Commitments and Contingencies

9 Months Ended

Sep. 30, 2022

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.

	September 30,		December 31,
	2022		2021
Commitments to extend credit, excluding interest rate lock commitments	$	3,686,559	$	3,106,594
Letters of credit	64,692		77,427
Balance at end of period	$	3,751,251	$	3,184,021

As of September 30, 2022 and December 31, 2021, loan commitments included above with floating interest rates totaled $2.97 billion and $2.26 billion, respectively.

The Company estimates expected credit losses on off-balance sheet loan commitments that are not accounted for as derivatives 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 three and nine months ended September 30, 2022 and 2021:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Balance at beginning of period	$	20,399	$	13,202	$	14,380	$	16,378
Provision for credit losses on unfunded commitments	3,178		301		9,197		(2,875)
Balance at end of period	$	23,577	$	13,503	$	23,577	$	13,503

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 $4,442 and $5,988 for the three and nine months ended September 30, 2022, respectively, and $2,917 and $4,386 for the three and nine months ended September 30, 2021, 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:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Balance at beginning of period	$	3,445	$	5,489	$	4,802	$	5,928
Provision for loan repurchases or indemnifications	(800)		—		(1,989)		(266)
Losses on loans repurchased or indemnified	16		(120)		(152)		(293)
Balance at end of period	$	2,661	$	5,369	$	2,661	$	5,369