FAIR VALUE OF ASSETS AND LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2019

FAIR VALUE OF ASSETS AND LIABILITIES

Schedule of assets and liabilities measured at fair value on a recurring basis

							Total
	Level 1		Level 2		Level 3		Fair Value
	(in thousands)
December 31, 2019
Assets
Securities available for sale	$	—	$	239,473	$	—	$	239,473
Loans held for sale		—		110,552		—		110,552
Mortgage servicing rights		—		17,150		—		17,150
Derivative loan commitments		—		—		1,385		1,385
Forward loan sale commitments		—		—		26		26
Interest rate swaps		—		15,092		—		15,092
	$	—	$	382,267	$	1,411	$	383,678
Liabilities
Derivative loan commitments	$	—	$	—	$	174	$	174
Forward loan sale commitments		—		—		158		158
Interest rate swaps		—		15,092		—		15,092
	$	—	$	15,092	$	332	$	15,424
December 31, 2018
Assets
Securities available for sale	$	—	$	209,293	$	—	$	209,293
Loans held for sale		—		42,107		—		42,107
Mortgage servicing rights		—		22,217		—		22,217
Derivative loan commitments		—		—		1,261		1,261
Interest rate swaps		—		3,193		—		3,193
	$	—	$	276,810	$	1,261	$	278,071
Liabilities
Derivative loan commitments	$	—	$	—	$	112	$	112
Forward loan sale commitments		—		—		518		518
Interest rate swaps		—		3,193		—		3,193
	$	—	$	3,193	$	630	$	3,823

Schedule of changes in Level 3 assets measured at fair value on a recurring basis

	Year Ended December 31,
	2019		2018		2017
	(in thousands)
Assets:  Derivative and Forward Loan Sale Commitments:
Balance at beginning of year	$	1,261	$	1,093	$	2,722
Total gains (losses) included in net income (1)		150		168		(1,629)
Balance at end of year	$	1,411	$	1,261	$	1,093
Changes in unrealized gains relating to instruments at year end	$	1,411	$	1,261	$	1,093

Schedule of changes in Level 3 liabilities measured at fair value on a recurring basis

Liabilities:  Derivative and Forward Loan Sale Commitments:
Balance at beginning of year	$	(630)	$	(119)	$	(576)
Total gains (losses) included in net income (1)		298		(511)		457
Balance at end of year	$	(332)	$	(630)	$	(119)
Changes in unrealized losses relating to instruments at year end	$	(332)	$	(630)	$	(119)
(1)  Included in mortgage banking income on the Consolidated Statements of Income.

Schedule of assets measured at fair value on a non-recurring basis

The following table summarizes the fair value hierarchy used to determine each adjustment and the carrying value of the related individual assets. 

	December 31,
	2019						2018
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
	(in thousands)
Asset held for sale	$	—	$	—	$	8,536	$	—	$	—	$	—
Impaired loans		—		—		3,878		—		—		2,086
Other real estate owned and repossessed assets		—		—		719		—		—		749
	$	—	$	—	$	13,133	$	—	$	—	$	2,835

Losses in the following table represent the amount of the fair value adjustments recorded during the year on the carrying value of the assets held at December 31, 2019 and 2018, respectively.

	Year Ended December 31,
	2019		2018
	(in thousands)
Asset held for sale	$	482	$	—
Impaired loans		633		409
Other real estate owned and repossessed assets		—		88
	$	1,115	$	497

Schedule of estimated fair values and related carrying amounts of financial instruments

	December 31, 2019
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets:
Cash and cash equivalents	$	211,616	$	211,616	$	—	$	—	$	211,616
Securities available for sale		239,473		—		239,473		—		239,473
Securities held to maturity		26,372		—		26,927		—		26,927
Federal Home Loan Bank stock		17,121		—		—		17,121		17,121
Loans held for sale		110,552		—		110,552		—		110,552
Loans, net		3,147,498		—		—		3,176,442		3,176,442
Retirement plan annuities		13,333		—		—		13,333		13,333
Mortgage servicing rights		17,150		—		17,150		—		17,150
Accrued interest receivable		9,807		—		9,807		—		9,807
Financial liabilities:
Deposits		2,942,873		—		—		2,943,899		2,943,899
Borrowed funds		354,132		—		354,881		—		354,881
Subordinated debt		33,907		—		—		34,619		34,619
Mortgagors' escrow accounts		6,053		—		—		6,053		6,053
Accrued interest payable		1,669		—		1,669		—		1,669
Derivative loan commitments:
Assets		1,385		—		—		1,385		1,385
Liabilities		174		—		—		174		174
Interest rate swap agreements:
Assets		15,092		—		15,092		—		15,092
Liabilities		15,092		—		15,092		—		15,092
Forward loan sale commitments:
Assets		26		—		—		26		26
Liabilities		158		—		—		158		158

	December 31, 2018
	Carrying		Fair Value
	Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
Financial assets:
Cash and cash equivalents	$	105,521	$	105,521	$	—	$	—	$	105,521
Securities available for sale		209,293		—		209,293		—		209,293
Securities held to maturity		44,688		—		44,706		—		44,706
Federal Home Loan Bank stock		24,969		—		—		24,969		24,969
Loans held for sale		42,107		—		42,107		—		42,107
Loans, net		2,964,852		—		—		2,959,333		2,959,333
Retirement plan annuities		12,931		—		—		12,931		12,931
Mortgage servicing rights		22,217		—		22,217		—		22,217
Accrued interest receivable		9,996		—		9,996		—		9,996
Financial liabilities:
Deposits		2,685,061		—		—		2,678,989		2,678,989
Borrowed funds		519,936		—		518,224		—		518,224
Subordinated debt		33,799		—		—		34,338		34,338
Mortgagors' escrow accounts		4,551		—		—		4,551		4,551
Accrued interest payable		1,611		—		1,611		—		1,611
Derivative loan commitments:
Assets		1,261		—		—		1,261		1,261
Liabilities		112		—		—		112		112
Interest rate swap agreements:
Assets		3,193		—		3,193		—		3,193
Liabilities		3,193		—		3,193		—		3,193
Forward loan sale commitments:
Assets		—		—		—		—		—
Liabilities		518		—		—		518		518