FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2022

FAIR VALUES OF FINANCIAL INSTRUMENTS

Schedule of assets and liabilities measured at fair value

The fair value of derivatives is based on valuation models using observable market data as of the measurement date (Level 2 inputs).

	December 31, 2022
	Fair Value Measurements Using
	Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
U.S. Government agencies	$	—	$	98,473	$	—	$	98,473
Mortgage Backed Securities-residential		—		620,248		—		620,248
Mortgage Backed Securities-commercial		—		9,677		—		9,677
Collateralized mortgage obligations		—		203,485		—		203,485
State and municipal		—		358,608		1,545		360,153
Municipal taxable		—		32,515		—		32,515
U.S. Treasury		—		2,944		—		2,944
Collateralized debt obligations		—		—		2,986		2,986
TOTAL	$	—	$	1,325,950	$	4,531	$	1,330,481
Derivative Assets				2,838
Derivative Liabilities				(2,838)

	December 31, 2021
	Fair Value Measurements Using
	Significant Unobservable Inputs (Level 3)
(Dollar amounts in thousands)	Level 1		Level 2		Level 3		Total
U.S. Government agencies	$	—	$	120,123	$	—	$	120,123
Mortgage Backed Securities-residential		—		626,428		—		626,428
Mortgage Backed Securities-commercial		—		15,671		—		15,671
Collateralized mortgage obligations		—		175,005		—		175,005
State and municipal		—		378,203		1,895		380,098
Municipal taxable		—		38,626		—		38,626
U.S. Treasury		—		204		—		204
Collateralized debt obligations		—		—		3,359		3,359
TOTAL	$	—	$	1,354,260	$	5,254	$	1,359,514
Derivative Assets				1,030
Derivative Liabilities				(1,030)

Roll forward of financial instruments having fair value measurements using significant unobservable inputs (Level 3)

The table below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the twelve months ended December 31, 2022 and 2021.

	Year Ended
	December 31, 2022
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Other securities		Total
Beginning balance, January 1	$	1,895	$	3,359	$	—	$	5,254
Total realized/unrealized gains or losses
Included in earnings		—		—		—		—
Included in other comprehensive income		—		(373)		—		(373)
Transfers		—		—		—		—
Settlements		(350)		—		—		(350)
Ending balance, December 31	$	1,545	$	2,986	$	—	$	4,531

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Year Ended
	December 31, 2021
	State and
	municipal		Collateralized
(Dollar amounts in thousands)	obligations		debt obligations		Other securities		Total
Beginning balance, January 1	$	1,895	$	3,136	$	—	$	5,031
Total realized/unrealized gains or losses
Included in earnings		—		—		—		—
Included in other comprehensive income		—		223		—		223
Purchases		—		—		—		—
Settlements		—		—		—		—
Ending balance, December 31	$	1,895	$	3,359	$	—	$	5,254

Quantitative information about recurring and non-recurring Level 3

The following tables present quantitative information about recurring and non-recurring Level 3 fair value measurements at December 31, 2022 and 2021.

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	1,545	Discounted cash flow	Discount rate	3.73%-4.44	%
Collateralized debt obligations	$	2,986	Discounted cash flow	Discount rate	5.34	%
Collateral dependent loans	$	4,477	Discounted cash flow	Discount rate for age of appraisal and market conditions	0.00%-50.00	%

(Dollar amounts in thousands)	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
State and municipal obligations	$	1,895	Discounted cash flow	Discount rate	3.41%-4.44	%
Collateralized debt obligations	$	3,359	Discounted cash flow	Discount rate	1.83	%
Collateral dependent loans		12,839	Discounted cash flow	Discount rate for age of appraisal and market conditions	0.00%-50.00	%

Schedule of carrying amount and estimated fair value of financial instruments

The carrying amount and estimated fair value of assets and liabilities are presented in the tables below and were determined based on the above assumptions:

	December 31, 2022
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	222,517	$	29,400	$	193,117	$	—	$	222,517
Federal funds sold		9,374		—		9,374		—		9,374
Securities available-for-sale		1,330,481		—		1,325,950		4,531		1,330,481
Restricted stock		15,378		n/a		n/a		n/a		n/a
Loans, net		3,027,659		—		—		2,930,680		2,930,680
Accrued interest receivable		21,288		—		5,529		15,759		21,288
Deposits		(4,368,871)		—		(4,369,402)		—		(4,369,402)
Short-term borrowings		(70,875)		—		(70,875)		—		(70,875)
Other borrowings		(9,589)		—		(8,788)		—		(8,788)
Accrued interest payable		(483)		—		(483)		—		(483)

	December 31, 2021
	Carrying		Fair Value
(Dollar amounts in thousands)	Value		Level 1		Level 2		Level 3		Total
Cash and due from banks	$	688,027	$	24,901	$	663,126	$	—	$	688,027
Federal funds sold		308		—		308		—		308
Securities available-for-sale		1,359,514		—		1,354,260		5,254		1,359,514
Restricted stock		16,200		n/a		n/a		n/a		n/a
Loans, net		2,767,590		—		—		2,682,257		2,682,257
Accrued interest receivable		16,946		—		4,709		12,237		16,946
Deposits		(4,409,569)		—		(4,418,117)		—		(4,418,117)
Short-term borrowings		(93,374)		—		(93,374)		—		(93,374)
Other borrowings		(15,937)		—		(16,483)		—		(16,483)
Accrued interest payable		(687)		—		(687)		—		(687)