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FAIR VALUE (Tables)
12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below.

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

U.S. Government-sponsored entities

 

$

 

 

$

65,094

 

 

$

 

U.S. Treasury securities

 

 

86,563

 

 

 

 

 

 

 

Mortgage backed securities

 

 

 

 

 

 

 

 

 

Government-sponsored residential mortgage backed securities

 

 

 

 

 

589,172

 

 

 

 

Private label residential mortgage backed securities

 

 

 

 

 

124,664

 

 

 

 

Corporate

 

 

 

 

 

58,652

 

 

 

 

Small Business Administration loan pools

 

 

 

 

 

6,266

 

 

 

 

State and political subdivisions

 

 

 

 

 

74,044

 

 

 

 

Derivative assets:

 

 

 

 

 

 

 

 

 

Derivative assets (included in other assets)

 

 

 

 

 

8,055

 

 

 

 

Cash collateral held by counterparty and netting
   adjustments

 

 

(7,173

)

 

 

 

 

 

Total derivative assets

 

 

(7,173

)

 

 

8,055

 

 

 

 

Other assets:

 

 

 

 

 

 

 

 

 

Equity securities with readily determinable fair value

 

 

1,031

 

 

 

 

 

 

 

Total other assets

 

 

1,031

 

 

 

 

 

 

 

Total assets

 

$

80,421

 

 

$

925,947

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

Derivative liabilities:

 

 

 

 

 

 

 

 

 

Derivative liabilities (included in other liabilities)

 

$

 

 

$

3,546

 

 

$

 

Cash collateral held by counterparty and netting
   adjustments

 

 

97

 

 

 

 

 

 

 

Total derivative liabilities

 

 

97

 

 

 

3,546

 

 

 

 

Total liabilities

 

$

97

 

 

$

3,546

 

 

$

 

 

 

 

December 31, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

U.S. Government-sponsored entities

 

$

 

 

$

33,087

 

 

$

 

U.S. Treasury securities

 

 

89,256

 

 

 

 

 

 

 

Mortgage backed securities

 

 

 

 

 

 

 

 

 

Government-sponsored residential mortgage backed securities

 

 

 

 

 

529,143

 

 

 

 

Private label residential mortgage backed securities

 

 

 

 

 

137,841

 

 

 

 

Corporate

 

 

 

 

 

49,683

 

 

 

 

Small Business Administration loan pools

 

 

 

 

 

7,727

 

 

 

 

State and political subdivisions

 

 

 

 

 

72,911

 

 

 

 

Derivative assets:

 

 

 

 

 

 

 

 

 

Derivative assets (included in other assets)

 

 

 

 

 

7,002

 

 

 

 

Cash collateral held by counterparty and netting
   adjustments

 

 

(6,406

)

 

 

 

 

 

Total derivative assets

 

 

(6,406

)

 

 

7,002

 

 

 

 

Other assets:

 

 

 

 

 

 

 

 

 

Equity securities with readily determinable fair value

 

 

674

 

 

 

 

 

 

 

Total other assets

 

 

674

 

 

 

 

 

 

 

Total assets

 

$

83,524

 

 

$

837,394

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

Derivative liabilities:

 

 

 

 

 

 

 

 

 

Derivative liabilities (included in other liabilities)

 

$

 

 

$

3,656

 

 

$

 

Cash collateral held by counterparty and netting
   adjustments

 

 

(454

)

 

 

 

 

 

 

Total derivative liabilities

 

 

(454

)

 

 

3,656

 

 

 

 

Total liabilities

 

$

(454

)

 

$

3,656

 

 

$

 

Summary of Assets Measured at Fair Value on Non-recurring Basis

Assets measured at fair value on a non-recurring basis are summarized below.

