XML 28 R18.htm IDEA: XBRL DOCUMENT
v3.23.3

Fair Value Measurements | 9 Months Ended
--- | ---
Sep. 30, 2023
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements Management uses its best judgment in estimating the fair value of the Corporation’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Corporation could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective reporting dates and have not been reevaluated or updated for purposes of these consolidated financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period end. Fair value measurement and disclosure guidance defines fair value as the price that would be received to sell the asset or transfer the liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. Fair value measurement and disclosure guidance provides a list of factors that a reporting entity should evaluate to determine whether there has been a significant decrease in the volume and level of activity for the asset or liability in relation to normal market activity for the asset or liability. When the reporting entity concludes there has been a significant decrease in the volume and level of activity for the asset or liability, further analysis of the information from that market is needed and significant adjustments to the related prices may be necessary to estimate fair value in accordance with fair value measurement and disclosure guidance. This guidance further clarifies that when there has been a significant decrease in the volume and level of activity for the asset or liability, some transactions may not be orderly. In those situations, the entity must evaluate the weight of the evidence to determine whether the transaction is orderly. The guidance provides a list of circumstances that may indicate that a transaction is not orderly. A transaction price that is not associated with an orderly transaction is given little, if any, weight when estimating fair value. Fair value measurement and disclosure guidance establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). An asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. For assets measured at fair value, the fair value measurements by level within the fair value hierarchy, and the basis of measurement used at September 30, 2023, and December 31, 2022, are as follows:
|  |  |  | September 30, 2023
In thousands |  | Basis |  | Total |  | Level 1 |  | Level 2 |  | Level 3
U.S. Government and agencies |  |  |  | $ | 196,775 |  |  | $ | — |  |  | $ | 196,775 |  |  | $ | — |
Mortgage-backed securities |  |  |  | 223,725 |  |  | — |  |  | 223,725 |  |  | — |
Corporate bonds |  |  |  | 15,059 |  |  | — |  |  | 15,059 |  |  | — |
Total securities available for sale |  | Recurring |  | $ | 435,559 |  |  | $ | — |  |  | $ | 435,559 |  |  | $ | — |
Equity securities with readily determinable fair values |  | Recurring |  | $ | 888 |  |  | $ | 888 |  |  | $ | — |  |  | $ | — |
Individually evaluated loans |  | Nonrecurring |  | $ | 242 |  |  | $ | — |  |  | $ | — |  |  | $ | 242 |
|  |  |  | December 31, 2022
In thousands |  | Basis |  | Total |  | Level 1 |  | Level 2 |  | Level 3
U.S. Government and agencies |  |  |  | $ | 210,999 |  |  | $ | — |  |  | $ | 210,999 |  |  | $ | — |
Mortgage-backed securities |  |  |  | 295,718 |  |  | — |  |  | 295,718 |  |  | — |
State and municipal |  |  |  | 15,235 |  |  | — |  |  | 15,235 |  |  | — |
Corporate bonds |  |  |  | 31,602 |  |  | — |  |  | 31,602 |  |  | — |
Total securities available for sale |  | Recurring |  | $ | 553,554 |  |  | $ | — |  |  | $ | 553,554 |  |  | $ | — |
Equity securities with readily determinable fair values |  | Recurring |  | $ | 1,719 |  |  | $ | 1,719 |  |  | $ | — |  |  | $ | — |
Individually evaluated loans |  | Nonrecurring |  | $ | 3,773 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,773 |
The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized Level 3 inputs to determine fair value:
|  | Quantitative Information about Level 3 Fair Value Measurements
Dollars in thousands |  | Fair Value Estimate |  | Valuation Technique |  | Unobservable Input |  |  | Range |  | Weighted Average
September 30, 2023 |  |  |  |  |  |  |  |  |  |  |
Individually evaluated loans |  | $ | 242 |  |  | Appraisal of collateral | (a) | Appraisal adjustments | (b) |  | (16) – (100)% |  | (91)%
