Note 14 - Disclosure of Financial Instruments Not Reported at Fair Value

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Fair Value Disclosures [Text Block]

(14) 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, 2022	amount		Fair value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	329,921	$	329,921	$	329,921	$	—	$	—
HTM debt securities		478,125		433,371		—		433,371		—
Federal Home Loan Bank stock		10,928		10,928		—		10,928		—
Loans, net		5,002,794		4,753,475		—		—		4,753,475
Accrued interest receivable		17,568		17,568		17,568		—		—
Liabilities
Non-interest bearing deposits	$	2,200,041	$	2,200,041	$	2,200,041	$	—	$	—
Transaction deposits		3,825,758		3,825,758		—		3,825,758		—
Time deposits		474,974		462,307		—		462,307		—
Securities sold under agreement to repurchase		124,567		124,567		—		124,567		—
Federal funds purchased		8,970		8,970		—		8,970		—
Subordinated debentures		26,244		26,361		—		26,361		—
Accrued interest payable		401		401		401		—		—

(in thousands)	Carrying				Fair Value Measurements Using:
December 31, 2021	amount		Fair value		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	961,192	$	961,192	$	961,192	$	—	$	—
Mortgage loans held for sale		8,614		8,818		—		8,818		—
Federal Home Loan Bank stock		9,376		9,376		—		9,376		—
Loans, net		4,115,405		4,129,091		—		—		4,129,091
Accrued interest receivable		13,745		13,745		13,745		—		—
Liabilities
Non-interest bearing deposits	$	1,755,754	$	1,755,754	$	1,755,754	$	—	$	—
Transaction deposits		3,597,538		3,597,538		—		3,597,538		—
Time deposits		434,222		433,813		—		433,813		—
Securities sold under agreement
to repurchase		75,466		75,466		—		75,466		—
Federal funds purchased		10,374		10,374		—		10,374		—
Accrued interest payable		300		300		300		—		—

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.