XML 71 R57.htm IDEA: XBRL DOCUMENT v3.20.4
Fair Value Measurement (Tables)
 12 Months Ended
Dec. 31, 2020
Fair Value Disclosures [Abstract]  
Recorded Amount of Assets and Liabilities Measured at Fair Value on Recurring Basis
The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis (in thousands):
Fair value at December 31, 2020TotalLevel 1Level 2Level 3
Marketable equity securities$3,025 $3,025 $— $— 
Debt securities available for sale:
Obligations of U.S. government agencies812,374 — 812,374 — 
Obligations of states and political subdivisions129,095 — 129,095 — 
Corporate bonds2,544 — 2,544 — 
Asset backed securities470,251 — 470,251 — 
Loans held for sale6,268 — 6,268 — 
Mortgage servicing rights5,092 — — 5,092 
Total assets measured at fair value$1,428,649 $3,025 $1,420,532 $5,092 
Fair value at December 31, 2019TotalLevel 1Level 2Level 3
Marketable equity securities$2,960 $2,960 $— $— 
Debt securities available for sale:
Obligations of U.S. government agencies472,980 — 472,980 — 
Obligations of states and political subdivisions109,601 — 109,601 — 
Corporate bonds2,532 — 2,532 — 
Asset backed securities365,025 — 365,025 — 
Loans held for sale5,265 — 5,265 — 
Mortgage servicing rights6,200 — — 6,200 
Total assets measured at fair value$964,563 $2,960 $955,403 $6,200 
Reconciliation of Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) on Recurring Basis
The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the years ended December 31, 2020, 2019, and 2018. Had there been any transfer into or out of Level 3 during 2020, 2019, or 2018, the amount included in the “Transfers into (out of) Level 3” column would represent the beginning balance of an item in the period (interim quarter) during which it was transferred (in thousands):
Year ended December 31,Beginning
Balance		Transfers
into (out of)
Level 3		Change
Included
in Earnings		IssuancesEnding
Balance
2020: Mortgage servicing rights$6,200 — $(2,634)$1,526 $5,092 
2019: Mortgage servicing rights$7,098 — $(1,811)$913 $6,200 
2018: Mortgage servicing rights$6,687 — $(146)$557 $7,098 
Quantitative Information about Recurring Level 3 Fair Value Measurements
The following table presents quantitative information about recurring Level 3 fair value measurements at December 31, 2020 and 2019:
December 31, 2020Fair Value
(in thousands)		Valuation
Technique		Unobservable
Inputs		Range,
Weighted
Average
Mortgage Servicing Rights$5,092Discounted
cash flow		Constant
prepayment rate
14.4%-20.0%, 17.6%
Discount rate
10.0%-14.0%, 12.0%
December 31, 2019
Mortgage Servicing Rights$6,200Discounted
cash flow		Constant
prepayment rate
5.0%-27.3%, 7.6%
Discount rate
12.0%-13.0%, 12.0%
Assets and Liabilities Measured at Fair Value on Nonrecurring Basis
The tables below present the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis, as of the dates indicated, that had a write-down or an additional allowance provided during the periods indicated (in thousands):
Year ended December 31, 2020TotalLevel 1Level 2Level 3Total Gains
(Losses)
Fair value:
Impaired loans$1,424 — — $1,424 $(1,489)
Real estate owned979 — — 979 155 
Total assets measured at fair value$2,403 — — $2,403 $(1,334)
Year ended December 31, 2019TotalLevel 1Level 2Level 3Total Gains
(Losses)
Fair value:
Impaired loans$1,055 — — $1,055 $(652)
Real estate owned417 — — 417 (27)
Total assets measured at fair value$1,472 — — $1,472 $(679)
Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Nonrecurring Basis
The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at December 31, 2020 and 2019:
December 31, 2020Fair Value
(in thousands)		Valuation TechniqueUnobservable InputsRange,
Weighted Average
Impaired loans$1,424 Sales comparison
approach
Income approach		Adjustment for differences between
comparable sales; Capitalization rate		Not meaningful;
N/A
Real estate owned (Land)$155 Sales comparison
approach		Adjustment for differences between
comparable sales		Not meaningful;
N/A
Real estate owned (Residential)$824 Sales comparison
approach		Adjustment for differences between
comparable sales		Not meaningful;
N/A

December 31, 2019Fair Value
(in thousands)		Valuation TechniqueUnobservable InputsRange,
Weighted Average
Impaired loans$1,055 Sales comparison
approach Income
approach		Adjustment for differences between
comparable sales Capitalization rate		Not meaningful;
N/A
Real estate owned (Residential)$417 Sales comparison
approach		Adjustment for differences between
comparable sales		Not meaningful;
N/A
Estimated Fair Values of Financial Instruments that are Reported at Amortized Cost in Consolidated Balance Sheets
The estimated fair values of financial instruments that are reported at amortized cost in the Corporation’s consolidated balance sheets, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value, were as follows (in thousands):
December 31, 2020December 31, 2019
Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
Financial assets:
Level 1 inputs:
Cash and due from banks$77,253 $77,253 $92,816 $92,816 
Cash at Federal Reserve and other banks592,298 592,298 183,691 183,691 
Level 2 inputs:
Securities held to maturity284,563 298,726 375,606 381,525 
Restricted equity securities17,250 N/A17,250 N/A
Level 3 inputs:
Loans, net
4,671,280 4,753,027 4,276,750 4,263,064 
Financial liabilities:
Level 2 inputs:
Deposits6,505,934 6,507,235 5,366,994 5,365,921 
Other borrowings26,914 26,914 18,454 18,454 
Level 3 inputs:
Junior subordinated debt57,635 56,632 57,232 56,297 

Contract
Amount		Fair
Value		Contract
Amount		Fair
Value
Off-balance sheet:
Level 3 inputs:
Commitments (1)
$1,426,827 $14,268 $1,309,326 $13,093 
Standby letters of credit (1)
15,056 151 12,014 120 
Overdraft privilege commitments (1)
110,813 1,108 110,402 1,104