XML 79 R60.htm IDEA: XBRL DOCUMENT v3.22.4
Fair Value Measurement (Tables)
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Recorded Amount of Assets and Liabilities Measured at Fair Value on Recurring Basis
The tables below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis (in thousands):
Fair value at December 31, 2022TotalLevel 1Level 2Level 3
Marketable equity securities$2,598 $2,598 $— $— 
Debt securities available for sale:
Obligations of U.S. government agencies1,372,769 — 1,372,769 — 
Obligations of states and political subdivisions293,205 — 293,205 — 
Corporate bonds5,751 — 5,751 — 
Asset backed securities439,767 — 439,767 — 
Non-agency collateralized mortgage obligations340,946 — 340,946 — 
Loans held for sale1,846 — 1,846 — 
Mortgage servicing rights6,712 — — 6,712 
Total assets measured at fair value$2,463,594 $2,598 $2,454,284 $6,712 
Fair value at December 31, 2021TotalLevel 1Level 2Level 3
Marketable equity securities$2,938 $2,938 $— $— 
Debt securities available for sale:
Obligations of U.S. government agencies1,257,389 — 1,257,389 — 
Obligations of states and political subdivisions192,244 — 192,244 — 
Corporate bonds6,756 — 6,756 — 
Asset backed securities409,552 — 409,552 — 
Non-agency collateralized mortgage obligation341,997 — 341,997 — 
Loans held for sale3,466 — 3,466 — 
Mortgage servicing rights5,874 — — 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 years ended December 31, 2022, 2021, and 2020. Had there been any transfer into or out of Level 3 during 2022, 2021, or 2020, 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
2022: Mortgage servicing rights$5,874 — $301 $537 $6,712 
2021: Mortgage servicing rights$5,092 — $(872)$1,654 $5,874 
2020: Mortgage servicing rights$6,200 — $(2,634)$1,526 $5,092 
Quantitative Information about Recurring Level 3 Fair Value Measurements
The following table present quantitative information about recurring Level 3 fair value measurements at December 31, 2022 and 2021:
December 31, 2022Fair Value
(in thousands)		Valuation
Technique		Unobservable
Inputs		Range,
Weighted
Average
Mortgage Servicing Rights$6,712Discounted
cash flow		Constant
prepayment rate
116%-226%, 127%
Discount rate
10%-14%, 12%
December 31, 2021
Mortgage Servicing Rights$5,874Discounted
cash flow		Constant
prepayment rate
187%-264%, 208%
Discount rate
10%-14%, 12%
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. The gains (losses) represent the amounts recorded during the period regardless of whether the asset is still held at fair value at period end (in thousands):
December 31, 2022TotalLevel 1Level 2Level 3Total Gains
(Losses)
Fair value:
Individually evaluated loans$5,719 — — $5,719 $(2,283)
Real estate owned311 — — 311 481 
Total assets measured at fair value$6,030 — — $6,030 $(1,802)
December 31, 2021TotalLevel 1Level 2Level 3Total Gains
(Losses)
Fair value:
Individually evaluated loans$3,683 — — $3,683 $(1,105)
Quantitative Information about Level 3 Fair Value Measurements for Financial Instruments Measured at Fair Value on Nonrecurring Basis
The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis at December 31, 2022 and 2021:
December 31, 2022Fair Value
(in thousands)		Valuation TechniqueUnobservable InputsRange,
Weighted Average
Individually evaluated loans$5,719 Sales comparison
approach
Income approach		Adjustment for differences between
comparable sales; Capitalization rate		Not meaningful;
N/A
Real estate owned (Residential)$311 Sales comparison
approach		Adjustment for differences between
comparable sales		Not meaningful;
N/A
December 31, 2021Fair Value
(in thousands)		Valuation TechniqueUnobservable InputsRange,
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
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, 2022December 31, 2021
Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
Financial assets:
Level 1 inputs:
Cash and due from banks$96,323 $96,323 $57,032 $57,032 
Cash at Federal Reserve and other banks10,907 10,907 711,389 711,389 
Level 2 inputs:
Securities held to maturity160,983 149,938 199,759 208,140 
Restricted equity securities17,250 n/a17,250 N/A
Level 3 inputs:
Loans, net
6,344,767 6,153,155 4,831,248 4,880,044 
Financial liabilities:
Level 2 inputs:
Deposits8,329,013 8,321,517 7,367,159 7,366,422 
Other borrowings264,605 264,605 50,087 50,087 
Level 3 inputs:
Junior subordinated debt101,040 92,613 58,079 57,173 
Contract
Amount		Fair
Value		Contract
Amount		Fair
Value
Off-balance sheet:
Level 3 inputs:
Commitments (1)$2,188,560 $21,886 $1,586,068 $15,861 
Standby letters of credit (1)26,599 266 21,871 219 
Overdraft privilege commitments (1)126,634 1,266 125,670 1,257