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Fair Value Measurement and Fair Value of Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value of Financial Assets and Liabilities Measured on Recurring Basis
The following table sets forth the Company’s financial assets that were accounted for at fair value on a recurring basis as of the periods presented by level within the fair value hierarchy. During the nine months ended September 30, 2023 and during 2022, the Company did not make any transfers between any levels within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
September 30, 2023Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Fair Value
(in thousands)
Assets:
Investment securities, available for sale
U.S. Treasury and government agencies$143,474 $177,414 $— $320,888 
Mortgage-backed securities, residential— 279,283 — 279,283 
Collateralized mortgage obligations, residential— 138,033 — 138,033 
Mortgage-backed securities, multifamily— 640 — 640 
Collateralized mortgage obligations, multifamily— 44,136 — 44,136 
Asset-backed securities— 45,824 — 45,824 
Obligations of states and political subdivisions— 19,002 — 19,002 
Corporate bonds— 94,704 — 94,704 
Total investment securities, available for sale143,474 799,036 — 942,510 
Equity securities— 17,207 — 17,207 
Derivative assets— 122,286 — 122,286 
Total Assets$143,474 $938,529 $— $1,082,003 
Liabilities:
Derivative liabilities$— $122,290 $— $122,290 
Total Liabilities$— $122,290 $— $122,290 
December 31, 2022Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Fair Value
(in thousands)
Assets:
Investment securities, available for sale
U.S. Treasury and government agencies$162,438 $193,201 $— $355,639 
Mortgage-backed securities, residential— 310,613 — 310,613 
Collateralized mortgage obligations, residential— 154,058 — 154,058 
Mortgage-backed securities, multifamily— 785 — 785 
Collateralized mortgage obligations, multifamily— 46,333 — 46,333 
Asset-backed securities— 52,395 — 52,395 
Obligations of states and political subdivisions— 21,122 — 21,122 
Corporate bonds— 113,367 — 113,367 
Total investment securities, available for sale162,438 891,874 — 1,054,312 
Equity securities— 17,283 — 17,283 
Derivative assets— 97,848 — 97,848 
Total Assets$162,438 $1,007,005 $— $1,169,443 
Liabilities:
Derivative liabilities$— $97,848 $— $97,848 
Total Liabilities$— $97,848 $— $97,848 
Fair Value of Assets Measured on Non-recurring Basis
The following table summarized the Company’s financial assets that are measured at fair value on a non-recurring basis. Assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
(in thousands)(Level 1)(Level 2)(Level 3)Total
Fair Value
September 30, 2023
Assets:
Individually evaluated loans$— $— $— $— 
December 31, 2022
Assets:
Individually evaluated loans$— $— $4,489 $4,489 
Carrying Values and Fair Values of Company's Financial Instruments
The following table presents the carrying values, fair values and placement in the fair value hierarchy of the Company’s financial instruments not carried at fair value as of September 30, 2023 and December 31, 2022:
September 30, 2023Carrying
Value
Fair
Value
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
(in thousands)
Financial Assets:
Investment securities, held to maturity
U.S. government agencies$10,598 $9,917 $— $9,917 $— 
Mortgage-backed securities, residential339,427 268,310 — 268,310 — 
Collateralized mortgage obligations, residential12,474 9,412 — 9,412 — 
Mortgage-backed securities, multifamily5,024 4,141 — 4,141 — 
Obligations of states and political subdivisions477,297 362,673 — 357,694 4,979 
Corporate bonds2,879 2,272 — 2,272 — 
Total investment securities, held to maturity$847,699 $656,725 $— $651,746 $4,979 
Federal Home Loan Bank and other membership bank stocks53,580 53,580 — 53,580 — 
Loans, net8,218,898 7,722,899 — — 7,722,899 
Financial Liabilities:
Certificates of deposit1,882,933 1,867,124 — 1,867,124 — 
Long-term FHLB advances325,000 326,507 — 326,507 — 
Subordinated debentures194,596 144,443 — — 144,443 
December 31, 2022Carrying
Value
Fair
Value
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
(in thousands)
Financial Assets:
Investment securities, held to maturity
U.S. government agencies$11,099 $10,385 $— $10,385 $— 
Mortgage-backed securities, residential360,683 302,612 — 302,612 — 
Collateralized mortgage obligations, residential13,026 10,456 — 10,456 — 
Mortgage-backed securities, multifamily5,094 4,347 — 4,347 — 
Obligations of states and political subdivisions530,506 430,108 — 428,635 1,473 
Corporate bonds2,900 2,547 — 2,547 — 
Total investment securities, held to maturity923,308 760,455 — 758,982 1,473 
Federal Home Loan Bank and other membership bank stocks42,483 42,483 — 42,483 — 
Loans, net7,795,786 7,561,997 — — 7,561,997 
Financial Liabilities:
Certificates of deposit1,208,177 1,174,230 — 1,174,230 — 
Long-term FHLB advances25,000 23,001 — 23,001 — 
Subordinated debentures194,264 160,933 — — 160,933