Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

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:


	March 31, 2023
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Available-for-sale debt securities:
U.S. Treasury securities	$	133,704	$	—	$	—	$	133,704
Obligations of U.S. government corporations and agencies	—		42,095		—		42,095
Collateralized mortgage obligations of U.S. government corporations and agencies	—		432,739		—		432,739
Residential mortgage-backed securities of U.S. government corporations and agencies	—		41,170		—		41,170
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		317,099		—		317,099

Obligations of states and political subdivisions	—		30,895		—		30,895
Total Available-for-sale Debt Securities	133,704		863,998		—		997,702
Marketable equity securities	953		53		—		1,006
Total Securities	134,657		864,051		—		998,708
Securities held in a deferred compensation plan	7,790		—		—		7,790
Derivative financial assets:
Interest rate swaps - commercial loans	—		67,397		—		67,397
Interest rate lock commitments	—		—		6		6


Total Assets	$	142,447	$	931,448	$	6	$	1,073,901
LIABILITIES
Derivative financial liabilities:
Interest rate swaps - commercial loans	$	—	$	67,397	$	—	$	67,397


Interest rate swaps - cash flow hedge	—		15,288		—		15,288
Total Liabilities	$	—	$	82,685	$	—	$	82,685


	December 31, 2022
(dollars in thousands)	Level 1		Level 2		Level 3		Total
ASSETS
Available-for-sale debt securities:
U.S. Treasury securities	$	131,695	$	—	$	—	$	131,695
Obligations of U.S. government corporations and agencies	—		41,811		—		41,811
Collateralized mortgage obligations of U.S. government corporations and agencies	—		428,407		—		428,407
Residential mortgage-backed securities of U.S. government corporations and agencies	—		41,587		—		41,587
Commercial mortgage-backed securities of U.S. government corporations and agencies	—		327,313		—		327,313
Corporate obligations	—		500		—		500
Obligations of states and political subdivisions	—		30,471		—		30,471
Total Available-for-sale Debt Securities	131,695		870,089		—		1,001,784
Marketable equity securities	952		42		—		994
Total Securities	132,647		870,131		—		1,002,778
Securities held in a deferred compensation plan	8,087		—		—		8,087
Derivative financial assets:
Interest rate swaps - commercial loans	—		83,449		—		83,449
Interest rate lock commitments	—		—		5		5
Forward sale contracts - mortgage loans	—		—		2		2


Total Assets	$	140,734	$	953,580	$	7	$	1,094,321
LIABILITIES
Derivative financial liabilities:
Interest rate swaps - commercial loans	$	—	$	83,449	$	—	$	83,449


Interest rate swaps - cash flow hedge	—		21,368		—		21,368
Total Liabilities	$	—	$	104,817	$	—	$	104,817

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 December 31, 2022 were as follows:

December 31, 2022

Valuation Technique

Significant Unobservable Inputs

Range

Weighted Average

(dollars in thousands)

Other real estate owned

3,060

Collateral method

Discount rate

13.00%

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 March 31, 2023
(dollars in thousands)			Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	244,152	$	244,152	$	244,152	$	—	$	—
Securities	998,708		998,708		134,657		864,051
Loans held for sale	81		81		—		81		—
Portfolio loans, net	7,142,951		6,883,297		—		—		6,883,297
Collateral receivable	4,901		4,901		4,901		—		—
Securities held in a deferred compensation plan	7,790		7,790		7,790		—		—
Mortgage servicing rights	6,935		9,335		—		—		9,335
Interest rate swaps - commercial loans	67,397		67,397		—		67,397		—

Interest rate lock commitments	6		6		—		—		6

LIABILITIES
Deposits	$	7,153,094	$	7,132,944	$	5,977,856	$	1,155,088	$	—
Collateral payable	55,301		55,301		55,301		—		—

Short-term borrowings	495,000		495,000		—		495,000		—
Long-term borrowings	14,628		14,162		—		14,162		—
Junior subordinated debt securities	54,468		54,468		—		54,468		—
Interest rate swaps - commercial loans	67,397		67,397		—		67,397		—
Interest rate swaps - cash flow hedge	15,288		15,288		—		15,288		—


(1) As reported in the Consolidated Balance Sheets


	Carrying Value(1)		Fair Value Measurements at December 31, 2022
(dollars in thousands)			Total		Level 1		Level 2		Level 3
ASSETS
Cash and due from banks, including interest-bearing deposits	$	210,009	$	210,009	$	210,009	$	—	$	—
Securities	1,002,778		1,002,778		132,647		870,131		—
Loans held for sale	16		16		—		16		—
Portfolio loans, net	7,082,629		6,815,167		—		—		6,815,167
Collateral receivable	6,307		6,307		6,307		—		—
Securities held in a deferred compensation plan	8,087		8,087		8,087		—		—
Mortgage servicing rights	7,147		9,994		—		—		9,994
Interest rate swaps - commercial loans	83,449		83,449		—		83,449		—
Interest rate lock commitments	5		5		—		—		5
Forward sale contracts	2		2		—		—		2
LIABILITIES
Deposits	$	7,219,970	$	7,194,225	$	6,285,377	$	908,848	$	—
Collateral payable	65,065		65,065		65,065		—		—

Short-term borrowings	370,000		370,000		—		370,000		—
Long-term borrowings	14,741		14,174		—		14,174		—
Junior subordinated debt securities	54,453		54,453		—		54,453		—
Interest rate swaps - commercial loans	83,449		83,449		—		83,449		—
Interest rate swaps - cash flow hedge	21,368		21,368		—		21,368		—

(1) As reported in the Consolidated Balance Sheets