FAIR VALUE MEASUREMENT AND DISCLOSURE (Tables)

3 Months Ended

Mar. 31, 2023

Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value, for the dates indicated:


(In thousands)	Fair Value		Readily Available Market Prices (Level 1)		Observable Market Data (Level 2)		Company Determined Fair Value (Level 3)
March 31, 2023
Financial assets:
Trading securities	$	3,971	$	3,971	$	—	$	—
AFS debt securities:

Obligations of states and political subdivisions	49,051		—		49,051		—
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	507,831		—		507,831		—
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	106,233		—		106,233		—
Subordinated corporate bonds	23,308		—		23,308		—
Loans held for sale	4,562		—		4,562		—
Customer loan swaps	11,479		—		11,479		—
Interest rate contracts	10,996		—		10,996		—

Fixed rate mortgage interest rate lock commitments	71		—		71		—
Forward delivery commitments	32		—		32		—
Financial liabilities:
Deferred compensation	$	3,971	$	3,971	$	—	$	—

Customer loan swaps	11,554		—		11,554		—

Interest rate contracts	6,859		—		6,859		—
Fixed rate mortgage interest rate lock commitments	43		—		43		—
Forward delivery commitments	14		—		14		—
December 31, 2022
Financial assets:
Trading securities	$	3,990	$	3,990	$	—	$	—
AFS debt securities:

Obligations of states and political subdivisions	49,226		—		49,226		—
Mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises	514,019		—		514,019		—
Collateralized mortgage obligations issued or guaranteed by U.S. government-sponsored enterprises	109,347		—		109,347		—
Subordinated corporate bonds	23,283		—		23,283		—
Loans held for sale	5,197		—		5,197		—
Customer loan swaps	14,802		—		14,802		—
Interest rate contracts	13,051		—		13,051		—


Fixed rate mortgage interest rate lock commitments	31		—		31		—
Forward delivery commitments	114		—		114		—
Financial liabilities:
Deferred compensation	$	3,990	$	3,990	$	—	$	—
Customer loan swaps	14,850		—		14,850		—
Interest rate contracts	5,515		—		5,515		—


Fixed rate mortgage interest rate lock commitments	87		—		87		—

Valuation Methodology and Unobservable Inputs for Level Three Assets Measured at Fair Value on Non Recurring Basis

Carrying Amounts and Estimated Fair Value for Financial Instrument Assets and Liabilities

The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below as of the dates indicated:


	Carrying Amount		Fair Value		Readily Available Market Prices (Level 1)		Observable Market Prices (Level 2)		Company Determined Market Prices (Level 3)
March 31, 2023
Financial assets:
HTM debt securities	$	540,074	$	510,999	$	—	$	510,999	$	—
Commercial real estate loans(1)(2)	1,647,823		1,586,974		—		—		1,586,974
Commercial loans(2)	416,518		405,429		—		—		404,847
Residential real estate loans(2)	1,722,335		1,509,387		—		—		1,509,387
Home equity loans(2)	230,072		228,821		—		—		228,821
Consumer loans(2)	19,226		16,993		—		—		16,993
Servicing assets	2,413		4,187		—		—		4,187
Financial liabilities:
Time deposits	$	360,103	$	351,795	$	—	$	351,795	$	—
Short-term borrowings	486,318		485,505		—		485,505		—

Subordinated debentures	44,331		31,918		—		31,918		—
December 31, 2022
Financial assets:
HTM debt securities	$	546,583	$	506,193	$	—	$	506,193	$	—
Commercial real estate loans(1)(2)	1,605,279		1,550,379		—		—		1,550,379
Commercial loans(2)	424,685		414,353		—		—		414,353
Residential real estate loans(2)	1,691,177		1,494,707		—		—		1,494,707
Home equity loans(2)	232,203		237,967		—		—		237,967
Consumer loans(2)	20,087		17,853		—		—		17,853
Servicing assets	2,458		4,412		—		—		4,412
Financial liabilities:
Time deposits	$	300,451	$	291,568	$	—	$	291,568	$	—
Short-term borrowings	265,176		264,779		—		264,779		—

Subordinated debentures	44,331		31,032		—		31,032		—

(1) Commercial real estate loan includes non-owner-occupied and owner-occupied properties.

(2) The presented carrying amount is net of the allocated ACL on loans.