XML 46 R36.htm IDEA: XBRL DOCUMENT v3.24.3
Fair Value of Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of Balances and Levels of Assets Measured at Fair Value on Recurring Basis
The balances and levels of the assets and liabilities measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023 are presented in the following tables:
At September 30, 2024Quoted 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:     
AFS debt securities:    
U.S. government agency securities$— $516,833 $— $516,833 
Mortgage-backed securities - residential— 879,589 — 879,589 
Mortgage-backed securities - commercial— 16,289 — 16,289 
Municipal securities— 154,229 — 154,229 
Corporate securities— 982 — 982 
Total securities$— $1,567,922 $— $1,567,922 
Loans held for sale, at fair value$— $72,608 $— $72,608 
Mortgage servicing rights— — 157,097 157,097 
Derivatives— 26,123 — 26,123 
Financial Liabilities:
Derivatives— 26,490 — 26,490 
At December 31, 2023Quoted prices
in active
markets for
identical assets
(liabilities)
(level 1)
Significant
other
observable
inputs
(level 2)
Significant unobservable
inputs
(level 3)
Total
Recurring valuations:    
Financial assets:     
AFS debt securities:    
U.S. government agency securities$— $203,956 $— $203,956 
Mortgage-backed securities - residential— 896,971 — 896,971 
Mortgage-backed securities - commercial— 16,961 — 16,961 
Municipal securities — 242,263 — 242,263 
U.S. Treasury securities— 108,496 — 108,496 
Corporate securities— 3,326 — 3,326 
Total securities$— $1,471,973 $— $1,471,973 
Loans held for sale, at fair value$— $46,618 $— $46,618 
Mortgage servicing rights— — 164,249 164,249 
Derivatives— 34,738 — 34,738 
Financial Liabilities:
Derivatives— 38,215 — 38,215 
Schedule of Balances and Levels of Assets Measured at Fair Value on Non-recurring Basis
The balances and levels of the assets measured at fair value on a nonrecurring basis as of September 30, 2024 and December 31, 2023 are presented in the following tables: 
At September 30, 2024Quoted prices
in active
markets for
identical assets
(liabilities
(level 1)
Significant
other
observable
inputs
(level 2)
Significant unobservable
inputs
(level 3)
Total
Nonrecurring valuations:    
Financial assets:    
Other real estate owned$— $— $2,243 $2,243 
Collateral-dependent net loans held for
   investment:
Commercial and industrial— — 2,350 2,350 
Construction— — 6,958 6,958 
Total collateral-dependent loans$— $— $9,308 $9,308 
 
At December 31, 2023Quoted prices
in active
markets for
identical assets
(liabilities)
(level 1)
Significant
other
observable
inputs
(level 2)
Significant unobservable
inputs
(level 3)
Total
Nonrecurring valuations:    
Financial assets:    
Other real estate owned$— $— $2,400 $2,400 
Collateral-dependent net loans held for
    investment:
Commercial and industrial$— $— $12,338 $12,338 
Construction— — 203 203 
Residential real estate:
1-4 family mortgage— — 429 429 
Consumer and other— — 71 71 
Total collateral-dependent loans$— $— $13,041 $13,041 
The following table sets forth the changes in fair value associated with this portfolio for the three and nine months ended September 30, 2023:
Three Months Ended September 30, 2023
Principal balanceFair Value discountFair Value
Carrying value at beginning of period$12,232 $(2,965)$9,267 
Change in fair value:
  Changes in valuation included in other noninterest income— (7)(7)
    Carrying value at end of period$12,232 $(2,972)$9,260 
Nine Months Ended September 30, 2023
Principal balanceFair Value discountFair Value
Carrying value at beginning of period$34,357 $(3,867)$30,490 
Change in fair value:
   Paydowns and payoffs(22,125)— (22,125)
   Changes in valuation included in other noninterest income— 895 895 
      Carrying value at end of period$12,232 $(2,972)$9,260 
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 September 30, 2024 and December 31, 2023 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis:
September 30, 2024
Financial instrumentFair ValueValuation techniqueSignificant 
unobservable inputs
Range of
inputs
Collateral-dependent net loans
   held for investment
$9,308 Valuation of collateralDiscount for comparable sales
10%-70%
Other real estate owned$2,243 Appraised value of property less costs to sellDiscount for costs to sell
0%-15%
December 31, 2023
Financial instrumentFair ValueValuation techniqueSignificant 
unobservable inputs
Range of
inputs
Collateral-dependent net loans
    held for investment
$13,041 Valuation of collateralDiscount for comparable sales
10%-61%
Other real estate owned$2,400 Appraised value of property less costs to sellDiscount 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 as of the dates presented:
September 30,December 31,
20242023
Loans held for sale under a fair value option:
  Mortgage loans held for sale72,608 46,618 
Loans held for sale not accounted for under a fair value option:
  Mortgage loans held for sale - guaranteed GNMA repurchase option30,537 21,229 
               Total loans held for sale$103,145 $67,847 
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 mortgage loans held for sale measured at fair value as of September 30, 2024 and December 31, 2023: 
September 30,December 31,
20242023
Aggregate fair value$72,608 $46,618 
Aggregate unpaid principal balance71,184 45,509 
     Difference$1,424 $1,109 
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. Non-financial instruments are excluded from the table below.
 
 Fair Value
September 30, 2024Carrying amount Level 1Level 2Level 3Total
Financial assets:     
Cash and cash equivalents$951,750 $951,750 $— $— $951,750 
Investment securities1,567,922 — 1,567,922 — 1,567,922 
Net loans held for investment9,321,869 — — 9,053,392 9,053,392 
Loans held for sale, at fair value72,608 — 72,608 — 72,608 
Interest receivable52,228 1,304 7,421 43,503 52,228 
Mortgage servicing rights157,097 — — 157,097 157,097 
Derivatives26,123 — 26,123 — 26,123 
Financial liabilities: 
Deposits: 
Without stated maturities$9,078,893 $9,078,893 $— $— $9,078,893 
With stated maturities1,897,318 — 1,899,602 — 1,899,602 
Securities sold under agreements to
repurchase and federal funds purchased
19,708 19,708 — — 19,708 
Subordinated debt, net130,608 — — 125,625 125,625 
Interest payable20,581 4,052 16,154 375 20,581 
Derivatives26,490 — 26,490 — 26,490 
 
 Fair Value
December 31, 2023Carrying amount Level 1Level 2Level 3Total
Financial assets:     
Cash and cash equivalents$810,932 $810,932 $— $— $810,932 
Investment securities1,471,973 — 1,471,973 — 1,471,973 
Net loans held for investment9,258,457 — — 9,068,518 9,068,518 
Loans held for sale, at fair value46,618 — 46,618 — 46,618 
Interest receivable52,715 388 8,551 43,776 52,715 
Mortgage servicing rights164,249 — — 164,249 164,249 
Derivatives34,738 — 34,738 — 34,738 
Financial liabilities: 
Deposits: 
Without stated maturities$8,927,654 $8,927,654 $— $— $8,927,654 
With stated maturities1,620,633 — 1,614,400 — 1,614,400 
Securities sold under agreements to
repurchase and federal funds purchased
108,764 108,764 — — 108,764 
Bank Term Funding Program130,000 — 130,000 — 130,000 
Subordinated debt, net129,645 — — 122,671 122,671 
Interest payable18,809 4,104 13,205 1,500 18,809 
Derivatives38,215 — 38,215 — 38,215