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FAIR VALUE MEASUREMENTS (Tables)
12 Months Ended
Dec. 31, 2021
FAIR VALUE MEASUREMENTS  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

December 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

$

$

236,117

$

$

236,117

US Government agency

 

 

79,637

 

 

79,637

Private label

 

 

68,695

 

 

68,695

Obligations of states and political subdivisions thereof

 

 

141,776

 

 

141,776

Corporate bonds

 

 

92,051

 

 

92,051

Loans held for sale

5,523

5,523

Derivative assets

 

 

13,850

 

298

 

14,148

Derivative liabilities

 

 

(15,257)

 

 

(15,257)

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(1)

 

 

25,895

 

22

 

25,917

Derivative liabilities(1)

 

 

(31,348)

 

(95)

 

(31,443)

(1)Prior period has been revised, see Note 1 Summary of Significant Accounting Policies – Revision of Previously Issued Financial Statements.
Schedule of Changes in Level 3 Assets Measured on a Recurring Basis

Assets (Liabilities)

Interest Rate Lock

Forward

(in thousands)

    

Commitments

    

Commitments

Year Ended December 31, 2021

 

  

 

  

Balance at beginning of period

$

22

$

(95)

Realized gain recognized in non-interest income

 

261

 

110

Balance at end of period

$

283

$

15

Year Ended December 31, 2020

 

  

 

  

Balance at beginning of period

$

59

$

(84)

Realized loss recognized in non-interest income

 

(37)

 

(11)

Balance at end of period

$

22

$

(95)

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

Assets (Liabilities)

Interest Rate Lock

Forward

(in thousands)

    

Commitments

    

Commitments

Year Ended December 31, 2021

 

  

 

  

Balance at beginning of period

$

22

$

(95)

Realized gain recognized in non-interest income

 

261

 

110

Balance at end of period

$

283

$

15

Year Ended December 31, 2020

 

  

 

  

Balance at beginning of period

$

59

$

(84)

Realized loss recognized in non-interest income

 

(37)

 

(11)

Balance at end of period

$

22

$

(95)

Schedule of Quantitative Information, Valuation, Recurring

    

Fair Value

Fair Value

    

    

Significant

 

December 31,

December 31,

Valuation

Unobservable

Unobservable

(in thousands, except ratios)

    

 2021

    

 2020

Techniques

    

Inputs

    

Input Value

Assets (Liabilities)

  

  

  

  

  

 

Interest Rate Lock Commitment

 

$

283

$

22

Pull-through Rate Analysis

 

Closing Ratio

 

85

%

 

 

Pricing Model

Origination Costs, per loan

$

1.7

Discount Cash Flows

Mortgage Servicing Asset

1.0

%

 

Forward Commitments

 

15

 

(95)

Quoted prices for similar loans in active markets

 

Freddie Mac pricing system

 

$99.8 to $103.2

Total

$

298

$

(73)

  

 

  

 

  

Summary of Applicable Non-Recurring Fair Value Measurements

December 31, 2021

December 31, 2020

December 31, 2021

Fair Value Measurement Date as of December 31, 2021

Level 3

Level 3

Total

Level 3

(in thousands)

    

Inputs

    

Inputs

    

Gains (Losses)

    

Inputs

Assets

  

  

  

  

Individually evaluated loans

$

8,324

$

8,746

$

(422)

December 2021

Capitalized servicing rights

 

5,263

3,605

 

1,658

 

December 2021

Premises held for sale

 

226

962

 

(736)

 

December 2021

Total

$

13,813

$

13,313

$

500

 

  

Schedule of Quantitative Information, Valuation, Non-recurring

 

(in thousands, except ratios)

    

Fair Value December 31, 2021

    

Valuation Techniques

    

Unobservable Inputs

    

Range (Weighted Average)(a)

 

Assets

 

  

 

  

 

  

  

Individually evaluated loans

$

4,780

 

Fair value of collateral-appraised value

 

Loss severity

10% to 70%

 

Appraised value

$71 to $1,792

Individually evaluated loans

 

3,544

 

Discount cash flow

 

Discount rate

 

2.88% to 9.50%

 

Cash flows

$6 to $931

Capitalized servicing rights

 

5,263

 

Discounted cash flow

 

Constant prepayment rate (CPR)

 

12.47%

 

  

 

  

 

Discount rate

 

9.53%

Premises held for sale

 

226

 

Fair value of asset less selling costs

 

Appraised value

$240

 

 

  

 

Selling Costs

 

6%

Total

$

13,813

 

  

 

  

 

  

(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 individuals properties.

(in thousands, except ratios)

    

Fair Value December 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 $1,730

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 individuals properties.
Summary of Estimated Fair Values, and Related Carrying Amounts, of Financial Instruments

December 31, 2021

Carrying

Fair

(in thousands)

    

Amount

    

Value

    

Level 1

    

Level 2

    

Level 3

Financial Assets

 

  

 

  

 

  

 

  

 

  

Cash and cash equivalents

$

250,389

$

250,389

$

250,389

$

$

Securities available for sale

 

618,276

 

618,276

 

 

618,276

 

FHLB stock

 

7,384

 

7,384

 

 

7,384

 

Loans held for sale

5,523

5,523

5,523

Net loans

 

2,509,192

 

2,442,741

 

 

 

2,442,741

Accrued interest receivable

 

2,712

 

2,712

 

 

2,712

 

Cash surrender value of bank-owned life insurance policies

 

79,020

 

79,020

 

 

79,020

 

Derivative assets

 

14,148

 

14,148

 

 

13,850

 

298

Financial Liabilities

 

  

 

  

 

  

 

  

 

  

Non-maturity deposits

$

2,623,012

$

2,853,000

$

$

2,853,000

$

Time deposits

425,532

424,000

424,000

Securities sold under agreements to repurchase

19,802

19,802

19,802

FHLB advances

 

98,598

 

98,439

 

 

98,439

 

Subordinated borrowings

 

60,124

 

61,884

 

 

61,884

 

Derivative liabilities

 

15,257

 

15,257

 

 

15,257

 

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(1)

 

25,895

 

25,895

 

 

25,917

 

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(1)

 

31,348

 

31,348

 

 

31,443

 

95

(1)Prior period has been revised, see Note 1 Summary of Significant Accounting Policies – Revision of Previously Issued Financial Statements.