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FAIR VALUES OF FINANCIAL INSTRUMENTS: (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of assets and liabilities measured at fair value

The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs).


	December 31, 2021 Fair Value Measurement Using
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Carrying Value
U.S. Government entity mortgage-backed securities	$	—	$	120,123	$	—	$	120,123
Mortgage-backed securities, residential	—		626,428		—		626,428
Mortgage-backed securities, commercial	—		15,671		—		15,671
Collateralized mortgage obligations	—		175,005		—		175,005
State and municipal obligations	—		378,203		1,895		380,098
Municipal taxable	—		38,626		—		38,626
U.S. Treasury	—		204		—		204
Collateralized debt obligations	—		—		3,359		3,359
Other securities	—		3,477		1,743		5,220
TOTAL	$	—	$	1,357,737	$	6,997	$	1,364,734
Derivative Assets			$	1,030
Derivative Liabilities			(1,030)


	December 31, 2020 Fair Value Measurement Using
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Carrying Value
U.S. Government entity mortgage-backed securities	$	—	$	97,814	$	—	$	97,814
Mortgage-backed securities, residential	—		355,121		—		355,121
Mortgage-backed securities, commercial	—		18,490		—		18,490
Collateralized mortgage obligations	—		214,160		—		214,160
State and municipal obligations	—		304,236		1,895		306,131
Municipal taxable	—		23,139		—		23,139
U.S. Treasury	—		2,753		—		2,753
Collateralized debt obligations	—		—		3,136		3,136
TOTAL	$	—	$	1,015,713	$	5,031	$	1,020,744
Derivative Assets			$	2,465
Derivative Liabilities			(2,465)

Roll forward of financial instruments having fair value measurements using significant unobservable inputs (Level 3)

The table below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the twelve months ended December 31, 2021 and 2020.


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3) December 31, 2021
	State and municipal obligations		Collateralized debt obligations		Other securities		Total
Beginning balance, January 1	$	1,895	$	3,136	$	—	$	5,031
Total realized/unrealized gains or losses
Included in earnings	—		—		—		—
Included in other comprehensive income	—		223		—		223
Purchases	—		—		1,743		1,743
Settlements	—		—		—		—
Ending balance, December 31	$	1,895	$	3,359	$	1,743	$	6,997


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3) December 31, 2020
	State and municipal obligations		Collateralized debt obligations		Total
Beginning balance, January 1	$	2,565	$	3,619	$	6,184
Total realized/unrealized gains or losses
Included in earnings	—		—		—
Included in other comprehensive income	—		(483)		(483)
Transfers	—		—		—
Settlements	(670)		—		(670)
Ending balance, December 31	$	1,895	$	3,136	$	5,031

Quantitative information about recurring and non-recurring Level 3

The following tables present quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2021 and 2020.


2021	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	1,895	Discounted cash flow	Discount rate	3.41%-4.44%
Collateralized debt obligations	$	3,359	Discounted cash flow	Discount rate	1.83	%
Other securities	$	1,743	Discounted cash flow	Discount rate	0.65%-1.40%
Collateral dependent loans	$	12,839	Discounted cash flows	Discount rate for age of appraisal and market conditions	0.00%-50.00%


2020	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	1,895	Discounted cash flow	Discount rate	3.41%-4.44%
Collateralized debt obligations	$	3,136	Discounted cash flow	Discount rate	1.93	%

Collateral dependent loans	$	6,581	Sales comparison/income approach	Discount rate for age of appraisal and market conditions	0.00%-50.00%

Schedule of carrying amount and estimated fair value of financial instruments

The carrying amount and estimated fair value of assets and liabilities are presented in the tables below and were determined based on the above assumptions:


	December 31, 2021
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	682,807	$	24,901	$	657,906	$	—	$	682,807

Securities available-for-sale	1,364,734		—		1,357,737		6,997		1,364,734
Restricted stock	16,200		n/a		n/a		n/a		n/a
Loans, net	2,767,590		—		—		2,682,257		2,682,257
Accrued interest receivable	16,946		—		4,709		12,237		16,946
Deposits	(4,409,569)		—		(4,418,117)		—		(4,418,117)
Short-term borrowings	(93,374)		—		(93,374)		—		(93,374)
Other borrowings	(15,937)		—		(16,483)		—		(16,483)
Accrued interest payable	(687)		—		(687)		—		(687)


	December 31, 2020
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	657,470	$	25,645	$	631,825	$	—	$	657,470

Securities available-for-sale	1,020,744		—		1,015,713		5,031		1,020,744
Restricted stock	14,812		n/a		n/a		n/a		n/a
Loans, net	2,563,242		—		—		2,560,683		2,560,683
Accrued interest receivable	16,957		—		3,521		13,436		16,957
Deposits	(3,755,945)		—		(3,763,358)		—		(3,763,358)
Short-term borrowings	(116,061)		—		(116,061)		—		(116,061)
Other borrowings	(5,859)		—		(6,297)		—		(6,297)
Accrued interest payable	(1,033)		—		(1,033)		—		(1,033)

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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