 

 

December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Loans individually evaluated for credit losses:

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

 

 

$

 

 

$

3,375

 

Commercial and industrial

 

 

 

 

 

 

 

 

6,316

 

Residential real estate

 

 

 

 

 

 

 

 

3,525

 

Agricultural real estate

 

 

 

 

 

 

3,040

 

Other

 

 

 

 

 

 

 

 

1,113

 

Other real estate owned:

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

 

 

 

 

 

 

2,173

 

Residential real estate

 

 

 

 

 

 

 

 

25

 

 

 

 

 

December 31, 2023

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Loans individually evaluated for credit losses:

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

 

 

$

 

 

$

1,616

 

Commercial and industrial

 

 

 

 

 

 

 

 

3,706

 

Residential real estate

 

 

 

 

 

 

 

 

6,165

 

Agricultural real estate

 

 

 

 

 

 

2,606

 

Other

 

 

 

 

 

 

 

 

2,442

 

Other real estate owned:

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

 

 

 

 

 

 

1,061

 

Residential real estate

 

 

 

 

 

 

 

 

170

 

Summary of Additional Information about Unobservable Inputs Used in Fair Value Measurement

The following table presents additional information about the unobservable inputs used in the fair value measurement of financial assets measured on a nonrecurring basis that were categorized with Level 3 of the fair value hierarchy.

 

 

Fair
Value

 

 

Valuation
Technique

 

Unobservable
Input

 

Range
(weighted
average)

December 31, 2024

 

 

 

 

 

 

 

 

 

Real estate loans individually evaluated
    for credit losses

 

$

17,369

 

 

Sales Comparison
Approach

 

Adjustments for differences
between comparable sales

 

5% - 44%
(
24%)

 

 

 

 

 

 

 

 

 

 

Other real estate owned individually evaluated
    for credit losses

 

$

2,198

 

 

Sales Comparison
Approach

 

Adjustments for differences
between comparable sales

 

3% - 13%
(
8%)

December 31, 2023

 

 

 

 

 

 

 

 

 

Real estate loans individually evaluated
    for credit losses

 

$

16,535

 

 

Sales Comparison
Approach

 

Adjustments for differences
between comparable sales

 

3% - 34%
(
19%)

 

 

 

 

 

 

 

 

 

 

Other real estate owned individually evaluated
    for credit losses

 

$

1,231

 

 

Sales Comparison
Approach

 

Adjustments for differences
between comparable sales

 

7% - 28%
(
18%)

Carrying Amounts and Estimated Fair Values of Financial Instrument

Carrying amounts and estimated fair values of financial instruments at year end were as follows as of the date indicated.

 

 

December 31, 2024

 

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

383,747

 

 

$

383,747

 

 

$

383,747

 

 

$

 

 

$

 

Available-for-sale securities

 

 

1,004,455

 

 

 

1,004,455

 

 

 

86,563

 

 

 

917,892

 

 

 

 

Held-to-maturity securities

 

 

5,217

 

 

 

5,214

 

 

 

 

 

 

5,214

 

 

 

 

Loans held for sale

 

 

513

 

 

 

513

 

 

 

 

 

 

513

 

 

 

 

Loans, net of allowance for credit losses

 

 

3,457,549

 

 

 

3,405,767

 

 

 

 

 

 

 

 

 

3,405,767

 

Federal Reserve Bank and Federal Home Loan
   Bank stock

 

 

27,875

 

 

 

27,875

 

 

 

 

 

 

27,875

 

 

 

 

Interest receivable

 

 

28,913

 

 

 

28,913

 

 

 

 

 

 

28,913

 

 

 

 

Derivative assets

 

 

8,055

 

 

 

8,055

 

 

 

 

 

 

8,055

 

 

 

 

Cash collateral held by derivative counterparty and
   netting adjustments

 

 

(7,173

)

 

 

(7,173

)

 

 

(7,173

)

 

 

 

 

 

 

Total derivative assets

 

 

882

 

 

 

882

 

 

 

(7,173

)

 

 

8,055

 

 

 

 

Equity securities with readily determinable fair value

 

 

1,031

 

 

 

1,031

 

 

 

1,031

 

 

 

 

 

 

 

Total assets

 

$

4,910,182

 

 

$

4,858,397

 

 

$

464,168

 

 

$

988,462

 

 

$

3,405,767

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

4,374,789

 

 

$

4,370,728

 

 

$

 

 

$

4,370,728

 

 

$

 

Federal funds purchased and retail repurchase
   agreements

 

 

37,246

 

 

 

37,246

 

 

 

 

 

 

37,246

 

 

 

 

Federal Home Loan Bank advances

 

 

178,073

 

 

 

178,073

 

 

 

 

 

 

178,073

 

 

 

 

Subordinated debentures

 

 

23,946

 

 

 

23,946

 

 

 

 

 

 

