XML 67 R50.htm IDEA: XBRL DOCUMENT v3.22.4
FAIR VALUE (Tables)
12 Months Ended
Dec. 31, 2022
Fair Value Disclosures  
Assets and Liabilities Measured at Fair Value on Recurring Basis

Fair Value Measurements at 

 

December 31, 2022 Using:

 

    

Quoted Prices in

    

Significant

    

    

    

    

 

Active Markets

Other

Significant

 

for Identical

Observable

Unobservable

Total

 

Assets

Inputs

Inputs

Fair

 

(in thousands)

(Level 1)

(Level 2)

(Level 3)

Value

 

Financial assets:

Available-for-sale debt securities:

U.S. Treasury securities and U.S. Government agencies

$

193,385

$

217,756

$

$

411,141

Private label mortgage-backed security

 

 

 

2,127

 

2,127

Mortgage-backed securities - residential

 

 

171,873

 

 

171,873

Collateralized mortgage obligations

 

 

21,368

 

 

21,368

Corporate bonds

10,001

10,001

Trust preferred security

 

 

 

3,855

 

3,855

Total available-for-sale debt securities

$

193,385

$

420,998

$

5,982

$

620,365

Equity securities with readily determinable fair value:

Freddie Mac preferred stock

$

$

111

$

$

111

Total equity securities with readily determinable fair value

$

$

111

$

$

111

Mortgage loans held for sale

$

$

1,302

$

$

1,302

Consumer loans held for sale

4,706

4,706

Consumer loans held for investment

2

2

Rate lock loan commitments

 

 

2

 

 

2

Mandatory forward contracts

Interest rate swap agreements

8,127

8,127

Financial liabilities:

Rate lock loan commitments

$

$

$

$

Mandatory forward contracts

67

67

Interest rate swap agreements

8,127

8,127

Fair Value Measurements at

 

December 31, 2021 Using:

 

    

Quoted Prices in

    

Significant

    

    

    

    

 

Active Markets

Other

Significant

 

for Identical

Observable

Unobservable

Total

 

Assets

Inputs

Inputs

Fair

 

(in thousands)

(Level 1)

(Level 2)

(Level 3)

Value

 

Financial assets:

Available-for-sale debt securities:

U.S. Treasury securities and U.S. Government agencies

$

70,112

$

167,347

$

$

237,459

Private label mortgage-backed security

 

 

 

2,731

 

2,731

Mortgage-backed securities - residential

 

 

210,749

 

 

210,749

Collateralized mortgage obligations

 

 

30,294

 

 

30,294

Corporate bonds

10,046

10,046

Trust preferred security

 

 

 

3,847

 

3,847

Total available-for-sale debt securities

$

70,112

$

418,436

$

6,578

$

495,126

Equity securities with readily determinable fair value:

Freddie Mac preferred stock

$

$

170

$

$

170

Community Reinvestment Act mutual fund

 

2,450

 

 

 

2,450

Total equity securities with readily determinable fair value

$

2,450

$

170

$

$

2,620

Mortgage loans held for sale

$

$

29,393

$

$

29,393

Consumer loans held for sale

19,747

19,747

Consumer loans held for investment

170

170

Rate lock loan commitments

 

 

1,404

 

 

1,404

Mandatory forward contracts

66

66

Interest rate swap agreements

 

 

5,786

 

 

5,786

Financial liabilities:

Interest rate swap agreements

5,786

 

5,786

Assets Measured at Fair Value on a Non-Recurring Basis

Fair Value Measurements at

December 31, 2022 Using:

    

Quoted Prices in

    

Significant

    

    

    

Active Markets

Other

Significant

for Identical

Observable

Unobservable

Total

Assets

Inputs

Inputs

Fair

(in thousands)

(Level 1)

(Level 2)

(Level 3)

Value

Collateral-dependent loans:

Residential real estate:

Owner occupied

$

$

$

1,456

$

1,456

Commercial real estate

 

 

 

906

 

906

Total collateral-dependent loans*

$

$

$

2,362

$

2,362

Other real estate owned:

Commercial real estate

$

$

$

1,581

$

1,581

Total other real estate owned

$

$

$

1,581

$

1,581

Fair Value Measurements at

December 31, 2021 Using:

    

Quoted Prices in

    

Significant

    

    

    

Active Markets

Other

Significant

for Identical

Observable

Unobservable

Total

Assets

Inputs

Inputs

Fair

(in thousands)

(Level 1)

(Level 2)

(Level 3)

Value

Collateral-dependent loans:

Residential real estate:

Owner occupied

$

$

$

1,626

$

1,626

Commercial real estate

 

 

 

2,841

 

2,841

Home equity

 

 

 

378

 

378

Total collateral-dependent loans*

$

$

$

4,845

$

4,845

Other real estate owned:

Residential real estate

$

$

$

1,792

$

1,792

Total other real estate owned

$

$

$

1,792

$

1,792

* The difference between the carrying value and the fair value of collateral dependent or impaired loans measured at fair value is reconciled in a subsequent table of this Footnote.

