XML 82 R63.htm IDEA: XBRL DOCUMENT v3.22.0.1
Fair Value (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Schedule of financial assets and liabilities measured on a recurring basis
The following table presents assets and liabilities measured at fair value on a recurring basis:
 
Fair Value Measurements at December 31, 2021 using:
(In thousands)Level 1Level 2Level 3Balance at December 31, 2021
Assets    
Investment securities:    
Obligations of states and political subdivisions$— $389,591 $— $389,591 
U.S. Government sponsored entities’ asset-backed securities— 854,463 — 854,463 
Collateralized loan obligations— 498,674 — 498,674 
Corporate debt securities— 11,412 — 11,412 
Equity securities1,630 — 499 2,129 
Mortgage loans held for sale— 9,387 — 9,387 
Mortgage IRLCs— 333 — 333 
Loan interest rate swaps— 1,952 — 1,952 
Liabilities    
Fair value swap$— $— $226 $226 
Borrowing interest rate swap— 262 — 262 
Loan interest rate swaps— 1,952 — 1,952 
 
Fair Value Measurements at December 31, 2020 using:
(In thousands)Level 1Level 2Level 3Balance at December 31, 2020
Assets    
Investment securities:    
Obligations of states and political subdivisions$— $305,218 $— $305,218 
U.S. Government sponsored entities’ asset-backed securities— 752,109 — 752,109 
Corporate debt securities— 2,014 — 2,014 
Equity securities2,026 — 485 2,511 
Mortgage loans held for sale— 31,666 — 31,666 
Mortgage IRLCs— 1,545 — 1,545 
Loan interest rate swaps— 3,934 — 3,934 
Liabilities    
Fair value swap$— $— $226 $226 
Borrowing interest rate swap— 885 — 885 
Loan interest rate swaps— 3,934 — 3,934 

The following methods and assumptions were used by the Company in determining the fair value of the financial assets and liabilities discussed above:

Interest rate swaps:  The fair values of interest rate swaps are based on valuation models using observable market data as of the measurement date (Level 2).
Investment securities: Fair values for investment securities are based on quoted market prices, where available (Level 1). If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows (Level 3).

Fair value swap: The fair value of the swap agreement entered into with the purchaser of the Visa Class B shares represents an internally developed estimate of the exposure based upon probability-weighted potential Visa litigation losses and are classified as Level 3..

Mortgage Interest Rate Lock Commitments: Mortgage IRLCs are based on current secondary market pricing and are classified as Level 2.
 
Mortgage loans held for sale: Mortgage loans held for sale are carried at their fair value. Mortgage loans held for sale are estimated using market prices for similar product types and, therefore, are classified in Level 2.
Schedule of reconciliation of level 3 input for financial instruments measured on recurring basis
The table below is a reconciliation of the beginning and ending balances of the Level 3 inputs for the years ended December 31, 2021 and 2020, for financial instruments measured on a recurring basis and classified as Level 3:
 
Level 3 Fair Value Measurements
(In thousands)Equity SecuritiesFair Value Swap
Balance at January 1, 2021$485 $(226)
Total Gains
Included in other income14 — 
Balance at December 31, 2021$499 $(226)
Balance at January 1, 2020$456 $(226)
Total Gains
Included in other income29 — 
Balance at December 31, 2020$485 $(226)
Schedule of assets and liabilities measured at fair value on a nonrecurring basis
Fair Value Measurements at December 31, 2021 Using:
(In thousands)Level 1Level 2Level 3Balance at December 31, 2021
Individually evaluated collateral dependent loans recorded at fair value:
Commercial real estate$— $— $831 $831 
Residential real estate— — 272 272 
Total individually evaluated collateral dependent loans recorded at fair value$— $— $1,103 $1,103 
MSRs$— $13,482 $— $13,482 
OREO recorded at fair value:
Residential real estate— — 775 775 
Total OREO recorded at fair value$— $— $775 $775 
Other repossessed assets$— $— $2,750 $2,750 
Fair Value Measurements at December 31, 2020 Using:
(In thousands)Level 1Level 2Level 3Balance at December 31, 2020
Impaired loans recorded at fair value:
   Commercial real estate$— $— $6,749 $6,749 
   Residential real estate— — 175 175 
Total impaired loans recorded at fair value$— $— $6,924 $6,924 
MSRs$— $12,179 $— $12,179 
OREO recorded at fair value:
  Residential real estate— — 735 735 
Total OREO recorded at fair value$— $— $735 $735 
Other repossessed assets$— $— $3,164 $3,164 
Impaired Financing Receivables [Table Text Block]
The table below provides additional detail on those individually evaluated loans which are recorded at fair value as well as the remaining individually evaluated loan portfolio not included above. The remaining individually evaluated loans consist of 1) loans which are not collateral dependent, 2) loans which are not secured by real estate, and 3) loans carried at cost as the fair value of the underlying collateral or the present value of expected future cash flows on each of the loans exceeded the book value for each respective credit.

December 31, 2021
(In thousands)Loan
Balance		Prior Charge-OffsSpecific Valuation AllowanceCarrying Balance
Total individually evaluated collateral dependent loans recorded at fair value$1,291 $240 $188 $1,103 
Remaining individually evaluated loans 73,211 384 1,428 71,783 
Total individually evaluated loans$74,502 $624 $1,616 $72,886 

December 31, 2020
(In thousands)Recorded InvestmentPrior Charge-OffsSpecific Valuation AllowanceCarrying Balance
Impaired loans recorded at fair value$8,256 $269 $1,332 $6,924 
Remaining impaired loans100,199 386 4,102 96,097 
Total impaired loans$108,455 $655 $5,434 $103,021 
Schedule of qualitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2021 and December 31, 2020:

December 31, 2021
(In thousands)Fair ValueValuation TechniqueUnobservable Input(s)Range (Weighted Average)
Individually evaluated collateral dependent loans:    
Commercial real estate$831 Sales comparison approachAdj to comparables
0.0% - 232.0% (28.3%)
Residential real estate$272 Sales comparison approachAdj to comparables
0.5% - 78.6% (11.6%)
Cost approachAccumulated depreciation
8.3% (8.3%)
Other real estate owned:
Residential real estate$775 Sales comparison approachAdj to comparables
5.0% - 32.5% (19.1%)

December 31, 2020
(In thousands)Fair ValueValuation TechniqueUnobservable Input(s)Range (Weighted Average)
Impaired loans:     
Commercial real estate$6,749 Sales comparison approachAdj to comparables
0.0% - 139.0% (11.8%)
Income approachCapitalization rate
9.3% - 20.0% (10.3%)
Cost approachEntrepreneurial profit
10.0% (10.0%)
Cost approachAccumulated depreciation
2.6% (2.6%)
Residential real estate$175 Sales comparison approachAdj to comparables
2.0% - 47.8% (11.9%)
Other real estate owned:
Residential real estate$735 Sales comparison approachAdj to comparables
7.8% - 9.9% (8.9%)
Fair value, by balance sheet grouping
The fair value of financial instruments at December 31, 2021 and December 31, 2020, was as follows:

December 31, 2021
  Fair Value Measurements
(In thousands)Carrying valueLevel 1Level 2Level 3Total fair value
Financial assets:
Cash and money market instruments$219,180 $219,180 $— $— $219,180 
Investment securities (1)
1,754,140 — 1,754,140 — 1,754,140 
Other investment securities (2)
2,129 1,630 — 499 2,129 
Mortgage loans held for sale9,387 — 9,387 — 9,387 
Mortgage IRLCs333 — 333 — 333 
Individually evaluated loans carried at fair value1,103 — — 1,103 1,103 
Other loans, net6,777,102 — — 6,783,848 6,783,848 
Loans receivable, net$6,787,925 $— $9,720 $6,784,951 $6,794,671 
Financial liabilities:     
Time deposits$711,660 $— $714,307 $— $714,307 
Other1,465 1,465 — — 1,465 
Deposits (excluding demand deposits)$713,125 $1,465 $714,307 $— $715,772 
Short-term borrowings$238,786 $— $238,786 $— $238,786 
Subordinated notes188,210 — 207,912 — 207,912 
Derivative financial instruments - assets:
Loan interest rate swaps1,952 — 1,952 — 1,952 
Derivative financial instruments - liabilities:    
Fair value swap$226 $— $— $226 $226 
Borrowing interest rate swap262 — 262 — 262 
Loan interest rate swaps1,952 — 1,952 — 1,952 
(1) Includes debt securities AFS.
(2) Excludes FHLB stock and FRB stock which are carried at their respective redemption values, investment securities accounted for at modified cost as these investments do not have a readily determinable fair value, and Partnership Investments valued using the NAV practical expedient.
December 31, 2020
  Fair Value Measurements
(In thousands)Carrying valueLevel 1Level 2Level 3Total fair value
Financial assets:
Cash and money market instruments$370,474 $370,474 $— $— $370,474 
Investment securities (1)
1,059,341 — 1,059,341 — 1,059,341 
Other investment securities (2)
2,511 2,026 — 485 2,511 
Loans held for sale31,666 — 31,666 — 31,666 
Mortgage IRLCs1,545 — 1,545 — 1,545 
Impaired loans carried at fair value6,924 — — 6,924 6,924 
Other loans, net7,051,975 — — 7,072,339 7,072,339 
Loans receivable, net$7,092,110 $— $33,211 $7,079,263 $7,112,474 
Financial liabilities:     
Time deposits$864,573 $— $870,804 $— $870,804 
Other1,379 1,379 — — 1,379 
Deposits (excluding demand deposits)$865,952 $1,379 $870,804 $— $872,183 
Short-term borrowings$342,230 $— $342,230 $— $342,230 
Long-term debt32,500 — 31,376 — 31,376 
Subordinated notes187,774 — 179,147 — 179,147 
Derivative financial instruments - assets:     
Loan interest rate swaps3,934 — 3,934 — 3,934 
Derivative financial instruments - liabilities:
Fair value swap$226 $— $— $226 $226 
Borrowing interest rate swap885 — 885 — 885 
Loan interest rate swaps3,934 — 3,934 — 3,934 
(1) Includes debt securities AFS.
(2) Excludes FHLB stock and FRB stock which are carried at their respective redemption values, investment securities accounted for at modified cost as these investments do not have a readily determinable fair value, and Partnership Investments valued using the NAV practical expedient.