10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 Form 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2023

or

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from __________ to __________

Commission File Number: 0-7617

 UNIVEST FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Pennsylvania	23-1886144
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

14 North Main Street, Souderton, Pennsylvania 18964

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (215) 721-2400

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of class	Trading symbol	Name of exchange on which registered
Common Stock, $5 par value	UVSP	The NASDAQ Stock Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock, $5 par value	29,429,373
(Title of Class)	(Number of shares outstanding at May 1, 2023)

UNIVEST FINANCIAL CORPORATION AND SUBSIDIARIES

INDEX

 

			Page Number
Part I.	Financial Information:
	Item 1.	Financial Statements (Unaudited)
		Condensed Consolidated Balance Sheets at March 31, 2023 and December 31, 2022	2
		Condensed Consolidated Statements of Income for the Three Months Ended March 31, 2023 and 2022	3
		Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2023 and 2022	4
		Condensed Consolidated Statements of Changes in Shareholders’ Equity for the Three Months Ended March 31, 2023 and 2022	5
		Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2023 and 2022	6
		Notes to Condensed Consolidated Financial Statements	7
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	39
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	53
	Item 4.	Controls and Procedures	53
Part II.	Other Information
	Item 1.	Legal Proceedings	53
	Item 1A.	Risk Factors	53
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	54
	Item 3.	Defaults Upon Senior Securities	54
	Item 4.	Mine Safety Disclosures	54
	Item 5.	Other Information	55
	Item 6.	Exhibits	56
Signatures			57

1

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

UNIVEST FINANCIAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

	(Unaudited)
(Dollars in thousands, except share data)	At March 31, 2023		At December 31, 2022
ASSETS
Cash and due from banks	$	71,215	$	84,176
Interest-earning deposits with other banks	67,109		68,623
Cash and cash equivalents	138,324		152,799
Investment securities held-to-maturity (fair value $133,147 and $134,068 at March 31, 2023 and December 31, 2022, respectively)	151,347		154,727
Investment securities available-for-sale (amortized cost $414,118 and $402,111, net of allowance for credit losses of $1,432 and $1,140 at March 31, 2023 and December 31, 2022, respectively)	367,656		350,256
Investments in equity securities	3,105		2,579
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost	43,792		33,841
Loans held for sale	5,425		5,037
Loans and leases held for investment	6,239,804		6,123,230
Less: Allowance for credit losses, loans and leases	(80,034)		(79,004)
Net loans and leases held for investment	6,159,770		6,044,226
Premises and equipment, net	52,334		50,939
Operating lease right-of-use assets	31,663		30,059
Goodwill	175,510		175,510
Other intangibles, net of accumulated amortization	11,044		11,384
Bank owned life insurance	128,926		120,297
Accrued interest receivable and other assets	90,095		90,362
Total assets	$	7,358,991	$	7,222,016
LIABILITIES
Noninterest-bearing deposits	$	1,799,225	$	2,047,263
Interest-bearing deposits	4,035,432		3,866,263
Total deposits	5,834,657		5,913,526
Short-term borrowings	271,881		197,141
Long-term debt	220,000		95,000
Subordinated notes	148,385		148,260
Operating lease liabilities	34,846		33,153
Accrued interest payable and other liabilities	50,726		58,436
Total liabilities	6,560,495		6,445,516
SHAREHOLDERS’ EQUITY
Common stock, $5 par value: 48,000,000 shares authorized at March 31, 2023 and December 31, 2022; 31,556,799 shares issued at March 31, 2023 and December 31, 2022; 29,427,696 and 29,271,915 shares outstanding at March 31, 2023 and December 31, 2022, respectively	157,784		157,784
Additional paid-in capital	298,167		300,808
Retained earnings	443,493		428,637
Accumulated other comprehensive loss, net of tax benefit	(55,550)		(62,104)
Treasury stock, at cost; 2,129,103 and 2,284,884 shares at March 31, 2023 and December 31, 2022, respectively	(45,398)		(48,625)
Total shareholders’ equity	798,496		776,500
Total liabilities and shareholders’ equity	$	7,358,991	$	7,222,016

Note: See accompanying notes to the unaudited condensed consolidated financial statements.

2

UNIVEST FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended
	March 31,
(Dollars in thousands, except per share data)	2023		2022
Interest income
Interest and fees on loans and leases	$	78,655	$	48,106
Interest and dividends on investment securities:
Taxable	3,495		2,365
Exempt from federal income taxes	15		15
Interest on deposits with other banks	479		357
Interest and dividends on other earning assets	609		355
Total interest income	83,253		51,198
Interest expense
Interest on deposits	18,336		2,891
Interest on short-term borrowings	2,728		2
Interest on long-term debt and subordinated notes	2,872		1,645
Total interest expense	23,936		4,538
Net interest income	59,317		46,660
Provision (reversal of provision) for credit losses	3,387		(3,450)
Net interest income after provision for credit losses	55,930		50,110
Noninterest income
Trust fee income	1,955		2,102
Service charges on deposit accounts	1,547		1,504
Investment advisory commission and fee income	4,752		5,152
Insurance commission and fee income	6,487		5,570
Other service fee income	3,076		2,756
Bank owned life insurance income	767		699
Net gain on sales of investment securities	—		30
Net gain on mortgage banking activities	625		1,929
Other income	471		728
Total noninterest income	19,680		20,470
Noninterest expense
Salaries, benefits and commissions	31,014		28,245
Net occupancy	2,727		2,716
Equipment	993		982
Data processing	4,029		3,567
Professional fees	1,941		2,138
Marketing and advertising	371		425
Deposit insurance premiums	1,101		893
Intangible expenses	253		341
Other expense	7,100		6,105
Total noninterest expense	49,529		45,412
Income before income taxes	26,081		25,168
Income tax expense	5,047		4,851
Net income	$	21,034	$	20,317
Net income per share:
Basic	$	0.72	$	0.69
Diluted	0.71		0.68

Note: See accompanying notes to the unaudited condensed consolidated financial statements.

3

UNIVEST FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended March 31,
(Dollars in thousands)	2023						2022
	Before Tax Amount		Tax Expense (Benefit)		Net of Tax Amount		Before Tax Amount		Tax Expense (Benefit)		Net of Tax Amount
Income	$	26,081	$	5,047	$	21,034	$	25,168	$	4,851	$	20,317
Other comprehensive income (loss):
Net unrealized gains (losses) on available-for-sale investment securities:
Net unrealized holding gains (losses) arising during the period	5,393		1,133		4,260		(20,369)		(4,278)		(16,091)
Provision for credit losses	292		61		231		346		73		273
Less: reclassification adjustment for net gains on sales realized in net income (1)	—		—		—		(30)		(6)		(24)
Total net unrealized gains (losses) on available-for-sale investment securities	5,685		1,194		4,491		(20,053)		(4,211)		(15,842)
Net unrealized gains on interest rate swaps used in cash flow hedges:
Net unrealized holding gains arising during the period	1,306		274		1,032		76		16		60
Less: reclassification adjustment for net losses realized in net income (2)	1,060		223		837		68		14		54
Total net unrealized gains on interest rate swaps used in cash flow hedges	2,366		497		1,869		144		30		114
Defined benefit pension plans:
Amortization of net actuarial loss included in net periodic pension costs (3)	246		52		194		218		46		172
Total defined benefit pension plans	246		52		194		218		46		172
Other comprehensive income (loss)	8,297		1,743		6,554		(19,691)		(4,135)		(15,556)
Total comprehensive income	$	34,378	$	6,790	$	27,588	$	5,477	$	716	$	4,761

(1) Included in net gain on sales of investment securities on the condensed consolidated statements of income (before tax amount).

(2) Included in interest expense on demand deposits on the condensed consolidated statements of income (before tax amount).

(3) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (before tax amount). See Note 8, "Retirement Plans and Other Postretirement Benefits" for additional details.

Note: See accompanying notes to the unaudited condensed consolidated financial statements.

4

UNIVEST FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)

(Dollars in thousands, except per share data)	Common Shares Outstanding	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total
Three Months Ended March 31, 2023
Balance at December 31, 2022	29,271,915	$	157,784	$	300,808	$	428,637	$	(62,104)	$	(48,625)	$	776,500
Net income	—	—		—		21,034		—		—		21,034
Other comprehensive income, net of income tax	—	—		—		—		6,554		—		6,554
Cash dividends declared ($0.21 per share)	—	—		—		(6,151)		—		—		(6,151)
Stock-based compensation	—	—		1,057		(27)		—		—		1,030
Stock issued under dividend reinvestment and employee stock purchase plans	25,344	—		29		—		—		633		662
Vesting of restricted stock units, net of shares withheld to cover taxes	126,270	—		(3,713)		—		—		2,506		(1,207)
Exercise of stock options	4,167	—		(14)		—		—		88		74
Balance at March 31, 2023	29,427,696	$	157,784	$	298,167	$	443,493	$	(55,550)	$	(45,398)	$	798,496

(Dollars in thousands, except per share data)	Common Shares Outstanding	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock		Total
Three Months Ended March 31, 2022
Balance, December 31, 2021	29,500,542	$	157,784	$	299,181	$	375,124	$	(16,353)	$	(41,942)	$	773,794
Net income	—	—		—		20,317		—		—		20,317
Other comprehensive loss, net of income tax benefit	—	—		—		—		(15,556)		—		(15,556)
Cash dividends declared ($0.20 per share)	—	—		—		(5,905)		—		—		(5,905)
Stock-based compensation	—	—		1,073		(204)		—		—		869
Stock issued under dividend reinvestment and employee stock purchase plans	21,843	—		59		—		—		564		623
Vesting of restricted stock units, net of shares withheld to cover taxes	88,259	—		(2,418)		—		—		1,555		(863)
Exercise of stock options	25,781	—		50		—		—		526		576
Balance at March 31, 2022	29,636,425	$	157,784	$	297,945	$	389,332	$	(31,909)	$	(39,297)	$	773,855

Note: See accompanying notes to the unaudited condensed consolidated financial statements.

5

UNIVEST FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended March 31,
(Dollars in thousands)	2023		2022
Cash flows from operating activities:
Net income	$	21,034	$	20,317
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (reversal of provision) for credit losses	3,387		(3,450)
Depreciation of premises and equipment	1,181		1,101
Net amortization of investment securities premiums and discounts	264		472
Net gain on sales of investment securities	—		(30)
Net gain on mortgage banking activities	(625)		(1,929)
Bank owned life insurance income	(767)		(699)
Stock-based compensation	1,110		934
Intangible expenses	253		341
Other adjustments to reconcile net income to cash used in operating activities	(32)		(910)
Originations of loans held for sale	(28,043)		(73,541)
Proceeds from the sale of loans held for sale	28,430		82,616
Contributions to pension and other postretirement benefit plans	(62)		(63)
(Increase) decrease in accrued interest receivable and other assets	(1,878)		4,316
Decrease in accrued interest payable and other liabilities	(3,512)		(5,535)
Net cash provided by operating activities	20,740		23,940
Cash flows from investing activities:
Proceeds from sale of premises and equipment	5		6,170
Purchases of premises and equipment	(2,590)		(676)
Proceeds from maturities, calls and principal repayments of securities held-to-maturity	3,284		14,335
Proceeds from maturities, calls and principal repayments of securities available-for-sale	6,940		8,501
Proceeds from sales of securities available-for-sale	—		1,530
Purchases of investment securities held-to-maturity	—		(3,936)
Purchases of investment securities available-for-sale	(19,129)		(63,634)
Proceeds from sales of money market mutual funds	10		2,508
Purchases of money market mutual funds	(605)		(2,077)
Net (increase) decrease in other investments	(9,951)		1,856
Proceeds from sale of loans originally held-for-investment	175		—
Net increase in loans and leases	(119,332)		(90,783)
Proceeds from sales of other real estate owned	260		—
Purchases of bank owned life insurance	(7,862)		—
Net cash used in investing activities	(148,795)		(126,206)
Cash flows from financing activities:
Net decrease in deposits	(78,876)		(7,200)
Net increase (decrease) in short-term borrowings	74,740		(1,130)
Proceeds from issuance of long-term debt	150,000		—
Repayment of long-term debt	(25,000)		—
Payment of contingent consideration on acquisitions	(635)		—
Payment for shares withheld to cover taxes on vesting of restricted stock units	(1,207)		(863)
Stock issued under dividend reinvestment and employee stock purchase plans	662		623
Proceeds from exercise of stock options	74		576
Cash dividends paid	(6,178)		(6,109)
Net cash provided by (used in) financing activities	113,580		(14,103)
Net decrease in cash and cash equivalents	(14,475)		(116,369)
Cash and cash equivalents at beginning of year	152,799		890,150
Cash and cash equivalents at end of period	$	138,324	$	773,781
Supplemental disclosures of cash flow information:
Cash paid for interest	$	21,927	$	5,559
Cash paid for income taxes, net of refunds	65		28
Non cash transactions:
Transfer of loans to loans held for sale	$	175	$	—

Note: See accompanying notes to the unaudited condensed consolidated financial statements.

6

UNIVEST FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements (Unaudited)

Note 1. Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Univest Financial Corporation (the Corporation) and its wholly owned subsidiaries. The Corporation’s direct subsidiary is Univest Bank and Trust Co. (the Bank). All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to the rules and regulations for interim financial information. The accompanying unaudited consolidated financial statements reflect all adjustments, which are of a normal recurring nature and are, in the opinion of management, necessary for a fair presentation of the financial statements for the interim periods presented. Certain prior period amounts have been reclassified to conform to the current period presentation. Operating results for the three-month period ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ended December 31, 2023 or for any other period. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and the notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on February 24, 2023.

Use of Estimates

The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes include the fair value measurement of investment securities available-for-sale and the determination of the allowance for credit losses.

Loans

A loan is classified as a modified loan to a borrower experiencing financial difficulty when a contractual loan modification in the form of principal forgiveness, an interest rate reduction, an other-than-significant payment delay or a term extension (or a combination thereof) has been granted to an existing borrower experiencing financial difficulties. The goal when modifying a credit is to establish a reasonable period of time to provide cash flow relief to customers experiencing cash flow difficulties. Accruing modified loans to borrowers experiencing financial difficulty are primarily comprised of loans on which interest is being accrued under the modified terms, and the loans are current or less than 90 days past due.

Loans and Leases - Prior to ASU No. 2022-02 Adoption

The Corporation adopted ASU No. 2022-02 effective January 1, 2023. The following section was carried forward from the Annual Report of Form 10-K for the year ended December 31, 2022.

A loan or lease is classified as a troubled debt restructuring when a concession has been granted to an existing borrower experiencing financial difficulties. The Corporation grants concessions to existing borrowers primarily related to extensions of interest-only payment periods and an occasional payment modification. These modifications typically are for up to one year. The goal when restructuring a credit is to establish a reasonable period of time to provide cash flow relief to customers experiencing cash flow difficulties. Accruing troubled debt restructured loans are primarily comprised of loans on which interest is being accrued under the restructured terms, and the loans are current or less than 90 days past due.

Accounting Pronouncements Adopted in 2023

In March 2022, the FASB issued ASU No. 2022-02, "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted CECL and enhance the disclosure requirements for modifications of receivables made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current period gross write-offs by year of origination for financing receivables and net investment in leases in the existing vintage disclosures. This ASU became

7

effective on January 1, 2023 for the Corporation. The adoption of this ASU resulted in updated disclosures within our financial statements but otherwise did not have a material impact on the Corporation's financial statements.

Recent Accounting Pronouncements Yet to Be Adopted

In March 2023, the FASB issued ASU No. 2023-02, "Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force)". The ASU allows entities to elect the proportional amortization method, on a tax-credit-program-by-tax-credit-program basis, for all equity investments in tax credit programs meeting the eligibility criteria in Accounting Standards Codification (ASC) 323-740-25-1. While the ASU does not significantly alter the existing eligibility criteria, it does provide clarifications to address existing interpretive issues. It also prescribes specific information reporting entities must disclose about tax credit investments each period. This ASU is effective for reporting periods beginning after December 15, 2023, for public business entities, or January 1, 2024 for the Corporation. The Corporation does not expect the adoption of this ASU to have a material impact on the Corporation's financial statements.

Note 2. Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share. For additional information on the calculation of basic and diluted earnings per share, see Note 1, "Summary of Significant Accounting Policies - Earnings per Share" of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2022.

	Three Months Ended
	March 31,
(Dollars and shares in thousands, except per share data)	2023		2022
Numerator for basic and diluted earnings per share—net income available to common shareholders	$	21,034	$	20,317
Denominator for basic earnings per share—weighted-average shares outstanding	29,312		29,542
Effect of dilutive securities—employee stock options and restricted stock units	194		196
Denominator for diluted earnings per share—adjusted weighted-average shares outstanding	29,506		29,738
Basic earnings per share	$	0.72	$	0.69
Diluted earnings per share	$	0.71	$	0.68
Average antidilutive options and restricted stock units excluded from computation of diluted earnings per share	229		249

8

Note 3. Investment Securities

The following table shows the amortized cost, the estimated fair value and the allowance for credit losses of the held-to-maturity securities and available-for-sale securities at March 31, 2023 and December 31, 2022, by contractual maturity within each type:

	At March 31, 2023
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Securities Held-to-Maturity
Residential mortgage-backed securities:
After 1 year to 5 years	$	2,554	$	—	$	(87)			$	2,467
After 5 years to 10 years	7,531		—		(398)		—		7,133
Over 10 years	141,262		—		(17,715)		—		123,547
	151,347		—		(18,200)		—		133,147
Total	$	151,347	$	—	$	(18,200)	$	—	$	133,147
Securities Available-for-Sale
State and political subdivisions:
Within 1 year	$	1,030	$	1	$	—	$	—	$	1,031
After 1 year to 5 years	1,297		—		(31)		—		1,266
	2,327		1		(31)		—		2,297
Residential mortgage-backed securities:
After 1 year to 5 years	784		—		(29)		—		755
After 5 years to 10 years	15,617		—		(1,194)		—		14,423
Over 10 years	301,712		32		(36,128)		—		265,616
	318,113		32		(37,351)		—		280,794
Collateralized mortgage obligations:
After 5 years to 10 years	305		—		(18)		—		287
Over 10 years	2,199		—		(215)		—		1,984
	2,504		—		(233)		—		2,271
Corporate bonds:
Within 1 year	1,500		—		(1)		(1)		1,498
After 1 year to 5 years	29,674		4		(1,163)		(200)		28,315
After 5 years to 10 years	60,000		—		(6,288)		(1,231)		52,481
	91,174		4		(7,452)		(1,432)		82,294
Total	$	414,118	$	37	$	(45,067)	$	(1,432)	$	367,656

9

	At December 31, 2022
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Securities Held-to-Maturity
Residential mortgage-backed securities:
After 1 year to 5 years	$	1,654	$	—	$	(70)	$	—	$	1,584
After 5 years to 10 years	6,076		—		(342)		—		5,734
Over 10 years	146,997		—		(20,247)		—		126,750
	154,727		—		(20,659)		—		134,068
Total	$	154,727	$	—	$	(20,659)	$	—	$	134,068
Securities Available-for-Sale
State and political subdivisions:
After 1 year to 5 years	$	2,327	$	—	$	(42)	$	—	$	2,285
	2,327		—		(42)		—		2,285
Residential mortgage-backed securities:
After 1 year to 5 years	864		—		(37)		—		827
After 5 years to 10 years	10,399		—		(815)		—		9,584
Over 10 years	294,261		7		(41,291)		—		252,977
	305,524		7		(42,143)		—		263,388
Collateralized mortgage obligations:
After 5 years to 10 years	324		—		(22)		—		302
Over 10 years	2,257		—		(237)		—		2,020
	2,581		—		(259)		—		2,322
Corporate bonds:
Within 1 year	1,000		—		—		—		1,000
After 1 year to 5 years	30,679		3		(1,516)		(152)		29,014
After 5 years to 10 years	60,000		—		(6,765)		(988)		52,247
	91,679		3		(8,281)		(1,140)		82,261
Total	$	402,111	$	10	$	(50,725)	$	(1,140)	$	350,256

Gross unrealized gains and losses on available-for-sale securities are recognized in accumulated other comprehensive income (loss) and changes in the allowance for credit loss are recorded in provision for credit loss expense. Expected maturities may differ from contractual maturities because debt issuers may have the right to call or prepay obligations without call or prepayment penalties and mortgage-backed securities typically prepay at a rate faster than contractually due.

Securities with a carrying value of $327.8 million and $429.4 million at March 31, 2023 and December 31, 2022, respectively, were pledged to secure public funds deposits and other contractual obligations. There were no pledged securities to secure credit derivatives and interest rate swaps at March 31, 2023 or December 31, 2022. See Note 11, "Derivative Instruments and Hedging Activities" for additional information.

The following table presents information related to sales of securities available-for-sale during the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31,
(Dollars in thousands)	2023		2022
Securities available-for-sale:
Proceeds from sales	$	—	$	1,530
Gross realized gains on sales	—		30
Tax expense related to net realized gains on sales	—		6

At March 31, 2023 and December 31, 2022, there were no reportable investments in any single issuer representing more than 10% of shareholders’ equity.

10

The following table shows the fair value of securities that were in an unrealized loss position for which an allowance for credit losses has not been recorded at March 31, 2023 and December 31, 2022, by the length of time those securities were in a continuous loss position.

	Less than Twelve Months				Twelve Months or Longer				Total
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
At March 31, 2023
Securities Held-to-Maturity
Residential mortgage-backed securities	$	22,966	$	(862)	$	110,181	$	(17,338)	$	133,147	$	(18,200)
Total	$	22,966	$	(862)	$	110,181	$	(17,338)	$	133,147	$	(18,200)
Securities Available-for-Sale
State and political subdivisions	$	—	$	—	$	1,267	$	(31)	$	1,267	$	(31)
Residential mortgage-backed securities	84,540		(4,885)		190,747		(32,466)		275,287		(37,351)
Collateralized mortgage obligations	—		—		2,271		(233)		2,271		(233)
Total	$	84,540	$	(4,885)	$	194,285	$	(32,730)	$	278,825	$	(37,615)
At December 31, 2022
Securities Held-to-Maturity
Residential mortgage-backed securities	$	65,044	$	(5,894)	$	69,024	$	(14,765)	$	134,068	$	(20,659)
Total	$	65,044	$	(5,894)	$	69,024	$	(14,765)	$	134,068	$	(20,659)
Securities Available-for-Sale
State and political subdivisions	$	1,255	$	(42)	$	—	$	—	$	1,255	$	(42)
Residential mortgage-backed securities	128,831		(13,843)		133,902		(28,300)		262,733		(42,143)
Collateralized mortgage obligations	302		(22)		2,020		(237)		2,322		(259)
Corporate bonds	500		(1)		—		—		500		(1)
Total	$	130,888	$	(13,908)	$	135,922	$	(28,537)	$	266,810	$	(42,445)

At March 31, 2023, the fair value of held-to-maturity securities in an unrealized loss position for which an allowance for credit losses has not been recorded was $133.1 million, including unrealized losses of $18.2 million. These holdings were comprised of 84 federal agency mortgage-backed securities, which are U.S. government entities and agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The Corporation did not recognize any credit losses on held-to-maturity debt securities for the three months ended March 31, 2023.

At March 31, 2023, the fair value of available-for-sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded was $278.8 million, including unrealized losses of $37.6 million. These holdings were comprised of (1) 109 federal agency mortgage-backed securities, which are U.S. government entities and agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses, (2) two collateralized mortgage obligation bonds, (3) one state and political subdivisions bond and (4) one investment grade corporate bond. The Corporation does not intend to sell the securities in an unrealized loss position and is unlikely to be required to sell these securities before a recovery of fair value, which may be maturity. The Corporation concluded that the decline in fair value of these securities was not indicative of a credit loss. Accrued interest receivable on available-for-sale debt securities totaled $1.2 million at March 31, 2023 and is included within Accrued interest receivable and other assets on the condensed consolidated balance sheet. This amount is excluded from the estimate of expected credit losses.

11

The table below presents a rollforward by major security type for the three months ended March 31, 2023 and March 31, 2022 of the allowance for credit losses on securities available-for-sale.

(Dollars in thousands)	Corporate Bonds
Three months ended March 31, 2023
Securities Available-for-Sale
Beginning balance	$	(1,140)
Change in securities for which a previous expected credit loss was recognized	(292)
Ending balance	$	(1,432)
Three months ended March 31, 2022
Securities Available-for-Sale
Beginning balance	$	(929)
Additions for securities for which no previous expected credit losses were recognized	(45)
Change in securities for which a previous expected credit loss was recognized	(301)
Ending balance	$	(1,275)

At March 31, 2023, the fair value of available-for-sale securities in an unrealized loss position for which an allowance for credit losses has been recorded was $81.3 million, including unrealized losses of $8.9 million, and allowance for credit losses of $1.4 million. These holdings were comprised of 39 investment grade corporate bonds which fluctuate in value based on changes in market conditions. For these securities, fluctuations were primarily due to changes in the interest rate environment. The Corporation does not have the intent to sell these securities and it is not likely that it will be required to sell the securities before their anticipated recovery. The underlying issuers continue to make timely principal and interest payments on the securities.

The Corporation recognized a $69 thousand net loss and a $1 thousand net gain on equity securities during the three months ended March 31, 2023 and 2022, respectively, in other noninterest income. There were no sales of equity securities during the three months ended March 31, 2023 or 2022.

Note 4. Loans and Leases

Summary of Major Loan and Lease Categories

(Dollars in thousands)	At March 31, 2023		At December 31, 2022
Commercial, financial and agricultural	$	1,032,753	$	1,088,928
Real estate-commercial	3,128,210		3,027,955
Real estate-construction	376,569		381,811
Real estate-residential secured for business purpose	498,505		478,254
Real estate-residential secured for personal purpose	779,557		730,395
Real estate-home equity secured for personal purpose	172,073		176,699
Loans to individuals	28,656		27,873
Lease financings	223,481		211,315
Total loans and leases held for investment, net of deferred income	$	6,239,804	$	6,123,230
Less: Allowance for credit losses, loans and leases	(80,034)		(79,004)
Net loans and leases held for investment	$	6,159,770	$	6,044,226
Imputed interest on lease financings, included in the above table	$	(24,386)	$	(21,932)
Net deferred costs, included in the above table	6,633		6,053
Overdraft deposits included in the above table	154		93

12

Age Analysis of Past Due Loans and Leases

The following presents, by class of loans and leases held for investment, an aging of past due loans and leases, loans and leases which are current and nonaccrual loans and leases at March 31, 2023 and December 31, 2022:

	Accruing Loans and Leases
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases Held for Investment
At March 31, 2023
Commercial, financial and agricultural	$	1,348	$	—	$	—	$	1,348	$	1,027,982	$	1,029,330	$	3,423	$	1,032,753
Real estate—commercial real estate and construction:
Commercial real estate	328		—		1,195		1,523		3,122,399		3,123,922		4,288		3,128,210
Construction	—		—		—		—		376,186		376,186		383		376,569
Real estate—residential and home equity:
Residential secured for business purpose	308		768		—		1,076		496,670		497,746		759		498,505
Residential secured for personal purpose	1,506		—		—		1,506		776,551		778,057		1,500		779,557
Home equity secured for personal purpose	835		74		—		909		170,216		171,125		948		172,073
Loans to individuals	20		4		47		71		28,585		28,656		—		28,656
Lease financings	1,207		371		754		2,332		221,088		223,420		61		223,481
Total	$	5,552	$	1,217	$	1,996	$	8,765	$	6,219,677	$	6,228,442	$	11,362	$	6,239,804

	Accruing Loans and Leases
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases Held for Investment
At December 31, 2022
Commercial, financial and agricultural	$	1,616	$	343	$	—	$	1,959	$	1,081,897	$	1,083,856	$	5,072	$	1,088,928
Real estate—commercial real estate and construction:
Commercial real estate	3,281		290		20		3,591		3,019,827		3,023,418		4,537		3,027,955
Construction	315		—		—		315		381,496		381,811		—		381,811
Real estate—residential and home equity:
Residential secured for business purpose	375		203		263		841		476,400		477,241		1,013		478,254
Residential secured for personal purpose	4,127		162		319		4,608		723,798		728,406		1,989		730,395
Home equity secured for personal purpose	953		225		—		1,178		174,781		175,959		740		176,699
Loans to individuals	32		153		39		224		27,649		27,873		—		27,873
Lease financings	3,555		341		234		4,130		207,183		211,313		2		211,315
Total	$	14,254	$	1,717	$	875	$	16,846	$	6,093,031	$	6,109,877	$	13,353	$	6,123,230

13

Nonperforming Loans and Leases

The following presents, by class of loans and leases, nonperforming loans and leases at March 31, 2023 and December 31, 2022.

	At March 31, 2023						At December 31, 2022
(Dollars in thousands)	Nonaccrual Loans and Leases		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Nonperforming Loans and Leases		Nonaccrual Loans and Leases		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Nonperforming Loans and Leases
Commercial, financial and agricultural	$	3,423	$	—	$	3,423	$	5,072	$	—	$	5,072
Real estate—commercial real estate and construction:
Commercial real estate	4,288		1,195		5,483		4,537		20		4,557
Construction	383		—		383		—		—		—
Real estate—residential and home equity:
Residential secured for business purpose	759		—		759		1,013		263		1,276
Residential secured for personal purpose	1,500		—		1,500		1,989		319		2,308
Home equity secured for personal purpose	948		—		948		740		—		740
Loans to individuals	—		47		47		—		39		39
Lease financings	61		754		815		2		234		236
Total	$	11,362	$	1,996	$	13,358	$	13,353	$	875	$	14,228

The following table presents the amortized cost basis of loans and leases held for investment on nonaccrual status and loans and leases held for investment 90 days or more past due and still accruing as of March 31, 2023 and December 31, 2022.

(Dollars in thousands)	Nonaccrual With No ACL		Nonaccrual With ACL		Total Nonaccrual		Loans and Leases 90 Days or more Past Due and Accruing Interest
At March 31, 2023
Commercial, financial and agricultural	$	159	$	3,264	$	3,423	$	—
Real estate-commercial	4,288		—		4,288		1,195
Real estate-construction	383		—		383		—
Real estate-residential secured for business purpose	759		—		759		—
Real estate-residential secured for personal purpose	1,500		—		1,500		—
Real estate-home equity secured for personal purpose	948		—		948		—
Loans to individuals	—		—		—		47
Lease financings	—		61		61		754
Total	$	8,037	$	3,325	$	11,362	$	1,996
At December 31, 2022
Commercial, financial and agricultural	$	225	$	4,847	$	5,072	$	—
Real estate-commercial	4,537		—		4,537		20
Real estate-residential secured for business purpose	1,013		—		1,013		263
Real estate-residential secured for personal purpose	1,989		—		1,989		319
Real estate-home equity secured for personal purpose	740		—		740		—
Loans to individuals	—		—		—		39
Lease financings	—		2		2		234
Total	$	8,504	$	4,849	$	13,353	$	875

For the three months ended March 31, 2023, $6 thousand of interest income was recognized on nonaccrual loans and leases.

14

The following table presents, by class of loans and leases, the amortized cost basis of collateral-dependent nonaccrual loans and leases and type of collateral as of March 31, 2023 and December 31, 2022.

(Dollars in thousands)	Real Estate		Other (1)		None (2)		Total
At March 31, 2023
Commercial, financial and agricultural	$	3,423	$	—	$	—	$	3,423
Real estate-commercial	4,288		—		—		4,288
Real estate-construction	383		—		—		383
Real estate-residential secured for business purpose	759		—		—		759
Real estate-residential secured for personal purpose	1,500		—		—		1,500
Real estate-home equity secured for personal purpose	948		—		—		948
Lease financings	—		61		—		61
Total	$	11,301	$	61	$	—	$	11,362
(Dollars in thousands)	Real Estate		Other (1)		None (2)		Total
At December 31, 2022
Commercial, financial and agricultural	$	2,743	$	—	$	2,329	$	5,072
Real estate-commercial	4,537		—		—		4,537
Real estate-residential secured for business purpose	1,013		—		—		1,013
Real estate-residential secured for personal purpose	1,989		—		—		1,989
Real estate-home equity secured for personal purpose	740		—		—		740
Lease financings	—		2		—		2
Total	$	11,022	$	2	$	2,329	$	13,353

(1) Collateral consists of business assets, including accounts receivable, personal property and equipment.

(2) Loans fully guaranteed by the SBA or fully reserved given lack of collateral.

Credit Quality Indicators

The Corporation categorizes risk based on relevant information about the ability of the borrower to service their debt. Loans with a relationship balance of less than $1 million are reviewed when necessary based on their performance, primarily when such loans are delinquent. Loans with relationships greater than $1 million are reviewed at least annually. Loan relationships with a higher risk profile or classified as special mention or substandard are reviewed at least quarterly. The Corporation reviews credit quality key risk indicators on at least an annual basis and last completed this review in conjunction with the period ended December 31, 2022. The following is a description of the internal risk ratings and the likelihood of loss related to the credit quality of commercial, financial and agricultural loans, real estate-commercial loans, real estate-construction loans and real estate-residential secured for a business purpose loans.

1.Pass—Loans considered satisfactory with no indications of deterioration

2.Special Mention—Potential weakness that deserves management's close attention

3.Substandard—Well-defined weakness or weaknesses that jeopardize the liquidation of the debt

4.Doubtful—Collection or liquidation in-full, on the basis of current existing facts, conditions and values, highly questionable and improbable

15

Based on the most recent analysis performed, the following table presents the recorded investment in loans and leases held for investment for commercial, financial and agricultural loans, real estate-commercial loans, real estate-construction loans and real estate-residential secured for a business purpose loans by credit quality indicator at March 31, 2023 and December 31, 2022.

	Term Loans Amortized Cost Basis by Origination Year
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
At March 31, 2023
Commercial, Financial and Agricultural
Risk Rating
1. Pass	$	27,521	$	194,140	$	145,736	$	36,286	$	25,788	$	67,231	$	469,953	$	729	$	967,384
2. Special Mention	—		3,926		21,196		2,362		7,098		—		27,337		—		61,919
3. Substandard	—		—		108		—		589		—		2,753		—		3,450
Total	$	27,521	$	198,066	$	167,040	$	38,648	$	33,475	$	67,231	$	500,043	$	729	$	1,032,753
Current period gross charge-offs	$	—	$	—	$	247	$	23	$	—	$	—	$	2,578	$	—	$	2,848
Real Estate-Commercial
Risk Rating
1. Pass	$	117,401	$	880,556	$	682,078	$	703,079	$	360,218	$	304,672	$	52,553	$	—	$	3,100,557
2. Special Mention	—		854		10,250		5,725		—		2,816		1,771		—		21,416
3. Substandard	—		—		1,949		1,701		—		2,587		—		—		6,237
Total	$	117,401	$	881,410	$	694,277	$	710,505	$	360,218	$	310,075	$	54,324	$	—	$	3,128,210
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	50	$	—	$	—	$	50
Real Estate-Construction
Risk Rating
1. Pass	$	36,683	$	261,911	$	27,799	$	3,949	$	255	$	2,761	$	26,178	$	—	$	359,536
2. Special Mention	—		5,352		—		—		—		—		5,472		—		10,824
3. Substandard	—		380		—		—		5,829		—		—		—		6,209
Total	$	36,683	$	267,643	$	27,799	$	3,949	$	6,084	$	2,761	$	31,650	$	—	$	376,569
Current period gross charge-offs	$	—	$	—	$	—	$	207	$	—	$	—	$	—	$	—	$	207
Real Estate-Residential Secured for Business Purpose
Risk Rating
1. Pass	$	30,786	$	162,069	$	131,702	$	65,443	$	40,142	$	38,726	$	27,696	$	—	$	496,564
2. Special Mention	—		—		—		245		—		934		—		—		1,179
3. Substandard	—		—		211		26		—		488		37		—		762
Total	$	30,786	$	162,069	$	131,913	$	65,714	$	40,142	$	40,148	$	27,733	$	—	$	498,505
Totals By Risk Rating
1. Pass	$	212,391	$	1,498,676	$	987,315	$	808,757	$	426,403	$	413,390	$	576,380	$	729	$	4,924,041
2. Special Mention	—		10,132		31,446		8,332		7,098		3,750		34,580		—		95,338
3. Substandard	—		380		2,268		1,727		6,418		3,075		2,790		—		16,658
Total	$	212,391	$	1,509,188	$	1,021,029	$	818,816	$	439,919	$	420,215	$	613,750	$	729	$	5,036,037
Total current period gross charge-offs	$	—	$	—	$	247	$	230	$	—	$	50	$	2,578	$	—	$	3,105

16

	Term Loans Amortized Cost Basis by Origination Year
(Dollars in thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
At December 31, 2022
Commercial, Financial and Agricultural
Risk Rating
1. Pass	$	233,064	$	148,033	$	41,091	$	28,269	$	28,209	$	48,631	$	487,818	$	125	$	1,015,240
2. Special Mention	2,732		28,220		9,623		8,104		26		—		19,829		—		68,534
3. Substandard	—		13		—		—		—		—		5,141		—		5,154
Total	$	235,796	$	176,266	$	50,714	$	36,373	$	28,235	$	48,631	$	512,788	$	125	$	1,088,928
Real Estate-Commercial
Risk Rating
1. Pass	$	877,703	$	680,432	$	724,941	$	332,702	$	118,034	$	208,974	$	54,139	$	—	$	2,996,925
2. Special Mention	869		8,173		11,582		944		85		3,002		1,838		—		26,493
3. Substandard	—		—		1,770		—		2,222		495		50		—		4,537
Total	$	878,572	$	688,605	$	738,293	$	333,646	$	120,341	$	212,471	$	56,027	$	—	$	3,027,955
Real Estate-Construction
Risk Rating
1. Pass	$	243,983	$	52,485	$	8,341	$	34,670	$	191	$	442	$	30,223	$	—	$	370,335
2. Special Mention	—		5,781		—		5,695		—		—		—		—		11,476
3. Substandard	—		—		—		—		—		—		—		—		—
Total	$	243,983	$	58,266	$	8,341	$	40,365	$	191	$	442	$	30,223	$	—	$	381,811
Real Estate-Residential Secured for Business Purpose
Risk Rating
1. Pass	$	165,844	$	128,669	$	67,955	$	39,794	$	21,226	$	23,324	$	29,239	$	—	$	476,051
2. Special Mention	—		—		247		—		—		941		—		—		1,188
3. Substandard	—		211		27		—		38		594		145		—		1,015
Total	$	165,844	$	128,880	$	68,229	$	39,794	$	21,264	$	24,859	$	29,384	$	—	$	478,254
Totals By Risk Rating
1. Pass	$	1,520,594	$	1,009,619	$	842,328	$	435,435	$	167,660	$	281,371	$	601,419	$	125	$	4,858,551
2. Special Mention	3,601		42,174		21,452		14,743		111		3,943		21,667		—		107,691
3. Substandard	—		224		1,797		—		2,260		1,089		5,336		—		10,706
Total	$	1,524,195	$	1,052,017	$	865,577	$	450,178	$	170,031	$	286,403	$	628,422	$	125	$	4,976,948

The Corporation had no loans with a risk rating of Doubtful included within recorded investment in loans and leases held for investment at March 31, 2023 or December 31, 2022.

The Corporation monitors the credit risk profile by payment activity for the following classifications of loans and leases: real estate-residential secured for personal purpose loans, real estate-home equity secured for personal purpose loans, loans to individuals and lease financings. The Corporation reviews credit quality indicators on at least an annual basis and last completed this review in conjunction with the period ended December 31, 2022. Loans and leases past due 90 days or more and loans and leases on nonaccrual status are considered nonperforming. Nonperforming loans and leases are reviewed monthly. Performing loans and leases are reviewed only if the loan becomes 60 days or more past due.

17

Based on the most recent analysis performed, the following table presents the recorded investment in loans and leases held for investment for real estate-residential secured for personal purpose loans, real estate-home equity secured for personal purpose loans, loans to individuals and lease financings by credit quality indicator at March 31, 2023 and December 31, 2022.

	Term Loans Amortized Cost Basis by Origination Year
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
At March 31, 2023
Real Estate-Residential Secured for Personal Purpose
Payment Performance
1. Performing	$	45,329	$	265,019	$	213,723	$	138,347	$	23,519	$	92,037	$	83	$	778,057
2. Nonperforming	—		158		47		—		309		986		—		1,500
Total	$	45,329	$	265,177	$	213,770	$	138,347	$	23,828	$	93,023	$	83	$	779,557
Real Estate-Home Equity Secured for Personal Purpose
Payment Performance
1. Performing	$	219	$	2,761	$	614	$	467	$	186	$	1,743	$	165,135	$	171,125
2. Nonperforming	—		—		—		—		—		45		903		948
Total	$	219	$	2,761	$	614	$	467	$	186	$	1,788	$	166,038	$	172,073
Loans to Individuals
Payment Performance
1. Performing	$	502	$	1,317	$	763	$	494	$	197	$	1,359	$	23,977	$	28,609
2. Nonperforming	—		—		—		—		—		47		—		47
Total	$	502	$	1,317	$	763	$	494	$	197	$	1,406	$	23,977	$	28,656
Current period gross charge-offs	$	38	$	19	$	—	$	5	$	—	$	—	$	43	$	105
Lease Financings
Payment Performance
1. Performing	$	31,451	$	88,155	$	56,656	$	29,682	$	12,776	$	3,946	$	—	$	222,666
2. Nonperforming	—		654		111		18		4		28		—		815
Total	$	31,451	$	88,809	$	56,767	$	29,700	$	12,780	$	3,974	$	—	$	223,481
Current period gross charge-offs	$	—	$	—	$	—	$	20	$	—	$	—	$	—	$	20
Totals by Payment Performance
1. Performing	$	77,501	$	357,252	$	271,756	$	168,990	$	36,678	$	99,085	$	189,195	$	1,200,457
2. Nonperforming	—		812		158		18		313		1,106		903		3,310
Total	$	77,501	$	358,064	$	271,914	$	169,008	$	36,991	$	100,191	$	190,098	$	1,203,767
Total current period gross charge-offs	$	38	$	19	$	—	$	25	$	—	$	—	$	43	$	125

18

	Term Loans Amortized Cost Basis by Origination Year
(Dollars in thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
At December 31, 2022
Real Estate-Residential Secured for Personal Purpose
Payment Performance
1. Performing	$	258,293	$	211,638	$	140,822	$	23,827	$	18,273	$	75,126	$	108	$	728,087
2. Nonperforming	—		48		466		319		306		1,169		—		2,308
Total	$	258,293	$	211,686	$	141,288	$	24,146	$	18,579	$	76,295	$	108	$	730,395
Real Estate-Home Equity Secured for Personal Purpose
Payment Performance
1. Performing	$	2,945	$	642	$	491	$	192	$	205	$	1,565	$	169,870	$	175,910
2. Nonperforming	—		—		—		—		157		3		629		789
Total	$	2,945	$	642	$	491	$	192	$	362	$	1,568	$	170,499	$	176,699
Loans to Individuals
Payment Performance
1. Performing	$	1,581	$	857	$	554	$	247	$	138	$	1,340	$	23,117	$	27,834
2. Nonperforming	—		—		—		—		—		39		—		39
Total	$	1,581	$	857	$	554	$	247	$	138	$	1,379	$	23,117	$	27,873
Lease Financings
Payment Performance
1. Performing	$	94,430	$	61,680	$	33,468	$	15,164	$	5,569	$	768	$	—	$	211,079
2. Nonperforming	41		56		17		21		90		11		—		236
Total	$	94,471	$	61,736	$	33,485	$	15,185	$	5,659	$	779	$	—	$	211,315
Totals by Payment Performance
1. Performing	$	357,249	$	274,817	$	175,335	$	39,430	$	24,185	$	78,799	$	193,095	$	1,142,910
2. Nonperforming	41		104		483		340		553		1,222		629		3,372
Total	$	357,290	$	274,921	$	175,818	$	39,770	$	24,738	$	80,021	$	193,724	$	1,146,282

The Corporation had no revolving loans which were converted to term loans included within recorded investment in loans and leases held for investment at March 31, 2023 or December 31, 2022.

19

Allowance for Credit Losses on Loans and Leases and Recorded Investment in Loans and Leases

The following presents, by portfolio segment, a summary of the activity in the allowance for credit losses, loans and leases, for the three months ended March 31, 2023 and 2022. There were no changes to the reasonable and supportable forecast period, the reversion period, or any significant methodology changes during the three months ended March 31, 2023.

(Dollars in thousands)	Beginning balance		Provision (reversal of provision) for credit losses		Charge-offs		Recoveries		Ending balance
Three Months Ended March 31, 2023
Allowance for credit losses, loans and leases:
Commercial, financial and agricultural	$	16,920	$	547	$	(2,848)	$	106	$	14,725
Real estate-commercial	41,673		1,524		(50)		3		43,150
Real estate-construction	4,952		(64)		(207)		—		4,681
Real estate-residential secured for business purpose	7,054		1,125		—		181		8,360
Real estate-residential secured for personal purpose	3,685		1,327		—		—		5,012
Real estate-home equity secured for personal purpose	1,287		(66)		—		50		1,271
Loans to individuals	351		113		(105)		16		375
Lease financings	3,082		(634)		(20)		32		2,460
Unallocated	—		—		N/A		N/A		—
Total	$	79,004	$	3,872	$	(3,230)	$	388	$	80,034
Three Months Ended March 31, 2022
Allowance for credit losses, loans and leases:
Commercial, financial and agricultural	$	13,538	$	(1,672)	$	(214)	$	189	$	11,841
Real estate-commercial	41,095		(669)		—		—		40,426
Real estate-construction	4,575		(941)		—		—		3,634
Real estate-residential secured for business purpose	6,482		(328)		—		48		6,202
Real estate-residential secured for personal purpose	2,403		189		—		—		2,592
Real estate-home equity secured for personal purpose	1,028		(53)		—		1		976
Loans to individuals	363		57		(75)		24		369
Lease financings	2,290		5		(59)		10		2,246
Unallocated	150		(150)		N/A		N/A		—
Total	$	71,924	$	(3,562)	$	(348)	$	272	$	68,286

N/A – Not applicable

20

The following presents, by portfolio segment, the balance in the ACL on loans and leases disaggregated on the basis of whether the loan or lease was measured for credit loss as a pooled loan or lease or if it was individually analyzed for a reserve at March 31, 2023 and 2022:

	Allowance for credit losses, loans and leases						Loans and leases held for investment
(Dollars in thousands)	Ending balance: individually analyzed		Ending balance: pooled		Total ending balance		Ending balance: individually analyzed		Ending balance: pooled		Loans measured at fair value		Total ending balance
At March 31, 2023
Commercial, financial and agricultural	$	912	$	13,813	$	14,725	$	3,423	$	1,029,330	$	—	$	1,032,753
Real estate-commercial	—		43,150		43,150		4,288		3,123,922		—		3,128,210
Real estate-construction	—		4,681		4,681		383		376,186		—		376,569
Real estate-residential secured for business purpose	—		8,360		8,360		759		497,746		—		498,505
Real estate-residential secured for personal purpose	—		5,012		5,012		1,500		778,057		—		779,557
Real estate-home equity secured for personal purpose	—		1,271		1,271		948		171,125		—		172,073
Loans to individuals	—		375		375		—		28,656		—		28,656
Lease financings	—		2,460		2,460		—		223,481		—		223,481
Total	$	912	$	79,122	$	80,034	$	11,301	$	6,228,503	$	—	$	6,239,804
At March 31, 2022
Commercial, financial and agricultural	$	—	$	11,841	$	11,841	$	448	$	942,335	$	—	$	942,783
Real estate-commercial	954		39,472		40,426		26,411		2,790,313		13		2,816,737
Real estate-construction	—		3,634		3,634		—		285,083		—		285,083
Real estate-residential secured for business purpose	—		6,202		6,202		1,120		411,366		—		412,486
Real estate-residential secured for personal purpose	—		2,592		2,592		2,259		566,476		—		568,735
Real estate-home equity secured for personal purpose	—		976		976		489		159,645		—		160,134
Loans to individuals	—		369		369		—		26,249		—		26,249
Lease financings	—		2,246		2,246		—		188,579		—		188,579
Total	$	954	$	67,332	$	68,286	$	30,727	$	5,370,046	$	13	$	5,400,786

N/A – Not applicable

Modified Loans to Borrowers Experiencing Financial Difficulty

The following presents, by class of loans, information regarding accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three months ended March 31, 2023.

	Three Months Ended March 31, 2023
(Dollars in thousands)	Number of Loans	Amortized Cost Basis*		% of Total Class of Financing Receivable		Related Reserve
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty:
Real estate—construction	1	$	5,829	1.2	%	$	16
Total	1	$	5,829			$	16
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty:
Commercial, financial and agricultural	1	$	2,620	0.3	%	$	538
Total	1	$	2,620			$	538

*Amortized cost excludes $26 thousand of accrued interest receivable on modified loans.

21

The following presents, by class of loans, information regarding the financial effect on accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three months ended March 31, 2023.

	Term Extension
(Dollars in thousands)	No. of Loans	Financial Effect
Three Months Ended March 31, 2023
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty:
Real estate—construction	1	Extended the loan maturity by 8 months to allow time for the construction to be completed. 3 months of interest payments were capitalized to the loan balance.
Total	1
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty:
Commercial, financial and agricultural	1	Extended the loan maturity by 10 months in order to provide time to borrower to liquidate collateral for loan payoff.
Total	1

There were no accruing or nonaccrual modified loans to borrowers experiencing financial difficulty for which there were payment defaults after the modification date for the three months ended March 31, 2023.

The following presents, by class of loans, the amortized cost and payment status of accruing and nonaccrual modified loans to borrowers experiencing financial difficulty at March 31, 2023.

	At March 31, 2023
(Dollars in thousands)	Current		30-89 Days Past Due		90 Days or More Past Due		Total
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty:
Real estate—construction	$	5,829	$	—	$	—	$	5,829
Total	$	5,829	$	—	$	—	$	5,829
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty:
Commercial, financial and agricultural	$	2,620	$	—	$	—	$	2,620
Total	$	2,620	$	—	$	—	$	2,620

The following presents the amount of consumer mortgages collateralized by residential real estate property that were in the process of foreclosure at March 31, 2023 or December 31, 2022.

(Dollars in thousands)	At March 31, 2023		At December 31, 2022
Real estate-residential secured for personal purpose	$	2,812	$	822
Real estate-home equity secured for personal purpose	71		72
Total	$	2,883	$	894

There was no foreclosed residential real estate property included in other real estate owned at March 31, 2023 or December 31, 2022.

22

Lease Financings

The following presents the schedule of minimum lease payments receivable:

(Dollars in thousands)	At March 31, 2023		At December 31, 2022
2023 (excluding the three months ended March 31, 2023)	$	74,280	$	75,900
2024	66,701		61,793
2025	49,414		45,738
2026	33,086		29,902
2027	14,603		13,091
Thereafter	5,421		2,552
Total future minimum lease payments receivable	243,505		228,976
Plus: Unguaranteed residual	1,212		1,387
Plus: Initial direct costs	3,150		2,884
Less: Imputed interest	(24,386)		(21,932)
Lease financings	$	223,481	$	211,315

Note 5. Goodwill and Other Intangible Assets

The Corporation has goodwill from acquisitions which is deemed to be an indefinite intangible asset and is not amortized. Changes in the carrying amount of the Corporation's goodwill by business segment for the three months ended March 31, 2023 were as follows:

(Dollars in thousands)	Banking		Wealth Management		Insurance		Consolidated
Balance at December 31, 2022	$	138,476	$	15,434	$	21,600	$	175,510
Addition to goodwill from acquisitions	—		—		—		—
Balance at March 31, 2023	$	138,476	$	15,434	$	21,600	$	175,510

The Corporation also has core deposit and customer-related intangibles, which are not deemed to have an indefinite life and therefore will continue to be amortized over their useful life using the present value of projected cash flows. The following table reflects the components of intangible assets at the dates indicated:

	At March 31, 2023						At December 31, 2022
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization (1)		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization (1)		Net Carrying Amount
Amortized intangible assets:
Core deposit intangibles	$	6,788	$	6,048	$	740	$	6,788	$	5,939	$	849
Customer related intangibles	4,162		2,318		1,844		8,493		6,530		1,963
Servicing rights	29,181		20,721		8,460		28,904		20,332		8,572
Total amortized intangible assets	$	40,131	$	29,087	$	11,044	$	44,185	$	32,801	$	11,384

(1) Included within accumulated amortization is a valuation allowance of $40 thousand and $5 thousand on servicing rights at March 31, 2023 and December 31, 2022, respectively.

23

The estimated aggregate amortization expense for core deposit and customer-related intangibles for the remainder of 2023 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2023		$	616
2024		648
2025		469
2026		319
2027		216
Thereafter		316
Total		$	2,584

The aggregate fair value of servicing rights was $16.8 million at March 31, 2023 and December 31, 2022. The fair value of these rights was determined using a discount rate ranging from 10.4% to 12.4% at March 31, 2023 and 10.1% to 12.0% at December 31, 2022.

Changes in the servicing rights balance are summarized as follows:

	Three Months Ended March 31,
(Dollars in thousands)	2023		2022
Beginning of period	$	8,572	$	7,878
Servicing rights capitalized	277		714
Amortization of servicing rights	(354)		(476)
Changes in valuation allowance	(35)		6
End of period	$	8,460	$	8,122
Loans serviced for others	$	1,496,319	$	1,440,562

Activity in the valuation allowance for servicing rights was as follows:

	Three Months Ended March 31,
(Dollars in thousands)	2023		2022
Valuation allowance, beginning of period	$	(5)	$	(13)
Additions	(35)		—
Reductions	—		6
Valuation allowance, end of period	$	(40)	$	(7)

The estimated amortization expense of servicing rights for the remainder of 2023 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2023		$	1,072
2024		958
2025		855
2026		761
2027		641
Thereafter		4,173
Total		$	8,460

24

Note 6. Deposits

Deposits and their respective weighted average interest rate at March 31, 2023 and December 31, 2022 consisted of the following:

	At March 31, 2023				At December 31, 2022
	Weighted Average Interest Rate		Amount		Weighted Average Interest Rate		Amount
	(Dollars in thousands)
Noninterest-bearing deposits	—	%	$	1,799,225	—	%	$	2,047,263
Demand deposits	2.56		2,433,575		2.02		2,321,748
Savings deposits	0.39		955,530		0.25		1,025,431
Time deposits	2.91		646,327		2.07		519,084
Total	1.45	%	$	5,834,657	1.02	%	$	5,913,526

Deposits are insured up to applicable limits by the Deposit Insurance Fund of the FDIC, which is currently up to $250 thousand per account owner. The aggregate amount of time deposits in denominations over $250 thousand was $121.7 million at March 31, 2023 and $95.0 million at December 31, 2022.

At March 31, 2023, the scheduled maturities of time deposits were as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2023		$	259,767
2024		196,555
2025		158,162
2026		14,600
2027		8,246
Thereafter		8,997
Total		$	646,327

Note 7. Borrowings

The following is a summary of borrowings by type. Short-term borrowings consist of overnight borrowings and term borrowings with an original maturity of one year or less.

	At March 31, 2023				At December 31, 2022
(Dollars in thousands)	Balance at End of Period		Weighted Average Interest Rate at End of Period		Balance at End of Period		Weighted Average Interest Rate at End of Period
Short-term borrowings:
FHLB borrowings	$	163,700	5.15	%	$	125,000	4.45	%
Federal funds purchased	90,000		5.26		60,000		4.63
Customer repurchase agreements	18,181		0.05		12,141		0.05
Long-term debt:
FHLB advances	$	220,000	3.52	%	$	95,000	1.34	%
Subordinated notes	148,385		6.08		148,260		6.09

The Corporation, through the Bank, has a credit facility with the Federal Home Loan Bank (the FHLB) with a maximum borrowing capacity of approximately $3.0 billion. All borrowings and letters of credit from the FHLB are secured by qualifying commercial real estate and residential mortgage loans, investments and other assets. At March 31, 2023 and December 31, 2022, the Bank had outstanding short-term letters of credit with the FHLB totaling $830.4 million and $690.5 million, respectively, which were utilized to collateralize public funds deposits and other secured deposits. The maximum borrowing capacity with the FHLB changes as a function of the Bank’s qualifying collateral assets as well as the FHLB’s internal credit rating of the Bank. The available borrowing capacity from the FHLB totaled $1.7 billion at March 31, 2023.    

The Corporation, through the Bank, holds collateral at the Federal Reserve Bank of Philadelphia to provide access to the Discount Window Lending program. The collateral, consisting of investment securities, was valued at $119.6 million and $98.1

25

million at March 31, 2023 and December 31, 2022, respectively. At March 31, 2023 and December 31, 2022, the Corporation had no outstanding borrowings under the Discount Window Lending program.

The Corporation has a $10.0 million committed line of credit with a correspondent bank. At March 31, 2023 and December 31, 2022, the Corporation had no outstanding borrowings under this line.

The Corporation and the Bank had $3.1 billion and $3.0 billion of committed borrowing capacity at March 31, 2023 and December 31, 2022, respectively, of which $1.9 billion and $2.1 billion was available as of March 31, 2023 and December 31, 2022, respectively. The Corporation, through the Bank, also maintained uncommitted funding sources from correspondent banks of $410.0 million at March 31, 2023 and December 31, 2022, of which $320.0 million and $350.0 million were unused as of March 31, 2023 and December 31, 2022, respectively. Future availability under these lines is subject to the prerogatives of the granting banks and may be withdrawn at will.

Long-term advances with the FHLB of Pittsburgh mature as follows:

(Dollars in thousands)	As of March 31, 2023		Weighted Average Rate
Remainder of 2023	$	10,000	3.02	%
2024	85,000		2.10
2025	50,000		4.59
2026	50,000		4.42
2027	—		—
Thereafter	25,000		4.61
Total	$	220,000	3.52	%

Note 8. Retirement Plans and Other Postretirement Benefits

Information with respect to the Retirement Plans and Other Postretirement Benefits follows: 

	Three Months Ended March 31,
	2023		2022		2023		2022
(Dollars in thousands)	Retirement Plans				Other Post Retirement Benefits
Service cost	$	130	$	137	$	19	$	30
Interest cost	597		390		32		24
Expected loss on plan assets	(770)		(933)		—		—
Amortization of net actuarial loss (gain)	250		204		(4)		14
Net periodic benefit cost (income)	$	207	$	(202)	$	47	$	68

The components of net periodic benefit cost, other than the service cost component, are included in other noninterest expense in the condensed consolidated statements of income.

The Corporation expects to make contributions of $156 thousand to the Retirement Plans and $130 thousand to Other Postretirement Benefit Plans in 2023. During the three months ended March 31, 2023, the Corporation contributed $39 thousand to its Non-Qualified Retirement Benefit Plans and $23 thousand to its Other Postretirement Benefit Plans. During the three months ended March 31, 2023, $713 thousand was paid to participants from the Retirement Plans and $23 thousand was paid to participants from the Other Postretirement Benefit Plans.

Note 9. Stock-Based Incentive Plan

The Corporation maintains the 2013 Long-Term Incentive Plan, which replaced the expired 2003 Long-Term Incentive Plan. In December 2018, the Corporation's Board of Directors approved an Amended and Restated Univest 2013 Long-Term Incentive Plan (the Plan) to permit the issuance of restricted stock units. On April 26, 2023, the 2023 Equity Incentive Plan was approved by shareholders at the Corporation's annual meeting.

26

The following is a summary of the Corporation's stock option activity and related information for the three months ended March 31, 2023:

(Dollars in thousands, except per share data)	Shares Under Option	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value at March 31, 2023
Outstanding at December 31, 2022	294,111	$	26.11
Exercised	(4,167)	17.89
Outstanding at March 31, 2023	289,944	26.23		3.9	$	302
Exercisable at March 31, 2023	289,944	26.23		3.9	302

The Corporation did not issue stock options during the three months ended March 31, 2023 or March 31, 2022.

The following is a summary of nonvested restricted stock units at March 31, 2023 including changes during the three months then ended:

(Dollars in thousands, except per share data)	Nonvested Stock Units	Weighted Average Grant Date Fair Value
Nonvested stock units at December 31, 2022	408,264	$	25.57
Granted	213,429	25.04
Added by performance factor	814	19.20
Vested	(174,798)	21.95
Forfeited	(6,114)	27.62
Nonvested stock units at March 31, 2023	441,595	$	26.71

Certain information regarding restricted stock units is summarized below for the periods indicated:

	Three Months Ended March 31,
(Dollars in thousands, except per share data)	2023		2022
Restricted stock units granted	213,429		164,319
Weighted average grant date fair value	$	25.04	$	28.36
Intrinsic value of units granted	$	5,345	$	4,660
Restricted stock units vested	174,798		118,834
Weighted average grant date fair value	$	21.95	$	23.29
Intrinsic value of units vested	$	4,385	$	3,377

The total unrecognized compensation expense and the weighted average period over which unrecognized compensation expense is expected to be recognized related to nonvested restricted stock units at March 31, 2023 is presented below:

(Dollars in thousands)	Unrecognized Compensation Cost		Weighted-Average Period Remaining (Years)
Restricted stock units	$	9,603	2.3

The following table presents information related to the Corporation’s compensation expense related to stock incentive plans recognized for the periods indicated:

	Three Months Ended March 31,
(Dollars in thousands)	2023		2022
Stock-based compensation expense:
Restricted stock units	$	1,110	$	934
Employee stock purchase plan	29		25
Total	$	1,139	$	959
Tax benefit on nonqualified stock option expense and disqualifying dispositions of incentive stock options	$	35	$	1

27

Note 10. Accumulated Other Comprehensive (Loss) Income

The following table shows the components of accumulated other comprehensive (loss) income, net of taxes, for the periods presented:

(Dollars in thousands)	Net Unrealized (Losses) Gains on Available-for-Sale Investment Securities		Net Change Related to Derivatives Used for Cash Flow Hedges		Net Change Related to Defined Benefit Pension Plans		Accumulated Other Comprehensive (Loss) Income
Balance, December 31, 2022	$	(40,066)	$	(6,831)	$	(15,207)	$	(62,104)
Other comprehensive income	4,491		1,869		194		6,554
Balance, March 31, 2023	$	(35,575)	$	(4,962)	$	(15,013)	$	(55,550)
Balance, December 31, 2021	$	(1,216)	$	(159)	$	(14,978)	$	(16,353)
Other comprehensive (loss) income	(15,842)		114		172		(15,556)
Balance, March 31, 2022	$	(17,058)	$	(45)	$	(14,806)	$	(31,909)

Note 11. Derivative Instruments and Hedging Activities

Interest Rate Swaps

The Corporation periodically uses interest rate swap agreements to modify interest rate characteristics from variable to fixed or fixed to variable in order to reduce the impact of interest rate changes on future net interest income. The Corporation’s credit exposure on interest rate swaps includes changes in fair value and any collateral that is held by a third party.

In May 2022, the Corporation entered into an interest rate swap classified as a cash flow hedge with a notional amount of $250.0 million to hedge the interest payments received on a pool of variable rate loans. Under the terms of the swap agreement, the Corporation pays a variable rate equal to the Prime Rate and receives a fixed rate of 5.99%. The swap matures in May 2026. The Corporation performed an assessment of the hedge for effectiveness at the inception of the hedge and performs an assessment on a recurring basis and determined that the derivative currently is and is expected to be highly effective in offsetting changes in cash flows of the hedged item. At March 31, 2023, approximately $3.6 million, net of tax, which is recorded in accumulated other comprehensive loss, is expected to be reclassified into earnings during the next twelve months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations and the addition of other hedges subsequent to March 31, 2023. At March 31, 2023, the notional amount of the interest rate swap was $250.0 million and the fair value was a liability of $6.3 million.

Credit Derivatives

The Corporation has agreements with third-party financial institutions whereby the third-party financial institution enters into interest rate derivative contracts with loan customers referred to them by the Corporation. By the terms of the agreements, the third-party financial institution has recourse to the Corporation for any exposure created under each swap contract in the event the customer defaults on the swap agreement and the agreement is in a paying position to the third-party financial institution. These transactions represent credit derivatives and are a customary arrangement that allows the Corporation to provide access to interest rate swap transactions for customers without issuing the swap.

At March 31, 2023, the Corporation had exposure to 124 variable-rate to fixed-rate interest rate swap transactions between the third-party financial institution and customers with a current notional amount of $792.8 million and remaining maturities ranging from 13 months to 11 years. At March 31, 2023, the fair value of the Corporation's interest rate swap credit derivatives was a liability of $330 thousand. At March 31, 2023, the fair value of the swaps to the customers was a net gain of $58.1 million. At March 31, 2023, the Corporation's credit exposure related to the customer totaled $1.7 million.

The maximum potential payments by the Corporation to the third-party financial institution under these credit derivatives are not estimable as they are contingent on future interest rates and the agreement does not provide for a limitation of the maximum potential payment amount.

Mortgage Banking Derivatives

Derivative loan commitments represent agreements for delayed delivery of financial instruments in which the buyer agrees to purchase and the seller agrees to deliver, at a specified future date, a specified instrument at a specified price or yield. The

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Corporation’s derivative loan commitments are commitments to sell loans secured by 1-to 4-family residential properties whose predominant risk characteristic is interest rate risk.

Derivatives Tables

The following table presents the notional amounts and fair values of derivatives designated as hedging instruments recorded on the condensed consolidated balance sheets at March 31, 2023 and December 31, 2022. The Corporation pledges cash or securities to cover the negative fair value of derivative instruments. Cash collateral associated with derivative instruments are not added to or netted against the fair value amounts.

			Derivative Assets			Derivative Liabilities
(Dollars in thousands)	Notional Amount		Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
At March 31, 2023
Interest rate swap - cash flow hedge	$	250,000		$	—	Other liabilities	$	6,282
Total	$	250,000		$	—		$	6,282
At December 31, 2022
Interest rate swap - cash flow hedge	$	250,000		$	—	Other liabilities	$	8,647
Total	$	250,000		$	—		$	8,647

The following table presents the notional amounts and fair values of derivatives not designated as hedging instruments recorded on the condensed consolidated balance sheets at March 31, 2023 and December 31, 2022:

			Derivative Assets			Derivative Liabilities
(Dollars in thousands)	Notional Amount		Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
At March 31, 2023
Credit derivatives	$	792,838		$	—	Other liabilities	$	330
Interest rate locks with customers	21,208		Other assets	265			—
Forward loan sale commitments	26,633			—		Other liabilities	6
Total	$	840,679		$	265		$	336
At December 31, 2022
Credit derivatives	$	815,469		$	—	Other liabilities	$	360
Interest rate locks with customers	10,269		Other assets	119			—
Forward loan sale commitments	15,306		Other assets	29			—
Total	$	841,044		$	148		$	360

The following table presents amounts included in the condensed consolidated statements of income for derivatives designated as hedging instruments for the periods indicated:

	Statement of Income Classification	Three Months Ended
		March 31,
(Dollars in thousands)		2023		2022
Interest rate swap—cash flow hedge—net interest payments	Interest expense	$	1,060	$	68
Total net loss		$	(1,060)	$	(68)

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The following table presents amounts included in the condensed consolidated statements of income for derivatives not designated as hedging instruments for the periods indicated:

	Statement of Income Classification	Three Months Ended
		March 31,
(Dollars in thousands)		2023		2022
Credit derivatives	Other noninterest income	$	86	$	450
Interest rate locks with customers	Net gain (loss) on mortgage banking activities	146		(1,010)
Forward loan sale commitments	Net (loss) gain on mortgage banking activities	(34)		719
Total net gain		$	198	$	159

The following table presents amounts included in accumulated other comprehensive (loss) income for derivatives designated as hedging instruments at March 31, 2023 and December 31, 2022:

(Dollars in thousands)	Accumulated Other Comprehensive (Loss) Income	At March 31, 2023		At December 31, 2022
Interest rate swap—cash flow hedge	Fair value, net of taxes	$	(4,962)	$	(6,831)
Total		$	(4,962)	$	(6,831)

Note 12. Fair Value Disclosures

Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The Corporation determines the fair value of financial instruments based on the fair value hierarchy. The Corporation maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Corporation. Unobservable inputs are inputs that reflect the Corporation’s assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances, including assumptions about risk. Three levels of inputs are used to measure fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement. Transfers between levels are recognized at the end of the reporting periods.

Level 1: Valuations are based on quoted prices in active markets for identical assets or liabilities that the Corporation can access at the measurement date. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment.

Level 2: Valuations are based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3: Valuations are based on inputs that are unobservable and significant to the overall fair value measurement. Assets and liabilities utilizing Level 3 inputs include: financial instruments whose value is determined using pricing models, discounted cash-flow methodologies, or similar techniques, as well as instruments for which the fair value calculation requires significant management judgment or estimation.

Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Investment Securities

Where quoted prices are available in an active market for identical instruments, investment securities are classified within Level 1 of the valuation hierarchy. Level 1 investment securities include U.S. Treasury securities, most equity securities and money market mutual funds. Mutual funds are registered investment companies which are valued at net asset value of shares on a market exchange at the end of each trading day. Level 2 of the valuation hierarchy includes securities issued by U.S. Government sponsored enterprises, mortgage-backed securities, collateralized mortgage obligations, corporate and municipal bonds and certain equity securities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. In cases where there is limited activity or less transparency around inputs to the valuation, investment securities are classified within Level 3 of the valuation hierarchy.

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Fair values for securities are determined using independent pricing services and market-participating brokers. The Corporation’s independent pricing service utilizes evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information for structured securities, cash flow and, when available, loan performance data. Because many fixed income securities do not trade on a daily basis, the pricing service’s evaluated pricing applications apply information as applicable through processes, such as benchmarking of like securities, sector groupings, and matrix pricing, to prepare evaluations. If at any time, the pricing service determines that it does not have sufficient verifiable information to value a particular security, the Corporation will utilize valuations from another pricing service. Management has a sufficient understanding of the third-party service’s valuation models, assumptions and inputs used in determining the fair value of securities to enable management to maintain an appropriate system of internal control.

On a quarterly basis, the Corporation reviews changes, as submitted by the pricing service, in the market value of its security portfolio. Individual changes in valuations are reviewed for consistency with general interest rate movements and any known credit concerns for specific securities. If, upon the Corporation’s review or in comparing with another service, a material difference between pricing evaluations were to exist, the Corporation may submit an inquiry to the current pricing service regarding the data used to determine the valuation of a particular security. If the Corporation determines there is market information that would support a different valuation than from the current pricing service’s evaluation, the Corporation may utilize and change the security's valuation. There were no material differences in valuations noted at March 31, 2023.

Loans Held for Sale

The fair value of our loans held for sale is based on estimates using Level 2 inputs. These inputs are based on pricing information obtained from wholesale mortgage banks and brokers and applied to loans with similar interest rates and maturities.

Derivative Financial Instruments

The fair values of derivative financial instruments are based upon the estimated amount the Corporation would receive or pay to terminate the contracts or agreements, taking into account current interest rates and, when appropriate, the current creditworthiness of the counterparties. Interest rate swaps and mortgage banking derivative financial instruments are classified within Level 2 of the valuation hierarchy. Credit derivatives are valued based on credit worthiness of the underlying borrower which is a significant unobservable input and therefore classified in Level 3 of the valuation hierarchy.

Contingent Consideration Liability

The Corporation estimates the fair value of the contingent consideration liability by using a discounted cash flow model of future contingent payments based on projected revenue related to the acquired business. The estimated fair value of the contingent consideration liability is reviewed on a quarterly basis and any valuation adjustments resulting from a change of estimated future contingent payments based on projected revenue of the acquired business affecting the contingent consideration liability will be recorded through noninterest expense. Due to the significant unobservable input related to the projected revenue, the contingent consideration liability is classified within Level 3 of the valuation hierarchy. An increase in the projected revenue may result in a higher fair value of the contingent consideration liability. Alternatively, a decrease in the projected revenue may result in a lower estimated fair value of the contingent consideration liability.

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The following table presents the assets and liabilities measured at fair value on a recurring basis at March 31, 2023 and December 31, 2022, classified using the fair value hierarchy:

	At March 31, 2023
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
State and political subdivisions	$	—	$	2,297	$	—	$	2,297
Residential mortgage-backed securities	—		280,794		—		280,794
Collateralized mortgage obligations	—		2,271		—		2,271
Corporate bonds	—		82,294		—		82,294
Total available-for-sale securities	—		367,656		—		367,656
Equity securities:
Equity securities - financial services industry	711		—		—		711
Money market mutual funds	2,394		—		—		2,394
Total equity securities	3,105		—		—		3,105
Loans held for sale	—		5,425		—		5,425
Interest rate locks with customers*	—		265		—		265
Total assets	$	3,105	$	373,346	$	—	$	376,451
Liabilities:
Contingent consideration liability	$	—	$	—	$	1,154	$	1,154
Interest rate swaps*	—		6,282		—		6,282
Credit derivatives*	—		—		330		330
Forward loan sale commitments*	—		6		—		6
Total liabilities	$	—	$	6,288	$	1,484	$	7,772

* Such financial instruments are recorded at fair value as further described in Note 11, "Derivative Instruments and Hedging Activities."

The $330 thousand of credit derivatives liability represented the Credit Valuation Adjustment (CVA), which is obtained from real-time financial market data, of 124 interest rate swaps with a notional amount of $792.8 million. The March 31, 2023 CVA assumed a zero-deal recovery percentage based on the most recent index credit curve.

The contingent consideration liability resulting from the Sheaffer 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.

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	At December 31, 2022
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ 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 industry	780		—		—		780
Money market mutual funds	1,799		—		—		1,799
Total equity securities	2,579		—		—		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 11, "Derivative Instruments and Hedging Activities."

The $360 thousand of credit derivatives liability represented the CVA, which is obtained from real-time financial market data, of 127 interest rate swaps with a notional amount of $815.5 million. The December 31, 2022 CVA assumed a zero-deal recovery percentage based on the most recent index credit curve.

The contingent consideration liability resulting from the Sheaffer 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.

The following table includes a roll forward of 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, 2023 and 2022:

	Three Months Ended March 31, 2023
(Dollars in thousands)	Balance at December 31, 2022		Additions		Payments received		Increase in value		Balance at March 31, 2023
Credit derivatives	(360)		(57)		—		87		(330)
Net total	$	(360)	$	(57)	$	—	$	87	$	(330)

	Three Months Ended March 31, 2022
(Dollars in thousands)	Balance at December 31, 2021		Additions		Payments received		Increase (decrease) in value		Balance at March 31, 2022
Loans	48		—		(35)		—		13
Credit derivatives	(381)		(526)		—		450		(457)
Net total	$	(333)	$	(526)	$	(35)	$	450	$	(444)

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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, 2023 and 2022:

	Three Months Ended March 31, 2023
(Dollars in thousands)	Balance at December 31, 2022		Payment of Contingent Consideration		Adjustment of Contingent Consideration		Balance at March 31, 2023
Paul I. Sheaffer Insurance Agency	$	1,765	$	635	$	24	$	1,154
Total contingent consideration liability	$	1,765	$	635	$	24	$	1,154

	Three Months Ended March 31, 2022
(Dollars in thousands)	Balance at December 31, 2021		Payment of Contingent Consideration		Adjustment of Contingent Consideration		Balance at March 31, 2022
Paul I. Sheaffer Insurance Agency	$	1,629	$	—	$	34	$	1,663
Total contingent consideration liability	$	1,629	$	—	$	34	$	1,663

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, 2023 and December 31, 2022:

	At March 31, 2023
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets at Fair Value
Individually analyzed loans held for investment	$	—	$	—	$	10,389	$	10,389
Other real estate owned	—		—		19,000		19,000
Total	$	—	$	—	$	29,389	$	29,389

	At December 31, 2022
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets 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

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The following table presents assets and liabilities not measured at fair value on a recurring or non-recurring basis in the Corporation’s condensed consolidated balance sheets but for which the fair value is required to be disclosed at March 31, 2023 and December 31, 2022. The disclosed fair values are classified using the fair value hierarchy.

	At March 31, 2023
(Dollars in thousands)	Level 1		Level 2		Level 3		Fair Value		Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	138,324	$	—	$	—	$	138,324	$	138,324
Held-to-maturity securities	—		133,147		—		133,147		151,347
Federal Home Loan Bank, Federal Reserve Bank and other stock	NA		NA		NA		NA		43,792
Net loans and leases held for investment	—		—		6,097,345		6,097,345		6,149,381
Servicing rights	—		—		16,827		16,827		8,460
Total assets	$	138,324	$	133,147	$	6,114,172	$	6,385,643	$	6,491,304
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	5,188,330	$	—	$	—	$	5,188,330	$	5,188,330
Time deposits	—		637,072		—		637,072		646,327
Total deposits	5,188,330		637,072		—		5,825,402		5,834,657
Short-term borrowings	—		271,881		—		271,881		271,881
Long-term debt	—		220,903		—		220,903		220,000
Subordinated notes	—		141,250		—		141,250		148,385
Total liabilities	$	5,188,330	$	1,271,106	$	—	$	6,459,436	$	6,474,923

	At December 31, 2022
(Dollars in thousands)	Level 1		Level 2		Level 3		Fair 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 stock	NA		NA		NA		NA		33,841
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 deposits	5,394,442		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

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The following valuation methods and assumptions were used by the Corporation in estimating the fair value for financial instruments measured at fair value on a non-recurring basis and financial instruments not measured at fair value on a recurring or non-recurring basis in the Corporation’s condensed consolidated balance sheets but for which the fair value is required to be disclosed:

Cash and short-term interest-earning assets: The carrying amounts reported in the balance sheet for cash and due from banks, interest-earning deposits with other banks and other short-term investments is their stated value. Cash and short-term interest-earning assets are classified within Level 1 in the fair value hierarchy.

Held-to-maturity securities: Fair values for the held-to-maturity investment securities are estimated by using pricing models or quoted prices of securities with similar characteristics and are classified in Level 2 in the fair value hierarchy.

Federal Home Loan Bank, Federal Reserve Bank and other stock: It is not practical to determine the fair values of Federal Home Loan Bank, Federal Reserve Bank and other stock, due to restrictions placed on their transferability.

Loans held for sale: Loans held for sale are carried at the lower of cost or estimated fair value. The fair value of the Corporation’s mortgage loans held for sale are generally determined using a pricing model based on current market information obtained from external sources, including interest rates, bids or indications provided by market participants on specific loans that are actively marketed for sale. These loans are primarily residential mortgage loans and are generally classified in Level 2 due to the observable pricing data.

Loans and leases held for investment: The fair values for loans and leases held for investment are estimated using discounted cash flow analyses, using a discount rate based on current interest rates at which similar loans with similar terms would be made to borrowers, adjusted as appropriate to consider credit, liquidity and marketability factors to arrive at a fair value that represents the Corporation's exit price at which these instruments would be sold or transferred. Loans and leases are classified within Level 3 in the fair value hierarchy since credit risk is not an observable input.

Individually analyzed loans and leases held for investment: For individually analyzed loans and leases, the Corporation uses a variety of techniques to measure fair value, such as using the current appraised value of the collateral, agreements of sale, discounting the contractual cash flows, and analyzing market data that the Corporation may adjust due to specific characteristics of the loan/lease or collateral. At March 31, 2023, individually analyzed loans held for investment had a carrying amount of $11.3 million with a valuation allowance of $912 thousand. At December 31, 2022, individually analyzed loans held for investment had a carrying amount of $13.4 million with a valuation allowance of $2.8 million. The Corporation had no individually analyzed leases at March 31, 2023 or December 31, 2022.

Servicing rights: The Corporation estimates the fair value of servicing rights using discounted cash flow models that calculate the present value of estimated future net servicing income. The model uses readily available prepayment speed assumptions for the interest rates of the portfolios serviced. Servicing rights are classified within Level 3 in the fair value hierarchy based upon management's assessment of the inputs. The Corporation reviews the servicing rights portfolio on a quarterly basis for impairment and the servicing rights are carried at the lower of amortized cost or estimated fair value. At March 31, 2023, servicing rights had a net carrying amount of $8.5 million, which included a valuation allowance of $40 thousand. At December 31, 2022, servicing rights had a net carrying amount of $8.6 million, which included a valuation allowance of $5 thousand.

Goodwill and other identifiable assets: Certain non-financial assets subject to measurement at fair value on a non-recurring basis include goodwill and other identifiable intangible assets. During the three months ended March 31, 2023, there were no required valuation adjustments of goodwill and other identifiable intangible assets.

Other real estate owned: Other real estate owned (OREO) represents properties that the Corporation has acquired through foreclosure by either accepting a deed in lieu of foreclosure, or by taking possession of assets that were used as loan collateral. The Corporation reports OREO at the lower of cost or fair value less cost to sell, adjusted periodically based on a current appraisal or an executed agreement of sale. Capital improvement expenses associated with the construction or repair of the property are capitalized as part of the cost of the OREO asset. Write-downs and any gain or loss upon the sale of OREO is recorded in other noninterest income. OREO is reported in other assets on the condensed consolidated balance sheet. At March 31, 2023 and December 31, 2022, OREO had a carrying amount of $19.0 million and $19.3 million, respectively. During the three months ended March 31, 2023, one commercial real estate property with a carrying value of $257 thousand was sold. Other real estate owned is classified within Level 3 in the fair value hierarchy based on appraisals, letters of intent or agreement of sale received from third parties.

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Deposit liabilities: The fair values for demand and savings accounts, with no stated maturities, is the amount payable on demand at the reporting date (carrying value) and are classified within Level 1 in the fair value hierarchy. The fair values for time deposits with fixed maturities are estimated by discounting the final maturity using interest rates currently offered for deposits with similar remaining maturities. Time deposits are classified within Level 2 in the fair value hierarchy.

Short-term borrowings: The fair value of short-term borrowings are estimated using current market rates for similar borrowings and are classified within Level 2 in the fair value hierarchy.

Long-term debt: The fair value of long-term debt is estimated by using discounted cash flow analysis, based on current market rates for debt with similar terms and remaining maturities. Long-term debt is classified within Level 2 in the fair value hierarchy.

Subordinated notes: The fair value of the subordinated notes are estimated by discounting the principal balance using the treasury yield curve for the term to the call date as the Corporation has the option to call the subordinated notes. The subordinated notes are classified within Level 2 in the fair value hierarchy.

Note 13. Segment Reporting

At March 31, 2023, the Corporation had three reportable business segments: Banking, Wealth Management and Insurance. The Corporation determines the segments based primarily upon product and service offerings, through the types of income generated and the regulatory environment. This is strategically how the Corporation operates and has positioned itself in the marketplace. Accordingly, significant operating decisions are based upon analysis of each of these segments. The parent holding company and intercompany eliminations are included in the "Other" segment.

Each segment generates revenue from a variety of products and services it provides. Examples of products and services provided for each reportable segment are indicated as follows:

● The Banking segment provides financial services to individuals, businesses, municipalities and nonprofit organizations. These services include a full range of banking services such as deposit taking, loan origination and servicing, mortgage banking, other general banking services and equipment lease financing.

● The Wealth Management segment offers investment advisory, financial planning, trust and brokerage services. The Wealth Management segment serves a diverse client base of private families and individuals, municipal pension plans, retirement plans, trusts and guardianships.

● The Insurance segment includes a full-service insurance brokerage agency offering commercial property and casualty insurance, employee benefit solutions, personal insurance lines and human resources consulting.

The following table provides total assets by reportable business segment as of the dates indicated.

(Dollars in thousands)	At March 31, 2023		At December 31, 2022		At March 31, 2022
Banking	$	7,238,593	$	7,104,727	$	6,997,081
Wealth Management	59,127		58,239		53,174
Insurance	46,059		44,728		42,240
Other	15,212		14,322		15,245
Consolidated assets	$	7,358,991	$	7,222,016	$	7,107,740

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The following tables provide reportable segment-specific information and reconciliations to consolidated financial information for the three months ended March 31, 2023 and 2022.

	Three Months Ended
	March 31, 2023
(Dollars in thousands)	Banking		Wealth Management		Insurance		Other		Consolidated
Interest income	$	83,224	$	20	$	—	$	9	$	83,253
Interest expense	20,676		979		—		2,281		23,936
Net interest income (expense)	62,548		(959)		—		(2,272)		59,317
Provision for credit losses	3,387		—		—		—		3,387
Noninterest income	6,237		6,759		6,720		(36)		19,680
Noninterest expense	39,932		4,860		3,935		802		49,529
Intersegment (revenue) expense*	(237)		115		122		—		—
Income (loss) before income taxes	25,703		825		2,663		(3,110)		26,081
Income tax expense (benefit)	5,185		164		583		(885)		5,047
Net income (loss)	$	20,518	$	661	$	2,080	$	(2,225)	$	21,034
Net capital expenditures	$	2,201	$	3	$	56	$	325	$	2,585

	Three Months Ended
	March 31, 2022
(Dollars in thousands)	Banking		Wealth Management		Insurance		Other		Consolidated
Interest income	$	51,189	$	1	$	—	$	8	$	51,198
Interest expense	3,180		30		—		1,328		4,538
Net interest income (expense)	48,009		(29)		—		(1,320)		46,660
Reversal of provision for credit losses	(3,450)		—		—		—		(3,450)
Noninterest income	7,370		7,305		5,764		31		20,470
Noninterest expense	36,488		4,709		3,865		350		45,412
Intersegment (revenue) expense*	(433)		211		222		—		—
Income (loss) before income taxes	22,774		2,356		1,677		(1,639)		25,168
Income tax expense (benefit)	4,543		492		358		(542)		4,851
Net income (loss)	$	18,231	$	1,864	$	1,319	$	(1,097)	$	20,317
Net capital expenditures	$	(5,592)	$	63	$	15	$	20	$	(5,494)

*Includes an allocation of general and administrative expenses from both the parent holding company and the Bank. These expenses are generally allocated based upon number of employees and square footage utilized.

Note 14. Contingencies

The Corporation is periodically subject to various pending and threatened legal actions, which involve claims for monetary relief. Based upon information presently available to the Corporation, it is the Corporation's opinion that any legal and financial responsibility arising from such claims will not have a material adverse effect on the Corporation's results of operations, financial position or cash flows.

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Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations

(All dollar amounts presented in tables are in thousands, except per share data. “BP” equates to “basis points”; "NM" equates to “not meaningful”; “—” equates to “zero” or “doesn’t round to a reportable number”; and “N/A” equates to “not applicable.” Certain prior period amounts have been reclassified to conform to the current-year presentation.)

Forward-Looking Statements

The information contained in this report may contain forward-looking statements. When used or incorporated by reference in disclosure documents, the words "believe" "anticipate," "estimate," "expect," "project," "target," "goal" and similar expressions are intended to identify forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include but are not limited to: statements of our goals, intentions and expectations; statements regarding our business plans, prospects, growth and operating strategies; statements regarding the quality of our loan and investment portfolios; and estimates of our risks and future costs and benefits. These forward-looking statements are based on current beliefs and expectations of our management and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to certain risks, uncertainties and assumptions, including but not limited to those set forth below:

•Operating, legal and regulatory risks;

•Economic, political and competitive forces;

•General economic conditions, either nationally or in our market areas, that are worse than expected included as a result of employment levels and labor shortages, and the effect of inflation, a potential recession or slowed economic growth caused by supply chain disruptions or otherwise;

•Legislative, regulatory and accounting changes, including increased assessments by the Federal Deposit Insurance Corporation;

•Monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;

•Demand for our financial products and services in our market area;

•Major catastrophes such as earthquakes, floods or other natural or human disasters and infectious disease outbreaks, including the current coronavirus (COVID-19) pandemic, the related disruption to local, regional and global economic activity and financial markets, and the impact that any of the foregoing may have on us and our customers and other constituencies;

•Inflation or volatility in interest rates that reduce our margins and yields, the fair value of financial instruments or our level of loan originations or prepayments on loans we have made and make;

•Fluctuations in real estate values in our market area;

•A failure to maintain adequate levels of capital and liquidity to support our operations;

•The composition and credit quality of our loan and investment portfolios;

•Changes in the level and direction of loan delinquencies, classified and criticized loans and charge-offs and changes in estimates of the adequacy of the allowance for credit losses;

•Changes in the economic assumptions utilized to calculate the allowance for credit losses;

•Our ability to access cost-effective funding;

•Changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio;

•Our ability to implement our business strategies;

•Our ability to manage market risk, credit risk and operational risk;

•Timing and amount of revenue and expenditures;

•Adverse changes in the securities markets;

•The impact of any military conflict, terrorist act or other geopolitical acts;

•Our ability to enter new markets successfully and capitalize on growth opportunities;

•Competition for loans, deposits and employees;

•System failures or cyber-security breaches of our information technology infrastructure and those of our third-party service providers;

•The failure to maintain current technologies and/or to successfully implement future information technology enhancements;

•Our ability to retain key employees;

•Other risks and uncertainties, including those occurring in the U.S. and world financial systems; and

•The risk that our analysis of these risks and forces could be incorrect and/or that the strategies developed to address them could be unsuccessful.

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Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, expected or projected. These and other risk factors are more fully described in this report and in the Univest Financial Corporation Annual Report on Form 10-K for the year ended December 31, 2022 under the section entitled "Item 1A - Risk Factors," and from time to time in other filings made by the Corporation with the SEC.

These forward-looking statements speak only at the date of the report. The Corporation expressly disclaims any obligation to publicly release any updates or revisions to reflect any change in the Corporation’s expectations with regard to any change in events, conditions or circumstances on which any such statement is based.

Critical Accounting Policies

Management, in order to prepare the Corporation’s financial statements in conformity with U.S. generally accepted accounting principles, is required to make estimates and assumptions that affect the amounts reported in the Corporation’s financial statements. There are uncertainties inherent in making these estimates and assumptions. Certain critical accounting policies could materially affect the results of operations and financial position of the Corporation should changes in circumstances require a change in related estimates or assumptions. The Corporation has identified the fair value measurement of investment securities available-for-sale and the calculation of the allowance for credit losses on loans and leases as critical accounting policies. For more information on these critical accounting policies, please refer to the Corporation’s 2022 Annual Report on Form 10-K.

General

The Corporation is a Pennsylvania corporation, organized in 1973, and registered as a bank holding company pursuant to the Bank Holding Company Act of 1956. The Corporation owns all of the capital stock of Univest Bank and Trust Co. The consolidated financial statements include the accounts of the Corporation, the Bank and its subsidiaries.

The Bank is engaged in domestic banking services for individuals, businesses, municipalities and non-profit organizations. Through its wholly-owned subsidiaries, the Bank provides a variety of financial services throughout its markets of operation. The Bank is the parent company of Girard Investment Services, LLC, a full-service registered introducing broker-dealer and a licensed insurance agency, Girard Advisory Services, LLC, a registered investment advisory firm and Girard Pension Services, LLC, a registered investment advisor, which provides investment consulting and management services to municipal entities. The Bank is also the parent company of Univest Insurance, LLC, an independent insurance agency, and Univest Capital, Inc., an equipment financing business.

The Corporation earns revenue primarily from the margins and fees generated from lending and depository services as well as fee-based income from trust, insurance, mortgage banking and investment services. The Corporation seeks to achieve adequate and reliable earnings through business growth while maintaining adequate levels of capital and liquidity and limiting exposure to credit and interest rate risk.

Executive Overview

The Corporation’s consolidated net income, earnings per share and return on average assets and average equity were as follows:

	Three Months Ended
	March 31,						Change
(Dollars in thousands, except per share data)	2023			2022			Amount		Percent
Net income	$	21,034		$	20,317		$	717	3.5	%
Net income per share:
Basic	$	0.72		$	0.69		$	0.03	4.3
Diluted	0.71			0.68			0.03		4.4
Return on average assets	1.18		%	1.17		%	1 BP		0.9
Return on average equity	10.81		%	10.64		%	17 BP		1.6

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Results of Operations

Net Interest Income

Net interest income is the difference between interest earned primarily on loans and leases and investment securities and interest paid on deposits, borrowings, long-term debt and subordinated notes. Net interest income is the principal source of the Corporation’s revenue. Table 1 presents the Corporation’s average balances, tax-equivalent interest income, interest expense, tax-equivalent yields earned on average assets, cost of average liabilities, and shareholders' equity on a tax-equivalent basis for the three months ended March 31, 2023 and 2022. The tax-equivalent net interest margin is tax-equivalent net interest income as a percentage of average interest-earning assets. The tax-equivalent net interest spread represents the weighted average tax-equivalent yield on interest-earning assets less the weighted average cost of interest-bearing liabilities. The effect of net interest-free funding sources represents the effect on the net interest margin of net funding provided by noninterest-earning assets, noninterest-bearing liabilities and shareholders' equity. Table 2 analyzes the changes in the tax-equivalent net interest income for the periods broken down by their rate and volume components.

Three months ended March 31, 2023 versus 2022

Net interest income on a tax-equivalent basis for the three months ended March 31, 2023 was $59.7 million, an increase of $12.5 million, or 26.5%, compared to $47.2 million for the three months ended March 31, 2022. The increase in tax-equivalent net interest income for the three months ended March 31, 2023 compared to the comparable period in the prior year was largely due to significant loan balance growth and an increase in asset yields, offset by increases in the average balance of borrowings and the cost of funds.

The net interest margin, on a tax-equivalent basis, was 3.58% for the three months ended March 31, 2023 compared to 2.89% for the three months ended March 31, 2022. Excess liquidity had no impact on net interest margin for the three months ended March 31, 2023. Excess liquidity reduced net interest margin by approximately 33 basis points for the three months ended March 31, 2022. Excluding the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, was 3.22% for the three months ended March 31, 2022.

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Table 1—Average Balances and Interest Rates—Tax-Equivalent Basis

	Three Months Ended March 31,
	2023							2022
(Dollars in thousands)	Average Balance			Income/ Expense		Average Rate		Average Balance			Income/ Expense		Average Rate
Assets:
Interest-earning deposits with other banks	$	47,835		$	479	4.06	%	$	733,173		$	357	0.20	%
U.S. government obligations	—			—		—		5,222			26		2.02
Obligations of states and political subdivisions*	2,286			17		3.02		2,332			19		3.30
Other debt and equity securities	513,594			3,495		2.76		514,574			2,339		1.84
Federal Home Loan Bank, Federal Reserve Bank and other stock	34,742			609		7.11		27,115			355		5.31
Total interest-earning deposits, investments and other interest-earning assets	598,457			4,600		3.12		1,282,416			3,096		0.98
Commercial, financial and agricultural loans	991,876			15,538		6.35		919,957			8,162		3.60
Real estate—commercial and construction loans	3,342,199			42,421		5.15		2,904,602			25,820		3.61
Real estate—residential loans	1,408,292			15,730		4.53		1,116,356			9,882		3.59
Loans to individuals	27,254			449		6.68		25,799			238		3.74
Municipal loans and leases*	229,955			2,341		4.13		242,508			2,434		4.07
Lease financings	165,314			2,541		6.23		135,476			2,075		6.21
Gross loans and leases	6,164,890			79,020		5.20		5,344,698			48,611		3.69
Total interest-earning assets	6,763,347			83,620		5.01		6,627,114			51,707		3.16
Cash and due from banks	58,035							53,698
Allowance for credit losses, loans and leases	(79,977)							(72,067)
Premises and equipment, net	51,583							53,948
Operating lease right-of-use assets	31,303							30,394
Other assets	394,920							354,893
Total assets	$	7,219,211						$	7,047,980
Liabilities:
Interest-bearing checking deposits	$	857,891		$	3,164	1.50	%	$	881,462		$	443	0.20	%
Money market savings	1,489,129			11,081		3.02		1,542,581			904		0.24
Regular savings	985,716			669		0.28		1,021,550			238		0.09
Time deposits	566,308			3,422		2.45		473,589			1,306		1.12
Total time and interest-bearing deposits	3,899,044			18,336		1.91		3,919,182			2,891		0.30
Short-term borrowings	240,318			2,728		4.60		17,636			2		0.05
Long-term debt	112,222			591		2.14		95,000			317		1.35
Subordinated notes	148,319			2,281		6.24		98,911			1,328		5.45
Total borrowings	500,859			5,600		4.53		211,547			1,647		3.16
Total interest-bearing liabilities	4,399,903			23,936		2.21		4,130,729			4,538		0.45
Noninterest-bearing deposits	1,935,371							2,065,633
Operating lease liabilities	34,438							33,452
Accrued expenses and other liabilities	60,346							43,808
Total liabilities	6,430,058							6,273,622
Total interest-bearing liabilities and noninterest-bearing deposits ("Cost of Funds")	6,335,274					1.53		6,196,362					0.30
Shareholders’ Equity:
Common stock	157,784							157,784
Additional paid-in capital	300,293							298,975
Retained earnings and other equity	331,076							317,599
Total shareholders’ equity	789,153							774,358
Total liabilities and shareholders’ equity	$	7,219,211						$	7,047,980
Net interest income				$	59,684						$	47,169
Net interest spread						2.80							2.71
Effect of net interest-free funding sources						0.78							0.18
Net interest margin						3.58	%						2.89	%
Ratio of average interest-earning assets to average interest-bearing liabilities	153.72		%					160.43		%

*Obligations of states and political subdivisions and municipal loans and leases are tax-exempt earning assets.

Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.

Net interest income includes net deferred costs amortization of $465 thousand and $136 thousand for the three months ended March 31, 2023 and 2022, respectively.

Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended March 31, 2023 and 2022 have been calculated using the Corporation's federal applicable rate of 21%.

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Table 2—Analysis of Changes in Net Interest Income

The rate-volume variance analysis set forth in the table below compares changes in tax-equivalent net interest income for the periods indicated by their rate and volume components. The change in interest income/expense due to both volume and rate has been allocated proportionately.

	Three Months Ended
	March 31, 2023 Versus 2022
(Dollars in thousands)	Volume Change		Rate Change		Total
Interest income:
Interest-earning deposits with other banks	$	(639)	$	761	$	122
U.S. government obligations	(26)		—		(26)
Obligations of states and political subdivisions	—		(2)		(2)
Other debt and equity securities	(4)		1,160		1,156
Federal Home Loan Bank, Federal Reserve Bank and other stock	115		139		254
Interest on deposits, investments and other earning assets	(554)		2,058		1,504
Commercial, financial and agricultural loans	684		6,692		7,376
Real estate—commercial and construction loans	4,332		12,269		16,601
Real estate—residential loans	2,922		2,926		5,848
Loans to individuals	14		197		211
Municipal loans and leases	(128)		35		(93)
Lease financings	459		7		466
Interest and fees on loans and leases	8,283		22,126		30,409
Total interest income	7,729		24,184		31,913
Interest expense:
Interest-bearing checking deposits	(12)		2,733		2,721
Money market savings	(33)		10,210		10,177
Regular savings	(9)		440		431
Time deposits	299		1,817		2,116
Total time and interest-bearing deposits	245		15,200		15,445
Short-term borrowings	327		2,399		2,726
Long-term debt	65		209		274
Subordinated notes	738		215		953
Interest on borrowings	1,130		2,823		3,953
Total interest expense	1,375		18,023		19,398
Net interest income	$	6,354	$	6,161	$	12,515

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Provision for Credit Losses

The provision for credit losses for the three months ended March 31, 2023 was $3.4 million compared to a reversal of provision for credit losses of $3.5 million for the three months ended March 31, 2022. The following table details information pertaining to the Corporation’s allowance for credit losses on loans and leases as a percentage of loans and leases held for investment at the dates indicated.

(Dollars in thousands)	March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021
Allowance for credit losses, loans and leases	$	80,034		$	79,004		$	74,929		$	72,011		$	68,286		$	71,924
Loans and leases held for investment	6,239,804			6,123,230			5,849,259			5,661,777			5,400,786			5,310,017
Allowance for credit losses, loans and leases / loans and leases held for investment	1.28		%	1.29		%	1.28		%	1.27		%	1.26		%	1.35		%

Noninterest Income

The following table presents noninterest income for the three months ended March 31, 2023 and 2022:

	Three Months Ended
	March 31,				Change
(Dollars in thousands)	2023		2022		Amount		Percent
Trust fee income	$	1,955	$	2,102	$	(147)	(7.0	%)
Service charges on deposit accounts	1,547		1,504		43		2.9
Investment advisory commission and fee income	4,752		5,152		(400)		(7.8)
Insurance commission and fee income	6,487		5,570		917		16.5
Other service fee income	3,076		2,756		320		11.6
Bank owned life insurance income	767		699		68		9.7
Net gain on sales of investment securities	—		30		(30)		N/M
Net gain on mortgage banking activities	625		1,929		(1,304)		(67.6)
Other income	471		728		(257)		(35.3)
Total noninterest income	$	19,680	$	20,470	$	(790)	(3.9	%)

Three months ended March 31, 2023 versus 2022

Noninterest income for the three months ended March 31, 2023 was $19.7 million, a decrease of $790 thousand, or 3.9%, from the three months ended March 31, 2022.

The net gain on mortgage banking activities decreased $1.3 million, or 67.6%, for the three months ended March 31, 2023 from the comparable period in the prior year. The decrease for the three months ended March 31, 2023 was primarily due to a decrease in loan sales and a contraction of gain on sale margins due to the higher interest rate environment in 2023. Investment advisory commission and fee income decreased $400 thousand, or 7.8%, for the three months ended March 31, 2023 from the comparable period in the prior year, primarily driven by reduced assets under management and supervision due to market volatility.

Insurance commission and fee income increased $917 thousand, or 16.5%, for the three months ended March 31, 2023 from the comparable period in the prior year, primarily due to increases in premiums for group life and health and commercial lines and an increase in contingent commission income of $651 thousand, which was $1.8 million and $1.2 million for the quarters ended March 31, 2023 and 2022, respectively. Contingent income is largely recognized in the first quarter of the year.

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Noninterest Expense

The following table presents noninterest expense for the three months ended March 31, 2023 and 2022:

	Three Months Ended
	March 31,				Change
(Dollars in thousands)	2023		2022		Amount		Percent
Salaries, benefits and commissions	$	31,014	$	28,245	$	2,769	9.8	%
Net occupancy	2,727		2,716		11		0.4
Equipment	993		982		11		1.1
Data processing	4,029		3,567		462		13.0
Professional fees	1,941		2,138		(197)		(9.2)
Marketing and advertising	371		425		(54)		(12.7)
Deposit insurance premiums	1,101		893		208		23.3
Intangible expenses	253		341		(88)		(25.8)
Other expense	7,100		6,105		995		16.3
Total noninterest expense	$	49,529	$	45,412	$	4,117	9.1	%

Three months ended March 31, 2023 versus 2022

Noninterest expense for the three months ended March 31, 2023 was $49.5 million, an increase of $4.1 million, or 9.1%, from the three months ended March 31, 2022.

Salaries, benefits and commissions increased $2.8 million, or 9.8%, for the three months ended March 31, 2023 from the comparable period in the prior year. This increase reflects our expansion into Maryland and Western Pennsylvania and annual merit increases. Additionally, capitalized compensation decreased by $429 thousand due to reduced loan production during the three months ended March 31, 2023.

Data processing expenses increased $462 thousand, or 13.0%, for the three months ended March 31, 2023 from the comparable period in the prior year, primarily due to our investments in technology in recent years and general price increases incurred in the second half of 2022. Other expense increased $995 thousand, or 16.3%, for the three months ended March 31, 2023 from the comparable period in the prior year, primarily due to increases in retirement plan costs of $407 thousand, which was primarily driven by the current interest rate environment, and Bank Shares tax expense of $110 thousand driven by year over year growth of the Bank's Shareholders' Equity.

Tax Provision

The Corporation recognized a tax expense of $5.0 million and $4.9 million for the three months ended March 31, 2023 and 2022, respectively, resulting in an effective rate of 19.4% and 19.3%, respectively. The effective tax rates for the three months ended March 31, 2023 and 2022 were favorably impacted by seven and eight basis points, respectively, of discrete tax benefits resulting from equity compensation awards vesting in the respective quarters. Additionally, the effective tax rates for the three months ended March 31, 2023 and 2022 reflected the benefits of tax-exempt income from investments in municipal securities and loans and leases.

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Financial Condition

Assets

The following table presents assets at the dates indicated:

	At March 31, 2023		At December 31, 2022		Change
(Dollars in thousands)					Amount		Percent
Cash, interest-earning deposits and federal funds sold	$	138,324	$	152,799	$	(14,475)	(9.5)	%
Investment securities	522,108		507,562		14,546		2.9
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost	43,792		33,841		9,951		29.4
Loans held for sale	5,425		5,037		388		7.7
Loans and leases held for investment	6,239,804		6,123,230		116,574		1.9
Allowance for credit losses, loans and leases	(80,034)		(79,004)		(1,030)		1.3
Premises and equipment, net	52,334		50,939		1,395		2.7
Operating lease right-of-use assets	31,663		30,059		1,604		5.3
Goodwill and other intangibles, net	186,554		186,894		(340)		(0.2)
Bank owned life insurance	128,926		120,297		8,629		7.2
Accrued interest receivable and other assets	90,095		90,362		(267)		(0.3)
Total assets	$	7,358,991	$	7,222,016	$	136,975	1.9	%

Cash and Interest-Earning Deposits

Cash and interest-earning deposits decreased $14.5 million, or 9.5%, from December 31, 2022, due to a decrease in cash letters and in clearing activity.

Investment Securities

Total investment securities at March 31, 2023 increased $14.5 million, or 2.9%, from December 31, 2022. Purchases of $19.7 million, primarily residential mortgage-backed securities, and increases in the fair value of available-for-sale investment securities of $5.7 million, were partially offset by maturities and pay-downs of $9.7 million, calls of $500 thousand, a provision for credit losses of $292 thousand, net amortization of purchased premiums and discounts of $276 thousand and sales of $10 thousand.

Loans and Leases

Gross loans and leases held for investment increased $116.6 million, or 1.9%, from December 31, 2022. The growth in gross loans and leases held for investment was primarily due to increases in commercial real estate, residential mortgage loans, and lease financings.

Asset Quality

The Bank's strategy for credit risk management focuses on having well-defined credit policies and uniform underwriting criteria and providing prompt attention to potential problem loans and leases. Performance of the loan and lease portfolio is monitored on a regular basis by Bank management and lending officers.

Nonaccrual loans and leases are loans or leases for which it is probable that not all principal and interest payments due will be collectible in accordance with the original contractual terms. Factors considered by management in determining accrual status include payment status, borrower cash flows, collateral value and the probability of collecting scheduled principal and interest payments when due.

At March 31, 2023, nonaccrual loans and leases were $11.4 million and had a related allowance for credit losses on loans and leases of $912 thousand. At December 31, 2022, nonaccrual loans and leases were $13.4 million and had a related allowance for credit losses on loans and leases of $2.8 million. During the first quarter of 2023, $2.4 million of charge-offs were recorded against two existing nonaccrual commercial loans to one borrower. As of December 31, 2022, the allowance for

46

credit losses included a $2.1 million specific reserve for this relationship. Individual reserves have been established based on current facts and management's judgements about the ultimate outcome of these credits, including the most recent known data available on any related underlying collateral and the borrower's cash flows. The amount of individual reserve needed for these credits could change in future periods subject to changes in facts and judgements related to these credits.

Net loan and lease charge-offs for the three months ended March 31, 2023 were $2.8 million compared to $76 thousand for the same period in the prior year. The increase in charge-offs is primarily due to the previously discussed charged-off relationship.

Other real estate owned was $19.0 million at March 31, 2023 and $19.3 million at December 31, 2022, respectively. The decrease of $258 thousand was related to the sale of a commercial real estate property, which was transferred to other real estate owned in the third quarter of 2020.

Table 3—Nonaccrual and Past Due Loans and Leases; Other Real Estate Owned; and Related Ratios

The following table details information pertaining to the Corporation’s nonperforming assets at the dates indicated.

(Dollars in thousands)	At March 31, 2023			At December 31, 2022
Nonaccrual loans and leases	$	11,362		$	13,353
Accruing loans and leases, 90 days or more past due	1,996			875
Total nonperforming loans and leases	$	13,358		$	14,228
Other real estate owned	19,000			19,258
Total nonperforming assets	$	32,358		$	33,486
Loans and leases held for investment	$	6,239,804		$	6,123,230
Allowance for credit losses, loans and leases	80,034			79,004
Allowance for credit losses, loans and leases / loans and leases held for investment	1.28		%	1.29		%
Nonaccrual loans and leases / loans and leases held for investment	0.18		%	0.22		%
Allowance for credit losses, loans and leases / nonaccrual loans and leases	704.40		%	591.66		%

The following table provides additional information on the Corporation’s nonaccrual loans held for investment:

(Dollars in thousands)	At March 31, 2023		At December 31, 2022
Nonaccrual loans and leases	$	11,362	$	13,353
Nonaccrual loans and leases with partial charge-offs	1,085		928
Life-to-date partial charge-offs on nonaccrual loans and leases	727		448
Specific reserves on individually analyzed loans	912		2,765

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Table 4—Loan Portfolio Overview

The following table provides summarized detail related to outstanding commercial loan balances, excluding PPP loans, segmented by industry description as of March 31, 2023:

(Dollars in thousands)	March 31, 2023
Industry Description	Total Outstanding Balance		% of Commercial Loan Portfolio
CRE - Retail	$	443,932	8.8	%
Animal Production	341,832		6.8
CRE - Office	308,583		6.1
CRE - Multi-family	294,816		5.8
CRE - 1-4 Family Residential Investment	269,295		5.3
Hotels & Motels (Accommodation)	207,019		4.1
CRE - Industrial / Warehouse	199,372		4.0
Nursing and Residential Care Facilities	165,160		3.3
Homebuilding (tract developers, remodelers)	156,753		3.1
Education	155,441		3.1
Specialty Trade Contractors	149,939		3.0
Merchant Wholesalers, Durable Goods	128,837		2.6
Motor Vehicle and Parts Dealers	123,448		2.5
CRE - Mixed-Use - Residential	111,124		2.2
Crop Production	93,487		1.9
Administrative and Support Services	85,589		1.7
Rental and Leasing Services	79,800		1.6
Wood Product Manufacturing	78,939		1.6
CRE - Mixed-Use - Commercial	78,628		1.6
Real Estate Lenders, Secondary Market Financing	76,798		1.5
Religious Organizations, Advocacy Groups	74,590		1.5
Fabricated Metal Product Manufacturing	70,896		1.4
Merchant Wholesalers, Nondurable Goods	68,129		1.3
Food Services and Drinking Places	66,605		1.3
Food Manufacturing	66,425		1.3
Personal and Laundry Services	64,434		1.3
Amusement, Gambling, and Recreation Industries	61,295		1.2
Repair and Maintenance	56,749		1.1
Miniwarehouse / Self-Storage	56,336		1.1
Private Equity & Special Purpose Entities (excluding Trusts, Estates and Agency Accounts)	54,918		1.1
Truck Transportation	52,263		1.0
Industries with >$50 million in outstandings	$	4,241,432	84.2	%
Industries with <$50 million in outstandings	$	794,605	15.8	%
Total Commercial Loans	$	5,036,037	100.0	%
Consumer Loans and Lease Financings	Total Outstanding Balance
Real Estate-Residential Secured for Personal Purpose	$	779,557
Real Estate-Home Equity Secured for Personal Purpose	172,073
Loans to Individuals	28,656
Lease Financings	223,481
Total Consumer Loans and Lease Financings	$	1,203,767
Total	$	6,239,804

Goodwill and Other Intangible Assets

Goodwill and other intangible assets have been recorded on the books of the Corporation in connection with acquisitions. The Corporation has core deposit and customer-related intangibles, which are not deemed to have an indefinite life and therefore will continue to be amortized over their useful life using the present value of projected cash flows. The amortization of core deposit and customer-related intangibles was $229 thousand and $307 thousand for the three months ended March 31, 2023 and 2022, respectively. See Note 5 to the Condensed Unaudited Consolidated Financial Statements, "Goodwill and Other Intangible Assets," for a summary of intangible assets at March 31, 2023 and December 31, 2022.

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The Corporation also has goodwill with a net carrying value of $175.5 million at March 31, 2023 and December 31, 2022, which is deemed to be an indefinite intangible asset and is not amortized. The Corporation completes a goodwill impairment analysis on an annual basis, or more often if events and circumstances indicate that there may be impairment. The Corporation also completes an impairment test for other identifiable intangible assets on an annual basis or more often if events and circumstances indicate there may be impairment. There was no impairment of goodwill or identifiable intangibles during the three months ended March 31, 2023 or 2022. There can be no assurance that future impairment assessments or tests will not result in a charge to earnings.

Bank Owned Life Insurance

The Bank purchases bank owned life insurance to protect itself against the loss of key employees due to death and to offset or finance the Corporation's future costs and obligations to employees under its benefits plans. Bank owned life insurance increased $8.6 million, or 7.2%, from December 31, 2022, primarily due to $7.9 million of policies purchased during the first quarter of 2023.

Liabilities

The following table presents liabilities at the dates indicated:

(Dollars in thousands)	At March 31, 2023		At December 31, 2022		Change
					Amount		Percent
Deposits	$	5,834,657	$	5,913,526	$	(78,869)	(1.3	%)
Short-term borrowings	271,881		197,141		74,740		37.9
Long-term debt	220,000		95,000		125,000		131.6
Subordinated notes	148,385		148,260		125		0.1
Operating lease liabilities	34,846		33,153		1,693		5.1
Accrued interest payable and other liabilities	50,726		58,436		(7,710)		(13.2)
Total liabilities	$	6,560,495	$	6,445,516	$	114,979	1.8	%

Deposits

Total deposits decreased $78.9 million, or 1.3%, from December 31, 2022, primarily due to decreases in commercial and consumer deposits partially offset by increases in public funds and brokered deposits.

Borrowings

Total borrowings increased $199.9 million, or 45.4%, from December 31, 2022, due to increases of $38.7 million in short-term FHLB overnight borrowings, $30.0 million in federal funds purchased and $6.0 million in short-term customer repurchase agreements. The funds were used to fund loan growth, purchase investment securities and to maintain liquidity.

Other Liabilities

Other liabilities decreased $7.7 million, or 13.2%, from December 31, 2022, due to the payment in the first quarter of $7.7 million in annual incentive payments that were previously accrued.

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Shareholders’ Equity

The following table presents total shareholders’ equity at the dates indicated:

(Dollars in thousands)	At March 31, 2023		At December 31, 2022		Change
					Amount		Percent
Common stock	$	157,784	$	157,784	$	—	—	%
Additional paid-in capital	298,167		300,808		(2,641)		(0.9)
Retained earnings	443,493		428,637		14,856		3.5
Accumulated other comprehensive loss	(55,550)		(62,104)		6,554		(10.6)
Treasury stock	(45,398)		(48,625)		3,227		(6.6)
Total shareholders’ equity	$	798,496	$	776,500	$	21,996	2.8	%

Total shareholders' equity increased $22.0 million, or 2.8%, from December 31, 2022. Retained earnings at March 31, 2023 increased by $14.9 million primarily due to net income of $21.0 million offset by $6.2 million in cash dividends paid for the three months ended March 31, 2023. Accumulated other comprehensive loss decreased by $6.6 million, primarily attributable to increases in the fair value of available-for-sale investment securities of $4.5 million, net of tax and an increase in the fair value of derivatives of $1.9 million, net of tax. Treasury stock decreased $3.2 million from December 31, 2022 primarily due to stock issued under the dividend reinvestment and employee stock purchase plans and stock-based incentive plan activity.

Discussion of Segments

The Corporation has three operating segments: Banking, Wealth Management and Insurance. Detailed segment information appears in Note 13, "Segment Reporting" included in the Notes to the Condensed Unaudited Consolidated Financial Statements under Item 1 of this Quarterly Report on Form 10-Q.

The Banking segment reported pre-tax income of $25.7 million and $22.8 million for the three months ended March 31, 2023 and 2022, respectively. See the section of this MD&A under the headings "Results of Operations" and "Financial Condition" for a discussion of key items impacting the Banking Segment.

The Wealth Management segment reported pre-tax income of $825 thousand and $2.4 million for the three months ended March 31, 2023 and 2022, respectively. Noninterest income was $6.8 million and $7.3 million for the three months ended March 31, 2023 and 2022, respectively. The decrease in pre-tax income and noninterest income for the three months ended March 31, 2023 compared to the three months ended March 31, 2022 was due to reduced assets under management and supervision due to market volatility as a majority of investment advisory fees are billed based on the prior quarter-end assets under management and supervision balance. Additionally, pre-tax income decreased for the three months ended March 31, 2023 compared to the three months ended March 31, 2022 due to increased interest expense as a result of the rising interest rate environment. Assets under management and supervision were $4.3 billion as of March 31, 2023, $4.2 billion as of December 31, 2022, $4.6 billion as of March 31, 2022 and $4.9 billion as of December 31, 2021.

The Insurance segment reported pre-tax income of $2.7 million and $1.7 million for the three months ended March 31, 2023 and 2022, respectively. Noninterest income was $6.7 million and $5.8 million for the three months ended March 31, 2023 and 2022, respectively. The increase in pre-tax income and noninterest income for the three months ended March 31, 2023 was primarily due to increases in premiums for group life and health and commercial lines and an increase in contingent income.

Capital Adequacy

Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum capital amounts and ratios as set forth in the following table. To comply with the regulatory definition of well capitalized, a depository institution must maintain minimum capital amounts and ratios as set forth in the following table.

Under current rules, in order to avoid limitations on capital distributions (including dividend payments and certain discretionary bonus payments to executive officers), a banking organization must hold a capital conservation buffer comprised of common equity Tier 1 capital above its minimum risk-based capital requirements in an amount greater than 2.50% of total risk-weighted assets. The Corporation's and Bank's intent is to maintain capital levels in excess of the capital conservation buffer, which requires Tier 1 Capital to Risk Weighted Assets to exceed 8.50% and Total Capital to Risk Weighted Assets to exceed 10.50%. The Corporation and the Bank were in compliance with these requirements at March 31, 2023.

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Table 5—Regulatory Capital

The Corporation's and Bank's actual and required capital ratios as of March 31, 2023 and December 31, 2022 under regulatory capital rules were as follows.

	Actual				For Capital Adequacy Purposes				To Be Well-Capitalized Under Prompt Corrective Action Provisions
(Dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
At March 31, 2023
Total Capital (to Risk-Weighted Assets):
Corporation	$	911,112	13.78	%	$	529,004	8.00	%	$	661,255	10.00	%
Bank	765,396		11.60		527,806		8.00		659,757		10.00
Tier 1 Capital (to Risk-Weighted Assets):
Corporation	689,617		10.43		396,753		6.00		529,004		8.00
Bank	692,286		10.49		395,854		6.00		527,806		8.00
Tier 1 Common Capital (to Risk-Weighted Assets):
Corporation	689,617		10.43		297,565		4.50		429,816		6.50
Bank	692,286		10.49		296,891		4.50		428,842		6.50
Tier 1 Capital (to Average Assets):
Corporation	689,617		9.71		284,151		4.00		355,188		5.00
Bank	692,286		9.77		283,551		4.00		354,439		5.00
At December 31, 2022
Total Capital (to Risk-Weighted Assets):
Corporation	$	894,343	13.67	%	$	523,498	8.00	%	$	654,372	10.00	%
Bank	740,936		11.35		522,370		8.00		652,962		10.00
Tier 1 Capital (to Risk-Weighted Assets):
Corporation	678,403		10.37		392,623		6.00		523,498		8.00
Bank	673,256		10.31		391,777		6.00		522,370		8.00
Tier 1 Common Capital (to Risk-Weighted Assets):
Corporation	678,403		10.37		294,467		4.50		425,342		6.50
Bank	673,256		10.31		293,833		4.50		424,426		6.50
Tier 1 Capital (to Average Assets):
Corporation	678,403		9.81		276,586		4.00		345,732		5.00
Bank	673,256		9.76		276,014		4.00		345,017		5.00

At March 31, 2023 and December 31, 2022, the Corporation and the Bank continued to meet all capital adequacy requirements to which they are subject. At March 31, 2023, the Bank was categorized as "well capitalized" under the regulatory framework for prompt corrective action. There are no conditions or events since that management believes have changed the Bank’s category.

In December 2018, the Federal Reserve announced that a banking organization that experiences a reduction in retained earnings due to the CECL adoption as of the beginning of the fiscal year in which CECL was adopted may elect to phase in the regulatory capital impact of adopting CECL. Transitional amounts are calculated for the following items: retained earnings, temporary difference deferred tax assets and credit loss allowances eligible for inclusion in regulatory capital. When calculating regulatory capital ratios, 25% of the transitional amounts are phased in during the first year. An additional 25% of the transitional amounts are phased in over each of the next two years and at the beginning of the fourth year, the day-one effects of CECL are completely reflected in regulatory capital.

Additionally, in March 2020, the Office of the Comptroller of the Currency, the U.S. Department of the Treasury, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation announced the 2020 CECL interim final rule (IFR) designed to allow eligible firms to better focus on supporting lending to creditworthy households and businesses in light of the then-recent strains on the U.S. economy as a result of the coronavirus (COVID-19). The 2020 CECL IFR allows corporations that adopt CECL before December 31, 2020 to defer 100 percent of the day-one transitional amounts

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described above through December 31, 2021 for regulatory capital purposes. Additionally, the 2020 CECL IFR allows electing firms to defer through December 31, 2021 the approximate portion of the post day-one allowance attributable to CECL relative to the incurred loss methodology. This is calculated by applying a 25% scaling factor to the CECL provision.

The Corporation adopted the transition guidance and the 2020 CECL IFR relief and applied these effects to regulatory capital.

Asset/Liability Management

The primary functions of Asset/Liability Management are to ensure adequate earnings, capital and liquidity while maintaining an appropriate balance between interest-earning assets and interest-bearing liabilities. Management's objective with regard to interest rate risk is to understand the Corporation's sensitivity to changes in interest rates and develop and implement strategies to minimize volatility while maximizing net interest income.

The Corporation uses gap analysis and earnings at risk simulation modeling to quantify exposure to interest rate risk. The Corporation uses the gap analysis to identify and monitor long-term rate exposure and uses a simulation model to measure short-term rate exposure. The Corporation runs various earnings simulation scenarios to quantify the impact of declining or rising interest rates on net interest income over a one-year and two-year horizon. The simulation uses expected cash flows and repricing characteristics for all financial instruments at a point in time and incorporates company-developed, market-based assumptions regarding growth, pricing, and optionality such as prepayment speeds. As interest rates increase, fixed-rate assets tend to decrease in value; conversely, as interest rates decline, fixed-rate assets tend to increase in value.

Liquidity

The Corporation, in its role as a financial intermediary, is exposed to certain liquidity risks. Liquidity refers to the Corporation’s ability to ensure that sufficient cash flows and liquid assets are available to satisfy demand for loans, deposit withdrawals, repayment of borrowings, certificates of deposit at maturity, operating expenses and capital expenditures. The Corporation manages liquidity risk by measuring and monitoring liquidity sources and estimated funding needs on a daily basis. The Corporation has a contingency funding plan in place to address liquidity needs in the event of an institution-specific or a systemic financial crisis.

The Corporation and its subsidiaries maintain ample ability to meet the liquidity needs of its customers. Our most liquid asset, cash and cash equivalents, was $138.3 million at March 31, 2023. Securities classified as available-for-sale, which provide additional sources of liquidity, totaled $367.7 million at March 31, 2023. Further, the Corporation and its subsidiaries had committed borrowing capacity from the Federal Home Loan Bank and Federal Reserve Bank of $3.1 billion at March 31, 2023, of which $1.9 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $410.0 million at March 31, 2023, of which $320.0 million was unused as of March 31, 2023. Future availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.

Sources of Funds

Core deposits continue to be the largest significant funding source for the Corporation. These deposits are primarily generated from individuals, businesses, municipalities and non-profit customers located in our primary service areas. The Corporation faces increased competition for these deposits from a large array of financial market participants, including banks, credit unions, savings institutions, mutual funds, security dealers and others.

As part of its diversified funding strategy, the Corporation also utilizes a mix of short-term and long-term wholesale funding providers. Wholesale funding includes federal funds purchases from correspondent banks, secured borrowing lines from the Federal Home Loan Bank of Pittsburgh, the Federal Reserve Bank of Philadelphia and, at times, brokered deposits and other similar sources.

Cash Requirements

The Corporation has cash requirements for various financial obligations, including contractual obligations and commitments that require cash payments. The most significant contractual obligations, in both the under and over one-year time period, are for the Bank to repay certificates of deposit and long-term borrowings. The Bank anticipates meeting these obligations by utilizing on-balance sheet liquidity and continuing to provide convenient depository and cash management

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services through its financial center network, thereby replacing these contractual obligations with similar fund sources at rates that are competitive in our market. The Bank will also use borrowings and brokered deposits to meet its obligations.

Commitments to extend credit are the Bank’s most significant commitment in both the under and over one-year time periods. These commitments do not necessarily represent future cash requirements in that these commitments often expire without being drawn upon.

Recent Accounting Pronouncements

For information regarding recent accounting pronouncements, refer to Note 1 to the Condensed Consolidated Financial Statements, "Summary of Significant Accounting Policies."

Item 3.    Quantitative and Qualitative Disclosures About Market Risk

No material changes in the Corporation’s market risk occurred during the period ended March 31, 2023. A detailed discussion of market risk is provided in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2022.

Item 4.    Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Management is responsible for the disclosure controls and procedures of the Corporation. Disclosure controls and procedures are controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods required by the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be so disclosed by an issuer is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of the Corporation’s management, including the Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial and Accounting Officer), of the effectiveness of the design and operation of the Corporation’s disclosure controls and procedures. Based on that evaluation, the Corporation’s Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of March 31, 2023.

Changes in Internal Control over Financial Reporting

There were no changes in the Corporation's internal control over financial reporting (as defined in Rule 13a-15(f)) during the quarter ended March 31, 2023 that materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1.    Legal Proceedings

The Corporation is periodically subject to various pending and threatened legal actions that involve claims for monetary relief. Based upon information presently available to the Corporation, it is the Corporation's opinion that any legal and financial responsibility arising from such claims will not have a material adverse effect on the Corporation's results of operations, financial position or cash flows.

Item 1A. Risk Factors

Other than as noted below, there have been no material changes in risk factors applicable to the Corporation from those disclosed in "Risk Factors" in Item 1A of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2022.

Our stock price may be negatively impacted by unrelated bank failures and negative depositor confidence in depository institutions. Further, if we are unable to adequately manage our liquidity, deposits, capital levels and interest rate risk, which have come under greater scrutiny in light of recent bank failures, it may have a material adverse effect on our financial condition and results of operations.

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On March 9, 2023, Silvergate Bank, La Jolla, California, announced its decision to voluntarily liquidate its assets and wind down operations. On March 10, 2023, Silicon Valley Bank, Santa Clara, California, was closed by the California Department of Financial Protection and Innovation and on March 12, 2023, Signature Bank, New York, New York, was closed by the New York State Department of Financial Services. In each case, the FDIC was named receiver. Additionally, on May 1, 2023, First Republic Bank, San Francisco, California, was closed by the FDIC and sold to JPMorgan Chase & Co. These banks also had elevated levels of uninsured deposits, which may be less likely to remain at the bank over time and less stable as a source of funding than insured deposits. These failures led to volatility and declines in the market for bank stocks and questions about depositor confidence in depository institutions.

These events have led to a greater focus by institutions, investors and regulators on the on-balance sheet liquidity of and funding sources for financial institutions, the composition of its deposits, including the amount of uninsured deposits, the amount of accumulated other comprehensive loss, capital levels and interest rate risk management. If we are unable to adequately manage our liquidity, deposits, capital levels and interest rate risk, it may have a material adverse effect on our financial condition and results of operations.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information on repurchases by the Corporation of its common stock under the Corporation's Board approved program.

ISSUER PURCHASES OF EQUITY SECURITIES
Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs
January 1 – 31, 2023	—	$	—	—	1,229,174
February 1 – 28, 2023	—	—		—	1,229,174
March 1 – 31, 2023	—	—		—	1,229,174
Total	—	$	—	—

1.On May 27, 2015, the Corporation's Board of Directors approved the repurchase of 1,000,000 shares, or approximately 5% of the Corporation's common stock outstanding as of May 27, 2015. On October 26, 2022, the Corporation's Board of Directors approved the repurchase of 1,000,000 additional shares, or approximately 3.4% of the Corporation's common stock outstanding as of September 30, 2022. The stock repurchase plans do not include normal treasury activity such as purchases to fund the dividend reinvestment, employee stock purchase and equity compensation plans. The plans have no scheduled expiration date and the Board of Directors has the right to suspend or discontinue the plans at any time.

In addition to the repurchases disclosed above, participants in the Corporation's stock-based incentive plans may have shares withheld to cover income taxes upon the vesting of restricted stock awards and may use a stock swap to exercise stock options. Shares withheld to cover income taxes upon the vesting of restricted stock awards and stock swaps to exercise stock options are repurchased pursuant to the terms of the applicable plan and not under the Corporation's share repurchase program. Shares repurchased pursuant to these plans during the three months ended March 31, 2023 were as follows:

Period	Total Number of Shares Purchased	Average Price Paid per Share
January 1 – 31, 2023	—	$	—
February 1 – 28, 2023	—	—
March 1 – 31, 2023	—	—
Total	—	$	—

Item 3.    Defaults Upon Senior Securities

None.

Item 4.    Mine Safety Disclosures

Not Applicable.

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 Item 5.    Other Information

None.

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Item 6.    Exhibits

 

a.	Exhibits
	Exhibit 3.1	Amended and Restated Articles of Incorporation are incorporated by reference to Exhibit 3.1 of Form 10-K, filed with the SEC on February 28, 2019.
	Exhibit 3.2	Amended By-Laws are incorporated by reference to Exhibit 3.2 of Form 8-K, filed with the SEC on April 27, 2022.
	Exhibit 31.1	Certification of Jeffrey M. Schweitzer, President and Chief Executive Officer of the Corporation, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.
	Exhibit 31.2	Certification of Brian J. Richardson, Senior Executive Vice President and Chief Financial Officer of the Corporation, pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.
	Exhibit 32.1	Certification of Jeffrey M. Schweitzer, President and Chief Executive Officer of the Corporation, pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002.
	Exhibit 32.2	Certification of Brian J. Richardson, Senior Executive Vice President and Chief Financial Officer of the Corporation, pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002.
	Exhibit 101	The following financial statements from the Corporation's Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Income, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Changes in Shareholders' Equity, (v) Condensed Consolidated Statements of Cash Flows, and (vi) Notes to the Condensed Unaudited Consolidated Financial Statements, tagged as blocks of text and including detailed tags.
	Exhibit 104	The cover page from the Corporation's Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, formatted in Inline XBRL.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

	Univest Financial Corporation
	(Registrant)
Date: May 2, 2023	/s/ Jeffrey M. Schweitzer
	Jeffrey M. Schweitzer President and Chief Executive Officer (Principal Executive Officer)
Date: May 2, 2023	/s/ Brian J. Richardson
	Brian J. Richardson Senior Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Jeffrey M. Schweitzer, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Univest Financial Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: May 2, 2023

/s/ Jeffrey M. Schweitzer

Jeffrey M. Schweitzer

President and Chief Executive Officer
(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Brian J. Richardson, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Univest Financial Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: May 2, 2023

/s/ Brian J. Richardson

Brian J. Richardson

Senior Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Univest Financial Corporation on Form 10-Q for the period ended March 31, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Corporation.

A signed original of this written statement required by Section 906 has been provided to Univest Financial Corporation and will be retained by Univest Financial Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

/s/ Jeffrey M. Schweitzer

Jeffrey M. Schweitzer

President and Chief Executive Officer
(Principal Executive Officer)

May 2, 2023

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Univest Financial Corporation on Form 10-Q for the period ended March 31, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Corporation.

