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Disclosures of Fair Values of Financial Instruments (Tables)
12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Assets Measured at Fair Value on Recurring Basis

The following table presents the Company’s assets that are measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall as of December 31, 2021 and 2020 (in thousands):

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

 

 

 

 

Quoted Prices in

 

 

Significant

 

 

Significant

 

 

 

 

 

 

 

Active Markets

 

 

Other

 

 

Unobservable

 

 

 

 

 

 

 

for Identical

 

 

Observable

 

 

Inputs

 

 

 

Fair Value

 

 

Assets (Level 1)

 

 

Inputs (Level 2)

 

 

(Level 3)

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities and obligations of U.S. government corporations and agencies

 

$

203,815

 

 

$

 

 

$

203,815

 

 

$

 

Obligations of states and political subdivisions

 

 

395,457

 

 

 

 

 

 

395,358

 

 

 

99

 

Mortgage-backed securities

 

 

791,038

 

 

 

 

 

 

791,038

 

 

 

 

Other securities

 

 

31,112

 

 

 

 

 

 

31,112

 

 

 

 

Total available-for-sale securities

 

 

1,421,422

 

 

 

 

 

 

1,421,323

 

 

 

99

 

Equity securities

 

 

397

 

 

 

397

 

 

 

-

 

 

 

 

Derivative assets: interest rate swaps

 

 

809

 

 

 

 

 

 

809

 

 

 

 

Total assets

 

$

1,422,628

 

 

$

397

 

 

$

1,422,132

 

 

$

99

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities: interest swaps

 

$

1,476

 

 

$

 

 

$

1,476

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities and obligations of U.S. government corporations and agencies

 

$

127,069

 

 

$

 

 

$

127,069

 

 

$

 

Obligations of states and political subdivisions

 

 

249,844

 

 

 

 

 

 

249,050

 

 

 

794

 

Mortgage-backed securities

 

 

491,348

 

 

 

 

 

 

491,348

 

 

 

 

Other securities

 

 

10,979

 

 

 

 

 

 

10,979

 

 

 

 

Total available-for-sale securities

 

 

879,240

 

 

 

 

 

 

878,446

 

 

 

794

 

Equity securities

 

 

218

 

 

 

218

 

 

 

193

 

 

 

0

 

Derivative assets: interest rate swaps

 

 

1,399

 

 

 

 

 

 

1,399

 

 

 

 

Total assets

 

$

880,857

 

 

$

218

 

 

$

880,038

 

 

$

794

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities: interest swaps

 

$

2,892

 

 

$

 

 

$

2,892

 

 

$

 

Fair Value of Assets Measured on a Recurring Basis Using Significant Unobservable Inputs

 

The change in fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2021 and 2020 is summarized as follows (in thousands):

 

 

Obligations of State and Political

 

 

 

Subdivisions

 

 

 

December 31,

2021

 

 

December 31,

2020

 

Beginning balance

 

$

794

 

 

$

973

 

Transfers into Level 3

 

 

 

 

 

 

Transfers out of Level 3

 

 

 

 

 

 

Total gains or losses

 

 

 

 

 

 

 

 

Included in net income

 

 

3

 

 

 

5

 

Included in other comprehensive income (loss)

 

 

 

 

 

 

Purchases, issuances, sales and settlements

 

 

 

 

 

 

 

 

Purchases

 

 

 

 

 

 

Issuances

 

 

 

 

 

 

Sales

 

 

 

 

 

 

Settlements

 

 

(698

)

 

 

(184

)

Ending balance

 

$

99

 

 

$

794

 

Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets and liabilities still held at the reporting date

 

$

 

 

$

 

Assets Measured at Fair Value on a Nonrecurring Basis

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2021 and 2020 (in thousands):

 

 

 

Fair Value Measurements Using

 

 

 

 

 

 

 

Quoted Prices

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

in Active

 

 

Significant

 

 

Significant

 

 

 

 

 

 

 

Markets for

 

 

Other

 

 

Unobservable

 

 

 

 

 

 

 

Identical Assets

 

 

Observable Inputs

 

 

Inputs

 

 

 

Fair Value

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateral dependent loans

 

$

6,750

 

 

$

 

 

$

 

 

$

6,750

 

Foreclosed assets held for sale

 

 

2,068

 

 

 

 

 

 

 

 

 

2,068

 

Mortgage servicing rights

 

 

420

 

 

 

 

 

 

 

 

 

420

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateral dependent loans

 

$

14,876

 

 

$

 

 

$

 

 

$

14,876

 

Foreclosed assets held for sale

 

 

290

 

 

 

 

 

 

 

 

 

290

 

Mortgage servicing rights

 

 

517

 

 

 

 

 

 

 

 

 

517

 

Significant Unobservable Inputs Used in Valuation of Level 3 Fair Value Measurements

The following table presents quantitative information about unobservable inputs used in Level 3 fair value measurements other than goodwill at December 31, 2021.

 

 

 

Fair Value

 

 

Valuation

 

 

 

 

 

 

 

 

(in thousands)

 

 

Technique

 

Unobservable Inputs

 

Range (Weighted Average)

Collateral dependent loans

 

$

6,750

 

 

Third party valuations

 

Discount to reflect realizable value

 

0% - 40%

 

(20%)

Foreclosed assets held for sale

 

 

2,068

 

 

Third party valuations

 

Discount to reflect realizable value less estimated selling costs

 

0% - 40%

 

(35%)

Mortgage servicing rights

 

 

420

 

 

Third party valuations

 

PSA standard prepayment model rate

 

205 -513

 

(273)

 

The following table presents quantitative information about unobservable inputs used in Level 3 fair value measurements other than goodwill at December 31, 2020.

