XML 70 R56.htm IDEA: XBRL DOCUMENT v3.22.4
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Schedule of Estimated Fair Values Estimated fair values as of the periods indicated are as follows:
 December 31, 2022December 31, 2021
(In Thousands)Carrying AmountFair  ValueCarrying AmountFair  Value
Financial assets: 
Level 1 inputs: 
     Cash, due from banks and deposits in other banks$259,350 $259,350 $645,827 $645,827 
     Investment securities available for sale356,837 356,837 141,531 141,531 
     Marketable equity securities10,740 10,740 8,420 8,420 
Level 2 inputs: 
     Investment securities available for sale320,192 320,192 285,153 285,153 
     Investment in Federal Home Loan Bank Stock3,816 3,816 3,107 3,107 
     Loans held for sale27,538 27,538 73,650 73,650 
     Accrued interest receivable9,937 9,937 6,846 6,846 
     Interest rate swaps14,179 14,179 6,030 6,030 
 Retail interest rate contracts— — 166 166 
Level 3 inputs: 
     Investment securities held to maturity36,750 32,639 20,000 19,164 
     Loans 1,501,785 1,408,350 1,413,886 1,396,486 
     Purchased receivables, net19,994 19,994 6,987 6,987 
     Interest rate lock commitments440 440 1,387 1,387 
     Mortgage servicing rights18,635 18,635 13,724 13,724 
     Commercial servicing rights2,129 2,129 1,084 1,084 
Financial liabilities: 
Level 2 inputs: 
     Deposits$2,387,211 2,383,975 $2,421,631 $2,422,215 
     Borrowings14,095 12,382 14,508 14,727 
     Accrued interest payable54 54 31 31 
     Interest rate swaps12,725 12,725 6,985 6,985 
Retail interest rate contracts— — 
Level 3 inputs:
     Junior subordinated debentures10,310 11,266 10,310 9,727 
Schedule of Assets And Liabilities Measured At Fair Value On A Recurring Basis The following table sets forth the balances as of the periods indicated of assets measured at fair value on a recurring basis:
(In Thousands)TotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
December 31, 2022    
Assets:
    Available for sale securities    
    U.S. Treasury and government sponsored entities$595,161 $333,193 $261,968 $— 
    Municipal securities795 — 795 — 
    Corporate bonds23,644 23,644 — — 
    Collateralized loan obligations57,429 — 57,429 — 
           Total available for sale securities$677,029 $356,837 $320,192 $— 
    Marketable equity securities$10,740 $10,740 $— $— 
           Total marketable equity securities$10,740 $10,740 $— $— 
Interest rate swaps$14,178 $— $14,178 $— 
Interest rate lock commitments440 — — 440 
Mortgage servicing rights18,635 — — 18,635 
Commercial servicing rights2,129 — — 2,129 
           Total other assets$35,382 $— $14,178 $21,204 
Liabilities:
Interest rate swaps$12,725 $— $12,725 $— 
Retail interest rate contracts— — 
           Total other liabilities$12,728 $— $12,728 $— 
December 31, 2021    
Assets:
    Available for sale securities    
    U.S. Treasury and government sponsored entities$341,480 $115,686 $225,794 $— 
    Municipal securities840 — 840 — 
    Corporate bonds32,946 25,845 7,101 — 
    Collateralized loan obligations51,418 — 51,418 — 
           Total available for sale securities$426,684 $141,531 $285,153 $— 
    Marketable equity securities$8,420 $8,420 $— $— 
           Total marketable equity securities$8,420 $8,420 $— $— 
Interest rate swaps$6,030 $— $6,030 $— 
Interest rate lock commitments1,387 — — 1,387 
Mortgage servicing rights13,724 — — 13,724 
Commercial servicing rights1,084 — — 1,084 
Retail interest rate contracts166 — 166 — 
           Total other assets$22,391 $— $6,196 $16,195 
Liabilities:
   Interest rate swaps$6,985 $— $6,985 $— 
           Total other liabilities$6,985 $— $6,985 $— 
Fair Value, Assets Measured on Recurring Basis using Significant Unobservable Inputs The following table provides a reconciliation of the assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the years ended December 31, 2022 and 2021:
(In Thousands)Beginning balanceChange included in earningsPurchases and issuancesSales and settlementsEnding balance
December 31, 2022 
Interest rate lock commitments$1,387 ($1,515)$12,140 ($11,572)$440 
Mortgage servicing rights13,724 288 4,623 — 18,635 
Commercial servicing rights1,084 809 236 — 2,129 
Total$16,195 ($418)$16,999 ($11,572)$21,204 
December 31, 2021
Interest rate lock commitments$4,034 ($3,389)$28,229 ($27,487)$1,387 
Mortgage servicing rights11,218 (3,582)6,088 — 13,724 
Commercial servicing rights1,310 (437)211 — 1,084 
Total$16,562 ($7,408)$34,528 ($27,487)$16,195 
Fair Value, Assets Measured on Nonrecurring Basis As of and for the years ending December 31, 2022 and 2021, except for certain assets as shown in the following table, no impairment or valuation adjustment was recognized for assets recognized at fair value on a nonrecurring basis. For loans individually measured for credit losses, the Company classifies fair value measurements using observable inputs, such as external appraisals, as Level 2 valuations in the fair value hierarchy, and unobservable inputs, such as in-house evaluations, as Level 3 valuations in the fair value hierarchy.    
(In Thousands)TotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
December 31, 2022    
  Loans individually measured for credit losses$— $— $— $— 
Total$— $— $— $— 
December 31, 2021    
  Loans individually measured for credit losses$— $— $— $— 
Total$— $— $— $— 

    The following table presents the (gains) losses resulting from nonrecurring fair value adjustments for the periods ended December 31, 2022, 2021 and 2020, respectively:
(In Thousands)202220212020
  Loans individually measured for credit losses$— ($13)($4)
Total (income) loss from nonrecurring measurements$— ($13)($4)
Schedule of Valuation Assumptions The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring and nonrecurring basis at December 31, 2022 and 2021:
Financial InstrumentValuation TechniqueUnobservable InputWeighted Average or Rate Range
December 31, 2022
Interest rate lock commitmentExternal pricing modelPull through rate93.18 %
Mortgage servicing rightsDiscounted cash flowConstant prepayment rate
6.62% - 7.43%
Discount rate
11.25%
Commercial servicing rightsDiscounted cash flowConstant prepayment rate
4.19% - 22.87%
Discount rate12.00 %
December 31, 2021
Interest rate lock commitmentExternal pricing modelPull through rate93.27 %
Mortgage servicing rightsDiscounted cash flowConstant prepayment rate
9.25% - 14.21%
Discount rate
8.00%
Commercial servicing rightsDiscounted cash flowConstant prepayment rate
12.30% - 16.57%
Discount rate9.94 %