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Fair Value (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below:


	Fair Value Measurements at September 30, 2023 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
U.S. Treasury	$	—	$	—	$	—	$	—
Obligations of State and Political Subdivisions	—		679,105		82		679,187
MBS/CMO	—		619,620		943		620,563
US Gov’t Sponsored Entities & Agencies	—		177,206		—		177,206
Total Securities	$	—	$	1,475,931	$	1,025	$	1,476,956

Loans Held-for-Sale	$	—	$	7,085	$	—	$	7,085

Derivative Assets	$	—	$	10,318	$	—	$	10,318

Derivative Liabilities	$	—	$	10,195	$	—	$	10,195


	Fair Value Measurements at December 31, 2022 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
U.S. Treasury	$	64,119	$	—	$	—	$	64,119
Obligations of State and Political Subdivisions	—		777,769		83		777,852
MBS/CMO	—		713,775		906		714,681
US Gov’t Sponsored Entities & Agencies	—		205,017		—		205,017
Total Securities	$	64,119	$	1,696,561	$	989	$	1,761,669

Loans Held-for-Sale	$	—	$	8,600	$	—	$	8,600

Derivative Assets	$	—	$	9,899	$	—	$	9,899

Derivative Liabilities	$	—	$	9,749	$	—	$	9,749

Schedule of Aggregate Fair Value, Contractual Balance and Gain (Loss) of Loans Held-for-Sale

As of September 30, 2023 and December 31, 2022, the aggregate fair value, contractual balance (including accrued interest), and gain or loss on Loans Held-for-Sale was as follows:


	September 30, 2023		December 31, 2022

Aggregate Fair Value	$	7,085	$	8,600
Contractual Balance	6,973		8,474
Gain (Loss)	112		126

Schedule of Reconciliation of all Assets Measured at Fair Value on Recurring Basis, Using Significant Unobservable Inputs (Level 3)

The tables below present a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2023 and 2022:


	Obligations of State and Political Subdivisions				MBS/CMO
	2023		2022		2023		2022

Balance of Recurring Level 3 Assets at July 1	$	84	$	94	$	919	$	—
Total Gains (Losses) Included in Other Comprehensive Income	(2)		(3)		24		—
Maturities / Calls	—		—		—		—
Acquired through Bank Acquisition	—		—		—		—
Balance of Recurring Level 3 Assets at September 30	$	82	$	91	$	943	$	—


	Obligations of State and Political Subdivisions				MBS/CMO
	2023		2022		2023		2022

Balance of Recurring Level 3 Assets at January 1	$	83	$	—	$	906	$	—
Total Gains (Losses) Included in Other Comprehensive Income	(1)		(3)		37		—
Maturities / Calls	—		—		—		—
Acquired through Bank Acquisition	—		94		—		—
Balance of Recurring Level 3 Assets at September 30	$	82	$	91	$	943	$	—

Schedule of Assets and Liabilities Measured at Fair Value on Non-Recurring Basis

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


	Fair Value Measurements at September 30, 2023 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Individually Analyzed Loans
Commercial and Industrial Loans	$	—	$	—	$	2,699	$	2,699
Commercial Real Estate Loans	$	—	$	—	$	6,877	$	6,877
Agricultural Loans	$	—	$	—	$	1,841	$	1,841
Consumer Loans	$	—	$	—	$	9	$	9
Home Equity Loans	$	—	$	—	$	363	$	363
Residential Mortgage Loans	$	—	$	—	$	537	$	537


	Fair Value Measurements at December 31, 2022 Using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Individually Analyzed Loans
Commercial and Industrial Loans	$	—	$	—	$	1,858	$	1,858
Commercial Real Estate Loans	$	—	$	—	$	10,040	$	10,040
Agricultural Loans	$	—	$	—	$	2,970	$	2,970
Consumer Loans	$	—	$	—	$	8	$	8
Home Equity Loans	$	—	$	—	$	368	$	368
Residential Mortgage Loans	$	—	$	—	$	718	$	718

Schedule of Fair Value Assets and Liabilities Measured on Nonrecurring Basis Valuation Techniques

The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2023 and December 31, 2022:


September 30, 2023	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)

