FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)
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12 Months Ended |
Dec. 31, 2020 |
FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS |
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Schedule of assets measured at fair value and the valuation methods used |
| | | | | | | | | | | | | | | December 31, 2020 | | | Quoted | | | | | | | | | | | | Prices | | Other | | | | | | | | | in Active | | Observable | | Unobservable | | Total | | | Markets | | Inputs | | Inputs | | Fair | (In Thousands) | | (Level 1) | | (Level 2) | | (Level 3) | | Value | Recurring fair value measurements, assets: | | | | | | | | | | | | | AVAILABLE-FOR-SALE DEBT SECURITIES: | | | | | | | | | | | | | Obligations of the U.S. Treasury | | $ | 0 | | $ | 12,182 | | $ | 0 | | $ | 12,182 | Obligations of U.S. Government agencies | | | 0 | | | 26,344 | | | 0 | | | 26,344 | Obligations of states and political subdivisions: | | | | | | | | | | | | | Tax-exempt | | | 0 | | | 122,401 | | | 0 | | | 122,401 | Taxable | | | 0 | | | 47,452 | | | 0 | | | 47,452 | Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: | | | | | | | | | | | | | Residential pass-through securities | | | 0 | | | 38,176 | | | 0 | | | 38,176 | Residential collateralized mortgage obligations | | | 0 | | | 57,467 | | | 0 | | | 57,467 | Commercial mortgage-backed securities | | | 0 | | | 45,310 | | | 0 | | | 45,310 | Total available-for-sale debt securities | | | 0 | | | 349,332 | | | 0 | | | 349,332 | Marketable equity security | | | 1,000 | | | 0 | | | 0 | | | 1,000 | Servicing rights | | | 0 | | | 0 | | | 1,689 | | | 1,689 | Interest rate swap agreements, assets | | | 0 | | | 6,566 | | | 0 | | | 6,566 | Total recurring fair value measurements, assets | | $ | 1,000 | | $ | 355,898 | | $ | 1,689 | | $ | 358,587 | | | | | | | | | | | | | | Recurring fair value measurements, liabilities, | | | | | | | | | | | | | Interest rate swap agreements, liabilities | | $ | 0 | | $ | 6,566 | | $ | 0 | | $ | 6,566 | | | | | | | | | | | | | | Nonrecurring fair value measurements, assets: | | | | | | | | | | | | | Impaired loans with a valuation allowance | | $ | 0 | | $ | 0 | | $ | 8,082 | | $ | 8,082 | Valuation allowance | | | 0 | | | 0 | | | (925) | | | (925) | Impaired loans, net | | | 0 | | | 0 | | | 7,157 | | | 7,157 | Foreclosed assets held for sale | | | 0 | | | 0 | | | 1,338 | | | 1,338 | Total nonrecurring fair value measurements, assets | | $ | 0 | | $ | 0 | | $ | 8,495 | | $ | 8,495 |
| | | | | | | | | | | | | | | December 31, 2019 | | | Quoted | | | | | | | | | | | | Prices | | Other | | | | | | | | | in Active | | Observable | | Unobservable | | Total | | | Markets | | Inputs | | Inputs | | Fair | (In Thousands) | | (Level 1) | | (Level 2) | | (Level 3) | | Value | Recurring fair value measurements, assets: | | | | | | | | | | | | | AVAILABLE-FOR-SALE DEBT SECURITIES: | | | | | | | | | | | | | Obligations of U.S. Government agencies | | $ | 0 | | $ | 17,000 | | $ | 0 | | $ | 17,000 | Obligations of states and political subdivisions: | | | | | | | | | | | | | Tax-exempt | | | 0 | | | 70,760 | | | 0 | | | 70,760 | Taxable | | | 0 | | | 36,303 | | | 0 | | | 36,303 | Mortgage-backed securities issued or guaranteed by U.S. Government agencies or sponsored agencies: | | | | | | | | | | | | | Residential pass-through securities | | | 0 | | | 59,210 | | | 0 | | | 59,210 | Residential collateralized mortgage obligations | | | 0 | | | 114,723 | | | 0 | | | 114,723 | Commercial mortgage-backed securities | | | 0 | | | 48,727 | | | 0 | | | 48,727 | Total available-for-sale debt securities | | | 0 | | | 346,723 | | | 0 | | | 346,723 | Marketable equity security | | | 979 | | | 0 | | | 0 | | | 979 | Servicing rights | | | 0 | | | 0 | | | 1,277 | | | 1,277 | Total recurring fair value measurements | | $ | 979 | | $ | 346,723 | | $ | 1,277 | | $ | 348,979 | | | | | | | | | | | | | | Nonrecurring fair value measurements, assets | | | | | | | | | | | | | Impaired loans with a valuation allowance | | $ | 0 | | $ | 0 | | $ | 3,375 | | $ | 3,375 | Valuation allowance | | | 0 | | | 0 | | | (1,051) | | | (1,051) | Impaired loans, net | | | 0 | | | 0 | | | 2,324 | | | 2,324 | Foreclosed assets held for sale | | | 0 | | | 0 | | | 2,886 | | | 2,886 | Total nonrecurring fair value measurements, assets | | $ | 0 | | $ | 0 | | $ | 5,210 | | $ | 5,210 |
