Commitments and Contingencies

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and contingencies:

Commitments to extend credit & letters of credit

Some financial instruments, such as loan commitments, credit lines and letters of credit, 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.

The same credit and underwriting policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. Many commitments expire without being used and are only recorded in the consolidated financial statements when drawn upon. The Company's maximum off-balance sheet exposure to credit loss is represented by the contractual amount of these instruments.

	December 31,
	2022		2021
Commitments to extend credit, excluding interest rate lock commitments	$	3,563,982	$	3,106,594
Letters of credit	71,250		77,427
Balance at end of period	$	3,635,232	$	3,184,021

As of December 31, 2022 and 2021, loan commitments included above with floating interest rates totaled $2.96 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 years ended December 31, 2022, 2021, and 2020:

	Years Ended December 31,
	2022		2021		2020
Balance at beginning of period	$	14,380	$	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	8,589		(1,998)		2,932
Balance at end of period	$	22,969	$	14,380	$	16,378

Loan repurchases or indemnifications

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 $7,834, $7,364, and $9,171 for the years ended December 31, 2022, 2021, and 2020, 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:

	Years Ended December 31,
	2022		2021		2020
Balance at beginning of period	$	4,802	$	5,928	$	3,529
Provision for loan repurchases or indemnifications	(2,989)		(766)		2,607
Losses on loans repurchased or indemnified	(192)		(360)		(208)
Balance at end of period	$	1,621	$	4,802	$	5,928

Legal Proceedings

Various legal claims arise from time to time in the normal course of business, which, in the opinion of management, will not have a material effect on the Company’s consolidated financial statements.