Individual Analyzed Loans - Commercial and Industrial Loans	$	2,699	Sales comparison approach	Adjustment for physical condition of comparable properties sold	30%-100% (38%)
Individual Analyzed Loans - Commercial Real Estate Loans	$	6,877	Sales comparison approach	Adjustment for physical condition of comparable properties sold	25%-68% (37%)
Individual Analyzed Loans - Agricultural Loans	$	1,841	Sales comparison approach	Adjustment for physical condition of comparable properties sold	19%-100% (50%)
Individual Analyzed Loans - Consumer Loans	$	9	Sales comparison approach	Adjustment for physical condition of comparable properties sold	20%-27% (20%)
Individual Analyzed Loans - Home Equity Loans	$	363	Sales comparison approach	Adjustment for physical condition of comparable properties sold	20%-20% (20%)
Individual Analyzed Loans - Residential Mortgage Loans	$	537	Sales comparison approach	Adjustment for physical condition of comparable properties sold	20%-20% (20%)


December 31, 2022	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)

Individual Analyzed Loans - Commercial and Industrial Loans	$	1,858	Sales comparison approach	Adjustment for physical condition of comparable properties sold	0%-100% (40%)
Individual Analyzed Loans - Commercial Real Estate Loans	$	10,040	Sales comparison approach	Adjustment for physical condition of comparable properties sold	30%-100% (37%)
Individual Analyzed Loans - Agricultural Loans	$	2,970	Sales comparison approach	Adjustment for physical condition of comparable properties sold	30%-100% (48%)
Individual Analyzed Loans - Consumer Loans	$	8	Sales comparison approach	Adjustment for physical condition of comparable properties sold	27%-100% (20%)
Individual Analyzed Loans - Home Equity Loans	$	368	Sales comparison approach	Adjustment for physical condition of comparable properties sold	20%-51% (20%)
Individual Analyzed Loans - Residential Mortgage Loans	$	718	Sales comparison approach	Adjustment for physical condition of comparable properties sold	20%-100% (21%)

Schedule of Carrying Amounts and Estimated Fair Values of Company's Financial Instruments

The carrying amounts and estimated fair values of the Company’s financial instruments not previously presented are provided in the tables below for the periods ending September 30, 2023 and December 31, 2022. Not all of the Company’s assets and liabilities are considered financial instruments, and therefore are not included in the tables. Because no active market exists for a significant portion of the Company’s financial instruments, fair value estimates were based on subjective judgments, and therefore cannot be determined with precision.


			Fair Value Measurements at September 30, 2023 Using
	Carrying Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and Short-term Investments	$	132,419	$	72,063	$	60,356	$	—	$	132,419
Interest Bearing Time Deposits with Banks	500		—		500		—		500
Loans, Net	3,830,578		—		—		3,725,317		3,725,317
Accrued Interest Receivable	29,115		—		9,634		19,481		29,115
Financial Liabilities:
Demand, Savings, and Money Market Deposits	(4,434,355)		(4,434,355)		—		—		(4,434,355)
Time Deposits	(701,516)		—		(698,642)		—		(698,642)
Short-term Borrowings	(158,303)		(117,000)		(41,303)		—		(158,303)
Long-term Debt	(127,890)		—		(51,983)		(72,280)		(124,263)
Accrued Interest Payable	(5,890)		—		(5,417)		(473)		(5,890)


			Fair Value Measurements at December 31, 2022 Using
	Carrying Value		Level 1		Level 2		Level 3		Total
Financial Assets:
Cash and Short-term Investments	$	119,079	$	77,174	$	41,905	$	—	$	119,079
Interest Bearing Time Deposits with Banks	500		—		500		—		500
Loans, Net	3,724,804		—		—		3,688,903		3,688,903
Accrued Interest Receivable	27,741		38		10,863		16,840		27,741
Financial Liabilities:
Demand, Savings, and Money Market Deposits	(4,921,582)		(4,921,582)		—		—		(4,921,582)
Time Deposits	(428,469)		—		(426,184)		—		(426,184)
Short-term Borrowings	(101,161)		(36,200)		(64,961)		—		(101,161)
Long-term Debt	(102,645)		—		(26,830)		(72,272)		(99,102)
Accrued Interest Payable	(1,513)		—		(1,205)		(308)		(1,513)