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |
Individually evaluated loans |  | $ | 3,773 |  |  | Appraisal of collateral | (a) | Appraisal adjustments | (b) |  | (10) – (50)% |  | (48)%
(a) Fair value is generally determined through management’s estimate or independent third-party appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not observable. (b) Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percentage of the appraisal. Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual offers or sales contracts received, and/or age of the appraisal. The following information should not be interpreted as an estimate of the fair value of the entire Corporation since a fair value calculation is only provided for a limited portion of the Corporation’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Corporation’s disclosures and those of other companies may not be meaningful. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments:
|  | September 30, 2023
In thousands |  | Carrying Amount |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Financial assets: |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 22,786 |  |  | $ | 22,786 |  |  | $ | 6,448 |  |  | $ | 16,338 |  |  | $ | — |
Interest-bearing deposits with banks |  | 41,255 |  |  | 41,255 |  |  | 41,255 |  |  | — |  |  | — |
Equity securities with readily determinable fair values |  | 888 |  |  | 888 |  |  | 888 |  |  | — |  |  | — |
Debt securities available for sale |  | 435,559 |  |  | 435,559 |  |  | — |  |  | 435,559 |  |  | — |
Securities held to maturity |  | 64,616 |  |  | 53,843 |  |  | — |  |  | 53,843 |  |  | — |
Loans, net of allowance for credit losses |  | 1,596,702 |  |  | 1,526,341 |  |  | — |  |  | — |  |  | 1,526,341 |
Accrued interest receivable |  | 7,727 |  |  | 7,727 |  |  | — |  |  | 7,727 |  |  | — |
Restricted investment in bank stocks |  | 5,477 |  |  | N/A |  | — |  |  | N/A |  | — |
Financial liabilities: |  |  |  |  |  |  |  |  |  |
Demand deposits and savings |  | 1,738,090 |  |  | 1,556,838 |  |  | — |  |  | 1,556,838 |  |  | — |
Time deposits |  | 213,269 |  |  | 199,052 |  |  | — |  |  | 199,052 |  |  | — |
Short-term borrowings |  | 33,106 |  |  | 33,861 |  |  | — |  |  | 33,861 |  |  | — |
Long-term FHLB advances |  | 100,000 |  |  | 99,389 |  |  | — |  |  | 99,389 |  |  | — |
Trust preferred and subordinated debt |  | 20,282 |  |  | 18,037 |  |  | — |  |  | 18,037 |  |  | — |
Accrued interest payable |  | 448 |  |  | 448 |  |  | — |  |  | 448 |  |  | — |
The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments:
|  | December 31, 2022
In thousands |  | Carrying Amount |  | Fair Value |  | Level 1 |  | Level 2 |  | Level 3
Financial assets: |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 40,067 |  |  | $ | 40,067 |  |  | $ | 6,977 |  |  | $ | 33,090 |  |  | $ | — |
Interest-bearing deposits with banks |  | 128,094 |  |  | 128,094 |  |  | 128,094 |  |  | — |  |  | — |
Equity securities with readily determinable fair values |  | 1,719 |  |  | 1,719 |  |  | 1,719 |  |  | — |  |  | — |
Debt securities available for sale |  | 553,554 |  |  | 553,554 |  |  | — |  |  | 553,554 |  |  | — |
Securities held to maturity |  | 64,977 |  |  | 58,078 |  |  | — |  |  | 58,078 |  |  | — |
Loans held for sale |  | 123 |  |  | 123 |  |  | — |  |  | 123 |  |  | — |
Loans, less allowance for credit losses |  | 1,520,749 |  |  | 1,458,556 |  |  | — |  |  | — |  |  | 1,458,556 |
Accrued interest receivable |  | 6,915 |  |  | 6,915 |  |  | — |  |  | 6,915 |  |  | — |
Restricted investment in bank stocks |  | 1,629 |  |  | 1,629 |  |  | — |  |  | 1,629 |  |  | — |
Financial liabilities: |  |  |  |  |  |  |  |  |  |
Demand deposits and savings |  | 1,905,845 |  |  | 1,905,845 |  |  | — |  |  | 1,905,845 |  |  | — |
Time deposits |  | 293,130 |  |  | 276,182 |  |  | — |  |  | 276,182 |  |  | — |
Short-term borrowings |  | 41,954 |  |  | 41,954 |  |  | — |  |  | 41,954 |  |  | — |
Trust preferred and subordinated debt |  | 21,000 |  |  | 18,648 |  |  | — |  |  | 18,648 |  |  | — |
Accrued interest payable |  | 51 |  |  | 51 |  |  | — |  |  | 51 |  |  | — |

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration