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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 1Level 2Level 3Assets/
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 industry711 — — 711 
Money market mutual funds2,394 — — 2,394 
Total equity securities3,105 — — 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 $1.9 million over the three-year period ending November 30, 2024.
 At December 31, 2022
(Dollars in thousands)Level 1Level 2Level 3Assets/
Liabilities at
Fair Value
Assets:
Available-for-sale securities:
State and political subdivisions$— $2,285 $— $2,285 
Residential mortgage-backed securities— 263,388 — 263,388 
Collateralized mortgage obligations— 2,322 — 2,322 
Corporate bonds— 82,261 — 82,261 
Total available-for-sale securities— 350,256 — 350,256 
Equity securities:
Equity securities - financial services industry780 — — 780 
Money market mutual funds1,799 — — 1,799 
Total equity securities2,579 — — 2,579 
Loans held for sale— 5,037 — 5,037 
Interest rate locks with customers*— 119 — 119 
Forward loan sale commitments*— 29 — 29 
Total assets$2,579 $355,441 $— $358,020 
Liabilities:
Contingent consideration liability$— $— $1,765 $1,765 
Interest rate swaps*— 8,647 — 8,647 
Credit derivatives*— — 360 360 
Total liabilities$— $8,647 $2,125 $10,772 
* Such financial instruments are recorded at fair value as further described in Note 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		AdditionsPayments receivedIncrease in valueBalance at March 31, 2023
Credit derivatives(360)(57)— 87 (330)
Net total $(360)$(57)$— $87 $(330)
 Three Months Ended March 31, 2022
(Dollars in thousands)Balance at
December 31,
2021		AdditionsPayments receivedIncrease (decrease) in valueBalance at March 31, 2022
Loans48 — (35)— 13 
Credit derivatives(381)(526)— 450 (457)
Net total$(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 $1,663 
Assets Measured at Fair Value on Non-Recurring Basis
The Corporation may be required to periodically measure certain assets and liabilities at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or market accounting or changes in the value of loans held for investment analyzed on an individual basis. The following table represents assets measured at fair value on a non-recurring basis at March 31, 2023 and December 31, 2022:
 At March 31, 2023
(Dollars in thousands)Level 1Level 2Level 3Assets at
Fair Value
Individually analyzed loans held for investment$— $— $10,389 $10,389 
Other real estate owned— — 19,000 19,000 
Total$— $— $29,389 $29,389 
 At December 31, 2022
(Dollars in thousands)Level 1Level 2Level 3Assets at
Fair Value
Individually analyzed loans held for investment$— $— $10,586 $10,586 
Other real estate owned— — 19,258 19,258 
Total$— $— $29,844 $29,844 
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 1Level 2Level 3Fair
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 stockNANANANA43,792 
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 deposits5,188,330 637,072 — 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 1Level 2Level 3Fair
Value		Carrying
Amount
Assets:
Cash and short-term interest-earning assets$152,799 $— $— $152,799 $152,799 
Held-to-maturity securities— 134,068 — 134,068 154,727 
Federal Home Loan Bank, Federal Reserve Bank and other stockNANANANA33,841 
Net loans and leases held for investment— — 5,912,050 5,912,050 6,033,640 
Servicing rights— — 16,826 16,826 8,572 
Total assets$152,799 $134,068 $5,928,876 $6,215,743 $6,383,579 
Liabilities:
Deposits:
Demand and savings deposits, non-maturity$5,394,442 $— $— $5,394,442 $5,394,442 
Time deposits— 503,576 — 503,576 519,084 
Total deposits5,394,442 503,576 — 5,898,018 5,913,526 
Short-term borrowings— 197,141 — 197,141 197,141 
Long-term debt— 91,926 — 91,926 95,000 
Subordinated notes— 147,250 — 147,250 148,260 
Total liabilities$5,394,442 $939,893 $— $6,334,335 $6,353,927