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FAIR VALUE MEASUREMENTS (Tables)
3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

March 31, 2021

    

Level 1

    

Level 2

    

Level 3

    

Total

(in thousands)

Inputs

Inputs

Inputs

Fair Value

Available for sale securities:

  

  

  

Mortgage-backed securities:

 

  

 

  

 

  

 

  

US Government-sponsored enterprises

$

$

214,607

$

$

214,607

US Government agency

 

 

76,185

 

 

76,185

Private label

 

 

47,541

 

 

47,541

Obligations of states and political subdivisions thereof

 

 

187,863

 

 

187,863

Corporate bonds

 

 

100,207

 

 

100,207

Derivative assets

 

 

15,426

 

46

 

15,472

Derivative liabilities

 

 

(16,805)

 

(85)

 

(16,890)

December 31, 2020

    

Level 1

    

Level 2

    

Level 3

    

Total

(in thousands)

Inputs

Inputs

Inputs

Fair Value

Available for sale securities:

  

  

  

  

Mortgage-backed securities:

 

  

 

  

 

  

 

  

US Government-sponsored enterprises

$

$

212,390

$

$

212,390

US Government agency

 

 

85,632

 

 

85,632

Private label

 

 

19,709

 

 

19,709

Obligations of states and political subdivisions thereof

 

 

169,004

 

 

169,004

Corporate bonds

 

 

98,311

 

 

98,311

Derivative assets

 

 

28,684

 

22

 

28,706

Derivative liabilities

 

 

(28,559)

 

(95)

 

(28,654)

Schedule of Changes in Level 3 Assets Measured on a Recurring Basis

Assets (Liabilities)

Interest Rate Lock

Forward

(in thousands)

    

Commitments

    

Commitments

Three Months Ended March 31, 2021

  

  

Balance at beginning of period

$

22

$

(95)

Realized gain recognized in non-interest income

 

24

 

10

Balance at end of period

$

46

$

(85)

Three Months Ended March 31, 2020

  

  

Balance at beginning of period

$

59

$

(84)

Realized gain recognized in non-interest income

 

34

 

11

Balance at end of period

$

93

$

(73)

Schedule of Changes in Level 3 Liabilities Measured on a Recurring Basis

Assets (Liabilities)

Interest Rate Lock

Forward

(in thousands)

    

Commitments

    

Commitments

Three Months Ended March 31, 2021

  

  

Balance at beginning of period

$

22

$

(95)

Realized gain recognized in non-interest income

 

24

 

10

Balance at end of period

$

46

$

(85)

Three Months Ended March 31, 2020

  

  

Balance at beginning of period

$

59

$

(84)

Realized gain recognized in non-interest income

 

34

 

11

Balance at end of period

$

93

$

(73)

Schedule of Quantitative Information, Valuation, Recurring

    

    

    

Significant

 

Fair Value

Fair Value

Unobservable

(in thousands, except ratios)

    

March 31, 2021

    

December 31, 2020

Valuation Techniques

    

Unobservable Inputs

    

Input Value

Assets (Liabilities)

  

  

  

  

  

 

Interest Rate Lock Commitment

 

$

46

$

22

Historical trend

 

Closing Ratio

 

90

%

 

 

Pricing Model

Origination Costs, per loan

$

1.7

 

Forward Commitments

 

(85)

 

(95)

Quoted prices for similar loans in active markets

 

Freddie Mac pricing system

 

Pair-off contract price

Total

$

(39)

$

(73)

  

 

  

 

  

Summary of Applicable Non-Recurring Fair Value Measurements

Fair Value Measurement

March 31, 2021

December 31, 2020

March 31, 2021

Date as of March 31, 2021

Level 3

Level 3

Total

Level 3

(in thousands)

    

Inputs

    

Inputs

    

Gains (Losses)

    

Inputs

Assets

  

  

  

  

Individually evaluated loans

$

10,556

$

8,746

$

(1,810)

March 2021

Capitalized servicing rights

 

4,693

3,605

 

(1,088)

 

March 2021

Premises held for sale

 

971

962

 

(9)

 

December 2020

Total

$

16,220

$

13,313

$

(2,907)

 

  

Schedule of Quantitative Information, Valuation, Non-recurring

 

(in thousands, except ratios)

    

Fair Value March 31, 2021

    

Valuation Techniques

    

Unobservable Inputs

    

Range (Weighted Average)(a)

 

Assets

 

  

 

  

 

  

  

Individually evaluated loans

$

7,238

 

Fair value of collateral-appraised value

 

