Note 13 - Disclosure of Financial Instruments Not Reported at Fair Value

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Fair Value Disclosures [Text Block]

(13) Disclosure of Financial Instruments Not Reported at Fair Value

GAAP requires disclosure of the fair value of financial assets and liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or nonrecurring basis. The estimated fair values of Bancorp’s financial instruments not measured at fair value on a recurring or non-recurring basis follows:

(in thousands)	Carrying				Fair Value Measurements Using:
September 30, 2021	amount		Fair value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	584,941	$	584,941	$	584,941	$	—	$	—
Mortgage loans held for sale		10,201		10,490		—		10,490		—
Federal Home Loan Bank stock		9,376		9,376		—		9,376		—
Loans, net		4,132,584		4,158,330		—		—		4,158,330
Accrued interest receivable		13,749		13,749		13,749		—		—
Liabilities
Non-interest bearing deposits	$	1,744,790	$	1,744,790	$	1,744,790	$	—	$	—
Transaction deposits		3,147,891		3,147,891		—		3,147,891		—
Time deposits		449,343		451,258		—		451,258		—
Securities sold under agreement to repurchase		74,406		74,406		—		74,406		—
Federal funds purchased		10,908		10,908		—		10,908		—
Federal Home Loan Bank advances		10,000		10,042		—		10,042		—
Accrued interest payable		398		398		398		—		—

(in thousands)	Carrying				Fair Value Measurements Using:
December 31, 2020	amount		Fair value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	317,945	$	317,945	$	317,945	$	—	$	—
Mortgage loans held for sale		22,547		23,389		—		23,389		—
Federal Home Loan Bank stock		11,284		11,284		—		11,284		—
Loans, net		3,479,676		3,513,916		—		—		3,513,916
Accrued interest receivable		13,094		13,094		13,094		—		—
Liabilities
Non-interest bearing deposits	$	1,187,057	$	1,187,057	$	1,187,057	$	—	$	—
Transaction deposits		2,409,173		2,409,173		—		2,409,173		—
Time deposits		392,404		395,734		—		395,734		—
Securities sold under agreement to repurchase		47,979		47,979		—		47,979		—
Federal funds purchased		11,464		11,464		—		11,464		—
Federal Home Loan Bank advances		31,639		33,180		—		33,180		—
Accrued interest payable		391		391		391		—		—

Fair value estimates are made at a specific point in time based on relevant market information and information about financial instruments. Because no market exists for a significant portion of Bancorp’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Therefore, calculated fair value estimates in many instances cannot be substantiated by comparison to independent markets and, in many cases, may not be realizable in a current sale of the instrument. Changes in assumptions could significantly impact estimates.