Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

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

The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2023, and December 31, 2022, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):


	As of March 31, 2023
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Debt securities available for sale:
U.S. Treasury securities	$	—	$	84,632	$	—	$	84,632
Obligations of U.S. government corporations and agencies	—		11,627		—		11,627
Obligations of states and political subdivisions	—		254,261		—		254,261
Asset-backed securities	—		469,147		—		469,147
Commercial mortgage-backed securities	—		108,827		—		108,827
Residential mortgage-backed securities	—		1,225,934		—		1,225,934
Corporate debt securities	—		229,122		—		229,122
Equity securities	—		10,915		—		10,915
Derivative assets	—		34,600		24		34,624
Derivative liabilities	—		58,547		—		58,547


	As of December 31, 2022
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Debt securities available for sale:
U.S. Treasury securities	$	—	$	114,061	$	—	$	114,061
Obligations of U.S. government corporations and agencies	—		19,779		—		19,779
Obligations of states and political subdivisions	—		257,512		—		257,512
Asset-backed securities	—		469,875		—		469,875
Commercial mortgage-backed securities	—		108,394		—		108,394
Residential mortgage-backed securities	—		1,243,256		—		1,243,256
Corporate debt securities	—		248,516		—		248,516
Equity securities	—		11,535		—		11,535
Derivative assets	—		42,607		5		42,612
Derivative liabilities	—		72,462		—		72,462

Schedule of assets and liabilities measured at fair value on a non-recurring basis

The following tables summarize assets and liabilities measured at fair value on a non-recurring basis for the periods presented, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):


	As of March 31, 2023
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Loans evaluated individually, net of related allowance	$	—	$	—	$	5,806	$	5,806
OREO and other repossessed assets with subsequent impairment	—		—		639		639
Bank property held for sale with impairment	—		—		7,923		7,923


	As of December 31, 2022
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Loans evaluated individually, net of related allowance	$	—	$	—	$	5,345	$	5,345

Bank property held for sale with impairment	—		—		7,923		7,923

Schedule of quantitative information about Level 3 fair value measurements

The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands):

As of March 31, 2023

Fair Value

Valuation
Techniques

Unobservable
Input

Range
(Weighted Average)

Loans evaluated individually, net of related allowance

5,806

Appraisal of collateral

Appraisal adjustments

-20.8% to -100.0%

(-35.5)%

OREO and other repossessed assets with subsequent impairment

639

Appraisal of collateral

Appraisal adjustments

-13.6%

(-13.6)%

Bank property held for sale with impairment

7,923

Appraisal of collateral or real estate listing price

Appraisal adjustments

-0.7% to -70.1%

(-35.1)%

As of December 31, 2022

Fair Value

Valuation

Techniques

Unobservable

Input

Range

(Weighted Average)

Loans evaluated individually, net of related allowance

5,345

Appraisal of collateral

Appraisal adjustments

-22.7% to -100.0%

(-45.7)%

Bank property held for sale with impairment

7,923

Appraisal of collateral or real estate listing price

Appraisal adjustments

-0.7% to -70.1%

(-35.1)%

Schedule of estimated fair values of financial instruments

Estimated fair values of financial instruments that are not carried at fair value in the Company’s unaudited Consolidated Balance Sheets, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value, were as follows (dollars in thousands):


	As of March 31, 2023				As of December 31, 2022
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Level 1 inputs:
Cash and cash equivalents	$	275,569	$	275,569	$	227,164	$	227,164
Level 2 inputs:
Debt securities held to maturity	907,559		780,653		918,312		785,295
Loans held for sale	2,714		2,756		1,253		1,276
Accrued interest receivable	42,854		42,854		43,372		43,372
Level 3 inputs:
Portfolio loans, net	7,692,081		7,431,580		7,634,094		7,320,422
Mortgage servicing rights	5,158		17,748		5,861		18,284
Other servicing rights	1,813		2,242		1,914		2,331

Financial liabilities
Level 2 inputs:
Time deposits	$	1,148,671	$	1,122,686	$	855,375	$	830,596
Securities sold under agreements to repurchase	210,977		210,977		229,806		229,806
Short-term borrowings	615,881		615,899		351,054		351,085
Long-term debt	27,000		27,025		30,000		30,052
Junior subordinated debt owed to unconsolidated trusts	71,855		56,640		71,810		59,111
Accrued interest payable	9,265		9,265		3,978		3,978
Level 3 inputs:

Subordinated notes, net of unamortized issuance costs	222,245		199,375		222,038		208,562