A signed original of this written statement required by Section 906 has been provided to Univest Financial Corporation and will be retained by Univest Financial Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

/s/ Brian J. Richardson

Brian J. Richardson

Senior Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)

May 2, 2023

XML

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 01, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	0-7617
Entity Registrant Name	UNIVEST FINANCIAL CORPORATION
Entity Incorporation, State or Country Code	PA
Entity Tax Identification Number	23-1886144
Entity Address, Address Line One	14 North Main Street
Entity Address, City or Town	Souderton
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	18964
City Area Code	215
Local Phone Number	721-2400
Title of 12(b) Security	Common Stock, $5 par value
Trading Symbol	UVSP
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		29,429,373
Entity Central Index Key	0000102212
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
ASSETS
Cash and due from banks	$ 71,215	$ 84,176
Interest-earning deposits with other banks	67,109	68,623
Cash and cash equivalents	138,324	152,799
Investment securities held-to-maturity (fair value $133,147 and $134,068 at March 31, 2023 and December 31, 2022, respectively)	151,347	154,727
Investment securities available-for-sale (amortized cost $414,118 and $402,111, net of allowance for credit losses of $1,432 and $1,140 at March 31, 2023 and December 31, 2022, respectively)	367,656	350,256
Investments in equity securities	3,105	2,579
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost	43,792	33,841
Loans held for sale	5,425	5,037
Loans and leases receivable, net of deferred income	6,239,804	6,123,230
Less: Allowance for credit losses, loans and leases	(80,034)	(79,004)
Net loans and leases held for investment	6,159,770	6,044,226
Premises and equipment, net	52,334	50,939
Operating lease right-of-use assets	31,663	30,059
Goodwill	175,510	175,510
Other intangibles, net of accumulated amortization	11,044	11,384
Bank owned life insurance	128,926	120,297
Accrued interest receivable and other assets	90,095	90,362
Total assets	7,358,991	7,222,016
LIABILITIES
Noninterest-bearing deposits	1,799,225	2,047,263
Interest-bearing deposits	4,035,432	3,866,263
Deposits, Total	5,834,657	5,913,526
Short-term borrowings	271,881	197,141
Long-term debt	220,000	95,000
Subordinated notes	148,385	148,260
Operating lease liabilities	34,846	33,153
Accrued interest payable and other liabilities	50,726	58,436
Total liabilities	6,560,495	6,445,516
SHAREHOLDERS' EQUITY
Common stock, $5 par value: 48,000,000 shares authorized at March 31, 2023 and December 31, 2022; 31,556,799 shares issued at March 31, 2023 and December 31, 2022; 29,427,696 and 29,271,915 shares outstanding at March 31, 2023 and December 31, 2022, respectively	157,784	157,784
Additional paid-in capital	298,167	300,808
Retained earnings	443,493	428,637
Accumulated other comprehensive loss, net of tax benefit	(55,550)	(62,104)
Treasury stock, at cost; 2,129,103 and 2,284,884 shares at March 31, 2023 and December 31, 2022, respectively	(45,398)	(48,625)
Total shareholders’ equity	798,496	776,500
Total liabilities and shareholders’ equity	$ 7,358,991	$ 7,222,016

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Investment securities held-to-maturity (fair value $133,147 and $134,068 at March 31, 2023 and December 31, 2022, respectively)	$ 133,147	$ 134,068
Investment securities available-for-sale (amortized cost $414,118 and $402,111, net of allowance for credit losses of $1,432 and $1,140 at March 31, 2023 and December 31, 2022, respectively)	414,118	402,111
Allowance for credit losses	$ 1,432	$ 1,140
Common stock, par value	$ 5	$ 5
Common stock, shares authorized	48,000,000	48,000,000
Common stock, shares issued	31,556,799	31,556,799
Common stock, shares outstanding	29,427,696	29,271,915
Treasury stock, shares	2,129,103	2,284,884

XML

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Interest income
Interest and fees on loans and leases	$ 78,655	$ 48,106
Interest and dividends on investment securities:
Taxable	3,495	2,365
Exempt from federal income taxes	15	15
Interest on deposits with other banks	479	357
Interest and dividends on other earning assets	609	355
Total interest income	83,253	51,198
Interest expense
Interest on deposits	18,336	2,891
Interest on short-term borrowings	2,728	2
Interest on long-term debt and subordinated notes	2,872	1,645
Total interest expense	23,936	4,538
Net interest income	59,317	46,660
Provision (reversal of provision) for credit losses	3,387	(3,450)
Net interest income after provision for credit losses	55,930	50,110
Disaggregation of Revenue [Line Items]
Insurance commission and fee income	6,487	5,570
Bank owned life insurance income	767	699
Net gain on sales of investment securities	0	30
Net gain on mortgage banking activities	625	1,929
Other income	471	728
Noninterest income	19,680	20,470
Noninterest expense
Salaries, benefits and commissions	31,014	28,245
Net occupancy	2,727	2,716
Equipment	993	982
Data processing	4,029	3,567
Professional fees	1,941	2,138
Marketing and advertising	371	425
Deposit insurance premiums	1,101	893
Intangible expenses	253	341
Other expense	7,100	6,105
Total noninterest expense	49,529	45,412
Income before income taxes	26,081	25,168
Income tax expense	5,047	4,851
Net income	$ 21,034	$ 20,317
Earnings Per Share [Abstract]
Basic (in dollars per share)	$ 0.72	$ 0.69
Diluted (in dollars per share)	$ 0.71	$ 0.68
Trust fee income
Disaggregation of Revenue [Line Items]
Noninterest income	$ 1,955	$ 2,102
Service charges on deposit accounts
Disaggregation of Revenue [Line Items]
Noninterest income	1,547	1,504
Investment advisory commission and fee income
Disaggregation of Revenue [Line Items]
Noninterest income	4,752	5,152
Other service fee income
Disaggregation of Revenue [Line Items]
Noninterest income	$ 3,076	$ 2,756

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Before Tax Amount
Income (loss) before tax amount		$ 26,081	$ 25,168
Net unrealized gains (losses) on available-for-sale investment securities, before tax amount
Net unrealized holding gains (losses) arising during the period		5,393	(20,369)
Provision for credit losses		292	346
Less: reclassification adjustment for net gains on sales realized in net income	[1]	0	(30)
Other comprehensive income (loss), securities, available-for-sale, adjustment, before tax		5,685	(20,053)
Net unrealized gains (losses) on interest rate swaps used in cash flow hedges, before tax amount
Net unrealized holding gains arising during the period		1,306	76
Less: reclassification adjustment for net losses realized in net income (2)	[2]	1,060	68
Total net unrealized gains on interest rate swaps used in cash flow hedges		2,366	144
Defined benefit pension plans, Before Tax Amount
Amortization of net actuarial loss included in net periodic pension costs	[3]	246	218
Total defined benefit pension plans		246	218
Other comprehensive income (loss), before tax amount		8,297	(19,691)
Total comprehensive income (loss), before tax amount		34,378	5,477
Tax Expense (Benefit)
Income tax expense		5,047	4,851
Net unrealized gains (losses) on available-for-sale investment securities, tax expense (benefit)
Other comprehensive income (loss), securities, available-for-sale, unrealized holding gain (loss) arising during period, tax		1,133	(4,278)
(Reversal of provision) provision for credit losses, tax		61	73
Less: reclassification adjustment for net gains on sales realized in net income	[1]	0	(6)
Total net unrealized gains (losses) on available-for-sale investment securities		1,194	(4,211)
Net unrealized gains (losses) on interest rate swaps used in cash flow hedges, tax expense (benefit)
Net unrealized holding gains arising during the period		274	16
Less: reclassification adjustment for net losses realized in net income (2)	[2]	223	14
Total net unrealized gains on interest rate swaps used in cash flow hedges		497	30
Defined benefit pension plans, tax expense (benefit)
Amortization of net actuarial loss included in net periodic pension costs	[3]	52	46
Other comprehensive (income) loss, defined benefit plan, after reclassification adjustment, tax		52	46
Other comprehensive income (loss), tax expense (benefit)		1,743	(4,135)
Total comprehensive income (loss), tax expense (benefit)		6,790	716
Net of Tax Amount
Net income		21,034	20,317
Net unrealized gains (losses) on available-for-sale investment securities, net of tax amount
Net unrealized holding gains (losses) arising during the period		4,260	(16,091)
Provision for credit losses		(231)	(273)
Less: reclassification adjustment for net gains on sales realized in net income	[1]	0	(24)
Other comprehensive income (loss), securities, available-for-sale, adjustment, after tax		4,491	(15,842)
Net unrealized gains (losses) on interest rate swaps used in cash flow hedges, net of tax amount
Net unrealized holding gains arising during the period		1,032	60
Less: reclassification adjustment for net losses realized in net income (2)	[2]	837	54
Total net unrealized gains on interest rate swaps used in cash flow hedges		1,869	114
Defined benefit pension plans, net of tax amount
Amortization of net actuarial loss included in net periodic pension costs	[3]	194	172
Other comprehensive (income) loss, defined benefit plan, after reclassification adjustment, after tax		194	172
Other comprehensive income (loss), net of tax amount		6,554	(15,556)
Total comprehensive income (loss), net of tax amount		$ 27,588	$ 4,761

[1] (1) Included in net gain on sales of investment securities on the condensed consolidated statements of income (before tax amount).

[2] (2) Included in interest expense on demand deposits on the condensed consolidated statements of income (before tax amount).

[3] (3) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (before tax amount). See Note 8, "Retirement Plans and Other Postretirement Benefits" for additional details. Note: See accompanying notes to the unaudited condensed consolidated financial statements.

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Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive (Loss) Income [Member]	Treasury Stock [Member]
Beginning balance at Dec. 31, 2021	$ 773,794	$ 157,784	$ 299,181	$ 375,124	$ (16,353)	$ (41,942)
Beginning balance, shares at Dec. 31, 2021		29,500,542
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	20,317			20,317
Other comprehensive income, net of income tax	(15,556)				(15,556)
Cash dividends declared	(5,905)			(5,905)
Stock-based compensation	869		1,073	(204)		0
Stock issued under dividend reinvestment and employee stock purchase plans	(623)		(59)			(564)
Stock issued under dividend reinvestment and employee stock purchase plans, shares		21,843
Vesting of restricted stock units, net of shares withheld to cover taxes	(863)		(2,418)			1,555
Vesting of restricted stock unit awards, shares		88,259
Exercise of stock options	576		50			526
Shares under option, exercised		25,781
Ending balance at Mar. 31, 2022	$ 773,855	$ 157,784	297,945	389,332	(31,909)	(39,297)
Ending balance, shares at Mar. 31, 2022		29,636,425
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared, per share	$ 0.20
Beginning balance at Dec. 31, 2022	$ 776,500	$ 157,784	300,808	428,637	(62,104)	(48,625)
Beginning balance, shares at Dec. 31, 2022		29,271,915
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	21,034			21,034
Other comprehensive income, net of income tax	6,554				6,554
Cash dividends declared	(6,151)			(6,151)
Stock-based compensation	1,030		1,057	(27)
Stock issued under dividend reinvestment and employee stock purchase plans	(662)		(29)			(633)
Stock issued under dividend reinvestment and employee stock purchase plans, shares		25,344
Vesting of restricted stock units, net of shares withheld to cover taxes	(1,207)		(3,713)			2,506
Vesting of restricted stock unit awards, shares		126,270
Exercise of stock options	$ 74		(14)			88
Shares under option, exercised	4,167	4,167
Ending balance at Mar. 31, 2023	$ 798,496	$ 157,784	$ 298,167	$ 443,493	$ (55,550)	$ (45,398)
Ending balance, shares at Mar. 31, 2023		29,427,696
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared, per share	$ 0.21

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net income	$ 21,034	$ 20,317
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (reversal of provision) for credit losses	3,387	(3,450)
Depreciation of premises and equipment	1,181	1,101
Net amortization of investment securities premiums and discounts	264	472
Net gain on sales of investment securities	0	(30)
Net gain on mortgage banking activities	(625)	(1,929)
Bank owned life insurance income	(767)	(699)
Stock-based compensation	1,110	934
Intangible expenses	253	341
Other adjustments to reconcile net income to cash used in operating activities	(32)	(910)
Originations of loans held for sale	(28,043)	(73,541)
Proceeds from the sale of loans held for sale	28,430	82,616
Contributions to pension and other postretirement benefit plans	(62)	(63)
(Increase) decrease in accrued interest receivable and other assets	(1,878)	4,316
Decrease in accrued interest payable and other liabilities	(3,512)	(5,535)
Net cash provided by operating activities	20,740	23,940
Cash flows from investing activities:
Proceeds from sale of premises and equipment	5	6,170
Purchases of premises and equipment	(2,590)	(676)
Proceeds from maturities, calls and principal repayments of securities held-to-maturity	3,284	14,335
Proceeds from maturities, calls and principal repayments of securities available-for-sale	6,940	8,501
Proceeds from sales of securities available-for-sale	0	1,530
Purchases of investment securities held-to-maturity	0	(3,936)
Purchases of investment securities available-for-sale	(19,129)	(63,634)
Proceeds from sales of money market mutual funds	10	2,508
Purchases of money market mutual funds	(605)	(2,077)
Net (increase) decrease in other investments	(9,951)	1,856
Proceeds from sale of loans originally held-for-investment	175	0
Net increase in loans and leases	(119,332)	(90,783)
Proceeds from sales of other real estate owned	260	0
Purchases of bank owned life insurance	(7,862)	0
Net cash used in investing activities	(148,795)	(126,206)
Cash flows from financing activities:
Net decrease in deposits	(78,876)	(7,200)
Net increase (decrease) in short-term borrowings	74,740	(1,130)
Proceeds from issuance of long-term debt	150,000	0
Repayment of long-term debt	(25,000)	0
Payment of contingent consideration on acquisitions	(635)	0
Payment, Tax Withholding, Share-based Payment Arrangement	(1,207)	(863)
Stock issued under dividend reinvestment and employee stock purchase plans	662	623
Proceeds from exercise of stock options	74	576
Cash dividends paid	(6,178)	(6,109)
Net cash provided by (used in) financing activities	113,580	(14,103)
Net decrease in cash and cash equivalents	(14,475)	(116,369)
Cash and cash equivalents at beginning of year	152,799	890,150
Cash and cash equivalents at end of period	138,324	773,781
Supplemental disclosures of cash flow information:
Cash paid for interest	21,927	5,559
Cash paid for income taxes, net of refunds	65	28
Transfer of loans to loans held for sale	$ 175	$ 0

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Univest Financial Corporation (the Corporation) and its wholly owned subsidiaries. The Corporation’s direct subsidiary is Univest Bank and Trust Co. (the Bank). All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to the rules and regulations for interim financial information. The accompanying unaudited consolidated financial statements reflect all adjustments, which are of a normal recurring nature and are, in the opinion of management, necessary for a fair presentation of the financial statements for the interim periods presented. Certain prior period amounts have been reclassified to conform to the current period presentation. Operating results for the three-month period ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ended December 31, 2023 or for any other period. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and the notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on February 24, 2023.

Use of Estimates

The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes include the fair value measurement of investment securities available-for-sale and the determination of the allowance for credit losses.

Loans

A loan is classified as a modified loan to a borrower experiencing financial difficulty when a contractual loan modification in the form of principal forgiveness, an interest rate reduction, an other-than-significant payment delay or a term extension (or a combination thereof) has been granted to an existing borrower experiencing financial difficulties. The goal when modifying a credit is to establish a reasonable period of time to provide cash flow relief to customers experiencing cash flow difficulties. Accruing modified loans to borrowers experiencing financial difficulty are primarily comprised of loans on which interest is being accrued under the modified terms, and the loans are current or less than 90 days past due.

Loans and Leases - Prior to ASU No. 2022-02 Adoption

The Corporation adopted ASU No. 2022-02 effective January 1, 2023. The following section was carried forward from the Annual Report of Form 10-K for the year ended December 31, 2022.

A loan or lease is classified as a troubled debt restructuring when a concession has been granted to an existing borrower experiencing financial difficulties. The Corporation grants concessions to existing borrowers primarily related to extensions of interest-only payment periods and an occasional payment modification. These modifications typically are for up to one year. The goal when restructuring a credit is to establish a reasonable period of time to provide cash flow relief to customers experiencing cash flow difficulties. Accruing troubled debt restructured loans are primarily comprised of loans on which interest is being accrued under the restructured terms, and the loans are current or less than 90 days past due.

Accounting Pronouncements Adopted in 2023

In March 2022, the FASB issued ASU No. 2022-02, "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted CECL and enhance the disclosure requirements for modifications of receivables made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current period gross write-offs by year of origination for financing receivables and net investment in leases in the existing vintage disclosures. This ASU became

effective on January 1, 2023 for the Corporation. The adoption of this ASU resulted in updated disclosures within our financial statements but otherwise did not have a material impact on the Corporation's financial statements.

Recent Accounting Pronouncements Yet to Be Adopted

In March 2023, the FASB issued ASU No. 2023-02, "Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force)". The ASU allows entities to elect the proportional amortization method, on a tax-credit-program-by-tax-credit-program basis, for all equity investments in tax credit programs meeting the eligibility criteria in Accounting Standards Codification (ASC) 323-740-25-1. While the ASU does not significantly alter the existing eligibility criteria, it does provide clarifications to address existing interpretive issues. It also prescribes specific information reporting entities must disclose about tax credit investments each period. This ASU is effective for reporting periods beginning after December 15, 2023, for public business entities, or January 1, 2024 for the Corporation. The Corporation does not expect the adoption of this ASU to have a material impact on the Corporation's financial statements.

XML

Earnings per Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Earnings Per Share

Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share. For additional information on the calculation of basic and diluted earnings per share, see Note 1, "Summary of Significant Accounting Policies - Earnings per Share" of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2022.

	Three Months Ended
	March 31,
(Dollars and shares in thousands, except per share data)	2023		2022
Numerator for basic and diluted earnings per share—net income available to common shareholders	$	21,034	$	20,317
Denominator for basic earnings per share—weighted-average shares outstanding	29,312		29,542
Effect of dilutive securities—employee stock options and restricted stock units	194		196
Denominator for diluted earnings per share—adjusted weighted-average shares outstanding	29,506		29,738
Basic earnings per share	$	0.72	$	0.69
Diluted earnings per share	$	0.71	$	0.68
Average antidilutive options and restricted stock units excluded from computation of diluted earnings per share	229		249

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Investment Securities

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Investments Securities

Investment Securities

The following table shows the amortized cost, the estimated fair value and the allowance for credit losses of the held-to-maturity securities and available-for-sale securities at March 31, 2023 and December 31, 2022, by contractual maturity within each type:

	At March 31, 2023
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Securities Held-to-Maturity
Residential mortgage-backed securities:
After 1 year to 5 years	$	2,554	$	—	$	(87)			$	2,467
After 5 years to 10 years	7,531		—		(398)		—		7,133
Over 10 years	141,262		—		(17,715)		—		123,547
	151,347		—		(18,200)		—		133,147
Total	$	151,347	$	—	$	(18,200)	$	—	$	133,147
Securities Available-for-Sale
State and political subdivisions:
Within 1 year	$	1,030	$	1	$	—	$	—	$	1,031
After 1 year to 5 years	1,297		—		(31)		—		1,266
	2,327		1		(31)		—		2,297
Residential mortgage-backed securities:
After 1 year to 5 years	784		—		(29)		—		755
After 5 years to 10 years	15,617		—		(1,194)		—		14,423
Over 10 years	301,712		32		(36,128)		—		265,616
	318,113		32		(37,351)		—		280,794
Collateralized mortgage obligations:
After 5 years to 10 years	305		—		(18)		—		287
Over 10 years	2,199		—		(215)		—		1,984
	2,504		—		(233)		—		2,271
Corporate bonds:
Within 1 year	1,500		—		(1)		(1)		1,498
After 1 year to 5 years	29,674		4		(1,163)		(200)		28,315
After 5 years to 10 years	60,000		—		(6,288)		(1,231)		52,481
	91,174		4		(7,452)		(1,432)		82,294
Total	$	414,118	$	37	$	(45,067)	$	(1,432)	$	367,656

	At December 31, 2022
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Securities Held-to-Maturity
Residential mortgage-backed securities:
After 1 year to 5 years	$	1,654	$	—	$	(70)	$	—	$	1,584
After 5 years to 10 years	6,076		—		(342)		—		5,734
Over 10 years	146,997		—		(20,247)		—		126,750
	154,727		—		(20,659)		—		134,068
Total	$	154,727	$	—	$	(20,659)	$	—	$	134,068
Securities Available-for-Sale
State and political subdivisions:
After 1 year to 5 years	$	2,327	$	—	$	(42)	$	—	$	2,285
	2,327		—		(42)		—		2,285
Residential mortgage-backed securities:
After 1 year to 5 years	864		—		(37)		—		827
After 5 years to 10 years	10,399		—		(815)		—		9,584
Over 10 years	294,261		7		(41,291)		—		252,977
	305,524		7		(42,143)		—		263,388
Collateralized mortgage obligations:
After 5 years to 10 years	324		—		(22)		—		302
Over 10 years	2,257		—		(237)		—		2,020
	2,581		—		(259)		—		2,322
Corporate bonds:
Within 1 year	1,000		—		—		—		1,000
After 1 year to 5 years	30,679		3		(1,516)		(152)		29,014
After 5 years to 10 years	60,000		—		(6,765)		(988)		52,247
	91,679		3		(8,281)		(1,140)		82,261
Total	$	402,111	$	10	$	(50,725)	$	(1,140)	$	350,256

Gross unrealized gains and losses on available-for-sale securities are recognized in accumulated other comprehensive income (loss) and changes in the allowance for credit loss are recorded in provision for credit loss expense. Expected maturities may differ from contractual maturities because debt issuers may have the right to call or prepay obligations without call or prepayment penalties and mortgage-backed securities typically prepay at a rate faster than contractually due.

Securities with a carrying value of $327.8 million and $429.4 million at March 31, 2023 and December 31, 2022, respectively, were pledged to secure public funds deposits and other contractual obligations. There were no pledged securities to secure credit derivatives and interest rate swaps at March 31, 2023 or December 31, 2022. See Note 11, "Derivative Instruments and Hedging Activities" for additional information.

The following table presents information related to sales of securities available-for-sale during the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31,
(Dollars in thousands)	2023		2022
Securities available-for-sale:
Proceeds from sales	$	—	$	1,530
Gross realized gains on sales	—		30
Tax expense related to net realized gains on sales	—		6

At March 31, 2023 and December 31, 2022, there were no reportable investments in any single issuer representing more than 10% of shareholders’ equity.

The following table shows the fair value of securities that were in an unrealized loss position for which an allowance for credit losses has not been recorded at March 31, 2023 and December 31, 2022, by the length of time those securities were in a continuous loss position.

	Less than Twelve Months				Twelve Months or Longer				Total
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
At March 31, 2023
Securities Held-to-Maturity
Residential mortgage-backed securities	$	22,966	$	(862)	$	110,181	$	(17,338)	$	133,147	$	(18,200)
Total	$	22,966	$	(862)	$	110,181	$	(17,338)	$	133,147	$	(18,200)
Securities Available-for-Sale
State and political subdivisions	$	—	$	—	$	1,267	$	(31)	$	1,267	$	(31)
Residential mortgage-backed securities	84,540		(4,885)		190,747		(32,466)		275,287		(37,351)
Collateralized mortgage obligations	—		—		2,271		(233)		2,271		(233)
Total	$	84,540	$	(4,885)	$	194,285	$	(32,730)	$	278,825	$	(37,615)
At December 31, 2022
Securities Held-to-Maturity
Residential mortgage-backed securities	$	65,044	$	(5,894)	$	69,024	$	(14,765)	$	134,068	$	(20,659)
Total	$	65,044	$	(5,894)	$	69,024	$	(14,765)	$	134,068	$	(20,659)
Securities Available-for-Sale
State and political subdivisions	$	1,255	$	(42)	$	—	$	—	$	1,255	$	(42)
Residential mortgage-backed securities	128,831		(13,843)		133,902		(28,300)		262,733		(42,143)
Collateralized mortgage obligations	302		(22)		2,020		(237)		2,322		(259)
Corporate bonds	500		(1)		—		—		500		(1)
Total	$	130,888	$	(13,908)	$	135,922	$	(28,537)	$	266,810	$	(42,445)

At March 31, 2023, the fair value of held-to-maturity securities in an unrealized loss position for which an allowance for credit losses has not been recorded was $133.1 million, including unrealized losses of $18.2 million. These holdings were comprised of 84 federal agency mortgage-backed securities, which are U.S. government entities and agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The Corporation did not recognize any credit losses on held-to-maturity debt securities for the three months ended March 31, 2023.

At March 31, 2023, the fair value of available-for-sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded was $278.8 million, including unrealized losses of $37.6 million. These holdings were comprised of (1) 109 federal agency mortgage-backed securities, which are U.S. government entities and agencies and are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses, (2) two collateralized mortgage obligation bonds, (3) one state and political subdivisions bond and (4) one investment grade corporate bond. The Corporation does not intend to sell the securities in an unrealized loss position and is unlikely to be required to sell these securities before a recovery of fair value, which may be maturity. The Corporation concluded that the decline in fair value of these securities was not indicative of a credit loss. Accrued interest receivable on available-for-sale debt securities totaled $1.2 million at March 31, 2023 and is included within Accrued interest receivable and other assets on the condensed consolidated balance sheet. This amount is excluded from the estimate of expected credit losses.

The table below presents a rollforward by major security type for the three months ended March 31, 2023 and March 31, 2022 of the allowance for credit losses on securities available-for-sale.

(Dollars in thousands)	Corporate Bonds
Three months ended March 31, 2023
Securities Available-for-Sale
Beginning balance	$	(1,140)
Change in securities for which a previous expected credit loss was recognized	(292)
Ending balance	$	(1,432)
Three months ended March 31, 2022
Securities Available-for-Sale
Beginning balance	$	(929)
Additions for securities for which no previous expected credit losses were recognized	(45)
Change in securities for which a previous expected credit loss was recognized	(301)
Ending balance	$	(1,275)

At March 31, 2023, the fair value of available-for-sale securities in an unrealized loss position for which an allowance for credit losses has been recorded was $81.3 million, including unrealized losses of $8.9 million, and allowance for credit losses of $1.4 million. These holdings were comprised of 39 investment grade corporate bonds which fluctuate in value based on changes in market conditions. For these securities, fluctuations were primarily due to changes in the interest rate environment. The Corporation does not have the intent to sell these securities and it is not likely that it will be required to sell the securities before their anticipated recovery. The underlying issuers continue to make timely principal and interest payments on the securities.

The Corporation recognized a $69 thousand net loss and a $1 thousand net gain on equity securities during the three months ended March 31, 2023 and 2022, respectively, in other noninterest income. There were no sales of equity securities during the three months ended March 31, 2023 or 2022.

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Loans and Leases

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Loans and Leases

Loans and Leases

Summary of Major Loan and Lease Categories

(Dollars in thousands)	At March 31, 2023		At December 31, 2022
Commercial, financial and agricultural	$	1,032,753	$	1,088,928
Real estate-commercial	3,128,210		3,027,955
Real estate-construction	376,569		381,811
Real estate-residential secured for business purpose	498,505		478,254
Real estate-residential secured for personal purpose	779,557		730,395
Real estate-home equity secured for personal purpose	172,073		176,699
Loans to individuals	28,656		27,873
Lease financings	223,481		211,315
Total loans and leases held for investment, net of deferred income	$	6,239,804	$	6,123,230
Less: Allowance for credit losses, loans and leases	(80,034)		(79,004)
Net loans and leases held for investment	$	6,159,770	$	6,044,226
Imputed interest on lease financings, included in the above table	$	(24,386)	$	(21,932)
Net deferred costs, included in the above table	6,633		6,053
Overdraft deposits included in the above table	154		93

Age Analysis of Past Due Loans and Leases

The following presents, by class of loans and leases held for investment, an aging of past due loans and leases, loans and leases which are current and nonaccrual loans and leases at March 31, 2023 and December 31, 2022:

	Accruing Loans and Leases
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases Held for Investment
At March 31, 2023
Commercial, financial and agricultural	$	1,348	$	—	$	—	$	1,348	$	1,027,982	$	1,029,330	$	3,423	$	1,032,753
Real estate—commercial real estate and construction:
Commercial real estate	328		—		1,195		1,523		3,122,399		3,123,922		4,288		3,128,210
Construction	—		—		—		—		376,186		376,186		383		376,569
Real estate—residential and home equity:
Residential secured for business purpose	308		768		—		1,076		496,670		497,746		759		498,505
Residential secured for personal purpose	1,506		—		—		1,506		776,551		778,057		1,500		779,557
Home equity secured for personal purpose	835		74		—		909		170,216		171,125		948		172,073
Loans to individuals	20		4		47		71		28,585		28,656		—		28,656
Lease financings	1,207		371		754		2,332		221,088		223,420		61		223,481
Total	$	5,552	$	1,217	$	1,996	$	8,765	$	6,219,677	$	6,228,442	$	11,362	$	6,239,804

	Accruing Loans and Leases
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases Held for Investment
At December 31, 2022
Commercial, financial and agricultural	$	1,616	$	343	$	—	$	1,959	$	1,081,897	$	1,083,856	$	5,072	$	1,088,928
Real estate—commercial real estate and construction:
Commercial real estate	3,281		290		20		3,591		3,019,827		3,023,418		4,537		3,027,955
Construction	315		—		—		315		381,496		381,811		—		381,811
Real estate—residential and home equity:
Residential secured for business purpose	375		203		263		841		476,400		477,241		1,013		478,254
Residential secured for personal purpose	4,127		162		319		4,608		723,798		728,406		1,989		730,395
Home equity secured for personal purpose	953		225		—		1,178		174,781		175,959		740		176,699
Loans to individuals	32		153		39		224		27,649		27,873		—		27,873
Lease financings	3,555		341		234		4,130		207,183		211,313		2		211,315
Total	$	14,254	$	1,717	$	875	$	16,846	$	6,093,031	$	6,109,877	$	13,353	$	6,123,230

Nonperforming Loans and Leases

The following presents, by class of loans and leases, nonperforming loans and leases at March 31, 2023 and December 31, 2022.

	At March 31, 2023						At December 31, 2022
(Dollars in thousands)	Nonaccrual Loans and Leases		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Nonperforming Loans and Leases		Nonaccrual Loans and Leases		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Nonperforming Loans and Leases
Commercial, financial and agricultural	$	3,423	$	—	$	3,423	$	5,072	$	—	$	5,072
Real estate—commercial real estate and construction:
Commercial real estate	4,288		1,195		5,483		4,537		20		4,557
Construction	383		—		383		—		—		—
Real estate—residential and home equity:
Residential secured for business purpose	759		—		759		1,013		263		1,276
Residential secured for personal purpose	1,500		—		1,500		1,989		319		2,308
Home equity secured for personal purpose	948		—		948		740		—		740
Loans to individuals	—		47		47		—		39		39
Lease financings	61		754		815		2		234		236
Total	$	11,362	$	1,996	$	13,358	$	13,353	$	875	$	14,228

The following table presents the amortized cost basis of loans and leases held for investment on nonaccrual status and loans and leases held for investment 90 days or more past due and still accruing as of March 31, 2023 and December 31, 2022.

(Dollars in thousands)	Nonaccrual With No ACL		Nonaccrual With ACL		Total Nonaccrual		Loans and Leases 90 Days or more Past Due and Accruing Interest
At March 31, 2023
Commercial, financial and agricultural	$	159	$	3,264	$	3,423	$	—
Real estate-commercial	4,288		—		4,288		1,195
Real estate-construction	383		—		383		—
Real estate-residential secured for business purpose	759		—		759		—
Real estate-residential secured for personal purpose	1,500		—		1,500		—
Real estate-home equity secured for personal purpose	948		—		948		—
Loans to individuals	—		—		—		47
Lease financings	—		61		61		754
Total	$	8,037	$	3,325	$	11,362	$	1,996
At December 31, 2022
Commercial, financial and agricultural	$	225	$	4,847	$	5,072	$	—
Real estate-commercial	4,537		—		4,537		20
Real estate-residential secured for business purpose	1,013		—		1,013		263
Real estate-residential secured for personal purpose	1,989		—		1,989		319
Real estate-home equity secured for personal purpose	740		—		740		—
Loans to individuals	—		—		—		39
Lease financings	—		2		2		234
Total	$	8,504	$	4,849	$	13,353	$	875

For the three months ended March 31, 2023, $6 thousand of interest income was recognized on nonaccrual loans and leases.

The following table presents, by class of loans and leases, the amortized cost basis of collateral-dependent nonaccrual loans and leases and type of collateral as of March 31, 2023 and December 31, 2022.

(Dollars in thousands)	Real Estate		Other (1)		None (2)		Total
At March 31, 2023
Commercial, financial and agricultural	$	3,423	$	—	$	—	$	3,423
Real estate-commercial	4,288		—		—		4,288
Real estate-construction	383		—		—		383
Real estate-residential secured for business purpose	759		—		—		759
Real estate-residential secured for personal purpose	1,500		—		—		1,500
Real estate-home equity secured for personal purpose	948		—		—		948
Lease financings	—		61		—		61
Total	$	11,301	$	61	$	—	$	11,362
(Dollars in thousands)	Real Estate		Other (1)		None (2)		Total
At December 31, 2022
Commercial, financial and agricultural	$	2,743	$	—	$	2,329	$	5,072
Real estate-commercial	4,537		—		—		4,537
Real estate-residential secured for business purpose	1,013		—		—		1,013
Real estate-residential secured for personal purpose	1,989		—		—		1,989
Real estate-home equity secured for personal purpose	740		—		—		740
Lease financings	—		2		—		2
Total	$	11,022	$	2	$	2,329	$	13,353

(1) Collateral consists of business assets, including accounts receivable, personal property and equipment.

(2) Loans fully guaranteed by the SBA or fully reserved given lack of collateral.

Credit Quality Indicators

The Corporation categorizes risk based on relevant information about the ability of the borrower to service their debt. Loans with a relationship balance of less than $1 million are reviewed when necessary based on their performance, primarily when such loans are delinquent. Loans with relationships greater than $1 million are reviewed at least annually. Loan relationships with a higher risk profile or classified as special mention or substandard are reviewed at least quarterly. The Corporation reviews credit quality key risk indicators on at least an annual basis and last completed this review in conjunction with the period ended December 31, 2022. The following is a description of the internal risk ratings and the likelihood of loss related to the credit quality of commercial, financial and agricultural loans, real estate-commercial loans, real estate-construction loans and real estate-residential secured for a business purpose loans.

1.Pass—Loans considered satisfactory with no indications of deterioration

2.Special Mention—Potential weakness that deserves management's close attention

3.Substandard—Well-defined weakness or weaknesses that jeopardize the liquidation of the debt

4.Doubtful—Collection or liquidation in-full, on the basis of current existing facts, conditions and values, highly questionable and improbable

Based on the most recent analysis performed, the following table presents the recorded investment in loans and leases held for investment for commercial, financial and agricultural loans, real estate-commercial loans, real estate-construction loans and real estate-residential secured for a business purpose loans by credit quality indicator at March 31, 2023 and December 31, 2022.

	Term Loans Amortized Cost Basis by Origination Year
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
At March 31, 2023
Commercial, Financial and Agricultural
Risk Rating
1. Pass	$	27,521	$	194,140	$	145,736	$	36,286	$	25,788	$	67,231	$	469,953	$	729	$	967,384
2. Special Mention	—		3,926		21,196		2,362		7,098		—		27,337		—		61,919
3. Substandard	—		—		108		—		589		—		2,753		—		3,450
Total	$	27,521	$	198,066	$	167,040	$	38,648	$	33,475	$	67,231	$	500,043	$	729	$	1,032,753
Current period gross charge-offs	$	—	$	—	$	247	$	23	$	—	$	—	$	2,578	$	—	$	2,848
Real Estate-Commercial
Risk Rating
1. Pass	$	117,401	$	880,556	$	682,078	$	703,079	$	360,218	$	304,672	$	52,553	$	—	$	3,100,557
2. Special Mention	—		854		10,250		5,725		—		2,816		1,771		—		21,416
3. Substandard	—		—		1,949		1,701		—		2,587		—		—		6,237
Total	$	117,401	$	881,410	$	694,277	$	710,505	$	360,218	$	310,075	$	54,324	$	—	$	3,128,210
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	50	$	—	$	—	$	50
Real Estate-Construction
Risk Rating
1. Pass	$	36,683	$	261,911	$	27,799	$	3,949	$	255	$	2,761	$	26,178	$	—	$	359,536
2. Special Mention	—		5,352		—		—		—		—		5,472		—		10,824
3. Substandard	—		380		—		—		5,829		—		—		—		6,209
Total	$	36,683	$	267,643	$	27,799	$	3,949	$	6,084	$	2,761	$	31,650	$	—	$	376,569
Current period gross charge-offs	$	—	$	—	$	—	$	207	$	—	$	—	$	—	$	—	$	207
Real Estate-Residential Secured for Business Purpose
Risk Rating
1. Pass	$	30,786	$	162,069	$	131,702	$	65,443	$	40,142	$	38,726	$	27,696	$	—	$	496,564
2. Special Mention	—		—		—		245		—		934		—		—		1,179
3. Substandard	—		—		211		26		—		488		37		—		762
Total	$	30,786	$	162,069	$	131,913	$	65,714	$	40,142	$	40,148	$	27,733	$	—	$	498,505
Totals By Risk Rating
1. Pass	$	212,391	$	1,498,676	$	987,315	$	808,757	$	426,403	$	413,390	$	576,380	$	729	$	4,924,041
2. Special Mention	—		10,132		31,446		8,332		7,098		3,750		34,580		—		95,338
3. Substandard	—		380		2,268		1,727		6,418		3,075		2,790		—		16,658
Total	$	212,391	$	1,509,188	$	1,021,029	$	818,816	$	439,919	$	420,215	$	613,750	$	729	$	5,036,037
Total current period gross charge-offs	$	—	$	—	$	247	$	230	$	—	$	50	$	2,578	$	—	$	3,105

	Term Loans Amortized Cost Basis by Origination Year
(Dollars in thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
At December 31, 2022
Commercial, Financial and Agricultural
Risk Rating
1. Pass	$	233,064	$	148,033	$	41,091	$	28,269	$	28,209	$	48,631	$	487,818	$	125	$	1,015,240
2. Special Mention	2,732		28,220		9,623		8,104		26		—		19,829		—		68,534
3. Substandard	—		13		—		—		—		—		5,141		—		5,154
Total	$	235,796	$	176,266	$	50,714	$	36,373	$	28,235	$	48,631	$	512,788	$	125	$	1,088,928
Real Estate-Commercial
Risk Rating
1. Pass	$	877,703	$	680,432	$	724,941	$	332,702	$	118,034	$	208,974	$	54,139	$	—	$	2,996,925
2. Special Mention	869		8,173		11,582		944		85		3,002		1,838		—		26,493
3. Substandard	—		—		1,770		—		2,222		495		50		—		4,537
Total	$	878,572	$	688,605	$	738,293	$	333,646	$	120,341	$	212,471	$	56,027	$	—	$	3,027,955
Real Estate-Construction
Risk Rating
1. Pass	$	243,983	$	52,485	$	8,341	$	34,670	$	191	$	442	$	30,223	$	—	$	370,335
2. Special Mention	—		5,781		—		5,695		—		—		—		—		11,476
3. Substandard	—		—		—		—		—		—		—		—		—
Total	$	243,983	$	58,266	$	8,341	$	40,365	$	191	$	442	$	30,223	$	—	$	381,811
Real Estate-Residential Secured for Business Purpose
Risk Rating
1. Pass	$	165,844	$	128,669	$	67,955	$	39,794	$	21,226	$	23,324	$	29,239	$	—	$	476,051
2. Special Mention	—		—		247		—		—		941		—		—		1,188
3. Substandard	—		211		27		—		38		594		145		—		1,015
Total	$	165,844	$	128,880	$	68,229	$	39,794	$	21,264	$	24,859	$	29,384	$	—	$	478,254
Totals By Risk Rating
1. Pass	$	1,520,594	$	1,009,619	$	842,328	$	435,435	$	167,660	$	281,371	$	601,419	$	125	$	4,858,551
2. Special Mention	3,601		42,174		21,452		14,743		111		3,943		21,667		—		107,691
3. Substandard	—		224		1,797		—		2,260		1,089		5,336		—		10,706
Total	$	1,524,195	$	1,052,017	$	865,577	$	450,178	$	170,031	$	286,403	$	628,422	$	125	$	4,976,948

The Corporation had no loans with a risk rating of Doubtful included within recorded investment in loans and leases held for investment at March 31, 2023 or December 31, 2022.

The Corporation monitors the credit risk profile by payment activity for the following classifications of loans and leases: real estate-residential secured for personal purpose loans, real estate-home equity secured for personal purpose loans, loans to individuals and lease financings. The Corporation reviews credit quality indicators on at least an annual basis and last completed this review in conjunction with the period ended December 31, 2022. Loans and leases past due 90 days or more and loans and leases on nonaccrual status are considered nonperforming. Nonperforming loans and leases are reviewed monthly. Performing loans and leases are reviewed only if the loan becomes 60 days or more past due.

Based on the most recent analysis performed, the following table presents the recorded investment in loans and leases held for investment for real estate-residential secured for personal purpose loans, real estate-home equity secured for personal purpose loans, loans to individuals and lease financings by credit quality indicator at March 31, 2023 and December 31, 2022.

	Term Loans Amortized Cost Basis by Origination Year
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
At March 31, 2023
Real Estate-Residential Secured for Personal Purpose
Payment Performance
1. Performing	$	45,329	$	265,019	$	213,723	$	138,347	$	23,519	$	92,037	$	83	$	778,057
2. Nonperforming	—		158		47		—		309		986		—		1,500
Total	$	45,329	$	265,177	$	213,770	$	138,347	$	23,828	$	93,023	$	83	$	779,557
Real Estate-Home Equity Secured for Personal Purpose
Payment Performance
1. Performing	$	219	$	2,761	$	614	$	467	$	186	$	1,743	$	165,135	$	171,125
2. Nonperforming	—		—		—		—		—		45		903		948
Total	$	219	$	2,761	$	614	$	467	$	186	$	1,788	$	166,038	$	172,073
Loans to Individuals
Payment Performance
1. Performing	$	502	$	1,317	$	763	$	494	$	197	$	1,359	$	23,977	$	28,609
2. Nonperforming	—		—		—		—		—		47		—		47
Total	$	502	$	1,317	$	763	$	494	$	197	$	1,406	$	23,977	$	28,656
Current period gross charge-offs	$	38	$	19	$	—	$	5	$	—	$	—	$	43	$	105
Lease Financings
Payment Performance
1. Performing	$	31,451	$	88,155	$	56,656	$	29,682	$	12,776	$	3,946	$	—	$	222,666
2. Nonperforming	—		654		111		18		4		28		—		815
Total	$	31,451	$	88,809	$	56,767	$	29,700	$	12,780	$	3,974	$	—	$	223,481
Current period gross charge-offs	$	—	$	—	$	—	$	20	$	—	$	—	$	—	$	20
Totals by Payment Performance
1. Performing	$	77,501	$	357,252	$	271,756	$	168,990	$	36,678	$	99,085	$	189,195	$	1,200,457
2. Nonperforming	—		812		158		18		313		1,106		903		3,310
Total	$	77,501	$	358,064	$	271,914	$	169,008	$	36,991	$	100,191	$	190,098	$	1,203,767
Total current period gross charge-offs	$	38	$	19	$	—	$	25	$	—	$	—	$	43	$	125

	Term Loans Amortized Cost Basis by Origination Year
(Dollars in thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
At December 31, 2022
Real Estate-Residential Secured for Personal Purpose
Payment Performance
1. Performing	$	258,293	$	211,638	$	140,822	$	23,827	$	18,273	$	75,126	$	108	$	728,087
2. Nonperforming	—		48		466		319		306		1,169		—		2,308
Total	$	258,293	$	211,686	$	141,288	$	24,146	$	18,579	$	76,295	$	108	$	730,395
Real Estate-Home Equity Secured for Personal Purpose
Payment Performance
1. Performing	$	2,945	$	642	$	491	$	192	$	205	$	1,565	$	169,870	$	175,910
2. Nonperforming	—		—		—		—		157		3		629		789
Total	$	2,945	$	642	$	491	$	192	$	362	$	1,568	$	170,499	$	176,699
Loans to Individuals
Payment Performance
1. Performing	$	1,581	$	857	$	554	$	247	$	138	$	1,340	$	23,117	$	27,834
2. Nonperforming	—		—		—		—		—		39		—		39
Total	$	1,581	$	857	$	554	$	247	$	138	$	1,379	$	23,117	$	27,873
Lease Financings
Payment Performance
1. Performing	$	94,430	$	61,680	$	33,468	$	15,164	$	5,569	$	768	$	—	$	211,079
2. Nonperforming	41		56		17		21		90		11		—		236
Total	$	94,471	$	61,736	$	33,485	$	15,185	$	5,659	$	779	$	—	$	211,315
Totals by Payment Performance
1. Performing	$	357,249	$	274,817	$	175,335	$	39,430	$	24,185	$	78,799	$	193,095	$	1,142,910
2. Nonperforming	41		104		483		340		553		1,222		629		3,372
Total	$	357,290	$	274,921	$	175,818	$	39,770	$	24,738	$	80,021	$	193,724	$	1,146,282

The Corporation had no revolving loans which were converted to term loans included within recorded investment in loans and leases held for investment at March 31, 2023 or December 31, 2022.

Allowance for Credit Losses on Loans and Leases and Recorded Investment in Loans and Leases

The following presents, by portfolio segment, a summary of the activity in the allowance for credit losses, loans and leases, for the three months ended March 31, 2023 and 2022. There were no changes to the reasonable and supportable forecast period, the reversion period, or any significant methodology changes during the three months ended March 31, 2023.

(Dollars in thousands)	Beginning balance		Provision (reversal of provision) for credit losses		Charge-offs		Recoveries		Ending balance
Three Months Ended March 31, 2023
Allowance for credit losses, loans and leases:
Commercial, financial and agricultural	$	16,920	$	547	$	(2,848)	$	106	$	14,725
Real estate-commercial	41,673		1,524		(50)		3		43,150
Real estate-construction	4,952		(64)		(207)		—		4,681
Real estate-residential secured for business purpose	7,054		1,125		—		181		8,360
Real estate-residential secured for personal purpose	3,685		1,327		—		—		5,012
Real estate-home equity secured for personal purpose	1,287		(66)		—		50		1,271
Loans to individuals	351		113		(105)		16		375
Lease financings	3,082		(634)		(20)		32		2,460
Unallocated	—		—		N/A		N/A		—
Total	$	79,004	$	3,872	$	(3,230)	$	388	$	80,034
Three Months Ended March 31, 2022
Allowance for credit losses, loans and leases:
Commercial, financial and agricultural	$	13,538	$	(1,672)	$	(214)	$	189	$	11,841
Real estate-commercial	41,095		(669)		—		—		40,426
Real estate-construction	4,575		(941)		—		—		3,634
Real estate-residential secured for business purpose	6,482		(328)		—		48		6,202
Real estate-residential secured for personal purpose	2,403		189		—		—		2,592
Real estate-home equity secured for personal purpose	1,028		(53)		—		1		976
Loans to individuals	363		57		(75)		24		369
Lease financings	2,290		5		(59)		10		2,246
Unallocated	150		(150)		N/A		N/A		—
Total	$	71,924	$	(3,562)	$	(348)	$	272	$	68,286

N/A – Not applicable

The following presents, by portfolio segment, the balance in the ACL on loans and leases disaggregated on the basis of whether the loan or lease was measured for credit loss as a pooled loan or lease or if it was individually analyzed for a reserve at March 31, 2023 and 2022:

	Allowance for credit losses, loans and leases						Loans and leases held for investment
(Dollars in thousands)	Ending balance: individually analyzed		Ending balance: pooled		Total ending balance		Ending balance: individually analyzed		Ending balance: pooled		Loans measured at fair value		Total ending balance
At March 31, 2023
Commercial, financial and agricultural	$	912	$	13,813	$	14,725	$	3,423	$	1,029,330	$	—	$	1,032,753
Real estate-commercial	—		43,150		43,150		4,288		3,123,922		—		3,128,210
Real estate-construction	—		4,681		4,681		383		376,186		—		376,569
Real estate-residential secured for business purpose	—		8,360		8,360		759		497,746		—		498,505
Real estate-residential secured for personal purpose	—		5,012		5,012		1,500		778,057		—		779,557
Real estate-home equity secured for personal purpose	—		1,271		1,271		948		171,125		—		172,073
Loans to individuals	—		375		375		—		28,656		—		28,656
Lease financings	—		2,460		2,460		—		223,481		—		223,481
Total	$	912	$	79,122	$	80,034	$	11,301	$	6,228,503	$	—	$	6,239,804
At March 31, 2022
Commercial, financial and agricultural	$	—	$	11,841	$	11,841	$	448	$	942,335	$	—	$	942,783
Real estate-commercial	954		39,472		40,426		26,411		2,790,313		13		2,816,737
Real estate-construction	—		3,634		3,634		—		285,083		—		285,083
Real estate-residential secured for business purpose	—		6,202		6,202		1,120		411,366		—		412,486
Real estate-residential secured for personal purpose	—		2,592		2,592		2,259		566,476		—		568,735
Real estate-home equity secured for personal purpose	—		976		976		489		159,645		—		160,134
Loans to individuals	—		369		369		—		26,249		—		26,249
Lease financings	—		2,246		2,246		—		188,579		—		188,579
Total	$	954	$	67,332	$	68,286	$	30,727	$	5,370,046	$	13	$	5,400,786

N/A – Not applicable

Modified Loans to Borrowers Experiencing Financial Difficulty

The following presents, by class of loans, information regarding accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three months ended March 31, 2023.

	Three Months Ended March 31, 2023
(Dollars in thousands)	Number of Loans	Amortized Cost Basis*		% of Total Class of Financing Receivable		Related Reserve
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty:
Real estate—construction	1	$	5,829	1.2	%	$	16
Total	1	$	5,829			$	16
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty:
Commercial, financial and agricultural	1	$	2,620	0.3	%	$	538
Total	1	$	2,620			$	538

*Amortized cost excludes $26 thousand of accrued interest receivable on modified loans.

The following presents, by class of loans, information regarding the financial effect on accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three months ended March 31, 2023.

	Term Extension
(Dollars in thousands)	No. of Loans	Financial Effect
Three Months Ended March 31, 2023
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty:
Real estate—construction	1	Extended the loan maturity by 8 months to allow time for the construction to be completed. 3 months of interest payments were capitalized to the loan balance.
Total	1
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty:
Commercial, financial and agricultural	1	Extended the loan maturity by 10 months in order to provide time to borrower to liquidate collateral for loan payoff.
Total	1

There were no accruing or nonaccrual modified loans to borrowers experiencing financial difficulty for which there were payment defaults after the modification date for the three months ended March 31, 2023.

The following presents, by class of loans, the amortized cost and payment status of accruing and nonaccrual modified loans to borrowers experiencing financial difficulty at March 31, 2023.

	At March 31, 2023
(Dollars in thousands)	Current		30-89 Days Past Due		90 Days or More Past Due		Total
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty:
Real estate—construction	$	5,829	$	—	$	—	$	5,829
Total	$	5,829	$	—	$	—	$	5,829
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty:
Commercial, financial and agricultural	$	2,620	$	—	$	—	$	2,620
Total	$	2,620	$	—	$	—	$	2,620

The following presents the amount of consumer mortgages collateralized by residential real estate property that were in the process of foreclosure at March 31, 2023 or December 31, 2022.

(Dollars in thousands)	At March 31, 2023		At December 31, 2022
Real estate-residential secured for personal purpose	$	2,812	$	822
Real estate-home equity secured for personal purpose	71		72
Total	$	2,883	$	894

There was no foreclosed residential real estate property included in other real estate owned at March 31, 2023 or December 31, 2022.

Lease Financings

The following presents the schedule of minimum lease payments receivable:

(Dollars in thousands)	At March 31, 2023		At December 31, 2022
2023 (excluding the three months ended March 31, 2023)	$	74,280	$	75,900
2024	66,701		61,793
2025	49,414		45,738
2026	33,086		29,902
2027	14,603		13,091
Thereafter	5,421		2,552
Total future minimum lease payments receivable	243,505		228,976
Plus: Unguaranteed residual	1,212		1,387
Plus: Initial direct costs	3,150		2,884
Less: Imputed interest	(24,386)		(21,932)
Lease financings	$	223,481	$	211,315

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Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The Corporation has goodwill from acquisitions which is deemed to be an indefinite intangible asset and is not amortized. Changes in the carrying amount of the Corporation's goodwill by business segment for the three months ended March 31, 2023 were as follows:

(Dollars in thousands)	Banking		Wealth Management		Insurance		Consolidated
Balance at December 31, 2022	$	138,476	$	15,434	$	21,600	$	175,510
Addition to goodwill from acquisitions	—		—		—		—
Balance at March 31, 2023	$	138,476	$	15,434	$	21,600	$	175,510

The Corporation also has core deposit and customer-related intangibles, which are not deemed to have an indefinite life and therefore will continue to be amortized over their useful life using the present value of projected cash flows. The following table reflects the components of intangible assets at the dates indicated:

	At March 31, 2023						At December 31, 2022
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization (1)		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization (1)		Net Carrying Amount
Amortized intangible assets:
Core deposit intangibles	$	6,788	$	6,048	$	740	$	6,788	$	5,939	$	849
Customer related intangibles	4,162		2,318		1,844		8,493		6,530		1,963
Servicing rights	29,181		20,721		8,460		28,904		20,332		8,572
Total amortized intangible assets	$	40,131	$	29,087	$	11,044	$	44,185	$	32,801	$	11,384

(1) Included within accumulated amortization is a valuation allowance of $40 thousand and $5 thousand on servicing rights at March 31, 2023 and December 31, 2022, respectively.

The estimated aggregate amortization expense for core deposit and customer-related intangibles for the remainder of 2023 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2023		$	616
2024		648
2025		469
2026		319
2027		216
Thereafter		316
Total		$	2,584

The aggregate fair value of servicing rights was $16.8 million at March 31, 2023 and December 31, 2022. The fair value of these rights was determined using a discount rate ranging from 10.4% to 12.4% at March 31, 2023 and 10.1% to 12.0% at December 31, 2022.

Changes in the servicing rights balance are summarized as follows:

	Three Months Ended March 31,
(Dollars in thousands)	2023		2022
Beginning of period	$	8,572	$	7,878
Servicing rights capitalized	277		714
Amortization of servicing rights	(354)		(476)
Changes in valuation allowance	(35)		6
End of period	$	8,460	$	8,122
Loans serviced for others	$	1,496,319	$	1,440,562

Activity in the valuation allowance for servicing rights was as follows:

	Three Months Ended March 31,
(Dollars in thousands)	2023		2022
Valuation allowance, beginning of period	$	(5)	$	(13)
Additions	(35)		—
Reductions	—		6
Valuation allowance, end of period	$	(40)	$	(7)

The estimated amortization expense of servicing rights for the remainder of 2023 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2023		$	1,072
2024		958
2025		855
2026		761
2027		641
Thereafter		4,173
Total		$	8,460

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Deposits

3 Months Ended

Mar. 31, 2023

Deposits [Abstract]

Deposits

Deposits

Deposits and their respective weighted average interest rate at March 31, 2023 and December 31, 2022 consisted of the following:

	At March 31, 2023				At December 31, 2022
	Weighted Average Interest Rate		Amount		Weighted Average Interest Rate		Amount
	(Dollars in thousands)
Noninterest-bearing deposits	—	%	$	1,799,225	—	%	$	2,047,263
Demand deposits	2.56		2,433,575		2.02		2,321,748
Savings deposits	0.39		955,530		0.25		1,025,431
Time deposits	2.91		646,327		2.07		519,084
Total	1.45	%	$	5,834,657	1.02	%	$	5,913,526

Deposits are insured up to applicable limits by the Deposit Insurance Fund of the FDIC, which is currently up to $250 thousand per account owner. The aggregate amount of time deposits in denominations over $250 thousand was $121.7 million at March 31, 2023 and $95.0 million at December 31, 2022.

At March 31, 2023, the scheduled maturities of time deposits were as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2023		$	259,767
2024		196,555
2025		158,162
2026		14,600
2027		8,246
Thereafter		8,997
Total		$	646,327

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Borrowings

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Borrowings

Borrowings

The following is a summary of borrowings by type. Short-term borrowings consist of overnight borrowings and term borrowings with an original maturity of one year or less.

	At March 31, 2023				At December 31, 2022
(Dollars in thousands)	Balance at End of Period		Weighted Average Interest Rate at End of Period		Balance at End of Period		Weighted Average Interest Rate at End of Period
Short-term borrowings:
FHLB borrowings	$	163,700	5.15	%	$	125,000	4.45	%
Federal funds purchased	90,000		5.26		60,000		4.63
Customer repurchase agreements	18,181		0.05		12,141		0.05
Long-term debt:
FHLB advances	$	220,000	3.52	%	$	95,000	1.34	%
Subordinated notes	148,385		6.08		148,260		6.09

The Corporation, through the Bank, has a credit facility with the Federal Home Loan Bank (the FHLB) with a maximum borrowing capacity of approximately $3.0 billion. All borrowings and letters of credit from the FHLB are secured by qualifying commercial real estate and residential mortgage loans, investments and other assets. At March 31, 2023 and December 31, 2022, the Bank had outstanding short-term letters of credit with the FHLB totaling $830.4 million and $690.5 million, respectively, which were utilized to collateralize public funds deposits and other secured deposits. The maximum borrowing capacity with the FHLB changes as a function of the Bank’s qualifying collateral assets as well as the FHLB’s internal credit rating of the Bank. The available borrowing capacity from the FHLB totaled $1.7 billion at March 31, 2023.    

The Corporation, through the Bank, holds collateral at the Federal Reserve Bank of Philadelphia to provide access to the Discount Window Lending program. The collateral, consisting of investment securities, was valued at $119.6 million and $98.1

million at March 31, 2023 and December 31, 2022, respectively. At March 31, 2023 and December 31, 2022, the Corporation had no outstanding borrowings under the Discount Window Lending program.

The Corporation has a $10.0 million committed line of credit with a correspondent bank. At March 31, 2023 and December 31, 2022, the Corporation had no outstanding borrowings under this line.

The Corporation and the Bank had $3.1 billion and $3.0 billion of committed borrowing capacity at March 31, 2023 and December 31, 2022, respectively, of which $1.9 billion and $2.1 billion was available as of March 31, 2023 and December 31, 2022, respectively. The Corporation, through the Bank, also maintained uncommitted funding sources from correspondent banks of $410.0 million at March 31, 2023 and December 31, 2022, of which $320.0 million and $350.0 million were unused as of March 31, 2023 and December 31, 2022, respectively. Future availability under these lines is subject to the prerogatives of the granting banks and may be withdrawn at will.

Long-term advances with the FHLB of Pittsburgh mature as follows:

(Dollars in thousands)	As of March 31, 2023		Weighted Average Rate
Remainder of 2023	$	10,000	3.02	%
2024	85,000		2.10
2025	50,000		4.59
2026	50,000		4.42
2027	—		—
Thereafter	25,000		4.61
Total	$	220,000	3.52	%

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Retirement Plans and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

Retirement Plans and Other Postretirement Benefits

Retirement Plans and Other Postretirement Benefits

Information with respect to the Retirement Plans and Other Postretirement Benefits follows: 

	Three Months Ended March 31,
	2023		2022		2023		2022
(Dollars in thousands)	Retirement Plans				Other Post Retirement Benefits
Service cost	$	130	$	137	$	19	$	30
Interest cost	597		390		32		24
Expected loss on plan assets	(770)		(933)		—		—
Amortization of net actuarial loss (gain)	250		204		(4)		14
Net periodic benefit cost (income)	$	207	$	(202)	$	47	$	68

The components of net periodic benefit cost, other than the service cost component, are included in other noninterest expense in the condensed consolidated statements of income.

The Corporation expects to make contributions of $156 thousand to the Retirement Plans and $130 thousand to Other Postretirement Benefit Plans in 2023. During the three months ended March 31, 2023, the Corporation contributed $39 thousand to its Non-Qualified Retirement Benefit Plans and $23 thousand to its Other Postretirement Benefit Plans. During the three months ended March 31, 2023, $713 thousand was paid to participants from the Retirement Plans and $23 thousand was paid to participants from the Other Postretirement Benefit Plans.

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Stock-Based Incentive Plan

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Share-Based Incentive Plan

Stock-Based Incentive PlanThe Corporation maintains the 2013 Long-Term Incentive Plan, which replaced the expired 2003 Long-Term Incentive Plan. In December 2018, the Corporation's Board of Directors approved an Amended and Restated Univest 2013 Long-Term Incentive Plan (the Plan) to permit the issuance of restricted stock units. On April 26, 2023, the 2023 Equity Incentive Plan was approved by shareholders at the Corporation's annual meeting.

The following is a summary of the Corporation's stock option activity and related information for the three months ended March 31, 2023:

(Dollars in thousands, except per share data)	Shares Under Option	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value at March 31, 2023
Outstanding at December 31, 2022	294,111	$	26.11
Exercised	(4,167)	17.89
Outstanding at March 31, 2023	289,944	26.23		3.9	$	302
Exercisable at March 31, 2023	289,944	26.23		3.9	302

The Corporation did not issue stock options during the three months ended March 31, 2023 or March 31, 2022.

The following is a summary of nonvested restricted stock units at March 31, 2023 including changes during the three months then ended:

(Dollars in thousands, except per share data)	Nonvested Stock Units	Weighted Average Grant Date Fair Value
Nonvested stock units at December 31, 2022	408,264	$	25.57
Granted	213,429	25.04
Added by performance factor	814	19.20
Vested	(174,798)	21.95
Forfeited	(6,114)	27.62
Nonvested stock units at March 31, 2023	441,595	$	26.71

Certain information regarding restricted stock units is summarized below for the periods indicated:

	Three Months Ended March 31,
(Dollars in thousands, except per share data)	2023		2022
Restricted stock units granted	213,429		164,319
Weighted average grant date fair value	$	25.04	$	28.36
Intrinsic value of units granted	$	5,345	$	4,660
Restricted stock units vested	174,798		118,834
Weighted average grant date fair value	$	21.95	$	23.29
Intrinsic value of units vested	$	4,385	$	3,377

The total unrecognized compensation expense and the weighted average period over which unrecognized compensation expense is expected to be recognized related to nonvested restricted stock units at March 31, 2023 is presented below:

(Dollars in thousands)	Unrecognized Compensation Cost		Weighted-Average Period Remaining (Years)
Restricted stock units	$	9,603	2.3

The following table presents information related to the Corporation’s compensation expense related to stock incentive plans recognized for the periods indicated:

	Three Months Ended March 31,
(Dollars in thousands)	2023		2022
Stock-based compensation expense:
Restricted stock units	$	1,110	$	934
Employee stock purchase plan	29		25
Total	$	1,139	$	959
Tax benefit on nonqualified stock option expense and disqualifying dispositions of incentive stock options	$	35	$	1

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Accumulated Other Comprehensive (Loss) Income

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Accumulated Other Comprehensive (Loss) Income

Accumulated Other Comprehensive (Loss) Income

The following table shows the components of accumulated other comprehensive (loss) income, net of taxes, for the periods presented:

(Dollars in thousands)	Net Unrealized (Losses) Gains on Available-for-Sale Investment Securities		Net Change Related to Derivatives Used for Cash Flow Hedges		Net Change Related to Defined Benefit Pension Plans		Accumulated Other Comprehensive (Loss) Income
Balance, December 31, 2022	$	(40,066)	$	(6,831)	$	(15,207)	$	(62,104)
Other comprehensive income	4,491		1,869		194		6,554
Balance, March 31, 2023	$	(35,575)	$	(4,962)	$	(15,013)	$	(55,550)
Balance, December 31, 2021	$	(1,216)	$	(159)	$	(14,978)	$	(16,353)
Other comprehensive (loss) income	(15,842)		114		172		(15,556)
Balance, March 31, 2022	$	(17,058)	$	(45)	$	(14,806)	$	(31,909)

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Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

Interest Rate Swaps

The Corporation periodically uses interest rate swap agreements to modify interest rate characteristics from variable to fixed or fixed to variable in order to reduce the impact of interest rate changes on future net interest income. The Corporation’s credit exposure on interest rate swaps includes changes in fair value and any collateral that is held by a third party.

In May 2022, the Corporation entered into an interest rate swap classified as a cash flow hedge with a notional amount of $250.0 million to hedge the interest payments received on a pool of variable rate loans. Under the terms of the swap agreement, the Corporation pays a variable rate equal to the Prime Rate and receives a fixed rate of 5.99%. The swap matures in May 2026. The Corporation performed an assessment of the hedge for effectiveness at the inception of the hedge and performs an assessment on a recurring basis and determined that the derivative currently is and is expected to be highly effective in offsetting changes in cash flows of the hedged item. At March 31, 2023, approximately $3.6 million, net of tax, which is recorded in accumulated other comprehensive loss, is expected to be reclassified into earnings during the next twelve months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations and the addition of other hedges subsequent to March 31, 2023. At March 31, 2023, the notional amount of the interest rate swap was $250.0 million and the fair value was a liability of $6.3 million.

Credit Derivatives

The Corporation has agreements with third-party financial institutions whereby the third-party financial institution enters into interest rate derivative contracts with loan customers referred to them by the Corporation. By the terms of the agreements, the third-party financial institution has recourse to the Corporation for any exposure created under each swap contract in the event the customer defaults on the swap agreement and the agreement is in a paying position to the third-party financial institution. These transactions represent credit derivatives and are a customary arrangement that allows the Corporation to provide access to interest rate swap transactions for customers without issuing the swap.

At March 31, 2023, the Corporation had exposure to 124 variable-rate to fixed-rate interest rate swap transactions between the third-party financial institution and customers with a current notional amount of $792.8 million and remaining maturities ranging from 13 months to 11 years. At March 31, 2023, the fair value of the Corporation's interest rate swap credit derivatives was a liability of $330 thousand. At March 31, 2023, the fair value of the swaps to the customers was a net gain of $58.1 million. At March 31, 2023, the Corporation's credit exposure related to the customer totaled $1.7 million.

The maximum potential payments by the Corporation to the third-party financial institution under these credit derivatives are not estimable as they are contingent on future interest rates and the agreement does not provide for a limitation of the maximum potential payment amount.

Mortgage Banking Derivatives

Derivative loan commitments represent agreements for delayed delivery of financial instruments in which the buyer agrees to purchase and the seller agrees to deliver, at a specified future date, a specified instrument at a specified price or yield. The

Corporation’s derivative loan commitments are commitments to sell loans secured by 1-to 4-family residential properties whose predominant risk characteristic is interest rate risk.

Derivatives Tables

The following table presents the notional amounts and fair values of derivatives designated as hedging instruments recorded on the condensed consolidated balance sheets at March 31, 2023 and December 31, 2022. The Corporation pledges cash or securities to cover the negative fair value of derivative instruments. Cash collateral associated with derivative instruments are not added to or netted against the fair value amounts.

			Derivative Assets			Derivative Liabilities
(Dollars in thousands)	Notional Amount		Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
At March 31, 2023
Interest rate swap - cash flow hedge	$	250,000		$	—	Other liabilities	$	6,282
Total	$	250,000		$	—		$	6,282
At December 31, 2022
Interest rate swap - cash flow hedge	$	250,000		$	—	Other liabilities	$	8,647
Total	$	250,000		$	—		$	8,647

The following table presents the notional amounts and fair values of derivatives not designated as hedging instruments recorded on the condensed consolidated balance sheets at March 31, 2023 and December 31, 2022:

			Derivative Assets			Derivative Liabilities
(Dollars in thousands)	Notional Amount		Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
At March 31, 2023
Credit derivatives	$	792,838		$	—	Other liabilities	$	330
Interest rate locks with customers	21,208		Other assets	265			—
Forward loan sale commitments	26,633			—		Other liabilities	6
Total	$	840,679		$	265		$	336
At December 31, 2022
Credit derivatives	$	815,469		$	—	Other liabilities	$	360
Interest rate locks with customers	10,269		Other assets	119			—
Forward loan sale commitments	15,306		Other assets	29			—
Total	$	841,044		$	148		$	360

The following table presents amounts included in the condensed consolidated statements of income for derivatives designated as hedging instruments for the periods indicated:

	Statement of Income Classification	Three Months Ended
		March 31,
(Dollars in thousands)		2023		2022
Interest rate swap—cash flow hedge—net interest payments	Interest expense	$	1,060	$	68
Total net loss		$	(1,060)	$	(68)

The following table presents amounts included in the condensed consolidated statements of income for derivatives not designated as hedging instruments for the periods indicated:

	Statement of Income Classification	Three Months Ended
		March 31,
(Dollars in thousands)		2023		2022
Credit derivatives	Other noninterest income	$	86	$	450
Interest rate locks with customers	Net gain (loss) on mortgage banking activities	146		(1,010)
Forward loan sale commitments	Net (loss) gain on mortgage banking activities	(34)		719
Total net gain		$	198	$	159

The following table presents amounts included in accumulated other comprehensive (loss) income for derivatives designated as hedging instruments at March 31, 2023 and December 31, 2022:

(Dollars in thousands)	Accumulated Other Comprehensive (Loss) Income	At March 31, 2023		At December 31, 2022
Interest rate swap—cash flow hedge	Fair value, net of taxes	$	(4,962)	$	(6,831)
Total		$	(4,962)	$	(6,831)

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Fair Value Disclosures

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Disclosures

Fair Value Disclosures

Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The Corporation determines the fair value of financial instruments based on the fair value hierarchy. The Corporation maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Corporation. Unobservable inputs are inputs that reflect the Corporation’s assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances, including assumptions about risk. Three levels of inputs are used to measure fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input significant to the fair value measurement. Transfers between levels are recognized at the end of the reporting periods.

Level 1: Valuations are based on quoted prices in active markets for identical assets or liabilities that the Corporation can access at the measurement date. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment.

Level 2: Valuations are based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

Level 3: Valuations are based on inputs that are unobservable and significant to the overall fair value measurement. Assets and liabilities utilizing Level 3 inputs include: financial instruments whose value is determined using pricing models, discounted cash-flow methodologies, or similar techniques, as well as instruments for which the fair value calculation requires significant management judgment or estimation.

Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Investment Securities

Where quoted prices are available in an active market for identical instruments, investment securities are classified within Level 1 of the valuation hierarchy. Level 1 investment securities include U.S. Treasury securities, most equity securities and money market mutual funds. Mutual funds are registered investment companies which are valued at net asset value of shares on a market exchange at the end of each trading day. Level 2 of the valuation hierarchy includes securities issued by U.S. Government sponsored enterprises, mortgage-backed securities, collateralized mortgage obligations, corporate and municipal bonds and certain equity securities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. In cases where there is limited activity or less transparency around inputs to the valuation, investment securities are classified within Level 3 of the valuation hierarchy.

Fair values for securities are determined using independent pricing services and market-participating brokers. The Corporation’s independent pricing service utilizes evaluated pricing models that vary by asset class and incorporate available trade, bid and other market information for structured securities, cash flow and, when available, loan performance data. Because many fixed income securities do not trade on a daily basis, the pricing service’s evaluated pricing applications apply information as applicable through processes, such as benchmarking of like securities, sector groupings, and matrix pricing, to prepare evaluations. If at any time, the pricing service determines that it does not have sufficient verifiable information to value a particular security, the Corporation will utilize valuations from another pricing service. Management has a sufficient understanding of the third-party service’s valuation models, assumptions and inputs used in determining the fair value of securities to enable management to maintain an appropriate system of internal control.

On a quarterly basis, the Corporation reviews changes, as submitted by the pricing service, in the market value of its security portfolio. Individual changes in valuations are reviewed for consistency with general interest rate movements and any known credit concerns for specific securities. If, upon the Corporation’s review or in comparing with another service, a material difference between pricing evaluations were to exist, the Corporation may submit an inquiry to the current pricing service regarding the data used to determine the valuation of a particular security. If the Corporation determines there is market information that would support a different valuation than from the current pricing service’s evaluation, the Corporation may utilize and change the security's valuation. There were no material differences in valuations noted at March 31, 2023.

Loans Held for Sale

The fair value of our loans held for sale is based on estimates using Level 2 inputs. These inputs are based on pricing information obtained from wholesale mortgage banks and brokers and applied to loans with similar interest rates and maturities.

Derivative Financial Instruments

The fair values of derivative financial instruments are based upon the estimated amount the Corporation would receive or pay to terminate the contracts or agreements, taking into account current interest rates and, when appropriate, the current creditworthiness of the counterparties. Interest rate swaps and mortgage banking derivative financial instruments are classified within Level 2 of the valuation hierarchy. Credit derivatives are valued based on credit worthiness of the underlying borrower which is a significant unobservable input and therefore classified in Level 3 of the valuation hierarchy.

Contingent Consideration Liability

The Corporation estimates the fair value of the contingent consideration liability by using a discounted cash flow model of future contingent payments based on projected revenue related to the acquired business. The estimated fair value of the contingent consideration liability is reviewed on a quarterly basis and any valuation adjustments resulting from a change of estimated future contingent payments based on projected revenue of the acquired business affecting the contingent consideration liability will be recorded through noninterest expense. Due to the significant unobservable input related to the projected revenue, the contingent consideration liability is classified within Level 3 of the valuation hierarchy. An increase in the projected revenue may result in a higher fair value of the contingent consideration liability. Alternatively, a decrease in the projected revenue may result in a lower estimated fair value of the contingent consideration liability.

The following table presents the assets and liabilities measured at fair value on a recurring basis at March 31, 2023 and December 31, 2022, classified using the fair value hierarchy:

	At March 31, 2023
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
State and political subdivisions	$	—	$	2,297	$	—	$	2,297
Residential mortgage-backed securities	—		280,794		—		280,794
Collateralized mortgage obligations	—		2,271		—		2,271
Corporate bonds	—		82,294		—		82,294
Total available-for-sale securities	—		367,656		—		367,656
Equity securities:
Equity securities - financial services industry	711		—		—		711
Money market mutual funds	2,394		—		—		2,394
Total equity securities	3,105		—		—		3,105
Loans held for sale	—		5,425		—		5,425
Interest rate locks with customers*	—		265		—		265
Total assets	$	3,105	$	373,346	$	—	$	376,451
Liabilities:
Contingent consideration liability	$	—	$	—	$	1,154	$	1,154
Interest rate swaps*	—		6,282		—		6,282
Credit derivatives*	—		—		330		330
Forward loan sale commitments*	—		6		—		6
Total liabilities	$	—	$	6,288	$	1,484	$	7,772

* Such financial instruments are recorded at fair value as further described in Note 11, "Derivative Instruments and Hedging Activities."

The $330 thousand of credit derivatives liability represented the Credit Valuation Adjustment (CVA), which is obtained from real-time financial market data, of 124 interest rate swaps with a notional amount of $792.8 million. The March 31, 2023 CVA assumed a zero-deal recovery percentage based on the most recent index credit curve.

The contingent consideration liability resulting from the Sheaffer 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, 2022
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ 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 industry	780		—		—		780
Money market mutual funds	1,799		—		—		1,799
Total equity securities	2,579		—		—		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 11, "Derivative Instruments and Hedging Activities."

The $360 thousand of credit derivatives liability represented the CVA, which is obtained from real-time financial market data, of 127 interest rate swaps with a notional amount of $815.5 million. The December 31, 2022 CVA assumed a zero-deal recovery percentage based on the most recent index credit curve.

The contingent consideration liability resulting from the Sheaffer 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.

The following table includes a roll forward of 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, 2023 and 2022:

	Three Months Ended March 31, 2023
(Dollars in thousands)	Balance at December 31, 2022		Additions		Payments received		Increase in value		Balance at March 31, 2023
Credit derivatives	(360)		(57)		—		87		(330)
Net total	$	(360)	$	(57)	$	—	$	87	$	(330)

	Three Months Ended March 31, 2022
(Dollars in thousands)	Balance at December 31, 2021		Additions		Payments received		Increase (decrease) in value		Balance at March 31, 2022
Loans	48		—		(35)		—		13
Credit derivatives	(381)		(526)		—		450		(457)
Net total	$	(333)	$	(526)	$	(35)	$	450	$	(444)

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, 2023 and 2022:

	Three Months Ended March 31, 2023
(Dollars in thousands)	Balance at December 31, 2022		Payment of Contingent Consideration		Adjustment of Contingent Consideration		Balance at March 31, 2023
Paul I. Sheaffer Insurance Agency	$	1,765	$	635	$	24	$	1,154
Total contingent consideration liability	$	1,765	$	635	$	24	$	1,154

	Three Months Ended March 31, 2022
(Dollars in thousands)	Balance at December 31, 2021		Payment of Contingent Consideration		Adjustment of Contingent Consideration		Balance at March 31, 2022
Paul I. Sheaffer Insurance Agency	$	1,629	$	—	$	34	$	1,663
Total contingent consideration liability	$	1,629	$	—	$	34	$	1,663

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, 2023 and December 31, 2022:

	At March 31, 2023
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets at Fair Value
Individually analyzed loans held for investment	$	—	$	—	$	10,389	$	10,389
Other real estate owned	—		—		19,000		19,000
Total	$	—	$	—	$	29,389	$	29,389

	At December 31, 2022
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets 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

The following table presents assets and liabilities not measured at fair value on a recurring or non-recurring basis in the Corporation’s condensed consolidated balance sheets but for which the fair value is required to be disclosed at March 31, 2023 and December 31, 2022. The disclosed fair values are classified using the fair value hierarchy.

	At March 31, 2023
(Dollars in thousands)	Level 1		Level 2		Level 3		Fair Value		Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	138,324	$	—	$	—	$	138,324	$	138,324
Held-to-maturity securities	—		133,147		—		133,147		151,347
Federal Home Loan Bank, Federal Reserve Bank and other stock	NA		NA		NA		NA		43,792
Net loans and leases held for investment	—		—		6,097,345		6,097,345		6,149,381
Servicing rights	—		—		16,827		16,827		8,460
Total assets	$	138,324	$	133,147	$	6,114,172	$	6,385,643	$	6,491,304
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	5,188,330	$	—	$	—	$	5,188,330	$	5,188,330
Time deposits	—		637,072		—		637,072		646,327
Total deposits	5,188,330		637,072		—		5,825,402		5,834,657
Short-term borrowings	—		271,881		—		271,881		271,881
Long-term debt	—		220,903		—		220,903		220,000
Subordinated notes	—		141,250		—		141,250		148,385
Total liabilities	$	5,188,330	$	1,271,106	$	—	$	6,459,436	$	6,474,923

	At December 31, 2022
(Dollars in thousands)	Level 1		Level 2		Level 3		Fair 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 stock	NA		NA		NA		NA		33,841
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 deposits	5,394,442		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

The following valuation methods and assumptions were used by the Corporation in estimating the fair value for financial instruments measured at fair value on a non-recurring basis and financial instruments not measured at fair value on a recurring or non-recurring basis in the Corporation’s condensed consolidated balance sheets but for which the fair value is required to be disclosed:

Cash and short-term interest-earning assets: The carrying amounts reported in the balance sheet for cash and due from banks, interest-earning deposits with other banks and other short-term investments is their stated value. Cash and short-term interest-earning assets are classified within Level 1 in the fair value hierarchy.

Held-to-maturity securities: Fair values for the held-to-maturity investment securities are estimated by using pricing models or quoted prices of securities with similar characteristics and are classified in Level 2 in the fair value hierarchy.

Federal Home Loan Bank, Federal Reserve Bank and other stock: It is not practical to determine the fair values of Federal Home Loan Bank, Federal Reserve Bank and other stock, due to restrictions placed on their transferability.

Loans held for sale: Loans held for sale are carried at the lower of cost or estimated fair value. The fair value of the Corporation’s mortgage loans held for sale are generally determined using a pricing model based on current market information obtained from external sources, including interest rates, bids or indications provided by market participants on specific loans that are actively marketed for sale. These loans are primarily residential mortgage loans and are generally classified in Level 2 due to the observable pricing data.

Loans and leases held for investment: The fair values for loans and leases held for investment are estimated using discounted cash flow analyses, using a discount rate based on current interest rates at which similar loans with similar terms would be made to borrowers, adjusted as appropriate to consider credit, liquidity and marketability factors to arrive at a fair value that represents the Corporation's exit price at which these instruments would be sold or transferred. Loans and leases are classified within Level 3 in the fair value hierarchy since credit risk is not an observable input.

Individually analyzed loans and leases held for investment: For individually analyzed loans and leases, the Corporation uses a variety of techniques to measure fair value, such as using the current appraised value of the collateral, agreements of sale, discounting the contractual cash flows, and analyzing market data that the Corporation may adjust due to specific characteristics of the loan/lease or collateral. At March 31, 2023, individually analyzed loans held for investment had a carrying amount of $11.3 million with a valuation allowance of $912 thousand. At December 31, 2022, individually analyzed loans held for investment had a carrying amount of $13.4 million with a valuation allowance of $2.8 million. The Corporation had no individually analyzed leases at March 31, 2023 or December 31, 2022.

Servicing rights: The Corporation estimates the fair value of servicing rights using discounted cash flow models that calculate the present value of estimated future net servicing income. The model uses readily available prepayment speed assumptions for the interest rates of the portfolios serviced. Servicing rights are classified within Level 3 in the fair value hierarchy based upon management's assessment of the inputs. The Corporation reviews the servicing rights portfolio on a quarterly basis for impairment and the servicing rights are carried at the lower of amortized cost or estimated fair value. At March 31, 2023, servicing rights had a net carrying amount of $8.5 million, which included a valuation allowance of $40 thousand. At December 31, 2022, servicing rights had a net carrying amount of $8.6 million, which included a valuation allowance of $5 thousand.

Goodwill and other identifiable assets: Certain non-financial assets subject to measurement at fair value on a non-recurring basis include goodwill and other identifiable intangible assets. During the three months ended March 31, 2023, there were no required valuation adjustments of goodwill and other identifiable intangible assets.

Other real estate owned: Other real estate owned (OREO) represents properties that the Corporation has acquired through foreclosure by either accepting a deed in lieu of foreclosure, or by taking possession of assets that were used as loan collateral. The Corporation reports OREO at the lower of cost or fair value less cost to sell, adjusted periodically based on a current appraisal or an executed agreement of sale. Capital improvement expenses associated with the construction or repair of the property are capitalized as part of the cost of the OREO asset. Write-downs and any gain or loss upon the sale of OREO is recorded in other noninterest income. OREO is reported in other assets on the condensed consolidated balance sheet. At March 31, 2023 and December 31, 2022, OREO had a carrying amount of $19.0 million and $19.3 million, respectively. During the three months ended March 31, 2023, one commercial real estate property with a carrying value of $257 thousand was sold. Other real estate owned is classified within Level 3 in the fair value hierarchy based on appraisals, letters of intent or agreement of sale received from third parties.

Deposit liabilities: The fair values for demand and savings accounts, with no stated maturities, is the amount payable on demand at the reporting date (carrying value) and are classified within Level 1 in the fair value hierarchy. The fair values for time deposits with fixed maturities are estimated by discounting the final maturity using interest rates currently offered for deposits with similar remaining maturities. Time deposits are classified within Level 2 in the fair value hierarchy.

Short-term borrowings: The fair value of short-term borrowings are estimated using current market rates for similar borrowings and are classified within Level 2 in the fair value hierarchy.

Long-term debt: The fair value of long-term debt is estimated by using discounted cash flow analysis, based on current market rates for debt with similar terms and remaining maturities. Long-term debt is classified within Level 2 in the fair value hierarchy.

Subordinated notes: The fair value of the subordinated notes are estimated by discounting the principal balance using the treasury yield curve for the term to the call date as the Corporation has the option to call the subordinated notes. The subordinated notes are classified within Level 2 in the fair value hierarchy.

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Segment Reporting

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

At March 31, 2023, the Corporation had three reportable business segments: Banking, Wealth Management and Insurance. The Corporation determines the segments based primarily upon product and service offerings, through the types of income generated and the regulatory environment. This is strategically how the Corporation operates and has positioned itself in the marketplace. Accordingly, significant operating decisions are based upon analysis of each of these segments. The parent holding company and intercompany eliminations are included in the "Other" segment.

Each segment generates revenue from a variety of products and services it provides. Examples of products and services provided for each reportable segment are indicated as follows:

● The Banking segment provides financial services to individuals, businesses, municipalities and nonprofit organizations. These services include a full range of banking services such as deposit taking, loan origination and servicing, mortgage banking, other general banking services and equipment lease financing.

● The Wealth Management segment offers investment advisory, financial planning, trust and brokerage services. The Wealth Management segment serves a diverse client base of private families and individuals, municipal pension plans, retirement plans, trusts and guardianships.

● The Insurance segment includes a full-service insurance brokerage agency offering commercial property and casualty insurance, employee benefit solutions, personal insurance lines and human resources consulting.

The following table provides total assets by reportable business segment as of the dates indicated.

(Dollars in thousands)	At March 31, 2023		At December 31, 2022		At March 31, 2022
Banking	$	7,238,593	$	7,104,727	$	6,997,081
Wealth Management	59,127		58,239		53,174
Insurance	46,059		44,728		42,240
Other	15,212		14,322		15,245
Consolidated assets	$	7,358,991	$	7,222,016	$	7,107,740

The following tables provide reportable segment-specific information and reconciliations to consolidated financial information for the three months ended March 31, 2023 and 2022.

	Three Months Ended
	March 31, 2023
(Dollars in thousands)	Banking		Wealth Management		Insurance		Other		Consolidated
Interest income	$	83,224	$	20	$	—	$	9	$	83,253
Interest expense	20,676		979		—		2,281		23,936
Net interest income (expense)	62,548		(959)		—		(2,272)		59,317
Provision for credit losses	3,387		—		—		—		3,387
Noninterest income	6,237		6,759		6,720		(36)		19,680
Noninterest expense	39,932		4,860		3,935		802		49,529
Intersegment (revenue) expense*	(237)		115		122		—		—
Income (loss) before income taxes	25,703		825		2,663		(3,110)		26,081
Income tax expense (benefit)	5,185		164		583		(885)		5,047
Net income (loss)	$	20,518	$	661	$	2,080	$	(2,225)	$	21,034
Net capital expenditures	$	2,201	$	3	$	56	$	325	$	2,585

	Three Months Ended
	March 31, 2022
(Dollars in thousands)	Banking		Wealth Management		Insurance		Other		Consolidated
Interest income	$	51,189	$	1	$	—	$	8	$	51,198
Interest expense	3,180		30		—		1,328		4,538
Net interest income (expense)	48,009		(29)		—		(1,320)		46,660
Reversal of provision for credit losses	(3,450)		—		—		—		(3,450)
Noninterest income	7,370		7,305		5,764		31		20,470
Noninterest expense	36,488		4,709		3,865		350		45,412
Intersegment (revenue) expense*	(433)		211		222		—		—
Income (loss) before income taxes	22,774		2,356		1,677		(1,639)		25,168
Income tax expense (benefit)	4,543		492		358		(542)		4,851
Net income (loss)	$	18,231	$	1,864	$	1,319	$	(1,097)	$	20,317
Net capital expenditures	$	(5,592)	$	63	$	15	$	20	$	(5,494)

*Includes an allocation of general and administrative expenses from both the parent holding company and the Bank. These expenses are generally allocated based upon number of employees and square footage utilized.

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Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Contingencies	ContingenciesThe Corporation is periodically subject to various pending and threatened legal actions, which involve claims for monetary relief. Based upon information presently available to the Corporation, it is the Corporation's opinion that any legal and financial responsibility arising from such claims will not have a material adverse effect on the Corporation's results of operations, financial position or cash flows.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation and Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Univest Financial Corporation (the Corporation) and its wholly owned subsidiaries. The Corporation’s direct subsidiary is Univest Bank and Trust Co. (the Bank). All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP) have been condensed or omitted pursuant to the rules and regulations for interim financial information. The accompanying unaudited consolidated financial statements reflect all adjustments, which are of a normal recurring nature and are, in the opinion of management, necessary for a fair presentation of the financial statements for the interim periods presented. Certain prior period amounts have been reclassified to conform to the current period presentation. Operating results for the three-month period ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ended December 31, 2023 or for any other period. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and the notes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on February 24, 2023.

Use of Estimates

Use of Estimates

The preparation of the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes include the fair value measurement of investment securities available-for-sale and the determination of the allowance for credit losses.

Loans and Leases

Loans

A loan is classified as a modified loan to a borrower experiencing financial difficulty when a contractual loan modification in the form of principal forgiveness, an interest rate reduction, an other-than-significant payment delay or a term extension (or a combination thereof) has been granted to an existing borrower experiencing financial difficulties. The goal when modifying a credit is to establish a reasonable period of time to provide cash flow relief to customers experiencing cash flow difficulties. Accruing modified loans to borrowers experiencing financial difficulty are primarily comprised of loans on which interest is being accrued under the modified terms, and the loans are current or less than 90 days past due.

Loans and Leases - Prior to ASU No. 2022-02 Adoption

The Corporation adopted ASU No. 2022-02 effective January 1, 2023. The following section was carried forward from the Annual Report of Form 10-K for the year ended December 31, 2022.

A loan or lease is classified as a troubled debt restructuring when a concession has been granted to an existing borrower experiencing financial difficulties. The Corporation grants concessions to existing borrowers primarily related to extensions of interest-only payment periods and an occasional payment modification. These modifications typically are for up to one year. The goal when restructuring a credit is to establish a reasonable period of time to provide cash flow relief to customers experiencing cash flow difficulties. Accruing troubled debt restructured loans are primarily comprised of loans on which interest is being accrued under the restructured terms, and the loans are current or less than 90 days past due.

Recent Accounting Pronouncements

Accounting Pronouncements Adopted in 2023

In March 2022, the FASB issued ASU No. 2022-02, "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted CECL and enhance the disclosure requirements for modifications of receivables made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current period gross write-offs by year of origination for financing receivables and net investment in leases in the existing vintage disclosures. This ASU became

effective on January 1, 2023 for the Corporation. The adoption of this ASU resulted in updated disclosures within our financial statements but otherwise did not have a material impact on the Corporation's financial statements.

Recent Accounting Pronouncements Yet to Be Adopted

In March 2023, the FASB issued ASU No. 2023-02, "Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a consensus of the Emerging Issues Task Force)". The ASU allows entities to elect the proportional amortization method, on a tax-credit-program-by-tax-credit-program basis, for all equity investments in tax credit programs meeting the eligibility criteria in Accounting Standards Codification (ASC) 323-740-25-1. While the ASU does not significantly alter the existing eligibility criteria, it does provide clarifications to address existing interpretive issues. It also prescribes specific information reporting entities must disclose about tax credit investments each period. This ASU is effective for reporting periods beginning after December 15, 2023, for public business entities, or January 1, 2024 for the Corporation. The Corporation does not expect the adoption of this ASU to have a material impact on the Corporation's financial statements.

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Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Summary of Computation for Basic and Diluted Earnings per Share

The following table sets forth the computation of basic and diluted earnings per share. For additional information on the calculation of basic and diluted earnings per share, see Note 1, "Summary of Significant Accounting Policies - Earnings per Share" of the Corporation's Annual Report on Form 10-K for the year ended December 31, 2022.

