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Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2021
Fair value measurements  
Schedule of differences between the fair value carrying amount of mortgages held for sale measured at fair value and the aggregate unpaid principal amount
The following table shows the differences between the fair value carrying amount of mortgages held for sale measured at fair value and the aggregate unpaid principal amount the Company is contractually entitled to receive at maturity.
(Dollars in thousands)Fair value carrying
amount		Aggregate
unpaid principal		Excess of fair value carrying amount over (under) unpaid principal 
March 31, 2021    
Mortgages held for sale reported at fair value$9,351 $7,733 $1,618 (1)
December 31, 2020    
Mortgages held for sale reported at fair value$12,885 $11,045 $1,840 (1)

(1)The excess of fair value carrying amount over (under) unpaid principal is included in mortgage banking income and includes changes in fair value at and subsequent to funding and gains and losses on the related loan commitment prior to funding.
Schedule of assets and liabilities measured at fair value on a recurring basis
The following table shows the balance of assets and liabilities measured at fair value on a recurring basis.
(Dollars in thousands)Level 1Level 2Level 3Total
March 31, 2021    
Assets:    
Investment securities available-for-sale:    
U.S. Treasury and Federal agencies securities$118,956 $559,449 $— $678,405 
U.S. States and political subdivisions securities— 83,762 1,907 85,669 
Mortgage-backed securities — Federal agencies— 489,490 — 489,490 
Corporate debt securities— 37,076 — 37,076 
Foreign government and other securities— 700 — 700 
Total debt securities available-for-sale118,956 1,170,477 1,907 1,291,340 
Mortgages held for sale— 9,351 — 9,351 
Accrued income and other assets (interest rate swap agreements)— 31,311 — 31,311 
Total$118,956 $1,211,139 $1,907 $1,332,002 
Liabilities:    
Accrued expenses and other liabilities (interest rate swap agreements)$— $32,005 $— $32,005 
Total$— $32,005 $— $32,005 
December 31, 2020    
Assets:    
Investment securities available-for-sale:    
U.S. Treasury and Federal agencies securities$80,285 $539,197 $— $619,482 
U.S. States and political subdivisions securities— 78,975 2,152 81,127 
Mortgage-backed securities — Federal agencies— 453,789 — 453,789 
Corporate debt securities— 42,369 — 42,369 
Foreign government and other securities— 700 — 700 
Total debt securities available-for-sale80,285 1,115,030 2,152 1,197,467 
Mortgages held for sale— 12,885 — 12,885 
Accrued income and other assets (interest rate swap agreements)— 46,654 — 46,654 
Total$80,285 $1,174,569 $2,152 $1,257,006 
Liabilities:    
Accrued expenses and other liabilities (interest rate swap agreements)$— $47,681 $— $47,681 
Total$— $47,681 $— $47,681 
Schedule of changes in investment securities available-for-sale Level 3 assets measured at fair value on a recurring basis
The following table shows changes in Level 3 assets measured at fair value on a recurring basis for the quarter ended March 31, 2021 and 2020.
(Dollars in thousands)U.S. States and
political
subdivisions
securities
Beginning balance January 1, 2021$2,152 
Total gains or losses (realized/unrealized): 
Included in earnings— 
Included in other comprehensive income(80)
Purchases— 
Issuances— 
Sales— 
Settlements— 
Maturities(165)
Transfers into Level 3— 
Transfers out of Level 3— 
Ending balance March 31, 2021$1,907 
Beginning balance January 1, 2020$2,292 
Total gains or losses (realized/unrealized): 
Included in earnings— 
Included in other comprehensive income(17)
Purchases3,100 
Issuances— 
Sales— 
Settlements— 
Maturities(80)
Transfers into Level 3— 
Transfers out of Level 3— 
Ending balance March 31, 2020$5,295 
Schedule of carrying value of assets measured at fair value on a non-recurring basis
The following table shows the carrying value of assets measured at fair value on a non-recurring basis.
(Dollars in thousands)Level 1Level 2Level 3Total
March 31, 2021    
Collateral-dependent impaired loans$— $— $9,171 $9,171 
Accrued income and other assets (mortgage servicing rights)— — 4,017 4,017 
Accrued income and other assets (repossessions)— — 2,214 2,214 
Accrued income and other assets (other real estate)— — 369 369 
Total$— $— $15,771 $15,771 
December 31, 2020    
Collateral-dependent impaired loans$— $— $11,991 $11,991 
Accrued income and other assets (mortgage servicing rights)— — 3,804 3,804 
Accrued income and other assets (repossessions)— — 1,976 1,976 
Accrued income and other assets (other real estate)— — 359 359 
Total$— $— $18,130 $18,130 
Schedule of fair values of financial instruments
The following table shows the fair values of the Company’s financial instruments.
(Dollars in thousands)Carrying or Contract ValueFair ValueLevel 1Level 2Level 3
March 31, 2021     
Assets:     
Cash and due from banks$69,683 $69,683 $69,683 $— $— 
Federal funds sold and interest bearing deposits with other banks266,271 266,271 266,271 — — 
Investment securities, available-for-sale1,291,340 1,291,340 118,956 1,170,477 1,907 
Other investments27,429 27,429 27,429 — — 
Mortgages held for sale9,351 9,351 — 9,351 — 
Loans and leases, net of allowance for loan and lease losses5,383,535 5,467,450 — — 5,467,450 
Mortgage servicing rights4,017 4,365 — — 4,365 
Accrued interest receivable20,384 20,384 — 20,384 — 
Interest rate swaps31,311 31,311 — 31,311 — 
Liabilities:     
Deposits$6,131,341 $6,138,346 $5,050,321 $1,088,025 $— 
Short-term borrowings180,601 180,601 174,684 5,917 — 
Long-term debt and mandatorily redeemable securities81,722 80,906 — 80,906 — 
Subordinated notes58,764 58,502 — 58,502 — 
Accrued interest payable4,260 4,260 — 4,260 — 
Interest rate swaps32,005 32,005 — 32,005 — 
Off-balance-sheet instruments *— 366 — 366 — 
December 31, 2020     
Assets:     
Cash and due from banks$74,186 $74,186 $74,186 $— $— 
Federal funds sold and interest bearing deposits with other banks168,861 168,861 168,861 — — 
Investment securities, available-for-sale1,197,467 1,197,467 80,285 1,115,030 2,152 
Other investments27,429 27,429 27,429 — — 
Mortgages held for sale12,885 12,885 — 12,885 — 
Loans and leases, net of allowance for loan and lease losses5,348,647 5,417,396 — — 5,417,396 
Mortgage servicing rights3,804 4,038 — — 4,038 
Accrued interest receivable20,242 20,242 — 20,242 — 
Interest rate swaps46,654 46,654 — 46,654 — 
Liabilities:     
Deposits$5,946,028 $5,955,545 $4,778,671 $1,176,874 $— 
Short-term borrowings150,641 150,641 143,730 6,911 — 
Long-term debt and mandatorily redeemable securities81,864 82,965 — 82,965 — 
Subordinated notes58,764 58,560 — 58,560 — 
Accrued interest payable3,996 3,996 — 3,996 — 
Interest rate swaps47,681 47,681 — 47,681 — 
Off-balance-sheet instruments *— 321 — 321 — 

