Disclosures about fair value of assets and liabilities (Tables)

12 Months Ended

Dec. 31, 2021

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Fair Value Measurements of Assets and Liabilities Recognized on a Recurring Basis

The following table presents the fair value measurements of assets and liabilities recognized in the accompanying financial statements measured at fair value on a recurring basis and the level within the FASB ASC fair value hierarchy in which the fair value measurements fall at the following:

	December 31, 2021
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available for sale securities
U.S. Treasury and federal agencies	$	116,979	$	—	$	116,979	$	—
State and municipal	639,746		—		519,282		120,464
Federal agency collateralized mortgage obligations	61,577		—		61,577		—
Federal agency mortgage–backed pools	226,074		—		226,074		—
Private labeled mortgage–backed pools	31,617		—		31,617		—
Corporate notes	84,819		—		79,787		5,032
Total available for sale securities	1,160,812		—		1,035,316		125,496
Interest rate swap agreements asset	14,419		—		14,419		—
Forward sale commitments	1,037		—		1,037		—
Interest rate swap agreements liability	(18,092)		—		(18,092)		—
Commitments to originate loans	(238)		—		(238)		—

	December 31, 2020
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Available for sale securities
U.S. Treasury and federal agencies	$	19,715	$	—	$	19,715	$	—
State and municipal	837,843		—		837,843		—
Federal agency collateralized mortgage obligations	147,453		—		147,453		—
Federal agency mortgage–backed pools	118,799		—		118,799		—
Corporate notes	10,215		—		10,215		—
Total available for sale securities	1,134,025		—		1,134,025		—
Interest rate swap agreements asset	35,388		—		35,388		—
Forward sale commitments	1,045		—		1,045		—
Interest rate swap agreements liability	(43,631)		—		(43,631)		—

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable Level 3 inputs for the year ended December 31, 2021.

	Available for Sale Securities
	Years Ended December 31
	2021
Beginning balance	$	—
Included in other comprehensive income	(134)
Purchases, issuances and settlements	125,630
Principal payments	—
Ending balance	$	125,496

Realized Gains and Losses Included in Net Income for Periods in Consolidated Statements of Income

Realized gains and losses included in net income for the periods are reported in the consolidated statements of income as follows:

	Years Ended December 31
Non–interest Income	2021		2020		2019
Total gains and losses from:
Hedged loans	$	(19,588)	$	(20,962)	$	(11,380)
Fair value interest rate swap agreements	19,588		20,962		11,380
Derivative loan commitments	(246)		819		91
	$	(246)	$	819	$	91

Other Assets Measured at Fair Value on Nonrecurring Basis

Certain other assets are measured at fair value on a nonrecurring basis in the ordinary course of business and are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment):

	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
December 31, 2021
Collateral dependent loans	$	15,176	$	—	$	—	$	15,176
Mortgage servicing rights	15,186		—		—		15,186
December 31, 2020
Collateral dependent loans	$	13,123	$	—	$	—	$	13,123
Mortgage servicing rights	12,472		—		—		12,472

Qualitative Information About Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements, Other than Goodwill

The following table presents qualitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at December 31, 2021 and 2020.

	December 31, 2021
	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
State and municipal securities	$	120,464	Grid pricing	Maturity date, Weighted average coupon	1 month–16 years, 2.05%
Corporate securities	5,032		Grid pricing	Maturity date, Weighted average coupon	9 years–17 years, 3.97%
Collateral dependent loans	15,176		Collateral based measurement	Discount to reflect current market conditions and ultimate collectability	0.0%–54.0% (4.8%)
Mortgage servicing rights	15,186		Discounted cash flows	Discount rate, Constant prepayment rate, Probability of default	8.0%–8.0% (8.0%), 8.4%–14.6% (11.6%), 0.0%–2.0%(0.4%)

	December 31, 2020
	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral dependent loans	$	13,123	Collateral based measurement	Discount to reflect current market conditions and ultimate collectability	0.0%–72.0% (12.4%)
Mortgage servicing rights	12,472		Discounted cash flows	Discount rate, Constant prepayment rate, Probability of default	7.8%–7.8% (7.8%), 11.5%–20.9% (17.5%), 0.0%–1.0%(0.8%)