Fair value of financial instruments (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of Estimated Fair Values and Carrying Values of Financial Instruments

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
December 31, 2021	Carrying amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	1,797,740	$	1,797,740	$	—	$	—	$	1,797,740
Investment securities	1,681,892		—		1,681,892		—		1,681,892
Loans, net	7,479,103		—		—		7,566,717		7,566,717
Loans held for sale	752,223		—		672,924		79,299		752,223
Interest receivable	38,528		36		6,461		32,031		38,528
Mortgage servicing rights	115,512		—		—		115,512		115,512
Derivatives	27,384		—		27,384		—		27,384
Financial liabilities:
Deposits:
Without stated maturities	$	9,705,816	$	9,705,816	$	—	$	—	$	9,705,816
With stated maturities	1,131,081		—		1,137,647		—		1,137,647
Securities sold under agreement to repurchase and federal funds sold	40,716		40,716		—		—		40,716
Subordinated debt	129,544		—		—		133,021		133,021
Interest payable	3,162		140		1,510		1,512		3,162
Derivatives	21,000		—		21,000		—		21,000

	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	15,000		—		15,000		—		15,000
Interest payable	6,772		327		4,210		2,235		6,772
Derivatives	48,242		—		48,242		—		48,242

Schedule of Balances and Levels of Assets Measured at Fair Value on Recurring Basis

The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2021 are presented in the following table:

At December 31, 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	$	—	$	33,870	$	—	$	33,870
Mortgage-backed securities - residential	—		1,269,372		—		1,269,372
Mortgage-backed securities - commercial	—		15,250		—		15,250
Municipal securities	—		338,610		—		338,610
Treasury securities	—		14,908		—		14,908
Corporate securities	—		6,515		—		6,515
Equity securities	—		3,367		—		3,367
Total securities	$	—	$	1,681,892	$	—	$	1,681,892
Loans held for sale	$	—	$	672,924	$	79,299	$	752,223
Mortgage servicing rights	—		—		115,512		115,512
Derivatives	—		27,384		—		27,384
Financial Liabilities:
Derivatives	—		21,000		—		21,000

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
Municipal securities	—		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

Schedule of Balances and Levels of Assets Measured at Fair Value on Non-recurring Basis

The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2021 are presented in the following table: 

At December 31, 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	$	—	$	—	$	6,308	$	6,308
Collateral dependent loans:
Construction	$	—	$	—	$	606	$	606
Residential real estate:
Residential line of credit	—		—		592		592
Commercial real estate:
Owner occupied	—		—		729		729
Non-owner occupied	—		—		3,526		3,526
Consumer and other	—		—		24		24
Total collateral dependent loans	$	—	$	—	$	5,477	$	5,477

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	$	—	$	—	$	684	$	684
Residential real estate:
Residential line of credit	—		—		311		311
Commercial real estate:
Owner occupied	—		—		136		136
Non-owner occupied	—		—		5,022		5,022
Total collateral dependent loans	$	—	$	—	$	6,153	$	6,153

Schedule of Information About Significant Unobservable Inputs (Level 3) Used in Valuation of Assets Measured at Fair Value on Nonrecurring Basis

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

As of December 31, 2021
Financial instrument	Fair Value		Valuation technique	Significant  unobservable inputs	Range of inputs
Collateral dependent loans	$	5,477	Valuation of collateral	Discount for comparable sales	10%-35%
Other real estate owned	$	6,308	Appraised value of property less costs to sell	Discount for costs to sell	0%-15%

As of December 31, 2020
Financial instrument	Fair Value		Valuation technique	Significant  unobservable inputs	Range of inputs
Collateral dependent loans	$	6,153	Valuation of collateral	Discount for comparable sales	0%-30%
Other real estate owned	$	6,662	Appraised value of property less costs to sell	Discount for costs to sell	0%-15%

Schedule of Loans Held For Sale at Fair Value

The following table summarizes the Company's loans held for sale, at fair value, as of the dates presented:

	December 31,
	2021		2020
Commercial and industrial	$	79,299	$	215,403
Residential real estate:
1-4 family mortgage	672,924		683,770
Total loans held for sale	$	752,223	$	899,173

Schedule of Changes in Associated with Commercial Loans Held For Sale

The following table sets forth the changes in fair value associated with this portfolio.

	Year Ended December 31, 2021
	Principal Balance		Fair Value Discount		Fair Value
Carrying value at beginning of period	$	239,063	$	(23,660)	$	215,403
Change in fair value:
Pay-downs and pay-offs	(141,002)		—		(141,002)
Write-offs to discount	(8,563)		8,563		—
Changes in valuation included in other noninterest income	(2,736)		7,634		4,898
Carrying value at end of period	$	86,762	$	(7,463)	$	79,299

In addition to the gain of $4,898 recognized on the change in fair value of the portfolio during the year ended December 31, 2021, the Company recognized an additional gain of $6,274 related to the pay-off of a loan that had been partially charged off prior to acquisition of the portfolio.

	Year Ended December 31, 2020
	Principal balance		Fair Value discount		Fair Value
Carrying value at beginning of period	$	—	$	—	$	—
Commercial loans held for sale acquired from Franklin	350,269		(24,063)		326,206
Change in fair value:
Pay-downs and pay-offs	(111,206)		—		(111,206)
Write-offs to discount	—		(2,825)		(2,825)
Changes in valuation included in other noninterest income	—		3,228		3,228
Carrying value at end of period	$	239,063	$	(23,660)	$	215,403

Schedule of Differences between Fair Value and Principal Balance for Loans Held for Sale Measured at Fair Value

The following table summarizes the differences between the fair value and the principal balance for loans held for sale and nonaccrual loans measured at fair value as of December 31, 2021 and 2020: 

December 31, 2021	Aggregate fair value		Aggregate Unpaid Principal Balance		Difference
Mortgage loans held for sale measured at fair value	$	672,924	$	658,017	$	14,907
Commercial loans held for sale measured at fair value	74,082		76,863		(2,781)
Nonaccrual loans	5,217		9,899		(4,682)
December 31, 2020
Mortgage loans held for sale measured at fair value	$	683,770	$	651,887	$	31,883
Commercial loans held for sale measured at fair value	208,914		226,867		(17,953)
Past due loans of 90 days or more	83		163		(80)
Nonaccrual loans	6,406		12,033		(5,627)