Fair Value of Financial Instruments (Tables)
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3 Months Ended |
Mar. 31, 2023 |
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| Fair Value Disclosures [Abstract] |
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| Fair Value, Assets Measured on Recurring Basis |
The following tables present the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at March 31, 2023 and December 31, 2022.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2023
Fair Value Measurements Using | | (in thousands) | | Fair
Value | | Quoted Prices
in Active Markets for Identical Assets
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | | U.S. Government-sponsored agencies | | $ | 37,047 | | | $ | — | | | $ | 37,047 | | | $ | — | | | Municipal securities | | 68,636 | | | — | | | 68,636 | | | — | | | Agency mortgage-backed securities - residential | | 216,752 | | | — | | | 216,752 | | | — | | | Agency mortgage-backed securities - commercial | | 15,530 | | | — | | | 15,530 | | | — | | | Private label mortgage-backed securities - residential | | 10,275 | | | — | | | 10,275 | | | — | | Asset-backed securities | | 4,998 | | | — | | | 4,998 | | | — | | | Corporate securities | | 42,595 | | | — | | | 42,595 | | | — | | | | | | | | | | | | Total available-for-sale securities | | $ | 395,833 | | | $ | — | | | $ | 395,833 | | | $ | — | | | Loans held-for-sale (mandatory pricing agreements) | | 2,209 | | | — | | | 2,209 | | | — | | | Servicing asset | | 7,312 | | | — | | | — | | | 7,312 | | | Interest rate swap assets | | 6,089 | | | — | | | 6,089 | | | — | | | | | | | | | | | | Forward contracts | | (22) | | | (22) | | | — | | | — | | | IRLCs | | — | | | — | | | — | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022
Fair Value Measurements Using | | (in thousands) | | Fair
Value | | Quoted Prices
in Active Markets for Identical Assets
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | | U.S. Government-sponsored agencies | | $ | 33,809 | | | $ | — | | | $ | 33,809 | | | $ | — | | | Municipal securities | | 67,276 | | | — | | | 67,276 | | | — | | | Agency mortgage-backed securities - residential | | 215,092 | | | — | | | 215,092 | | | — | | | Agency mortgage-backed securities - commercial | | 15,840 | | | — | | | 15,840 | | | — | | | Private label mortgage-backed securities - residential | | 10,455 | | | — | | | 10,455 | | | — | | Asset-backed securities | | 4,960 | | | — | | | 4,960 | | | — | | | Corporate securities | | 42,952 | | | — | | | 42,952 | | | — | | | | | | | | | | | | Total available-for-sale securities | | $ | 390,384 | | | $ | — | | | $ | 390,384 | | | $ | — | | | Loans held-for-sale (mandatory pricing agreements) | | 9,110 | | | — | | | 9,110 | | | — | | | Servicing asset | | 6,255 | | | — | | | — | | | 6,255 | | | | | | | | | | | | Interest rate swap agreements | | 8,645 | | | — | | | 8,645 | | | — | | | Forward contracts | | 97 | | | 97 | | | — | | | — | | | IRLCs | | 133 | | | — | | | — | | | 133 | |
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| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation |
The following tables reconcile the beginning and ending balances of recurring fair value measurements recognized in the accompanying condensed consolidated balance sheets using significant unobservable (Level 3) inputs for the three months ended March 31, 2023 and 2022. | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | (in thousands) | | | | Servicing Asset | | Interest Rate Lock
Commitments | | Balance, January 1, 2023 | | | | $ | 6,255 | | | $ | 133 | | | Total realized gains | | | | | | | | Additions: | | | | | | | | Originated and purchased servicing | | | | 1,112 | | | — | | | Subtractions: | | | | | | | | Paydowns | | | | (339) | | | — | | | Change in fair value | | | | 284 | | | (133) | | | | | | | | | | Balance, March 31, 2023 | | | | $ | 7,312 | | | $ | — | | | | | | | | | | Balance as of January 1, 2022 | | | | $ | 4,702 | | | $ | 718 | | | Total realized gains | | | | | | | | Additions: | | | | | | | | Originated and purchased servicing | | | | 844 | | | — | | | Subtractions: | | | | | | | | Paydowns | | | | (256) | | | — | | | Change in fair value | | | | (41) | | | (806) | | | Balance, March 31, 2022 | | | | $ | 5,249 | | | $ | (88) | |
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| Schedule Of Impaired Loans, Including Valuation Allowance, Fair Value, Unobservable Inputs Reconciliation |
