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Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2023
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 
June 30, 2023    
Mortgages held for sale reported at fair value$2,321 $2,080 $241 (1)
December 31, 2022    
Mortgages held for sale reported at fair value$3,914 $3,766 $148 (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
June 30, 2023    
Assets:    
Investment securities available-for-sale:    
U.S. Treasury and Federal agencies securities$543,221 $416,057 $— $959,278 
U.S. States and political subdivisions securities— 98,662 4,249 102,911 
Mortgage-backed securities — Federal agencies— 590,435 — 590,435 
Corporate debt securities— 8,201 — 8,201 
Foreign government and other securities— 580 — 580 
Total debt securities available-for-sale543,221 1,113,935 4,249 1,661,405 
Mortgages held for sale— 2,321 — 2,321 
Accrued income and other assets (interest rate swap agreements)— 24,843 — 24,843 
Total$543,221 $1,141,099 $4,249 $1,688,569 
Liabilities:    
Accrued expenses and other liabilities (interest rate swap agreements)$— $25,311 $— $25,311 
Total$— $25,311 $— $25,311 
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 
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 June 30, 2023 and 2022.
(Dollars in thousands)U.S. States and
political
subdivisions
securities
Beginning balance April 1, 2023$4,321 
Total gains or losses (realized/unrealized): 
Included in earnings— 
Included in other comprehensive income (loss)(72)
Purchases— 
Issuances— 
Sales— 
Settlements— 
Maturities— 
Transfers into Level 3— 
Transfers out of Level 3— 
Ending balance June 30, 2023$4,249 
Beginning balance April 1, 2022$4,529 
Total gains or losses (realized/unrealized): 
Included in earnings— 
Included in other comprehensive income (loss)(14)
Purchases— 
Issuances— 
Sales— 
Settlements— 
Maturities— 
Transfers into Level 3— 
Transfers out of Level 3— 
Ending balance June 30, 2022$4,515 
Schedule of carrying value of assets measured at fair value on a non-recurring basis
The following table shows the carrying value of assets measured at fair value on a non-recurring basis.
(Dollars in thousands)Level 1Level 2Level 3Total
June 30, 2023    
Collateral-dependent impaired loans$— $— $6,440 $6,440 
Accrued income and other assets (mortgage servicing rights)— — 3,874 3,874 
Accrued income and other assets (repossessions)— — 47 47 
Accrued income and other assets (other real estate)— — 193 193 
Total$— $— $10,554 $10,554 
December 31, 2022    
Collateral-dependent impaired loans$— $— $— $— 
Accrued income and other assets (mortgage servicing rights)— — 4,137 4,137 
Accrued income and other assets (repossessions)— — 327 327 
Accrued income and other assets (other real estate)— — 104 104 
Total$— $— $4,568 $4,568 
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
June 30, 2023     
Assets:     
Cash and due from banks$86,742 $86,742 $86,742 $— $— 
Federal funds sold and interest bearing deposits with other banks25,933 25,933 25,933 — — 
Investment securities, available-for-sale1,661,405 1,661,405 543,221 1,113,935 4,249 
Other investments25,320 25,320 25,320 — — 
Mortgages held for sale2,321 2,321 — 2,321 — 
Loans and leases, net of allowance for loan and lease losses6,071,801 5,854,883 — — 5,854,883 
Mortgage servicing rights3,874 8,217 — — 8,217 
Accrued interest receivable25,144 25,144 — 25,144 — 
Interest rate swaps24,843 24,843 — 24,843 — 
Liabilities:     
Deposits$6,976,518 $6,960,416 $5,413,344 $1,547,072 $— 
Short-term borrowings187,685 187,685 68,004 119,681 — 
Long-term debt and mandatorily redeemable securities46,649 45,381 — 45,381 — 
Subordinated notes58,764 50,327 — 50,327 — 
Accrued interest payable20,215 20,215 — 20,215 — 
Interest rate swaps25,311 25,311 — 25,311 — 
Off-balance-sheet instruments *— 94 — 94 — 
December 31, 2022     
Assets:     
Cash and due from banks$84,703 $84,703 $84,703 $— $— 
Federal funds sold and interest bearing deposits with other banks38,094 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 — 
* 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
June 30, 2023    
Debt securities available-for sale    
Direct placement municipal securities
$4,249 Discounted cash flowsCredit spread assumption
0.20% - 4.93%
4.75 %
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 %
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
June 30, 2023     
Collateral-dependent impaired loans$6,440 $6,440 Collateral based measurements including appraisals, trade publications, and auction valuesDiscount for lack of marketability and current conditions
20% - 63%
45.7 %
Mortgage servicing rights3,874 8,217 Discounted cash flowsConstant prepayment rate (CPR)
5.5% - 29.0%
7.7 %
    Discount rate
11.6% - 14.4%
11.8 %
Repossessions47 49 Appraisals, trade publications and auction valuesDiscount for lack of marketability
0% - 11%
4 %
Other real estate193 202 AppraisalsDiscount for lack of marketability
0% - 11%
5 %
December 31, 2022     
Collateral-dependent impaired loans$— $— Collateral based measurements including appraisals, trade publications, and auction valuesDiscount for lack of marketability and current conditions
0% - 0%
0.0 %
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 %