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Fair Value (Tables)
9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Assets Measured at Fair Value on Recurring Basis

Assets measured at fair value on a recurring basis are summarized below:

 

 

 

Fair Value Measurements at September 30, 2020 Using:

 

(In Thousands of Dollars)

 

Carrying

Value

 

 

Quoted Prices in

Active Markets

for Identical Assets

(Level 1)

 

 

Significant Other

Observable Inputs

(Level 2)

 

 

Significant

Unobservable Inputs

(Level 3)

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available-for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and U.S. government sponsored entities

 

$

3,908

 

 

$

0

 

 

$

3,908

 

 

$

0

 

State and political subdivisions

 

 

327,421

 

 

 

0

 

 

 

327,421

 

 

 

0

 

Corporate bonds

 

 

3,721

 

 

 

0

 

 

 

3,721

 

 

 

0

 

Mortgage-backed securities-residential

 

 

111,062

 

 

 

0

 

 

 

111,058

 

 

 

4

 

Collateralized mortgage obligations

 

 

29,559

 

 

 

0

 

 

 

29,559

 

 

 

0

 

Small Business Administration

 

 

5,838

 

 

 

0

 

 

 

5,838

 

 

 

0

 

Equity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities at fair value

 

 

430

 

 

 

430

 

 

 

0

 

 

 

0

 

Other investments measured at net asset value

 

 

7,877

 

 

n/a

 

 

n/a

 

 

n/a

 

Total investment securities

 

$

489,816

 

 

$

430

 

 

$

481,505

 

 

$

4

 

Loan yield maintenance provisions

 

$

4,747

 

 

$

0

 

 

$

4,747

 

 

$

0

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

4,747

 

 

$

0

 

 

$

4,747

 

 

$

0

 

 

 

 

Fair Value Measurements at December 31, 2019 Using:

 

(In Thousands of Dollars)

 

Carrying

Value

 

 

Quoted Prices  in

Active Markets

for Identical Assets

(Level 1)

 

 

Significant Other

Observable Inputs

(Level 2)

 

 

Significant

Unobservable Inputs

(Level 3)

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available-for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and U.S. government sponsored entities

 

$

3,811

 

 

$

0

 

 

$

3,811

 

 

$

0

 

State and political subdivisions

 

 

261,425

 

 

 

0

 

 

 

261,425

 

 

 

0

 

Corporate bonds

 

 

1,260

 

 

 

0

 

 

 

1,260

 

 

 

0

 

Mortgage-backed securities-residential

 

 

147,910

 

 

 

0

 

 

 

147,905

 

 

 

5

 

Collateralized mortgage obligations

 

 

11,347

 

 

 

0

 

 

 

11,347

 

 

 

0

 

Small Business Administration

 

 

6,480

 

 

 

0

 

 

 

6,480

 

 

 

0

 

Equity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities at fair value

 

 

594

 

 

 

594

 

 

 

0

 

 

 

0

 

Other investments measured at net asset value

 

 

7,315

 

 

n/a

 

 

n/a

 

 

n/a

 

Total investment securities

 

$

440,142

 

 

$

594

 

 

$

432,228

 

 

$

5

 

Loan yield maintenance provisions

 

$

1,898

 

 

$

0

 

 

$

1,898

 

 

$

0

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

1,898

 

 

$

0

 

 

$

1,898

 

 

$

0

 

 

Reconciliation of All Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

 

 

 

Investment Securities Available-for-sale (Level 3)

 

 

 

Three Months ended

September 30,

 

 

Nine Months ended

September 30,

 

(In Thousands of Dollars)

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Beginning Balance

 

$

4

 

 

$

6

 

 

$

5

 

 

$

6

 

Transfers from level 2

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Repayments, calls and maturities

 

 

0

 

 

 

(1

)

 

 

(1

)

 

 

(1

)

Ending Balance

 

$

4

 

 

$

5

 

 

$

4

 

 

$

5

 

Assets Measured at Fair Value on Non-Recurring Basis

 

Assets measured at fair value on a non-recurring basis are summarized below:

 

 

 

Fair Value Measurements at September 30, 2020 Using:

 

(In Thousands of Dollars)

 

Carrying

Value

 

 

Quoted Prices  in

Active Markets

for Identical Assets

(Level 1)

 

 

Significant Other

Observable Inputs

(Level 2)

 

 

Significant

Unobservable Inputs

(Level 3)

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

1,140

 

 

$

0

 

 

$

0

 

 

$

1,140

 

1–4 family residential

 

 

