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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Assets Measured at Fair Value on a Recurring and Non-Recurring Basis

The following tables present for each of the fair-value hierarchy levels the Company’s assets that are measured at fair value on a recurring and non-recurring basis as of December 31 (in thousands):

		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Total
2022
Measured on a recurring basis:
Securities available for sale:
U.S. Government agencies and government sponsored enterprises		$	-			$	21,115			$	-			$	21,115
Mortgage-backed securities			-				933,256				-				933,256
Other assets:
Hedging derivative instruments			-				6,725				-				6,725
Fair value adjusted through comprehensive income		$	-			$	961,096			$	-			$	961,096
Other assets:
Derivative instruments – interest rate products		$	-			$	47,736			$	-			$	47,736
Derivative instruments – mortgage banking			-				96				-				96
Other liabilities:
Derivative instruments – interest rate products			-				(47,738	)			-				(47,738	)
Derivative instruments – mortgage banking			-				(13	)			-				(13	)
Fair value adjusted through net income		$	-			$	81			$	-			$	81
Measured on a nonrecurring basis:
Loans:
Loans held for sale		$	-			$	550			$	-			$	550
Collateral dependent loans			-				-				21,454				21,454
Other assets:
Long-lived assets held for sale			-				-				1,509				1,509
Loan servicing rights			-				-				1,470				1,470
Other real estate owned			-				-				19				19
Total		$	-			$	550			$	24,452			$	25,002

There were no transfers between Levels 1 and 2 during the years ended December 31, 2022 and 2021. There were no liabilities measured at fair value on a nonrecurring basis during the years ended December 31, 2022 and 2021.

(22.) FAIR VALUE MEASUREMENTS (Continued)

		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Total
2021
Measured on a recurring basis:
Securities available for sale:
U.S. Government agencies and government sponsored enterprises		$	-			$	15,891			$	-			$	15,891
Mortgage-backed securities			-				1,162,624				-				1,162,624
Other assets:
Hedging derivative instruments			-				1,559				-				1,559
Fair value adjusted through comprehensive income		$	-			$	1,180,074			$	-			$	1,180,074
Other assets:
Derivative instruments – interest rate products		$	-			$	14,702			$	-			$	14,702
Derivative instruments – credit contracts			-				-				-				-
Derivative instruments – mortgage banking			-				243				-				243
Other liabilities:
Derivative instruments – interest rate products			-				(14,708	)			-				(14,708	)
Derivative instruments – credit contracts			-				(1	)			-				(1	)
Derivative instruments – mortgage banking			-				(4	)			-				(4	)
Fair value adjusted through net income		$	-			$	232			$	-			$	232
Measured on a nonrecurring basis:
Loans:
Loans held for sale		$	-			$	6,202			$	-			$	6,202
Collateral dependent loans			-				-				33,484				33,484
Other assets:
Long-lived assets held for sale			-				-				2,560				2,560
Loan servicing rights			-				-				1,517				1,517
Other real estate owned			-				-				-				-
Total		$	-			$	6,202			$	37,561			$	43,763

There were no transfers between Levels 1 and 2 during the years ended December 31, 2021 and 2020. There were no liabilities measured at fair value on a nonrecurring basis during the years ended December 31, 2021 and 2020.

Additional Quantitative Information about Assets Measured at Fair Value on Recurring and Non-Recurring Basis

The following table presents additional quantitative information about assets measured at fair value on a recurring and nonrecurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands).

Asset		Fair Value				Valuation Technique		Unobservable Input		Unobservable Input Value / Range
Collateral dependent loans		$	21,454			Appraisal of collateral (1)		Appraisal adjustments (2)		12.3% (3) / 0 - 20%
Loan servicing rights		$	1,470			Discounted cash flow		Discount rate		10.4% (3)
								Constant prepayment rate		11.6% (3)
Long-lived assets held for sale		$	1,509			Appraisal of collateral (1)		Appraisal adjustments (2)		11 - 108%
Other real estate owned		$	19			Appraisal of collateral (1)		Appraisal adjustments (2)		10%

(1)Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable.

(2)Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses.

(3)Weighted averages.

Carrying Amount, Estimated Fair Value, and Placement in Fair Value Hierarchy of Financial Instruments

The following presents the carrying amount, estimated fair value, and placement in the fair value measurement hierarchy of the Company’s financial instruments as of December 31, 2022 and 2021 (in thousands):

		Level in		2022								2021
		Fair Value						Estimated								Estimated
		Measurement		Carrying				Fair				Carrying				Fair
		Hierarchy		Amount				Value				Amount				Value
Financial assets:
Cash and cash equivalents		Level 1		$	130,466			$	130,466			$	79,112			$	79,112
Securities available for sale		Level 2			954,371				954,371				1,178,515				1,178,515
Securities held to maturity, net		Level 2			188,975				174,188				205,581				209,820
Loans held for sale		Level 2			550				550				6,202				6,202
Loans		Level 2			3,983,582				3,867,285				3,606,276				3,642,351
Loans⁽¹⁾		Level 3			21,454				21,454				33,484				33,484
Long-lived assets held for sale		Level 3			1,509				1,509				2,560				2,560
Accrued interest receivable		Level 1			19,371				19,371				15,482				15,482
Derivative instruments – cash flow hedge		Level 2			6,725				6,725				1,559				1,559
Derivative instruments – interest rate products		Level 2			47,736				47,736				14,528				14,528
Derivative instruments – mortgage banking		Level 2			96				96				243				243
FHLB and FRB stock		Level 2			19,385				19,385				10,770				10,770
Financial liabilities:
Non-maturity deposits		Level 1			3,646,552				3,646,552				3,905,136				3,905,136
Time deposits		Level 2			1,282,872				1,268,957				921,954				920,699
Short-term borrowings		Level 1			205,000				205,000				30,000				30,000
Long-term borrowings		Level 2			74,222				70,814				73,911				77,792
Accrued interest payable		Level 1			5,983				5,983				2,147				2,147
Derivative instruments – interest rate products		Level 2			47,738				47,738				14,534				14,534
Derivative instruments – credit contracts		Level 2			-				-				1				1
Derivative instruments – mortgage banking		Level 2			13				13				4				4

(1)Comprised of collateral dependent loans.

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

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Tabular disclosure of assets measured at fair value measured on a recurring or nonrecurring basis. Includes, but is not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI https://asc.fasb.org/extlink&oid=123594938&loc=d3e13467-108611

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

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