Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Measurements

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 March 31, 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 March 31, 2022
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Debt securities available for sale:
U.S. Treasury securities	$	—	$	157,508	$	—	$	157,508
Obligations of U.S. government corporations and agencies		—		34,301		—		34,301
Obligations of states and political subdivisions		—		299,592		—		299,592
Asset-backed securities		—		488,604		—		488,604
Commercial mortgage-backed securities		—		107,502		—		107,502
Residential mortgage-backed securities		—		1,575,376		—		1,575,376
Corporate debt securities		—		283,172		—		283,172
Equity securities		5,948		13,572		—		19,520
Derivative assets		—		17,568		5		17,573
Derivative liabilities		—		25,384		—		25,384

	As of December 31, 2021
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		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 March 31, 2022
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Loans evaluated individually, net of related allowance	$	—	$	—	$	2,946	$	2,946
OREO with subsequent impairment		—		—		2,228		2,228
Bank property held for sale with impairment		—		—		9,551		9,551

	As of December 31, 2021
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		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):

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value		Valuation	Unobservable	Range
March 31, 2022:	Estimate		Techniques	Input	(Weighted Average)
Loans evaluated individually, net of related allowance	$	2,946	Appraisal of collateral	Appraisal adjustments	-50.0	%	to	-100.0	%	(-53.4)	%
OREO with subsequent impairment		2,228	Appraisal of collateral	Appraisal adjustments	-16.0	%	to	-100.0	%	(-24.4)	%
Bank property held for sale with impairment		9,551	Appraisal of collateral or real estate listing price	Appraisal adjustments	-0.7	%	to	-70.1	%	(-38.2)	%
December 31, 2021:
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		51	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

Financial Assets and Financial Liabilities That Are Not Carried at Fair Value

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 March 31, 2022				As of December 31, 2021
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets
Level 1 inputs:
Cash and cash equivalents	$	479,228	$	479,228	$	836,095	$	836,095
Level 2 inputs:
Debt securities held to maturity		976,081		942,846		—		—
Loans held for sale (1)		6,765		6,769		—		—
Accrued interest receivable		31,947		31,947		31,064		31,064
Level 3 inputs:
Portfolio loans, net		7,184,660		7,195,985		7,101,111		7,161,466
Mortgage servicing rights		8,085		15,499		8,608		12,133
Other servicing rights		1,712		2,093		1,830		2,268
Financial liabilities
Level 2 inputs:
Time deposits	$	890,830	$	882,358	$	935,649	$	935,778
Securities sold under agreements to repurchase		255,668		255,668		270,139		270,139
Short-term borrowings		17,683		17,745		17,678		17,673
Long-term debt		42,881		43,007		46,056		46,164
Junior subordinated debt owed to unconsolidated trusts		71,678		62,840		71,635		63,586
Accrued interest payable		5,116		5,116		2,728		2,728
Level 3 inputs:
Senior notes, net of unamortized issuance costs		39,978		40,000		39,944		40,400
Subordinated notes, net of unamortized issuance costs		182,910		188,437		182,773		195,600