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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2020
Fair value measurements  
Schedule of differences between the fair value carrying amount of mortgages held for sale measured at fair value and the aggregate unpaid principal amount
The following table shows the differences between the fair value carrying amount of mortgages held for sale measured at fair value and the aggregate unpaid principal amount the Company is contractually entitled to receive at maturity.
(Dollars in thousands)Fair value carrying
amount		Aggregate
unpaid principal		Excess of fair value carrying amount over (under) unpaid principal 
September 30, 2020    
Mortgages held for sale reported at fair value$20,990 $17,618 $3,372 (1)
December 31, 2019    
Mortgages held for sale reported at fair value$20,277 $19,890 $387 (1)

(1)The excess of fair value carrying amount over (under) unpaid principal is included in mortgage banking income and includes changes in fair value at and subsequent to funding and gains and losses on the related loan commitment prior to funding.
Schedule of assets and liabilities measured at fair value on a recurring basis
The following table shows the balance of assets and liabilities measured at fair value on a recurring basis.
(Dollars in thousands)Level 1Level 2Level 3Total
September 30, 2020    
Assets:    
Investment securities available-for-sale:    
U.S. Treasury and Federal agencies securities$76,298 $491,710 $— $568,008 
U.S. States and political subdivisions securities— 65,468 3,265 68,733 
Mortgage-backed securities — Federal agencies— 403,490 — 403,490 
Corporate debt securities— 42,496 — 42,496 
Foreign government and other securities— 700 — 700 
Total debt securities available-for-sale76,298 1,003,864 3,265 1,083,427 
Mortgages held for sale— 20,990 — 20,990 
Accrued income and other assets (interest rate swap agreements)— 53,027 — 53,027 
Total$76,298 $1,077,881 $3,265 $1,157,444 
Liabilities:    
Accrued expenses and other liabilities (interest rate swap agreements)$— $53,988 $— $53,988 
Total$— $53,988 $— $53,988 
December 31, 2019    
Assets:    
Investment securities available-for-sale:    
U.S. Treasury and Federal agencies securities$80,393 $446,571 $— $526,964 
U.S. States and political subdivisions securities— 82,213 2,292 84,505 
Mortgage-backed securities — Federal agencies— 375,389 — 375,389 
Corporate debt securities— 53,025 — 53,025 
Foreign government and other securities— 700 — 700 
Total debt securities available-for-sale80,393 957,898 2,292 1,040,583 
Mortgages held for sale— 20,277 — 20,277 
Accrued income and other assets (interest rate swap agreements)— 21,975 — 21,975 
Total$80,393 $1,000,150 $2,292 $1,082,835 
Liabilities:    
Accrued expenses and other liabilities (interest rate swap agreements)$— $22,352 $— $22,352 
Total$— $22,352 $— $22,352 
Schedule of changes in investment securities available-for-sale Level 3 assets measured at fair value on a recurring basis
The following table shows changes in Level 3 assets measured at fair value on a recurring basis for the quarter ended September 30, 2020 and 2019.
(Dollars in thousands)U.S. States and
political
subdivisions
securities
Beginning balance July 1, 2020$3,179 
Total gains or losses (realized/unrealized): 
Included in earnings— 
Included in other comprehensive income166 
Purchases— 
Issuances— 
Sales— 
Settlements— 
Maturities(80)
Transfers into Level 3— 
Transfers out of Level 3— 
Ending balance September 30, 2020$3,265 
Beginning balance July 1, 2019$5,061 
Total gains or losses (realized/unrealized): 
Included in earnings— 
Included in other comprehensive income(12)
Purchases— 
Issuances— 
Sales— 
Settlements— 
Maturities(80)
Transfers into Level 3— 
Transfers out of Level 3— 
Ending balance September 30, 2019$4,969 
Schedule of carrying value of assets measured at fair value on a non-recurring basis
The following table shows the carrying value of assets measured at fair value on a non-recurring basis.
(Dollars in thousands)Level 1Level 2Level 3Total
September 30, 2020    
Impaired loans - collateral based$— $— $19,802 $19,802 
Accrued income and other assets (mortgage servicing rights)— — 3,729 3,729 
Accrued income and other assets (repossessions)— — 4,639 4,639 
Accrued income and other assets (other real estate)— — 303 303 
Total$— $— $28,473 $28,473 
December 31, 2019    
Impaired loans - collateral based$— $— $8,492 $8,492 
Accrued income and other assets (mortgage servicing rights)— — 4,200 4,200 
Accrued income and other assets (repossessions)— — 8,623 8,623 
Accrued income and other assets (other real estate)— — 522 522 
Total$— $— $21,837 $21,837 
Schedule of fair values of financial instruments
The following table shows the fair values of the Company’s financial instruments.
(Dollars in thousands)Carrying or Contract ValueFair ValueLevel 1Level 2Level 3
September 30, 2020     
Assets:     
Cash and due from banks$62,575 $62,575 $62,575 $— $— 
Federal funds sold and interest bearing deposits with other banks91,641 91,641 91,641 — — 
Investment securities, available-for-sale1,083,427 1,083,427 76,298 1,003,864 3,265 
Other investments27,674 27,674 27,674 — — 
Mortgages held for sale20,990 20,990 — 20,990 — 
Loans and leases, net of reserve for loan and lease losses5,490,219 5,568,395 — — 5,568,395 
Mortgage servicing rights3,729 4,000 — — 4,000 
Accrued interest receivable21,565 21,565 — 21,565 — 
Interest rate swaps53,027 53,027 — 53,027 — 
Liabilities:     
Deposits$5,896,855 $5,909,192 $4,598,859 $1,310,333 $— 
Short-term borrowings165,574 165,574 159,822 5,752 — 
Long-term debt and mandatorily redeemable securities81,659 82,894 — 82,894 — 
Subordinated notes58,764 57,617 — 57,617 — 
Accrued interest payable7,647 7,647 — 7,647 — 
Interest rate swaps53,988 53,988 — 53,988 — 
Off-balance-sheet instruments *— 289 — 289 — 
December 31, 2019     
Assets:     
Cash and due from banks$67,215 $67,215 $67,215 $— $— 
Federal funds sold and interest bearing deposits with other banks16,150 16,150 16,150 — — 
Investment securities, available-for-sale1,040,583 1,040,583 80,393 957,898 2,292 
Other investments28,414 28,414 28,414 — — 
Mortgages held for sale20,277 20,277 — 20,277 — 
Loans and leases, net of reserve for loan and lease losses4,974,273 4,992,684 — — 4,992,684 
Mortgage servicing rights4,200 5,986 — — 5,986 
Accrued interest receivable19,125 19,125 — 19,125 — 
Interest rate swaps21,975 21,975 — 21,975 — 
Liabilities:     
Deposits$5,357,326 $5,362,633 $3,708,828 $1,653,805 $— 
Short-term borrowings145,893 145,893 120,891 25,002 — 
Long-term debt and mandatorily redeemable securities71,639 71,084 — 71,084 — 
Subordinated notes58,764 61,469 — 61,469 — 
Accrued interest payable13,918 13,918 — 13,918 — 
Interest rate swaps22,352 22,352 — 22,352 — 
Off-balance-sheet instruments *— 281 — 281 — 

