Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of financial assets and financial liabilities measured at fair value on a recurring basis

The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2022, and December 31, 2021, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):


	As of September 30, 2022
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Debt securities available for sale:
U.S. Treasury securities	$	—	$	140,842	$	—	$	140,842
Obligations of U.S. government corporations and agencies	—		24,933		—		24,933
Obligations of states and political subdivisions	—		270,835		—		270,835
Asset-backed securities	—		466,524		—		466,524
Commercial mortgage-backed securities	—		87,751		—		87,751
Residential mortgage-backed securities	—		1,304,314		—		1,304,314
Corporate debt securities	—		251,842		—		251,842
Equity securities	—		11,341		—		11,341
Derivative assets	—		44,709		4		44,713
Derivative liabilities	—		76,589		—		76,589


	As of December 31, 2021
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Debt securities available for sale:
U.S. Treasury securities	$	—	$	165,762	$	—	$	165,762
Obligations of U.S. government corporations and agencies	—		38,470		—		38,470
Obligations of states and political subdivisions	—		306,869		—		306,869
Asset-backed securities	—		492,186		—		492,186
Commercial mortgage-backed securities	—		614,998		—		614,998
Residential mortgage-backed securities	—		2,069,313		—		2,069,313
Corporate debt securities	—		293,653		—		293,653
Equity securities	—		13,571		—		13,571
Loans held for sale	—		23,875		—		23,875
Derivative assets	—		20,314		—		20,314
Derivative liabilities	—		21,501		—		21,501

Schedule of assets and liabilities measured at fair value on a non-recurring basis

The following tables summarize assets and liabilities measured at fair value on a non-recurring basis for the periods presented, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):


	As of September 30, 2022
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Loans evaluated individually, net of related allowance	$	—	$	—	$	5,121	$	5,121
OREO with subsequent impairment	—		—		274		274
Bank property held for sale with impairment	—		—		7,923		7,923


	As of December 31, 2021
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Loans evaluated individually, net of related allowance	$	—	$	—	$	2,926	$	2,926
OREO with subsequent impairment	—		—		51		51
Bank property held for sale with impairment	—		—		10,103		10,103

Schedule of quantitative information about Level 3 fair value measurements

The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value (dollars in thousands):

As of September 30, 2022

Fair Value

Valuation
Techniques

Unobservable
Input

Range
(Weighted Average)

Loans evaluated individually, net of related allowance

5,121

Appraisal of collateral

Appraisal adjustments

-41.8% to -100.0%

(-48.5)%

OREO with subsequent impairment

274

Appraisal of collateral

Appraisal adjustments

-16.0% to -33.0%

(-19.8)%

Bank property held for sale with impairment

7,923

Appraisal of collateral or real estate listing price

Appraisal adjustments

-0.7% to -70.1%

(-35.1)%

As of December 31, 2021

Fair Value

Valuation

Techniques

Unobservable

Input

Range

(Weighted Average)

Loans evaluated individually, net of related allowance

2,926

Appraisal of collateral

Appraisal adjustments

-50.0% to -100.0%

(-55.1)%

OREO with subsequent impairment

Appraisal of collateral

Appraisal adjustments

-33.0% to -100.0%

(-67.9)%

Bank property held for sale with impairment

10,103

Appraisal of collateral or real estate listing price

Appraisal adjustments

-0.7% to -70.1%

(-41.3)%

Schedule of estimated fair values of financial instruments

Estimated fair values of financial instruments that are not carried at fair value in the Company’s unaudited Consolidated Balance Sheets, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value, were as follows (dollars in thousands):


	As of September 30, 2022				As of December 31, 2021
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Level 1 inputs:
Cash and cash equivalents	$	347,149	$	347,149	$	836,095	$	836,095
Level 2 inputs:
Debt securities held to maturity	936,328		808,885		—		—
Loans held for sale1	4,546		4,555		—		—
Accrued interest receivable	37,409		37,409		31,064		31,064
Level 3 inputs:
Portfolio loans, net	7,579,392		7,319,530		7,101,111		7,161,466
Mortgage servicing rights	6,564		18,815		8,608		12,133
Other servicing rights	1,862		2,253		1,830		2,268

Financial liabilities
Level 2 inputs:
Time deposits	$	800,187	$	775,441	$	935,649	$	935,778
Securities sold under agreements to repurchase	234,597		234,597		270,139		270,139
Short-term borrowings	16,225		16,255		17,678		17,673
Long-term debt	33,000		33,071		46,056		46,164
Junior subordinated debt owed to unconsolidated trusts	71,765		60,603		71,635		63,586
Accrued interest payable	5,075		5,075		2,728		2,728
Level 3 inputs:
Senior notes, net of unamortized issuance costs	—		—		39,944		40,400
Subordinated notes, net of unamortized issuance costs	221,835		209,000		182,773		195,600

1.Effective January 1, 2022, recorded at LOCOM.