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Schedule of reconciliation of level 3 activity |
| | | | | | | (In Thousands) | | Years Ended December 31, | | | 2020 | | 2019 | Servicing rights balance, beginning of period | | $ | 1,277 | | $ | 1,404 | Originations of servicing rights | | | 988 | | | 204 | Unrealized losses included in earnings | | | (576) | | | (331) | Servicing rights balance, end of period | | $ | 1,689 | | $ | 1,277 |
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Schedule of estimated fair values, and carrying amounts of financial instruments not recorded at fair value |
| | | | | | | | | | | | | | | (In Thousands) | | Fair Value | | December 31, 2020 | | December 31, 2019 | | | Hierarchy | | Carrying | | Fair | | Carrying | | Fair | | | Level | | Amount | | Value | | Amount | | Value | Financial assets: | | | | | | | | | | | | | | | Cash and cash equivalents | | Level 1 | | $ | 96,017 | | $ | 96,017 | | $ | 31,122 | | $ | 31,122 | Certificates of deposit | | Level 2 | | | 5,840 | | | 6,054 | | | 4,080 | | | 4,227 | Restricted equity securities (included in Other Assets) | | Level 2 | | | 9,970 | | | 9,970 | | | 10,321 | | | 10,321 | Loans, net | | Level 3 | | | 1,632,824 | | | 1,646,207 | | | 1,172,386 | | | 1,181,000 | Accrued interest receivable | | Level 2 | | | 8,293 | | | 8,293 | | | 5,001 | | | 5,001 | Interest rate swap agreements | | Level 2 | | | 6,566 | | | 6,566 | | | 0 | | | 0 | | | | | | | | | | | | | | | | Financial liabilities: | | | | | | | | | | | | | | | Deposits with no stated maturity | | Level 2 | | | 1,430,062 | | | 1,430,062 | | | 877,965 | | | 877,965 | Time deposits | | Level 2 | | | 390,407 | | | 393,566 | | | 374,695 | | | 376,738 | Short-term borrowings | | Level 2 | | | 20,022 | | | 19,974 | | | 86,220 | | | 86,166 | Long-term borrowings | | Level 2 | | | 54,608 | | | 55,723 | | | 52,127 | | | 52,040 | Subordinated debt | | Level 2 | | | 16,553 | | | 16,680 | | | 6,500 | | | 6,499 | Accrued interest payable | | Level 2 | | | 390 | | | 390 | | | 311 | | | 311 | Interest rate swap agreements | | Level 2 | | | 6,566 | | | 6,566 | | | 0 | | | 0 |
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Recurring fair value measurements |
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FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS |
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Schedule of inputs and valuation techniques |
| | | | | | | | | | | | | | | Fair Value at | | | | | | | | | | | | 12/31/2020 | | Valuation | | Unobservable | | | | | Method or Value As of | Asset | | (In Thousands) | | Technique | | Input(s) | | | | | 12/31/2020 | Servicing rights | | $ | 1,689 | | Discounted cash flow | | Discount rate | | | 13.00 | % | Rate used through modeling period | | | | | | | | Loan prepayment speeds | | | 277.00 | % | Weighted-average PSA | | | | | | | | Servicing fees | | | 0.25 | % | of loan balances | | | | | | | | | | | 4.00 | % | of payments are late | | | | | | | | | | | 5.00 | % | late fees assessed | | | | | | | | | | $ | 1.94 | | Miscellaneous fees per account per month | | | | | | | | Servicing costs | | $ | 6.00 | | Monthly servicing cost per account | | | | | | | | | | $ | 24.00 | | Additional monthly servicing cost per loan on loans more than 30 days delinquent | | | | | | | | | | | 1.50 | % | of loans more than 30 days delinquent | | | | | | | | | | | 3.00 | % | annual increase in servicing costs |