Loss severity

0% to 70%

 

Appraised value

$0 to $1,792

Individually evaluated loans

 

3,318

 

Discount cash flow

 

Discount rate

 

2.88% to 9.50%

 

Cash flows

$7 to $953

Capitalized servicing rights

 

4,693

 

Discounted cash flow

 

Constant prepayment rate (CPR)

 

13.38

 

  

 

  

 

Discount rate

 

10.04

Premises held for sale

 

971

 

Fair value of asset less selling costs

 

Appraised value

$220 to $386

 

 

  

 

Selling Costs

 

6%

Total

$

16,220

 

  

 

  

 

  

(a)Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individual properties.
(b)The carrying value of premises held for sale was $0.0 million as of March 31, 2021.

(in thousands, except ratios)

    

Fair Value Dec 31, 2020

    

Valuation Techniques

    

Unobservable Inputs

    

Range (Weighted Average)(a)

Assets

Individually evaluated loans

$

6,128

Fair value of collateral-appraised value

Loss severity

0% to 70%

Appraised value

$0 to $1730

Individually evaluated loans

 

2,618

Discount cash flow

Discount rate

 

3.50% to 9.50%

Cash flows

$19 to $953

Capitalized servicing rights

 

3,605

Discounted cash flow

Constant prepayment rate (CPR)

 

18.53%

Discount rate

 

10.05%

Premises held for sale

 

962

Fair value of asset less selling costs

Appraised value

 

$220 to $386

Selling Costs

 

6%

Total

$

13,313

(a)Where dollar amounts are disclosed, the amounts represent the lowest and highest fair value of the respective assets in the population except for adjustments for market/property conditions, which represents the range of adjustments to individual properties.
Summary of Estimated Fair Values, and Related Carrying Amounts, of Financial Instruments

March 31, 2021

Carrying

Fair

(in thousands)

    

Amount

    

Value

    

Level 1

    

Level 2

    

Level 3

Financial Assets

 

  

 

  

 

  

 

  

 

  

Cash and cash equivalents

$

223,512

$

223,512

$

223,512

$

$

Securities available for sale

 

626,403

 

626,403

 

 

626,403

 

FHLB stock

 

14,826

 

14,826

 

 

14,826

 

Loans held for sale

10,148

10,148

10,148

Net loans

 

2,527,411

 

2,518,606

 

 

 

2,518,606

Accrued interest receivable

 

3,688

 

3,668

 

 

3,668

 

Cash surrender value of bank-owned life insurance policies

 

78,388

 

78,388

 

 

78,388

 

Derivative assets

 

15,472

 

15,472

 

 

15,426

 

46

Financial Liabilities

 

  

 

  

 

  

 

  

 

  

Non-maturity deposits

$

2,273,906

$

2,274,973

$

$

2,274,973

$

Time deposits

638,436

636,670

636,670

Securities sold under agreements to repurchase

24,276

24,276

24,276

FHLB advances

 

267,934

 

271,622

 

 

271,622

 

Subordinated borrowings

 

60,003

 

57,133

 

 

57,133

 

Derivative liabilities

 

16,890

 

16,890

 

 

16,805

 

85

December 31, 2020

Carrying

Fair

(in thousands)

    

Amount

    

Value

    

Level 1

    

Level 2

    

Level 3

Financial Assets

 

  

 

  

 

  

 

  

 

  

Cash and cash equivalents

$

226,007

$

226,007

$

226,007

$

$

Securities available for sale

 

585,046

 

585,046

 

 

585,046

 

FHLB stock

 

14,036

 

14,036

 

 

14,036

 

Loans held for sale

23,988

24,163

24,163

Net loans

 

2,543,803

 

2,547,970

 

 

 

2,547,970

Accrued interest receivable

 

2,964

 

2,964

 

 

2,964

 

Cash surrender value of bank-owned life insurance policies

 

77,870

 

77,870

 

 

77,870

 

Derivative assets

 

28,706

 

28,706

 

 

28,684

 

22

Financial Liabilities

 

  

 

  

 

  

 

  

 

  

Non-maturity deposits

$

2,207,854

$

2,122,222

$

$

2,122,222

$

Time deposits

698,361

694,700

694,700

Short-term other borrowings

 

27,779

 

27,779

 

 

27,779

 

FHLB advances

 

248,283

 

252,698

 

 

252,698

 

Subordinated borrowings

 

59,961

 

57,091

 

 

57,091

 

Derivative liabilities

 

28,654

 

28,654

 

 

28,559

 

95