Fair Value Measurements (Tables)
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12 Months Ended |
Dec. 31, 2021 |
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| Fair Value Measurements |
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| Schedule of balance of assets and liabilities which are measured at fair value on a recurring basis |
| | | | | | | | | | | | | | | December 31, 2021 | | | Level 1 | | Level 2 | | Level 3 | | Total | Assets: | | | | | | | | | | | | | Securities available-for-sale | | | | | | | | | | | | | U.S. Treasury | | $ | 202,339 | | $ | - | | $ | - | | $ | 202,339 | U.S. government agencies | | | - | | | 61,888 | | | - | | | 61,888 | U.S. government agencies mortgage-backed | | | - | | | 172,302 | | | - | | | 172,302 | States and political subdivisions | | | - | | | 242,373 | | | 14,092 | | | 256,465 | Corporate bonds | | | - | | | 9,887 | | | - | | | 9,887 | Collateralized mortgage obligations | | | - | | | 672,967 | | | - | | | 672,967 | Asset-backed securities | | | - | | | 236,877 | | | - | | | 236,877 | Collateralized loan obligations | | | - | | | 79,763 | | | - | | | 79,763 | Loans held-for-sale | | | - | | | 4,737 | | | - | | | 4,737 | Mortgage servicing rights | | | - | | | - | | | 7,097 | | | 7,097 | Interest rate swap agreements | | | - | | | 3,494 | | | - | | | 3,494 | Mortgage banking derivatives | | | - | | | 508 | | | - | | | 508 | Total | | $ | 202,339 | | $ | 1,484,796 | | $ | 21,189 | | $ | 1,708,324 | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | Interest rate swap agreements, including risk participation agreements | | $ | - | | $ | 6,809 | | $ | - | | $ | 6,809 | Total | | $ | - | | $ | 6,809 | | $ | - | | $ | 6,809 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | December 31, 2020 | | | Level 1 | | Level 2 | | Level 3 | | Total | Assets: | | | | | | | | | | | | | Securities available-for-sale | | | | | | | | | | | | | U.S. Treasury | | $ | 4,117 | | $ | - | | $ | - | | $ | 4,117 | U.S. government agencies | | | - | | | 6,657 | | | - | | | 6,657 | U.S. government agencies mortgage-backed | | | - | | | 17,209 | | | - | | | 17,209 | States and political subdivisions | | | - | | | 244,940 | | | 4,319 | | | 249,259 | Collateralized mortgage obligations | | | - | | | 56,585 | | | - | | | 56,585 | Asset-backed securities | | | - | | | 131,818 | | | - | | | 131,818 | Collateralized loan obligations | | | - | | | 30,533 | | | - | | | 30,533 | Loans held-for-sale | | | - | | | 12,611 | | | - | | | 12,611 | Mortgage servicing rights | | | - | | | - | | | 4,224 | | | 4,224 | Interest rate swap agreements | | | - | | | 9,388 | | | - | | | 9,388 | Mortgage banking derivatives | | | - | | | 840 | | | - | | | 840 | Total | | $ | 4,117 | | $ | 510,581 | | $ | 8,543 | | $ | 523,241 | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | Interest rate swap agreements, including risk participation agreements | | $ | - | | $ | 13,159 | | $ | - | | $ | 13,159 | Total | | $ | - | | $ | 13,159 | | $ | - | | $ | 13,159 |
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| Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis |
| | | | | | | | | Year Ended December 31, 2021 | | | Securities available-for-sale | | | | | | States and | | Mortgage | | | Political | | Servicing | | | Subdivisions | | Rights | Beginning balance January 1, 2021 | | $ | 4,319 | | $ | 4,224 | Total gains or losses | | | | | | | Included in earnings | | | (20) | | | 2,420 | Included in other comprehensive income | | | 801 | | | - | Purchases, issuances, sales, and settlements | | | | | | | Purchases | | | 9,919 | | | - | Issuances | | | - | | | 1,612 | Settlements | | | (927) | | | (1,159) | Ending balance December 31, 2021 | | $ | 14,092 | | $ | 7,097 | | | | | | | |
