XML 49 R49.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Fair Values of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements of Assets and Liabilities Recognized in the Balance Sheets Measured at Fair Value on Recurring Basis The following table presents the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the ASC 820-10 fair value hierarchy in which the fair value measurements fall at December 31, 2019 and 2018.
 
 
 
 
Fair Value Measurements Using:
 
 
 
 
Quoted Prices in Active
Markets for Identical Assets
 
Significant Other Observable Inputs
 
Significant
Unobservable Inputs
December 31, 2019
 
Fair Value
 
(Level 1)
 
(Level 2)
 
(Level 3)
Available for sale securities:
 
 
 
 
 
 
 
 
U.S. Government-sponsored agency securities

$
38,875


$
—


$
38,875


$
—

State and municipal

899,796


—


896,938


2,858

U.S. Government-sponsored mortgage-backed securities

851,323


—


851,319


4

Corporate obligations

31


—


—


31

Interest rate swap asset

27,855


—


27,855


—

Interest rate swap liability

29,299


—


29,299


—


 
 
 
 
Fair Value Measurements Using:
 
 
 
 
Quoted Prices in Active
Markets for Identical Assets
 
Significant Other Observable Inputs
 
Significant
Unobservable Inputs
December 31, 2018
 
Fair Value
 
(Level 1)
 
(Level 2)
 
(Level 3)
Available for sale securities:
 
 
 
 
 
 
 
 
U.S. Government-sponsored agency securities

$
13,582


$
—


$
13,582


$
—

State and municipal

606,135


—


602,842


3,293

U.S. Government-sponsored mortgage-backed securities

522,447


—


522,443


4

Corporate obligations

31


—


—


31

Interest rate swap asset

11,948


—


11,948


—

Interest rate cap

135


—


135


—

Interest rate swap liability

12,636


—


12,636


—
Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements Recognized in the Balance Sheets using Significant Unobservable Level 3 Inputs
The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable Level 3 inputs for year ended December 31, 2019 and 2018.
 
Available for Sale Securities
 
For The Year Ended
 
December 31, 2019
 
December 31, 2018
Beginning Balance
$
3,328

 
$
3,978

Included in other comprehensive income
80

 
(49
)
Principal payments
(515
)
 
(601
)
Ending balance
$
2,893

 
$
3,328
Description of Valuation Methodologies Used for Instruments Measured at Fair Value on a Non-Recurring Basis and Recognized in the Balance Sheets
Following is a description of valuation methodologies used for instruments measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy for year ended December 31, 2019 and 2018.
 

 

Fair Value Measurements Using
 

 

Quoted Prices in Active
Markets for Identical Assets

Significant Other Observable Inputs

Significant
Unobservable Inputs
December 31, 2019

Fair Value

(Level 1)

(Level 2)

(Level 3)
Impaired Loans (collateral dependent)

$
5,653


—


—


$
5,653

Other real estate owned

$
194


—


—


$
194



 

 

Fair Value Measurements Using
 

 

Quoted Prices in Active
Markets for Identical Assets

Significant Other Observable Inputs

Significant
Unobservable Inputs
December 31, 2018

Fair Value

(Level 1)

(Level 2)

(Level 3)
Impaired Loans (collateral dependent)

$
11,866


—


—


$
11,866

Other real estate owned

$
657


—


—


$
657
Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Other than Goodwill
The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at December 31, 2019 and 2018.
December 31, 2019
Fair Value
 
Valuation Technique
 
Unobservable Inputs
 
Range (Weighted-Average)
State and municipal securities
$
2,858

 
Discounted cash flow
 
Maturity Call Date
US Muni BQ curve
Discount rate
 
1 month to 15 years
A- to BBB-
2% - 5%
 
 
 
 
 
 
 
 
Corporate obligations and U.S. Government-sponsored mortgage backed securities
$
35

 
Discounted cash flow
 
Risk free rate
plus Premium for illiquidity
 
3 month LIBOR
plus 200 bps
 
 
 
