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FAIR VALUE OF FINANCIAL INSTRUMENTS
12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS
 
The Corporation is required to disclose fair values for its financial instruments.  Fair values are made at a specific point in time, based on relevant market information and information about the financial instrument.  These fair values do not reflect any premium or discount that could result from offering for sale at one time the Corporation’s entire holdings of a particular financial instrument.  Also, it is the Corporation’s general practice and intention to hold most of its financial instruments to maturity and not to engage in trading or sales activities.  Because no market exists for a significant portion of the Corporation’s financial instruments, fair values are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors.  These fair values are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision.  Changes in assumptions can significantly affect the fair values. The carrying amounts for cash and cash equivalents, restricted investments in bank stock, bank-owned life insurance, non-time deposits, accrued interest receivable and payable approximate fair value and are considered Level I measurements.

Fair values have been determined by the Corporation using historical data and an estimation methodology suitable for each category of financial instruments.  The Corporation’s fair values, methods, and assumptions are set forth below for the Corporation’s other financial instruments.

As certain assets and liabilities, such as deferred tax assets, premises and equipment, and many other operational elements of the Corporation, are not considered financial instruments but have value, the fair value of financial instruments would not represent the full fair value of the Corporation.

The fair values of the Corporation’s financial instruments not required to be measured or reported at fair value are as follows at December 31, 2021 and 2020:
   Fair Value Measurements at December 31, 2021
(In Thousands)Carrying ValueFair ValueQuoted Prices in Active Markets for Identical Assets (Level I)Significant Other Observable Inputs (Level II)Significant Unobservable Inputs
(Level III)
Financial assets:     
Loans held for sale$3,725 $3,725 $3,725 $— $— 
Loans, net1,377,971 1,379,787 — — 1,379,787 
     
Financial liabilities:
Time deposits$205,367 $204,512 $— $— $204,512 
Short-term borrowings5,747 5,747 5,747 — — 
Long-term borrowings125,963 127,679 — — 127,679 
   Fair Value Measurements at December 31, 2020
(In Thousands)Carrying ValueFair ValueQuoted Prices in Active Markets for Identical Assets (Level I)Significant Other Observable Inputs (Level II)Significant Unobservable Inputs (Level III)
Financial assets:     
Loans held for sale$5,239 $5,239 $5,239 $— $— 
Loans, net1,330,524 1,339,993 — — 1,339,993 
Financial liabilities:
Time deposits$263,645 $266,840 $— $— $266,840 
Short-term borrowings5,244 5,244 5,244 — — 
Long-term borrowings153,475 159,575 — — 159,575