Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

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.

	March 31,		December 31,
	2023		2022
Commitments to extend credit, excluding interest rate lock commitments	$	3,341,445	$	3,563,982
Letters of credit	68,422		71,250
Balance at end of period	$	3,409,867	$	3,635,232

As of March 31, 2023 and December 31, 2022, loan commitments included above with floating interest rates totaled $2.87 billion and $2.96 billion, respectively.

The Company estimates expected credit losses on off-balance sheet loan commitments 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 months ended March 31, 2023 and 2022:

	Three Months Ended March 31,
	2023		2022
Balance at beginning of period	$	22,969	$	14,380
Provision for credit losses on unfunded commitments	(4,506)		1,882
Balance at end of period	$	18,463	$	16,262

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 recorded valuation reserve. The total principal amount of loans repurchased (or indemnified for) was $3,326 and $1,348 for the three months ended March 31, 2023 and 2022, 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 March 31,
	2023		2022
Balance at beginning of period	$	1,621	$	4,802
Provision for loan repurchases or indemnifications	(250)		(389)
Losses on loans repurchased or indemnified	(13)		(96)
Balance at end of period	$	1,358	$	4,317

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.