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Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 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 
June 30, 2021    
Mortgages held for sale reported at fair value$6,453 $5,453 $1,000 (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
June 30, 2021    
Assets:    
Investment securities available-for-sale:    
U.S. Treasury and Federal agencies securities$277,079 $492,799 $— $769,878 
U.S. States and political subdivisions securities— 89,214 1,921 91,135 
Mortgage-backed securities — Federal agencies— 522,895 — 522,895 
Corporate debt securities— 28,414 — 28,414 
Foreign government and other securities— 700 — 700 
Total debt securities available-for-sale277,079 1,134,022 1,921 1,413,022 
Mortgages held for sale— 6,453 — 6,453 
Accrued income and other assets (interest rate swap agreements)— 33,000 — 33,000 
Total$277,079 $1,173,475 $1,921 $1,452,475 
Liabilities:    
Accrued expenses and other liabilities (interest rate swap agreements)$— $33,709 $— $33,709 
Total$— $33,709 $— $33,709 
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 June 30, 2021 and 2020.
(Dollars in thousands)U.S. States and
political
subdivisions
securities
Beginning balance April 1, 2021$1,907 
Total gains or losses (realized/unrealized): 
Included in earnings— 
Included in other comprehensive income33 
Purchases— 
Issuances— 
Sales— 
Settlements— 
Maturities(19)
Transfers into Level 3— 
Transfers out of Level 3— 
Ending balance June 30, 2021$1,921 
Beginning balance April 1, 2020$5,295 
Total gains or losses (realized/unrealized): 
Included in earnings— 
Included in other comprehensive income(97)
Purchases— 
Issuances— 
Sales— 
Settlements— 
Maturities(2,019)
Transfers into Level 3— 
Transfers out of Level 3— 
Ending balance June 30, 2020$3,179 
Schedule of carrying value of assets measured at fair value on a non-recurring basis
The following table shows the carrying value of assets measured at fair value on a non-recurring basis.
(Dollars in thousands)Level 1Level 2Level 3Total
June 30, 2021    
Collateral-dependent impaired loans$— $— $7,988 $7,988 
Accrued income and other assets (mortgage servicing rights)— — 4,455 4,455 
Accrued income and other assets (repossessions)— — 1,213 1,213 
Accrued income and other assets (other real estate)— — — — 
Total$— $— $13,656 $13,656 
December 31, 2020    
Collateral-dependent impaired loans$— $— $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
June 30, 2021     
Assets:     
Cash and due from banks$69,101 $69,101 $69,101 $— $— 
Federal funds sold and interest bearing deposits with other banks400,346 400,346 400,346 — — 
Investment securities, available-for-sale1,413,022 1,413,022 277,079 1,134,022 1,921 
Other investments27,429 27,429 27,429 — — 
Mortgages held for sale6,453 6,453 — 6,453 — 
Loans and leases, net of allowance for loan and lease losses5,346,684 5,423,316 — — 5,423,316 
Mortgage servicing rights4,455 4,885 — — 4,885 
Accrued interest receivable19,138 19,138 — 19,138 — 
Interest rate swaps33,000 33,000 — 33,000 — 
Liabilities:     
Deposits$6,345,410 $6,350,792 $5,352,785 $998,007 $— 
Short-term borrowings172,344 172,344 166,289 6,055 — 
Long-term debt and mandatorily redeemable securities81,330 81,907 — 81,907 — 
Subordinated notes58,764 58,534 — 58,534 — 
Accrued interest payable2,771 2,771 — 2,771 — 
Interest rate swaps33,709 33,709 — 33,709 — 
Off-balance-sheet instruments *— 360 — 360 — 
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
June 30, 2021    
Debt securities available-for sale    
Direct placement municipal securities
$1,921 Discounted cash flowsCredit spread assumption
0.05% - 2.71%
1.96 %
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
June 30, 2021     
Collateral-dependent impaired loans$7,988 $7,988 Collateral based measurements including appraisals, trade publications, and auction valuesDiscount for lack of marketability and current conditions
10% - 90%
30.8 %
Mortgage servicing rights4,455 4,885 Discounted cash flowsConstant prepayment rate (CPR)
12.4% - 21.8%
18.8 %
    Discount rate
8.5% - 11.3%
8.7 %
Repossessions1,213 1,294 Appraisals, trade publications and auction valuesDiscount for lack of marketability
0% - 14%
6 %
Other real estate— — AppraisalsDiscount for lack of marketability
0% - 0%
0 %
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 %