	Three Months Ended
	March 31,
(Dollars and shares in thousands, except per share data)	2023		2022
Numerator for basic and diluted earnings per share—net income available to common shareholders	$	21,034	$	20,317
Denominator for basic earnings per share—weighted-average shares outstanding	29,312		29,542
Effect of dilutive securities—employee stock options and restricted stock units	194		196
Denominator for diluted earnings per share—adjusted weighted-average shares outstanding	29,506		29,738
Basic earnings per share	$	0.72	$	0.69
Diluted earnings per share	$	0.71	$	0.68
Average antidilutive options and restricted stock units excluded from computation of diluted earnings per share	229		249

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Investment Securities (Tables)

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Amortized Cost, Estimated Fair Value and Allowance for Credit Losses of HTM Securities and AFS Securities by Contractual Maturities

The following table shows the amortized cost, the estimated fair value and the allowance for credit losses of the held-to-maturity securities and available-for-sale securities at March 31, 2023 and December 31, 2022, by contractual maturity within each type:

	At March 31, 2023
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Securities Held-to-Maturity
Residential mortgage-backed securities:
After 1 year to 5 years	$	2,554	$	—	$	(87)			$	2,467
After 5 years to 10 years	7,531		—		(398)		—		7,133
Over 10 years	141,262		—		(17,715)		—		123,547
	151,347		—		(18,200)		—		133,147
Total	$	151,347	$	—	$	(18,200)	$	—	$	133,147
Securities Available-for-Sale
State and political subdivisions:
Within 1 year	$	1,030	$	1	$	—	$	—	$	1,031
After 1 year to 5 years	1,297		—		(31)		—		1,266
	2,327		1		(31)		—		2,297
Residential mortgage-backed securities:
After 1 year to 5 years	784		—		(29)		—		755
After 5 years to 10 years	15,617		—		(1,194)		—		14,423
Over 10 years	301,712		32		(36,128)		—		265,616
	318,113		32		(37,351)		—		280,794
Collateralized mortgage obligations:
After 5 years to 10 years	305		—		(18)		—		287
Over 10 years	2,199		—		(215)		—		1,984
	2,504		—		(233)		—		2,271
Corporate bonds:
Within 1 year	1,500		—		(1)		(1)		1,498
After 1 year to 5 years	29,674		4		(1,163)		(200)		28,315
After 5 years to 10 years	60,000		—		(6,288)		(1,231)		52,481
	91,174		4		(7,452)		(1,432)		82,294
Total	$	414,118	$	37	$	(45,067)	$	(1,432)	$	367,656

	At December 31, 2022
(Dollars in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
Securities Held-to-Maturity
Residential mortgage-backed securities:
After 1 year to 5 years	$	1,654	$	—	$	(70)	$	—	$	1,584
After 5 years to 10 years	6,076		—		(342)		—		5,734
Over 10 years	146,997		—		(20,247)		—		126,750
	154,727		—		(20,659)		—		134,068
Total	$	154,727	$	—	$	(20,659)	$	—	$	134,068
Securities Available-for-Sale
State and political subdivisions:
After 1 year to 5 years	$	2,327	$	—	$	(42)	$	—	$	2,285
	2,327		—		(42)		—		2,285
Residential mortgage-backed securities:
After 1 year to 5 years	864		—		(37)		—		827
After 5 years to 10 years	10,399		—		(815)		—		9,584
Over 10 years	294,261		7		(41,291)		—		252,977
	305,524		7		(42,143)		—		263,388
Collateralized mortgage obligations:
After 5 years to 10 years	324		—		(22)		—		302
Over 10 years	2,257		—		(237)		—		2,020
	2,581		—		(259)		—		2,322
Corporate bonds:
Within 1 year	1,000		—		—		—		1,000
After 1 year to 5 years	30,679		3		(1,516)		(152)		29,014
After 5 years to 10 years	60,000		—		(6,765)		(988)		52,247
	91,679		3		(8,281)		(1,140)		82,261
Total	$	402,111	$	10	$	(50,725)	$	(1,140)	$	350,256

Information Related to Sales of Securities Available-for-Sale

The following table presents information related to sales of securities available-for-sale during the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31,
(Dollars in thousands)	2023		2022
Securities available-for-sale:
Proceeds from sales	$	—	$	1,530
Gross realized gains on sales	—		30
Tax expense related to net realized gains on sales	—		6

Amount of Securities in Unrealized Loss Position With No Allowance For Credit Losses

The following table shows the fair value of securities that were in an unrealized loss position for which an allowance for credit losses has not been recorded at March 31, 2023 and December 31, 2022, by the length of time those securities were in a continuous loss position.

	Less than Twelve Months				Twelve Months or Longer				Total
(Dollars in thousands)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
At March 31, 2023
Securities Held-to-Maturity
Residential mortgage-backed securities	$	22,966	$	(862)	$	110,181	$	(17,338)	$	133,147	$	(18,200)
Total	$	22,966	$	(862)	$	110,181	$	(17,338)	$	133,147	$	(18,200)
Securities Available-for-Sale
State and political subdivisions	$	—	$	—	$	1,267	$	(31)	$	1,267	$	(31)
Residential mortgage-backed securities	84,540		(4,885)		190,747		(32,466)		275,287		(37,351)
Collateralized mortgage obligations	—		—		2,271		(233)		2,271		(233)
Total	$	84,540	$	(4,885)	$	194,285	$	(32,730)	$	278,825	$	(37,615)
At December 31, 2022
Securities Held-to-Maturity
Residential mortgage-backed securities	$	65,044	$	(5,894)	$	69,024	$	(14,765)	$	134,068	$	(20,659)
Total	$	65,044	$	(5,894)	$	69,024	$	(14,765)	$	134,068	$	(20,659)
Securities Available-for-Sale
State and political subdivisions	$	1,255	$	(42)	$	—	$	—	$	1,255	$	(42)
Residential mortgage-backed securities	128,831		(13,843)		133,902		(28,300)		262,733		(42,143)
Collateralized mortgage obligations	302		(22)		2,020		(237)		2,322		(259)
Corporate bonds	500		(1)		—		—		500		(1)
Total	$	130,888	$	(13,908)	$	135,922	$	(28,537)	$	266,810	$	(42,445)

Available-for-sale Securities, Allowance for Credit Loss Rollforward

The table below presents a rollforward by major security type for the three months ended March 31, 2023 and March 31, 2022 of the allowance for credit losses on securities available-for-sale.

(Dollars in thousands)	Corporate Bonds
Three months ended March 31, 2023
Securities Available-for-Sale
Beginning balance	$	(1,140)
Change in securities for which a previous expected credit loss was recognized	(292)
Ending balance	$	(1,432)
Three months ended March 31, 2022
Securities Available-for-Sale
Beginning balance	$	(929)
Additions for securities for which no previous expected credit losses were recognized	(45)
Change in securities for which a previous expected credit loss was recognized	(301)
Ending balance	$	(1,275)

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Loans and Leases (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Summary of Major Loan and Lease Categories

Summary of Major Loan and Lease Categories

(Dollars in thousands)	At March 31, 2023		At December 31, 2022
Commercial, financial and agricultural	$	1,032,753	$	1,088,928
Real estate-commercial	3,128,210		3,027,955
Real estate-construction	376,569		381,811
Real estate-residential secured for business purpose	498,505		478,254
Real estate-residential secured for personal purpose	779,557		730,395
Real estate-home equity secured for personal purpose	172,073		176,699
Loans to individuals	28,656		27,873
Lease financings	223,481		211,315
Total loans and leases held for investment, net of deferred income	$	6,239,804	$	6,123,230
Less: Allowance for credit losses, loans and leases	(80,034)		(79,004)
Net loans and leases held for investment	$	6,159,770	$	6,044,226
Imputed interest on lease financings, included in the above table	$	(24,386)	$	(21,932)
Net deferred costs, included in the above table	6,633		6,053
Overdraft deposits included in the above table	154		93

Schedule of Age Analysis of Past Due Loans and Leases

Age Analysis of Past Due Loans and Leases

The following presents, by class of loans and leases held for investment, an aging of past due loans and leases, loans and leases which are current and nonaccrual loans and leases at March 31, 2023 and December 31, 2022:

	Accruing Loans and Leases
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases Held for Investment
At March 31, 2023
Commercial, financial and agricultural	$	1,348	$	—	$	—	$	1,348	$	1,027,982	$	1,029,330	$	3,423	$	1,032,753
Real estate—commercial real estate and construction:
Commercial real estate	328		—		1,195		1,523		3,122,399		3,123,922		4,288		3,128,210
Construction	—		—		—		—		376,186		376,186		383		376,569
Real estate—residential and home equity:
Residential secured for business purpose	308		768		—		1,076		496,670		497,746		759		498,505
Residential secured for personal purpose	1,506		—		—		1,506		776,551		778,057		1,500		779,557
Home equity secured for personal purpose	835		74		—		909		170,216		171,125		948		172,073
Loans to individuals	20		4		47		71		28,585		28,656		—		28,656
Lease financings	1,207		371		754		2,332		221,088		223,420		61		223,481
Total	$	5,552	$	1,217	$	1,996	$	8,765	$	6,219,677	$	6,228,442	$	11,362	$	6,239,804

	Accruing Loans and Leases
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Nonaccrual Loans and Leases		Total Loans and Leases Held for Investment
At December 31, 2022
Commercial, financial and agricultural	$	1,616	$	343	$	—	$	1,959	$	1,081,897	$	1,083,856	$	5,072	$	1,088,928
Real estate—commercial real estate and construction:
Commercial real estate	3,281		290		20		3,591		3,019,827		3,023,418		4,537		3,027,955
Construction	315		—		—		315		381,496		381,811		—		381,811
Real estate—residential and home equity:
Residential secured for business purpose	375		203		263		841		476,400		477,241		1,013		478,254
Residential secured for personal purpose	4,127		162		319		4,608		723,798		728,406		1,989		730,395
Home equity secured for personal purpose	953		225		—		1,178		174,781		175,959		740		176,699
Loans to individuals	32		153		39		224		27,649		27,873		—		27,873
Lease financings	3,555		341		234		4,130		207,183		211,313		2		211,315
Total	$	14,254	$	1,717	$	875	$	16,846	$	6,093,031	$	6,109,877	$	13,353	$	6,123,230

Schedule of Nonperforming Loans and Leases

Nonperforming Loans and Leases

The following presents, by class of loans and leases, nonperforming loans and leases at March 31, 2023 and December 31, 2022.

	At March 31, 2023						At December 31, 2022
(Dollars in thousands)	Nonaccrual Loans and Leases		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Nonperforming Loans and Leases		Nonaccrual Loans and Leases		Loans and Leases 90 Days or more Past Due and Accruing Interest		Total Nonperforming Loans and Leases
Commercial, financial and agricultural	$	3,423	$	—	$	3,423	$	5,072	$	—	$	5,072
Real estate—commercial real estate and construction:
Commercial real estate	4,288		1,195		5,483		4,537		20		4,557
Construction	383		—		383		—		—		—
Real estate—residential and home equity:
Residential secured for business purpose	759		—		759		1,013		263		1,276
Residential secured for personal purpose	1,500		—		1,500		1,989		319		2,308
Home equity secured for personal purpose	948		—		948		740		—		740
Loans to individuals	—		47		47		—		39		39
Lease financings	61		754		815		2		234		236
Total	$	11,362	$	1,996	$	13,358	$	13,353	$	875	$	14,228

Nonaccrual Loan and Lease Data

The following table presents the amortized cost basis of loans and leases held for investment on nonaccrual status and loans and leases held for investment 90 days or more past due and still accruing as of March 31, 2023 and December 31, 2022.

(Dollars in thousands)	Nonaccrual With No ACL		Nonaccrual With ACL		Total Nonaccrual		Loans and Leases 90 Days or more Past Due and Accruing Interest
At March 31, 2023
Commercial, financial and agricultural	$	159	$	3,264	$	3,423	$	—
Real estate-commercial	4,288		—		4,288		1,195
Real estate-construction	383		—		383		—
Real estate-residential secured for business purpose	759		—		759		—
Real estate-residential secured for personal purpose	1,500		—		1,500		—
Real estate-home equity secured for personal purpose	948		—		948		—
Loans to individuals	—		—		—		47
Lease financings	—		61		61		754
Total	$	8,037	$	3,325	$	11,362	$	1,996
At December 31, 2022
Commercial, financial and agricultural	$	225	$	4,847	$	5,072	$	—
Real estate-commercial	4,537		—		4,537		20
Real estate-residential secured for business purpose	1,013		—		1,013		263
Real estate-residential secured for personal purpose	1,989		—		1,989		319
Real estate-home equity secured for personal purpose	740		—		740		—
Loans to individuals	—		—		—		39
Lease financings	—		2		2		234
Total	$	8,504	$	4,849	$	13,353	$	875

For the three months ended March 31, 2023, $6 thousand of interest income was recognized on nonaccrual loans and leases.

The following table presents, by class of loans and leases, the amortized cost basis of collateral-dependent nonaccrual loans and leases and type of collateral as of March 31, 2023 and December 31, 2022.

(Dollars in thousands)	Real Estate		Other (1)		None (2)		Total
At March 31, 2023
Commercial, financial and agricultural	$	3,423	$	—	$	—	$	3,423
Real estate-commercial	4,288		—		—		4,288
Real estate-construction	383		—		—		383
Real estate-residential secured for business purpose	759		—		—		759
Real estate-residential secured for personal purpose	1,500		—		—		1,500
Real estate-home equity secured for personal purpose	948		—		—		948
Lease financings	—		61		—		61
Total	$	11,301	$	61	$	—	$	11,362
(Dollars in thousands)	Real Estate		Other (1)		None (2)		Total
At December 31, 2022
Commercial, financial and agricultural	$	2,743	$	—	$	2,329	$	5,072
Real estate-commercial	4,537		—		—		4,537
Real estate-residential secured for business purpose	1,013		—		—		1,013
Real estate-residential secured for personal purpose	1,989		—		—		1,989
Real estate-home equity secured for personal purpose	740		—		—		740
Lease financings	—		2		—		2
Total	$	11,022	$	2	$	2,329	$	13,353

(1) Collateral consists of business assets, including accounts receivable, personal property and equipment.

(2) Loans fully guaranteed by the SBA or fully reserved given lack of collateral.

Summary of Commercial Credit Quality Indicators

Credit Quality Indicators

The Corporation categorizes risk based on relevant information about the ability of the borrower to service their debt. Loans with a relationship balance of less than $1 million are reviewed when necessary based on their performance, primarily when such loans are delinquent. Loans with relationships greater than $1 million are reviewed at least annually. Loan relationships with a higher risk profile or classified as special mention or substandard are reviewed at least quarterly. The Corporation reviews credit quality key risk indicators on at least an annual basis and last completed this review in conjunction with the period ended December 31, 2022. The following is a description of the internal risk ratings and the likelihood of loss related to the credit quality of commercial, financial and agricultural loans, real estate-commercial loans, real estate-construction loans and real estate-residential secured for a business purpose loans.

1.Pass—Loans considered satisfactory with no indications of deterioration

2.Special Mention—Potential weakness that deserves management's close attention

3.Substandard—Well-defined weakness or weaknesses that jeopardize the liquidation of the debt

4.Doubtful—Collection or liquidation in-full, on the basis of current existing facts, conditions and values, highly questionable and improbable

Based on the most recent analysis performed, the following table presents the recorded investment in loans and leases held for investment for commercial, financial and agricultural loans, real estate-commercial loans, real estate-construction loans and real estate-residential secured for a business purpose loans by credit quality indicator at March 31, 2023 and December 31, 2022.

	Term Loans Amortized Cost Basis by Origination Year
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
At March 31, 2023
Commercial, Financial and Agricultural
Risk Rating
1. Pass	$	27,521	$	194,140	$	145,736	$	36,286	$	25,788	$	67,231	$	469,953	$	729	$	967,384
2. Special Mention	—		3,926		21,196		2,362		7,098		—		27,337		—		61,919
3. Substandard	—		—		108		—		589		—		2,753		—		3,450
Total	$	27,521	$	198,066	$	167,040	$	38,648	$	33,475	$	67,231	$	500,043	$	729	$	1,032,753
Current period gross charge-offs	$	—	$	—	$	247	$	23	$	—	$	—	$	2,578	$	—	$	2,848
Real Estate-Commercial
Risk Rating
1. Pass	$	117,401	$	880,556	$	682,078	$	703,079	$	360,218	$	304,672	$	52,553	$	—	$	3,100,557
2. Special Mention	—		854		10,250		5,725		—		2,816		1,771		—		21,416
3. Substandard	—		—		1,949		1,701		—		2,587		—		—		6,237
Total	$	117,401	$	881,410	$	694,277	$	710,505	$	360,218	$	310,075	$	54,324	$	—	$	3,128,210
Current period gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	50	$	—	$	—	$	50
Real Estate-Construction
Risk Rating
1. Pass	$	36,683	$	261,911	$	27,799	$	3,949	$	255	$	2,761	$	26,178	$	—	$	359,536
2. Special Mention	—		5,352		—		—		—		—		5,472		—		10,824
3. Substandard	—		380		—		—		5,829		—		—		—		6,209
Total	$	36,683	$	267,643	$	27,799	$	3,949	$	6,084	$	2,761	$	31,650	$	—	$	376,569
Current period gross charge-offs	$	—	$	—	$	—	$	207	$	—	$	—	$	—	$	—	$	207
Real Estate-Residential Secured for Business Purpose
Risk Rating
1. Pass	$	30,786	$	162,069	$	131,702	$	65,443	$	40,142	$	38,726	$	27,696	$	—	$	496,564
2. Special Mention	—		—		—		245		—		934		—		—		1,179
3. Substandard	—		—		211		26		—		488		37		—		762
Total	$	30,786	$	162,069	$	131,913	$	65,714	$	40,142	$	40,148	$	27,733	$	—	$	498,505
Totals By Risk Rating
1. Pass	$	212,391	$	1,498,676	$	987,315	$	808,757	$	426,403	$	413,390	$	576,380	$	729	$	4,924,041
2. Special Mention	—		10,132		31,446		8,332		7,098		3,750		34,580		—		95,338
3. Substandard	—		380		2,268		1,727		6,418		3,075		2,790		—		16,658
Total	$	212,391	$	1,509,188	$	1,021,029	$	818,816	$	439,919	$	420,215	$	613,750	$	729	$	5,036,037
Total current period gross charge-offs	$	—	$	—	$	247	$	230	$	—	$	50	$	2,578	$	—	$	3,105

	Term Loans Amortized Cost Basis by Origination Year
(Dollars in thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term		Total
At December 31, 2022
Commercial, Financial and Agricultural
Risk Rating
1. Pass	$	233,064	$	148,033	$	41,091	$	28,269	$	28,209	$	48,631	$	487,818	$	125	$	1,015,240
2. Special Mention	2,732		28,220		9,623		8,104		26		—		19,829		—		68,534
3. Substandard	—		13		—		—		—		—		5,141		—		5,154
Total	$	235,796	$	176,266	$	50,714	$	36,373	$	28,235	$	48,631	$	512,788	$	125	$	1,088,928
Real Estate-Commercial
Risk Rating
1. Pass	$	877,703	$	680,432	$	724,941	$	332,702	$	118,034	$	208,974	$	54,139	$	—	$	2,996,925
2. Special Mention	869		8,173		11,582		944		85		3,002		1,838		—		26,493
3. Substandard	—		—		1,770		—		2,222		495		50		—		4,537
Total	$	878,572	$	688,605	$	738,293	$	333,646	$	120,341	$	212,471	$	56,027	$	—	$	3,027,955
Real Estate-Construction
Risk Rating
1. Pass	$	243,983	$	52,485	$	8,341	$	34,670	$	191	$	442	$	30,223	$	—	$	370,335
2. Special Mention	—		5,781		—		5,695		—		—		—		—		11,476
3. Substandard	—		—		—		—		—		—		—		—		—
Total	$	243,983	$	58,266	$	8,341	$	40,365	$	191	$	442	$	30,223	$	—	$	381,811
Real Estate-Residential Secured for Business Purpose
Risk Rating
1. Pass	$	165,844	$	128,669	$	67,955	$	39,794	$	21,226	$	23,324	$	29,239	$	—	$	476,051
2. Special Mention	—		—		247		—		—		941		—		—		1,188
3. Substandard	—		211		27		—		38		594		145		—		1,015
Total	$	165,844	$	128,880	$	68,229	$	39,794	$	21,264	$	24,859	$	29,384	$	—	$	478,254
Totals By Risk Rating
1. Pass	$	1,520,594	$	1,009,619	$	842,328	$	435,435	$	167,660	$	281,371	$	601,419	$	125	$	4,858,551
2. Special Mention	3,601		42,174		21,452		14,743		111		3,943		21,667		—		107,691
3. Substandard	—		224		1,797		—		2,260		1,089		5,336		—		10,706
Total	$	1,524,195	$	1,052,017	$	865,577	$	450,178	$	170,031	$	286,403	$	628,422	$	125	$	4,976,948

The Corporation had no loans with a risk rating of Doubtful included within recorded investment in loans and leases held for investment at March 31, 2023 or December 31, 2022.

Summary of Credit Exposure

The Corporation monitors the credit risk profile by payment activity for the following classifications of loans and leases: real estate-residential secured for personal purpose loans, real estate-home equity secured for personal purpose loans, loans to individuals and lease financings. The Corporation reviews credit quality indicators on at least an annual basis and last completed this review in conjunction with the period ended December 31, 2022. Loans and leases past due 90 days or more and loans and leases on nonaccrual status are considered nonperforming. Nonperforming loans and leases are reviewed monthly. Performing loans and leases are reviewed only if the loan becomes 60 days or more past due.

Based on the most recent analysis performed, the following table presents the recorded investment in loans and leases held for investment for real estate-residential secured for personal purpose loans, real estate-home equity secured for personal purpose loans, loans to individuals and lease financings by credit quality indicator at March 31, 2023 and December 31, 2022.

	Term Loans Amortized Cost Basis by Origination Year
(Dollars in thousands)	2023		2022		2021		2020		2019		Prior		Revolving Loans Amortized Cost Basis		Total
At March 31, 2023
Real Estate-Residential Secured for Personal Purpose
Payment Performance
1. Performing	$	45,329	$	265,019	$	213,723	$	138,347	$	23,519	$	92,037	$	83	$	778,057
2. Nonperforming	—		158		47		—		309		986		—		1,500
Total	$	45,329	$	265,177	$	213,770	$	138,347	$	23,828	$	93,023	$	83	$	779,557
Real Estate-Home Equity Secured for Personal Purpose
Payment Performance
1. Performing	$	219	$	2,761	$	614	$	467	$	186	$	1,743	$	165,135	$	171,125
2. Nonperforming	—		—		—		—		—		45		903		948
Total	$	219	$	2,761	$	614	$	467	$	186	$	1,788	$	166,038	$	172,073
Loans to Individuals
Payment Performance
1. Performing	$	502	$	1,317	$	763	$	494	$	197	$	1,359	$	23,977	$	28,609
2. Nonperforming	—		—		—		—		—		47		—		47
Total	$	502	$	1,317	$	763	$	494	$	197	$	1,406	$	23,977	$	28,656
Current period gross charge-offs	$	38	$	19	$	—	$	5	$	—	$	—	$	43	$	105
Lease Financings
Payment Performance
1. Performing	$	31,451	$	88,155	$	56,656	$	29,682	$	12,776	$	3,946	$	—	$	222,666
2. Nonperforming	—		654		111		18		4		28		—		815
Total	$	31,451	$	88,809	$	56,767	$	29,700	$	12,780	$	3,974	$	—	$	223,481
Current period gross charge-offs	$	—	$	—	$	—	$	20	$	—	$	—	$	—	$	20
Totals by Payment Performance
1. Performing	$	77,501	$	357,252	$	271,756	$	168,990	$	36,678	$	99,085	$	189,195	$	1,200,457
2. Nonperforming	—		812		158		18		313		1,106		903		3,310
Total	$	77,501	$	358,064	$	271,914	$	169,008	$	36,991	$	100,191	$	190,098	$	1,203,767
Total current period gross charge-offs	$	38	$	19	$	—	$	25	$	—	$	—	$	43	$	125

	Term Loans Amortized Cost Basis by Origination Year
(Dollars in thousands)	2022		2021		2020		2019		2018		Prior		Revolving Loans Amortized Cost Basis		Total
At December 31, 2022
Real Estate-Residential Secured for Personal Purpose
Payment Performance
1. Performing	$	258,293	$	211,638	$	140,822	$	23,827	$	18,273	$	75,126	$	108	$	728,087
2. Nonperforming	—		48		466		319		306		1,169		—		2,308
Total	$	258,293	$	211,686	$	141,288	$	24,146	$	18,579	$	76,295	$	108	$	730,395
Real Estate-Home Equity Secured for Personal Purpose
Payment Performance
1. Performing	$	2,945	$	642	$	491	$	192	$	205	$	1,565	$	169,870	$	175,910
2. Nonperforming	—		—		—		—		157		3		629		789
Total	$	2,945	$	642	$	491	$	192	$	362	$	1,568	$	170,499	$	176,699
Loans to Individuals
Payment Performance
1. Performing	$	1,581	$	857	$	554	$	247	$	138	$	1,340	$	23,117	$	27,834
2. Nonperforming	—		—		—		—		—		39		—		39
Total	$	1,581	$	857	$	554	$	247	$	138	$	1,379	$	23,117	$	27,873
Lease Financings
Payment Performance
1. Performing	$	94,430	$	61,680	$	33,468	$	15,164	$	5,569	$	768	$	—	$	211,079
2. Nonperforming	41		56		17		21		90		11		—		236
Total	$	94,471	$	61,736	$	33,485	$	15,185	$	5,659	$	779	$	—	$	211,315
Totals by Payment Performance
1. Performing	$	357,249	$	274,817	$	175,335	$	39,430	$	24,185	$	78,799	$	193,095	$	1,142,910
2. Nonperforming	41		104		483		340		553		1,222		629		3,372
Total	$	357,290	$	274,921	$	175,818	$	39,770	$	24,738	$	80,021	$	193,724	$	1,146,282

The Corporation had no revolving loans which were converted to term loans included within recorded investment in loans and leases held for investment at March 31, 2023 or December 31, 2022.

Summary of Activity in the Allowance for Credit Losses, Loans and Leases

Allowance for Credit Losses on Loans and Leases and Recorded Investment in Loans and Leases

The following presents, by portfolio segment, a summary of the activity in the allowance for credit losses, loans and leases, for the three months ended March 31, 2023 and 2022. There were no changes to the reasonable and supportable forecast period, the reversion period, or any significant methodology changes during the three months ended March 31, 2023.

(Dollars in thousands)	Beginning balance		Provision (reversal of provision) for credit losses		Charge-offs		Recoveries		Ending balance
Three Months Ended March 31, 2023
Allowance for credit losses, loans and leases:
Commercial, financial and agricultural	$	16,920	$	547	$	(2,848)	$	106	$	14,725
Real estate-commercial	41,673		1,524		(50)		3		43,150
Real estate-construction	4,952		(64)		(207)		—		4,681
Real estate-residential secured for business purpose	7,054		1,125		—		181		8,360
Real estate-residential secured for personal purpose	3,685		1,327		—		—		5,012
Real estate-home equity secured for personal purpose	1,287		(66)		—		50		1,271
Loans to individuals	351		113		(105)		16		375
Lease financings	3,082		(634)		(20)		32		2,460
Unallocated	—		—		N/A		N/A		—
Total	$	79,004	$	3,872	$	(3,230)	$	388	$	80,034
Three Months Ended March 31, 2022
Allowance for credit losses, loans and leases:
Commercial, financial and agricultural	$	13,538	$	(1,672)	$	(214)	$	189	$	11,841
Real estate-commercial	41,095		(669)		—		—		40,426
Real estate-construction	4,575		(941)		—		—		3,634
Real estate-residential secured for business purpose	6,482		(328)		—		48		6,202
Real estate-residential secured for personal purpose	2,403		189		—		—		2,592
Real estate-home equity secured for personal purpose	1,028		(53)		—		1		976
Loans to individuals	363		57		(75)		24		369
Lease financings	2,290		5		(59)		10		2,246
Unallocated	150		(150)		N/A		N/A		—
Total	$	71,924	$	(3,562)	$	(348)	$	272	$	68,286

N/A – Not applicable

Schedule of Allowance for Loan and Lease Credit Losses and Recorded Investment in Loans and Leases

The following presents, by portfolio segment, the balance in the ACL on loans and leases disaggregated on the basis of whether the loan or lease was measured for credit loss as a pooled loan or lease or if it was individually analyzed for a reserve at March 31, 2023 and 2022:

	Allowance for credit losses, loans and leases						Loans and leases held for investment
(Dollars in thousands)	Ending balance: individually analyzed		Ending balance: pooled		Total ending balance		Ending balance: individually analyzed		Ending balance: pooled		Loans measured at fair value		Total ending balance
At March 31, 2023
Commercial, financial and agricultural	$	912	$	13,813	$	14,725	$	3,423	$	1,029,330	$	—	$	1,032,753
Real estate-commercial	—		43,150		43,150		4,288		3,123,922		—		3,128,210
Real estate-construction	—		4,681		4,681		383		376,186		—		376,569
Real estate-residential secured for business purpose	—		8,360		8,360		759		497,746		—		498,505
Real estate-residential secured for personal purpose	—		5,012		5,012		1,500		778,057		—		779,557
Real estate-home equity secured for personal purpose	—		1,271		1,271		948		171,125		—		172,073
Loans to individuals	—		375		375		—		28,656		—		28,656
Lease financings	—		2,460		2,460		—		223,481		—		223,481
Total	$	912	$	79,122	$	80,034	$	11,301	$	6,228,503	$	—	$	6,239,804
At March 31, 2022
Commercial, financial and agricultural	$	—	$	11,841	$	11,841	$	448	$	942,335	$	—	$	942,783
Real estate-commercial	954		39,472		40,426		26,411		2,790,313		13		2,816,737
Real estate-construction	—		3,634		3,634		—		285,083		—		285,083
Real estate-residential secured for business purpose	—		6,202		6,202		1,120		411,366		—		412,486
Real estate-residential secured for personal purpose	—		2,592		2,592		2,259		566,476		—		568,735
Real estate-home equity secured for personal purpose	—		976		976		489		159,645		—		160,134
Loans to individuals	—		369		369		—		26,249		—		26,249
Lease financings	—		2,246		2,246		—		188,579		—		188,579
Total	$	954	$	67,332	$	68,286	$	30,727	$	5,370,046	$	13	$	5,400,786

N/A – Not applicable

Schedule of Accruing and Nonaccruing Modified Loans to Borrowers Experiencing Financial Difficulty

The following presents, by class of loans, information regarding accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three months ended March 31, 2023.

	Three Months Ended March 31, 2023
(Dollars in thousands)	Number of Loans	Amortized Cost Basis*		% of Total Class of Financing Receivable		Related Reserve
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty:
Real estate—construction	1	$	5,829	1.2	%	$	16
Total	1	$	5,829			$	16
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty:
Commercial, financial and agricultural	1	$	2,620	0.3	%	$	538
Total	1	$	2,620			$	538

Schedule of Financial Effect on Accruing and Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty

The following presents, by class of loans, information regarding the financial effect on accruing and nonaccrual modified loans to borrowers experiencing financial difficulty during the three months ended March 31, 2023.

	Term Extension
(Dollars in thousands)	No. of Loans	Financial Effect
Three Months Ended March 31, 2023
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty:
Real estate—construction	1	Extended the loan maturity by 8 months to allow time for the construction to be completed. 3 months of interest payments were capitalized to the loan balance.
Total	1
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty:
Commercial, financial and agricultural	1	Extended the loan maturity by 10 months in order to provide time to borrower to liquidate collateral for loan payoff.
Total	1

Schedule of Accruing and Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty With Subsequent Payment Defaults

There were no accruing or nonaccrual modified loans to borrowers experiencing financial difficulty for which there were payment defaults after the modification date for the three months ended March 31, 2023.

Schedule of Aging Analysis of Accruing and Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty

The following presents, by class of loans, the amortized cost and payment status of accruing and nonaccrual modified loans to borrowers experiencing financial difficulty at March 31, 2023.

	At March 31, 2023
(Dollars in thousands)	Current		30-89 Days Past Due		90 Days or More Past Due		Total
Accruing Modified Loans to Borrowers Experiencing Financial Difficulty:
Real estate—construction	$	5,829	$	—	$	—	$	5,829
Total	$	5,829	$	—	$	—	$	5,829
Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficulty:
Commercial, financial and agricultural	$	2,620	$	—	$	—	$	2,620
Total	$	2,620	$	—	$	—	$	2,620

Schedule of Mortgages in Process of Foreclosure

The following presents the amount of consumer mortgages collateralized by residential real estate property that were in the process of foreclosure at March 31, 2023 or December 31, 2022.

(Dollars in thousands)	At March 31, 2023		At December 31, 2022
Real estate-residential secured for personal purpose	$	2,812	$	822
Real estate-home equity secured for personal purpose	71		72
Total	$	2,883	$	894

Schedule of Lease Payments Receivables

The following presents the schedule of minimum lease payments receivable:

(Dollars in thousands)	At March 31, 2023		At December 31, 2022
2023 (excluding the three months ended March 31, 2023)	$	74,280	$	75,900
2024	66,701		61,793
2025	49,414		45,738
2026	33,086		29,902
2027	14,603		13,091
Thereafter	5,421		2,552
Total future minimum lease payments receivable	243,505		228,976
Plus: Unguaranteed residual	1,212		1,387
Plus: Initial direct costs	3,150		2,884
Less: Imputed interest	(24,386)		(21,932)
Lease financings	$	223,481	$	211,315

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Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Changes in Carrying Amount of Goodwill

Changes in the carrying amount of the Corporation's goodwill by business segment for the three months ended March 31, 2023 were as follows:

(Dollars in thousands)	Banking		Wealth Management		Insurance		Consolidated
Balance at December 31, 2022	$	138,476	$	15,434	$	21,600	$	175,510
Addition to goodwill from acquisitions	—		—		—		—
Balance at March 31, 2023	$	138,476	$	15,434	$	21,600	$	175,510

Components of Intangible Assets

The following table reflects the components of intangible assets at the dates indicated:

	At March 31, 2023						At December 31, 2022
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization (1)		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization (1)		Net Carrying Amount
Amortized intangible assets:
Core deposit intangibles	$	6,788	$	6,048	$	740	$	6,788	$	5,939	$	849
Customer related intangibles	4,162		2,318		1,844		8,493		6,530		1,963
Servicing rights	29,181		20,721		8,460		28,904		20,332		8,572
Total amortized intangible assets	$	40,131	$	29,087	$	11,044	$	44,185	$	32,801	$	11,384

(1) Included within accumulated amortization is a valuation allowance of $40 thousand and $5 thousand on servicing rights at March 31, 2023 and December 31, 2022, respectively.

Estimated Aggregate Amortization Expense

The estimated aggregate amortization expense for core deposit and customer-related intangibles for the remainder of 2023 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2023		$	616
2024		648
2025		469
2026		319
2027		216
Thereafter		316
Total		$	2,584

Changes In Servicing Rights

Changes in the servicing rights balance are summarized as follows:

	Three Months Ended March 31,
(Dollars in thousands)	2023		2022
Beginning of period	$	8,572	$	7,878
Servicing rights capitalized	277		714
Amortization of servicing rights	(354)		(476)
Changes in valuation allowance	(35)		6
End of period	$	8,460	$	8,122
Loans serviced for others	$	1,496,319	$	1,440,562

Activity In Valuation Allowance For Servicing Rights

Activity in the valuation allowance for servicing rights was as follows:

	Three Months Ended March 31,
(Dollars in thousands)	2023		2022
Valuation allowance, beginning of period	$	(5)	$	(13)
Additions	(35)		—
Reductions	—		6
Valuation allowance, end of period	$	(40)	$	(7)

Estimated Amortization Expense of Servicing Rights

The estimated amortization expense of servicing rights for the remainder of 2023 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2023		$	1,072
2024		958
2025		855
2026		761
2027		641
Thereafter		4,173
Total		$	8,460

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Deposits (Tables)

3 Months Ended

Mar. 31, 2023

Deposits [Abstract]

Schedule of Components of Weighted Average Interest Rate and Balance of Deposits

Deposits and their respective weighted average interest rate at March 31, 2023 and December 31, 2022 consisted of the following:

	At March 31, 2023				At December 31, 2022
	Weighted Average Interest Rate		Amount		Weighted Average Interest Rate		Amount
	(Dollars in thousands)
Noninterest-bearing deposits	—	%	$	1,799,225	—	%	$	2,047,263
Demand deposits	2.56		2,433,575		2.02		2,321,748
Savings deposits	0.39		955,530		0.25		1,025,431
Time deposits	2.91		646,327		2.07		519,084
Total	1.45	%	$	5,834,657	1.02	%	$	5,913,526

Schedule Of Maturities Of Time Deposits

At March 31, 2023, the scheduled maturities of time deposits were as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2023		$	259,767
2024		196,555
2025		158,162
2026		14,600
2027		8,246
Thereafter		8,997
Total		$	646,327

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Borrowings (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Summary of Borrowings by Type

The following is a summary of borrowings by type. Short-term borrowings consist of overnight borrowings and term borrowings with an original maturity of one year or less.

	At March 31, 2023				At December 31, 2022
(Dollars in thousands)	Balance at End of Period		Weighted Average Interest Rate at End of Period		Balance at End of Period		Weighted Average Interest Rate at End of Period
Short-term borrowings:
FHLB borrowings	$	163,700	5.15	%	$	125,000	4.45	%
Federal funds purchased	90,000		5.26		60,000		4.63
Customer repurchase agreements	18,181		0.05		12,141		0.05
Long-term debt:
FHLB advances	$	220,000	3.52	%	$	95,000	1.34	%
Subordinated notes	148,385		6.08		148,260		6.09

Schedule of Maturities of Long-Term FHLB Advances

Long-term advances with the FHLB of Pittsburgh mature as follows:

(Dollars in thousands)	As of March 31, 2023		Weighted Average Rate
Remainder of 2023	$	10,000	3.02	%
2024	85,000		2.10
2025	50,000		4.59
2026	50,000		4.42
2027	—		—
Thereafter	25,000		4.61
Total	$	220,000	3.52	%

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Retirement Plans and Other Postretirement Benefits (Tables)

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

Components of Net Periodic Benefit Cost (Income)

Information with respect to the Retirement Plans and Other Postretirement Benefits follows: 

	Three Months Ended March 31,
	2023		2022		2023		2022
(Dollars in thousands)	Retirement Plans				Other Post Retirement Benefits
Service cost	$	130	$	137	$	19	$	30
Interest cost	597		390		32		24
Expected loss on plan assets	(770)		(933)		—		—
Amortization of net actuarial loss (gain)	250		204		(4)		14
Net periodic benefit cost (income)	$	207	$	(202)	$	47	$	68

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Stock-Based Incentive Plan (Tables)

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Status of Options Granted Under Long-Term Incentive Plan

The following is a summary of the Corporation's stock option activity and related information for the three months ended March 31, 2023:

(Dollars in thousands, except per share data)	Shares Under Option	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value at March 31, 2023
Outstanding at December 31, 2022	294,111	$	26.11
Exercised	(4,167)	17.89
Outstanding at March 31, 2023	289,944	26.23		3.9	$	302
Exercisable at March 31, 2023	289,944	26.23		3.9	302

Summary of Nonvested Restricted Stock Units

The following is a summary of nonvested restricted stock units at March 31, 2023 including changes during the three months then ended:

(Dollars in thousands, except per share data)	Nonvested Stock Units	Weighted Average Grant Date Fair Value
Nonvested stock units at December 31, 2022	408,264	$	25.57
Granted	213,429	25.04
Added by performance factor	814	19.20
Vested	(174,798)	21.95
Forfeited	(6,114)	27.62
Nonvested stock units at March 31, 2023	441,595	$	26.71

Certain Information Regarding Restricted Stock Units

Certain information regarding restricted stock units is summarized below for the periods indicated:

	Three Months Ended March 31,
(Dollars in thousands, except per share data)	2023		2022
Restricted stock units granted	213,429		164,319
Weighted average grant date fair value	$	25.04	$	28.36
Intrinsic value of units granted	$	5,345	$	4,660
Restricted stock units vested	174,798		118,834
Weighted average grant date fair value	$	21.95	$	23.29
Intrinsic value of units vested	$	4,385	$	3,377

Schedule of Unrecognized Compensation Cost, Nonvested Restricted Stock Units

The total unrecognized compensation expense and the weighted average period over which unrecognized compensation expense is expected to be recognized related to nonvested restricted stock units at March 31, 2023 is presented below:

(Dollars in thousands)	Unrecognized Compensation Cost		Weighted-Average Period Remaining (Years)
Restricted stock units	$	9,603	2.3

Compensation Expense Related to Stock Incentive Plans Recognized

The following table presents information related to the Corporation’s compensation expense related to stock incentive plans recognized for the periods indicated:

	Three Months Ended March 31,
(Dollars in thousands)	2023		2022
Stock-based compensation expense:
Restricted stock units	$	1,110	$	934
Employee stock purchase plan	29		25
Total	$	1,139	$	959
Tax benefit on nonqualified stock option expense and disqualifying dispositions of incentive stock options	$	35	$	1

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Accumulated Other Comprehensive (Loss) Income (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Components of Accumulated Other Comprehensive (Loss) Income, Net of Taxes

The following table shows the components of accumulated other comprehensive (loss) income, net of taxes, for the periods presented:

(Dollars in thousands)	Net Unrealized (Losses) Gains on Available-for-Sale Investment Securities		Net Change Related to Derivatives Used for Cash Flow Hedges		Net Change Related to Defined Benefit Pension Plans		Accumulated Other Comprehensive (Loss) Income
Balance, December 31, 2022	$	(40,066)	$	(6,831)	$	(15,207)	$	(62,104)
Other comprehensive income	4,491		1,869		194		6,554
Balance, March 31, 2023	$	(35,575)	$	(4,962)	$	(15,013)	$	(55,550)
Balance, December 31, 2021	$	(1,216)	$	(159)	$	(14,978)	$	(16,353)
Other comprehensive (loss) income	(15,842)		114		172		(15,556)
Balance, March 31, 2022	$	(17,058)	$	(45)	$	(14,806)	$	(31,909)

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Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional Amounts and Fair Value of Derivatives Designated as Hedging Instruments

The following table presents the notional amounts and fair values of derivatives designated as hedging instruments recorded on the condensed consolidated balance sheets at March 31, 2023 and December 31, 2022. The Corporation pledges cash or securities to cover the negative fair value of derivative instruments. Cash collateral associated with derivative instruments are not added to or netted against the fair value amounts.

			Derivative Assets			Derivative Liabilities
(Dollars in thousands)	Notional Amount		Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
At March 31, 2023
Interest rate swap - cash flow hedge	$	250,000		$	—	Other liabilities	$	6,282
Total	$	250,000		$	—		$	6,282
At December 31, 2022
Interest rate swap - cash flow hedge	$	250,000		$	—	Other liabilities	$	8,647
Total	$	250,000		$	—		$	8,647

Notional Amounts and Fair Value of Derivatives Not Designated as Hedging Instruments

The following table presents the notional amounts and fair values of derivatives not designated as hedging instruments recorded on the condensed consolidated balance sheets at March 31, 2023 and December 31, 2022:

			Derivative Assets			Derivative Liabilities
(Dollars in thousands)	Notional Amount		Balance Sheet Classification	Fair Value		Balance Sheet Classification	Fair Value
At March 31, 2023
Credit derivatives	$	792,838		$	—	Other liabilities	$	330
Interest rate locks with customers	21,208		Other assets	265			—
Forward loan sale commitments	26,633			—		Other liabilities	6
Total	$	840,679		$	265		$	336
At December 31, 2022
Credit derivatives	$	815,469		$	—	Other liabilities	$	360
Interest rate locks with customers	10,269		Other assets	119			—
Forward loan sale commitments	15,306		Other assets	29			—
Total	$	841,044		$	148		$	360

Income for Derivatives Designated as Hedging Instruments

The following table presents amounts included in the condensed consolidated statements of income for derivatives designated as hedging instruments for the periods indicated:

	Statement of Income Classification	Three Months Ended
		March 31,
(Dollars in thousands)		2023		2022
Interest rate swap—cash flow hedge—net interest payments	Interest expense	$	1,060	$	68
Total net loss		$	(1,060)	$	(68)

Income for Derivatives Not Designated as Hedging Instruments

The following table presents amounts included in the condensed consolidated statements of income for derivatives not designated as hedging instruments for the periods indicated:

	Statement of Income Classification	Three Months Ended
		March 31,
(Dollars in thousands)		2023		2022
Credit derivatives	Other noninterest income	$	86	$	450
Interest rate locks with customers	Net gain (loss) on mortgage banking activities	146		(1,010)
Forward loan sale commitments	Net (loss) gain on mortgage banking activities	(34)		719
Total net gain		$	198	$	159

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The following table presents amounts included in accumulated other comprehensive (loss) income for derivatives designated as hedging instruments at March 31, 2023 and December 31, 2022:

(Dollars in thousands)	Accumulated Other Comprehensive (Loss) Income	At March 31, 2023		At December 31, 2022
Interest rate swap—cash flow hedge	Fair value, net of taxes	$	(4,962)	$	(6,831)
Total		$	(4,962)	$	(6,831)

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Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2023

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 March 31, 2023 and December 31, 2022, classified using the fair value hierarchy:

	At March 31, 2023
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ Liabilities at Fair Value
Assets:
Available-for-sale securities:
State and political subdivisions	$	—	$	2,297	$	—	$	2,297
Residential mortgage-backed securities	—		280,794		—		280,794
Collateralized mortgage obligations	—		2,271		—		2,271
Corporate bonds	—		82,294		—		82,294
Total available-for-sale securities	—		367,656		—		367,656
Equity securities:
Equity securities - financial services industry	711		—		—		711
Money market mutual funds	2,394		—		—		2,394
Total equity securities	3,105		—		—		3,105
Loans held for sale	—		5,425		—		5,425
Interest rate locks with customers*	—		265		—		265
Total assets	$	3,105	$	373,346	$	—	$	376,451
Liabilities:
Contingent consideration liability	$	—	$	—	$	1,154	$	1,154
Interest rate swaps*	—		6,282		—		6,282
Credit derivatives*	—		—		330		330
Forward loan sale commitments*	—		6		—		6
Total liabilities	$	—	$	6,288	$	1,484	$	7,772

* Such financial instruments are recorded at fair value as further described in Note 11, "Derivative Instruments and Hedging Activities."