Provisions for loss on collateral dependent impaired loans

    

 

Years Ended December 31, (in thousands)

2022

    

2021

    

2020

Provision on collateral-dependent loans

$

7

$

960

$

559

Other Real Estate Owned

    

Years Ended December 31, (in thousands)

    

2022

    

2021

    

2020

 

Other real estate owned carried at fair value

$

1,581

$

1,792

$

2,003

Other real estate owned carried at cost

 

 

 

496

Total carrying value of other real estate owned

$

1,581

$

1,792

$

2,499

Other real estate owned write-downs during the years ended

$

211

$

211

$

105

Carrying amount and estimated fair values of financial instruments

Fair Value Measurements at

 

December 31, 2022:

 

    

    

    

    

    

    

    

    

Total

 

Carrying

Fair

 

(in thousands)

Value

Level 1

Level 2

Level 3

Value

 

Assets:

Cash and cash equivalents

$

313,689

$

313,689

$

$

$

313,689

Available-for-sale debt securities

 

620,365

 

193,385

 

420,998

 

5,982

 

620,365

Held-to-maturity debt securities

 

87,386

 

 

87,357

 

 

87,357

Equity securities with readily determinable fair values

111

111

111

Mortgage loans held for sale, at fair value

 

1,302

 

 

1,302

 

 

1,302

Consumer loans held for sale, at fair value

4,706

4,706

4,706

Consumer loans held for sale, at the lower of cost or fair value

13,169

13,169

13,169

Loans, net

 

4,445,389

 

 

 

4,276,423

 

4,276,423

Federal Home Loan Bank stock

 

9,146

 

 

 

 

NA

Accrued interest receivable

 

13,572

 

 

2,462

 

11,110

 

13,572

Mortgage servicing rights

8,769

17,592

17,592

Mandatory forward contracts

Interest rate swap agreements

8,127

8,127

8,127

Liabilities:

Noninterest-bearing deposits

$

1,908,768

$

$

1,908,768

$

$

1,908,768

Transaction deposits

 

2,398,853

 

 

2,398,853

 

 

2,398,853

Time deposits

 

230,224

 

 

223,912

 

 

223,912

Securities sold under agreements to repurchase and other short-term borrowings

 

216,956

 

 

216,956

 

 

216,956

Federal Home Loan Bank advances

 

95,000

 

 

93,044

 

 

93,044

Accrued interest payable

 

239

 

 

239

 

 

239

Rate lock loan commitments

Interest rate swap agreements

8,127

8,127

8,127

NA - Not applicable

Fair Value Measurements at

 

December 31, 2021:

 

    

    

    

    

    

    

    

    

    

Total

 

Carrying

Fair

 

(in thousands)

Value

Level 1

Level 2

Level 3

Value

 

Assets:

Cash and cash equivalents

$

756,971

$

756,971

$

$

$

756,971

Available-for-sale debt securities

 

495,126

 

70,112

 

418,436

 

6,578

 

495,126

Held-to-maturity debt securities

 

44,299

 

 

44,764

 

 

44,764

Equity securities with readily determinable fair values

2,620

2,450

170

2,620

Mortgage loans held for sale, at fair value

 

29,393

 

 

29,393

 

 

29,393

Consumer loans held for sale, at fair value

19,747

19,747

19,747

Consumer loans held for sale, at the lower of cost or fair value

2,937

2,937

2,937

Loans, net

 

4,431,985

 

 

 

4,445,244

 

4,445,244

Federal Home Loan Bank stock

 

10,311

 

 

 

 

NA

Accrued interest receivable

 

9,877

 

 

1,441

 

8,436

 

1,441

Mortgage servicing rights

9,196

11,540

11,540

Rate lock loan commitments

1,404

1,404

1,404

Mandatory forward contracts

66

66

66

Interest rate swap agreements

5,786

5,786

5,786

Liabilities:

Noninterest-bearing deposits

$

1,989,679

$

$

1,989,679

$

$

1,989,679

Transaction deposits

 

2,553,424

 

 

2,553,424

 

 

2,553,424

Time deposits

 

296,213

 

 

298,236

 

 

298,236

Securities sold under agreements to repurchase and other short-term borrowings

 

290,967

 

 

290,967

 

 

290,967

Federal Home Loan Bank advances

 

25,000

 

 

25,000

 

 

25,000

Accrued interest payable

 

159

 

 

159

 

 

159

Interest rate swap agreements

5,786

5,786

5,786

NA - Not applicable

Nonrecurring basis  
Fair Value Disclosures  
Fair value inputs quantitative information

    

    

    

    

    

    

    

Range

Fair

Valuation

Unobservable

(Weighted

December 31, 2022 (dollars in thousands)

Value

Technique

Inputs

Average)

Collateral-dependent loans - residential real estate owner occupied

$

1,456

 

Sales comparison approach

 

Adjustments determined for differences between comparable sales

 

0% - 41% (11%)

Collateral-dependent loans - commercial real estate

$

906

 

