Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

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
March 31, 2022	Carrying amount		Level 1		Level 2		Level 3		Total
Financial assets:
Cash and cash equivalents	$	1,743,311	$	1,743,311	$	—	$	—	$	1,743,311
Investment securities	1,686,738		—		1,686,738		—		1,686,738
Loans, net	7,884,927		—		—		7,872,659		7,872,659
Loans held for sale	396,728		—		318,549		78,179		396,728
Interest receivable	39,069		101		6,806		32,162		39,069
Mortgage servicing rights	144,675		—		—		144,675		144,675
Derivatives	38,180		—		38,180		—		38,180
Financial liabilities:
Deposits:
Without stated maturities	$	9,940,962	$	9,940,962	$	—	$	—	$	9,940,962
With stated maturities	1,055,316		—		1,060,935		—		1,060,935
Securities sold under agreement to repurchase and federal funds sold	25,937		25,937		—		—		25,937
Subordinated debt	128,308		—		—		129,742		129,742
Interest payable	1,476		124		960		392		1,476
Derivatives	33,029		—		33,029		—		33,029

	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

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 March 31, 2022 are presented in the following table:

At March 31, 2022	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	$	—	$	38,882	$	—	$	38,882
Mortgage-backed securities - residential	—		1,232,256		—		1,232,256
Mortgage-backed securities - commercial	—		14,307		—		14,307
Municipal securities	—		310,138		—		310,138
Treasury securities	—		80,173		—		80,173
Corporate securities	—		7,769		—		7,769
Equity securities	—		3,213		—		3,213
Total securities	$	—	$	1,686,738	$	—	$	1,686,738
Loans held for sale	$	—	$	318,549	$	78,179	$	396,728
Mortgage servicing rights	—		—		144,675		144,675
Derivatives	—		38,180		—		38,180
Financial Liabilities:
Derivatives	—		33,029		—		33,029

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

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 March 31, 2022 are presented in the following table: 

At March 31, 2022	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	$	—	$	—	$	1,836	$	1,836
Collateral dependent loans:
Commercial and industrial	$	—	$	—	$	11	$	11
Construction	—		—		601		601
Residential real estate:
Residential line of credit	—		—		311		311
Commercial real estate:
Owner occupied	—		—		2,140		2,140
Consumer and other	—		—		24		24
Total collateral dependent loans	$	—	$	—	$	3,087	$	3,087

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

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 March 31, 2022 and December 31, 2021 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis:

As of March 31, 2022
Financial instrument	Fair Value		Valuation technique	Significant  unobservable inputs	Range of inputs
Collateral dependent loans	$	3,087	Valuation of collateral	Discount for comparable sales	10%-35%
Other real estate owned	$	1,836	Appraised value of property less costs to sell	Discount for costs to sell	0%-15%

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%

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:

	March 31,		December 31,
	2022		2021
Commercial and industrial	$	78,179	$	79,299
Residential real estate:
1-4 family mortgage	318,549		672,924
Total loans held for sale	$	396,728	$	752,223

Schedule of Changes in Associated with Commercial Loans Held For Sale

The following tables sets forth the changes in fair value associated with this portfolio for the three months ended March 31, 2022 and 2021.

	Three Months Ended March 31, 2022
	Principal Balance		Fair Value Discount		Fair Value
Carrying value at beginning of period	$	86,762	$	(7,463)	$	79,299
Change in fair value:
Pay-downs and pay-offs	(946)		—		(946)
Write-offs to discount	—		—		—
Changes in valuation included in other noninterest income	—		(174)		(174)
Carrying value at end of period	$	85,816	$	(7,637)	$	78,179

	Three Months Ended March 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	(39,566)		—		(39,566)
Write-offs to discount	(2,007)		2,007		—
Changes in valuation included in other noninterest income	—		(853)		(853)
Carrying value at end of period	$	197,490	$	(22,506)	$	174,984

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 March 31, 2022 and December 31, 2021: 

March 31, 2022	Aggregate fair value		Aggregate Unpaid Principal Balance		Difference
Mortgage loans held for sale measured at fair value	$	318,549	$	320,516	$	(1,967)
Commercial loans held for sale measured at fair value	73,092		76,028		(2,936)
Nonaccrual commercial loans held for sale	5,087		9,788		(4,701)
December 31, 2021
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 commercial loans held for sale	5,217		9,899		(4,682)