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FAIR VALUE DISCLOSURES (Tables)
3 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
Schedule of Assets Measured at Fair Value on a Recurring Basis
The tables below present the balances of assets measured at fair value on a recurring basis:
March 31, 2023
Fair Value Measurements UsingAssets
at Fair Value
(dollars in thousands)Level 1Level 2Level 3
Assets:
U.S. Treasury securities$3,352 $0 $0 $3,352 
U.S. government sponsored agency securities0 127,995 0 127,995 
Mortgage-backed securities: residential0 484,462 0 484,462 
State and municipal securities0 490,437 2,035 492,472 
Total securities available-for-sale3,352 1,102,894 2,035 1,108,281 
Mortgage banking derivative0 47 0 47 
Interest rate swap derivative0 30,011 0 30,011 
Total assets$3,352 $1,132,952 $2,035 $1,138,339 
Liabilities:
Mortgage banking derivative$0 $4 $0 $4 
Interest rate swap derivative0 30,013 0 30,013 
Total liabilities$0 $30,017 $0 $30,017 
December 31, 2022
Fair Value Measurements UsingAssets
at Fair Value
(dollars in thousands)Level 1Level 2Level 3
Assets:        
U.S. Treasury securities$3,034 $$$3,034 
U.S. government sponsored agency securities126,961 126,961 
Mortgage-backed securities: residential492,308 492,308 
State and municipal securities561,150 2,075 563,225 
Total securities available-for-sale3,034 1,180,419 2,075 1,185,528 
Mortgage banking derivative43 43 
Interest rate swap derivative36,920 36,920 
Total assets$3,034 $1,217,382 $2,075 $1,222,491 
Liabilities:
Mortgage banking derivative$$$$
Interest rate swap derivative36,921 36,921 
Total liabilities$$36,921 $$36,921 
Schedule of Assets Measured at Fair Value on a Nonrecurring Basis
The tables below present the balances of assets measured at fair value on a nonrecurring basis:
March 31, 2023
Fair Value Measurements UsingAssets
at Fair Value
(dollars in thousands)Level 1Level 2Level 3
Assets
Collateral dependent loans:
Commercial and industrial loans:
Working capital lines of credit loans$0 $0 $2,858 $2,858 
Non-working capital loans0 0 2,559 2,559 
Commercial real estate and multi-family residential loans:
Owner occupied loans0 0 429 429 
Agri-business and agricultural loans:
Loans secured by farmland0 0 33 33 
Total collateral dependent loans0 0 5,879 5,879 
Other real estate owned0 0 100 100 
Total assets$0 $0 $5,979 $5,979 
December 31, 2022
Fair Value Measurements UsingAssets
at Fair Value
(dollars in thousands)Level 1Level 2Level 3
Assets        
Collateral dependent loans:        
Commercial and industrial loans:        
Working capital lines of credit loans$$$3,178 $3,178 
Non-working capital loans8,354 8,354 
Commercial real estate and multi-family residential loans:
Owner occupied loans425 425 
Agri-business and agricultural loans:
Loans secured by farmland35 35 
Total collateral dependent loans11,992 11,992 
Other real estate owned100 100 
Total assets$$$12,092 $12,092 
Schedule of Fair Value Measured on Nonrecurring Basis Valuation Techniques
The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at March 31, 2023:
(dollars in thousands)Fair ValueValuation MethodologyUnobservable InputsAverageRange of Inputs
Collateral dependent loans:          
Commercial and industrial$5,417 Collateral based measurementsDiscount to reflect current market conditions and ultimate collectability66 %
40%-99%
Collateral dependent loans:    
Commercial real estate and multi-family residential loans429 Collateral based measurementsDiscount to reflect current market conditions and ultimate collectability56 %
37%-76%
Collateral dependent loans:
Agri-business and agricultural33 Collateral based measurementsDiscount to reflect current market conditions and ultimate collectability76 %
Other real estate owned100 AppraisalsDiscount to reflect current market conditions and ultimate collectability68 %
The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis at December 31, 2022:
(dollars in thousands)Fair ValueValuation MethodologyUnobservable InputsAverageRange of Inputs
Collateral dependent loans:          
Commercial and industrial$11,532 Collateral based measurementsDiscount to reflect current market conditions and ultimate collectability62 %
29%-99%
Collateral dependent loans:    
Commercial real estate and multi-family residential loans425 Collateral based measurementsDiscount to reflect current market conditions and ultimate collectability57 %
37%-76%
Collateral dependent loans:    
Agri-business and agricultural35 Collateral based measurementsDiscount to reflect current market conditions and ultimate collectability76 %
Other real estate owned100 AppraisalsDiscount to reflect current market conditions and ultimate collectability68 %
Schedule of Fair Values and the Related Carrying Values of Financial Instruments
The following tables contain the estimated fair values and the related carrying values of the Company’s financial instruments. Items that are not financial instruments are not included.
March 31, 2023
Carrying
Value
Estimated Fair Value
(dollars in thousands)Level 1Level 2Level 3Total
Financial Assets:          
Cash and cash equivalents$153,521 $152,800 $721 $0 $153,521 
Securities available-for-sale1,108,281 3,352 1,102,894 2,035 1,108,281 
Securities held-to-maturity128,651 0 115,533 0 115,533 
Real estate mortgages held-for-sale508 0 518 0 518 
Loans, net4,683,713 0 0 4,505,890 4,505,890 
Mortgage banking derivative47 0 47 0 47 
Interest rate swap derivative30,011 0 30,011 0 30,011 
Federal Reserve and Federal Home Loan Bank Stock15,795 N/AN/AN/AN/A
Accrued interest receivable26,883 0 8,532 18,351 26,883 
Financial Liabilities:
Certificates of deposit764,163 0 762,852 0 762,852 
All other deposits4,753,565 4,753,565 0 0 4,753,565 
Mortgage banking derivative4 0 4 0 4 
Interest rate swap derivative30,013 0 30,013 0 30,013 
Standby letters of credit216 0 0 216 216 
Accrued interest payable5,425 420 5,005 0 5,425 
December 31, 2022
Carrying
Value
Estimated Fair Value
(dollars in thousands)Level 1Level 2Level 3Total
Financial Assets:          
Cash and cash equivalents$130,282 $129,069 $1,213 $$130,282 
Securities available-for-sale1,185,528 3,034 1,180,419 2,075 1,185,528 
Securities held-to-maturity128,242 111,029 111,029 
Real estate mortgages held-for-sale357 372 372 
Loans, net4,637,790 4,454,678 4,454,678 
Mortgage banking derivative43 43 43 
Interest rate swap derivative36,920 36,920 36,920 
Federal Reserve and Federal Home Loan Bank Stock15,795 N/AN/AN/AN/A
Accrued interest receivable27,994 9,598 18,396 27,994 
Financial Liabilities:
Certificates of deposit626,186 621,206 621,206 
All other deposits4,834,434 4,834,434 4,834,434 
Federal Funds purchased22,000 22,000 22,000 
Federal Home Loan Bank advances275,000 275,000 275,000 
Interest rate swap derivative36,921 36,921 36,921 
Standby letters of credit249 249 249 
Accrued interest payable3,186 486 2,700 3,186