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Fair Value Disclosures (Tables)
3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value of Recurring Basis
The following table presents the assets and liabilities measured at fair value on a recurring basis at March 31, 2020 and December 31, 2019, classified using the fair value hierarchy:
 At March 31, 2020
(Dollars in thousands)Level 1Level 2Level 3Assets/
Liabilities at
Fair Value
Assets:
Available-for-sale securities:
U.S. government corporations and agencies$—  $300  $—  $300  
State and political subdivisions—  30,600  —  30,600  
Residential mortgage-backed securities—  85,422  —  85,422  
Collateralized mortgage obligations—  978  —  978  
Corporate bonds—  81,586  —  81,586  
Total available-for-sale securities—  198,886  —  198,886  
Equity securities:
Equity securities - financial services industry736  —  —  736  
Money market mutual funds1,510  —  —  1,510  
Total equity securities2,246  —  —  2,246  
Loans*—  —  288  288  
Interest rate locks with customers*—  2,911  —  2,911  
Total assets$2,246  $201,797  $288  $204,331  
Liabilities:
Contingent consideration liability$—  $—  $135  $135  
Interest rate swaps*—  717  —  717  
Credit derivatives*—  —  1,109  1,109  
Forward loan sale commitments*—  886  —  886  
Total liabilities$—  $1,603  $1,244  $2,847  

The Corporation recorded no unrealized gains and losses within other comprehensive income for recurring Level 3 fair value measurements held at March 31, 2020. The $1.1 million of credit derivatives liability represents the Credit Valuation Adjustment (CVA), which is obtained from real-time financial market data, of 46 interest rate swaps with a current notional amount of $317.7 million. The March 31, 2020 CVA assumes a zero-deal recovery percentage based on the most recent index credit curve.
 At December 31, 2019
(Dollars in thousands)Level 1Level 2Level 3Assets/
Liabilities at
Fair Value
Assets:
Available-for-sale securities:
U.S. government corporations and agencies$—  $300  $—  $300  
State and political subdivisions—  34,595  —  34,595  
Residential mortgage-backed securities—  118,460  —  118,460  
Collateralized mortgage obligations—  2,361  —  2,361  
Corporate bonds—  91,208  —  91,208  
Total available-for-sale securities—  246,924  —  246,924  
Equity securities:
Equity securities - financial services industry1,004  —  —  1,004  
Money market mutual funds1,619  —  —  1,619  
Total equity securities2,623  —  —  2,623  
Loans*—  —  317  317  
Interest rate locks with customers*—  399  —  399  
Total assets$2,623  $247,323  $317  $250,263  
Liabilities:
Contingent consideration liability$—  $—  $160  $160  
Interest rate swaps*—  249  —  249  
Credit derivatives*—  —  176  176  
Forward loan sale commitments*—  19  —  19  
Total liabilities$—  $268  $336  $604  
* Such financial instruments are recorded at fair value as further described in Note 11, "Derivative Instruments and Hedging Activities.
Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Level 3 Rollforward
The following table includes a rollforward of corporate bonds, loans and credit derivatives for which the Corporation utilized Level 3 inputs to determine fair value on a recurring basis for the three months ended March 31, 2020 and 2019:
 Three Months Ended March 31, 2020
(Dollars in thousands)Balance at
December 31,
2019
Purchases/additionsSalesPayments receivedPremium amortization, netIncrease in valueBalance at March 31, 2020
Loans$317  $—  $—  $(30) $—  $ $288  
Credit derivatives(176) (1,073) —  —  —  140  (1,109) 
Net total $141  $(1,073) $—  $(30) $—  $141  $(821) 

 Three Months Ended March 31, 2019
(Dollars in thousands)Balance at
December 31,
2018
Purchases/additionsSalesPayments receivedPremium amortization, netIncrease in valueBalance at March 31, 2019
Corporate bonds$25,729  $—  $—  $—  $—  $910  $26,639  
Loans1,779  —  —  (39) —   1,748  
Credit derivatives(72) (271) —  —  —  264  (79) 
Net total$27,436  $(271) $—  $(39) $—  $1,182  $28,308  
Contingent Consideration Liability Change In Amount
The following table presents the change in the balance of the contingent consideration liability related to acquisitions for which the Corporation utilized Level 3 inputs to determine fair value on a recurring basis for the three months ended March 31, 2020 and 2019:
 Three Months Ended March 31, 2020
(Dollars in thousands)Balance at
December 31,
2019
Contingent
Consideration
from New
Acquisition
Payment of
Contingent
Consideration
Adjustment
of Contingent
Consideration
Balance at March 31, 2020
Girard Partners$160  $—  $31  $ $135  
Total contingent consideration liability$160  $—  $31  $ $135  

