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Fair Value (Tables)
 9 Months Ended
Sep. 30, 2021
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, 2021 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

 

$

88,470

 

 

$

0

 

 

$

88,470

 

 

$

0

 

State and political subdivisions

 

 

507,283

 

 

 

0

 

 

 

507,283

 

 

 

0

 

Corporate bonds

 

 

3,667

 

 

 

0

 

 

 

3,667

 

 

 

0

 

Mortgage-backed securities-residential

 

 

566,104

 

 

 

0

 

 

 

566,101

 

 

 

3

 

Collateralized mortgage obligations

 

 

13,241

 

 

 

0

 

 

 

13,241

 

 

 

0

 

Small Business Administration

 

 

4,596

 

 

 

0

 

 

 

4,596

 

 

 

0

 

Equity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities at fair value

 

 

493

 

 

 

493

 

 

 

0

 

 

 

0

 

Other investments measured at net asset value

 

 

6,024

 

 

n/a

 

 

n/a

 

 

n/a

 

Total investment securities

 

$

1,189,878

 

 

$

493

 

 

$

1,183,358

 

 

$

3

 

Interest rate swaps

 

$

2,768

 

 

$

0

 

 

$

2,768

 

 

$

0

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

2,768

 

 

$

0

 

 

$

2,768

 

 

$

0

 

 

 

 

 

Fair Value Measurements at December 31, 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

 

$

11,845

 

 

$

0

 

 

$

11,845

 

 

$

0

 

State and political subdivisions

 

 

366,306

 

 

 

0

 

 

 

366,306

 

 

 

0

 

Corporate bonds

 

 

3,712

 

 

 

0

 

 

 

3,712

 

 

 

0

 

Mortgage-backed securities-residential

 

 

161,782

 

 

 

0

 

 

 

161,778

 

 

 

4

 

Collateralized mortgage obligations

 

 

26,393

 

 

 

0

 

 

 

26,393

 

 

 

0

 

Small Business Administration

 

 

5,562

 

 

 

0

 

 

 

5,562

 

 

 

0

 

Equity securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities at fair value

 

 

538

 

 

 

538

 

 

 

0

 

 

 

0

 

Other investments measured at net asset value

 

 

6,343

 

 

n/a

 

 

n/a

 

 

n/a

 

Total investment securities

 

$

582,481

 

 

$

538

 

 

$

575,596

 

 

$

4

 

      Interest rate swaps

 

$

4,221

 

 

$

0

 

 

$

4,221

 

 

$

0

 

Financial Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate swaps

 

$

4,221

 

 

$

0

 

 

$

4,221

 

 

$

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)

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Beginning Balance

 

$

3

 

 

$

4

 

 

$

4

 

 

$

5

 

Transfers from level 2

 

 

0

 

 

 

0

 

 

 

0

 

 

 

0

 

Repayments, calls and maturities

 

 

0

 

 

 

0

 

 

 

(1

)

 

 

(1

)

Ending Balance

 

$

3

 

 

$

4

 

 

$

3

 

 

$

4

 
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, 2021 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

2,954

 

 

$

0

 

 

$

0

 

 

$

2,954

 

1–4 family residential

 

 

82

 

 

 

0

 

 

 

0

 

 

 

82

 

 

 

 

 

Fair Value Measurements at December 31, 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

 

$

1,770

 

 

$

0

 

 

$

0

 

 

$

1,770

 

1–4 family residential

 

 

82

 

 

 

0

 

 

 

0

 

 

 

82

 

Consumer

 

 

36

 

 

 

0

 

 

 

0

 

 

 

36

 

 
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, 2021 and December 31, 2020:

 

September 30, 2021

Fair value

 

 

Valuation

Technique(s)

 

Unobservable Input(s)

 

Range

(Weighted Average)

Individually evaluated loans

 

 

 

 

 

 

 

 

 

Commercial

$

2,954

 

 

Sales Comparison

 

Adjustment for differences between comparable sales

 

(14.66%) - 8.99%

(0%)

Residential

 

82

 

 

Sales comparison

 

Adjustment for differences between comparable sales

 

(3.84%) - 3.22%

(0.12%)

 

December 31, 2020

Fair value

 

 

Valuation

Technique(s)

 

Unobservable Input(s)

 

Range

(Weighted Average)

Impaired loans

 

 

 

 

 

 

 

 

 

Commercial

$

1,770

 

 

Sales comparison

 

Adjustment for differences between comparable sales

 

(24.01%) - 17.93%

(0.48%)

Residential

 

82

 

 

Sales comparison

 

Adjustment for differences between comparable sales

 

(40.00%) - 47.15%

(17.77%)

Consumer

 

36

 

 

Sales comparison

 

Adjustment for differences between comparable sales

 

(23.60%) - 23.60%

(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, 2021 and December 31, 2020 are as follows:

 

 

 

 

 

 

 

Fair Value Measurements at September 30, 2021 Using:

 

(In Thousands of Dollars)

 

Carrying

Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

79,808

 

 

$

26,933

 

 

$

52,875

 

 

$

0

 

 

$

79,808

 

Restricted stock

 

 

12,524

 

 

n/a

 

 

n/a

 

 

n/a

 

 

n/a

 

Loans held for sale

 

 

2,628

 

 

 

0

 

 

 

2,707

 

 

 

0

 

 

 

2,707

 

Loans, net

 

 

1,871,080

 

 

 

0

 

 

 

0

 

 

 

1,857,184

 

 

 

1,857,184

 

Accrued interest receivable

 

 

9,930

 

 

 

0

 

 

 

5,126

 

 

 

4,804

 

 

 

9,930

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

2,866,413

 

 

 

2,514,758

 

 

 

350,919

 

 

 

0

 

 

 

2,865,677

 

Long-term borrowings

 

 

49,649

 

 

 

0

 

 

 

49,267

 

 

 

0

 

 

 

49,267

 

Accrued interest payable

 

 

389

 

 

 

26

 

 

 

363

 

 

 

0

 

 

 

389

 

 

 

 

 

 

 

 

Fair Value Measurements at December 31, 2020 Using:

 

(In Thousands of Dollars)

 

Carrying

Amount

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

254,621

 

 

$

20,503

 

 

$

234,118

 

 

$

0

 

 

$

254,621

 

Restricted stock

 

 

14,647

 

 

n/a

 

 

n/a

 

 

n/a

 

 

n/a

 

Loans held for sale

 

 

4,766

 

 

 

0

 

 

 

4,909

 

 

 

0

 

 

 

4,909

 

Loans, net

 

 

2,055,900

 

 

 

0

 

 

 

0

 

 

 

2,036,872

 

 

 

2,036,872

 

Accrued interest receivable

 

 

9,880

 

 

 

0

 

 

 

3,297

 

 

 

6,583

 

 

 

9,880

 

Financial liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

2,610,878

 

 

 

2,097,732

 

 

 

487,105

 

 

 

0

 

 

 

2,584,837

 

Short-term borrowings

 

 

2,521

 

 

 

0

 

 

 

2,521

 

 

 

0

 

 

 

2,521

 

Long-term borrowings

 

 

76,385

 

 

 

0

 

 

 

77,189

 

 

 

0

 

 

 

77,189

 

Accrued interest payable

 

 

690

 

 

 

36

 

 

 

654

 

 

 

0

 

 

 

690