | — |  |  | 5,882 |  |  | 186 |  |  | 6,068 |
Totals | $ | 18,368 |  |  | $ | 501,781 |  |  | $ | 6,441 |  |  | $ | 526,590 |
Financial Liabilities |  |  |  |  |  |  |
Derivatives | $ | — |  |  | $ | 5,717 |  |  | $ | — |  |  | $ | 5,717 |
December 31, 2021 |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |
Investment securities: |  |  |  |  |  |  |
U.S. Treasury securities | $ | 19,702 |  |  | $ | — |  |  | $ | — |  |  | $ | 19,702 |
States and political subdivisions | — |  |  | 183,171 |  |  | 10,199 |  |  | 193,370 |
GSE residential MBSs | — |  |  | 40,726 |  |  | — |  |  | 40,726 |
GSE residential CMOs | — |  |  | 65,922 |  |  | — |  |  | 65,922 |
Nonagency CMOs | — |  |  | 16,750 |  |  | 12,948 |  |  | 29,698 |
Asset-backed | — |  |  | 122,621 |  |  | — |  |  | 122,621 |
Other | 399 |  |  | — |  |  | — |  |  | 399 |
Loans held for sale | — |  |  | 8,868 |  |  | — |  |  | 8,868 |
Derivatives | — |  |  | 764 |  |  | 353 |  |  | 1,117 |
Totals | $ | 20,101 |  |  | $ | 438,822 |  |  | $ | 23,500 |  |  | $ | 482,423 |
Financial Liabilities |  |  |  |  |  |  |
Derivatives | $ | — |  |  | $ | 760 |  |  | $ | — |  |  | $ | 760 |
Level 3 Fair Value Measurement Activity | The following provides details of the Level 3 fair value measurement activity for the periods ended June 30, 2022 and 2021: Investment securities:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Balance, beginning of period | $ | 18,634 |  |  | $ | 25,564 |  |  | $ | 23,147 |  |  | $ | 31,503 |
Unrealized losses included in OCI | (220) |  |  | 2,096 |  |  | (1,580) |  |  | 1,431 |
Net (premium amortization) discount accretion | (5) |  |  | — |  |  | 66 |  |  | — |
Principal payments and other | — |  |  | (2,735) |  |  | — |  |  | (4,464) |
Sales | — |  |  | — |  |  | (3,053) |  |  | (3,545) |
Calls | (12,154) |  |  | — |  |  | (12,154) |  |  | — |
OTTI | — |  |  | — |  |  | (171) |  |  | — |
Balance, end of period | $ | 6,255 |  |  | $ | 24,925 |  |  | $ | 6,255 |  |  | $ | 24,925 |
Interest rate lock commitments on residential mortgages:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Balance, beginning of period | $ | 300 |  |  | $ | 672 |  |  | $ | 353 |  |  | $ | 673 |
Total losses included in earnings | (114) |  |  | (216) |  |  | (167) |  |  | (217) |
Balance, end of period | $ | 186 |  |  | $ | 456 |  |  | $ | 186 |  |  | $ | 456 |
Summary of Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes assets measured at fair value on a nonrecurring basis at June 30, 2022 and December 31, 2021:
| Level 1 |  | Level 2 |  | Level 3 |  | Total Fair Value Measurements
June 30, 2022 |  |  |  |  |  |  |
Impaired Loans |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |
Owner occupied | $ | — |  |  | $ | — |  |  | $ | 130 |  |  | $ | 130 |
Non-owner occupied residential | — |  |  | — |  |  | 16 |  |  | 16 |
Residential mortgage: |  |  |  |  |  |  |
First lien | — |  |  | — |  |  | 328 |  |  | 328 |
Home equity - lines of credit | — |  |  | — |  |  | 65 |  |  | 65 |
Total impaired loans | $ | — |  |  | $ | — |  |  | $ | 539 |  |  | $ | 539 |
Mortgage servicing rights | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
December 31, 2021 |  |  |  |  |  |  |
Impaired Loans |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |
Owner occupied | $ | — |  |  | $ | — |  |  | $ | 751 |  |  | $ | 751 |
Non-owner occupied residential | — |  |  | — |  |  | 24 |  |  | 24 |
Residential mortgage: |  |  |  |  |  |  |
First lien | — |  |  | — |  |  | 545 |  |  | 545 |
Home equity - lines of credit | — |  |  | — |  |  | 72 |  |  | 72 |
Total impaired loans | $ | — |  |  | $ | — |  |  | $ | 1,392 |  |  | $ | 1,392 |
Mortgage servicing rights | $ | — |  |  | $ | — |  |  | $ | 322 |  |  | $ | 322 |
Summary of Additional Qualitative Information | The following table presents additional qualitative information about assets measured on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value:
| Fair Value Estimate |  | Valuation Techniques |  | Unobservable Input |  | Range
June 30, 2022 |  |  |  |  |  |  |
Impaired loans | $ | 539 |  |  | Appraisal of collateral |  | Management adjustments on appraisals for property type and recent activity |  | 0% - 25% discount
|  |  |  |  | - Management adjustments for liquidation expenses |  | 6.08% - 17.93% discount
December 31, 2021 |  |  |  |  |  |  |