* Represents estimated cash outflows required to currently settle the obligations at current market rates.
Recurring  
Fair value measurements  
Schedule of valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis
The following table shows the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring basis.
(Dollars in thousands)Fair ValueValuation MethodologyUnobservable InputsRange of InputsWeighted Average
September 30, 2020    
Debt securities available-for sale    
Direct placement municipal securities
$3,265 Discounted cash flowsCredit spread assumption
1.12% - 2.52%
1.47 %
December 31, 2019    
Debt securities available-for sale
    
Direct placement municipal securities
$2,292 Discounted cash flowsCredit spread assumption
0.12% - 2.85%
Non-recurring  
Fair value measurements  
Schedule of valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis
The following table below shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a non-recurring basis.
(Dollars in thousands)Carrying ValueFair ValueValuation MethodologyUnobservable InputsRange of InputsWeighted Average
September 30, 2020     
Impaired loans$19,802 $19,802 Collateral based measurements including appraisals, trade publications, and auction valuesDiscount for lack of marketability and current conditions
0% - 90%
28 %
Mortgage servicing rights3,729 4,000 Discounted cash flowsConstant prepayment rate (CPR)
15.3% - 24.7%
21.7 %
    Discount rate
8.4% - 11.2%
8.6 %
Repossessions4,639 4,898 Appraisals, trade publications and auction valuesDiscount for lack of marketability
3% - 16%
5 %
Other real estate303 324 AppraisalsDiscount for lack of marketability
0% - 6%
6 %
December 31, 2019     
Impaired loans$8,492 $8,492 Collateral based measurements including appraisals, trade publications, and auction valuesDiscount for lack of marketability and current conditions
0% - 90%
Mortgage servicing rights4,200 5,986 Discounted cash flowsConstant prepayment rate (CPR)
10.2% - 28.1%
    Discount rate
9.3% - 12.1%
Repossessions8,623 9,211 Appraisals, trade publications and auction valuesDiscount for lack of marketability
3% - 25%
Other real estate522 564 AppraisalsDiscount for lack of marketability
0% - 11%