Fair Value (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of financial assets and liabilities measured on a recurring basis

The following tables present assets and liabilities measured at fair value on a recurring basis:

 

Fair Value Measurements at December 31, 2023 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2023
Assets
Investment securities:
Obligations of states and political subdivisions	$	—	$	241,184	$	—	$	241,184
U.S. Government sponsored entities’ asset-backed securities	—		635,475		—		635,475
Collateralized loan obligations	—		438,286		—		438,286
Corporate debt securities	—		11,548		6,349		17,897
Equity securities	1,616		—		473		2,089
Mortgage loans held for sale	—		3,235		—		3,235
Mortgage IRLCs	—		87		—		87
Loan interest rate swaps	—		1,069		—		1,069
Liabilities
Fair value swap	$	—	$	—	$	123	$	123
Loan interest rate swaps	—		1,069		—		1,069

Fair Value Measurements at December 31, 2022 using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2022
Assets
Investment securities:
Obligations of U.S. Government sponsored entities	$	—	$	37,213	$	—	$	37,213
Obligations of states and political subdivisions	—		406,711		—		406,711
U.S. Government sponsored entities’ asset-backed securities	—		756,761		—		756,761
Collateralized loan obligations	—		516,539		—		516,539
Corporate debt securities	—		9,472		7,000		16,472
Equity securities	1,420		—		439		1,859
Mortgage loans held for sale	—		2,149		—		2,149
Mortgage IRLCs	—		46		—		46
Loan interest rate swaps	—		1,508		—		1,508
Liabilities
Fair value swap	$	—	$	—	$	243	$	243
Loan interest rate swaps	—		1,508		—		1,508

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 is 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

for the years ended December 31, 2023 and 2022, for financial instruments measured on a recurring basis and classified as Level 3:

 

Level 3 Fair Value Measurements
(In thousands)	Corporate debt securities		Equity securities		Fair value swap
Balance at January 1, 2023	$	7,000	$	439	$	(243)
Transfers into (out of) level 3, net	11		—		—
Total gains / (losses)
Included in other income / other (expense)	—		34		(175)
Included in other comprehensive income	(662)		—		—
Purchases, sales, issuances and settlements, other, net	—		—		295
Balance at December 31, 2023	$	6,349	$	473	$	(123)
Balance at January 1, 2022	$	—	$	499	$	(226)
Total losses
Included in other income / other (expense)	—		(60)		(221)
Transfers into level 3	7,000		—		—
Purchases, sales, issuances and settlements, other, net	—		—		204
Balance at December 31, 2022	$	7,000	$	439	$	(243)

Schedule of assets and liabilities measured at fair value on a nonrecurring basis

Fair Value Measurements at December 31, 2023 Using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2023
Individually evaluated collateral dependent loans recorded at fair value:
Commercial real estate	$	—	$	—	$	2,315	$	2,315
Residential real estate	—		—		182		182
Total individually evaluated collateral dependent loans recorded at fair value	$	—	$	—	$	2,497	$	2,497
MSRs	$	—	$	866	$	—	$	866
OREO recorded at fair value:
Commercial real estate	$	—	$	—	$	938	$	938
Total OREO recorded at fair value	$	—	$	—	$	938	$	938

Fair Value Measurements at December 31, 2022 Using:
(In thousands)	Level 1		Level 2		Level 3		Balance at December 31, 2022
Individually evaluated collateral dependent loans recorded at fair value:
Commercial real estate	$	—	$	—	$	5,573	$	5,573
Residential real estate	—		—		200		200
Total individually evaluated collateral dependent loans recorded at fair value	$	—	$	—	$	5,773	$	5,773
MSRs	$	—	$	1,717	$	—	$	1,717
OREO recorded at fair value	$	—	$	—	$	—	$	—

Impaired Financing Receivables [Table Text Block]

	December 31, 2023
(In thousands)	Loan Balance		Prior Charge-Offs		Specific Valuation Allowance		Carrying Balance
Total individually evaluated collateral dependent loans recorded at fair value	$	2,499	$	2,048	$	2	$	2,497
Remaining individually evaluated loans	42,716		301		4,981		37,735
Total individually evaluated loans	$	45,215	$	2,349	$	4,983	$	40,232

	December 31, 2022
(In thousands)	Recorded Investment		Prior Charge-Offs		Specific Valuation Allowance		Carrying Balance
Total individually evaluated collateral dependent loans recorded at fair value	$	5,903	$	1,523	$	130	$	5,773
Remaining individually evaluated loans	72,438		252		3,436		69,002
Total individually evaluated loans	$	78,341	$	1,775	$	3,566	$	74,775