139

 

 

 

0

 

 

 

0

 

 

 

139

 

 

 

 

Fair Value Measurements at December 31, 2019 Using:

 

(In Thousands of Dollars)

 

Carrying

Value

 

 

Quoted Prices in

Active Markets

for Identical Assets

(Level 1)

 

 

Significant Other

Observable Inputs

(Level 2)

 

 

Significant

Unobservable Inputs

(Level 3)

 

Financial Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1–4 family residential

 

$

183

 

 

$

0

 

 

$

0

 

 

$

183

 

Consumer

 

 

12

 

 

 

0

 

 

 

0

 

 

 

12

 

 

Fair Value Measurements for Financial Instruments

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods ended September 30, 2020 and December 31, 2019:

 

September 30, 2020

Fair value

 

 

Valuation

Technique(s)

 

Unobservable Input(s)

 

Range

(Weighted Average)

Impaired loans

 

 

 

 

 

 

 

 

 

Commercial

$

1,140

 

 

Sales Comparison

 

Adjustment for differences between comparable sales

 

(6.04%) - 6.04%

(0%)

Residential

 

139

 

 

Sales comparison

 

Adjustment for differences between comparable sales

 

(40.00%) - 47.15%

(17.77%)

 

December 31, 2019

Fair value

 

 

Valuation

Technique(s)

 

Unobservable Input(s)

 

Range

(Weighted Average)

Impaired loans

 

 

 

 

 

 

 

 

 

Residential

$

183

 

 

Sales comparison

 

Adjustment for differences between comparable sales

 

(24.26%) - 23.74%

14.53%

Consumer

 

12

 

 

Sales comparison

 

Adjustment for differences between comparable sales

 

(12.95%) - 12.95%

(0.00%)

 

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments not previously disclosed at September 30, 2020 and December 31, 2019 are as follows:

 

 

 

 

 

 

 

Fair Value Measurements at September 30, 2020 Using:

 

(In Thousands of Dollars)

 

Carrying

Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

199,575

 

 

$

22,592

 

 

$

176,983

 

 

$

0

 

 

$

199,575

 

Restricted stock

 

 

14,969

 

 

n/a

 

 

n/a

 

 

n/a

 

 

n/a

 

Loans held for sale

 

 

7,076

 

 

 

0

 

 

 

7,075

 

 

 

0

 

 

 

7,075

 

Loans, net

 

 

2,127,817

 

 

 

0

 

 

 

0

 

 

 

2,110,347

 

 

 

2,110,347

 

Accrued interest receivable

 

 

10,293

 

 

 

0

 

 

 

2,901

 

 

 

7,392

 

 

 

10,293

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

2,538,332

 

 

 

2,042,946

 

 

 

501,082

 

 

 

0

 

 

 

2,544,028

 

Short-term borrowings

 

 

5,192

 

 

 

0

 

 

 

5,192

 

 

 

0

 

 

 

5,192

 

Long-term borrowings

 

 

76,498

 

 

 

0

 

 

 

78,075

 

 

 

0

 

 

 

78,075

 

Accrued interest payable

 

 

809

 

 

 

38

 

 

 

771

 

 

 

0

 

 

 

809

 

 

 

 

 

 

 

 

Fair Value Measurements at December 31, 2019 Using:

 

(In Thousands of Dollars)

 

Carrying

Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

70,760

 

 

$

23,229

 

 

$

47,531

 

 

$

0

 

 

$

70,760

 

Restricted stock

 

 

11,729

 

 

n/a

 

 

n/a

 

 

n/a

 

 

n/a

 

Loans held for sale

 

 

2,600

 

 

 

0

 

 

 

2,678

 

 

 

0

 

 

 

2,678

 

Loans, net

 

 

1,797,052

 

 

 

0

 

 

 

0

 

 

 

1,760,062

 

 

 

1,760,062

 

Accrued interest receivable

 

 

7,552

 

 

 

0

 

 

 

2,578

 

 

 

4,974

 

 

 

7,552

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

2,008,964

 

 

 

1,514,346

 

 

 

495,222

 

 

 

0

 

 

 

2,009,568

 

Short-term borrowings

 

 

77,050

 

 

 

0

 

 

 

77,050

 

 

 

0

 

 

 

77,050

 

Long-term borrowings

 

 

45,147

 

 

 

0

 

 

 

45,998

 

 

 

0

 

 

 

45,998

 

Accrued interest payable

 

 

1,070

 

 

 

61

 

 

 

1,009

 

 

 

0

 

 

 

1,070