XML 33 R23.htm IDEA: XBRL DOCUMENT v3.23.2
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Financial Assets Measured at Fair Value on Recurring Basis

The following summarizes financial assets measured at fair value on a recurring basis as of June 30, 2023 and December 31, 2022, segregated by level or the valuation inputs within the fair value hierarchy utilized to measure fair value:

 

Assets and Liabilities Measured at Fair Value on a Recurring Basis

 

 

 

(In Thousands)

 

June 30, 2023

 

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

 

 

Significant
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets - (Securities Available-for-Sale)

 

 

 

 

 

 

 

 

 

U.S. Treasury

 

$

86,127

 

 

$

-

 

 

$

-

 

U.S. Government agencies

 

 

-

 

 

 

127,891

 

 

 

-

 

Mortgage-backed securities

 

 

-

 

 

 

81,656

 

 

 

-

 

State and local governments

 

 

-

 

 

 

64,442

 

 

 

3,109

 

Total Securities Available-for-Sale

 

$

86,127

 

 

$

273,989

 

 

$

3,109

 

 

 

 

(In Thousands)

 

December 31, 2022

 

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

 

 

Significant
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

Assets - (Securities Available-for-Sale)

 

 

 

 

 

 

 

 

 

U.S. Treasury

 

$

94,678

 

 

$

-

 

 

$

-

 

U.S. Government agencies

 

 

-

 

 

 

139,767

 

 

 

-

 

Mortgage-backed securities

 

 

-

 

 

 

86,927

 

 

 

-

 

State and local governments

 

 

-

 

 

 

66,072

 

 

 

3,345

 

Total Securities Available-for-Sale

 

$

94,678

 

 

$

292,766

 

 

$

3,345

 

 
Changes in the Level 3 Fair-Value Category of Unobservable Inputs

The following tables represent the changes in the Level 3 fair-value category of which unobservable inputs are relied upon as of the three and six month periods ended June 30, 2023 and June 30, 2022. During the three month period ended March 31, 2022, there was one security transferred from Level 3 to Level 2.

 

 

 

(In Thousands)

 

 

 

Fair Value Measurements Using Significant

 

 

 

Unobservable Inputs (Level 3)

 

 

 

State and Local
Governments

 

 

 

Tax-Exempt

 

 

Taxable

 

 

Total

 

Balance at April 1, 2023

 

$

1,835

 

 

$

1,305

 

 

$

3,140

 

 

 

 

 

 

 

 

 

 

Change in Fair Value

 

 

(4

)

 

 

(27

)

 

 

(31

)

 

 

 

 

 

 

 

 

 

Payments & Maturities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Reclassification & Adjustments

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2023

 

$

1,831

 

 

$

1,278

 

 

$

3,109

 

 

 

 

(In Thousands)

 

 

 

Fair Value Measurements Using Significant

 

 

 

Unobservable Inputs (Level 3)

 

 

 

State and Local
Governments

 

 

 

Tax-Exempt

 

 

Taxable

 

 

Total

 

Balance at April 1, 2022

 

$

2,108

 

 

$

1,394

 

 

$

3,502

 

 

 

 

 

 

 

 

 

 

Change in Fair Value

 

 

(19

)

 

 

(69

)

 

 

(88

)

 

 

 

 

 

 

 

 

 

Payments & Maturities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Reclassification & Adjustments

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2022

 

$

2,089

 

 

$

1,325

 

 

$

3,414

 

 

 

 

(In Thousands)

 

 

 

Fair Value Measurements Using Significant

 

 

 

Unobservable Inputs (Level 3)

 

 

 

State and Local
Governments

 

 

 

Tax-Exempt

 

 

Taxable

 

 

Total

 

Balance at January 1, 2023

 

$

2,071

 

 

$

1,274

 

 

$

3,345

 

 

 

 

 

 

 

 

 

 

Change in Fair Value

 

 

5

 

 

 

4

 

 

 

9

 

 

 

 

 

 

 

 

 

 

Payments & Maturities

 

 

(245

)

 

 

-

 

 

 

(245

)

 

 

 

 

 

 

 

 

 

Reclassification & Adjustments

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2023

 

$

1,831

 

 

$

1,278

 

 

$

3,109

 

 

 

 

 

(In Thousands)

 

 

 

Fair Value Measurements Using Significant

 

 

 

