Fair value of financial instruments (Tables)

The following table contains the estimated fair values and the related carrying values of the Company's financial instruments. Items which are not financial instruments are not included.


	Fair Value
June 30, 2021	Carrying amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	1,717,097	$	1,717,097	$	—	$	—	$	1,717,097
Investment securities	1,409,175		—		1,409,175		—		1,409,175

Loans, net	7,054,291		—		—		7,199,111		7,199,111
Loans held for sale	821,529		—		697,407		124,122		821,529
Interest receivable	42,083		72		6,119		35,892		42,083
Mortgage servicing rights	101,615		—		—		101,615		101,615
Derivatives	42,182		—		42,182		—		42,182
Financial liabilities:
Deposits:
Without stated maturities	$	8,921,516	$	8,921,516	$	—	$	—	$	8,921,516
With stated maturities	1,282,440		—		1,292,720		—		1,292,720
Securities sold under agreement to repurchase and federal funds sold	33,056		33,056		—		—		33,056

Subordinated debt	149,351		—		—		153,631		153,631
Other borrowings	1,555		—		1,555		—		1,555
Interest payable	4,136		169		2,442		1,525		4,136
Derivatives	28,960		—		28,960		—		28,960


	Fair Value
December 31, 2020	Carrying amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	1,317,898	$	1,317,898	$	—	$	—	$	1,317,898
Investment securities	1,176,991		—		1,176,991		—		1,176,991

Loans, net	6,912,570		—		—		7,058,693		7,058,693
Loans held for sale	899,173		—		683,770		215,403		899,173
Interest receivable	43,603		33		5,254		38,316		43,603
Mortgage servicing rights	79,997		—		—		79,997		79,997
Derivatives	68,938		—		68,938		—		68,938
Financial liabilities:
Deposits:
Without stated maturities	$	8,020,783	$	8,020,783	$	—	$	—	$	8,020,783
With stated maturities	1,437,254		—		1,446,605		—		1,446,605
Securities sold under agreement to repurchase and federal funds sold	32,199		32,199		—		—		32,199

Subordinated debt	189,527		—		—		192,149		192,149
Other borrowings	16,598		—		16,598		—		16,598
Interest payable	6,772		327		4,210		2,235		6,772
Derivatives	48,242		—		48,242		—		48,242

The balances and levels of the assets measured at fair value on a recurring basis at June 30, 2021 are presented in the following table:


At June 30, 2021	Quoted prices in active markets for identical assets (liabilities) (level 1)		Significant other observable inputs (level 2)		Significant unobservable inputs (level 3)		Total
Recurring valuations:
Financial assets:
Available-for-sale securities:
U.S. government agency securities	$	—	$	8,255	$	—	$	8,255
Mortgage-backed securities - residential	—		1,035,003		—		1,035,003
Mortgage-backed securities - commercial	—		15,161		—		15,161
Municipal securities	—		332,883		—		332,883
Treasury securities	—		10,534		—		10,534
Corporate securities	—		2,536		—		2,536
Equity securities	—		4,803		—		4,803
Total securities	$	—	$	1,409,175	$	—	$	1,409,175
Loans held for sale	—		697,407		124,122		821,529
Mortgage servicing rights	—		—		101,615		101,615
Derivatives	—		42,182		—		42,182
Financial Liabilities:
Derivatives	—		28,960		—		28,960

The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2020 are presented in the following table:


At December 31, 2020	Quoted prices in active markets for identical assets (liabilities) (level 1)		Significant other observable inputs (level 2)		Significant unobservable inputs (level 3)		Total
Recurring valuations:
Financial assets:
Available-for-sale securities:
U.S. government agency securities	$	—	$	2,003	$	—	$	2,003
Mortgage-backed securities - residential	—		773,336		—		773,336
Mortgage-backed securities - commercial	—		21,588		—		21,588
Municipals, tax-exempt	—		356,329		—		356,329
Treasury securities	—		16,628		—		16,628
Corporate securities	—		2,516		—		2,516
Equity securities	—		4,591		—		4,591
Total securities	$	—	$	1,176,991	$	—	$	1,176,991
Loans held for sale	$	—	$	683,770	$	215,403	$	899,173
Mortgage servicing rights	—		—		79,997		79,997
Derivatives	—		68,938		—		68,938
Financial Liabilities:
Derivatives	—		48,242		—		48,242

The balances and levels of the assets measured at fair value on a non-recurring basis at June 30, 2021 are presented in the following table:


At June 30, 2021	Quoted prices in active markets for identical assets (liabilities (level 1)		Significant other observable inputs (level 2)		Significant unobservable inputs (level 3)		Total
Non-recurring valuations:
Financial assets:
Other real estate owned	$	—	$	—	$	6,927	$	6,927
Collateral dependent loans:
Commercial and industrial	$	—	$	—	$	15,220	$	15,220
Construction	—		—		5,993		5,993
Residential real estate:
1-4 family mortgage	—		—		1,615		1,615
Residential line of credit	—		—		1,241		1,241

Commercial real estate:
Owner occupied	—		—		10,045		10,045
Non-owner occupied	—		—		11,624		11,624

Total collateral dependent loans	$	—	$	—	$	45,738	$	45,738

The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2020 are presented in the following table:


At December 31, 2020	Quoted prices in active markets for identical assets (liabilities) (level 1)		Significant other observable inputs (level 2)		Significant unobservable inputs (level 3)		Total
Non-recurring valuations:
Financial assets:
Other real estate owned	$	—	$	—	$	6,662	$	6,662
Collateral dependent loans:
Commercial and industrial	$	—	$	—	$	1,728	$	1,728
Construction	—		—		3,877		3,877
Residential real estate:
1-4 family mortgage	—		—		226		226
Residential line of credit	—		—		1,174		1,174
Commercial real estate:
Owner occupied	—		—		3,391		3,391
Non-owner occupied	—		—		8,164		8,164

Total collateral dependent loans	$	—	$	—	$	18,560	$	18,560

The following tables present information as of June 30, 2021 and December 31, 2020 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis:

As of June 30, 2021

Financial instrument

Fair Value

Valuation technique

Significant
Unobservable inputs

Range of
inputs

Collateral dependent loans

45,738

Valuation of collateral

Discount for comparable sales

0%-30%

Other real estate owned

6,927

Appraised value of property less costs to sell

Discount for costs to sell

0%-15%

As of December 31, 2020