Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present our assets and liabilities that are measured at fair value on a recurring basis by fair value hierarchy level at the dates presented:


	June 30, 2022
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Available-for-sale debt securities:
U.S. Treasury securities	$	136,282	$	—	$	—	$	136,282
Obligations of U.S. government corporations and agencies	—		52,815		—		52,815
Collateralized mortgage obligations of U.S. government corporations and agencies	—		427,635		—		427,635
Residential mortgage-backed securities of U.S. government corporations and agencies	—		46,416		—		46,416
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		333,994		—		333,994
Corporate obligations	—		500		—		500
Obligations of states and political subdivisions	—		69,850		—		69,850
Total Available-for-sale Debt Securities	136,282		931,210		—		1,067,492
Marketable equity securities	1,015		69		—		1,084
Total Securities	137,297		931,279		—		1,068,576
Securities held in a deferred compensation plan	7,678		—		—		7,678
Derivative financial assets:
Interest rate swaps - commercial loans	—		51,097		—		51,097
Interest rate lock commitments	—		—		56		56

Interest rate swaps - cash flow hedge	—		368		—		368
Total Assets	$	144,975	$	982,744	$	56	$	1,127,775
LIABILITIES
Derivative financial liabilities:
Interest rate swaps - commercial loans	$	—	$	51,193	$	—	$	51,193
Forward sale contracts - mortgage loans	—		—		2		2
Interest rate swaps - cash flow hedge	—		5,946		—		5,946
Total Liabilities	$	—	$	57,139	$	2	$	57,141


	December 31, 2021
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Available-for-sale debt securities:
U.S. Treasury securities	$	95,327	$	—	$	—	$	95,327
Obligations of U.S. government corporations and agencies	—		70,348		—		70,348
Collateralized mortgage obligations of U.S. government corporations and agencies	—		270,294		—		270,294
Residential mortgage-backed securities of U.S. government corporations and agencies	—		56,793		—		56,793
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		341,300		—		341,300
Corporate obligations	—		500		—		500
Obligations of states and political subdivisions	—		75,089		—		75,089
Total Available-for-sale Debt Securities	95,327		814,324		—		909,651
Marketable equity securities	1,061		81		—		1,142
Total Securities	96,388		814,405		—		910,793
Securities held in a deferred compensation plan	10,230		—		—		10,230
Derivative financial assets:
Interest rate swaps - commercial loans	—		33,528		—		33,528
Interest rate lock commitments	—		—		401		401
Forward sale contracts - mortgage loans	—		—		4		4

Interest rate swaps - cash flow hedge	—		—		—		—
Total Assets	$	106,618	$	847,933	$	405	$	954,956
LIABILITIES
Derivative financial liabilities:
Interest rate swaps - commercial loans	$	—	$	33,631	$	—	$	33,631



Total Liabilities	$	—	$	33,631	$	—	$	33,631

Schedule of Assets Measured at Fair Value on Nonrecurring Basis by Significant Unobservable Inputs

Level 3 assets measured at fair value on a nonrecurring basis and the significant unobservable inputs used in the fair value measurements as of June 30, 2022 and December 31, 2021 were as follows:

June 30, 2022

Valuation Technique

Significant Unobservable Inputs

Range

Weighted Average

(1)

(dollars in thousands)

Loans individually evaluated

Collateral method

Appraisal adjustment

10%

10.00%

Total Assets

(1) Weighted averages for loans individually evaluated were weighted by loan amounts.


	December 31, 2021		Valuation Technique	Significant Unobservable Inputs	Range			Weighted Average (1) (2)
(dollars in thousands)
Loans individually evaluated	$	7,268	Collateral method	Appraisal adjustment	0%	-	20%	4.48%
Other real estate owned	1,011		Collateral method	Appraisal adjustment	2.53%			2.53%



Total Assets	$	8,279
(1) Weighted averages for loans individually evaluated were weighted by loan amounts. (2) Weighted averages for other real estate owned were weighted by OREO balances.

Schedule of Carrying Values and Fair Values of Financial Instruments

The following tables present the carrying values and fair values of our financial instruments at the dates presented:


	Carrying Value(1)		Fair Value Measurements at June 30, 2022
(dollars in thousands)			Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	344,694	$	344,694	$	344,694	$	—	$	—
Securities	1,068,576		1,068,576		137,297		931,279		—
Loans held for sale	1,311		1,326		—		—		1,326
Portfolio loans, net	6,942,799		6,784,189		—		—		6,784,189

Securities held in a deferred compensation plan	7,678		7,678		7,678		—		—
Mortgage servicing rights	7,575		9,996		—		—		9,996
Interest rate swaps - commercial loans	51,097		51,097		—		51,097		—
Interest rate swaps - cash flow hedge	368		368		—		368		—
Interest rate lock commitments	56		56		—		—		56

LIABILITIES
Deposits	$	7,612,247	$	7,591,465	$	6,631,131	$	960,334	$	—
Collateral payable	52,709		52,709		52,709		—		—
Securities sold under repurchase agreements	39,259		39,259		39,259		—		—
Short-term borrowings	—		—		—		—		—
Long-term borrowings	21,988		21,634		4,196		17,438		—
Junior subordinated debt securities	54,423		54,423		54,423		—		—
Interest rate swaps - commercial loans	51,193		51,193		—		51,193		—
Interest rate swaps - cash flow hedge	5,946		5,946		—		5,946		—
Forward sale contracts - mortgage loans	2		2		—		—		2
(1) As reported in the Consolidated Balance Sheets


	Carrying Value(1)		Fair Value Measurements at December 31, 2021
(dollars in thousands)			Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	922,215	$	922,215	$	922,215	$	—	$	—
Securities	910,793		910,793		96,388		814,405		—
Loans held for sale	1,522		1,522		—		—		1,522
Portfolio loans, net	6,901,414		6,815,468		—		—		6,815,468
Collateral receivable	37,363		37,363		37,363		—		—
Securities held in a deferred compensation plan	10,230		10,230		10,230		—		—
Mortgage servicing rights	7,677		7,677		—		—		7,677
Interest rate swaps	33,528		33,528		—		33,528		—
Interest rate lock commitments	401		401		—		—		401
Forward sale contracts	4		4		—		—		4
LIABILITIES
Deposits	$	7,996,524	$	7,992,942	$	6,908,453	$	1,084,489	$	—

Securities sold under repurchase agreements	84,491		84,491		84,491		—		—
Short-term borrowings	—		—		—		—		—
Long-term borrowings	22,430		22,678		4,300		18,378		—
Junior subordinated debt securities	54,393		54,393		54,393		—		—
Interest rate swaps - commercial loans	33,631		33,631		—		33,631		—

(1) As reported in the Consolidated Balance Sheets