XML 43 R33.htm IDEA: XBRL DOCUMENT v3.23.1
Fair Value of Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
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 securities68,636 — 68,636 — 
Agency mortgage-backed securities - residential216,752 — 216,752 — 
Agency mortgage-backed securities - commercial15,530 — 15,530 — 
Private label mortgage-backed securities - residential10,275 — 10,275 — 
Asset-backed securities
4,998 — 4,998 — 
Corporate securities42,595 — 42,595 — 
Total available-for-sale securities$395,833 $— $395,833 $— 
Loans held-for-sale (mandatory pricing agreements)2,209 — 2,209 — 
Servicing asset7,312 — — 7,312 
Interest rate swap assets6,089 — 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 securities67,276 — 67,276 — 
Agency mortgage-backed securities - residential215,092 — 215,092 — 
Agency mortgage-backed securities - commercial15,840 — 15,840 — 
Private label mortgage-backed securities - residential10,455 — 10,455 — 
Asset-backed securities
4,960 — 4,960 — 
Corporate securities42,952 — 42,952 — 
Total available-for-sale securities$390,384 $— $390,384 $— 
Loans held-for-sale (mandatory pricing agreements)9,110 — 9,110 — 
Servicing asset6,255 — — 6,255 
Interest rate swap agreements8,645 — 8,645 — 
Forward contracts97 97 — — 
IRLCs133 — — 133 
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 AssetInterest Rate Lock
Commitments
Balance, January 1, 2023$6,255 $133 
Total realized gains
Additions:
  Originated and purchased servicing1,112 — 
  Subtractions:
  Paydowns(339)— 
  Change in fair value284 (133)
Balance, March 31, 2023$7,312 $— 
Balance as of January 1, 2022$4,702 $718 
Total realized gains
Additions:
  Originated and purchased servicing844 — 
  Subtractions:
  Paydowns(256)— 
  Change in fair value(41)(806)
Balance, March 31, 2022$5,249 $(88)
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 
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		RangeWeighted-Average Range
Collateral dependent loans$3,676 Fair value of collateralDiscount for type of property and current market conditions
4% - 25%
12%
Servicing asset7,312 Discounted cash flowPrepayment speeds

Discount rate
0% - 25%

14%
11.5%

14%
(dollars in thousands)Fair Value at
December 31, 2022		Valuation
Technique		Significant Unobservable
Inputs		RangeWeighted-Average Range
Impaired loans$1,164 Fair value of collateralDiscount for type of property and current market conditions
0% - 25%
20%
IRLCs133 Discounted cash flowLoan closing rates
31% - 100%
89%
Servicing asset6,255 Discounted cash flowPrepayment speeds

Discount rate
0% - 25%

14%
14.6%

14%
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 ValueQuoted 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 loans3,570,363 3,378,228 — — 3,378,228 
Accrued interest receivable22,322 22,322 22,322 — — 
Federal Home Loan Bank of Indianapolis stock28,350 28,350 — 28,350 — 
Deposits3,622,290 3,589,180 1,778,865 — 1,810,315 
Advances from Federal Home Loan Bank614,929 601,563 — 601,563 — 
Subordinated debt104,608 101,550 31,450 70,100 — 
Accrued interest payable2,592 2,592 2,592 — — 
December 31, 2022
Fair Value Measurements Using
(in thousands)Carrying
Amount		Fair ValueQuoted 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 loans3,467,664 3,225,845 — — 3,225,845 
Accrued interest receivable21,069 21,069 21,069 — — 
Federal Home Loan Bank of Indianapolis stock28,350 28,350 — 28,350 — 
Deposits3,441,245 3,415,390 1,974,344 — 1,441,046 
Advances from Federal Home Loan Bank614,928 596,455 — 596,455 — 
Subordinated debt104,532 102,669 32,560 70,109 — 
Accrued interest payable2,913 2,913 2,913 — —