* Represents estimated cash outflows required to currently settle the obligations at current market rates.
Recurring  
Fair value measurements  
Schedule of valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis
The following table shows the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a recurring basis.
(Dollars in thousands)Fair ValueValuation MethodologyUnobservable InputsRange of InputsWeighted Average
March 31, 2021    
Debt securities available-for sale    
Direct placement municipal securities
$1,907 Discounted cash flowsCredit spread assumption
1.78% - 3.15%
2.34 %
December 31, 2020    
Debt securities available-for sale
    
Direct placement municipal securities
$2,152 Discounted cash flowsCredit spread assumption
0.04% - 2.30%
1.55 %
Non-recurring  
Fair value measurements  
Schedule of valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring and non-recurring basis
The following table below shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a non-recurring basis.
(Dollars in thousands)Carrying ValueFair ValueValuation MethodologyUnobservable InputsRange of InputsWeighted Average
March 31, 2021     
Collateral-dependent impaired loans$9,171 $9,171 Collateral based measurements including appraisals, trade publications, and auction valuesDiscount for lack of marketability and current conditions
10% - 90%
30.0 %
Mortgage servicing rights4,017 4,365 Discounted cash flowsConstant prepayment rate (CPR)
14.6% - 25.3%
21.7 %
    Discount rate
8.8% - 11.6%
8.9 %
Repossessions2,214 2,368 Appraisals, trade publications and auction valuesDiscount for lack of marketability
0% - 16%
7 %
Other real estate369 374 AppraisalsDiscount for lack of marketability
0% - 13%
1 %
December 31, 2020     
Collateral-dependent impaired loans$11,991 $11,991 Collateral based measurements including appraisals, trade publications, and auction valuesDiscount for lack of marketability and current conditions
0% - 100%
43.7 %
Mortgage servicing rights3,804 4,038 Discounted cash flowsConstant prepayment rate (CPR)
16.2% - 30.5%
22.8 %
    Discount rate
8.3% - 11.1%
8.5 %
Repossessions1,976 2,144 Appraisals, trade publications and auction valuesDiscount for lack of marketability
0% - 16%
8 %
Other real estate359 388 AppraisalsDiscount for lack of marketability
6% - 13%
7 %