23,946

 

 

 

 

Subordinated notes

 

 

73,531

 

 

 

73,156

 

 

 

 

 

 

73,156

 

 

 

 

Contractual obligations

 

 

12,067

 

 

 

12,067

 

 

 

 

 

 

12,067

 

 

 

 

Interest payable

 

 

5,032

 

 

 

5,032

 

 

 

 

 

 

5,032

 

 

 

 

Derivative liabilities

 

 

3,546

 

 

 

3,546

 

 

 

 

 

 

3,546

 

 

 

 

Cash collateral held by derivative counterparty and
   netting adjustments

 

 

97

 

 

 

97

 

 

 

97

 

 

 

 

 

 

 

Total derivative liabilities

 

 

3,643

 

 

 

3,643

 

 

 

97

 

 

 

3,546

 

 

 

 

Total liabilities

 

$

4,708,327

 

 

$

4,703,891

 

 

$

97

 

 

$

4,703,794

 

 

$

 

 

 

 

 

December 31, 2023

 

 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

379,099

 

 

$

379,099

 

 

$

379,099

 

 

$

 

 

$

 

Available-for-sale securities

 

 

919,648

 

 

 

919,648

 

 

 

89,256

 

 

 

830,392

 

 

 

 

Held-to-maturity securities

 

 

2,209

 

 

 

2,250

 

 

 

 

 

 

2,250

 

 

 

 

Loans held for sale

 

 

476

 

 

 

476

 

 

 

 

 

 

476

 

 

 

 

Loans, net of allowance for credit losses

 

 

3,289,381

 

 

 

3,227,789

 

 

 

 

 

 

 

 

 

3,227,789

 

Federal Reserve Bank and Federal Home Loan
   Bank stock

 

 

20,608

 

 

 

20,608

 

 

 

 

 

 

20,608

 

 

 

 

Interest receivable

 

 

25,497

 

 

 

25,497

 

 

 

 

 

 

25,497

 

 

 

 

Derivative assets

 

 

7,002

 

 

 

7,002

 

 

 

 

 

 

7,002

 

 

 

 

Cash collateral held by derivative counterparty and
   netting adjustments

 

 

(6,406

)

 

 

(6,406

)

 

 

(6,406

)

 

 

 

 

 

 

Total derivative assets

 

 

596

 

 

 

596

 

 

 

(6,406

)

 

 

7,002

 

 

 

 

Equity securities with readily determinable fair value

 

 

674

 

 

 

674

 

 

 

674

 

 

 

 

 

 

 

Total assets

 

$

4,638,188

 

 

$

4,576,637

 

 

$

462,623

 

 

$

886,225

 

 

$

3,227,789

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

4,145,455

 

 

$

4,140,501

 

 

$

 

 

$

4,140,501

 

 

$

 

Federal funds purchased and retail repurchase
   agreements

 

 

43,582

 

 

 

43,582

 

 

 

 

 

 

43,582

 

 

 

 

Federal Home Loan Bank advances

 

 

100,000

 

 

 

100,000

 

 

 

 

 

 

100,000

 

 

 

 

Federal Reserve Bank borrowings

 

 

140,000

 

 

 

140,000

 

 

 

 

 

 

140,000

 

 

 

 

Subordinated debentures

 

 

23,594

 

 

 

23,594

 

 

 

 

 

 

23,594

 

 

 

 

Subordinated notes

 

 

73,327

 

 

 

71,827

 

 

 

 

 

 

71,827

 

 

 

 

Contractual obligations

 

 

19,315

 

 

 

19,315

 

 

 

 

 

 

19,315

 

 

 

 

Interest payable

 

 

9,180

 

 

 

9,180

 

 

 

 

 

 

9,180

 

 

 

 

Derivative liabilities

 

 

3,656

 

 

 

3,656

 

 

 

 

 

 

3,656

 

 

 

 

Cash collateral held by derivative counterparty and
   netting adjustments

 

 

(454

)

 

 

(454

)

 

 

(454

)

 

 

 

 

 

 

Total derivative liabilities

 

 

3,202

 

 

 

3,202

 

 

 

(454

)

 

 

3,656

 

 

 

 

Total liabilities

 

$

4,557,655

 

 

$

4,551,201

 

 

$

(454

)

 

$

4,551,655

 

 

$