Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2023

Fair Value Measurements

Fair Value of Financial Instruments

Note 23 Fair Value of Financial Instruments

The fair value of a financial instrument is the amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is determined based upon quoted market prices to the extent possible; however, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques that may be significantly impacted by the assumptions used, including the discount rate and estimates of future cash flows. Changes in any of these assumptions could significantly affect the fair value estimates. The fair value of the financial instruments listed below does not reflect a premium or discount that could result from offering all of the Company’s holdings of financial instruments at one time, nor does it reflect the underlying value of the Company, as ASC Topic 825 excludes certain financial instruments and all non-financial instruments from its disclosure requirements. The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies and are based on the exit price concept within ASC Topic 825 and applied to this disclosure on a prospective basis. Considerable judgment is required to interpret market data in order to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange.

The fair value of financial instruments at December 31, 2023 and 2022 are set forth below:

	Level in fair value	December 31, 2023				December 31, 2022
	measurement	Carrying		Estimated		Carrying		Estimated
	hierarchy	amount		fair value		amount		fair value
ASSETS
Cash and cash equivalents	Level 1	$	190,826	$	190,826	$	195,505	$	195,505
U.S. Treasury securities - AFS	Level 1		73,044		73,044		71,388		71,388
U.S. Treasury securities - HTM	Level 1		49,338		48,334		49,045		47,629
Mortgage-backed securities—residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises available-for-sale	Level 2		201,809		201,809		226,131		226,131
Mortgage-backed securities—other residential mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored enterprises available-for-sale	Level 2		351,242		351,242		405,926		405,926
Municipal securities available-for-sale	Level 2		79		79		153		153
Corporate debt available-for-sale	Level 2		1,843		1,843		1,920		1,920
Other available-for-sale securities	Level 3		812		812		771		771
Mortgage-backed securities—residential mortgage pass-through securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity	Level 2		299,337		265,011		339,815		298,816
Mortgage-backed securities—other residential mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored enterprises held-to-maturity	Level 2		236,377		190,983		262,667		213,479
FHLB and FRB stock	Level 2		40,890		40,890		38,390		38,390
Loans receivable	Level 3		7,698,758		7,411,687		7,220,469		6,964,107
Loans held for sale	Level 2		18,854		18,854		22,767		22,767
Accrued interest receivable	Level 2		44,944		44,944		34,587		34,587
Interest rate swap derivatives	Level 2		37,408		37,408		45,046		45,046
Mortgage banking derivatives	Level 3		287		287		407		407
LIABILITIES
Deposit transaction accounts	Level 2		7,208,421		7,208,421		6,999,226		6,999,226
Time deposits	Level 2		981,970		972,793		873,400		845,688
Securities sold under agreements to repurchase	Level 2		19,627		19,627		20,214		20,214
Long-term debt	Level 2		55,000		43,760		55,000		52,430
Federal Home Loan Bank advances	Level 2		340,000		340,000		385,000		385,000
Accrued interest payable	Level 2		12,239		12,239		3,201		3,201
Interest rate swap derivatives	Level 2		15,284		15,284		12,589		12,589
Mortgage banking derivatives	Level 3		115		115		278		278