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FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended
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Sep. 30, 2023
Fair Value Disclosures [Abstract] |
Summary of Fair Value Measurements of Assets and Liabilities Recognized in the Balance Sheets Measured at Fair Value on Recurring Basis | The following table presents the fair value measurements of assets and liabilities recognized in the accompanying balance sheets measured at fair value on a recurring basis and the level within the ASC 820-10 fair value hierarchy in which the fair value measurements fall at September 30, 2023, and December 31, 2022.
|  |  | Fair Value Measurements Using:
September 30, 2023 | 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 | $ | 1,713 |  |  | $ | 1,713 |  |  | $ | — |  |  | $ | — |
U.S. Government-sponsored agency securities | 93,585 |  |  | — |  |  | 93,585 |  |  | — |
State and municipal | 973,056 |  |  | — |  |  | 969,863 |  |  | 3,193 |
U.S. Government-sponsored mortgage-backed securities | 419,963 |  |  | — |  |  | 419,959 |  |  | 4 |
Corporate obligations | 11,819 |  |  | — |  |  | 11,788 |  |  | 31 |
Derivative assets | 114,541 |  |  | — |  |  | 114,541 |  |  | — |
Derivative liabilities | 114,014 |  |  | — |  |  | 114,014 |  |  | — |
|  |  | Fair Value Measurements Using:
December 31, 2022 | 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 | $ | 2,459 |  |  | $ | 2,459 |  |  | $ | — |  |  | $ | — |
U.S. Government-sponsored agency securities | 101,962 |  |  | — |  |  | 101,962 |  |  | — |
State and municipal | 1,351,760 |  |  | — |  |  | 1,348,356 |  |  | 3,404 |
U.S. Government-sponsored mortgage-backed securities | 508,273 |  |  | — |  |  | 508,269 |  |  | 4 |
Corporate obligations | 12,207 |  |  | — |  |  | 12,176 |  |  | 31 |
Derivative assets | 93,036 |  |  | — |  |  | 93,036 |  |  | — |
Derivative liabilities | 92,770 |  |  | — |  |  | 92,770 |  |  | — |
Summary of Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements Recognized in the Balance Sheets using Significant Unobservable Level 3 Inputs | 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 three and nine months ended September 30, 2023 and 2022.
| Available for Sale Securities
| Three Months Ended |  | Nine Months Ended
| September 30, 2023 |  | September 30, 2022 |  | September 30, 2023 |  | September 30, 2022
Balance at beginning of the period | $ | 3,348 |  |  | $ | 8,630 |  |  | $ | 3,439 |  |  | $ | 5,491 |
Included in other comprehensive income | (30) |  |  | 29 |  |  | (28) |  |  | (597) |
Purchases, issuances and settlements | — |  |  | — |  |  | — |  |  | 5,111 |
Principal payments | (90) |  |  | (3,152) |  |  | (183) |  |  | (4,498) |
Ending balance | $ | 3,228 |  |  | $ | 5,507 |  |  | $ | 3,228 |  |  | $ | 5,507 |
Summary of Description of Valuation Methodologies Used for Instruments Measured at Fair Value on a Non-Recurring Basis and Recognized in the Balance Sheets | Following is a description of valuation methodologies used for instruments measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy at September 30, 2023, and December 31, 2022.
|  |  |  | Fair Value Measurements Using
September 30, 2023 |  | Fair Value |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Collateral dependent loans |  | $ | 50,607 |  |  | $ | — |  |  | $ | — |  |  | $ | 50,607 |
Other real estate owned |  | 362 |  |  | — |  |  | — |  |  | 362 |
|  |  |  | Fair Value Measurements Using
December 31, 2022 |  | Fair Value |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Collateral dependent loans |  | $ | 55,290 |  |  | $ | — |  |  | $ | — |  |  | $ | 55,290 |
Summary of Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements Other than Goodwill | The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements, other than goodwill, at September 30, 2023 and December 31, 2022.
September 30, 2023 | Fair Value |  | Valuation Technique |  | Unobservable Inputs |  | Range (Weighted-Average)
State and municipal securities | $ | 3,193 |  |  | Discounted cash flow |  | Maturity/Call date |  | 1 month to 15 years
|  |  |  |  | US Muni BQ curve |  | BBB
|  |  |  |  | Discount rate |  | 4.2% - 5.1%
|  |  |  |  | Weighted-average coupon |  | 3.3%
Corporate obligations and U.S. Government-sponsored mortgage-backed securities | $ | 35 |  |  | Discounted cash flow |  | Risk free rate |  | 3 month CME Term SOFR plus 26bps
|  |  |  |  | plus premium for illiquidity (basis points) |  | plus 200bps
|  |  |  |  | Weighted-average coupon |  | 0%
Collateral dependent loans | $ | 50,607 |  |  | Collateral based measurements |  | Discount to reflect current market conditions and ultimate collectability |  | 0% - 10%
|  |  |  |  | Weighted-average discount by loan balance |  | 4.8%
Other real estate owned | $ | 362 |  |  | Appraisals |  | Discount to reflect current market conditions |  | 0% - 10%
|  |  |  |  | Weighted-average discount of other real estate owned balance |  | 7.2%
December 31, 2022 | Fair Value |  | Valuation Technique |  | Unobservable Inputs |  | Range (Weighted-Average)
State and municipal securities | $ | 3,404 |  |  | Discounted cash flow |  | Maturity/Call date |  | 1 month to 15 years
|  |  |  |  | US Muni BQ curve |  | A- to BBB
|  |  |  |  | Discount rate |  | 0.4% - 4%
|  |  |  |  | Weighted-average coupon |  | 3.4%
Corporate obligations and U.S. Government-sponsored mortgage-backed securities | $ | 35 |  |  | Discounted cash flow |  | Risk free rate |  | 3 month LIBOR
|  |  |  |  | plus premium for illiquidity (basis points) |  | plus 200bps
|  |  |  |  | Weighted-average coupon |  | 0%
Collateral dependent loans | $ | 55,290 |  |  | Collateral based measurements |  | Discount to reflect current market conditions and ultimate collectability |  | 0% - 10%
|  |  |  |  | Weighted-average discount by loan balance |  | 1.1%
Summary of Estimated Fair Values of Financial Instruments | The following table presents estimated fair values of the Corporation’s financial instruments and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2023 and December 31, 2022.
