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v3.22.2.2

FAIR VALUE (Tables) | 9 Months Ended
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Sep. 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 September 30, 2022 and December 31, 2021:
| Level 1 |  | Level 2 |  | Level 3 |  | Total Fair Value Measurements
September 30, 2022 |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |
Investment securities: |  |  |  |  |  |  |
U.S. Treasury securities | $ | 17,115 |  |  | $ | — |  |  | $ | — |  |  | $ | 17,115 |
States and political subdivisions | — |  |  | 214,207 |  |  | 5,829 |  |  | 220,036 |
GSE residential MBSs | — |  |  | 59,203 |  |  | — |  |  | 59,203 |
GSE residential CMOs | — |  |  | 64,150 |  |  | — |  |  | 64,150 |
Non-agency CMOs | — |  |  | 28,972 |  |  | — |  |  | 28,972 |
Asset-backed | — |  |  | 113,735 |  |  | — |  |  | 113,735 |
Other | 385 |  |  | — |  |  | — |  |  | 385 |
Loans held for sale | — |  |  | 10,175 |  |  | — |  |  | 10,175 |
Derivatives | — |  |  | 11,004 |  |  | 88 |  |  | 11,092 |
Totals | $ | 17,500 |  |  | $ | 501,446 |  |  | $ | 5,917 |  |  | $ | 524,863 |
Financial Liabilities |  |  |  |  |  |  |
Derivatives | $ | — |  |  | $ | 11,234 |  |  | $ | — |  |  | $ | 11,234 |
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 |
Non-agency 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 September 30, 2022 and 2021: Investment securities:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Balance, beginning of period | $ | 6,255 |  |  | $ | 24,925 |  |  | $ | 23,147 |  |  | $ | 31,503 |
Unrealized (losses) gains included in OCI | (422) |  |  | (964) |  |  | (2,002) |  |  | 467 |
Net (premium amortization) discount accretion | (4) |  |  | — |  |  | 62 |  |  | — |
Principal payments and other | — |  |  | (487) |  |  | — |  |  | (4,951) |
Sales | — |  |  | — |  |  | (3,053) |  |  | (3,545) |
Calls | — |  |  | — |  |  | (12,154) |  |  | — |
OTTI | — |  |  | — |  |  | (171) |  |  | — |
Balance, end of period | $ | 5,829 |  |  | $ | 23,474 |  |  | $ | 5,829 |  |  | $ | 23,474 |
Interest rate lock commitments on residential mortgages:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Balance, beginning of period | $ | 186 |  |  | $ | 456 |  |  | $ | 353 |  |  | $ | 673 |
Total (losses) gains included in earnings | (98) |  |  | 90 |  |  | (265) |  |  | (127) |
Balance, end of period | $ | 88 |  |  | $ | 546 |  |  | $ | 88 |  |  | $ | 546 |
Summary of Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes assets measured at fair value on a nonrecurring basis at September 30, 2022 and December 31, 2021:
| Level 1 |  | Level 2 |  | Level 3 |  | Total Fair Value Measurements
September 30, 2022 |  |  |  |  |  |  |
Impaired Loans |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |
Owner occupied | $ | — |  |  | $ | — |  |  | $ | 126 |  |  | $ | 126 |
Non-owner occupied residential | — |  |  | — |  |  | 15 |  |  | 15 |
Residential mortgage: |  |  |  |  |  |  |
First lien | — |  |  | — |  |  | 372 |  |  | 372 |
Home equity - lines of credit | — |  |  | — |  |  | 59 |  |  | 59 |
Total impaired loans | $ | — |  |  | $ | — |  |  | $ | 572 |  |  | $ | 572 |
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
September 30, 2022 |  |  |  |  |  |  |
Impaired loans | $ | 572 |  |  | 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
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 September 30, 2022 and December 31, 2021:
| Carrying Amount |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
September 30, 2022 |  |  |  |  |  |  |  |  |
Financial Assets |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 34,481 |  |  | $ | 34,481 |  |  | $ | 34,481 |  |  | $ | — |  |  | $ | — |
Interest-bearing deposits with banks | 32,446 |  |  | 32,446 |  |  | 32,446 |  |  | — |  |  | — |
Restricted investments in bank stock | 6,469 |  |  | n/a |  | n/a |  | n/a |  | n/a
Investment securities | 503,596 |  |  | 503,596 |  |  | 17,500 |  |  | 480,267 |  |  | 5,829 |
Loans held for sale | 10,175 |  |  | 10,175 |  |  | — |  |  | 10,175 |  |  | — |
Loans, net of allowance for loan losses | 2,063,218 |  |  | 1,912,225 |  |  | — |  |  | — |  |  | 1,912,225 |
Derivatives | 11,092 |  |  | 11,092 |  |  | — |  |  | 11,004 |  |  | 88 |
Accrued interest receivable | 9,212 |  |  | 9,212 |  |  | — |  |  | 3,781 |  |  | 5,431 |
Financial Liabilities |  |  |  |  |  |  |  |  |
Deposits | 2,505,853 |  |  | 2,502,308 |  |  | — |  |  | 2,502,308 |  |  | — |
Securities sold under agreements to repurchase | 21,065 |  |  | 21,065 |  |  | — |  |  | 21,065 |  |  | — |
FHLB advances and other borrowings | 1,567 |  |  | 1,576 |  |  | — |  |  | 1,576 |  |  | — |
Subordinated notes | 32,010 |  |  | 31,969 |  |  | — |  |  | 31,969 |  |  | — |
Derivatives | 11,234 |  |  | 11,234 |  |  | — |  |  | 11,234 |  |  | — |
Accrued interest payable | 650 |  |  | 650 |  |  | — |  |  | 650 |  |  | — |
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 | — |  |  | — |  |  | — |  |  | — |  |  | — |

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- 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
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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 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
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- 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
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