XML 32 R22.htm IDEA: XBRL DOCUMENT
v3.23.3

Fair Value of Financial Instruments | 9 Months Ended
--- | ---
Sep. 30, 2023
Fair Value Disclosures [Abstract] |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate such value: Loans Fair values are estimated for portfolios with similar financial characteristics. Loans are segregated by type, such as commercial, real estate, and consumer. Each loan category is further segmented into fixed and variable interest rate categories. The fair value of loans, or exit price, is estimated by using the future value of discounted cash flows using comparable market rates for similar types of loan products and adjusted for market factors. The discount rates used are estimated using comparable market rates for similar types of loan products adjusted to be commensurate with the credit risk, overhead costs, and optionality of such instruments. Federal Funds Sold, Cash, and Due from Banks The carrying amounts of short-term federal funds sold, interest-earning deposits with banks, and cash and due from banks approximate fair value. Federal funds sold classified as short-term generally mature in 90 days or less. Certificates of Deposit in Other Banks Certificates of deposit are other investments made by the Company with other financial institutions that are carried at cost, which is equal to fair value. Cash Surrender Value - Life Insurance The fair value of Bank-owned life insurance approximates the carrying amount. Upon liquidation of these investments, the Company would receive the cash surrender value, which equals the carrying amount. Accrued Interest Receivable and Payable For accrued interest receivable and payable, the carrying amount is a reasonable estimate of fair value because of the short maturity for these financial instruments. Deposits The fair value of deposits with no stated maturity, such as non-interest-bearing demand, NOW accounts, savings, and money market, is equal to the amount payable on demand. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. Federal funds Purchased and Securities Sold Under Agreements to Repurchase For Federal funds purchased and securities sold under agreements to repurchase, the carrying amount is a reasonable estimate of fair value, as such instruments reprice in a short time period. Subordinated Notes and Other Borrowings The fair value of subordinated notes and other borrowings is based on the discounted value of contractual cash-flows. The discount rate is estimated using the rates currently offered for other borrowed money of similar remaining maturities. A summary of the carrying amounts and fair values of the Company’s financial instruments at September 30, 2023 and December 31, 2022 is as follows:
|  |  |  |  | September 30, 2023
|  |  |  |  | Fair Value Measurements
| September 30, 2023 |  | Quoted Prices in Active Markets for Identical Assets |  | Other Observable Inputs |  | Net Significant Unobservable Inputs
(in thousands) | Carrying amount |  | Fair value |  | (Level 1) |  | (Level 2) |  | (Level 3)
Assets: |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 17,793 |  |  | $ | 17,793 |  |  | $ | 17,793 |  |  | $ | — |  |  | $ | — |
Federal funds sold and overnight interest-bearing deposits | 10,061 |  | 10,061 |  | 10,061 |  | — |  | —
Certificates of deposit in other banks | 735 |  | 735 |  | 735 |  | — |  | —
Available-for-sale securities | 233,516 |  | 233,516 |  | 4,868 |  | 228,648 |  | —
Other investment securities | 7,005 |  | 7,005 |  | 64 |  | 6,941 |  | —
Loans, net | 1,534,507 |  | 1,369,455 |  | — |  | — |  | 1,369,455
Loans held for sale | 3,006 |  | 3,006 |  | — |  | 3,006 |  | —
Cash surrender value - life insurance | 2,610 |  | 2,610 |  | — |  | 2,610 |  | —
Interest rate lock commitments | 45 |  | 45 |  | — |  | — |  | 45
Forward sale commitments | 18 |  | 18 |  | — |  | 18 |  | —
Accrued interest receivable | 8,533 |  | 8,533 |  | 8,533 |  | — |  | —
Total | $ | 1,817,829 |  |  | $ | 1,652,777 |  |  | $ | 42,054 |  |  | $ | 241,223 |  |  | $ | 1,369,500 |
Liabilities: |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |
Non-interest bearing demand | $ | 425,105 |  |  | $ | 425,105 |  |  | $ | 425,105 |  |  | $ | — |  |  | $ | — |
Savings, interest checking and money market | 802,591 |  | 802,591 |  | 802,591 |  | — |  | —
Time deposits | 352,669 |  | 349,641 |  | — |  | — |  | 349,641
Federal funds purchased and securities sold under agreements to repurchase | 6,196 |  | 6,196 |  | 6,196 |  | — |  | —
Federal Home Loan Bank advances and other borrowings | 112,000 |  | 112,000 |  | — |  | 112,000 |  | —
Subordinated notes | 49,486 |  | 38,444 |  | — |  | 38,444 |  | —
Interest rate lock commitments | 2 |  | 2 |  | — |  | — |  | 2
Accrued interest payable | 1,851 |  | 1,851 |  | 1,851 |  | — |  | —
Total | $ | 1,749,900 |  |  | $ | 1,735,830 |  |  | $ | 1,235,743 |  |  | $ | 150,444 |  |  | $ | 349,643 |
|  |  |  |  | December 31, 2022
|  |  |  |  | Fair Value Measurements
| December 31, 2022 |  | Quoted Prices in Active Markets for Identical Assets |  | Other Observable Inputs |  | Net Significant Unobservable Inputs
(in thousands) | Carrying amount |  | Fair value |  | (Level 1) |  | (Level 2) |  | (Level 3)
Assets: |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 18,661 |  |  | $ | 18,661 |  |  | $ | 18,661 |  |  | $ | — |  |  | $ | — |
Federal funds sold and overnight interest-bearing deposits | 65,059 |  |  | 65,059 |  |  | 65,059 |  |  | — |  |  | — |
Certificates of deposit in other banks | 2,955 |  |  | 2,955 |  |  | 2,955 |  |  | — |  |  | — |
Available-for-sale securities | 250,747 |  |  | 250,747 |  |  | 2,152 |  |  | 248,595 |  |  | — |
Other investment securities | 6,353 |  |  | 6,353 |  |  | 46 |  |  | 6,307 |  |  | — |
Loans, net | 1,505,664 |  |  | 1,389,018 |  |  | — |  |  | — |  |  | 1,389,018 |
Loans held for sale | 591 |  |  | 591 |  |  | — |  |  | 591 |  |  | — |
Cash surrender value - life insurance | 2,567 |  |  | 2,567 |  |  | — |  |  | 2,567 |  |  | — |
Interest rate lock commitments | 20 |  |  | 20 |  |  | — |  |  | — |  |  | 20 |
Forward sale commitments | 3 |  |  | 3 |  |  | — |  |  | 3 |  |  | — |
Accrued interest receivable | 7,953 |  |  | 7,953 |  |  | 7,953 |  |  | — |  |  | — |
Total | $ | 1,860,573 |  |  | $ | 1,743,927 |  |  | $ | 96,826 |  |  | $ | 258,063 |  |  | $ | 1,389,038 |
Liabilities: |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |
Non-interest bearing demand | $ | 453,443 |  |  | $ | 453,443 |  |  | $ | 453,443 |  |  | $ | — |  |  | $ | — |
Savings, interest checking and money market | 923,602 |  |  | 923,602 |  |  | 923,602 |  |  | — |  |  | — |
Time deposits | 255,034 |  |  | 250,433 |  |  | — |  |  | — |  |  | 250,433 |
Federal funds purchased and securities sold under agreements to repurchase | 5,187 |  |  | 5,187 |  |  | 5,187 |  |  | — |  |  | — |
Federal Home Loan Bank advances and other borrowings | 98,000 |  |  | 98,000 |  |  | — |  |  | 98,000 |  |  | — |
Subordinated notes | 49,486 |  |  | 39,197 |  |  | — |  |  | 39,197 |  |  | — |
Interest rate lock commitments | 18 |  |  | 18 |  |  | — |  |  | — |  |  | 18 |
Forward sale commitments | 3 |  |  | 3 |  |  | — |  |  | 3 |  |  | — |
Accrued interest payable | 902 |  |  | 902 |  |  | 902 |  |  | — |  |  | — |
Total | $ | 1,785,675 |  |  | $ | 1,770,785 |  |  | $ | 1,383,134 |  |  | $ | 137,200 |  |  | $ | 250,451 |
Off-Balance Sheet Financial Instruments The fair value of commitments to extend credit and standby letters of credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the likelihood of the counterparties drawing on such financial instruments, and the present creditworthiness of such counterparties. The Company believes such commitments have been made on terms that are competitive in the markets in which it operates. Limitations The fair value estimates provided are made at a point in time based on market information and information about the financial instruments. Because no market exists for a portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the fair value estimates.

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 financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration