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Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 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 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 on December 31, 2022 and 2021.
(Dollars in thousands) Fair value carrying amountAggregate unpaid principalExcess of fair value carrying amount over (under) unpaid principal 
December 31, 2022    
Mortgages held for sale reported at fair value:    
Total Loans$3,914 $3,766 $148 (1)
December 31, 2021    
Mortgages held for sale reported at fair value:    
Total Loans$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
December 31, 2022
Assets:    
Investment securities available-for-sale:    
U.S. Treasury and Federal agencies securities$573,679 $424,919 $ $998,598 
U.S. States and political subdivisions securities 121,298 1,464 122,762 
Mortgage-backed securities - Federal agencies 637,058  637,058 
Corporate debt securities 16,131  16,131 
Foreign government and other securities 579  579 
Total debt securities available-for-sale573,679 1,199,985 1,464 1,775,128 
Mortgages held for sale 3,914  3,914 
Accrued income and other assets (interest rate swap agreements) 24,838  24,838 
Total$573,679 $1,228,737 $1,464 $1,803,880 
Liabilities:    
Accrued expenses and other liabilities (interest rate swap agreements)$ $25,307 $ $25,307 
Total$ $25,307 $ $25,307 
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 Level 3 assets and liabilities measured at fair value on a recurring basis
The following table shows the changes in Level 3 assets and liabilities measured at fair value on a recurring basis.
(Dollars in thousands)U.S. States and political subdivisions securities
Beginning balance January 1, 2022$1,849 
Total gains or losses (realized/unrealized): 
Included in earnings 
Included in other comprehensive income(135)
Purchases3,000 
Issuances 
Sales 
Settlements 
Maturities(3,250)
Transfers into Level 3 
Transfers out of Level 3 
Ending balance December 31, 2022$1,464 
Beginning balance January 1, 2021$2,152 
Total gains or losses (realized/unrealized): 
Included in earnings— 
Included in other comprehensive income(15)
Purchases— 
Issuances— 
Sales— 
Settlements— 
Maturities(288)
Transfers into Level 3— 
Transfers out of Level 3— 
Ending balance December 31, 2021$1,849 
Schedule of carrying value of assets measured at fair value on a non-recurring basis
The following table shows the carrying value of assets measured at fair value on a non-recurring basis.
(Dollars in thousands)Level 1Level 2Level 3Total
December 31, 2022    
Collateral-dependent impaired loans$ $ $ $ 
Accrued income and other assets (mortgage servicing rights)  4,137 4,137 
Accrued income and other assets (repossessions)  327 327 
Accrued income and other assets (other real estate)  104 104 
Total$ $ $4,568 $4,568 
December 31, 2021    
Collateral-dependent impaired loans$— $— $571 $571 
Accrued income and other assets (mortgage servicing rights)— — 4,671 4,671 
Accrued income and other assets (repossessions)— — 861 861 
Accrued income and other assets (other real estate)— — — — 
Total$— $— $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
December 31, 2022     
Assets:     
Cash and due from banks$84,703 $84,703 $84,703 $ $ 
Federal funds sold and interest bearing deposits with other banks
38,094 38,094 38,094   
Investment securities, available-for-sale1,775,128 1,775,128 573,679 1,199,985 1,464 
Other investments25,293 25,293 25,293   
Mortgages held for sale3,914 3,914  3,914  
Loans and leases, net of allowance for loan and lease losses5,871,894 5,712,972   5,712,972 
Mortgage servicing rights4,137 8,007   8,007 
Accrued interest receivable24,747 24,747  24,747  
Interest rate swaps24,838 24,838  24,838  
Liabilities:     
Deposits$6,928,265 $6,909,392 $5,787,806 $1,121,586 $ 
Short-term borrowings215,529 215,529 139,079 76,450  
Long-term debt and mandatorily redeemable securities46,555 45,111  45,111  
Subordinated notes58,764 51,398  51,398  
Accrued interest payable5,999 5,999  5,999  
Interest rate swaps25,307 25,307  25,307  
Off-balance-sheet instruments * 108  108  
December 31, 2021     
Assets:     
Cash and due from banks$54,420 $54,420 $54,420 $— $— 
Federal funds sold and interest bearing deposits with other banks
470,767 470,767 470,767 — — 
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 and liabilities measured at fair value on a recurring basis.
(Dollars in thousands)Fair valueValuation MethodologyUnobservable InputsRange of InputsWeighted Average
December 31, 2022
Debt securities available-for-sale    
Direct placement municipal securities$1,464 Discounted cash flowsCredit spread assumption
0.22% - 4.09%
3.49 %
December 31, 2021
Debt securities available-for-sale
Direct placement municipal securities$1,849 Discounted cash flowsCredit spread assumption
0.04% - 2.31%
1.58 %
Non-recurring  
Fair value measurements  
Schedule of valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis
The following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a non-recurring basis.
(Dollars in thousands)Carrying ValueFair ValueValuation MethodologyUnobservable InputsRange of InputsWeighted Average
December 31, 2022
Collateral-dependent impaired loans$ $ Collateral based measurements including appraisals, trade publications, and auction valuesDiscount for lack of marketability and current conditions
0% - 0%
0 %
Mortgage servicing rights4,137 8,007 Discounted cash flowsConstant prepayment rate (CPR)
7.6% - 9.6%
8.2 %
    Discount rate
11.4% - 14.2%
11.5 %
Repossessions327 370 Appraisals, trade publications and auction valuesDiscount for lack of marketability
2% - 9%
7 %
Other real estate104 104 AppraisalsDiscount for lack of marketability
0% - 0%
0 %
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%
%
Other real estate— — AppraisalsDiscount for lack of marketability
0% - 0%
0 %