Unobservable Inputs (Level 3)

 

 

 

State and Local
Governments

 

 

 

Tax-Exempt

 

 

Taxable

 

 

Total

 

Balance at January 1, 2022

 

$

2,307

 

 

$

2,466

 

 

$

4,773

 

 

 

 

 

 

 

 

 

 

Change in Fair Value

 

 

(58

)

 

 

(152

)

 

 

(210

)

 

 

 

 

 

 

 

 

 

Payments & Maturities

 

 

(160

)

 

 

-

 

 

 

(160

)

 

 

 

 

 

 

 

 

 

Reclassification & Adjustments

 

 

-

 

 

 

(989

)

 

 

(989

)

 

 

 

 

 

 

 

 

 

Balance at June 30, 2022

 

$

2,089

 

 

$

1,325

 

 

$

3,414

 
Quantitative Information about Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements

The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements:

 

 

 

(In Thousands)

 

 

 

 

 

 

Range

 

 

Fair Value at

 

 

 

 

 

 

(Weighted

 

June 30, 2023

 

 

Valuation Technique

 

Unobservable Inputs

 

Average)

State and local government

 

$

3,109

 

 

Discounted Cash Flow

 

Credit strength of underlying project or
entity / Discount rate

 

3.49-
5.48% (4.78%)

 

 

 

 

 

 

 

 

 

Collateral dependent
loans

 

 

45

 

 

Collateral based
measurements

 

Discount to reflect current market
conditions and ultimate collectability

 

25.00-25.00% (25.00%)

 

 

 

 

 

 

 

 

 

Real estate servicing rights

 

 

39

 

 

Discounted Cash Flow

 

Constant prepayment rate and probability of default / Discount rate

 

4.03-
4.65% (4.63%)

 

 

 

 

(In Thousands)

 

 

 

 

 

 

Range

 

 

Fair Value at

 

 

 

 

 

 

(Weighted

 

 

December 31, 2022

 

 

Valuation Technique

 

Unobservable Inputs

 

Average)

State and local government

 

$

3,345

 

 

Discounted Cash Flow

 

Credit strength of underlying project or
entity / Discount rate

 

2.08-5.01% (4.38%)

 

 

 

 

 

 

 

 

 

Collateral dependent
   impaired loans

 

 

2,667

 

 

Collateral based
measurements

 

Discount to reflect current market
conditions and ultimate collectability

 

20.00-29.01% (24.13%)

 

 

 

 

 

 

 

 

 

Real estate servicing rights

 

 

-

 

 

Discounted Cash Flow

 

Constant prepayment rate and probability of default / Discount rate

 

-
Assets Measured at Fair Value on Nonrecurring Basis

The following table presents assets measured at fair value on a nonrecurring basis at June 30, 2023 and December 31, 2022:

 

 

 

(In Thousands)

 

 

 

Assets Measured at Fair Value on a Nonrecurring Basis at June 30, 2023

 

 

 

Balance at
June 30, 2023

 

 

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

 

 

Significant
Observable Inputs
(Level 2)

 

 

Significant
Unobservable Inputs
(Level 3)

 

Collateral dependent
   loans

 

$

45

 

 

$

-

 

 

$

-

 

 

$

45

 

Real estate servicing rights

 

 

39

 

 

 

-

 

 

 

-

 

 

 

39

 

 

 

 

 

(In Thousands)

 

 

 

Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2022

 

 

 

Balance at
December 31, 2022

 

 

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

 

 

Significant
Observable Inputs
(Level 2)

 

 

Significant
Unobservable Inputs
(Level 3)

 

Collateral dependent
   impaired loans

 

$

2,667

 

 

$

-

 

 

$

-

 

 

$

2,667

 
Estimated Fair Values and Related Carrying or Notional Amounts

The estimated fair values, and related carrying or notional amounts, for on and off-balance sheet financial instruments as of June 30, 2023 and December 31, 2022 are reflected below.

