Note 6 - Other Assets

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Other Assets Disclosure [Text Block]

(6) Other Assets

A summary of the major components of other assets follows:

	June 30,		December 31,
(in thousands)	2023		2022
Cash surrender value of life insurance other than BOLI	$	16,940	$	15,496
Net deferred tax asset		51,054		54,145
Investments in tax credit partnerships		55,530		13,969
Swap assets		12,628		10,727
Prepaid assets		4,073		5,721
Trust fees receivable		3,548		3,354
Mortgage servicing rights		14,116		15,219
Other real estate owned		677		677
Other		14,518		15,680
Total other assets	$	173,084	$	134,988

Bancorp maintains life insurance policies other than BOLI in conjunction with its non-qualified defined benefit retirement and non-qualified compensation plans.

Bancorp periodically invests in certain partnerships with customers that generate federal income tax credits. The tax benefit of these investments exceeds to amortization expense associated with them, resulting in a positive impact on net income.

Bancorp enters into interest rate swap transactions with borrowers who desire to hedge exposure to rising interest rates, while at the same time entering into an offsetting interest rate swap, with substantially matching terms, with another approved independent counterparty. These are undesignated derivative instruments and are recognized on the balance sheet at fair value. For additional information, see the footnote titled “Derivative Financial Instruments.”

For additional information related to MSRs, see the footnote titled “Mortgage Banking Activities.”