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Fair Values of Financial Instruments
 3 Months Ended
Mar. 31, 2022
Fair Values of Financial Instruments [Abstract]  
Fair Values of Financial Instruments
12.
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 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)
  
March 31, 2022
                              
Assets
                              
Cash and due from banks
  
$
46,600
    
$
46,600
    
$
46,600
    
$
-
    
$
-
  
Interest bearing deposits
    
63,221
      
63,221
      
63,221
      
-
      
-
  
Securities available for sale
    
1,400,137
      
1,400,137
      
-
      
1,400,137
      
-
  
Federal Home Loan Bank and Federal
                                       
Reserve Bank Stock
    
17,653
    
NA
    
NA
    
NA
    
NA
  
Net loans and loans held for sale
    
2,987,952
      
2,858,273
      
-
      
29,514
      
2,828,759
  
Accrued interest receivable
    
12,815
      
12,815
      
2
      
6,136
      
6,677
  
Derivative financial instruments
    
20,557
      
20,557
      
-
      
20,557
      
-
  
                                         
Liabilities
                                        
Deposits with no stated maturity (1)
  
$
3,867,260
    
$
3,867,260
    
$
3,867,260
    
$
-
    
$
-
  
Deposits with stated maturity (1)
    
338,238
      
351,269
      
-
      
351,269
      
-
  
Other borrowings
    
30,006
      
30,003
      
-
      
30,003
      
-
  
Subordinated debt
    
39,376
      
44,292
      
-
      
44,292
      
-
  
Subordinated debentures
    
39,609
      
35,651
      
-
      
35,651
      
-
  
Accrued interest payable
    
1,133
      
1,133
      
68
      
1,065
      
-
  
Derivative financial instruments
    
9,045
      
9,045
      
-
      
9,045
      
-
  
                                         
December 31, 2021
                                        
Assets
                                        
Cash and due from banks
  
$
51,069
    
$
51,069
    
$
51,069
    
$
-
    
$
-
  
Interest bearing deposits
    
58,404
      
58,404
      
58,404
      
-
      
-
  
Securities available for sale
    
1,412,830
      
1,412,830
      
-
      
1,412,830
      
-
  
Federal Home Loan Bank and Federal
                                       
Reserve Bank Stock
    
18,427
    
NA
    
NA
    
NA
    
NA
  
Net loans and loans held for sale
    
2,948,074
      
2,931,079
      
35,233
      
55,470
      
2,840,376
  
Accrued interest receivable
    
12,865
      
12,865
      
1
      
6,028
      
6,836
  
Derivative financial instruments
    
12,283
      
12,283
      
-
      
12,283
      
-
  
                                         
Liabilities
                                        
Deposits with no stated maturity (1)
  
$
3,781,298
    
$
3,781,298
    
$
3,781,298
    
$
-
    
$
-
  
Deposits with stated maturity (1)
    
335,792
      
336,006
      
-
      
336,006
      
-
  
Other borrowings
    
30,009
      
30,155
      
-
      
30,155
      
-
  
Subordinated debt
    
39,357
      
44,999
      
-
      
44,999
      
-
  
Subordinated debentures
    
39,592
      
33,866
      
-
      
33,866
      
-
  
Accrued interest payable
    
497
      
497
      
67
      
430
      
-
  
Derivative financial instruments
    
5,961
      
5,961
      
-
      
5,961
      
-
  

(1)
Deposits with no stated maturity include reciprocal deposits with a recorded book balance of $576.421 million and $562.210 million at March 31, 2022 and December 31, 2021, respectively. Deposits with a stated maturity include reciprocal deposits with a recorded book balance of $28.911 million and $24.416 million at March 31, 2022 and December 31, 2021, 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.