The following table presents the fair value measurements of assets and liabilities recognized in the accompanying condensed consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurement falls at March 31, 2023 and December 31, 2022.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2023 | | (in thousands) | | | | Fair Value Measurements Using | | | | Fair
Value | | Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | | Collateral dependent loans | | $ | 3,676 | | | $ | — | | | $ | — | | | $ | 3,676 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | (in thousands) | | | | Fair Value Measurements Using | | | | Fair
Value | | Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | | Impaired loans | | $ | 1,164 | | | $ | — | | | $ | — | | | $ | 1,164 | |
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| Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques |
The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (dollars in thousands) | | Fair Value at
March 31, 2023 | | Valuation
Technique | | Significant Unobservable
Inputs | | Range | | Weighted-Average Range | | | | | | | | | | | | | Collateral dependent loans | | $ | 3,676 | | | Fair value of collateral | | Discount for type of property and current market conditions | | 4% - 25% | | 12% | | | | | | | | | | | | | Servicing asset | | 7,312 | | | Discounted cash flow | | Prepayment speeds
Discount rate | | 0% - 25%
14% | | 11.5%
14% | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (dollars in thousands) | | Fair Value at
December 31, 2022 | | Valuation
Technique | | Significant Unobservable
Inputs | | Range | | Weighted-Average Range | | Impaired loans | | $ | 1,164 | | | Fair value of collateral | | Discount for type of property and current market conditions | | 0% - 25% | | 20% | | | | | | | | | | | | | IRLCs | | 133 | | | Discounted cash flow | | Loan closing rates | | 31% - 100% | | 89% | | Servicing asset | | 6,255 | | | Discounted cash flow | | Prepayment speeds
Discount rate | | 0% - 25%
14% | | 14.6%
14% | | | | | | | | | | | |
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| Fair Value, by Balance Sheet Grouping |
The following tables present the carrying value and estimated fair value of all financial assets and liabilities that are not measured at fair value on a recurring basis at March 31, 2023 and December 31, 2022. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2023
Fair Value Measurements Using | | (in thousands) | | Carrying
Amount | | Fair Value | | Quoted Prices
In Active
Market for
Identical Assets
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | | Cash and cash equivalents | | $ | 303,972 | | | $ | 303,972 | | | $ | 303,972 | | | $ | — | | | $ | — | | | | | | | | | | | | | | Securities held-to-maturity, net | | 210,761 | | | 192,463 | | | — | | | 192,463 | | | — | | | Loans held-for-sale (best efforts pricing agreements) | | 15,935 | | | 15,935 | | | — | | | 15,935 | | | — | | | Net loans | | 3,570,363 | | | 3,378,228 | | | — | | | — | | | 3,378,228 | | | Accrued interest receivable | | 22,322 | | | 22,322 | | | 22,322 | | | — | | | — | | | Federal Home Loan Bank of Indianapolis stock | | 28,350 | | | 28,350 | | | — | | | 28,350 | | | — | | | Deposits | | 3,622,290 | | | 3,589,180 | | | 1,778,865 | | | — | | | 1,810,315 | | | Advances from Federal Home Loan Bank | | 614,929 | | | 601,563 | | | — | | | 601,563 | | | — | | | Subordinated debt | | 104,608 | | | 101,550 | | | 31,450 | | | 70,100 | | | — | | | Accrued interest payable | | 2,592 | | | 2,592 | | | 2,592 | | | — | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022
Fair Value Measurements Using | | (in thousands) | | Carrying
Amount | | Fair Value | | Quoted Prices
In Active
Market for
Identical
Assets
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | | Cash and cash equivalents | | $ | 256,552 | | | $ | 256,552 | | | $ | 256,552 | | | $ | — | | | $ | — | | | | | | | | | | | | | | Securities held-to-maturity | | 189,168 | | | 168,483 | | | — | | | 168,483 | | | — | | | Loans held-for-sale (best efforts pricing agreements) | | 12,401 | | | 12,401 | | | — | | | 12,401 | | | — | | | Net loans | | 3,467,664 | | | 3,225,845 | | | — | | | — | | | 3,225,845 | | | Accrued interest receivable | | 21,069 | | | 21,069 | | | 21,069 | | | — | | | — | | | Federal Home Loan Bank of Indianapolis stock | | 28,350 | | | 28,350 | | | — | | | 28,350 | | | — | | | Deposits | | 3,441,245 | | | 3,415,390 | | | 1,974,344 | | | — | | | 1,441,046 | | | Advances from Federal Home Loan Bank | | 614,928 | | | 596,455 | | | — | | | 596,455 | | | — | | | Subordinated debt | | 104,532 | | | 102,669 | | | 32,560 | | | 70,109 | | | — | | | Accrued interest payable | | 2,913 | | | 2,913 | | | 2,913 | | | — | | | — | |
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