Impaired loans | $ | 1,392 |  |  | Appraisal of collateral |  | Management adjustments on appraisals for property type and recent activity |  | 10% - 25% discount
|  |  |  |  | - Management adjustments for liquidation expenses |  | 6.08% - 17.93% discount
Mortgage servicing rights | $ | 322 |  |  | Discounted cash flows |  | Weighted average CPR |  | 12.60%
|  |  |  |  | - Weighted average discount rate |  | 9.03%
Carrying Amounts and Estimated Fair Values of Financial Instruments | The following table presents carrying amounts and estimated fair values of the financial assets and liabilities at June 30, 2022 and December 31, 2021:
| Carrying Amount |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
June 30, 2022 |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 25,825 |  |  | $ | 25,825 |  |  | $ | 25,825 |  |  | $ | — |  |  | $ | — |
Interest-bearing deposits with banks | 86,081 |  |  | 86,081 |  |  | 86,081 |  |  | — |  |  | — |
Restricted investments in bank stock | 6,500 |  |  | n/a |  | n/a |  | n/a |  | n/a
Investment securities | 512,698 |  |  | 512,698 |  |  | 18,368 |  |  | 488,075 |  |  | 6,255 |
Loans held for sale | 7,824 |  |  | 7,824 |  |  | — |  |  | 7,824 |  |  | — |
Loans, net of allowance for loan losses | 1,994,350 |  |  | 1,904,407 |  |  | — |  |  | — |  |  | 1,904,407 |
Derivatives | 6,068 |  |  | 6,068 |  |  | — |  |  | 5,882 |  |  | 186 |
Accrued interest receivable | 8,425 |  |  | 8,425 |  |  | — |  |  | 3,490 |  |  | 4,935 |
Financial Liabilities |  |  |  |  |  |  |  |  |
Deposits | 2,478,616 |  |  | 2,477,314 |  |  | — |  |  | 2,477,314 |  |  | — |
Securities sold under agreements to repurchase | 24,287 |  |  | 24,287 |  |  | — |  |  | 24,287 |  |  | — |
FHLB advances and other borrowings | 1,678 |  |  | 1,724 |  |  | — |  |  | 1,724 |  |  | — |
Subordinated notes | 31,994 |  |  | 32,092 |  |  | — |  |  | 32,092 |  |  | — |
Derivatives | 5,717 |  |  | 5,717 |  |  | — |  |  | 5,717 |  |  | — |
Accrued interest payable | 203 |  |  | 203 |  |  | — |  |  | 203 |  |  | — |
Off-balance sheet instruments | — |  |  | — |  |  | — |  |  | — |  |  | — |
December 31, 2021 |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 21,217 |  |  | $ | 21,217 |  |  | $ | 21,217 |  |  | $ | — |  |  | $ | — |
Interest-bearing deposits with banks | 187,493 |  |  | 187,493 |  |  | 187,493 |  |  | — |  |  | — |
Restricted investments in bank stock | 7,252 |  |  | n/a |  | n/a |  | n/a |  | n/a
Investment securities | 472,438 |  |  | 472,438 |  |  | 20,101 |  |  | 429,190 |  |  | 23,147 |
Loans held for sale | 8,868 |  |  | 8,868 |  |  | — |  |  | 8,868 |  |  | — |
Loans, net of allowance for loan losses | 1,958,806 |  |  | 1,946,365 |  |  | — |  |  | — |  |  | 1,946,365 |
Derivatives | 1,117 |  |  | 1,117 |  |  | — |  |  | 764 |  |  | 353 |
Accrued interest receivable | 8,234 |  |  | 8,235 |  |  | — |  |  | 2,203 |  |  | 6,032 |
Financial Liabilities |  |  |  |  |  |  |  |  |
Deposits | 2,464,929 |  |  | 2,466,191 |  |  | — |  |  | 2,466,191 |  |  | — |
Securities sold under agreements to repurchase | 23,301 |  |  | 23,301 |  |  | — |  |  | 23,301 |  |  | — |
FHLB advances and other borrowings | 1,896 |  |  | 2,035 |  |  | — |  |  | 2,035 |  |  | — |
Subordinated notes | 31,963 |  |  | 31,815 |  |  | — |  |  | 31,815 |  |  | — |
Derivatives | 760 |  |  | 760 |  |  | — |  |  | 760 |  |  | — |
Accrued interest payable | 154 |  |  | 154 |  |  | — |  |  | 154 |  |  | — |
Off-balance sheet instruments | — |  |  | — |  |  | — |  |  | — |  |  | — |

X
- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + 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 (bbb) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 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 https://asc.fasb.org/extlink&oid=126976982&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 (bbb) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 3: 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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258 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 (c) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI https://asc.fasb.org/extlink&oid=123594938&loc=d3e13467-108611 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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration