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Fair Value (Tables)

12 Months Ended

Dec. 31, 2023

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

Assets and liabilities measured at fair value on a recurring basis were as follows at December 31, 2023 and 2022:


			Fair Value Measurements at December 31, 2023 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Securities Available-For-Sale:
U.S. Government sponsored entities (1)	$	4,988	$	4,988	$	—	$	—
States and political subdivisions	91,809		—		91,809		—
Residential and multi-family mortgage	191,519		—		191,519		—
Corporate notes and bonds	43,139		—		43,139		—
Pooled SBA	10,500		—		10,500		—

Total Securities Available-For-Sale	$	341,955	$	4,988	$	336,967	$	—
Interest rate swaps	$	1,013	$	—	$	1,013	$	—
Equity Securities:
Corporate equity securities	$	5,341	$	5,341	$	—	$	—
Mutual funds	2,223		2,223		—		—
Money market	1,103		1,103		—		—
Corporate notes	634		—		634		—

Total Equity Securities	$	9,301	$	8,667	$	634	$	—
Liabilities
Interest rate swaps	$	(1,013)	$	—	$	(1,013)	$	—

(1) In 2023, the Corporation transitioned to a new pricing provider, leading to the reclassification of United States Treasury investments as Level 1 pricing instruments.


			Fair Value Measurements at December 31, 2022 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Securities Available-For-Sale:
U.S. Government sponsored entities	$	3,129	$	—	$	3,129	$	—
States and political subdivisions	95,663		—		95,663		—
Residential and multi-family mortgage	217,547		—		217,547		—
Corporate notes and bonds	42,391		—		42,391		—
Pooled SBA	12,679		—		12,679		—

Total Securities Available-For-Sale	$	371,409	$	—	$	371,409	$	—
Interest rate swaps	$	1,850	$	—	$	1,850	$	—
Equity Securities:
Corporate equity securities	$	6,973	$	6,973	$	—	$	—
Mutual funds	1,406		1,406		—		—
Money market	479		479		—		—
Corporate notes	757		757		—		—

Total Equity Securities	$	9,615	$	9,615	$	—	$	—
Liabilities
Interest rate swaps	$	(1,700)	$	—	$	(1,700)	$	—

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 as follows at December 31, 2023 and 2022:


			Fair Value Measurements at December 31, 2023 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Collateral-dependent loans:
Farmland	$	736	$	—	$	—	$	736
Owner-occupied, nonfarm nonresidential properties	5,589		—		—		5,589
Commercial and industrial	7,425		—		—		7,425
Other construction loans and all land development loans and other land loans	1,299		—		—		1,299
Multifamily (5 or more) residential properties	305		—		—		305
Non-owner occupied, nonfarm nonresidential	7,216		—		—		7,216
Home equity lines of credit	308		—		—		308
Residential mortgages secured by first liens	871		—		—		871


			Fair Value Measurements at December 31, 2022 Using
Description	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Collateral-dependent loans:
Farmland	$	829	$	—	$	—	$	829
Owner-occupied, nonfarm nonresidential properties	1,071		—		—		1,071
Commercial and industrial	1,631		—		—		1,631
Other construction loans and all land development loans and other land loans	501		—		—		501
Multifamily (5 or more) residential properties	613		—		—		613
Non-owner occupied, nonfarm nonresidential	3,867		—		—		3,867
Home equity lines of credit	335		—		—		335
Residential mortgages secured by first liens	944		—		—		944

Schedule of Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Non Recurring Basis

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 December 31, 2023:

Fair
value

Valuation
Technique

Unobservable Inputs

Range
(Weighted
Average)

Collateral-dependent loans receivable:

Farmland

736

Valuation of third party appraisal on underlying collateral

Loss severity rates

29%-31% (30%)

Owner-occupied, nonfarm nonresidential properties

5,589

Valuation of third party appraisal on underlying collateral

Loss severity rates

9%-100% (14%)

Commercial and industrial

7,425

Valuation of third party appraisal on underlying collateral

Loss severity rates

8%-75% (31%)

Other construction loans and all land development loans and other land loans

1,299

Valuation of third party appraisal on underlying collateral

Loss severity rates

32% (32%)

Multifamily (5 or more) residential properties

305

Valuation of third party appraisal on underlying collateral

Loss severity rates

28% (28%)

Non-owner occupied, nonfarm nonresidential

7,216

Valuation of third party appraisal on underlying collateral

Loss severity rates

32%-48% (43%)

Home equity lines of credit

308

Valuation of third party appraisal on underlying collateral

Loss severity rates

15%-17% (15%)

Residential mortgages secured by first liens

871

Valuation of third party appraisal on underlying collateral

Loss severity rates

17%-42% (31%)

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 December 31, 2022:

Fair
value

Valuation
Technique

Unobservable Inputs

Range
(Weighted
Average)

Collateral-dependent loans receivable:

Farmland

829

Valuation of third party appraisal on underlying collateral

Loss severity rates

20% (20%)

Owner-occupied, nonfarm nonresidential properties

1,071

Valuation of third party appraisal on underlying collateral

Loss severity rates

25%-100% (29%)

Commercial and industrial

1,631

Valuation of third party appraisal on underlying collateral

Loss severity rates

3%-49% (23%)

Other construction loans and all land development loans and other land loans

501

Valuation of third party appraisal on underlying collateral

Loss severity rates

33% (33%)

Multifamily (5 or more) residential properties

613

Valuation of third party appraisal on underlying collateral

Loss severity rates

19%-25% (23%)

Non-owner occupied, nonfarm nonresidential

3,867

Valuation of third party appraisal on underlying collateral

Loss severity rates

15%-53% (35%)

Home equity lines of credit

335

Valuation of third party appraisal on underlying collateral

Loss severity rates

15% (15%)

Residential mortgages secured by first liens

944

Valuation of third party appraisal on underlying collateral

Loss severity rates

17%-42% (31%)

Schedule of Carrying Amount and Fair Value of Financial Instruments

The following table presents the carrying amount and fair value of financial instruments at December 31, 2023:


	Carrying Amount		Fair Value Measurement Using:						Total Fair Value
			Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	222,046	$	222,046	$	—	$	—	$	222,046
Debt securities available-for-sale (1)	341,955		4,988		336,967		—		341,955
Debt securities held-to-maturity (1)	388,968		104,141		256,429		—		360,570
Equity securities	9,301		8,667		634		—		9,301
Loans held for sale	675		—		677		—		677
Net loans receivable	4,422,644		—		—		4,323,476		4,323,476
FHLB and other restricted stock holdings and investments	30,011		n/a		n/a		n/a		n/a
Interest rate swaps	1,013		—		1,013		—		1,013
Accrued interest receivable	24,318		410		2,319		21,589		24,318
Liabilities:
Deposits	$	(4,998,750)	$	(4,492,256)	$	(508,181)	$	—	$	(5,000,437)

Subordinated debentures	(104,887)		—		(134,298)		—		(134,298)
Interest rate swaps	(1,013)		—		(1,013)		—		(1,013)
Accrued interest payable	(3,550)		—		(3,550)		—		(3,550)

(1) In 2023, the Corporation transitioned to a new pricing provider, leading to the reclassification of United States Treasury investments as Level 1 pricing instruments.

The following table presents the carrying amount and fair value of financial instruments at December 31, 2022:


	Carrying Amount		Fair Value Measurement Using:						Total Fair Value
			Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	106,285	$	106,285	$	—	$	—	$	106,285
Debt securities available-for-sale	371,409		—		371,409		—		371,409
Debt securities held-to-maturity	404,765		—		367,388		—		367,388
Equity securities	9,615		9,615						9,615
Loans held for sale	231		—		231		—		231
Net loans	4,231,742		—		—		4,157,843		4,157,843
FHLB and other equity interests	30,715		n/a		n/a		n/a		n/a
Interest rate swaps	1,850		—		1,850		—		1,850
Accrued interest receivable	20,194		—		2,867		17,327		20,194
Liabilities:
Deposits	$	(4,622,437)	$	(4,175,976)	$	(445,788)	$	—	$	(4,621,764)
FHLB and other borrowings	(132,396)		—		(132,396)		—		(132,396)
Subordinated debentures	(104,584)		—		(117,378)		—		(117,378)
Interest rate swaps	(1,700)		—		(1,700)		—		(1,700)
Accrued interest payable	(1,839)		—		(1,839)		—		(1,839)