Fair Value (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Assets Measured at Fair Value on Recurring Basis

Assets measured at fair value on a recurring basis are summarized below:

			Fair Value Measurements at June 30, 2023 Using:
(In Thousands of Dollars)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Investment securities available-for sale
U.S. Treasury and U.S. government sponsored entities	$	135,165	$	0	$	135,165	$	0
State and political subdivisions		543,062		0		543,062		0
Corporate bonds		17,632		0		16,409		1,223
Mortgage-backed securities-residential		541,124		0		541,123		1
Collateralized mortgage obligations		76,796		0		76,796		0
Small Business Administration		3,099		0		3,099		0
Equity securities
Equity securities at fair value		218		218		0		0
Other investments measured at net asset value		15,034	n/a		n/a		n/a
Total investment securities	$	1,332,130	$	218	$	1,315,654	$	1,224
Loans held for sale	$	2,197	$	0	$	1,703	$	0
Interest rate swaps		5,494	$	0		5,494		0
Mortgage banking derivative		14		0		14		0
Financial Liabilities
Interest rate swaps	$	5,494	$	0	$	5,494	$	0

			Fair Value Measurements at December 31, 2022 Using:
(In Thousands of Dollars)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Investment securities available-for sale
U.S. Treasury and U.S. government sponsored entities	$	128,096	$	0	$	128,096	$	0
State and political subdivisions		530,080		0		530,080		0
Corporate bonds		3,879		0		3,879		0
Mortgage-backed securities-residential		555,142		0		555,141		1
Collateralized mortgage obligations		47,354		0		47,354		0
Small Business Administration		3,474		0		3,474		0
Equity securities
Equity securities at fair value		196		196		0		0
Other investments measured at net asset value		15,048	n/a		n/a		n/a
Total investment securities	$	1,283,269	$	196	$	1,268,024	$	1
Loans held for sale	$	858	$	0	$	858	$	0
Interest rate swaps		5,503		0		5,503		0
Mortgage banking derivative -asset		31		0		31		0
Financial Liabilities
Interest rate swaps	$	5,503	$	0	$	5,503	$	0

Reconciliation of All Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

	Three Months ended June 30,					Six Months ended June 30,
(In Thousands of Dollars)	2023			2022		2023			2022
Beginning Balance	$	1,616		$	2	$	1		$	3
Transfers between levels		0			0		0			0
Acquired and/or purchased		0			0		1,615			0
Repayments, calls and maturities		(392	)		0		(392	)		(1	)
Ending Balance	$	1,224		$	2	$	1,224		$	2

Assets Measured at Fair Value on Non-Recurring Basis

Assets measured at fair value on a non-recurring basis are summarized below:

			Fair Value Measurements at June 30, 2023 Using:
(In Thousands of Dollars)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Individually evaluated loans
Commercial real estate
Non-owner occupied	$	2,920	$	0	$	0	$	2,920
Commercial
Commercial and industrial	$	395	$	0	$	0	$	395

			Fair Value Measurements at December 31, 2022 Using:
(In Thousands of Dollars)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Individually Evaluated loans
Commercial real estate
Non-owner occupied	$	746		0		0	$	746
Commercial		395		0		0		395
1–4 family residential		74		0		0		74

Fair Value Measurements for Financial Instruments

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods ended June 30, 2023 and December 31, 2022:

June 30, 2023	Fair value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Individually evaluated loans
Commercial real estate	$	2,920	Sales Comparison	Adjustment for differences between comparable sales	(66.12%) - 40.28% 15.88%
Commercial		395	Quoted price for collateral	Offer Price	50.55%

December 31, 2022	Fair value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Individually evaluated loans
Commercial real estate	$	746	Quoted price for collateral	Offer Price	7.45%
Commercial		395	Quoted price for collateral	Offer Price	43.00%
Residential		74	Sales comparison	Adjustment for differences between comparable sales	(13.77%) - (5.68%) (13.77%)

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments not previously disclosed at June 30, 2023 and December 31, 2022 are as follows:

			Fair Value Measurements at June 30, 2023 Using:
(In Thousands of Dollars)	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	116,063	$	29,800	$	86,263	$	0	$	116,063
Regulatory stock		29,723	n/a		n/a		n/a		n/a
Loans, net		3,120,243		0		0		2,985,702		2,985,702
Financial liabilities
Deposits		4,270,748		3,589,251		679,516		0		4,268,767
Short-term borrowings		300,000		0		300,000		0		300,000
Long-term borrowings		88,437		0		68,480		0		68,480

			Fair Value Measurements at December 31, 2022 Using:
(In Thousands of Dollars)	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	75,551	$	21,395	$	54,156	$	0	$	75,551
Regulatory stock		18,200	n/a		n/a		n/a		n/a
Loans, net		2,377,772		0		0		2,330,164		2,330,164
Financial liabilities
Deposits		3,561,768		2,999,188		561,292		0		3,560,480
Short-term borrowings		95,000		0		95,000		0		95,000
Long-term borrowings		88,211		0		73,566		0		73,566