Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2022

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 March 31, 2022	Total		Level 1		Level 2		Level 3
Marketable equity securities	$	2,801	$	2,801
Debt securities available for sale:
Obligations of U.S. government corporations and agencies	1,690,744				1,690,744
Obligations of states and political subdivisions	267,195				267,195
Corporate bonds	7,616				7,616
Asset backed securities	397,352				397,352
Loans held for sale	1,030				1,030
Mortgage servicing rights	6,405						6,405
Total assets measured at fair value	$	2,373,143	$	2,801	$	2,363,937	$	6,405

Fair value at December 31, 2021	Total		Level 1		Level 2		Level 3
Marketable equity securities	$	2,938	$	2,938	$	—	$	—
Debt securities available for sale:
Obligations of U.S. government corporations and agencies	1,257,389		—		1,257,389		—
Obligations of states and political subdivisions	192,244		—		192,244		—
Corporate bonds	6,756		—		6,756		—
Asset backed securities	751,549		—		751,549		—
Loans held for sale	3,466		—		3,466		—
Mortgage servicing rights	5,874		—		—		5,874
Total assets measured at fair value	$	2,220,216	$	2,938	$	2,211,404	$	5,874

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 time periods indicated. Had there been any transfer into or out of Level 3 during the time periods indicated, 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):

Three months ended March 31,	Beginning Balance		Transfers into (out of) Level 3	Change Included in Earnings		Issuances		Ending Balance
2022: Mortgage servicing rights	$	5,874	—	$	274	$	257	$	6,405
2021: Mortgage servicing rights	$	5,092	—	$	12	$	503	$	5,607

Three months ended March 31,

Quantitative Information about Recurring Level 3 Fair Value Measurements

The following table presents quantitative information about recurring Level 3 fair value measurements at March 31, 2022 and December 31, 2021:

As of March 31, 2022:	Fair Value (in thousands)		Valuation Technique	Unobservable Inputs	Range, Weighted Average
Mortgage Servicing Rights	$	6,405	Discounted cash flow	Constant prepayment rate	9% - 16%; 9.8%
				Discount rate	10% - 14%; 12%
As of December 31, 2021:
Mortgage Servicing Rights	$	5,874	Discounted cash flow	Constant prepayment rate	11% - 15.8%; 12.5%
				Discount rate	10% - 14%; 12%

Assets and Liabilities Measured at Fair Value on Nonrecurring Basis

The tables below present the recorded investment in assets and liabilities measured at fair value on a nonrecurring basis, as of the dates indicated (in thousands):

March 31, 2022	Total		Level 1		Level 2		Level 3		Total Losses
Fair value:
Individually evaluated loans	$	684	—		—		$	684	$	(615)
Foreclosed assets	313		—		—		313		(294)
Total assets measured at fair value	$	997	$	—	$	—	$	997	$	(909)

December 31, 2021	Total		Level 1	Level 2	Level 3		Total Losses
Fair value:
Individually evaluated loans	$	3,683	—	—	$	3,683	$	(1,105)
Foreclosed assets	—		—	—	—		—
Total assets measured at fair value	$	3,683	—	—	$	3,683	$	(1,105)

March 31, 2021	Total		Level 1	Level 2	Level 3		Total Losses
Fair value:
Individually evaluated loans	$	4,557	—	—	$	4,557	$	(2,710)
Foreclosed assets	214		—	—	214		(31)
Total assets measured at fair value	$	4,771	—	—	$	4,771	$	(2,741)

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 March 31, 2022:

March 31, 2022	Fair Value (in thousands)		Valuation Technique	Unobservable Inputs	Range, Weighted Average
Individually evaluated loans	$	684	Sales comparison approach Income approach	Adjustment for differences between comparable sales; Capitalization rate	Not meaningful N/A
Foreclosed assets (Residential real estate)	$	313	Sales comparison approach	Adjustment for differences between comparable sales	Not meaningful N/A

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, 2021:

December 31, 2021	Fair Value (in thousands)		Valuation Technique	Unobservable Inputs	Range, Weighted Average
Individually evaluated loans	$	3,683	Sales comparison approach Income approach	Adjustment for differences between comparable sales; Capitalization rate	Not meaningful N/A

Estimated Fair Values of Financial Instruments that are Reported at Amortized Cost in Consolidated Balance Sheets

	March 31, 2022				December 31, 2021
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Level 1 inputs:
Cash and due from banks	$	49,705	$	49,705	$	57,032	$	57,032
Cash at Federal Reserve and other banks	985,978		985,978		711,389		711,389
Level 2 inputs:
Securities held to maturity	186,748		183,970		199,759		208,140
Restricted equity securities	17,250		N/A		17,250		N/A
Level 3 inputs:
Loans, net	5,755,926		5,761,682		4,831,248		4,880,044
Financial liabilities:
Level 2 inputs:
Deposits	8,714,477		8,710,991		7,367,159		7,366,422
Other borrowings	36,184		36,184		50,087		50,087
Level 3 inputs:
Junior subordinated debt	100,984		107,396		58,079		57,173

(in thousands)	Contract Amount		Fair Value		Contract Amount		Fair Value
Off-balance sheet:
Level 3 inputs:
Commitments	$	1,974,544	$	19,745	$	1,586,068	$	15,861
Standby letters of credit	28,472		285		21,871		219
Overdraft privilege commitments	124,816		1,249		125,670		1,257