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Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2022
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, 2022    
Mortgages held for sale reported at fair value$5,525 $5,174 $351 (1)
December 31, 2021    
Mortgages held for sale reported at fair value$13,284 $12,456 $828 (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, 2022    
Assets:    
Investment securities available-for-sale:    
U.S. Treasury and Federal agencies securities$583,615 $474,218 $— $1,057,833 
U.S. States and political subdivisions securities— 110,281 4,515 114,796 
Mortgage-backed securities — Federal agencies— 646,867 — 646,867 
Corporate debt securities— 16,309 — 16,309 
Foreign government and other securities— 584 — 584 
Total debt securities available-for-sale583,615 1,248,259 4,515 1,836,389 
Mortgages held for sale— 5,525 — 5,525 
Accrued income and other assets (interest rate swap agreements)— 13,432 — 13,432 
Total$583,615 $1,267,216 $4,515 $1,855,346 
Liabilities:    
Accrued expenses and other liabilities (interest rate swap agreements)$— $13,686 $— $13,686 
Total$— $13,686 $— $13,686 
December 31, 2021    
Assets:    
Investment securities available-for-sale:    
U.S. Treasury and Federal agencies securities$561,950 $522,056 $— $1,084,006 
U.S. States and political subdivisions securities— 93,852 1,849 95,701 
Mortgage-backed securities — Federal agencies— 659,727 — 659,727 
Corporate debt securities— 23,009 — 23,009 
Foreign government and other securities— 598 — 598 
Total debt securities available-for-sale561,950 1,299,242 1,849 1,863,041 
Mortgages held for sale— 13,284 — 13,284 
Accrued income and other assets (interest rate swap agreements)— 20,735 — 20,735 
Total$561,950 $1,333,261 $1,849 $1,897,060 
Liabilities:    
Accrued expenses and other liabilities (interest rate swap agreements)$— $21,172 $— $21,172 
Total$— $21,172 $— $21,172 
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, 2022 and 2021.
(Dollars in thousands)U.S. States and
political
subdivisions
securities
Beginning balance April 1, 2022$4,529 
Total gains or losses (realized/unrealized): 
Included in earnings— 
Included in other comprehensive income (loss)(14)
Purchases— 
Issuances— 
Sales— 
Settlements— 
Maturities— 
Transfers into Level 3— 
Transfers out of Level 3— 
Ending balance June 30, 2022$4,515 
Beginning April 1, 2021$1,907 
Total gains or losses (realized/unrealized): 
Included in earnings— 
Included in other comprehensive income (loss)33 
Purchases— 
Issuances— 
Sales— 
Settlements— 
Maturities(19)
Transfers into Level 3— 
Transfers out of Level 3— 
Ending balance June 30, 2021$1,921 
Schedule of carrying value of assets measured at fair value on a non-recurring basis
The following table shows the carrying value of assets measured at fair value on a non-recurring basis.
(Dollars in thousands)Level 1Level 2Level 3Total
June 30, 2022    
Collateral-dependent impaired loans$— $— $861 $861 
Accrued income and other assets (mortgage servicing rights)— — 4,443 4,443 
Accrued income and other assets (repossessions)— — 102 102 
Total$— $— $5,406 $5,406 
December 31, 2021    
Collateral-dependent impaired loans$— $— $571 $571 
Accrued income and other assets (mortgage servicing rights)— — 4,671 4,671 
Accrued income and other assets (repossessions)— — 861 861 
Total$— $— $6,103 $6,103 
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, 2022     
Assets:     
Cash and due from banks$116,915 $116,915 $116,915 $— $— 
Federal funds sold and interest bearing deposits with other banks164,848 164,848 164,848 — — 
Investment securities, available-for-sale1,836,389 1,836,389 583,615 1,248,259 4,515 
Other investments25,538 25,538 25,538 — — 
Mortgages held for sale5,525 5,525 — 5,525 — 
Loans and leases, net of allowance for loan and lease losses5,418,351 5,369,789 — — 5,369,789 
Mortgage servicing rights4,443 6,784 — — 6,784 
Accrued interest receivable18,137 18,137 — 18,137 — 
Interest rate swaps13,432 13,432 — 13,432 — 
Liabilities:     
Deposits$6,744,896 $6,731,541 $5,959,947 $771,594 $— 
Short-term borrowings167,839 167,839 160,852 6,987 — 
Long-term debt and mandatorily redeemable securities48,459 47,369 — 47,369 — 
Subordinated notes58,764 50,120 — 50,120 — 
Accrued interest payable2,294 2,294 — 2,294 — 
Interest rate swaps13,686 13,686 — 13,686 — 
Off-balance-sheet instruments *— 103 — 103 — 
December 31, 2021     
Assets:     
Cash and due from banks$54,420 $54,420 $54,420 $— $— 
Federal funds sold and interest bearing deposits with other banks470,767 470,767 470,767 — — 
Investment securities, available-for-sale1,863,041 1,863,041 561,950 1,299,242 1,849 
Other investments27,189 27,189 27,189 — — 
Mortgages held for sale13,284 13,284 — 13,284 — 
Loans and leases, net of allowance for loan and lease losses5,218,722 5,269,551 — — 5,269,551 
Mortgage servicing rights4,671 5,640 — — 5,640 
Accrued interest receivable17,760 17,760 — 17,760 — 
Interest rate swaps20,735 20,735 — 20,735 — 
Liabilities:     
Deposits$6,679,065 $6,680,163 $5,794,928 $885,235 $— 
Short-term borrowings200,027 200,027 192,801 7,226 — 
Long-term debt and mandatorily redeemable securities71,251 71,305 — 71,305 — 
Subordinated notes58,764 58,553 — 58,553 — 
Accrued interest payable1,885 1,885 — 1,885 — 
Interest rate swaps21,172 21,172 — 21,172 — 
Off-balance-sheet instruments *— 364 — 364 — 
* 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, 2022    
Debt securities available-for sale    
Direct placement municipal securities
$4,515 Discounted cash flowsCredit spread assumption
0.09% - 4.36%
2.88 %
December 31, 2021    
Debt securities available-for sale
    
Direct placement municipal securities
$1,849 Discounted cash flowsCredit spread assumption
0.04% - 2.31%
1.58 %
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, 2022     
Collateral-dependent impaired loans$861 $861 Collateral based measurements including appraisals, trade publications, and auction valuesDiscount for lack of marketability and current conditions
20% - 90%
36.2 %
Mortgage servicing rights4,443 6,784 Discounted cash flowsConstant prepayment rate (CPR)
8.5% - 13.8%
12.4 %
    Discount rate
10.9% - 13.7%
11.0 %
Repossessions102 106 Appraisals, trade publications and auction valuesDiscount for lack of marketability
0% - 13%
4 %
December 31, 2021     
Collateral-dependent impaired loans$571 $571 Collateral based measurements including appraisals, trade publications, and auction valuesDiscount for lack of marketability and current conditions
20% - 90%
43.1 %
Mortgage servicing rights4,671 5,640 Discounted cash flowsConstant prepayment rate (CPR)
11.8% - 18.5%
16.4 %
    Discount rate
8.6% - 11.5%
8.8 %
Repossessions861 942 Appraisals, trade publications and auction valuesDiscount for lack of marketability
0% - 21%
2 %