| | | | | | | | | | | | | | | Fair Value at | | | | | | | | | | | | 12/31/2019 | | Valuation | | Unobservable | | | | | Method or Value As of | Asset | | (In Thousands) | | Technique | | Input(s) | | | | | 12/31/2019 | Servicing rights | | $ | 1,277 | | Discounted cash flow | | Discount rate | | | 12.50 | % | Rate used through modeling period | | | | | | | | Loan prepayment speeds | | | 183.00 | % | Weighted-average PSA | | | | | | | | Servicing fees | | | 0.25 | % | of loan balances | | | | | | | | | | | 4.00 | % | of payments are late | | | | | | | | | | | 5.00 | % | late fees assessed | | | | | | | | | | $ | 1.94 | | Miscellaneous fees per account per month | | | | | | | | Servicing costs | | $ | 6.00 | | Monthly servicing cost per account | | | | | | | | | | $ | 24.00 | | Additional monthly servicing cost per loan on loans more than 30 days delinquent | | | | | | | | | | | 1.50 | % | of loans more than 30 days delinquent | | | | | | | | | | | 3.00 | % | annual increase in servicing costs |
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Nonrecurring fair value measurements |
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FAIR VALUE MEASUREMENTS AND FAIR VALUES OF FINANCIAL INSTRUMENTS |
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Schedule of inputs and valuation techniques |
| | | | | | | | | | | | | | | | | (Dollars In Thousands) | | | | | | | | | | | | | | | Weighted | | | | | | | Valuation | | | | | | | | | Average | | | | Balance at | | Allowance at | | Fair Value at | | Valuation | | Unobservable | | Discount at | | Asset | | 12/31/2020 | | 12/31/2020 | | 12/31/2020 | | Technique | | Inputs | | 12/31/2020 | | | | | | | | | | | | | | | | | | Impaired loans: | | | | | | | | | | | | | | | | | Residential mortgage loans - first and junior liens | | $ | 1,509 | | $ | 162 | | $ | 1,347 | | Sales comparison | | Discount to appraised value | | 31 | % | Commercial: | | | | | | | | | | | | | | | | | Commercial loans secured by real estate | | | 6,501 | | | 691 | | | 5,810 | | Sales comparison | | Discount to appraised value | | 28 | % | Commercial and industrial | | | 72 | | | 72 | | | 0 | | Liquidation of assets | | Discount to appraised value | | 100 | % | Total impaired loans | | $ | 8,082 | | $ | 925 | | $ | 7,157 | | | | | | | | Foreclosed assets held for sale - real estate: | | | | | | | | | | | | | | | | | Residential (1-4 family) | | $ | 80 | | $ | 0 | | $ | 80 | | Sales comparison | | Discount to appraised value | | 36 | % | Commercial real estate | | | 1,258 | | | 0 | | | 1,258 | | Sales comparison | | Discount to appraised value | | 44 | % | Total foreclosed assets held for sale | | $ | 1,338 | | $ | 0 | | $ | 1,338 | | | | | | | |
| | | | | | | | | | | | | | | | | (Dollars In Thousands) | | | | | | | | | | | | | | | Weighted | | | | | | Valuation | | | | | | | | | Average | | | | Balance at | | Allowance at | | Fair Value at | | Valuation | | Unobservable | | Discount at | | Asset | | 12/31/2019 | | 12/31/2019 | | 12/31/2019 | | Technique | | Inputs | | 12/31/2019 | | | | | | | | | | | | | | | | | | | Impaired loans: | | | | | | | | | | | | | | | | | Residential mortgage loans - first and junior liens | | $ | 732 | | $ | 176 | | $ | 556 | | Sales comparison | | Discount to appraised value | | 30 | % | Commercial: | | | | | | | | | | | | | | | | | Commercial and industrial | | | 106 | | | 89 | | | 17 | | Sales comparison | | Discount to appraised value | | 69 | % | Commercial and industrial | | | 798 | | | 60 | | | 738 | | Liquidation of accounts receivable | | Discount to borrower's financial statement value | | 15 | % | Commercial construction and land | | | 1,261 | | | 678 | | | 583 | | Sales comparison | | Discount to appraised value | | 47 | % | Loans secured by farmland | | | 478 | | | 48 | | | 430 | | Sales comparison | | Discount to appraised value | | 46 | % | Total impaired loans | | $ | 3,375 | | $ | 1,051 | | $ | 2,324 | | | | | | | | Foreclosed assets held for sale - real estate: | | | | | | | | | | | | | | | | | Residential (1-4 family) | | $ | 292 | | $ | 0 | | $ | 292 | | Sales comparison | | Discount to appraised value | | 46 | % | Land | | | 70 | | | 0 | | | 70 | | Sales comparison | | Discount to appraised value | | 53 | % | Commercial real estate | | | 2,524 | | | 0 | | | 2,524 | | Sales comparison | | Discount to appraised value | | 39 | % | Total foreclosed assets held for sale | | $ | 2,886 | | $ | 0 | | $ | 2,886 | | | | | | | |
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