XML 51 R42.htm IDEA: XBRL DOCUMENT v3.23.2

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Assets Measured at Fair Value on a Recurring and Non-Recurring Basis

The following tables present for each of the fair-value hierarchy levels the Company’s assets that are measured at fair value on a recurring and nonrecurring basis as of the dates indicated (in thousands).

		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Total
June 30, 2023
Measured on a recurring basis:
Securities available for sale:
U.S. Government agency and government sponsored enterprises		$	—			$	21,261			$	—			$	21,261
Mortgage-backed securities			—				890,861				—				890,861
Other assets:
Hedging derivative instruments			—				7,969				—				7,969
Fair value adjusted through comprehensive income		$	—			$	920,091			$	—			$	920,091
Other assets:
Derivative instruments – interest rate swaps			—				43,944				—				43,944
Derivative instruments – credit contracts			—				—				—				-
Derivative instruments – mortgage banking			—				128				—				128
Other liabilities:
Derivative instruments – interest rate swaps			—				(43,947	)			—				(43,947	)
Derivative instruments – credit contracts			—				—				—				-
Derivative instruments – mortgage banking			—				(22	)			—				(22	)
Fair value adjusted through net income		$	—			$	103			$	—			$	103
Measured on a nonrecurring basis:
Loans:
Loans held for sale		$	—			$	805			$	—			$	805
Collateral dependent loans			—				—				20,528				20,528
Other assets:
Long-lived assets held for sale			—				—				1,483				1,483
Loan servicing rights			—				—				1,428				1,428
Other real estate owned			—				—				163				163
Total		$	—			$	805			$	23,602			$	24,407

There were no transfers between Levels 1 and 2 during the six months ended June 30, 2023. There were no liabilities measured at fair value on a nonrecurring basis during the six months ended June 30, 2023.

		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Total
December 31, 2022
Measured on a recurring basis:
Securities available for sale:
U.S. Government agencies and government sponsored enterprises		$	—			$	21,115			$	—			$	21,115
Mortgage-backed securities			—				933,256				—				933,256
Other assets:
Hedging derivative instruments			—				6,725				—				6,725
Fair value adjusted through comprehensive income		$	—			$	961,096			$	—			$	961,096
Other assets:
Derivative instruments – interest rate products		$	—			$	47,736			$	—			$	47,736
Derivative instruments – mortgage banking			—				96				—				96
Other liabilities:
Derivative instruments – interest rate products			—				(47,738	)			—				(47,738	)
Derivative instruments – mortgage banking			—				(13	)			—				(13	)
Fair value adjusted through net income		$	—			$	81			$	—			$	81
Measured on a nonrecurring basis:
Loans:
Loans held for sale		$	—			$	550			$	—			$	550
Collateral dependent loans			—				—				21,454				21,454
Other assets:
Long-lived assets held for sale			—				—				1,509				1,509
Loan servicing rights			—				—				1,470				1,470
Other real estate owned			—				—				19				19
Total		$	—			$	550			$	24,452			$	25,002

Additional Quantitative Information about Assets Measured at Fair Value on Recurring and Non-Recurring Basis

The following table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value as of June 30, 2023 (dollars in thousands).

Asset		Fair Value				Valuation Technique		Unobservable Input		Unobservable Input Value or Range
Collateral dependent loans		$	20,528			Appraisal of collateral (1)		Appraisal adjustments (2)		12.5%(3) / 0 - 26.9%
Loan servicing rights		$	1,428			Discounted cash flow		Discount rate		10.4% (3)
								Constant prepayment rate		11.8% (3)
Long-lived assets held for sale		$	1,483			Appraisal of collateral (1)		Appraisal adjustments (2)		9.7 - 41.3%
Other real estate owned		$	163			Appraisal of collateral (1)		Appraisal adjustments (2)		42.3%

(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.

(3) Weighted averages.

Carrying Amount, Estimated Fair Value, and Placement in Fair Value Hierarchy of Financial Instruments

The following table presents (in thousands) the carrying amount, estimated fair value, and placement in the fair value measurement hierarchy of the Company’s financial instruments as of the dates indicated.

		Level in		June 30, 2023								December 31, 2022
		Fair Value						Estimated								Estimated
		Measurement		Carrying				Fair				Carrying				Fair
		Hierarchy		Amount				Value				Amount				Value
Financial assets:
Cash and cash equivalents		Level 1		$	180,248			$	180,248			$	130,466			$	130,466
Securities available for sale		Level 2			912,122				912,122				954,371				954,371
Securities held to maturity, net		Level 2			159,893				146,026				188,975				174,188
Loans held for sale		Level 2			805				805				550				550
Loans		Level 2			4,327,445				4,190,444				3,983,582				3,867,285
Loans (1)		Level 3			20,528				20,528				21,454				21,454
Long-lived assets held for sale		Level 3			1,483				1,483				1,509				1,509
Accrued interest receivable		Level 1			21,731				21,731				19,371				19,371
Derivative instruments – cash flow hedges		Level 2			7,969				7,969				6,725				6,725
Derivative instruments – interest rate products		Level 2			43,944				43,944				47,736				47,736
Derivative instruments – mortgage banking		Level 2			128				128				96				96
FHLB and FRB stock		Level 2			28,741				28,741				19,385				19,385
Financial liabilities:
Non-maturity deposits		Level 1			3,487,785				3,487,785				3,646,552				3,646,552
Time deposits		Level 2			1,547,076				1,536,483				1,282,872				1,268,957
Short-term borrowings		Level 1			374,000				374,000				205,000				205,000
Long-term borrowings		Level 2			124,377				119,878				74,222				70,814
Accrued interest payable		Level 1			16,356				16,356				5,983				5,983
Derivative instruments – interest rate products		Level 2			43,947				43,947				47,738				47,738
Derivative instruments – credit contracts		Level 2			—				—				—				—
Derivative instruments – mortgage banking		Level 2			22				22				13				13

(1) Comprised of collateral dependent loans.

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 measured at fair value measured on a recurring or nonrecurring basis. Includes, but is not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2.

+ 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_FairValueAssetsMeasuredOnRecurringAndNonrecurringBasisTableTextBlock
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