XML 44 R33.htm IDEA: XBRL DOCUMENT v3.22.2.2
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2022
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, 2022    
Mortgages held for sale reported at fair value$3,058 $2,942 $116 (1)
December 31, 2021    
Mortgages held for sale reported at fair value$13,284 $12,456 $828 (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, 2022    
Assets:    
Investment securities available-for-sale:    
U.S. Treasury and Federal agencies securities$570,045 $461,532 $— $1,031,577 
U.S. States and political subdivisions securities— 110,833 4,398 115,231 
Mortgage-backed securities — Federal agencies— 637,690 — 637,690 
Corporate debt securities— 16,113 — 16,113 
Foreign government and other securities— 583 — 583 
Total debt securities available-for-sale570,045 1,226,751 4,398 1,801,194 
Mortgages held for sale— 3,058 — 3,058 
Accrued income and other assets (interest rate swap agreements)— 26,918 — 26,918 
Total$570,045 $1,256,727 $4,398 $1,831,170 
Liabilities:    
Accrued expenses and other liabilities (interest rate swap agreements)$— $27,424 $— $27,424 
Total$— $27,424 $— $27,424 
December 31, 2021    
Assets:    
Investment securities available-for-sale:    
U.S. Treasury and Federal agencies securities$561,950 $522,056 $— $1,084,006 
U.S. States and political subdivisions securities— 93,852 1,849 95,701 
Mortgage-backed securities — Federal agencies— 659,727 — 659,727 
Corporate debt securities— 23,009 — 23,009 
Foreign government and other securities— 598 — 598 
Total debt securities available-for-sale561,950 1,299,242 1,849 1,863,041 
Mortgages held for sale— 13,284 — 13,284 
Accrued income and other assets (interest rate swap agreements)— 20,735 — 20,735 
Total$561,950 $1,333,261 $1,849 $1,897,060 
Liabilities:    
Accrued expenses and other liabilities (interest rate swap agreements)$— $21,172 $— $21,172 
Total$— $21,172 $— $21,172 
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, 2022 and 2021.
(Dollars in thousands)U.S. States and
political
subdivisions
securities
Beginning balance July 1, 2022$4,515 
Total gains or losses (realized/unrealized): 
Included in earnings— 
Included in other comprehensive income (loss)(32)
Purchases— 
Issuances— 
Sales— 
Settlements— 
Maturities(85)
Transfers into Level 3— 
Transfers out of Level 3— 
Ending balance September 30, 2022$4,398 
Beginning balance July 1, 2021$1,921 
Total gains or losses (realized/unrealized): 
Included in earnings— 
Included in other comprehensive income (loss)(7)
Purchases— 
Issuances— 
Sales— 
Settlements— 
Maturities(85)
Transfers into Level 3— 
Transfers out of Level 3— 
Ending balance September 30, 2021$1,829 
Schedule of carrying value of assets measured at fair value on a non-recurring basis
The following table shows the carrying value of assets measured at fair value on a non-recurring basis.
(Dollars in thousands)Level 1Level 2Level 3Total
September 30, 2022    
Collateral-dependent impaired loans$— $— $851 $851 
Accrued income and other assets (mortgage servicing rights)— — 4,298 4,298 
Accrued income and other assets (repossessions)— — 26 26 
Total$— $— $5,175 $5,175 
December 31, 2021    
Collateral-dependent impaired loans$— $— $571 $571 
Accrued income and other assets (mortgage servicing rights)— — 4,671 4,671 
Accrued income and other assets (repossessions)— — 861 861 
Total$— $— $6,103 $6,103 
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, 2022     
Assets:     
Cash and due from banks$86,952 $86,952 $86,952 $— $— 
Federal funds sold and interest bearing deposits with other banks30,652 30,652 30,652 — — 
Investment securities, available-for-sale1,801,194 1,801,194 570,045 1,226,751 4,398 
Other investments25,538 25,538 25,538 — — 
Mortgages held for sale3,058 3,058 — 3,058 — 
Loans and leases, net of allowance for loan and lease losses5,626,342 5,533,010 — — 5,533,010 
Mortgage servicing rights4,298 7,493 — — 7,493 
Accrued interest receivable20,625 20,625 — 20,625 — 
Interest rate swaps26,918 26,918 — 26,918 — 
Liabilities:     
Deposits$6,621,231 $6,602,827 $5,842,321 $760,506 $— 
Short-term borrowings340,462 340,462 143,181 197,281 — 
Long-term debt and mandatorily redeemable securities47,587 46,052 — 46,052 — 
Subordinated notes58,764 48,394 — 48,394 — 
Accrued interest payable3,133 3,133 — 3,133 — 
Interest rate swaps27,424 27,424 — 27,424 — 
Off-balance-sheet instruments *— 120 — 120 — 
December 31, 2021     
Assets:     
Cash and due from banks$54,420 $54,420 $54,420 $— $— 
Federal funds sold and interest bearing deposits with other banks470,767 470,767 470,767 — — 
Investment securities, available-for-sale1,863,041 1,863,041 561,950 1,299,242 1,849 
Other investments27,189 27,189 27,189 — — 
Mortgages held for sale13,284 13,284 — 13,284 — 
Loans and leases, net of allowance for loan and lease losses5,218,722 5,269,551 — — 5,269,551 
Mortgage servicing rights4,671 5,640 — — 5,640 
Accrued interest receivable17,760 17,760 — 17,760 — 
Interest rate swaps20,735 20,735 — 20,735 — 
Liabilities:     
Deposits$6,679,065 $6,680,163 $5,794,928 $885,235 $— 
Short-term borrowings200,027 200,027 192,801 7,226 — 
Long-term debt and mandatorily redeemable securities71,251 71,305 — 71,305 — 
Subordinated notes58,764 58,553 — 58,553 — 
Accrued interest payable1,885 1,885 — 1,885 — 
Interest rate swaps21,172 21,172 — 21,172 — 
Off-balance-sheet instruments *— 364 — 364 — 
* 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, 2022    
Debt securities available-for sale    
Direct placement municipal securities
$4,398 Discounted cash flowsCredit spread assumption
4.17% - 4.97%
4.79 %
December 31, 2021    
Debt securities available-for sale
    
Direct placement municipal securities
$1,849 Discounted cash flowsCredit spread assumption
0.04% - 2.31%
1.58 %
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, 2022     
Collateral-dependent impaired loans$851 $851 Collateral based measurements including appraisals, trade publications, and auction valuesDiscount for lack of marketability and current conditions
20% - 90%
36.2 %
Mortgage servicing rights4,298 7,493 Discounted cash flowsConstant prepayment rate (CPR)
7.4% - 10.4%
9.6 %
    Discount rate
11.9% - 14.7%
12.0 %
Repossessions26 30 Appraisals, trade publications and auction valuesDiscount for lack of marketability
0% - 13%
13 %
December 31, 2021     
Collateral-dependent impaired loans$571 $571 Collateral based measurements including appraisals, trade publications, and auction valuesDiscount for lack of marketability and current conditions
20% - 90%
43.1 %
Mortgage servicing rights4,671 5,640 Discounted cash flowsConstant prepayment rate (CPR)
11.8% - 18.5%
16.4 %
    Discount rate
8.6% - 11.5%
8.8 %
Repossessions861 942 Appraisals, trade publications and auction valuesDiscount for lack of marketability
0% - 21%
2 %