Disclosures of Fair Values of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2021

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		—