XML 30 R20.htm IDEA: XBRL DOCUMENT v3.23.1
Fair Values of Financial Instruments
 3 Months Ended
Mar. 31, 2023
Fair Values of Financial Instruments [Abstract]  
Fair Values of Financial Instruments Fair Values of Financial Instruments
Most of our assets and liabilities are considered financial instruments. Many of these financial instruments lack an available trading market and it is our general practice and intent to hold the majority of our financial instruments to maturity. Significant estimates and assumptions were used to determine the fair value of financial instruments. These estimates are subjective in nature, involving uncertainties and matters of judgment, and therefore, fair values may not be a precise estimate. Changes in assumptions could significantly affect the estimates.
Estimated fair values have been determined using available data and methodologies that are considered suitable for each category of financial instrument. For instruments with adjustable interest rates which reprice frequently and without significant credit risk, it is presumed that estimated fair values approximate the recorded book balances.
The estimated recorded book balances and fair values follow:
Fair Value Using
Recorded
Book
Balance		Fair ValueQuoted
Prices
in Active
Markets
for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Un-
observable
Inputs
(Level 3)
(In thousands)
March 31, 2023
Assets
Cash and due from banks$47,823 $47,823 $47,823 $— $— 
Interest bearing deposits179,196 179,196 179,196 — — 
Securities available for sale767,526 767,526 — 767,526 — 
Securities held to maturity369,577 339,337 — 339,337 — 
Federal Home Loan Bank and Federal      
Reserve Bank Stock17,653 NANANANA
Net loans and loans held for sale3,476,194 3,155,940 — 16,935 3,139,005 
Accrued interest receivable16,615 16,615 212 6,257 10,146 
Derivative financial instruments34,184 34,184 — 34,184 — 
     
Liabilities     
Deposits with no stated maturity (1)$3,783,354 $3,783,354 $3,783,354 $— $— 
Deposits with stated maturity (1)761,395 754,881 — 754,881 — 
Other borrowings50,029 50,019 — 50,019 — 
Subordinated debt39,452 39,705 — 39,705 — 
Subordinated debentures39,677 32,695 — 32,695 — 
Accrued interest payable4,085 4,085 486 3,599 — 
Derivative financial instruments16,523 16,523 — 16,523 — 
     
December 31, 2022     
Assets     
Cash and due from banks$70,180 $70,180 $70,180 $— $— 
Interest bearing deposits4,191 4,191 4,191 — — 
Securities available for sale779,347 779,347 — 779,347 — 
Federal Home Loan Bank and Federal      
Reserve Bank Stock17,653 NANANANA
Net loans and loans held for sale3,459,802 3,185,518 20,367 26,518 3,138,633 
Accrued interest receivable16,513 16,513 1 6,503 10,009 
Derivative financial instruments39,747 39,747 — 39,747 — 
     
Liabilities     
Deposits with no stated maturity (1)$3,798,848 $3,798,848 $3,798,848 $— $— 
Deposits with stated maturity (1)580,221 573,739 — 573,739 — 
Other borrowings86,006 86,006 — 86,006 — 
Subordinated debt39,433 41,058 — 41,058 — 
Subordinated debentures39,660 38,982 — 38,982 — 
Accrued interest payable2,287 2,287 415 1,872 — 
Derivative financial instruments19,127 19,127 — 19,127 — 
(1)
Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $615.860 million and $555.781 million at March 31, 2023 and December 31, 2022, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $69.598 million and $46.794 million at March 31, 2023 and December 31, 2022, respectively.
The fair values for commitments to extend credit and standby letters of credit are estimated to approximate their aggregate book balance, which is nominal and therefore are not disclosed.
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale the entire holdings of a particular financial instrument.
Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, the value of future earnings attributable to off-balance sheet activities and the value of assets and liabilities that are not considered financial instruments.
Fair value estimates for deposit accounts do not include the value of the core deposit intangible asset resulting from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market.