 

 

 

Fair Value

 

 

Valuation

 

 

 

 

 

 

 

 

(in thousands)

 

 

Technique

 

Unobservable Inputs

 

Range (Weighted Average)

Collateral dependent loans

 

$

14,876

 

 

Third party valuations

 

Discount to reflect realizable value

 

0% - 40%

 

(20%)

Foreclosed assets held for sale

 

 

290

 

 

Third party valuations

 

Discount to reflect realizable value less estimated selling costs

 

0% - 40%

 

(35%)

Mortgage servicing rights

 

 

517

 

 

Third party valuations

 

PSA standard prepayment model rate

 

242 - 441

 

(384)

Summary of Estimated Fair Values of Company Financial Instruments

The following tables present estimated fair values of the Company’s financial instruments at December 31, 2021 and 2020 (in thousands):

 

 

 

Carrying

 

 

Fair

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount

 

 

Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

167,242

 

 

$

167,242

 

 

$

167,242

 

 

$

 

 

$

 

Federal funds sold

 

 

1,360

 

 

 

1,360

 

 

 

1,360

 

 

 

 

 

 

 

Certificates of deposit investments

 

 

2,450

 

 

 

2,450

 

 

 

 

 

 

2,450

 

 

 

 

Available-for-sale securities

 

 

1,421,422

 

 

 

1,421,422

 

 

 

 

 

 

1,421,323

 

 

 

99

 

Held-to-maturity securities

 

 

7,030

 

 

 

7,034

 

 

 

2,029

 

 

 

5,005

 

 

 

 

Equity securities

 

 

397

 

 

 

397

 

 

 

397

 

 

 

 

 

 

 

Loans held for sale

 

 

2,748

 

 

 

2,748

 

 

 

 

 

 

2,748

 

 

 

 

Loans net of allowance for credit losses

 

 

3,938,120

 

 

 

3,889,870

 

 

 

 

 

 

 

 

 

3,889,870

 

Interest receivable

 

 

19,868

 

 

 

19,868

 

 

 

 

 

 

19,868

 

 

 

 

Federal Reserve Bank stock

 

 

13,845

 

 

 

13,845

 

 

 

 

 

 

13,845

 

 

 

 

Federal Home Loan Bank stock

 

 

6,484

 

 

 

6,484

 

 

 

 

 

 

6,484

 

 

 

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

4,956,486

 

 

$

4,956,738

 

 

$

 

 

$

4,394,434

 

 

$

562,304

 

Securities sold under agreements to repurchase

 

 

146,268

 

 

 

146,274

 

 

 

 

 

 

146,274

 

 

 

 

Interest payable

 

 

1,346

 

 

 

1,346

 

 

 

 

 

 

1,346

 

 

 

 

Federal Home Loan Bank borrowings

 

 

86,446

 

 

 

86,248

 

 

 

 

 

 

86,248

 

 

 

 

Subordinated debentures

 

 

94,400

 

 

 

94,400

 

 

 

 

 

 

94,400

 

 

 

 

Junior subordinated debentures

 

 

19,195

 

 

 

15,012

 

 

 

 

 

 

15,012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

415,973

 

 

$

415,973

 

 

$

415,973

 

 

$

 

 

$

 

Federal funds sold

 

 

1,308

 

 

 

1,308

 

 

 

1,308

 

 

 

 

 

 

 

Certificates of deposit investments

 

 

2,695

 

 

 

2,695

 

 

 

 

 

 

2,695

 

 

 

 

Available-for-sale securities

 

 

879,240

 

 

 

879,240

 

 

 

 

 

 

878,446

 

 

 

794

 

Held-to-maturity securities

 

 

5,016

 

 

 

5,119

 

 

 

 

 

 

5,119

 

 

 

 

Equity securities

 

 

218

 

 

 

218

 

 

 

218

 

 

 

 

 

 

 

Loans held for sale

 

 

1,924

 

 

 

1,924

 

 

 

 

 

 

1,924

 

 

 

 

Loans net of allowance for credit losses

 

 

3,094,585

 

 

 

3,056,344

 

 

 

 

 

 

 

 

 

3,056,344

 

Interest receivable

 

 

19,287

 

 

 

19,287

 

 

 

 

 

 

19,287

 

 

 

 

Federal Reserve Bank stock

 

 

9,401

 

 

 

9,401

 

 

 

 

 

 

9,401

 

 

 

 

Federal Home Loan Bank stock

 

 

5,450

 

 

 

5,450

 

 

 

 

 

 

5,450

 

 

 

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

3,692,784

 

 

$

3,697,105

 

 

$

 

 

$

3,215,715

 

 

$

481,390

 

Securities sold under agreements to repurchase

 

 

206,937

 

 

 

206,945

 

 

 

 

 

 

206,945

 

 

 

 

Interest payable

 

 

2,345

 

 

 

2,345

 

 

 

 

 

 

2,345

 

 

 

 

Federal Home Loan Bank borrowings

 

 

93,969

 

 

 

96,669

 

 

 

 

 

 

96,669

 

 

 

 

Subordinated debentures

 

 

94,253

 

 

 

94,253

 

 

 

 

 

 

94,253

 

 

 

 

Junior subordinated debentures

 

 

19,027

 

 

 

14,604

 

 

 

 

 

 

14,604