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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2021
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, 2021    
Mortgages held for sale reported at fair value$34,594 $32,824 $1,770 (1)
December 31, 2020    
Mortgages held for sale reported at fair value$12,885 $11,045 $1,840 (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, 2021    
Assets:    
Investment securities available-for-sale:    
U.S. Treasury and Federal agencies securities$372,074 $521,598 $— $893,672 
U.S. States and political subdivisions securities— 92,721 1,829 94,550 
Mortgage-backed securities — Federal agencies— 571,150 — 571,150 
Corporate debt securities— 23,268 — 23,268 
Foreign government and other securities— 600 — 600 
Total debt securities available-for-sale372,074 1,209,337 1,829 1,583,240 
Mortgages held for sale— 34,594 — 34,594 
Accrued income and other assets (interest rate swap agreements)— 28,368 — 28,368 
Total$372,074 $1,272,299 $1,829 $1,646,202 
Liabilities:    
Accrued expenses and other liabilities (interest rate swap agreements)$— $28,975 $— $28,975 
Total$— $28,975 $— $28,975 
December 31, 2020    
Assets:    
Investment securities available-for-sale:    
U.S. Treasury and Federal agencies securities$80,285 $539,197 $— $619,482 
U.S. States and political subdivisions securities— 78,975 2,152 81,127 
Mortgage-backed securities — Federal agencies— 453,789 — 453,789 
Corporate debt securities— 42,369 — 42,369 
Foreign government and other securities— 700 — 700 
Total debt securities available-for-sale80,285 1,115,030 2,152 1,197,467 
Mortgages held for sale— 12,885 — 12,885 
Accrued income and other assets (interest rate swap agreements)— 46,654 — 46,654 
Total$80,285 $1,174,569 $2,152 $1,257,006 
Liabilities:    
Accrued expenses and other liabilities (interest rate swap agreements)$— $47,681 $— $47,681 
Total$— $47,681 $— $47,681 
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, 2021 and 2020.
(Dollars in thousands)U.S. States and
political
subdivisions
securities
Beginning balance July 1, 2021$1,921 
Total gains or losses (realized/unrealized): 
Included in earnings— 
Included in other comprehensive income(7)
Purchases— 
Issuances— 
Sales— 
Settlements— 
Maturities(85)
Transfers into Level 3— 
Transfers out of Level 3— 
Ending balance September 30, 2021$1,829 
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$3,265 
Schedule of carrying value of assets measured at fair value on a non-recurring basis
The following table shows the carrying value of assets measured at fair value on a non-recurring basis.
(Dollars in thousands)Level 1Level 2Level 3Total
September 30, 2021    
Collateral-dependent impaired loans$— $— $1,332 $1,332 
Accrued income and other assets (mortgage servicing rights)— — 4,519 4,519 
Accrued income and other assets (repossessions)— — 690 690 
Accrued income and other assets (other real estate)— — — — 
Total$— $— $6,541 $6,541 
December 31, 2020    
Collateral-dependent impaired loans$— $— $11,991 $11,991 
Accrued income and other assets (mortgage servicing rights)— — 3,804 3,804 
Accrued income and other assets (repossessions)— — 1,976 1,976 
Accrued income and other assets (other real estate)— — 359 359 
Total$— $— $18,130 $18,130 
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, 2021     
Assets:     
Cash and due from banks$77,740 $77,740 $77,740 $— $— 
Federal funds sold and interest bearing deposits with other banks559,542 559,542 559,542 — — 
Investment securities, available-for-sale1,583,240 1,583,240 372,074 1,209,337 1,829 
Other investments27,189 27,189 27,189 — — 
Mortgages held for sale34,594 34,594 — 34,594 — 
Loans and leases, net of allowance for loan and lease losses5,225,042 5,290,270 — — 5,290,270 
Mortgage servicing rights4,519 4,999 — — 4,999 
Accrued interest receivable18,556 18,556 — 18,556 — 
Interest rate swaps28,368 28,368 — 28,368 — 
Liabilities:     
Deposits$6,522,505 $6,526,220 $5,584,989 $941,231 $— 
Short-term borrowings215,665 215,665 208,398 7,267 — 
Long-term debt and mandatorily redeemable securities81,301 81,753 — 81,753 — 
Subordinated notes58,764 58,537 — 58,537 — 
Accrued interest payable2,424 2,424 — 2,424 — 
Interest rate swaps28,975 28,975 — 28,975 — 
Off-balance-sheet instruments *— 385 — 385 — 
December 31, 2020     
Assets:     
Cash and due from banks$74,186 $74,186 $74,186 $— $— 
Federal funds sold and interest bearing deposits with other banks168,861 168,861 168,861 — — 
Investment securities, available-for-sale1,197,467 1,197,467 80,285 1,115,030 2,152 
Other investments27,429 27,429 27,429 — — 
Mortgages held for sale12,885 12,885 — 12,885 — 
Loans and leases, net of allowance for loan and lease losses5,348,647 5,417,396 — — 5,417,396 
Mortgage servicing rights3,804 4,038 — — 4,038 
Accrued interest receivable20,242 20,242 — 20,242 — 
Interest rate swaps46,654 46,654 — 46,654 — 
Liabilities:     
Deposits$5,946,028 $5,955,545 $4,778,671 $1,176,874 $— 
Short-term borrowings150,641 150,641 143,730 6,911 — 
Long-term debt and mandatorily redeemable securities81,864 82,965 — 82,965 — 
Subordinated notes58,764 58,560 — 58,560 — 
Accrued interest payable3,996 3,996 — 3,996 — 
Interest rate swaps47,681 47,681 — 47,681 — 
Off-balance-sheet instruments *— 321 — 321 — 
* 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, 2021    
Debt securities available-for sale    
Direct placement municipal securities
$1,829 Discounted cash flowsCredit spread assumption
1.61% - 2.79%
2.11 %
December 31, 2020    
Debt securities available-for sale
    
Direct placement municipal securities
$2,152 Discounted cash flowsCredit spread assumption
0.04% - 2.30%
1.55 %
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, 2021     
Collateral-dependent impaired loans$1,332 $1,332 Collateral based measurements including appraisals, trade publications, and auction valuesDiscount for lack of marketability and current conditions
20% - 90%
30.7 %
Mortgage servicing rights4,519 4,999 Discounted cash flowsConstant prepayment rate (CPR)
12.7% - 20.2%
17.7 %
    Discount rate
8.6% - 11.5%
8.8 %
Repossessions690 725 Appraisals, trade publications and auction valuesDiscount for lack of marketability
3% - 11%
5 %
Other real estate— — AppraisalsDiscount for lack of marketability
0% - 0%
0 %
December 31, 2020     
Collateral-dependent impaired loans$11,991 $11,991 Collateral based measurements including appraisals, trade publications, and auction valuesDiscount for lack of marketability and current conditions
0% - 100%
43.7 %
Mortgage servicing rights3,804 4,038 Discounted cash flowsConstant prepayment rate (CPR)
16.2% - 30.5%
22.8 %
    Discount rate
8.3% - 11.1%
8.5 %
Repossessions1,976 2,144 Appraisals, trade publications and auction valuesDiscount for lack of marketability
0% - 16%
8 %
Other real estate359 388 AppraisalsDiscount for lack of marketability
6% - 13%
7 %