XML 48 R30.htm IDEA: XBRL DOCUMENT v3.20.4
FAIR VALUES OF FINANCIAL INSTRUMENTS
 12 Months Ended
Dec. 31, 2020
FAIR VALUES OF FINANCIAL INSTRUMENTS [Abstract]  
FAIR VALUES OF FINANCIAL INSTRUMENTS
NOTE 22 – FAIR VALUES OF FINANCIAL INSTRUMENTS


Most of our assets and liabilities are considered financial instruments. Many of these financial instruments lack an available trading market and it is our general practice and intent to hold the majority of our financial instruments to maturity. Significant estimates and assumptions were used to determine the fair value of financial instruments. These estimates are subjective in nature, involving uncertainties and matters of judgment, and therefore, fair values may not be a precise estimate. Changes in assumptions could significantly affect the estimates.


Estimated fair values have been determined using available data and methodologies that are considered suitable for each category of financial instrument. For instruments with adjustable interest rates which reprice frequently and without significant credit risk, it is presumed that estimated fair values approximate the recorded book balances.



The estimated recorded book balances and fair values at December 31 follow:

              
Fair Value Using
  
   
Recorded
Book
Balance
    
Fair Value
    
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
    
Significant
Other
Observable
Inputs
(Level 2)
    
Significant
Un-
observable
Inputs
(Level 3)
  
   
(In thousands)
  
2020
                              
Assets
                              
Cash and due from banks
  
$
56,006
    
$
56,006
    
$
56,006
    
$
-
    
$
-
  
Interest bearing deposits
    
62,699
      
62,699
      
62,699
      
-
      
-
  
Securities available for sale
    
1,072,159
      
1,072,159
      
-
      
1,072,159
      
-
  
Federal Home Loan Bank and Federal Reserve Bank Stock
    
18,427
    
NA
    
NA
    
NA
    
NA
  
Net loans and loans held for sale
    
2,790,683
      
2,794,058
      
-
      
92,434
      
2,701,624
  
Accrued interest receivable
    
12,315
      
12,315
      
3
      
3,414
      
8,898
  
Derivative financial instruments
    
16,782
      
16,782
      
-
      
16,782
      
-
  
Liabilities
                                        
Deposits with no stated maturity (1)
  
$
3,198,338
    
$
3,198,338
    
$
3,198,338
    
$
-
    
$
-
  
Deposits with stated maturity (1)
    
439,017
      
441,457
      
-
      
441,457
      
-
  
Other borrowings
    
30,012
      
30,844
      
-
      
30,844
      
-
  
Subordinated debt
    
39,281
      
41,417
      
-
      
41,417
      
-
  
Subordinated debentures
    
39,524
      
30,265
      
-
      
30,265
      
-
  
Accrued interest payable
    
601
      
601
      
59
      
542
      
-
  
Derivative financial instruments
    
11,754
      
11,754
      
-
      
11,754
      
-
  
2019
                                        
Assets
                                        
Cash and due from banks
  
$
53,295
    
$
53,295
    
$
53,295
    
$
-
    
$
-
  
Interest bearing deposits
    
12,009
      
12,009
      
12,009
      
-
      
-
  
Interest bearing deposits - time
    
350
      
350
      
-
      
350
      
-
  
Securities available for sale
    
518,400
      
518,400
      
-
      
518,400
      
-
  
Federal Home Loan Bank and Federal Reserve Bank Stock
    
18,359
    
NA
    
NA
    
NA
    
NA
  
Net loans and loans held for sale
    
2,768,675
      
2,768,817
      
-
      
69,800
      
2,699,017
  
Accrued interest receivable
    
10,108
      
10,108
      
8
      
1,752
      
8,348
  
Derivative financial instruments
    
5,464
      
5,464
      
-
      
5,464
      
-
  
                                         
Liabilities
                                        
Deposits with no stated maturity (1)
  
$
2,427,190
    
$
2,427,190
    
$
2,427,190
    
$
-
    
$
-
  
Deposits with stated maturity (1)
    
609,537
      
610,235
      
-
      
610,235
      
-
  
Other borrowings
    
88,646
      
88,680
      
-
      
88,680
      
-
  
Subordinated debentures
    
39,456
      
33,149
      
-
      
33,149
      
-
  
Accrued interest payable
    
1,296
      
1,296
      
97
      
1,199
      
-
  
Derivative financial instruments
    
4,402
      
4,402
      
-
      
4,402
      
-
  

NA – Not applicable
(1)
Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $518.400 million and $388.369 million at December 31, 2020 and 2019, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $37.785 million and $42.658 million at December 31, 2020 and 2019, respectively.


The fair values for commitments to extend credit and standby letters of credit are estimated to approximate their aggregate book balance, which is nominal, and therefore are not disclosed.



Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale the entire holdings of a particular financial instrument.



Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, the value of future earnings attributable to off-balance sheet activities and the value of assets and liabilities that are not considered financial instruments.



Fair value estimates for deposit accounts do not include the value of the core deposit intangible asset resulting from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market.