XML 48 R38.htm IDEA: XBRL DOCUMENT v3.23.3

FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2023

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, 2023 and December 31, 2022:

			Level 1						Level 2						Level 3						Total Fair Value Measurements
September 30, 2023
Financial Assets
Investment securities:
U.S. Treasury securities			$	17,143					$	—					$	—					$	17,143
U.S. Government Agencies			—						4,322						—						4,322
States and political subdivisions			—						182,522						5,595						188,117
GSE residential MBSs			—						57,351						—						57,351
GSE commercial MBSs			—						4,778						—						4,778
GSE residential CMOs			—						72,037						—						72,037
Non-agency CMOs			—						17,521						21,458						38,979
Asset-backed			—						112,315						—						112,315
Other			120						—						—						120
Loans held for sale			—						6,448						—						6,448
Derivatives			—						16,553						15						16,568
Totals			$	17,263					$	473,847					$	27,068					$	518,178
Financial Liabilities
Derivatives			$	—					$	14,328					$	—					$	14,328
December 31, 2022
Financial Assets
Investment securities:
U.S. Treasury securities			$	17,291					$	—					$	—					$	17,291
U.S. Government Agencies			—						5,135						—						5,135
States and political subdivisions			—						191,488						5,926						197,414
GSE residential MBSs			—						59,402						—						59,402
GSE residential CMOs			—						68,378						—						68,378
Non-agency CMOs			—						18,491						21,267						39,758
Asset-backed			—						125,973						—						125,973
Other			377						—						—						377
Loans held for sale			—						10,880						—						10,880
Derivatives			—						10,482						35						10,517
Totals			$	17,668					$	490,229					$	27,228					$	535,125
Financial Liabilities
Derivatives			$	—					$	11,333					$	—					$	11,333

Level 3 Fair Value Measurement Activity

The following provides details of the Level 3 fair value measurement activity for the periods ended September 30, 2023 and 2022:

Investment securities:

			Three Months Ended September 30,												Nine Months Ended September 30,
			2023						2022						2023						2022
Balance, beginning of period			$	27,994					$	6,255					$	27,193					$	23,147
Unrealized losses included in OCI			(736)						(422)						(600)						(2,002)
Purchases			—						—						871						—
Net discount accretion (premium amortization)			19						(4)						42						62
Principal payments and other			(225)						—						(454)						—
Sales			—						—						—						(3,053)
Calls			—						—						—						(12,154)
OTTI			—						—						—						(171)
Balance, end of period			$	27,052					$	5,829					$	27,052					$	5,829

Interest rate lock commitments on residential mortgages:

			Three Months Ended September 30,												Nine Months Ended September 30,
			2023						2022						2023						2022
Balance, beginning of period			$	67					$	186					$	35					$	353
Total losses included in earnings			(52)						(98)						(20)						(265)
Balance, end of period			$	15					$	88					$	15					$	88

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, 2023 and December 31, 2022:

			Level 1						Level 2						Level 3						Total Fair Value Measurements
September 30, 2023
Individually Evaluated Loans
Commercial real estate:
Owner occupied			$	—					$	—					$	88					$	88
Non-owner occupied residential			—						—						—						—
Commercial and industrial			—						—						146						146
Residential mortgage:
First lien			—						—						226						226
Home equity - lines of credit			—						—						62						62
Total individually evaluated loans			$	—					$	—					$	522					$	522
December 31, 2022
Impaired Loans
Commercial real estate:
Owner occupied			$	—					$	—					$	116					$	116
Non-owner occupied residential			—						—						9						9
Residential mortgage:
First lien			—						—						309						309
Home equity - lines of credit			—						—						86						86
Total impaired loans			$	—					$	—					$	520					$	520

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, 2023

Individually evaluated loans

$

522

Appraisal of collateral

Management adjustments on appraisals for property type and recent activity

10% - 25% discount

- Management adjustments for liquidation expenses

6.75% - 10.29% discount

December 31, 2022

Impaired loans

$

520

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

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, 2023 and December 31, 2022:

			Carrying Amount						Fair Value						Level 1						Level 2						Level 3
September 30, 2023
Financial Assets
Cash and due from banks			$	34,728					$	34,728					$	34,728					$	—					$	—
Interest-bearing deposits with banks			60,211						60,211						60,211						—						—
Restricted investments in bank stock			12,987						n/a						n/a						n/a						n/a
Investment securities			495,162						495,162						17,263						450,846						27,053
Loans held for sale			6,448						6,448						—						6,448						—
Loans, net of allowance for credit losses			2,238,558						2,083,811						—						—						2,083,811
Derivatives			16,568						16,568						—						16,553						15
Accrued interest receivable			12,212						12,212						—						4,338						7,874
Financial Liabilities
Deposits			2,546,435						2,542,571						—						2,542,571						—
Deposits held for assumption in connection with sale of bank branches			—						—						—						—						—
Securities sold under agreements to repurchase and federal funds purchased			17,991						17,991						—						17,991						—
FHLB advances and other borrowings			157,250						156,513						—						156,513						—
Subordinated notes			32,076						28,774						—						28,774						—
Derivatives			14,328						14,328						—						14,328						—
Accrued interest payable			1,783						1,783						—						1,783						—
Off-balance sheet instruments			—						—						—						—						—
December 31, 2022
Financial Assets
Cash and due from banks			$	28,477					$	28,477					$	28,477					$	—					$	—
Interest-bearing deposits with banks			32,346						32,346						32,346						—						—
Restricted investments in bank stock			10,642						n/a						n/a						n/a						n/a
Investment securities			513,728						513,728						17,668						468,867						27,193
Loans held for sale			10,880						10,880						—						10,880						—
Loans, net of allowance for loan losses			2,126,054						1,991,164						—						—						1,991,164
Derivatives			10,517						10,517						—						10,482						35
Accrued interest receivable			11,027						11,027						—						4,441						6,586
Financial Liabilities
Deposits			2,444,939						2,440,660						—						2,440,660						—
Deposits held for assumption in connection with sale of bank branches			31,307						29,429						—						29,429						—
Securities sold under agreements to repurchase			17,251						17,251						—						17,251						—
FHLB advances and other borrowings			106,139						106,141						—						106,141						—
Subordinated notes			32,026						31,321						—						31,321						—
Derivatives			11,333						11,333						—						11,333						—
Accrued interest payable			457						457						—						457						—
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
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-SubTopic 10
-Topic 820
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

+ 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
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-SubTopic 10
-Topic 820
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

+ 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
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

+ 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
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-SubTopic 10
-Topic 820
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-3

+ 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
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482907/825-10-50-11

+ 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