Note 6 - Other Assets

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Other Assets Disclosure [Text Block]

(6) Other Assets

A summary of the major components of other assets follows:

	September 30,		December 31,
(in thousands)	2024		2023
Cash surrender value of life insurance other than BOLI	$	19,880	$	17,843
Net deferred tax asset		45,647		47,236
Investments in tax credit partnerships		177,194		175,056
Swap assets		2,489		5,133
Prepaid assets		4,242		5,873
WM&T fees receivable		4,459		4,205
Mortgage servicing rights		11,908		13,082
Other real estate owned		10		10
Other		14,537		18,922
Total other assets	$	280,366	$	287,360

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 that generate federal income tax credits. The tax benefit of these investments exceeds the amortization expense associated with them, resulting in a positive impact on net income. The investments in such partnerships are recorded in other assets on the consolidated balance sheets, while the corresponding contribution requirements are recorded in other liabilities. For additional information, see the footnote titled “Income Taxes.”

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.”