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FAIR VALUE MEASUREMENT AND DISCLOSURE (Tables)
9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis
The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value, for the dates indicated:
(In thousands)Fair
Value
Readily
Available
Market
Prices
(Level 1)
Observable
Market
Data
(Level 2)
Company
Determined
Fair Value
(Level 3)
September 30, 2021   
Financial assets:   
Trading securities$4,335 $4,335 $— $— 
AFS debt securities:  
Obligations of U.S. government-sponsored enterprises8,452 — 8,452 — 
Obligations of states and political subdivisions117,753 — 117,753 — 
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises919,992 — 919,992 — 
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises392,827 — 392,827 — 
Subordinated corporate bonds16,186 — 16,186 — 
Loans held for sale10,826 — 10,826 — 
Customer loan swaps24,045 — 24,045 — 
Interest rate contracts6,849 — 6,849 — 
Fixed rate mortgage interest rate lock commitments498 — 498 — 
Forward delivery commitments215 — 215 — 
Financial liabilities:  
Trading securities$4,335 $4,335 $— $— 
Customer loan swaps24,045 — 24,045 — 
Interest rate contracts8,597 — 8,597 — 
Fixed rate mortgage interest rate lock commitments116 — 116 — 
Forward delivery commitments22 — 22 — 
December 31, 2020   
Financial assets:   
Trading securities$4,161 $4,161 $— $— 
AFS debt securities:
Obligations of states and political subdivisions127,120 — 127,120 — 
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises566,618 — 566,618 — 
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises410,454 — 410,454 — 
Subordinated corporate bonds11,621 — 11,621 — 
Loans held for sale41,557 — 41,557 — 
Customer loan swaps39,627 — 39,627 — 
Interest rate contracts5,731 — 5,731 — 
Fixed rate mortgage interest rate lock commitments608 — 608 — 
Forward delivery commitments311 — 311 — 
Financial liabilities:    
Trading securities$4,161 $4,161 $— $— 
Customer loan swaps39,627 — 39,627 — 
Interest rate contracts11,625 — 11,625 — 
Fixed rate mortgage interest rate lock commitments248 — 248 — 
Forward delivery commitments196 — 196 — 
Summary of Assets Measured at Fair Value on Non Recurring Basis
The table below highlights financial and non-financial assets measured and recorded at fair value on a non-recurring basis for the dates indicated:
(In thousands)Fair
Value
Readily
Available
Market
Prices
(Level 1)
Observable
Market
Data
(Level 2)
Company
Determined
Fair Value
(Level 3)
September 30, 2021   
Financial assets:   
Collateral-dependent loans$74 $— $— $74 
December 31, 2020   
Financial assets:   
Servicing assets$1,010 $— $— $1,010 
Non-financial assets:
OREO$236 $— $— $236 
Valuation Methodology and Unobservable Inputs for Level Three Assets Measured at Fair Value on Non Recurring Basis
The following table presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis for the dates indicated:
(Dollars in thousands)
Fair ValueValuation MethodologyUnobservable InputDiscount
September 30, 2021    
Collateral-dependent loans:    
Specifically reserved$74 Market approach appraisal of
   collateral
Estimated selling costs11%
December 31, 2020
Servicing assets$1,010 Discounted cash flowWeighted-average constant prepayment rate19%
Weighted average discount rate10%
OREO$236 Market approach appraisal of
   collateral
Management adjustment of appraisal5%
Estimated selling cost11%
Carrying Amounts and Estimated Fair Value for Financial Instrument Assets and Liabilities
The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the dates indicated:
(In thousands)Carrying
Amount
Fair ValueReadily
Available
Market
Prices
(Level 1)
Observable
Market
Prices
(Level 2)
Company
Determined
Market
Prices
(Level 3)
September 30, 2021
Financial assets:     
HTM debt securities$1,293 $1,390 $— $1,390 $— 
Commercial real estate loans(1)(2)
1,397,639 1,360,937 — — 1,360,937 
Commercial loans(2)
347,944 345,341 — — 345,341 
SBA PPP loans(2)
81,916 85,660 — — 85,660 
Residential real estate loans(2)
1,218,431 1,225,153 — — 1,225,153 
Home equity loans(2)
216,959 214,909 — — 214,909 
Consumer loans(2)
20,142 18,234 — — 18,234 
Servicing assets2,495 3,215 — — 3,215 
Financial liabilities:     
Time deposits$373,414 $374,316 $— $374,316 $— 
Short-term borrowings211,552 211,530 — 211,530 — 
Subordinated debentures44,331 33,027 — 33,027 — 
December 31, 2020
Financial assets:
HTM debt securities$1,297 $1,411 $— $1,411 $— 
Commercial real estate loans(1)(2)
1,344,860 1,307,132 — — 1,307,132 
Commercial loans(2)
374,791 372,194 — — 372,194 
SBA PPP loans(2)
135,026 137,209 137,209 
Residential real estate loans(2)
1,051,324 1,066,991 — — 1,066,991 
Home equity loans(2)
255,957 253,276 — — 253,276 
Consumer loans(2)
19,999 18,102 — — 18,102 
Servicing assets2,196 1,437 — — 1,437 
Financial liabilities:     
Time deposits$457,694 $460,278 $— $460,278 $— 
Short-term borrowings162,439 162,420 — 162,420 — 
Long-term borrowings25,000 25,442 — 25,442 — 
Subordinated debentures59,331 46,475 — 46,475 — 
(1)    Commercial real estate loan includes non owner-occupied and owner-occupied properties.
(2)    The presented carrying amount is net of the allocated ACL on loans.