Sales comparison approach

 

Adjustments determined for differences between comparable sales

 

16% (16%)

Other real estate owned - commercial real estate

$

1,581

 

Sales comparison approach

 

Adjustments determined for differences between comparable sales

 

39% (39%)

    

    

    

    

    

    

    

Range

Fair

Valuation

Unobservable

(Weighted

December 31, 2021 (dollars in thousands)

Value

Technique

Inputs

Average)

Collateral-dependent loans - residential real estate owner occupied

$

1,626

 

Sales comparison approach

 

Adjustments determined for differences between comparable sales

 

0% - 51% (10%)

Collateral-dependent loans - commercial real estate

$

2,841

 

Sales comparison approach

 

Adjustments determined for differences between comparable sales

 

12% - 13% (12%)

Collateral-dependent loans - home equity

$

378

 

Sales comparison approach

 

Adjustments determined for differences between comparable sales

 

2%-4% (3%)

Other real estate owned - commercial real estate

$

1,792

 

Sales comparison approach

 

Adjustments determined for differences between comparable sales

 

33% (33%)

Private label mortgage backed security  
Fair Value Disclosures  
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs

Years Ended December 31, (in thousands)

    

2022

    

2021

    

2020

 

Balance, beginning of period

$

2,731

$

2,957

$

3,495

Total gains or losses included in earnings:

Net change in unrealized gain

 

(29)

 

63

 

(35)

Principal paydowns

 

(575)

 

(289)

 

(503)

Balance, end of period

$

2,127

$

2,731

$

2,957

Private label mortgage backed security | Recurring basis  
Fair Value Disclosures  
Fair value inputs quantitative information

    

Fair

    

Valuation

    

    

    

 

December 31, 2022 (dollars in thousands)

Value

Technique

Unobservable Inputs

Range

 

Private label mortgage-backed security

$

2,127

 

Discounted cash flow

 

(1) Constant prepayment rate

 

4.5% - 4.7%

 

(2) Probability of default

 

1.8% - 9.3%

 

(3) Loss severity

 

25% - 35%

    

Fair

    

Valuation

    

    

    

 

December 31, 2021 (dollars in thousands)

Value

Technique

Unobservable Inputs

Range

 

Private label mortgage-backed security

$

2,731

 

Discounted cash flow

 

(1) Constant prepayment rate

 

4.5% - 5.7%

 

(2) Probability of default

 

1.8% - 9.3%

 

(3) Loss severity

 

50% - 75%

Trust Preferred Securities  
Fair Value Disclosures  
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs

    

Years Ended December 31, (in thousands)

2022

    

2021

    

2020

Balance, beginning of period

$

3,847

$

3,800

$

4,000

Total gains or losses included in earnings:

Discount accretion

57

53

56

Net change in unrealized gain

 

(49)

 

(6)

 

(256)

Balance, end of period

$

3,855

$

3,847

$

3,800

Mortgage Loans Held for Sale  
Fair Value Disclosures  
Schedule of aggregate fair value, contractual balance and unrealized gain

December 31, (in thousands)

    

 

2022

    

2021

 

Aggregate fair value

$

1,302

$

29,393

Contractual balance

 

1,265

 

28,668

Unrealized (loss) gain

 

37

 

725

Schedule of gains and losses from changes in fair value included in earnings

    

Years Ended December 31, (in thousands)

2022

    

2021

    

2020

 

Interest income

$

519

$

1,081

$

1,362

Change in fair value

 

(688)

 

(1,361)

 

1,552

Total included in earnings

$

(169)

$

(280)

$

2,914

Consumer loans  
Fair Value Disclosures  
Schedule of aggregate fair value, contractual balance and unrealized gain

December 31, (in thousands)

    

2022

2021

Aggregate fair value

$

4,706

$

19,747

Contractual balance

 

4,734

 

19,633

Unrealized (loss) gain

 

(28)

 

114

Schedule of gains and losses from changes in fair value included in earnings

Years Ended December 31, (in thousands)

2022

    

2021

    

2020

Interest income

$

9,970

$

7,708

$

1,808

Change in fair value

 

(142)

 

100

 

9

Total included in earnings

$

9,828

$

7,808

$

1,817

Consumer loans | Nonrecurring basis  
Fair Value Disclosures  
Reconciliation of the Bank's investments measured at fair value on a recurring basis using significant unobservable inputs

    

Fair

    

Valuation

    

    

    

December 31, 2022 (dollars in thousands)

Value

Technique

Unobservable Inputs

Rate

Consumer loans held for sale

$

4,706

 

Contract Terms

 

(1) Net Premium

 

0.15%

 

(2) Discounted Sales

 

10.00%

    

Fair

    

Valuation

    

    

    

December 31, 2021 (dollars in thousands)

Value

Technique

Unobservable Inputs

Rate

Consumer loans held for sale

$

19,747

 

Contract Terms

 

(1) Net Premium

 

1.4%

 

(2) Discounted Sales

 

5.00%