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Fair Value Disclosures (Tables)
12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on Recurring Basis
The following table presents the assets and liabilities measured at fair value on a recurring basis at December 31, 2022 and 2021, classified using the fair value hierarchy:
 At December 31, 2022
(Dollars in thousands)Level 1Level 2Level 3Assets/
Liabilities at
Fair Value
Assets:
Available-for-sale securities:
State and political subdivisions$ $2,285 $ $2,285 
Residential mortgage-backed securities 263,388  263,388 
Collateralized mortgage obligations 2,322  2,322 
Corporate bonds 82,261  82,261 
Total available-for-sale securities 350,256  350,256 
Equity securities:
Equity securities - financial services industry780   780 
Money market mutual funds1,799   1,799 
Total equity securities2,579   2,579 
Loans held for sale 5,037  5,037 
Interest rate locks with customers* 119  119 
Forward loan sale commitments* 29  29 
Total assets$2,579 $355,441 $ $358,020 
Liabilities:
Contingent consideration liability$ $ $1,765 $1,765 
Interest rate swaps* 8,647  8,647 
Credit derivatives*  360 360 
Total liabilities$ $8,647 $2,125 $10,772 
*Such financial instruments are recorded at fair value as further described in Note 18, "Derivative Instruments and Hedging Activities."
The $360 thousand of credit derivatives liability represents the Credit Valuation Adjustment (CVA), which is obtained from real-time financial market data, of 127 interest rate swaps with a current notional amount of $815.5 million. The December 31, 2022 CVA assumes a zero-deal recovery percentage based on the most recent index credit curve.

The contingent consideration liability resulting from the acquisition was $1.6 million, which was calculated using a discount rate of 8.3%. The potential cash payments that could result from the contingent consideration arrangement for the Sheaffer acquisition range from $0 to a maximum of $1.9 million over the three-year period ending November 30, 2024.
 At December 31, 2021
(Dollars in thousands)Level 1Level 2Level 3Assets/
Liabilities at
Fair Value
Assets:
Available-for-sale securities:
State and political subdivisions$— $2,333 $— $2,333 
Residential mortgage-backed securities— 221,105 — 221,105 
Collateralized mortgage obligations— 3,278 — 3,278 
Corporate bonds— 90,291 — 90,291 
Total available-for-sale securities— 317,007 — 317,007 
Equity securities:
Equity securities - financial services industry979 — — 979 
Money market mutual funds2,020 — — 2,020 
Total equity securities2,999 — — 2,999 
Loans*— — 48 48 
Loans held for sale— 21,600 — 21,600 
Interest rate locks with customers*— 765 — 765 
Total assets$2,999 $339,459 $48 $342,506 
Liabilities:
Contingent consideration liability$— $— $1,629 $1,629 
Interest rate swaps*— 204 — 204 
Credit derivatives*— — 381 381 
Total liabilities$— $204 $2,010 $2,214 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
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 years ended December 31, 2022 and 2021.
 For the Year Ended December 31, 2022
(Dollars in thousands)Balance at December 31, 2021AdditionsPayments receivedIncrease in valueTransfer from Level 3Balance at December 31, 2022
Loans$48 $ $(48)$ $ $ 
Credit derivatives(381)(2,850) 2,871  (360)
Net total $(333)$(2,850)$(48)$2,871 $ $(360)
 For the Year Ended December 31, 2021
(Dollars in thousands)Balance at
December 31,
2020
AdditionsPayments received(Increase) decrease in valueTransfer from Level 3Balance at December 31, 2021
Corporate bonds$9,600 $— $— $277 (9,877)$— 
Loans187 — (133)(6)— 48 
Credit derivatives(535)(2,097)— 2,251 — (381)
Net total $9,252 $(2,097)$(133)$2,522 $(9,877)$(333)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
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 years ended December 31, 2022 and 2021.
