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Fair Value Disclosures (Tables)
 9 Months Ended
Sep. 30, 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 September 30, 2023 and December 31, 2022, classified using the fair value hierarchy:
 At September 30, 2023
(Dollars in thousands)Level 1Level 2Level 3Assets/
Liabilities at
Fair Value
Assets:
Available-for-sale securities:
State and political subdivisions$— $2,267 $— $2,267 
Residential mortgage-backed securities— 249,165 — 249,165 
Collateralized mortgage obligations— 2,034 — 2,034 
Corporate bonds— 81,072 — 81,072 
Total available-for-sale securities— 334,538 — 334,538 
Equity securities:
Equity securities - financial services industry663 — — 663 
Money market mutual funds3,391 — — 3,391 
Total equity securities4,054 — — 4,054 
Loans held for sale— 16,473 — 16,473 
Interest rate locks with customers*— 136 — 136 
Forward loan sale commitments*— 148 — 148 
Total assets$4,054 $351,295 $— $355,349 
Liabilities:
Contingent consideration liability$— $— $1,203 $1,203 
Interest rate swaps*— 11,374 — 11,374 
Credit derivatives*— — 167 167 
Total liabilities$— $11,374 $1,370 $12,744 
* Such financial instruments are recorded at fair value as further described in Note 11, "Derivative Instruments and Hedging Activities."

The $167 thousand of credit derivatives liability represented the Credit Valuation Adjustment (CVA), which is obtained from real-time financial market data, of 137 interest rate swaps with a notional amount of $880.9 million. The September 30, 2023 CVA is calculated using a 40% loss given default rate on the most recent investment grade curve calculated by a third party.

The contingent consideration liability resulting from the Sheaffer acquisition was calculated using a discount rate of 8.3% on the acquisition date. During the nine months ended September 30, 2023, the Corporation paid $635 thousand in contingent consideration related to this acquisition. The contingent consideration liability was $1.2 million at September 30, 2023. The remaining potential cash payments that could result from the contingent consideration arrangement for the Sheaffer acquisition range from $0 to a maximum of $1.3 million through the period ending November 30, 2024.
 At December 31, 2022
(Dollars in thousands)Level 1Level 2Level 3Assets/
Liabilities at
Fair Value
Assets:
Available-for-sale securities:
State and political subdivisions$— $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 $1.9 million over the three-year period ending November 30, 2024.
Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Level 3 Rollforward
The following table includes a roll forward of loans and credit derivatives for which the Corporation utilized Level 3 inputs to determine fair value on a recurring basis for the nine months ended September 30, 2023 and 2022:
 Nine Months Ended September 30, 2023
(Dollars in thousands)Balance at
December 31,
2022		AdditionsPayments receivedIncrease in valueBalance at September 30, 2023
Credit derivatives$(360)$(973)$— $1,166 $(167)
Net total $(360)$(973)$— $1,166 $(167)
 Nine Months Ended September 30, 2022
(Dollars in thousands)Balance at
December 31,
2021		AdditionsPayments receivedIncrease in valueBalance at September 30, 2022
Loans$48 $— $(48)$— $— 
Credit derivatives(381)(1,332)— 1,355 (358)
Net total$(333)$(1,332)$(48)$1,355 $(358)
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 nine months ended September 30, 2023 and 2022:
 Nine Months Ended September 30, 2023
(Dollars in thousands)Balance at
December 31,
2022		Payment of
Contingent
Consideration		Adjustment
of Contingent
Consideration		Balance at September 30, 2023
Paul I. Sheaffer Insurance Agency$1,765 $635 $73 $1,203 
Total contingent consideration liability$1,765 $635 $73 $1,203 
 Nine Months Ended September 30, 2022
(Dollars in thousands)Balance at
December 31,
2021		Payment of
Contingent
Consideration		Adjustment
of Contingent
Consideration		Balance at September 30, 2022
Paul I. Sheaffer Insurance Agency$1,629 $— $105 $1,734 
Total contingent consideration liability$1,629 $— $105 $1,734 
Assets Measured at Fair Value on Non-Recurring Basis
The Corporation may be required to periodically measure certain assets and liabilities at fair value on a non-recurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or market accounting or changes in the value of loans held for investment analyzed on an individual basis. The following table represents assets measured at fair value on a non-recurring basis at September 30, 2023 and December 31, 2022:
 At September 30, 2023
(Dollars in thousands)Level 1Level 2Level 3Assets at
Fair Value
Individually analyzed loans held for investment$— $— $11,718 $11,718 
Other real estate owned— — 19,916 19,916 
Total$— $— $31,634 $31,634 
 At December 31, 2022
(Dollars in thousands)Level 1Level 2Level 3Assets at
Fair Value
Individually analyzed loans held for investment$— $— $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 September 30, 2023 and December 31, 2022. The disclosed fair values are classified using the fair value hierarchy.
 At September 30, 2023
(Dollars in thousands)Level 1Level 2Level 3Fair
Value		Carrying
Amount
Assets:
Cash and short-term interest-earning assets$290,341 $— $— $290,341 $290,341 
Held-to-maturity securities— 123,760 — 123,760 149,451 
Federal Home Loan Bank, Federal Reserve Bank and other stockNANANANA42,417 
Net loans and leases held for investment— — 6,213,204 6,213,204 6,479,403 
Servicing rights— — 18,963 18,963 8,921 
Total assets$290,341 $123,760 $6,232,167 $6,646,268 $6,970,533 
Liabilities:
Deposits:
Demand and savings deposits, non-maturity$5,270,646 $— $— $5,270,646 $5,270,646 
Time deposits— 1,153,897 — 1,153,897 1,168,519 
Total deposits5,270,646 1,153,897 — 6,424,543 6,439,165 
Short-term borrowings— 14,676 — 14,676 14,676 
Long-term debt— 316,366 — 316,366 320,000 
Subordinated notes— 135,000 — 135,000 148,636 
Total liabilities$5,270,646 $1,619,939 $— $6,890,585 $6,922,477 

 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