 Three Months Ended March 31, 2019
(Dollars in thousands)Balance at
December 31,
2018
Contingent
Consideration
from New
Acquisition
Payment of
Contingent
Consideration
Adjustment
of Contingent
Consideration
Balance at March 31, 2019
Girard Partners$259  $—  $33  $ $235  
Total contingent consideration liability$259  $—  $33  $ $235  
Assets Measured at Fair Value on Non-Recurring Basis
The Corporation may be required to periodically measure certain assets and liabilities at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or market accounting or changes in the value of loans held for investment analyzed on an individual basis. The following table represents assets measured at fair value on a non-recurring basis at March 31, 2020 and December 31, 2019:
 At March 31, 2020
(Dollars in thousands)Level 1Level 2Level 3Assets at
Fair Value
Individually analyzed loans held for investment$—  $—  $33,596  $33,596  
Other real estate owned—  —  516  516  
Total$—  $—  $34,112  $34,112  

 At December 31, 2019
(Dollars in thousands)Level 1Level 2Level 3Assets at
Fair Value
Impaired loans held for investment$—  $—  $36,018  $36,018  
Impaired leases held for investment—  —  277  277  
Other real estate owned—  —  516  516  
Total$—  $—  $36,811  $36,811  
Assets, Liabilities and Off-Balance Sheet Items Not Measured at Fair Value
The following table presents assets and liabilities and off-balance sheet items not measured at fair value on a recurring or non-recurring basis in the Corporation’s consolidated balance sheets but for which the fair value is required to be disclosed at March 31, 2020 and December 31, 2019. The disclosed fair values are classified using the fair value hierarchy.
 At March 31, 2020
(Dollars in thousands)Level 1Level 2Level 3Fair
Value
Carrying
Amount
Assets:
Cash and short-term interest-earning assets$182,902  $—  $—  $182,902  $182,902  
Held-to-maturity securities—  229,552  —  229,552  222,389  
Federal Home Loan Bank, Federal Reserve Bank and other stockNA  NA  NA  NA  28,465  
Loans held for sale—  11,525  —  11,525  11,417  
Net loans and leases held for investment—  —  4,454,495  4,454,495  4,346,725  
Servicing rights—  —  6,684  6,684  6,440  
Total assets$182,902  $241,077  $4,461,179  $4,885,158  $4,798,338  
Liabilities:
Deposits:
Demand and savings deposits, non-maturity$3,770,291  $—  $—  $3,770,291  $3,770,291  
Time deposits—  647,933  —  647,933  637,012  
Total deposits3,770,291  647,933  —  4,418,224  4,407,303  
Short-term borrowings—  18,415  —  18,415  18,415  
Long-term debt—  214,492  —  214,492  210,069  
Subordinated notes—  91,872  —  91,872  94,879  
Total liabilities$3,770,291  $972,712  $—  $4,743,003  $4,730,666  
Off-Balance-Sheet:
Commitments to extend credit$—  $(8,033) $—  $(8,033) $—  
 At December 31, 2019
(Dollars in thousands)Level 1Level 2Level 3Fair
Value
Carrying
Amount
Assets:
Cash and short-term interest-earning assets$125,128  $—  $—  $125,128  $125,128  
Held-to-maturity securities—  194,886  —  194,886  192,052  
Federal Home Loan Bank, Federal Reserve Bank and other stockNA  NA  NA  NA  28,254  
Loans held for sale—  5,560  —  5,560  5,504  
Net loans and leases held for investment—  —  4,309,208  4,309,208  4,314,893  
Servicing rights—  —  9,340  9,340  6,626  
Total assets$125,128  $200,446  $4,318,548  $4,644,122  $4,672,457  
Liabilities:
Deposits:
Demand and savings deposits, non-maturity$3,754,065  $—  $—  $3,754,065  $3,754,065  
Time deposits—  609,387  —  609,387  606,010  
Total deposits3,754,065  609,387  —  4,363,452  4,360,075  
Short-term borrowings—  18,680  —  18,680  18,680  
Long-term debt—  151,343  —  151,343  150,098  
Subordinated notes—  96,663  —  96,663  94,818  
Total liabilities$3,754,065  $876,073  $—  $4,630,138  $4,623,671  
Off-Balance-Sheet:
Commitments to extend credit$—  $(8,070) $—  $(8,070) $—