 For the Year Ended December 31, 2022
(Dollars in thousands)Balance at December 31, 2021AdditionsPayments receivedIncrease in valueTransfer from Level 3Balance at December 31, 2022
Loans$48 $ $(48)$ $ $ 
Credit derivatives(381)(2,850) 2,871  (360)
Net total $(333)$(2,850)$(48)$2,871 $ $(360)
 For the Year Ended December 31, 2021
(Dollars in thousands)Balance at
December 31,
2020
AdditionsPayments received(Increase) decrease in valueTransfer from Level 3Balance at December 31, 2021
Corporate bonds$9,600 $— $— $277 (9,877)$— 
Loans187 — (133)(6)— 48 
Credit derivatives(535)(2,097)— 2,251 — (381)
Net total $9,252 $(2,097)$(133)$2,522 $(9,877)$(333)
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 years ended December 31, 2022 and 2021:
 For the Year Ended December 31, 2022
(Dollars in thousands)Balance at December 31, 2021Contingent
Consideration
from New
Acquisition
Payment of
Contingent
Consideration
Adjustment
of Contingent
Consideration
Balance at December 31, 2022
Paul I. Sheaffer Insurance Agency$1,629 $ $ $136 $1,765 
Total contingent consideration liability$1,629 $ $ $136 $1,765 
 For the Year Ended December 31, 2021
(Dollars in thousands)Balance at
December 31,
2020
Contingent
Consideration
from New
Acquisition
Payment of
Contingent
Consideration
Adjustment
of Contingent
Consideration
Balance at December 31, 2021
Girard Partners$55 $— $58 $$— 
Paul I. Sheaffer Insurance Agency— 1,618 — 11 1,629 
Total contingent consideration liability$55 $1,618 $58 $14 $1,629 
Assets Measured at Fair Value on Non-Recurring Basis
The Corporation may be required to periodically measure certain assets and liabilities at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or market accounting or changes in the value of loans held for investment analyzed on an individual basis. The following table represents assets measured at fair value on a non-recurring basis at December 31, 2022 and 2021:
 At December 31, 2022
(Dollars in thousands)Level 1Level 2Level 3Assets at
Fair Value
Individually analyzed loans held for investment$ $ $10,586 $10,586 
Other real estate owned  19,258 19,258 
Total$ $ $29,844 $29,844 
 At December 31, 2021
(Dollars in thousands)Level 1Level 2Level 3Assets at
Fair Value
Individually analyzed loans held for investment$— $— $33,118 $33,118 
Other real estate owned— — 279 279 
Total$— $— $33,397 $33,397 
Assets, Liabilities and Off-Balance Sheet Items Not Measured at Fair Value
The following table presents assets and liabilities not measured at fair value on a recurring or non-recurring basis in the Corporation's consolidated balance sheet but for which the fair value is required to be disclosed at December 31, 2022 and 2021. The disclosed fair values are classified using the fair value hierarchy.
 At December 31, 2022
(Dollars in thousands)Level 1Level 2Level 3Fair
Value
Carrying
Amount
Assets:
Cash and short-term interest-earning assets$152,799 $ $ $152,799 $152,799 
Held-to-maturity securities 134,068  134,068 154,727 
Federal Home Loan Bank, Federal Reserve Bank and other stockN/AN/AN/AN/A33,841 
Net loans and leases held for investment  5,912,050 5,912,050 6,033,640 
Servicing rights  16,826 16,826 8,572 
Total assets$152,799 $134,068 $5,928,876 $6,215,743 $6,383,579 
Liabilities:
Deposits:
Demand and savings deposits, non-maturity$5,394,442 $ $ $5,394,442 $5,394,442 
Time deposits 503,576  503,576 519,084 
Total deposits5,394,442 503,576  5,898,018 5,913,526 
Short-term borrowings 197,141  197,141 197,141 
Long-term debt 91,926  91,926 95,000 
Subordinated notes 147,250  147,250 148,260 
Total liabilities$5,394,442 $939,893 $ $6,334,335 $6,353,927 
 At December 31, 2021
(Dollars in thousands)Level 1Level 2Level 3Fair
Value
Carrying
Amount
Assets:
Cash and short-term interest-earning assets$890,150 $— $— $890,150 $890,150 
Held-to-maturity securities— 178,402 — 178,402 176,983 
Federal Home Loan Bank, Federal Reserve Bank and other stockN/AN/AN/AN/A28,186 
Net loans and leases held for investment— — 5,244,504 5,244,504 5,204,927 
Servicing rights— — 11,331 11,331 7,878 
Total assets$890,150 $178,402 $5,255,835 $6,324,387 $6,308,124 
Liabilities:
Deposits:
Demand and savings deposits, non-maturity$5,570,958 $— $— $5,570,958 $5,570,958 
Time deposits— 487,874 — 487,874 484,166 
Total deposits5,570,958 487,874 — 6,058,832 6,055,124 
Short-term borrowings— 20,106 — 20,106 20,106 
Long-term debt— 95,707 — 95,707 95,000 
Subordinated notes— 107,000 — 107,000 98,874 
Total liabilities$5,570,958 $710,687 $— $6,281,645 $6,269,104