Commitments and contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

Commitments and contingencies:

Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates.

Commitments may expire without being used. Off-balance sheet risk of credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

	December 31,
	2021		2020
Commitments to extend credit, excluding interest rate lock commitments	$	3,106,594	$	2,719,996
Letters of credit	77,427		67,598
Balance at end of period	$	3,184,021	$	2,787,594

As of December 31, 2021 and 2020, loan commitments included above with floating interest rates totaled $2.26 billion and $1.65 billion, respectively.

The Company estimates expected credit losses on off-balance sheet loan commitments that are not accounted for as derivatives. On January 1, 2020, the Company began estimating expected credit losses under the CECL methodology. When applying this methodology, the Company considers the likelihood that funding will occur, the contractual period of exposure to credit loss, the risk of loss, historical loss experience, and current conditions along with expectations of future economic conditions.

The table below presents activity within the allowance for credit losses on unfunded commitments included in accrued expenses and other liabilities on the Company's consolidated balance sheets for the years ended December 31, 2021 and 2020:

	Year Ended December 31,
	2021		2020
Balance at beginning of period	$	16,378	$	—
Impact of CECL adoption on provision for credit losses on unfunded commitments	—		2,947
Increase in provision for credit losses from unfunded commitments acquired in business combination	—		10,499
Provision for credit losses on unfunded commitments	(1,998)		2,932
Balance at end of period	$	14,380	$	16,378

In connection with the sale of mortgage loans to third party investors, the Company makes usual and customary representations and warranties as to the propriety of its origination activities. Occasionally, the investors require the Company to repurchase loans sold to them under the terms of the warranties. When this happens, the loans are recorded at fair value with a corresponding charge to a valuation reserve. The total principal amount of loans repurchased (or indemnified for) was $7,364, $9,171 and $6,475 for the years ended December 31, 2021, 2020, and 2019, respectively. The Company has established a reserve associated with loan repurchases.

The following table summarizes the activity in the repurchase reserve included in accrued expenses and other liabilities on the Company's consolidated balance sheets:

	Year Ended December 31,
	2021		2020		2019
Balance at beginning of period	$	5,928	$	3,529	$	3,273
Provision for loan repurchases or indemnifications	(766)		2,607		362
Losses on loans repurchased or indemnified	(360)		(208)		(106)
Balance at end of period	$	4,802	$	5,928	$	3,529