The $330 thousand of credit derivatives liability represented the Credit Valuation Adjustment (CVA), which is obtained from real-time financial market data, of 124 interest rate swaps with a notional amount of $792.8 million. The March 31, 2023 CVA assumed a zero-deal recovery percentage based on the most recent index credit curve.

The contingent consideration liability resulting from the Sheaffer 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, 2022
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets/ 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 industry	780		—		—		780
Money market mutual funds	1,799		—		—		1,799
Total equity securities	2,579		—		—		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 11, "Derivative Instruments and Hedging Activities."

The $360 thousand of credit derivatives liability represented the CVA, which is obtained from real-time financial market data, of 127 interest rate swaps with a notional amount of $815.5 million. The December 31, 2022 CVA assumed a zero-deal recovery percentage based on the most recent index credit curve.

The contingent consideration liability resulting from the Sheaffer 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.

Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Level 3 Rollforward

The following table includes a roll forward of 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, 2023 and 2022:

	Three Months Ended March 31, 2023
(Dollars in thousands)	Balance at December 31, 2022		Additions		Payments received		Increase in value		Balance at March 31, 2023
Credit derivatives	(360)		(57)		—		87		(330)
Net total	$	(360)	$	(57)	$	—	$	87	$	(330)

	Three Months Ended March 31, 2022
(Dollars in thousands)	Balance at December 31, 2021		Additions		Payments received		Increase (decrease) in value		Balance at March 31, 2022
Loans	48		—		(35)		—		13
Credit derivatives	(381)		(526)		—		450		(457)
Net total	$	(333)	$	(526)	$	(35)	$	450	$	(444)

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, 2023 and 2022:

	Three Months Ended March 31, 2023
(Dollars in thousands)	Balance at December 31, 2022		Payment of Contingent Consideration		Adjustment of Contingent Consideration		Balance at March 31, 2023
Paul I. Sheaffer Insurance Agency	$	1,765	$	635	$	24	$	1,154
Total contingent consideration liability	$	1,765	$	635	$	24	$	1,154

	Three Months Ended March 31, 2022
(Dollars in thousands)	Balance at December 31, 2021		Payment of Contingent Consideration		Adjustment of Contingent Consideration		Balance at March 31, 2022
Paul I. Sheaffer Insurance Agency	$	1,629	$	—	$	34	$	1,663
Total contingent consideration liability	$	1,629	$	—	$	34	$	1,663

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, 2023 and December 31, 2022:

	At March 31, 2023
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets at Fair Value
Individually analyzed loans held for investment	$	—	$	—	$	10,389	$	10,389
Other real estate owned	—		—		19,000		19,000
Total	$	—	$	—	$	29,389	$	29,389

	At December 31, 2022
(Dollars in thousands)	Level 1		Level 2		Level 3		Assets 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

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 condensed consolidated balance sheets but for which the fair value is required to be disclosed at March 31, 2023 and December 31, 2022. The disclosed fair values are classified using the fair value hierarchy.

	At March 31, 2023
(Dollars in thousands)	Level 1		Level 2		Level 3		Fair Value		Carrying Amount
Assets:
Cash and short-term interest-earning assets	$	138,324	$	—	$	—	$	138,324	$	138,324
Held-to-maturity securities	—		133,147		—		133,147		151,347
Federal Home Loan Bank, Federal Reserve Bank and other stock	NA		NA		NA		NA		43,792
Net loans and leases held for investment	—		—		6,097,345		6,097,345		6,149,381
Servicing rights	—		—		16,827		16,827		8,460
Total assets	$	138,324	$	133,147	$	6,114,172	$	6,385,643	$	6,491,304
Liabilities:
Deposits:
Demand and savings deposits, non-maturity	$	5,188,330	$	—	$	—	$	5,188,330	$	5,188,330
Time deposits	—		637,072		—		637,072		646,327
Total deposits	5,188,330		637,072		—		5,825,402		5,834,657
Short-term borrowings	—		271,881		—		271,881		271,881
Long-term debt	—		220,903		—		220,903		220,000
Subordinated notes	—		141,250		—		141,250		148,385
Total liabilities	$	5,188,330	$	1,271,106	$	—	$	6,459,436	$	6,474,923

	At December 31, 2022
(Dollars in thousands)	Level 1		Level 2		Level 3		Fair 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 stock	NA		NA		NA		NA		33,841
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 deposits	5,394,442		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

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Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Schedule of Segment Reporting

The following table provides total assets by reportable business segment as of the dates indicated.

(Dollars in thousands)	At March 31, 2023		At December 31, 2022		At March 31, 2022
Banking	$	7,238,593	$	7,104,727	$	6,997,081
Wealth Management	59,127		58,239		53,174
Insurance	46,059		44,728		42,240
Other	15,212		14,322		15,245
Consolidated assets	$	7,358,991	$	7,222,016	$	7,107,740

The following tables provide reportable segment-specific information and reconciliations to consolidated financial information for the three months ended March 31, 2023 and 2022.

	Three Months Ended
	March 31, 2023
(Dollars in thousands)	Banking		Wealth Management		Insurance		Other		Consolidated
Interest income	$	83,224	$	20	$	—	$	9	$	83,253
Interest expense	20,676		979		—		2,281		23,936
Net interest income (expense)	62,548		(959)		—		(2,272)		59,317
Provision for credit losses	3,387		—		—		—		3,387
Noninterest income	6,237		6,759		6,720		(36)		19,680
Noninterest expense	39,932		4,860		3,935		802		49,529
Intersegment (revenue) expense*	(237)		115		122		—		—
Income (loss) before income taxes	25,703		825		2,663		(3,110)		26,081
Income tax expense (benefit)	5,185		164		583		(885)		5,047
Net income (loss)	$	20,518	$	661	$	2,080	$	(2,225)	$	21,034
Net capital expenditures	$	2,201	$	3	$	56	$	325	$	2,585

	Three Months Ended
	March 31, 2022
(Dollars in thousands)	Banking		Wealth Management		Insurance		Other		Consolidated
Interest income	$	51,189	$	1	$	—	$	8	$	51,198
Interest expense	3,180		30		—		1,328		4,538
Net interest income (expense)	48,009		(29)		—		(1,320)		46,660
Reversal of provision for credit losses	(3,450)		—		—		—		(3,450)
Noninterest income	7,370		7,305		5,764		31		20,470
Noninterest expense	36,488		4,709		3,865		350		45,412
Intersegment (revenue) expense*	(433)		211		222		—		—
Income (loss) before income taxes	22,774		2,356		1,677		(1,639)		25,168
Income tax expense (benefit)	4,543		492		358		(542)		4,851
Net income (loss)	$	18,231	$	1,864	$	1,319	$	(1,097)	$	20,317
Net capital expenditures	$	(5,592)	$	63	$	15	$	20	$	(5,494)

*Includes an allocation of general and administrative expenses from both the parent holding company and the Bank. These expenses are generally allocated based upon number of employees and square footage utilized.

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Earnings per Share - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Net income	$ 21,034	$ 20,317
Weighted Average Number of Shares Issued, Basic	(29,312)	(29,542)
Effect of dilutive securities—employee stock options and restricted stock units	194	196
Denominator for diluted earnings per share—adjusted weighted-average shares outstanding	29,506	29,738
Basic (in dollars per share)	$ 0.72	$ 0.69
Diluted earnings per share	$ 0.71	$ 0.68
Average antidilutive options and restricted stock units excluded from computation of diluted earnings per share	229	249

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Investment Securities - Narrative (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) Investment	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($) Investment	Dec. 31, 2021 USD ($)
Debt Securities, Available-for-sale [Line Items]
Carrying value of securities pledged to secure public deposits and other contractual obligations	$ 327,800		$ 429,400
Pledging requirements for credit derivatives and SWAP agreements - securities		$ 0	$ 0
Number of investments in non federal issuer representing more than 10% of shareholder's equity | Investment	0		0
Maximum investment in any single non-federal issuer representing shareholders equity	10.00%		10.00%
Fair value HTM in unrealized loss with no ACL	$ 133,147		$ 134,068
Unrealized loss included in fair value of securities HTM in unrealized loss position for which an ACL has not been recorded	18,200		20,659
Fair value AFS in unrealized loss with no ACL	278,825		266,810
Unrealized loss included in fair value of securities AFS in unrealized loss position for which an ACL has not been recorded	37,615		42,445
Fair value of securities AFS in unrealized loss position for which an ACL has been recorded, net of allowance	81,300
Unrealized loss position included in fair value of securities AFS in unrealized loss position for which an ACL has been recorded	8,900
Allowance for credit losses	1,432		1,140
Corporate Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Fair value AFS in unrealized loss with no ACL			500
Unrealized loss included in fair value of securities AFS in unrealized loss position for which an ACL has not been recorded			1
Allowance for credit losses	$ 1,432	1,275	$ 1,140	$ 929
Number of securities | Investment	39
Available-for-sale Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Accrued interest receivable	$ 1,200
Allowance for credit losses	1,400
Other Noninterest Income [Member] | Equity Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Net realized gain on investment securities	$ (69)	$ 1

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Investment Securities - Held-to-Maturity and Available-for-Sale, Scheduled Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]
Securities, Held-to-Maturity, Amortized Cost	$ 151,347	$ 154,727
Securities Held-to-Maturity, Gross Unrealized Gains	0	0
Debt Securities, Held-to-Maturity, Accumulated Unrecognized Loss	(18,200)	(20,659)
Debt Securities, Held-to-Maturity, Allowance for Credit Loss, Excluding Accrued Interest	0	0
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, after Allowance for Credit Loss	133,147	134,068
Debt Securities, Available-for-sale [Abstract]
Investment securities available-for-sale (amortized cost $414,118 and $402,111, net of allowance for credit losses of $1,432 and $1,140 at March 31, 2023 and December 31, 2022, respectively)	414,118	402,111
Securities Available-for-Sale, Gross Unrealized Gain	37	10
Securities Available-for-Sale, Gross Unrealized Losses	(45,067)	(50,725)
Allowance for credit losses	1,432	1,140
Debt securities	367,656	350,256
State and Political Subdivisions [Member]
Debt Securities, Available-for-sale [Abstract]
Securities Available-for-Sale, Amortized Cost, Within 1 Year	1,030
Securities Available-for-Sale,Gross Unrealized Gain, Within 1 Year	1
Securities Available-for-Sale, Gross Unrealized Losses, Within 1 Year	0
Securities Available-for-Sale, Allowance for Credit Loss, Within 1 Year	0
Securities Available-for-Sale, Fair Value, Within 1 Year	1,031
Securities Available-for-Sale, Amortized Cost, After 1 Year to 5 Years	1,297	2,327
Securities Available-for-Sale,Gross Unrealized Gain, After 1 Year to 5 Years	0	0
Securities Available-for-Sale, Gross Unrealized Losses, After 1 Year to 5 Years	(31)	(42)
Securities Available-for-sale, Allowance for Credit Loss, After 1 Year to 5 Years	0	0
Securities Available-for-Sale, Fair Value, After 1 Year to 5 Years	1,266	2,285
Investment securities available-for-sale (amortized cost $414,118 and $402,111, net of allowance for credit losses of $1,432 and $1,140 at March 31, 2023 and December 31, 2022, respectively)	2,327	2,327
Securities Available-for-Sale, Gross Unrealized Gain	1	0
Securities Available-for-Sale, Gross Unrealized Losses	(31)	(42)
Allowance for credit losses	0	0
Debt securities	2,297	2,285
Residential Mortgage-Backed Securities [Member]
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]
Securities Held-to-Maturity, Amortized Cost, After 1 Year to 5 Years	2,554	1,654
Securities Held-to-Maturity, Gross Unrealized Gains, After 1 Year to 5 Years	0	0
Securities Held-to-Maturity, Gross Unrealized Losses, After 1 Year to 5 Years	(87)	(70)
Securities Held-to-Maturity, Allowance for Credit Loss, After 1 Year to 5 Years		0
Securities Held-to-Maturity, Fair Value, After 1 Year to 5 Years	2,467	1,584
Securities Held-to-Maturity, Amortized Cost, After 5 Years to 10 Years	7,531	6,076
Securities Held-to-Maturity, Gross Unrealized Gains, After 5 Years to 10 Years	0	0
Securities Held-to-Maturity, Gross Unrealized Losses, After 5 Years to 10 Years	(398)	(342)
Securities, Held-to-Maturity, Allowance for Credit Loss, After 5 Years To 10 Years	0	0
Securities Held-to-Maturity, Fair Value, After 5 Years to 10 Years	7,133	5,734
Securities Held-to-Maturity, Amortized Cost, Over 10 Years	141,262	146,997
Securities Held-to-Maturity, Gross Unrealized Gain, Over 10 Years	0	0
Securities Held-to-Maturity, Gross Unrealized Losses, Over 10 Years	(17,715)	(20,247)
Securities Held-to-maturity, Allowance for Credit Loss, Over 10 Years	0	0
Securities Held-to-Maturity, Fair Value, After 10 years	123,547	126,750
Securities, Held-to-Maturity, Amortized Cost	151,347	154,727
Securities Held-to-Maturity, Gross Unrealized Gains	0	0
Debt Securities, Held-to-Maturity, Accumulated Unrecognized Loss	(18,200)	(20,659)
Debt Securities, Held-to-Maturity, Allowance for Credit Loss, Excluding Accrued Interest	0	0
Debt Securities, Held-to-Maturity, Excluding Accrued Interest, after Allowance for Credit Loss	133,147	134,068
Debt Securities, Available-for-sale [Abstract]
Securities Available-for-Sale, Amortized Cost, After 1 Year to 5 Years	784	864
Securities Available-for-Sale,Gross Unrealized Gain, After 1 Year to 5 Years	0	0
Securities Available-for-Sale, Gross Unrealized Losses, After 1 Year to 5 Years	(29)	(37)
Securities Available-for-sale, Allowance for Credit Loss, After 1 Year to 5 Years	0	0
Securities Available-for-Sale, Fair Value, After 1 Year to 5 Years	755	827
Securities Available-for-Sale, Amortized Cost, After 5 Years to 10 Years	15,617	10,399
Securities Available-for-Sale,Gross Unrealized Gain, After 5 Years to 10 Years	0	0
Securities Available-for-Sale, Gross Unrealized Losses, After 5 Years to 10 Years	(1,194)	(815)
Securities Available-for-Sale, Allowance for Credit Loss, After 5 Years to 10 Years	0	0
Securities Available-for-Sale, Fair Value, After 5 Years to 10 Years	14,423	9,584
Securities Available-for-Sale, Amortized Cost, Over 10 Years	301,712	294,261
Securities Available-for-Sale,Gross Unrealized Gain, Over 10 Years	32	7
Securities Available-for-Sale, Gross Unrealized Losses, Over 10 Years	(36,128)	(41,291)
Securities Available-for-Sale, Allowance for Credit Loss, After 10 Years	0	0
Securities Available-for-Sale, Fair Value, Over 10 Years	265,616	252,977
Investment securities available-for-sale (amortized cost $414,118 and $402,111, net of allowance for credit losses of $1,432 and $1,140 at March 31, 2023 and December 31, 2022, respectively)	318,113	305,524
Securities Available-for-Sale, Gross Unrealized Gain	32	7
Securities Available-for-Sale, Gross Unrealized Losses	(37,351)	(42,143)
Allowance for credit losses	0	0
Debt securities	280,794	263,388
Collateralized Mortgage Obligations [Member]
Debt Securities, Available-for-sale [Abstract]
Securities Available-for-Sale, Amortized Cost, After 5 Years to 10 Years	305	324
Securities Available-for-Sale,Gross Unrealized Gain, After 5 Years to 10 Years	0	0
Securities Available-for-Sale, Gross Unrealized Losses, After 5 Years to 10 Years	(18)	(22)
Securities Available-for-Sale, Allowance for Credit Loss, After 5 Years to 10 Years	0	0
Securities Available-for-Sale, Fair Value, After 5 Years to 10 Years	287	302
Securities Available-for-Sale, Amortized Cost, Over 10 Years	2,199	2,257
Securities Available-for-Sale,Gross Unrealized Gain, Over 10 Years	0	0
Securities Available-for-Sale, Gross Unrealized Losses, Over 10 Years	(215)	(237)
Securities Available-for-Sale, Allowance for Credit Loss, After 10 Years	0	0
Securities Available-for-Sale, Fair Value, Over 10 Years	1,984	2,020
Investment securities available-for-sale (amortized cost $414,118 and $402,111, net of allowance for credit losses of $1,432 and $1,140 at March 31, 2023 and December 31, 2022, respectively)	2,504	2,581
Securities Available-for-Sale, Gross Unrealized Gain	0	0
Securities Available-for-Sale, Gross Unrealized Losses	(233)	(259)
Allowance for credit losses	0	0
Debt securities	2,271	2,322
Corporate Bonds [Member]
Debt Securities, Available-for-sale [Abstract]
Securities Available-for-Sale, Amortized Cost, Within 1 Year	1,500	1,000
Securities Available-for-Sale,Gross Unrealized Gain, Within 1 Year	0	0
Securities Available-for-Sale, Gross Unrealized Losses, Within 1 Year	(1)	0
Securities Available-for-Sale, Allowance for Credit Loss, Within 1 Year	(1)	0
Securities Available-for-Sale, Fair Value, Within 1 Year	1,498	1,000
Securities Available-for-Sale, Amortized Cost, After 1 Year to 5 Years	29,674	30,679
Securities Available-for-Sale,Gross Unrealized Gain, After 1 Year to 5 Years	4	3
Securities Available-for-Sale, Gross Unrealized Losses, After 1 Year to 5 Years	(1,163)	(1,516)
Securities Available-for-sale, Allowance for Credit Loss, After 1 Year to 5 Years	(200)	(152)
Securities Available-for-Sale, Fair Value, After 1 Year to 5 Years	28,315	29,014
Securities Available-for-Sale, Amortized Cost, After 5 Years to 10 Years	60,000	60,000
Securities Available-for-Sale,Gross Unrealized Gain, After 5 Years to 10 Years	0	0
Securities Available-for-Sale, Gross Unrealized Losses, After 5 Years to 10 Years	(6,288)	(6,765)
Securities Available-for-Sale, Allowance for Credit Loss, After 5 Years to 10 Years	(1,231)	(988)
Securities Available-for-Sale, Fair Value, After 5 Years to 10 Years	52,481	52,247
Investment securities available-for-sale (amortized cost $414,118 and $402,111, net of allowance for credit losses of $1,432 and $1,140 at March 31, 2023 and December 31, 2022, respectively)	91,174	91,679
Securities Available-for-Sale, Gross Unrealized Gain	4	3
Securities Available-for-Sale, Gross Unrealized Losses	(7,452)	(8,281)
Allowance for credit losses	1,432	1,140	$ 1,275	$ 929
Debt securities	$ 82,294	$ 82,261

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Investment Securities - Information Related to Sales of Securities Available-for-Sale (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Securities available-for-sale:
Proceeds from sales	$ 0	$ 1,530
Gross realized gains on sales	0	30
Tax expense related to net realized gains on sales	$ 0	$ 6

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Investment Securities - Amount of Securities in Unrealized Loss Position (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than twelve months, fair value	$ 22,966	$ 65,044
Debt securities, held-to-maturity, continuous unrealized loss position, less than 12 months, accumulated loss	(862)	(5,894)
Twelve months or longer, fair value	110,181	69,024
Debt securities, held-to-maturity, continuous unrealized loss position, 12 months or longer, accumulated loss	(17,338)	(14,765)
Total, fair value	133,147	134,068
Debt securities, held-to-maturity, unrealized loss position, accumulated loss	(18,200)	(20,659)
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract]
Less than twelve months, fair value	84,540	130,888
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss	(4,885)	(13,908)
Twelve months or longer, fair value	194,285	135,922
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss	(32,730)	(28,537)
Total, fair value	278,825	266,810
Available-for-sale securities, continuous unrealized loss position, accumulated loss	(37,615)	(42,445)
Residential Mortgage-Backed Securities [Member]
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less than twelve months, fair value	22,966	65,044
Debt securities, held-to-maturity, continuous unrealized loss position, less than 12 months, accumulated loss	(862)	(5,894)
Twelve months or longer, fair value	110,181	69,024
Debt securities, held-to-maturity, continuous unrealized loss position, 12 months or longer, accumulated loss	(17,338)	(14,765)
Total, fair value	133,147	134,068
Debt securities, held-to-maturity, unrealized loss position, accumulated loss	(18,200)	(20,659)
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract]
Less than twelve months, fair value	84,540	128,831
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss	(4,885)	(13,843)
Twelve months or longer, fair value	190,747	133,902
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss	(32,466)	(28,300)
Total, fair value	275,287	262,733
Available-for-sale securities, continuous unrealized loss position, accumulated loss	(37,351)	(42,143)
State and Political Subdivisions [Member]
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract]
Less than twelve months, fair value	0	1,255
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss	0	(42)
Twelve months or longer, fair value	1,267	0
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss	(31)	0
Total, fair value	1,267	1,255
Available-for-sale securities, continuous unrealized loss position, accumulated loss	(31)	(42)
Collateralized Mortgage Obligations [Member]
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract]
Less than twelve months, fair value	0	302
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss	0	(22)
Twelve months or longer, fair value	2,271	2,020
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss	(233)	(237)
Total, fair value	2,271	2,322
Available-for-sale securities, continuous unrealized loss position, accumulated loss	$ (233)	(259)
Corporate Bonds [Member]
Debt Securities, Available-for-sale, Unrealized Gain (Loss) [Abstract]
Less than twelve months, fair value		500
Available-for-sale securities, continuous unrealized loss position, less than 12 months, accumulated loss		(1)
Twelve months or longer, fair value		0
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, accumulated loss		0
Total, fair value		500
Available-for-sale securities, continuous unrealized loss position, accumulated loss		$ (1)

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Investment Securities - Allowance for Credit Loss Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Securities, available-for-sale, allowance for credit loss, beginning balance	$ (1,140)
Securities, available-for-sale, allowance for credit loss, ending balance	(1,432)
Corporate Bonds [Member]
Debt Securities, Available-for-sale [Line Items]
Securities, available-for-sale, allowance for credit loss, beginning balance	(1,140)	$ (929)
Additions for securities for which no previous expected credit losses were recognized		(45)
Change in securities for which a previous expected credit loss was recognized	292	(301)
Securities, available-for-sale, allowance for credit loss, ending balance	$ (1,432)	$ (1,275)

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Loans and Leases - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases receivable, net of deferred income	$ 6,239,804,000	$ 6,123,230,000	$ 5,400,786,000
Amount of accrued interest receivable excluded from amortized cost, modified	26,000
Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Loans and leases receivable, net of deferred income	0
Minimum [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Amount of loan relationship balance, loans reviewed annually	1,000,000
Maximum [Member]
Financing Receivable, Credit Quality Indicator [Line Items]
Amount of loan relationship balance, loans reviewed on a performance basis	$ 1,000,000

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Loans and Leases - Summary of Major Loan and Lease Categories (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, net of deferred income	$ 6,239,804	$ 6,123,230	$ 5,400,786
Loans and Leases Receivable, Allowance	(80,034)	(79,004)
Net loans and leases held for investment	6,159,770	6,044,226
Unearned lease income	24,386	21,932
Net deferred costs, included in the above table	6,633	6,053
Overdraft deposits included in the above table	154	93
Commercial Financial And Agricultural [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, net of deferred income	1,032,753	1,088,928	942,783
Real-Estate Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, net of deferred income	3,128,210	3,027,955	2,816,737
Real-Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, net of deferred income	376,569	381,811	285,083
Real Estate Residential Secured For Business Purpose [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, net of deferred income	498,505	478,254	412,486
Real Estate-Residential Secured For Personal Purpose [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, net of deferred income	779,557	730,395	568,735
Real Estate Home Equity Secured For Personal Purpose [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, net of deferred income	172,073	176,699	160,134
Loans to Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, net of deferred income	28,656	27,873	26,249
Lease Financings [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases receivable, net of deferred income	$ 223,481	$ 211,315	$ 188,579

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Loans and Leases - Age Analysis of Past Due Loans and Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accruing loans and leases	$ 6,228,442	$ 6,109,877
Nonaccrual loans and lease	11,362	13,353
Total loans and leases held for investment	6,239,804	6,123,230	$ 5,400,786
Financial Asset, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	5,552	14,254
Financial Asset, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	1,217	1,717
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	1,996	875
Financial Asset Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	8,765	16,846
Financial Asset Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	6,219,677	6,093,031
Commercial Financial And Agricultural [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accruing loans and leases	1,029,330	1,083,856
Nonaccrual loans and lease	3,423	5,072
Total loans and leases held for investment	1,032,753	1,088,928	942,783
Commercial Financial And Agricultural [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	1,348	1,616
Commercial Financial And Agricultural [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0	343
Commercial Financial And Agricultural [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0	0
Commercial Financial And Agricultural [Member] | Financial Asset Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	1,348	1,959
Commercial Financial And Agricultural [Member] | Financial Asset Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	1,027,982	1,081,897
Real-Estate Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accruing loans and leases	3,123,922	3,023,418
Nonaccrual loans and lease	4,288	4,537
Total loans and leases held for investment	3,128,210	3,027,955	2,816,737
Real-Estate Commercial [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	328	3,281
Real-Estate Commercial [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0	290
Real-Estate Commercial [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	1,195	20
Real-Estate Commercial [Member] | Financial Asset Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	1,523	3,591
Real-Estate Commercial [Member] | Financial Asset Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	3,122,399	3,019,827
Real-Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accruing loans and leases	376,186	381,811
Nonaccrual loans and lease	383	0
Total loans and leases held for investment	376,569	381,811	285,083
Real-Estate Construction [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0	315
Real-Estate Construction [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0	0
Real-Estate Construction [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0	0
Real-Estate Construction [Member] | Financial Asset Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0	315
Real-Estate Construction [Member] | Financial Asset Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	376,186	381,496
Real Estate Residential Secured For Business Purpose [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accruing loans and leases	497,746	477,241
Nonaccrual loans and lease	759	1,013
Total loans and leases held for investment	498,505	478,254	412,486
Real Estate Residential Secured For Business Purpose [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	308	375
Real Estate Residential Secured For Business Purpose [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	768	203
Real Estate Residential Secured For Business Purpose [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0	263
Real Estate Residential Secured For Business Purpose [Member] | Financial Asset Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	1,076	841
Real Estate Residential Secured For Business Purpose [Member] | Financial Asset Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	496,670	476,400
Real Estate-Residential Secured For Personal Purpose [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accruing loans and leases	778,057	728,406
Nonaccrual loans and lease	1,500	1,989
Total loans and leases held for investment	779,557	730,395	568,735
Real Estate-Residential Secured For Personal Purpose [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	1,506	4,127
Real Estate-Residential Secured For Personal Purpose [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0	162
Real Estate-Residential Secured For Personal Purpose [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0	319
Real Estate-Residential Secured For Personal Purpose [Member] | Financial Asset Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	1,506	4,608
Real Estate-Residential Secured For Personal Purpose [Member] | Financial Asset Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	776,551	723,798
Real Estate Home Equity Secured For Personal Purpose [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accruing loans and leases	171,125	175,959
Nonaccrual loans and lease	948	740
Total loans and leases held for investment	172,073	176,699	160,134
Real Estate Home Equity Secured For Personal Purpose [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	835	953
Real Estate Home Equity Secured For Personal Purpose [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	74	225
Real Estate Home Equity Secured For Personal Purpose [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0	0
Real Estate Home Equity Secured For Personal Purpose [Member] | Financial Asset Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	909	1,178
Real Estate Home Equity Secured For Personal Purpose [Member] | Financial Asset Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	170,216	174,781
Loans to Individuals [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accruing loans and leases	28,656	27,873
Nonaccrual loans and lease	0	0
Total loans and leases held for investment	28,656	27,873	26,249
Loans to Individuals [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	20	32
Loans to Individuals [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	4	153
Loans to Individuals [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	47	39
Loans to Individuals [Member] | Financial Asset Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	71	224
Loans to Individuals [Member] | Financial Asset Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	28,585	27,649
Lease Financings [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accruing loans and leases	223,420	211,313
Nonaccrual loans and lease	61	2
Total loans and leases held for investment	223,481	211,315	$ 188,579
Lease Financings [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	1,207	3,555
Lease Financings [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	371	341
Lease Financings [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	754	234
Lease Financings [Member] | Financial Asset Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	2,332	4,130
Lease Financings [Member] | Financial Asset Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	$ 221,088	$ 207,183

XML

Loans and Leases - Nonperforming Loans and Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Nonperforming Loans And Leases [Line Items]
Nonaccrual loans and lease	$ 11,362	$ 13,353
Loans and lease 90 days or more past due and accruing interest	1,996	875
Total nonperforming loans and leases	13,358	14,228
Commercial Financial And Agricultural [Member]
Nonperforming Loans And Leases [Line Items]
Nonaccrual loans and lease	3,423	5,072
Loans and lease 90 days or more past due and accruing interest	0	0
Total nonperforming loans and leases	3,423	5,072
Real-Estate Commercial [Member]
Nonperforming Loans And Leases [Line Items]
Nonaccrual loans and lease	4,288	4,537
Loans and lease 90 days or more past due and accruing interest	1,195	20
Total nonperforming loans and leases	5,483	4,557
Real-Estate Construction [Member]
Nonperforming Loans And Leases [Line Items]
Nonaccrual loans and lease	383	0
Loans and lease 90 days or more past due and accruing interest	0	0
Total nonperforming loans and leases	383	0
Real Estate Residential Secured For Business Purpose [Member]
Nonperforming Loans And Leases [Line Items]
Nonaccrual loans and lease	759	1,013
Loans and lease 90 days or more past due and accruing interest	0	263
Total nonperforming loans and leases	759	1,276
Real Estate-Residential Secured For Personal Purpose [Member]
Nonperforming Loans And Leases [Line Items]
Nonaccrual loans and lease	1,500	1,989
Loans and lease 90 days or more past due and accruing interest	0	319
Total nonperforming loans and leases	1,500	2,308
Real Estate Home Equity Secured For Personal Purpose [Member]
Nonperforming Loans And Leases [Line Items]
Nonaccrual loans and lease	948	740
Loans and lease 90 days or more past due and accruing interest	0	0
Total nonperforming loans and leases	948	740
Loans to Individuals [Member]
Nonperforming Loans And Leases [Line Items]
Nonaccrual loans and lease	0	0
Loans and lease 90 days or more past due and accruing interest	47	39
Total nonperforming loans and leases	47	39
Lease Financings [Member]
Nonperforming Loans And Leases [Line Items]
Nonaccrual loans and lease	61	2
Loans and lease 90 days or more past due and accruing interest	754	234
Total nonperforming loans and leases	$ 815	$ 236

XML

Loans and Leases - Nonaccrual (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual With No ACL	$ 8,037	$ 8,504
Nonaccrual With ACL	3,325	4,849
Nonaccrual loans and lease	11,362	13,353
Loans and Leases 90 Days or more Past Due and Accruing Interest	1,996	875
Interest income recognized on nonaccrual loans and leases	6
Commercial Financial And Agricultural [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual With No ACL	159	225
Nonaccrual With ACL	3,264	4,847
Nonaccrual loans and lease	3,423	5,072
Loans and Leases 90 Days or more Past Due and Accruing Interest	0	0
Real-Estate Commercial [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual With No ACL	4,288	4,537
Nonaccrual With ACL	0	0
Nonaccrual loans and lease	4,288	4,537
Loans and Leases 90 Days or more Past Due and Accruing Interest	1,195	20
Real-Estate Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual With No ACL	383
Nonaccrual With ACL	0
Nonaccrual loans and lease	383
Loans and Leases 90 Days or more Past Due and Accruing Interest	0
Real Estate Residential Secured For Business Purpose [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual With No ACL	759	1,013
Nonaccrual With ACL	0	0
Nonaccrual loans and lease	759	1,013
Loans and Leases 90 Days or more Past Due and Accruing Interest	0	263
Real Estate Residential Secured For Personal Purpose [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual With No ACL	1,500	1,989
Nonaccrual With ACL	0	0
Nonaccrual loans and lease	1,500	1,989
Loans and Leases 90 Days or more Past Due and Accruing Interest	0	319
Real Estate Home Equity Secured For Personal Purpose [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual With No ACL	948	740
Nonaccrual With ACL	0	0
Nonaccrual loans and lease	948	740
Loans and Leases 90 Days or more Past Due and Accruing Interest	0	0
Loans to Individuals [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual With No ACL	0	0
Nonaccrual With ACL	0	0
Nonaccrual loans and lease	0	0
Loans and Leases 90 Days or more Past Due and Accruing Interest	47	39
Lease Financings [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Nonaccrual With No ACL	0	0
Nonaccrual With ACL	61	2
Nonaccrual loans and lease	61	2
Loans and Leases 90 Days or more Past Due and Accruing Interest	$ 754	$ 234

XML

Loans and Leases - Collateral Dependent Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	$ 11,362	$ 13,353
Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	11,301	11,022
Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	61	2
None
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	0	2,329
Commercial Financial And Agricultural [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	3,423	5,072
Commercial Financial And Agricultural [Member] | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	3,423	2,743
Commercial Financial And Agricultural [Member] | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	0	0
Commercial Financial And Agricultural [Member] | None
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	0	2,329
Real-Estate Commercial [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	4,288	4,537
Real-Estate Commercial [Member] | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	4,288	4,537
Real-Estate Commercial [Member] | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	0	0
Real-Estate Commercial [Member] | None
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	0	0
Real-Estate Construction
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	383
Real-Estate Construction | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	383
Real-Estate Construction | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	0
Real-Estate Construction | None
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	0
Real Estate Residential Secured For Business Purpose [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	759	1,013
Real Estate Residential Secured For Business Purpose [Member] | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	759	1,013
Real Estate Residential Secured For Business Purpose [Member] | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	0	0
Real Estate Residential Secured For Business Purpose [Member] | None
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	0	0
Real Estate Residential Secured For Personal Purpose [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	1,500	1,989
Real Estate Residential Secured For Personal Purpose [Member] | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	1,500	1,989
Real Estate Residential Secured For Personal Purpose [Member] | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	0	0
Real Estate Residential Secured For Personal Purpose [Member] | None
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	0	0
Real Estate Home Equity Secured For Personal Purpose [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	948	740
Real Estate Home Equity Secured For Personal Purpose [Member] | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	948	740
Real Estate Home Equity Secured For Personal Purpose [Member] | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	0	0
Real Estate Home Equity Secured For Personal Purpose [Member] | None
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	0	0
Lease Financings [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	61	2
Lease Financings [Member] | Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	0	0
Lease Financings [Member] | Other
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	61	2
Lease Financings [Member] | None
Financing Receivable, Allowance for Credit Loss [Line Items]
Total nonaccrual loans	$ 0	$ 0

XML

Loans and Leases - Credit Quality (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	$ 212,391	$ 1,524,195
2022	1,509,188	1,052,017
2021	1,021,029	865,577
2020	818,816	450,178
2019	439,919	170,031
Prior	420,215	286,403
Revolving Loans Amortized Cost Basis	613,750	628,422
Revolving Loans Converted to Term	729	125
Total	5,036,037	4,976,948
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
2021	247
2020	230
Prior	50
Revolving Loans Amortized Cost Basis	2,578
Total	3,105
Pass
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	212,391	1,520,594
2022	1,498,676	1,009,619
2021	987,315	842,328
2020	808,757	435,435
2019	426,403	167,660
Prior	413,390	281,371
Revolving Loans Amortized Cost Basis	576,380	601,419
Revolving Loans Converted to Term	729	125
Total	4,924,041	4,858,551
Special Mention
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	0	3,601
2022	10,132	42,174
2021	31,446	21,452
2020	8,332	14,743
2019	7,098	111
Prior	3,750	3,943
Revolving Loans Amortized Cost Basis	34,580	21,667
Revolving Loans Converted to Term	0	0
Total	95,338	107,691
Substandard
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	0	0
2022	380	224
2021	2,268	1,797
2020	1,727	0
2019	6,418	2,260
Prior	3,075	1,089
Revolving Loans Amortized Cost Basis	2,790	5,336
Revolving Loans Converted to Term	0	0
Total	16,658	10,706
Nonperforming Financial Instruments [Member]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	0	41
2022	812	104
2021	158	483
2020	18	340
2019	313	553
Prior	1,106	1,222
Revolving Loans Amortized Cost Basis	903	629
Total	3,310	3,372
Performing Financial Instruments [Member]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	77,501	357,249
2022	357,252	274,817
2021	271,756	175,335
2020	168,990	39,430
2019	36,678	24,185
Prior	99,085	78,799
Revolving Loans Amortized Cost Basis	189,195	193,095
Total	1,200,457	1,142,910
Commercial Financial And Agricultural [Member]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	27,521	235,796
2022	198,066	176,266
2021	167,040	50,714
2020	38,648	36,373
2019	33,475	28,235
Prior	67,231	48,631
Revolving Loans Amortized Cost Basis	500,043	512,788
Revolving Loans Converted to Term	729	125
Total	1,032,753	1,088,928
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
2021	247
2020	23
Revolving Loans Amortized Cost Basis	2,578
Total	2,848
Commercial Financial And Agricultural [Member] | Pass
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	27,521	233,064
2022	194,140	148,033
2021	145,736	41,091
2020	36,286	28,269
2019	25,788	28,209
Prior	67,231	48,631
Revolving Loans Amortized Cost Basis	469,953	487,818
Revolving Loans Converted to Term	729	125
Total	967,384	1,015,240
Commercial Financial And Agricultural [Member] | Special Mention
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	0	2,732
2022	3,926	28,220
2021	21,196	9,623
2020	2,362	8,104
2019	7,098	26
Prior	0	0
Revolving Loans Amortized Cost Basis	27,337	19,829
Revolving Loans Converted to Term	0	0
Total	61,919	68,534
Commercial Financial And Agricultural [Member] | Substandard
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	0	0
2022	0	13
2021	108	0
2020	0	0
2019	589	0
Prior	0	0
Revolving Loans Amortized Cost Basis	2,753	5,141
Revolving Loans Converted to Term	0	0
Total	3,450	5,154
Real-Estate Commercial [Member]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	117,401	878,572
2022	881,410	688,605
2021	694,277	738,293
2020	710,505	333,646
2019	360,218	120,341
Prior	310,075	212,471
Revolving Loans Amortized Cost Basis	54,324	56,027
Revolving Loans Converted to Term	0	0
Total	3,128,210	3,027,955
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
Prior	50
Total	50
Real-Estate Commercial [Member] | Pass
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	117,401	877,703
2022	880,556	680,432
2021	682,078	724,941
2020	703,079	332,702
2019	360,218	118,034
Prior	304,672	208,974
Revolving Loans Amortized Cost Basis	52,553	54,139
Revolving Loans Converted to Term	0	0
Total	3,100,557	2,996,925
Real-Estate Commercial [Member] | Special Mention
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	0	869
2022	854	8,173
2021	10,250	11,582
2020	5,725	944
2019	0	85
Prior	2,816	3,002
Revolving Loans Amortized Cost Basis	1,771	1,838
Revolving Loans Converted to Term	0	0
Total	21,416	26,493
Real-Estate Commercial [Member] | Substandard
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	0	0
2022	0	0
2021	1,949	1,770
2020	1,701	0
2019	0	2,222
Prior	2,587	495
Revolving Loans Amortized Cost Basis	0	50
Revolving Loans Converted to Term	0	0
Total	6,237	4,537
Real-Estate Construction [Member]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	36,683	243,983
2022	267,643	58,266
2021	27,799	8,341
2020	3,949	40,365
2019	6,084	191
Prior	2,761	442
Revolving Loans Amortized Cost Basis	31,650	30,223
Revolving Loans Converted to Term	0	0
Total	376,569	381,811
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
2020	207
Total	207
Real-Estate Construction [Member] | Pass
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	36,683	243,983
2022	261,911	52,485
2021	27,799	8,341
2020	3,949	34,670
2019	255	191
Prior	2,761	442
Revolving Loans Amortized Cost Basis	26,178	30,223
Revolving Loans Converted to Term	0	0
Total	359,536	370,335
Real-Estate Construction [Member] | Special Mention
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	0	0
2022	5,352	5,781
2021	0	0
2020	0	5,695
2019	0	0
Prior	0	0
Revolving Loans Amortized Cost Basis	5,472	0
Revolving Loans Converted to Term	0	0
Total	10,824	11,476
Real-Estate Construction [Member] | Substandard
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	0	0
2022	380	0
2021	0	0
2020	0	0
2019	5,829	0
Prior	0	0
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	6,209	0
Real Estate Residential Secured For Business Purpose [Member]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	30,786	165,844
2022	162,069	128,880
2021	131,913	68,229
2020	65,714	39,794
2019	40,142	21,264
Prior	40,148	24,859
Revolving Loans Amortized Cost Basis	27,733	29,384
Revolving Loans Converted to Term	0	0
Total	498,505	478,254
Real Estate Residential Secured For Business Purpose [Member] | Pass
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	30,786	165,844
2022	162,069	128,669
2021	131,702	67,955
2020	65,443	39,794
2019	40,142	21,226
Prior	38,726	23,324
Revolving Loans Amortized Cost Basis	27,696	29,239
Revolving Loans Converted to Term	0	0
Total	496,564	476,051
Real Estate Residential Secured For Business Purpose [Member] | Special Mention
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	0	0
2022	0	0
2021	0	247
2020	245	0
2019	0	0
Prior	934	941
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term	0	0
Total	1,179	1,188
Real Estate Residential Secured For Business Purpose [Member] | Substandard
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	0	0
2022	0	211
2021	211	27
2020	26	0
2019	0	38
Prior	488	594
Revolving Loans Amortized Cost Basis	37	145
Revolving Loans Converted to Term	0	0
Total	762	1,015
Real Estate Residential Secured For Personal Purpose [Member]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	45,329	258,293
2022	265,177	211,686
2021	213,770	141,288
2020	138,347	24,146
2019	23,828	18,579
Prior	93,023	76,295
Revolving Loans Amortized Cost Basis	83	108
Total	779,557	730,395
Real Estate Residential Secured For Personal Purpose [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	0	0
2022	158	48
2021	47	466
2020	0	319
2019	309	306
Prior	986	1,169
Revolving Loans Amortized Cost Basis	0	0
Total	1,500	2,308
Real Estate Residential Secured For Personal Purpose [Member] | Performing Financial Instruments [Member]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	45,329	258,293
2022	265,019	211,638
2021	213,723	140,822
2020	138,347	23,827
2019	23,519	18,273
Prior	92,037	75,126
Revolving Loans Amortized Cost Basis	83	108
Total	778,057	728,087
Real Estate Home Equity Secured For Personal Purpose [Member]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	219	2,945
2022	2,761	642
2021	614	491
2020	467	192
2019	186	362
Prior	1,788	1,568
Revolving Loans Amortized Cost Basis	166,038	170,499
Total	172,073	176,699
Real Estate Home Equity Secured For Personal Purpose [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019	0	157
Prior	45	3
Revolving Loans Amortized Cost Basis	903	629
Total	948	789
Real Estate Home Equity Secured For Personal Purpose [Member] | Performing Financial Instruments [Member]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	219	2,945
2022	2,761	642
2021	614	491
2020	467	192
2019	186	205
Prior	1,743	1,565
Revolving Loans Amortized Cost Basis	165,135	169,870
Total	171,125	175,910
Loans to Individuals [Member]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	502	1,581
2022	1,317	857
2021	763	554
2020	494	247
2019	197	138
Prior	1,406	1,379
Revolving Loans Amortized Cost Basis	23,977	23,117
Total	28,656	27,873
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
2023	38
2022	19
2021	0
2020	5
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	43
Total	105
Loans to Individuals [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	0	0
2022	0	0
2021	0	0
2020	0	0
2019	0	0
Prior	47	39
Revolving Loans Amortized Cost Basis	0	0
Total	47	39
Loans to Individuals [Member] | Performing Financial Instruments [Member]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	502	1,581
2022	1,317	857
2021	763	554
2020	494	247
2019	197	138
Prior	1,359	1,340
Revolving Loans Amortized Cost Basis	23,977	23,117
Total	28,609	27,834
Lease Financings [Member]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	31,451	94,471
2022	88,809	61,736
2021	56,767	33,485
2020	29,700	15,185
2019	12,780	5,659
Prior	3,974	779
Revolving Loans Amortized Cost Basis	0	0
Total	223,481	211,315
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	20
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	0
Total	20
Lease Financings [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	0	41
2022	654	56
2021	111	17
2020	18	21
2019	4	90
Prior	28	11
Revolving Loans Amortized Cost Basis	0	0
Total	815	236
Lease Financings [Member] | Performing Financial Instruments [Member]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	31,451	94,430
2022	88,155	61,680
2021	56,656	33,468
2020	29,682	15,164
2019	12,776	5,569
Prior	3,946	768
Revolving Loans Amortized Cost Basis	0	0
Total	222,666	211,079
Financing Receivable [Member]
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss, by Origination Year [Abstract]
2023	77,501	357,290
2022	358,064	274,921
2021	271,914	175,818
2020	169,008	39,770
2019	36,991	24,738
Prior	100,191	80,021
Revolving Loans Amortized Cost Basis	190,098	193,724
Total	1,203,767	$ 1,146,282
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract]
2023	38
2022	19
2021	0
2020	25
2019	0
Prior	0
Revolving Loans Amortized Cost Basis	43
Total	$ 125

