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Fair Value Measurement
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurement

(13) Fair Value Measurement

The Company uses a fair value hierarchy to measure fair value. This hierarchy describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices for identical assets in active markets that are identifiable on the measurement date; Level 2: Significant other observable inputs, such as quoted prices for similar assets, quoted prices in markets that are not active and other inputs that are observable or can be corroborated by observable market data; and Level 3: Significant unobservable inputs that reflect the Company’s own view about the assumptions that market participants would use in pricing an asset.

Debt securities: The fair values of securities available-for-sale are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

Equity securities: The Company’s equity securities are not actively traded in an open market. The fair value of these equity securities available-for-sale not actively traded in an open market is determined by using market data inputs for similar securities that are observable (Level 2 inputs).

The fair value of the swap asset/liability: The fair value of the swap asset and liability is based on an external derivative model using data inputs based on similar transactions as of the valuation date and classified Level 2. The changes in fair value of these assets/liabilities had no impact on net income or comprehensive income.

 

 

 

Assets and liabilities measured at fair value are summarized in the tables below.

 

 

Fair Value Measurements at September 30, 2024 Using:

 

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Assets measured at fair value on a recurring basis:

 

 

 

 

 

 

 

 

 

Securities available-for-sale

 

 

 

 

 

 

 

 

 

U.S. Treasury securities and obligations of U.S.
   Government agencies

 

$

—

 

 

$

69,198

 

 

$

—

 

Obligations of states and political subdivisions

 

 

 

 

 

337,805

 

 

 

 

Mortgage-backed securities in government sponsored
   entities

 

 

—

 

 

 

219,785

 

 

 

—

 

Total securities available-for-sale

 

 

—

 

 

$

626,788

 

 

 

—

 

Equity securities

 

 

—

 

 

 

2,325

 

 

 

—

 

Swap asset

 

 

—

 

 

 

8,196

 

 

 

—

 

Liabilities measured at fair value on a recurring
   basis:

 

 

 

 

 

 

 

 

 

Swap liability

 

$

—

 

 

$

8,196

 

 

$

—

 

 

 

 

 

Fair Value Measurements at December 31, 2023 Using:

 

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Assets measured at fair value on a recurring basis:

 

 

 

 

 

 

 

 

 

Securities available-for-sale

 

 

 

 

 

 

 

 

 

U.S. Treasury securities and obligations of U.S.
   Government agencies

 

$

—

 

 

$

67,658

 

 

$

—

 

Obligations of states and political subdivisions

 

 

—

 

 

 

338,599

 

 

 

—

 

Mortgage-backed securities in government
   sponsored entities

 

 

—

 

 

 

212,015

 

 

 

—

 

Total securities available-for-sale

 

 

—

 

 

 

618,272

 

 

 

—

 

Equity securities

 

 

—

 

 

 

2,169

 

 

 

—

 

Swap asset

 

 

—

 

 

 

12,481

 

 

 

—

 

Liabilities measured at fair value on a recurring
   basis:

 

 

 

 

 

 

 

 

 

Swap liability

 

$

—

 

 

$

12,481

 

 

$

—

 

 

 

 

 

The carrying amount and fair values of financial instruments not measured at fair value on a recurring or nonrecurring basis at September 30, 2024 were as follows:

September 30, 2024

 

Carrying
Amount

 

 

Total
Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from financial institutions

 

$

74,662

 

 

$

74,662

 

 

$

74,662

 

 

$

—

 

 

$

—

 

Investments in time deposits

 

 

1,450

 

 

 

1,455

 

 

 

—

 

 

 

1,455

 

 

 

—

 

Other securities

 

 

32,633

 

 

 

32,633

 

 

 

32,633

 

 

 

—

 

 

 

—

 

Loans, held for sale

 

 

8,299

 

 

 

8,299

 

 

 

8,299

 

 

 

—

 

 

 

—

 

Loans, net of allowance

 

 

3,002,678

 

 

 

2,897,584

 

 

 

—

 

 

 

—

 

 

 

2,897,584

 

Accrued interest receivable

 

 

13,614

 

 

 

13,614

 

 

 

13,614

 

 

 

—

 

 

 

—

 

Mortgage Servicing Rights

 

 

2,939

 

 

 

2,939

 

 

 

 

 

 

 

 

 

2,939

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonmaturing deposits

 

 

2,218,420

 

 

 

2,218,420

 

 

 

2,218,420

 

 

 

—

 

 

 

—

 

Time deposits

 

 

1,005,312

 

 

 

1,006,317

 

 

 

—

 

 

 

—

 

 

 

1,006,317

 

Short-term FHLB advances

 

 

287,047

 

 

 

287,046

 

 

 

287,046

 

 

 

—

 

 

 

—

 

Long-term FHLB advances

 

 

1,598

 

 

 

1,544

 

 

 

—

 

 

 

—

 

 

 

1,544

 

Subordinated debentures

 

 

104,067

 

 

 

98,694

 

 

 

—

 

 

 

—

 

 

 

98,694

 

Other borrowings

 

 

6,319

 

 

 

6,319

 

 

 

—

 

 

 

—

 

 

 

6,319

 

Accrued interest payable

 

 

15,163

 

 

 

15,163

 

 

 

15,163

 

 

 

—

 

 

 

—

 

The carrying amount and fair values of financial instruments not measured at fair value on a recurring or nonrecurring basis at December 31, 2023 were as follows:

 

December 31, 2023

 

Carrying
Amount

 

 

Total
Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from financial institutions

 

$

60,406

 

 

$

60,406

 

 

$

60,406

 

 

$

—

 

 

$

—

 

Investments in time deposits

 

$

1,225

 

 

 

1,215

 

 

 

—

 

 

 

1,215

 

 

 

—

 

Other securities

 

 

29,998

 

 

 

29,998

 

 

 

29,998

 

 

 

—

 

 

 

—

 

Loans, held for sale

 

 

1,725

 

 

 

1,725

 

 

 

1,725

 

 

 

—

 

 

 

—

 

Loans, net of allowance

 

 

2,824,568

 

 

 

2,679,988

 

 

 

—

 

 

 

—

 

 

 

2,679,988

 

Accrued interest receivable

 

 

12,819

 

 

 

12,819

 

 

 

12,819

 

 

 

—

 

 

 

—

 

Mortgage Servicing Rights

 

 

3,018

 

 

 

3,018

 

 

 

—

 

 

 

—

 

 

 

3,018

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonmaturing deposits

 

 

2,084,216

 

 

 

2,084,216

 

 

 

2,084,216

 

 

 

—

 

 

 

—

 

Time deposits

 

 

900,812

 

 

 

899,443

 

 

 

—

 

 

 

—

 

 

 

899,443

 

Short-term FHLB advances

 

 

338,000

 

 

 

337,267

 

 

 

337,267

 

 

 

—

 

 

 

—

 

Long-term FHLB advances

 

 

2,392

 

 

 

2,419

 

 

 

—

 

 

 

—

 

 

 

2,419

 

Subordinated debentures

 

 

103,943

 

 

 

101,563

 

 

 

—

 

 

 

—

 

 

 

101,563

 

Other borrowings

 

 

9,859

 

 

 

9,859

 

 

 

—

 

 

 

—

 

 

 

9,859

 

Accrued interest payable

 

 

9,525

 

 

 

9,525

 

 

 

9,525

 

 

 

—

 

 

 

—