 
 
 
 
 
Impaired loans (collateral dependent)
$
5,653

 
Collateral based measurements
 
Discount to reflect current market conditions and ultimate collectability
 
0% - 10% (1%)
 
 
 
 
 
 
 
 
Other real estate owned
$
194

 
Appraisals
 
Discount to reflect current market conditions
 
0% - 37% (37%)



December 31, 2018
Fair Value
 
Valuation Technique
 
Unobservable Inputs
 
Range (Weighted-Average)
State and municipal securities
$
3,293

 
Discounted cash flow
 
Maturity Call Date
US Muni BQ curve
Discount rate
 
1 month to 20 years
A- to BBB-
.69% - 5%
 
 
 
 
 
 
 
 
Corporate obligations and U.S. Government-sponsored mortgage backed securities
$
35

 
Discounted cash flow
 
Risk free rate
plus Premium for illiquidity
 
3 month LIBOR
plus 200 bps
 
 
 
 
 
 
 
 
Impaired loans (collateral dependent)
$
11,866

 
Collateral based measurements
 
Discount to reflect current market conditions and ultimate collectability
 
0% - 10% (6%)
 
 
 
 
 
 
 
 
Other real estate owned
$
657

 
Appraisals
 
Discount to reflect current market conditions
 
0% - 10% (4%)
Estimated Fair Values of Financial Instruments
The following table presents estimated fair values of the Corporation's financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2019 and 2018.
 
2019
 
Carrying
Amount

Quoted Prices in Active Markets for Identical Assets
(Level 1)

Significant Other Observable Inputs
(Level 2)

Significant Unobservable Inputs
(Level 3)
Assets at December 31:
 



 

 
Cash and cash equivalents
$
177,201


$
177,201


$
—


$
—

Interest-bearing time deposits
118,263


118,263


—


—

Investment securities available for sale
1,790,025


—


1,787,132


2,893

Investment securities held to maturity
806,038


—


799,884


27,682

Loans held for sale
9,037


—


9,037


—

Loans
8,379,026


—


—


8,335,340

Federal Home Loan Bank stock
28,736


—


28,736


—

Interest rate swap asset
27,855


—


27,855


—

Interest receivable
48,901


—


48,901


—

Liabilities at December 31:







Deposits
$
9,839,956


$
8,146,745


$
1,675,202


$
—

Borrowings:







Federal funds purchased
55,000


—


55,000


—

Securities sold under repurchase agreements
187,946


—


187,801


—

Federal Home Loan Bank advances
351,072


—


352,581


—

Subordinated debentures and term loans
138,685


—


123,571


—

Interest rate swap liability
29,299


—


29,299


—

Interest payable
6,754


—


6,754


—



 
2018
 
Carrying
Amount

Quoted Prices in Active Markets for Identical Assets
(Level 1)

Significant Other Observable Inputs
(Level 2)

Significant Unobservable Inputs
(Level 3)
Assets at December 31:
 



 

 
Cash and cash equivalents
$
139,247


$
139,247


$
—


$
—

Interest-bearing time deposits
36,963


36,963


—


—

Investment securities available for sale
1,142,195


—


1,138,867


3,328

Investment securities held to maturity
490,387


—


481,377


7,840

Loans held for sale
4,778


—


4,778


—

Loans
7,143,915


—


—


7,004,193

Federal Home Loan Bank stock
24,588


—


24,588


—

Interest rate swap asset
12,083


—


12,083


—

Interest receivable
40,881


—


40,881


—

Liabilities at December 31:







Deposits
$
7,754,593


$
6,267,879


$
1,464,129


$
—

Borrowings:







Federal funds purchased
104,000


—


104,000


—

Securities sold under repurchase agreements
113,512


—


113,437


—

Federal Home Loan Bank advances
314,986


—


318,728


—

Subordinated debentures and term loans
138,463


—


127,298


—

Interest rate swap liability
12,636


—


12,636


—

Interest payable
5,607


—


5,607


—