|  |  | September 30, 2023 |  |  |  |
|  |  | Quoted Prices in Active Markets for Identical Assets |  | Significant Other Observable Inputs |  | Significant Unobservable Inputs |  |
| Carrying Amount | (Level 1) |  | (Level 2) |  | (Level 3) |  | Total Fair Value
Assets: |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 125,173 |  |  | $ | 125,173 |  |  | $ | — |  |  | $ | — |  |  | $ | 125,173 |
Interest-bearing deposits | 348,639 |  |  | 348,639 |  |  | — |  |  | — |  |  | 348,639 |
Investment securities available for sale | 1,500,136 |  |  | 1,713 |  |  | 1,495,195 |  |  | 3,228 |  |  | 1,500,136 |
Investment securities held to maturity, net | 2,213,588 |  |  | — |  |  | 1,730,830 |  |  | 10,395 |  |  | 1,741,225 |
Loans held for sale | 30,972 |  |  | — |  |  | 30,972 |  |  | — |  |  | 30,972 |
Loans, net | 12,065,640 |  |  | — |  |  | — |  |  | 11,801,546 |  |  | 11,801,546 |
Federal Home Loan Bank stock | 41,797 |  |  | — |  |  | 41,797 |  |  | — |  |  | 41,797 |
Derivative assets | 114,541 |  |  | — |  |  | 114,541 |  |  | — |  |  | 114,541 |
Interest receivable | 90,011 |  |  | — |  |  | 90,011 |  |  | — |  |  | 90,011 |
Liabilities: |  |  |  |  |  |  |  |  |
Deposits | $ | 14,646,576 |  |  | $ | 12,524,202 |  |  | $ | 2,104,703 |  |  | $ | — |  |  | 14,628,905 |
Borrowings: |  |  |  |  |  |  |  |  |
Securities sold under repurchase agreements | 152,537 |  |  | — |  |  | 152,523 |  |  | — |  |  | 152,523 |
Federal Home Loan Bank advances | 713,384 |  |  | — |  |  | 695,425 |  |  | — |  |  | 695,425 |
Subordinated debentures and other borrowings | 158,665 |  |  | — |  |  | 135,847 |  |  | — |  |  | 135,847 |
Derivative liabilities | 114,014 |  |  | — |  |  | 114,014 |  |  | — |  |  | 114,014 |
Interest payable | 16,473 |  |  | — |  |  | 16,473 |  |  | — |  |  | 16,473 |
|  |  | December 31, 2022 |  |  |  |
|  |  | Quoted Prices in Active Markets for Identical Assets |  | Significant Other Observable Inputs |  | Significant Unobservable Inputs |  |
| Carrying Amount | (Level 1) |  | (Level 2) |  | (Level 3) |  | Total Fair Value
Assets: |  |  |  |  |  |  |  |  |
Cash and due from banks | $ | 122,594 |  |  | $ | 122,594 |  |  | $ | — |  |  | $ | — |  |  | $ | 122,594 |
Interest-bearing deposits | 126,061 |  |  | 126,061 |  |  | — |  |  | — |  |  | 126,061 |
Investment securities available for sale | 1,976,661 |  |  | 2,459 |  |  | 1,970,763 |  |  | 3,439 |  |  | 1,976,661 |
Investment securities held to maturity, net | 2,287,127 |  |  | — |  |  | 1,893,271 |  |  | 14,594 |  |  | 1,907,865 |
Loans held for sale | 9,094 |  |  | — |  |  | 9,094 |  |  | — |  |  | 9,094 |
Loans, net | 11,780,617 |  |  | — |  |  | — |  |  | 11,156,217 |  |  | 11,156,217 |
Federal Home Loan Bank stock | 38,525 |  |  | — |  |  | 38,525 |  |  | — |  |  | 38,525 |
Derivative assets | 93,036 |  |  | — |  |  | 93,036 |  |  | — |  |  | 93,036 |
Interest receivable | 85,070 |  |  | — |  |  | 85,070 |  |  | — |  |  | 85,070 |
Liabilities: |  |  |  |  |  |  |  |  |
Deposits | $ | 14,382,745 |  |  | $ | 13,105,936 |  |  | $ | 1,251,017 |  |  | $ | — |  |  | 14,356,953 |
Borrowings: |  |  |  |  |  |  |  |  |
Federal funds purchased | 171,560 |  |  | — |  |  | 171,560 |  |  | — |  |  | 171,560 |
Securities sold under repurchase agreements | 167,413 |  |  | — |  |  | 167,396 |  |  | — |  |  | 167,396 |
Federal Home Loan Bank advances | 823,674 |  |  | — |  |  | 615,211 |  |  | — |  |  | 615,211 |
Subordinated debentures and other borrowings | 151,298 |  |  | — |  |  | 122,102 |  |  | — |  |  | 122,102 |
Derivative liabilities | 92,770 |  |  | — |  |  | 92,770 |  |  | — |  |  | 92,770 |
Interest payable | 7,530 |  |  | — |  |  | 7,530 |  |  | — |  |  | 7,530 |

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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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