Fair Value (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value

Schedule of assets and liabilities measured at fair value

	September 30, 2022
	Fair Value Measurements Using
	Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
U.S. Government agencies	$	—	$	106,281	$	—	$	106,281
Mortgage Backed Securities-residential		—		618,969		—		618,969
Mortgage Backed Securities-commercial		—		11,309		—		11,309
Collateralized mortgage obligations		—		206,360		—		206,360
State and municipal		—		347,270		1,545		348,815
Municipal taxable		—		32,606		—		32,606
U.S. Treasury		—		2,056		—		2,056
Collateralized debt obligations		—		—		3,111		3,111
Other securities		—		—		2,478		2,478
TOTAL	$	—	$	1,324,851	$	7,134	$	1,331,985
Derivative Assets				3,555
Derivative Liabilities				(3,555)

	December 31, 2021
	Fair Value Measurements Using
	Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
U.S. Government agencies	$	—	$	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		—		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)

Schedule of fair value measurements using significant unobservable inputs

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Three Months Ended
	September 30, 2022
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Other securities		Total
Beginning balance, July 1	$	1,545	$	3,087	$	1,494	$	6,126
Total realized/unrealized gains or losses
Included in earnings		—		—		—		—
Included in other comprehensive income		—		24		—		24
Transfers		—		—		984		984
Settlements		—		—		—		—
Ending balance, September 30	$	1,545	$	3,111	$	2,478	$	7,134

	Nine Months Ended
	September 30, 2022
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Other securities		Total
Beginning balance, January 1	$	1,895	$	3,359	$	1,743	$	6,997
Total realized/unrealized gains or losses
Included in earnings		—		—		—		—
Included in other comprehensive income		—		(248)		—		(248)
Transfers		—		—		984		984
Settlements		(350)		—		(249)		(599)
Ending balance, September 30	$	1,545	$	3,111	$	2,478	$	7,134

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Year Ended
	December 31, 2021
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		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

Quantitative information about recurring and non-recurring Level 3

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	1,545	Discounted cash flow	Discount rate	3.73%-4.44	%
Collateralized debt obligations	$	3,111	Discounted cash flow	Discount rate	2.67	%
Other securities	$	2,478	Discounted cash flow	Discount rate	0.04%-3.35	%
Collateral dependent loans	$	5,172	Discounted cash flow	Discount rate for age of appraisal and market conditions	0.00%-50.00	%

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

(Dollar amounts in thousands)	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 flow	Discount rate for age of appraisal and market conditions	0.00%-50.00	%

Schedule of carrying amount and estimated fair value of financial instruments

	September 30, 2022
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	328,222	$	29,207	$	299,015	$	—	$	328,222
Federal funds sold		8,223		—		8,223		—		8,223
Securities available-for-sale		1,331,985		—		1,324,851		7,134		1,331,985
Restricted stock		15,372		n/a		n/a		n/a		n/a
Loans, net		2,930,980		—		—		2,591,866		2,591,866
Accrued interest receivable		19,128		—		6,785		12,343		19,128
Deposits		(4,407,506)		—		(4,389,442)		—		(4,389,442)
Short-term borrowings		(89,321)		—		(89,321)		—		(89,321)
Other borrowings		(9,593)		—		(8,827)		—		(8,827)
Accrued interest payable		(479)		—		(479)		—		(479)

	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
Federal funds sold		308		—		308		—		308
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)