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, 2023 and December 31, 2022:

December 31, 2023
(In thousands)	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
Individually evaluated collateral dependent loans:
Commercial real estate	$	2,315	Sales comparison approach	Adj to comparables	0.2% - 89.0% (21.2%)
			Income approach	Capitalization rate	7.5% - 9.5% (8.9%)
Residential real estate	$	182	Sales comparison approach	Adj to comparables	1.2% - 78.6% (7.6%)
Other real estate owned:
Commercial real estate	$	938	Sales comparison approach	Adj to comparables	5.0% - 10.0% (7.5%)
			Cost approach	Entrepreneurial profit	5.0% (5.0%)
			Cost approach	Accumulated depreciation	50.0% (50.0%)

December 31, 2022
(In thousands)	Fair Value		Valuation Technique	Unobservable Input(s)	Range (Weighted Average)
Individually evaluated collateral dependent loans:
Commercial real estate	$	5,573	Sales comparison approach	Adj to comparables	0.0% - 202.0% (19.4%)
			Income approach	Capitalization rate	7.0% - 10.0% (7.9%)
			Cost approach	Entrepreneurial profit	10.0% - 12.0% (11.4%)
			Cost approach	Accumulated depreciation	38.8% (38.8%)
Residential real estate	$	200	Sales comparison approach	Adj to comparables	1.9% - 119.8% (17.4%)

Fair value, by balance sheet grouping

December 31, 2023 and December 31, 2022 was as follows:

	December 31, 2023
			Fair Value Measurements
(In thousands)	Carrying value		Level 1		Level 2		Level 3		Total fair value
Financial assets:
Cash and money market instruments	$	218,268	$	218,268	$	—	$	—	$	218,268
Investment securities (1)	1,332,842		—		1,326,493		6,349		1,332,842
Other investment securities (2)	2,089		1,616		—		473		2,089
Mortgage loans held for sale	3,235		—		3,235		—		3,235
Mortgage IRLCs	87		—		87		—		87
Individually evaluated loans carried at fair value	2,497		—		—		2,497		2,497
Other loans, net	7,386,657		—		—		7,200,851		7,200,851
Loans receivable, net	$	7,392,476	$	—	$	3,322	$	7,203,348	$	7,206,670
Financial liabilities:
Time deposits	$	641,615	$	—	$	641,180	$	—	$	641,180
Brokered deposits and Bid Ohio CDs	164,985		—		165,059		—		165,059
Other	1,261		1,261		—		—		1,261
Deposits (excluding demand deposits)	$	807,861	$	1,261	$	806,239	$	—	$	807,500
Short-term borrowings	$	328,182	$	—	$	328,182	$	—	$	328,182
Subordinated notes	189,147		—		172,059		—		172,059
Derivative financial instruments - assets:
Loan interest rate swaps	$	1,069	$	—	$	1,069	$	—	$	1,069
Derivative financial instruments - liabilities:
Fair value swap	$	123	$	—	$	—	$	123	$	123
Loan interest rate swaps	1,069		—		1,069		—		1,069

(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, 2022
			Fair Value Measurements
(In thousands)	Carrying value		Level 1		Level 2		Level 3		Total fair value
Financial assets:
Cash and money market instruments	$	189,728	$	189,728	$	—	$	—	$	189,728
Investment securities (1)	1,733,696		—		1,726,696		7,000		1,733,696
Other investment securities (2)	1,859		1,420		—		439		1,859
Mortgage loans held for sale	2,149		—		2,149		—		2,149
Mortgage IRLCs	46		—		46		—		46
Individually evaluated loans carried at fair value	5,773		—		—		5,773		5,773
Other loans, net	7,048,544		—		—		6,918,326		6,918,326
Loans receivable, net	$	7,056,512	$	—	$	2,195	$	6,924,099	$	6,926,294
Financial liabilities:
Time deposits	$	554,445	$	—	$	552,443	$	—	$	552,443
Other	1,325		1,325		—		—		1,325
Deposits (excluding demand deposits)	$	555,770	$	1,325	$	552,443	$	—	$	553,768
Short-term borrowings	$	227,342	$	—	$	227,342	$	—	$	227,342
Subordinated notes	188,667		—		177,928		—		177,928
Derivative financial instruments - assets:
Loan interest rate swaps	$	1,508	$	—	$	1,508	$	—	$	1,508
Derivative financial instruments - liabilities:
Fair value swap	$	243	$	—	$	—	$	243	$	243
Loan interest rate swaps	1,508		—		1,508		—		1,508

(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.