XML

Loans and Leases - Allowance for Credit Losses, Loans and Leases, Roll Forward (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	$ 79,004	$ 71,924
Provision (reversal of provision) for credit losses	3,872	(3,562)
Charge-offs	(3,230)	(348)
Recoveries	388	272
Ending balance	80,034	68,286
Commercial Financial And Agricultural [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	16,920	13,538
Provision (reversal of provision) for credit losses	547	(1,672)
Charge-offs	(2,848)	(214)
Recoveries	106	189
Ending balance	14,725	11,841
Real-Estate Commercial [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	41,673	41,095
Provision (reversal of provision) for credit losses	1,524	(669)
Charge-offs	(50)	0
Recoveries	3	0
Ending balance	43,150	40,426
Real-Estate Construction [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	4,952	4,575
Provision (reversal of provision) for credit losses	(64)	(941)
Charge-offs	(207)	0
Recoveries	0	0
Ending balance	4,681	3,634
Real Estate Residential Secured For Business Purpose [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	7,054	6,482
Provision (reversal of provision) for credit losses	1,125	(328)
Charge-offs	0	0
Recoveries	181	48
Ending balance	8,360	6,202
Real Estate Residential Secured For Personal Purpose [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	3,685	2,403
Provision (reversal of provision) for credit losses	1,327	189
Charge-offs	0	0
Recoveries	0	0
Ending balance	5,012	2,592
Real Estate Home Equity Secured For Personal Purpose [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	1,287	1,028
Provision (reversal of provision) for credit losses	(66)	(53)
Charge-offs	0	0
Recoveries	50	1
Ending balance	1,271	976
Loans to Individuals [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	351	363
Provision (reversal of provision) for credit losses	113	57
Charge-offs	(105)	(75)
Recoveries	16	24
Ending balance	375	369
Lease Financings [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	3,082	2,290
Provision (reversal of provision) for credit losses	(634)	5
Charge-offs	(20)	(59)
Recoveries	32	10
Ending balance	2,460	2,246
Unallocated [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	0	150
Provision (reversal of provision) for credit losses	0	(150)
Ending balance	$ 0	$ 0

XML

Loans and Leases - Allowance for Loan and Lease Losses and Recorded Investment in Loans and Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Allowance For Credit Losses, Loans And Leases [Abstract]
Ending balance: individually analyzed	$ 912		$ 954
Ending balance: pooled	79,122		67,332
Financing Receivable, Allowance for Credit Loss	80,034	$ 79,004	68,286	$ 71,924
Loans and leases held for investment [Abstract]
Ending balance: individually analyzed	11,301		30,727
Ending balance: pooled	6,228,503		5,370,046
Loans measured at fair value	0		13
Total loans and leases held for investment	6,239,804	6,123,230	5,400,786
Commercial Financial And Agricultural [Member]
Allowance For Credit Losses, Loans And Leases [Abstract]
Ending balance: individually analyzed	912		0
Ending balance: pooled	13,813		11,841
Financing Receivable, Allowance for Credit Loss	14,725	16,920	11,841	13,538
Loans and leases held for investment [Abstract]
Ending balance: individually analyzed	3,423		448
Ending balance: pooled	1,029,330		942,335
Loans measured at fair value	0		0
Total loans and leases held for investment	1,032,753	1,088,928	942,783
Real-Estate Commercial [Member]
Allowance For Credit Losses, Loans And Leases [Abstract]
Ending balance: individually analyzed	0		954
Ending balance: pooled	43,150		39,472
Financing Receivable, Allowance for Credit Loss	43,150	41,673	40,426	41,095
Loans and leases held for investment [Abstract]
Ending balance: individually analyzed	4,288		26,411
Ending balance: pooled	3,123,922		2,790,313
Loans measured at fair value	0		13
Total loans and leases held for investment	3,128,210	3,027,955	2,816,737
Real-Estate Construction [Member]
Allowance For Credit Losses, Loans And Leases [Abstract]
Ending balance: individually analyzed	0		0
Ending balance: pooled	4,681		3,634
Financing Receivable, Allowance for Credit Loss	4,681	4,952	3,634	4,575
Loans and leases held for investment [Abstract]
Ending balance: individually analyzed	383		0
Ending balance: pooled	376,186		285,083
Loans measured at fair value	0		0
Total loans and leases held for investment	376,569	381,811	285,083
Real Estate Residential Secured For Business Purpose [Member]
Allowance For Credit Losses, Loans And Leases [Abstract]
Ending balance: individually analyzed	0		0
Ending balance: pooled	8,360		6,202
Financing Receivable, Allowance for Credit Loss	8,360	7,054	6,202	6,482
Loans and leases held for investment [Abstract]
Ending balance: individually analyzed	759		1,120
Ending balance: pooled	497,746		411,366
Loans measured at fair value	0		0
Total loans and leases held for investment	498,505	478,254	412,486
Real Estate Residential Secured For Personal Purpose [Member]
Allowance For Credit Losses, Loans And Leases [Abstract]
Ending balance: individually analyzed	0		0
Ending balance: pooled	5,012		2,592
Financing Receivable, Allowance for Credit Loss	5,012	3,685	2,592	2,403
Loans and leases held for investment [Abstract]
Ending balance: individually analyzed	1,500		2,259
Ending balance: pooled	778,057		566,476
Loans measured at fair value	0		0
Total loans and leases held for investment	779,557	730,395	568,735
Real Estate Home Equity Secured For Personal Purpose [Member]
Allowance For Credit Losses, Loans And Leases [Abstract]
Ending balance: individually analyzed	0		0
Ending balance: pooled	1,271		976
Financing Receivable, Allowance for Credit Loss	1,271	1,287	976	1,028
Loans and leases held for investment [Abstract]
Ending balance: individually analyzed	948		489
Ending balance: pooled	171,125		159,645
Loans measured at fair value	0		0
Total loans and leases held for investment	172,073	176,699	160,134
Loans to Individuals [Member]
Allowance For Credit Losses, Loans And Leases [Abstract]
Ending balance: individually analyzed	0		0
Ending balance: pooled	375		369
Financing Receivable, Allowance for Credit Loss	375	351	369	363
Loans and leases held for investment [Abstract]
Ending balance: individually analyzed	0		0
Ending balance: pooled	28,656		26,249
Loans measured at fair value	0		0
Total loans and leases held for investment	28,656	27,873	26,249
Lease Financings [Member]
Allowance For Credit Losses, Loans And Leases [Abstract]
Ending balance: individually analyzed	0		0
Ending balance: pooled	2,460		2,246
Financing Receivable, Allowance for Credit Loss	2,460	3,082	2,246	$ 2,290
Loans and leases held for investment [Abstract]
Ending balance: individually analyzed	0		0
Ending balance: pooled	223,481		188,579
Loans measured at fair value	0		0
Total loans and leases held for investment	$ 223,481	$ 211,315	$ 188,579

XML

Loans and Leases - Accruing and Nonaccruing Modified Loans to Borrowers Experiencing Financial Difficulty (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) loan
Accrual Modified Loans [Member]
Financing Receivable, Modified Loans [Line Items]
Number of loans | loan	1
Amortized cost basis	$ 5,829
Related allowance	$ 16
Accrual Modified Loans [Member] | Real-Estate Construction [Member]
Financing Receivable, Modified Loans [Line Items]
Number of loans | loan	1
Amortized cost basis	$ 5,829
Percent of total class of financing receivable	1.20%
Related allowance	$ 16
Nonaccrual Modified Loans [Member]
Financing Receivable, Modified Loans [Line Items]
Number of loans | loan	1
Amortized cost basis	$ 2,620
Related allowance	$ 538
Nonaccrual Modified Loans [Member] | Commercial Financial And Agricultural [Member]
Financing Receivable, Modified Loans [Line Items]
Number of loans | loan	1
Amortized cost basis	$ 2,620
Percent of total class of financing receivable	0.30%
Related allowance	$ 538

XML

Loans and Leases - Schedule of Financial Effect on Accruing and Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficuly (Details)	3 Months Ended
	Mar. 31, 2023 loan
Accrual Modified Loans [Member]
Financing Receivable, Modified Loans [Line Items]
Number of loans	1
Accrual Modified Loans [Member] | Real-Estate Construction [Member]
Financing Receivable, Modified Loans [Line Items]
Number of loans	1
Accrual Modified Loans [Member] | Real-Estate Construction [Member] | Maturity Date Extension [Member]
Financing Receivable, Modified Loans [Line Items]
Financial effect	Extended the loan maturity by 8 months to allow time for the construction to be completed. 3 months of interest payments were capitalized to the loan balance.
Nonaccrual Modified Loans [Member]
Financing Receivable, Modified Loans [Line Items]
Number of loans	1
Nonaccrual Modified Loans [Member] | Commercial Financial And Agricultural [Member]
Financing Receivable, Modified Loans [Line Items]
Number of loans	1
Nonaccrual Modified Loans [Member] | Commercial Financial And Agricultural [Member] | Maturity Date Extension [Member]
Financing Receivable, Modified Loans [Line Items]
Financial effect	Extended the loan maturity by 10 months in order to provide time to borrower to liquidate collateral for loan payoff.

XML

Loans and Leases - Aging Analysis of Accruing and Nonaccrual Modified Loans to Borrowers Experiencing Financial Difficult (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, net of deferred income	$ 6,239,804	$ 6,123,230	$ 5,400,786
Accrual Modified Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, net of deferred income	5,829
Nonaccrual Modified Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, net of deferred income	2,620
Financial Asset Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	6,219,677	6,093,031
Financial Asset Not Past Due | Accrual Modified Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	5,829
Financial Asset Not Past Due | Nonaccrual Modified Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	2,620
Financial Asset, 30 to 89 Days Past Due | Accrual Modified Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0
Financial Asset, 30 to 89 Days Past Due | Nonaccrual Modified Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	1,996	875
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Accrual Modified Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Nonaccrual Modified Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0
Real-Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, net of deferred income	376,569	381,811	285,083
Real-Estate Construction [Member] | Accrual Modified Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, net of deferred income	5,829
Real-Estate Construction [Member] | Financial Asset Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	376,186	381,496
Real-Estate Construction [Member] | Financial Asset Not Past Due | Accrual Modified Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	5,829
Real-Estate Construction [Member] | Financial Asset, 30 to 89 Days Past Due | Accrual Modified Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0
Real-Estate Construction [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0	0
Real-Estate Construction [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Accrual Modified Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0
Commercial Financial And Agricultural [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, net of deferred income	1,032,753	1,088,928	$ 942,783
Commercial Financial And Agricultural [Member] | Nonaccrual Modified Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, net of deferred income	2,620
Commercial Financial And Agricultural [Member] | Financial Asset Not Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	1,027,982	1,081,897
Commercial Financial And Agricultural [Member] | Financial Asset Not Past Due | Nonaccrual Modified Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	2,620
Commercial Financial And Agricultural [Member] | Financial Asset, 30 to 89 Days Past Due | Nonaccrual Modified Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0
Commercial Financial And Agricultural [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	0	$ 0
Commercial Financial And Agricultural [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Nonaccrual Modified Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financial receivables, gross	$ 0

XML

Loans and Leases - Mortgages in Process of Foreclosure (Details) - Residential Real Estate [Member] - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Process of Foreclosure [Line Items]
Mortgage loans in process of foreclosure, amount	$ 2,883	$ 894
Real Estate Residential Secured For Personal Purpose [Member]
Financing Receivable, Process of Foreclosure [Line Items]
Mortgage loans in process of foreclosure, amount	2,812	822
Real Estate Home Equity Secured For Personal Purpose [Member]
Financing Receivable, Process of Foreclosure [Line Items]
Mortgage loans in process of foreclosure, amount	$ 71	$ 72

XML

Loans and Leases - Lease Payments Receivables (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Receivables [Abstract]
2023 (excluding the three months ended March 31, 2023)	$ 74,280	$ 75,900
2024	66,701	61,793
2025	49,414	45,738
2026	33,086	29,902
2027	14,603	13,091
Thereafter	5,421	2,552
Total future minimum lease payments receivable	243,505	228,976
Plus: Unguaranteed residual	1,212	1,387
Plus: Initial direct costs	3,150	2,884
Less: Imputed interest	(24,386)	(21,932)
Lease financings	$ 223,481	$ 211,315

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Goodwill and Other Intangible Assets - Narrative (Details) - Servicing Rights [Member] - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Aggregate fair value of servicing rights	$ 16,800	$ 16,800
Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Range of discount rates used for valuation of servicing rights	10.40%	10.10%
Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Range of discount rates used for valuation of servicing rights	12.40%	12.00%

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Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Goodwill [Line Items]
Goodwill, beginning balance	$ 175,510
Goodwill, acquired during period	0
Goodwill, ending balance	175,510
Banking1
Goodwill [Line Items]
Goodwill, beginning balance	138,476
Goodwill, acquired during period	0
Goodwill, ending balance	138,476
Wealth Management [Member]
Goodwill [Line Items]
Goodwill, beginning balance	15,434
Goodwill, acquired during period	0
Goodwill, ending balance	15,434
Insurance [Member]
Goodwill [Line Items]
Goodwill, beginning balance	21,600
Goodwill, acquired during period	0
Goodwill, ending balance	$ 21,600

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Goodwill and Other Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 40,131	$ 44,185
Accumulated amortization	(29,087)	(32,801)
Net carrying amount	11,044	11,384
Core Deposits [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	6,788	6,788
Accumulated amortization	(6,048)	(5,939)
Net carrying amount	740	849
Customer Related Intangibles [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	4,162	8,493
Accumulated amortization	(2,318)	(6,530)
Net carrying amount	1,844	1,963
Servicing Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	29,181	28,904
Accumulated amortization	(20,721)	(20,332)
Net carrying amount	8,460	8,572
Valuation allowance included in accumulated amortization	$ 40	$ 5	$ 7	$ 13

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Goodwill and Other Intangible Assets - Estimated Amortization Expense for Core Deposit and Customer Related Intangibles (Details) - Core Deposits And Customer Related Intangible Assets $ in Thousands	Mar. 31, 2023 USD ($)
Finite-Lived Intangible Assets [Line Items]
Remainder of 2023	$ 616
2024	648
2025	469
2026	319
2027	216
Thereafter	316
Total: Estimated amortization expense for core deposit and customer related intangibles	$ 2,584

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Goodwill and Other Intangible Assets - Changes in Servicing Rights (Details) - Servicing Rights [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Servicing Asset at Amortized Cost, Balance [Roll Forward]
Beginning of period	$ 8,572	$ 7,878
Servicing rights capitalized	277	714
Amortization of servicing rights	(354)	(476)
Changes in valuation allowance	(35)	6
End of period	8,460	8,122
Residential mortgage and SBA loans serviced for others	$ 1,496,319	$ 1,440,562

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Goodwill and Other Intangible Assets - Activity In Valuation Allowance For Servicing Rights (Details) - Servicing Rights [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Valuation Allowance for Impairment of Recognized Servicing Assets [Roll Forward]
Valuation allowance, beginning of period	$ (5)	$ (13)
Additions	(35)	0
Reductions	0	6
Valuation allowance, end of period	$ (40)	$ (7)

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Goodwill and Other Intangible Assets - Estimated Amortization Expense of Servicing Rights (Details) - Servicing Rights [Member] - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Remainder of 2023	$ 1,072
2024	958
2025	855
2026	761
2027	641
Thereafter	4,173
Total: Estimated amortization expense of servicing rights	$ 8,460	$ 8,572	$ 8,122	$ 7,878

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Deposits - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Deposits [Abstract]
Aggregate amount of time deposits in denominations over $250 thousand	$ 121.7	$ 95.0

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Deposits - Schedule of Components of Weighted Average Interest Rate and Balance of Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Weighted Average Rate Domestic Deposit Liabilities [Abstract]
Noninterest-bearing deposits	0.00%	0.00%
Demand deposits	2.56%	2.02%
Savings deposits	0.39%	0.25%
Time deposits	2.91%	2.07%
Total deposits	1.45%	1.02%
Deposits [Abstract]
Noninterest-bearing deposits	$ 1,799,225	$ 2,047,263
Interest-bearing Domestic Deposit, Demand	2,433,575	2,321,748
Deposits, Savings Deposits	955,530	1,025,431
Time Deposits	646,327	519,084
Deposits, Total	$ 5,834,657	$ 5,913,526

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Deposits - Schedule of Maturities of Time Deposits (Detail) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Deposits [Abstract]
Remainder of 2023	$ 259,767
2024	196,555
2025	158,162
2026	14,600
2027	8,246
Thereafter	8,997
Time Deposits, Total	$ 646,327	$ 519,084

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Borrowings - Additional Information (Detail) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Debt Disclosure [Abstract]
Maximum borrowing capacity with FHLB	$ 3,000,000,000
Outstanding short-term letters of credit	830,400,000	$ 690,500,000
Available borrowing capacity from the Federal Home Loan Bank	1,700,000,000
Investment securities collateral for Federal Reserve Bank Discount Window Lending program	119,600,000	98,100,000
Outstanding amount of federal fund line of credit with Federal Reserve Bank of Philadelphia	0	0
Amount of maintained line of credit with correspondent bank - parent company	10,000,000	10,000,000
Outstanding amount of line of credit with correspondent bank - parent company	0	0
Total committed borrowing capacity	3,100,000,000	3,000,000,000
Total committed borrowing capacity available	1,900,000,000	2,100,000,000
Amount of maintained federal fund lines of credit with correspondent banks	410,000,000	410,000,000
Amount of maintained federal funds lines of credit with correspondent banks, remaining borrowing capacity	$ 320,000,000	$ 350,000,000

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Borrowings - Summary of Borrowings By Type (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Schedule of Borrowings [Line Items]
Balance at end of period	$ 271,881	$ 197,141
Federal Home Loan Bank Advances [Member]
Schedule of Borrowings [Line Items]
Balance at end of period	$ 220,000	$ 95,000
Weighted average interest rate	3.52%	1.34%
Subordinated Debt [Member]
Schedule of Borrowings [Line Items]
Balance at end of period	$ 148,385	$ 148,260
Weighted average interest rate	6.08%	6.09%
Federal Home Loan Bank Borrowings
Schedule of Borrowings [Line Items]
Balance at end of period	$ 163,700	$ 125,000
Weighted average interest rate	5.15%	4.45%
Federal Funds Purchased [Member]
Schedule of Borrowings [Line Items]
Balance at end of period	$ 90,000	$ 60,000
Weighted average interest rate	5.26%	4.63%
Customer Repurchase Agreements [Member]
Schedule of Borrowings [Line Items]
Balance at end of period	$ 18,181	$ 12,141
Weighted average interest rate	0.05%	0.05%

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Borrowings - Schedule of Maturities of Long-term FHLB Advances (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract]
Remainder of 2023	$ 10,000
2024	85,000
2025	50,000
2026	50,000
2027	0
Thereafter	25,000
Total advances	$ 220,000
Federal Home Loan Bank, Advances, Maturities Summary, Average Interest Rate of Amounts Due [Abstract]
Remainder of 2023 weighted average interest rate	3.02%
2024 weighted average interest rate	2.10%
2025 weighted average interest rate	4.59%
2026 weighted average interest rate	4.42%
2027 weighted average interest rate	0.00%
Thereafter weighted average interest rate	4.61%
Weighted average interest rate	3.52%

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Retirement Plans and Other Post Retirement Benefits - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Other Post Retirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected employer contributions for next fiscal year		$ 130
Defined benefit plan, contributions by employer	$ 23
Defined benefit plan, benefits paid	23
Nonqualified Plan [Member] | Retirement Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected employer contributions for next fiscal year		$ 156
Defined benefit plan, contributions by employer	39
Defined benefit plan, benefits paid	$ 713

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Retirement Plans and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Income) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Retirement Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 130	$ 137
Interest cost	597	390
Expected loss on plan assets	(770)	(933)
Amortization of net actuarial loss (gain)	250	204
Net periodic benefit cost (income)	207	(202)
Other Post Retirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	19	30
Interest cost	32	24
Expected loss on plan assets	0	0
Amortization of net actuarial loss (gain)	(4)	14
Net periodic benefit cost (income)	$ 47	$ 68

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Stock-Based Incentive Plan - Status of Options Granted Under Long-Term Incentive Plan (Detail) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) $ / shares shares
Shares Under Option
Shares under option, outstanding, beginning balance | shares	294,111
Shares under option, exercised | shares	(4,167)
Shares under option, outstanding, ending balance | shares	289,944
Shares under options, exercisable at March 31, 2023 | shares	289,944
Weighted Average Exercise Price Per Share [Abstract]
Weighted average exercise price per share, outstanding, beginning balance | $ / shares	$ 26.11
Weighted average exercise price per share, outstanding, exercised | $ / shares	17.89
Weighted average exercise price per share, outstanding, ending balance | $ / shares	26.23
Weighted average exercise price per share, exercisable at March 31, 2023 | $ / shares	$ 26.23
Weighted average remaining contractual life, outstanding at March 31, 2023	3 years 10 months 24 days
Weighted average remaining contractual life, exercisable at March 31, 2023	3 years 10 months 24 days
Aggregated intrinsic value, outstanding at March 31, 2023 | $	$ 302
Aggregated intrinsic value, exercisable at March 31, 2023 | $	$ 302

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Stock-Based Incentive Plan - Summary of Nonvested Restricted Stock Units (Detail)	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested share units, beginning balance | shares	408,264
Nonvested share units, granted | shares	213,429
Nonvested share units, added by performance factor | shares	814
Nonvested share units, vested | shares	(174,798)
Nonvested share units, forfeited | shares	(6,114)
Nonvested share units, ending balance | shares	441,595
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted average grant date fair value, beginning balance | $ / shares	$ 25.57
Weighted average grant date fair value, granted | $ / shares	25.04
Weighted average grant date fair value, added by performance factor | $ / shares	19.20
Weighted average grant date fair value, vested | $ / shares	21.95
Weighted average grant date fair value, forfeited | $ / shares	27.62
Weighted average grant date fair value, ending balance | $ / shares	$ 26.71

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Stock-Based Incentive Plan - Certain Information Regarding Restricted Stock Units (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted	213,429
Weighted average grant date fair value	$ 25.04
Restricted stock units vested	174,798
Weighted average grant date fair value	$ 21.95
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted	213,429	164,319
Weighted average grant date fair value	$ 25.04	$ 28.36
Intrinsic value of units granted	$ 5,345	$ 4,660
Restricted stock units vested	174,798	118,834
Weighted average grant date fair value	$ 21.95	$ 23.29
Intrinsic value of units vested	$ 4,385	$ 3,377

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Stock-Based Incentive Plan - Schedule of Unrecognized Compensation Cost, Nonvested Units (Detail) - Restricted Stock Units (RSUs) [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost	$ 9,603
Weighted-average period remaining (years)	2 years 3 months 18 days

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Stock-Based Incentive Plan - Compensation Expense Related to Stock Incentive Plans Recognized (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-based Payment Arrangement, Additional Disclosure [Abstract]
Total expense	$ 1,139	$ 959
Tax benefit on nonqualified stock option expense and disqualifying dispositions of incentive stock options	35	1
Restricted Stock Units (RSUs) [Member]
Share-based Payment Arrangement, Additional Disclosure [Abstract]
Total expense	1,110	934
Employee Stock Purchase Plan [Member]
Share-based Payment Arrangement, Additional Disclosure [Abstract]
Total expense	$ 29	$ 25

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Accumulated Other Comprehensive (Loss) Income - Components of Accumulated Other Comprehensive (Loss) Income, Net of Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning balance	$ (62,104)
Other comprehensive (loss) income	6,554	$ (15,556)
Ending balance	(55,550)
Net Unrealized Holding (Losses) Gains on Available-for-Sale Investment Securities [Member]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning balance	(40,066)	(1,216)
Other comprehensive (loss) income	4,491	(15,842)
Ending balance	(35,575)	(17,058)
Net Change Related to Derivatives Used for Cash Flow Hedge [Member]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning balance	(6,831)	(159)
Other comprehensive (loss) income	1,869	114
Ending balance	(4,962)	(45)
Net Change Related to Defined Benefit Pension Plan [Member]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning balance	(15,207)	(14,978)
Other comprehensive (loss) income	194	172
Ending balance	(15,013)	(14,806)
Accumulated Other Comprehensive (Loss) Income [Member]
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Beginning balance	(62,104)	(16,353)
Other comprehensive (loss) income	6,554	(15,556)
Ending balance	$ (55,550)	$ (31,909)

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Derivative Instruments and Hedging Activities- Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) instrument Rate	Dec. 31, 2022 USD ($)
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional amount	$ 250,000	$ 250,000
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional amount	$ 840,679	841,044
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | One-Month LIBOR [Member]
Derivative [Line Items]
Basis points	2.24%
Interest Rate Swap [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Interest rate cash flow hedge gain (loss) to be reclassified during next 12 months	$ 3,600
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | 2022 SWAP
Derivative [Line Items]
Notional amount	$ 250,000
Derivative fixed interest rate | Rate	5.99%
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional amount	$ 250,000	250,000
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | 2022 SWAP
Derivative [Line Items]
Notional amount	250,000
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member] | 2022 SWAP
Derivative [Line Items]
Derivative liability	(6,300)
Credit Risk Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Notional amount	$ 792,838	$ 815,469
Derivative number of instruments held | instrument	124
Credit Risk Contract [Member] | Not Designated as Hedging Instrument [Member] | Customer [Member]
Derivative [Line Items]
Underlying derivative at fair value	$ 1,700
Unrealized Gain (Loss) on Derivatives	$ 58,100
Credit Risk Contract [Member] | Not Designated as Hedging Instrument [Member] | Minimum [Member]
Derivative [Line Items]
Derivative remaining maturity	13 months
Credit Risk Contract [Member] | Not Designated as Hedging Instrument [Member] | Maximum [Member]
Derivative [Line Items]
Derivative remaining maturity	11 years
Credit Risk Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Liabilities [Member]
Derivative [Line Items]
Underlying derivative at fair value	$ 330

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Derivative Instruments and Hedging Activities - Derivatives Designated as Hedging Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in other comprehensive income (loss)	$ 1,869	$ 114
Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	250,000		$ 250,000
Derivative assets	0		0
Derivative liabilities	6,282		8,647
Total net gain (loss)	(1,060)	(68)
Gain (loss) recognized in other comprehensive income (loss)	(4,962)		(6,831)
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	250,000		250,000
Gain (loss) recognized in other comprehensive income (loss)	(4,962)		(6,831)
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Total net gain (loss)	1,060	$ 68
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Other Assets [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative assets	0		0
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative liabilities	$ 6,282		$ 8,647

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Derivative Instruments and Hedging Activities - Derivatives Not Designated as Hedging Instruments (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Notional amount	$ 840,679		$ 841,044
Derivative assets	265		148
Derivative liabilities	336		360
Derivative instruments not designated as hedging instruments, gain (loss), net	198	$ 159
Credit Risk Contract [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Notional amount	792,838		815,469
Credit Risk Contract [Member] | Other Noninterest Income [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss), net	86	450
Credit Risk Contract [Member] | Other Assets [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative assets	0		0
Credit Risk Contract [Member] | Other Liabilities [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative liabilities	330		360
Interest Rate Locks With Customers [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Notional amount	21,208		10,269
Interest Rate Locks With Customers [Member] | Mortgage Banking Activities [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss), net	146	(1,010)
Interest Rate Locks With Customers [Member] | Other Assets [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative assets	265		119
Interest Rate Locks With Customers [Member] | Other Liabilities [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative liabilities	0		0
Forward Loan Sale Commitments [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Notional amount	26,633		15,306
Forward Loan Sale Commitments [Member] | Mortgage Banking Activities [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative instruments not designated as hedging instruments, gain (loss), net	(34)	$ 719
Forward Loan Sale Commitments [Member] | Other Assets [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative assets	0		29
Forward Loan Sale Commitments [Member] | Other Liabilities [Member]
Derivative Notional Amount And Fair Value By Balance Sheet Not Designated As Hedging Instrument [Line Items]
Derivative liabilities	$ 6		$ 0

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Fair Value Disclosures - Narrative (Details)	3 Months Ended
	Mar. 31, 2023 USD ($) numberOfSwaps	Dec. 31, 2022 USD ($) numberOfSwaps
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Contingent consideration liability	$ 1,600,000
Contingent consideration liability discount rate	0.083
Potential cash payments, lower range	$ 0
Potential cash payments, upper range	$ 1,900,000
Contingent consideration period rate	3 years
Servicing rights carrying amount before valuation allowance	$ 8,500,000	$ 8,600,000
Servicing rights valuation allowance	40,000	5,000
Other real estate owned	19,000,000	19,300,000
Credit Risk Contract [Member] | Fair Value Measure on Recurring Basis [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities	330,000	360,000
Level 3 [Member] | Credit Risk Contract [Member] | Fair Value Measure on Recurring Basis [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities	$ 330,000	$ 360,000
Number of interest rate swaps held | numberOfSwaps	124	127
Notional amount	$ 792,800,000	$ 815,500,000
Held for Investment [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying value of individually analyzed loans and leases held for investment	11,300,000	13,400,000
Valuation allowance of individually analyzed loans and leases held for investment	912,000	2,800,000
Lease Financings [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying value of individually analyzed loans and leases held for investment	$ 0	$ 0

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Fair Value Disclosures- Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Assets
Debt securities	$ 367,656	$ 350,256
Investments in equity securities	3,105	2,579
Total assets	0		$ 13
Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	367,656	350,256
Investments in equity securities	3,105	2,579
Total assets	376,451	358,020
Liabilities
Total liabilities	7,772	10,772
Contingent Consideration Liability [Member] | Fair Value Measure on Recurring Basis [Member]
Liabilities
Derivative liabilities	1,154	1,765
Interest Rate Swap [Member] | Fair Value Measure on Recurring Basis [Member]
Liabilities
Derivative liabilities	6,282	8,647
Credit Risk Contract [Member] | Fair Value Measure on Recurring Basis [Member]
Liabilities
Derivative liabilities	330	360
Forward Loan Sale Commitments [Member] | Fair Value Measure on Recurring Basis [Member]
Liabilities
Derivative liabilities	6
State and Political Subdivisions [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	2,297	2,285
Residential Mortgage-Backed Securities [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	280,794	263,388
Collateralized Mortgage Obligations [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	2,271	2,322
Corporate Bonds [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	82,294	82,261
Equity Securities [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Investments in equity securities	711	780
Money Market Mutual Funds [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Investments in equity securities	2,394	1,799
Loans Held for Sale [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Loans Held-for-sale	5,425	5,037
Forward Loan Sale Commitments [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Derivative asset		29
Interest Rate Locks With Customers [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Derivative asset	265	119
Level 1 [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	0	0
Investments in equity securities	3,105	2,579
Total assets	3,105	2,579
Liabilities
Total liabilities	0	0
Level 1 [Member] | Contingent Consideration Liability [Member] | Fair Value Measure on Recurring Basis [Member]
Liabilities
Derivative liabilities	0	0
Level 1 [Member] | Interest Rate Swap [Member] | Fair Value Measure on Recurring Basis [Member]
Liabilities
Derivative liabilities	0	0
Level 1 [Member] | Credit Risk Contract [Member] | Fair Value Measure on Recurring Basis [Member]
Liabilities
Derivative liabilities	0	0
Level 1 [Member] | Forward Loan Sale Commitments [Member] | Fair Value Measure on Recurring Basis [Member]
Liabilities
Derivative liabilities	0
Level 1 [Member] | State and Political Subdivisions [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	0	0
Level 1 [Member] | Residential Mortgage-Backed Securities [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	0	0
Level 1 [Member] | Collateralized Mortgage Obligations [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	0	0
Level 1 [Member] | Corporate Bonds [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	0	0
Level 1 [Member] | Equity Securities [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Investments in equity securities	711	780
Level 1 [Member] | Money Market Mutual Funds [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Investments in equity securities	2,394	1,799
Level 1 [Member] | Loans Held for Sale [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Loans Held-for-sale	0	0
Level 1 [Member] | Forward Loan Sale Commitments [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Derivative asset		0
Level 1 [Member] | Interest Rate Locks With Customers [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Derivative asset	0	0
Level 2 [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	367,656	350,256
Investments in equity securities	0	0
Total assets	373,346	355,441
Liabilities
Total liabilities	6,288	8,647
Level 2 [Member] | Contingent Consideration Liability [Member] | Fair Value Measure on Recurring Basis [Member]
Liabilities
Derivative liabilities	0	0
Level 2 [Member] | Interest Rate Swap [Member] | Fair Value Measure on Recurring Basis [Member]
Liabilities
Derivative liabilities	6,282	8,647
Level 2 [Member] | Credit Risk Contract [Member] | Fair Value Measure on Recurring Basis [Member]
Liabilities
Derivative liabilities	0	0
Level 2 [Member] | Forward Loan Sale Commitments [Member] | Fair Value Measure on Recurring Basis [Member]
Liabilities
Derivative liabilities	6
Level 2 [Member] | State and Political Subdivisions [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	2,297	2,285
Level 2 [Member] | Residential Mortgage-Backed Securities [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	280,794	263,388
Level 2 [Member] | Collateralized Mortgage Obligations [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	2,271	2,322
Level 2 [Member] | Corporate Bonds [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	82,294	82,261
Level 2 [Member] | Equity Securities [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Investments in equity securities	0	0
Level 2 [Member] | Money Market Mutual Funds [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Investments in equity securities	0	0
Level 2 [Member] | Loans Held for Sale [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Loans Held-for-sale	5,425	5,037
Level 2 [Member] | Forward Loan Sale Commitments [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Derivative asset		29
Level 2 [Member] | Interest Rate Locks With Customers [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Derivative asset	265	119
Level 3 [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	0	0
Investments in equity securities	0	0
Total assets	0	0
Liabilities
Total liabilities	1,484	2,125
Level 3 [Member] | Contingent Consideration Liability [Member] | Fair Value Measure on Recurring Basis [Member]
Liabilities
Derivative liabilities	1,154	1,765
Level 3 [Member] | Interest Rate Swap [Member] | Fair Value Measure on Recurring Basis [Member]
Liabilities
Derivative liabilities	0	0
Level 3 [Member] | Credit Risk Contract [Member] | Fair Value Measure on Recurring Basis [Member]
Liabilities
Derivative liabilities	330	360
Level 3 [Member] | Forward Loan Sale Commitments [Member] | Fair Value Measure on Recurring Basis [Member]
Liabilities
Derivative liabilities	0
Level 3 [Member] | State and Political Subdivisions [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	0	0
Level 3 [Member] | Residential Mortgage-Backed Securities [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	0	0
Level 3 [Member] | Collateralized Mortgage Obligations [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	0	0
Level 3 [Member] | Corporate Bonds [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Debt securities	0	0
Level 3 [Member] | Equity Securities [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Investments in equity securities	0	0
Level 3 [Member] | Money Market Mutual Funds [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Investments in equity securities	0	0
Level 3 [Member] | Loans Held for Sale [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Loans Held-for-sale	0	0
Level 3 [Member] | Forward Loan Sale Commitments [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Derivative asset		0
Level 3 [Member] | Interest Rate Locks With Customers [Member] | Fair Value Measure on Recurring Basis [Member]
Assets
Derivative asset	$ 0	$ 0

XML

Fair Value Disclosures - Level 3 Roll Forward (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Net Asset (Liability) Value [Roll Forward]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Net Asset (Liability) Value	$ (330)	$ (444)	$ (360)	$ (333)
Purchases/additions	(57)	(526)
Payments received	0	(35)
Increase (decrease) in value	87	450
Derivative Financial Instruments, Liabilities [Member] | Credit Risk Contract [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	(360)	(381)
Additions	(57)	(526)
Payments received	0	0
Increase (decrease) in value	87	450
Ending balance	$ (330)	(457)
Loans [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance		48
Purchases/additions		0
Payments received		(35)
Increase in value		0
Ending balance		$ 13

XML

Fair Value Disclosures - Change in Contingent Consideration Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Change in Contingent Consideration Liability [Roll Forward]
Beginning balance	$ 1,765	$ 1,629
Payment of contingent consideration	635	0
Adjustment of contingent consideration	24	34
Ending balance	1,154	1,663
Paul I. Scheaffer Insurance Agency [Member]
Change in Contingent Consideration Liability [Roll Forward]
Beginning balance	1,765
Payment of contingent consideration	635
Adjustment of contingent consideration	24
Ending balance	$ 1,154
Girard Partners [Member]
Change in Contingent Consideration Liability [Roll Forward]
Beginning balance		1,629
Payment of contingent consideration		0
Adjustment of contingent consideration		34
Ending balance		$ 1,663

XML

Fair Value Disclosures - Assets Measured at Fair Value on Non-recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	$ 19,000	$ 19,300
Total assets	0		$ 13
Fair Value, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually analyzed loans held for investment	10,389	10,586
Other real estate owned	19,000	19,258
Total assets	29,389	29,844
Fair Value, Nonrecurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually analyzed loans held for investment	0	0
Other real estate owned	0	0
Total assets	0	0
Fair Value, Nonrecurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually analyzed loans held for investment	0	0
Other real estate owned	0	0
Total assets	0	0
Fair Value, Nonrecurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Individually analyzed loans held for investment	10,389	10,586
Other real estate owned	19,000	19,258
Total assets	$ 29,389	$ 29,844

XML

Fair Value Disclosures - Assets, Liabilities and Off-balance Sheet Items Not Measured at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Assets:
Held-to-maturity securities	$ 133,147	$ 134,068
Total assets	0		$ 13
Deposits:
Time Deposits	646,327	519,084
Subordinated notes	148,385	148,260
Estimate of Fair Value Measurement [Member]
Assets:
Cash and short-term interest-earning assets	138,324	152,799
Held-to-maturity securities	133,147	134,068
Net loans and leases held for investment	6,097,345	5,912,050
Servicing rights	16,827	16,826
Total assets	6,385,643	6,215,743
Deposits:
Demand and savings deposits, non-maturity	5,188,330	5,394,442
Time Deposits	637,072	503,576
Total deposits	5,825,402	5,898,018
Short-term borrowings	271,881	197,141
Long-term debt	220,903	91,926
Subordinated notes	141,250	147,250
Total liabilities	6,459,436	6,334,335
Estimate of Fair Value Measurement [Member] | Level 1 [Member]
Assets:
Cash and short-term interest-earning assets	138,324	152,799
Held-to-maturity securities	0	0
Net loans and leases held for investment	0	0
Servicing rights	0	0
Total assets	138,324	152,799
Deposits:
Demand and savings deposits, non-maturity	5,188,330	5,394,442
Time Deposits	0	0
Total deposits	5,188,330	5,394,442
Short-term borrowings	0	0
Long-term debt	0	0
Subordinated notes	0	0
Total liabilities	5,188,330	5,394,442
Estimate of Fair Value Measurement [Member] | Level 2 [Member]
Assets:
Cash and short-term interest-earning assets	0	0
Held-to-maturity securities	133,147	134,068
Net loans and leases held for investment	0	0
Servicing rights	0	0
Total assets	133,147	134,068
Deposits:
Demand and savings deposits, non-maturity	0	0
Time Deposits	637,072	503,576
Total deposits	637,072	503,576
Short-term borrowings	271,881	197,141
Long-term debt	220,903	91,926
Subordinated notes	141,250	147,250
Total liabilities	1,271,106	939,893
Estimate of Fair Value Measurement [Member] | Level 3 [Member]
Assets:
Cash and short-term interest-earning assets	0	0
Held-to-maturity securities	0	0
Net loans and leases held for investment	6,097,345	5,912,050
Servicing rights	16,827	16,826
Total assets	6,114,172	5,928,876
Deposits:
Demand and savings deposits, non-maturity	0	0
Time Deposits	0	0
Total deposits	0	0
Short-term borrowings	0	0
Long-term debt	0	0
Subordinated notes	0	0
Total liabilities	0	0
Carrying Amount [Member]
Assets:
Cash and short-term interest-earning assets	138,324	152,799
Held-to-maturity securities	151,347	154,727
Federal Home Loan Bank, Federal Reserve Bank and other stock	43,792	33,841
Net loans and leases held for investment	6,149,381	6,033,640
Servicing rights	8,460	8,572
Total assets	6,491,304	6,383,579
Deposits:
Demand and savings deposits, non-maturity	5,188,330	5,394,442
Time Deposits	646,327	519,084
Total deposits	5,834,657	5,913,526
Short-term borrowings	271,881	197,141
Long-term debt	220,000	95,000
Subordinated notes	148,385	148,260
Total liabilities	$ 6,474,923	$ 6,353,927

XML

Segment Reporting - Schedule of Segment Reporting (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) segment	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Segment Reporting [Abstract]
Reportable business segments | segment	3
Segment Reporting Information [Line Items]
Total assets	$ 7,358,991	$ 7,107,740	$ 7,222,016
Interest income	83,253	51,198
Interest expense	23,936	4,538
Net interest income	59,317	46,660
Provision (reversal of provision) for credit losses	3,387	(3,450)
Noninterest income	19,680	20,470
Noninterest Expense	49,529	45,412
Income before income taxes	26,081	25,168
Income tax expense	5,047	4,851
Net income	21,034	20,317
Net capital expenditures	(2,585)	(5,494)
Other
Segment Reporting Information [Line Items]
Total assets	15,212	15,245	14,322
Interest income	9	8
Interest expense	2,281	1,328
Net interest income	(2,272)	(1,320)
Provision (reversal of provision) for credit losses	0	0
Noninterest income	(36)	31
Noninterest Expense	802	350
Income before income taxes	(3,110)	(1,639)
Income tax expense	(885)	(542)
Net income	(2,225)	(1,097)
Net capital expenditures	(325)	(20)
Banking1 | Operating Segments
Segment Reporting Information [Line Items]
Total assets	7,238,593	6,997,081	7,104,727
Interest income	83,224	51,189
Interest expense	20,676	3,180
Net interest income	62,548	48,009
Provision (reversal of provision) for credit losses	3,387	(3,450)
Noninterest income	6,237	7,370
Noninterest Expense	39,932	36,488
Income before income taxes	25,703	22,774
Income tax expense	5,185	4,543
Net income	20,518	18,231
Net capital expenditures	(2,201)	(5,592)
Banking1 | Intersegment Eliminations
Segment Reporting Information [Line Items]
Intersegment (revenues) expense	(237)	(433)
Wealth Management [Member] | Operating Segments
Segment Reporting Information [Line Items]
Total assets	59,127	53,174	58,239
Interest income	20	1
Interest expense	979	30
Net interest income	(959)	(29)
Provision (reversal of provision) for credit losses	0	0
Noninterest income	6,759	7,305
Noninterest Expense	4,860	4,709
Income before income taxes	825	2,356
Income tax expense	164	492
Net income	661	1,864
Net capital expenditures	(3)	(63)
Wealth Management [Member] | Intersegment Eliminations
Segment Reporting Information [Line Items]
Intersegment (revenues) expense	115	211
Insurance [Member] | Operating Segments
Segment Reporting Information [Line Items]
Total assets	46,059	42,240	$ 44,728
Interest income	0	0
Interest expense	0	0
Net interest income	0	0
Provision (reversal of provision) for credit losses	0	0
Noninterest income	6,720	5,764
Noninterest Expense	3,935	3,865
Income before income taxes	2,663	1,677
Income tax expense	583	358
Net income	2,080	1,319
Net capital expenditures	(56)	(15)
Insurance [Member] | Intersegment Eliminations
Segment Reporting Information [Line Items]
Intersegment (revenues) expense	$ 122	$ 222