Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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 June 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 June 30, 2022
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Debt securities available for sale:
U.S. Treasury securities	$	—	$	147,140	$	—	$	147,140
Obligations of U.S. government corporations and agencies		—		29,839		—		29,839
Obligations of states and political subdivisions		—		287,612		—		287,612
Asset-backed securities		—		468,129		—		468,129
Commercial mortgage-backed securities		—		98,362		—		98,362
Residential mortgage-backed securities		—		1,441,157		—		1,441,157
Corporate debt securities		—		272,407		—		272,407
Equity securities		—		11,264		—		11,264
Derivative assets		—		25,126		3		25,129
Derivative liabilities		—		43,074		—		43,074

	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 June 30, 2022
	Level 1		Level 2		Level 3		Total
	Inputs		Inputs		Inputs		Fair Value
Loans evaluated individually, net of related allowance	$	—	$	—	$	5,366	$	5,366
OREO with subsequent impairment		—		—		274		274
Bank property held for sale with impairment		—		—		7,923		7,923

	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):

	As of June 30, 2022
	Fair Value		Valuation	Unobservable	Range
	Estimate		Techniques	Input	(Weighted Average)
Quantitative Information about Level 3 Fair Value Measurements
Loans evaluated individually, net of related allowance	$	5,366	Appraisal of collateral	Appraisal adjustments	-39.8	%	to	-100.0	%	(-47.5)	%
OREO with subsequent impairment		274	Appraisal of collateral	Appraisal adjustments	-16.0	%	to	-100.0	%	(-35.4)	%
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	Unobservable	Range
	Estimate		Techniques	Input	(Weighted Average)
Quantitative Information about Level 3 Fair Value Measurements
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

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 June 30, 2022				As of December 31, 2021
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial assets
Level 1 inputs:
Cash and cash equivalents	$	230,852	$	230,852	$	836,095	$	836,095
Level 2 inputs:
Debt securities held to maturity		953,012		876,738		—		—
Loans held for sale (1)		4,813		4,818		—		—
Accrued interest receivable		32,886		32,886		31,064		31,064
Level 3 inputs:
Portfolio loans, net		7,409,021		7,293,303		7,101,111		7,161,466
Mortgage servicing rights		7,282		17,967		8,608		12,133
Other servicing rights		1,829		2,235		1,830		2,268
Financial liabilities
Level 2 inputs:
Time deposits	$	817,821	$	800,416	$	935,649	$	935,778
Securities sold under agreements to repurchase		228,383		228,383		270,139		270,139
Short-term borrowings		16,396		16,480		17,678		17,673
Long-term debt		36,000		36,101		46,056		46,164
Junior subordinated debt owed to unconsolidated trusts		71,721		61,349		71,635		63,586
Accrued interest payable		1,978		1,978		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		281,304		280,275		182,773		195,600

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