 

 

(In Thousands)

 

 

 

June 30, 2023

 

 

 

Carrying

 

 

Fair

 

 

 

 

 

 

 

 

 

 

 

 

Amount

 

 

Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

71,193

 

 

$

71,193

 

 

$

71,193

 

 

$

-

 

 

$

-

 

Interest-bearing time deposits

 

 

3,485

 

 

 

3,473

 

 

 

-

 

 

 

3,473

 

 

 

-

 

Securities - available-for-sale

 

 

363,225

 

 

 

363,225

 

 

 

86,127

 

 

 

273,989

 

 

 

3,109

 

Other securities

 

 

17,535

 

 

 

17,535

 

 

 

-

 

 

 

-

 

 

 

17,535

 

Loans held for sale

 

 

1,459

 

 

 

1,437

 

 

 

-

 

 

 

-

 

 

 

1,437

 

Loans, net

 

 

2,490,883

 

 

 

2,316,031

 

 

 

-

 

 

 

-

 

 

 

2,316,031

 

Interest receivable

 

 

11,145

 

 

 

11,145

 

 

 

-

 

 

 

-

 

 

 

11,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits

 

$

1,351,305

 

 

$

1,351,263

 

 

$

-

 

 

$

-

 

 

$

1,351,263

 

Non-interest bearing deposits

 

 

488,678

 

 

 

488,678

 

 

 

488,678

 

 

 

-

 

 

 

-

 

Time deposits

 

 

628,757

 

 

 

616,958

 

 

 

-

 

 

 

-

 

 

 

616,958

 

Total Deposits

 

 

2,468,740

 

 

 

2,456,899

 

 

 

488,678

 

 

 

-

 

 

 

1,968,221

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds purchased and securities sold under
   agreement to repurchase

 

 

51,567

 

 

 

51,567

 

 

 

-

 

 

 

-

 

 

 

51,567

 

Federal Home Loan Bank advances

 

 

266,818

 

 

 

263,316

 

 

 

-

 

 

 

-

 

 

 

263,316

 

Other borrowings

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Subordinated notes, net of unamortized issuance costs

 

 

34,644

 

 

 

29,070

 

 

 

-

 

 

 

29,070

 

 

 

-

 

Interest payable

 

 

3,655

 

 

 

3,655

 

 

 

-

 

 

 

-

 

 

 

3,655

 

 

 

 

(In Thousands)

 

 

 

December 31, 2022

 

 

 

Carrying

 

 

Fair

 

 

 

 

 

 

 

 

 

 

 

 

Amount

 

 

Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

84,409

 

 

$

84,409

 

 

$

84,409

 

 

$

-

 

 

$

-

 

Interest-bearing time deposits

 

 

4,442

 

 

 

4,440

 

 

 

-

 

 

 

4,440

 

 

 

-

 

Securities - available-for-sale

 

 

390,789

 

 

 

390,789

 

 

 

94,678

 

 

 

292,766

 

 

 

3,345

 

Other securities

 

 

9,799

 

 

 

9,799

 

 

 

-

 

 

 

-

 

 

 

9,799

 

Loans held for sale

 

 

827

 

 

 

815

 

 

 

-

 

 

 

-

 

 

 

815

 

Loans, net

 

 

2,336,074

 

 

 

2,171,152

 

 

 

-

 

 

 

-

 

 

 

2,171,152

 

Interest receivable

 

 

10,440

 

 

 

10,440

 

 

 

-

 

 

 

-

 

 

 

10,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits

 

$

1,378,090

 

 

$

1,377,944

 

 

$

-

 

 

$

-

 

 

$

1,377,944

 

Non-interest bearing deposits

 

 

532,794

 

 

 

532,794

 

 

 

532,794

 

 

 

-

 

 

 

-

 

Time deposits

 

 

557,980

 

 

 

543,737

 

 

 

-

 

 

 

-

 

 

 

543,737

 

Total Deposits

 

 

2,468,864

 

 

 

2,454,475

 

 

 

532,794

 

 

 

-

 

 

 

1,921,681

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds purchased and securities sold under
   agreement to repurchase

 

 

54,206

 

 

 

54,206

 

 

 

-

 

 

 

-

 

 

 

54,206

 

Federal Home Loan Bank advances

 

 

127,485

 

 

 

125,761

 

 

 

-

 

 

 

-

 

 

 

125,761

 

Other borrowings

 

 

10,000

 

 

 

10,000

 

 

 

-

 

 

 

10,000

 

 

 

-

 

Subordinated notes, net of unamortized issuance costs

 

 

34,586

 

 

 

30,993

 

 

 

-

 

 

 

30,993

 

 

 

-

 

Interest payable

 

 

1,739

 

 

 

1,739

 

 

 

-

 

 

 

-

 

 

 

1,739