| | | | | | | | | Year Ended December 31, 2020 | | | Securities available-for-sale | | | | | | States and | | Mortgage | | | Political | | Servicing | | | Subdivisions | | Rights | Beginning balance January 1, 2020 | | $ | 5,419 | | $ | 5,935 | Total gains or losses | | | | | | | Included in earnings | | | (20) | | | (2,483) | Included in other comprehensive income | | | (628) | | | - | Purchases, issuances, sales, and settlements | | | | | | | Purchases | | | 13,086 | | | - | Issuances | | | - | | | 2,288 | Settlements | | | (13,538) | | | (1,516) | Ending balance December 31, 2020 | | $ | 4,319 | | $ | 4,224 | | | | | | | |
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| Schedule of quantitative information about level 3 fair value measurements |
The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of December 31, 2021: | | | | | | | | | | | | | | | | | | | | | | | | Weighted | Measured at fair value | | | | | | | Significant Unobservable | | | | Average | on a recurring basis: | | Fair Value | | Valuation Methodology | | Inputs | | Range of Input | | of Inputs | | | | | | | | | | | | | | Mortgage servicing rights | | $ | 7,097 | | Discounted Cash Flow | | Discount Rate | | 11.0 - 15.0% | | 11.0 | % | | | | | | | | Prepayment Speed | | 0.0 - 36.6% | | 11.9 | % | | | | | | | | | | | | | | | | | | | | | | | | | | |
The following table and commentary presents quantitative and qualitative information about Level 3 fair value measurements as of December 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | Weighted | Measured at fair value | | | | | | | Significant Unobservable | | | | Average | on a recurring basis: | | Fair Value | | Valuation Methodology | | Inputs | | Range of Input | | of Inputs | | | | | | | | | | | | | | Mortgage servicing rights | | $ | 4,224 | | Discounted Cash Flow | | Discount Rate | | 11.0 - 15.0% | | 11.0 | % | | | | | | | | Prepayment Speed | | 5.5 - 59.1% | | 19.5 | % | | | | | | | | | | | | | |
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| Schedule of assets measured at fair value on a nonrecurring basis |
| | | | | | | | | | | | | | | December 31, 2021 | | | Level 1 | | Level 2 | | Level 3 | | Total | Individually evaluated loans1 | | $ | - | | $ | - | | $ | 13,138 | | $ | 13,138 | Other real estate owned, net2 | | | - | | | - | | | 2,356 | | | 2,356 | Total | | $ | - | | $ | - | | $ | 15,494 | | $ | 15,494 |
| 1 | Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, had a carrying amount of $18.5 million and a valuation allowance of $5.4 million, resulting in an increase of specific allocations within the provision for credit losses of $2.7 for the year ending December 31, 2021. |
| 2 | OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $2.4 million, which is made up of the outstanding balance of $3.7 million, net of a valuation allowance of $1.2 million and purchase accounting adjustments of $131,000 at December 31, 2021. |
| | | | | | | | | | | | | | | December 31, 2020 | | | Level 1 | | Level 2 | | Level 3 | | Total | Individually evaluated loans1 | | $ | - | | $ | - | | $ | 9,675 | | $ | 9,675 | Other real estate owned, net2 | | | - | | | - | | | 2,474 | | | 2,474 | Total | | $ | - | | $ | - | | $ | 12,149 | | $ | 12,149 |
| 1 | Represents carrying value and related write-downs of loans for which adjustments are substantially based on the appraised value of collateral for collateral-dependent loans, had a carrying amount of $12.3 million and a valuation allowance of $2.6 million, resulting in an increase of specific allocations within the provision for loan and lease losses of $1.4 million for the year ending December 31, 2020. |
| 2 | OREO is measured at the lower of carrying or fair value less costs to sell, and had a net carrying amount of $2.5 million, which is made up of the outstanding balance of $4.1 million, net of a valuation allowance of $1.6 million, at December 31, 2020. |
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