XML 38 R25.htm IDEA: XBRL DOCUMENT v3.23.1
FAIR VALUE MEASURES (Tables)
 3 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
Loans Held For Sale Fair Value
The Company's loans held for sale under the fair value option are comprised of the following:

(dollars in thousands)March 31, 2023December 31, 2022
Mortgage loans held for sale$390,201 $390,583 
SBA loans held for sale4,895 1,495 
Total loans held for sale$395,096 $392,078 
Difference Between Fair Value and Principal Balance for Mortgage Loans Held for Sale Measured at Fair Value
The following table summarizes the difference between the fair value and the principal balance for mortgage loans held for sale measured at fair value as of March 31, 2023 and December 31, 2022:

(dollars in thousands) 
March 31, 2023December 31, 2022
Aggregate fair value of mortgage loans held for sale$390,201 $390,583 
Aggregate unpaid principal balance of mortgage loans held for sale383,629 389,610 
Past-due loans of 90 days or more624 — 
Nonaccrual loans624 — 
Unpaid principal balance of nonaccrual loans608 — 

The following table summarizes the difference between the fair value and the principal balance for SBA loans held for sale measured at fair value as of March 31, 2023 and December 31, 2022:

(dollars in thousands) 
March 31, 2023December 31, 2022
Aggregate fair value of SBA loans held for sale$4,895 $1,495 
Aggregate unpaid principal balance of SBA loans held for sale4,779 1,350 
Past-due loans of 90 days or more— — 
Nonaccrual loans— — 
Fair Value Measurements of Assets and Liabilities Measured on Recurring Basis
The following table presents the fair value measurements of assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall as of March 31, 2023 and December 31, 2022:

Recurring Basis
Fair Value Measurements
 March 31, 2023
(dollars in thousands) 
Fair ValueLevel 1Level 2Level 3
Financial assets:    
Investment securities available-for-sale:
U.S. Treasuries$766,129 $766,129 $— $— 
U.S. government sponsored agencies987 — 987 — 
State, county and municipal securities33,213 — 33,213 — 
Corporate debt securities15,610 — 14,710 900 
SBA pool securities25,342 — 25,342 — 
Mortgage-backed securities655,555 — 655,555 — 
Loans held for sale395,096 — 395,096 — 
Derivative financial instruments4,109 — 4,109 — 
Mortgage banking derivative instruments6,447 — 6,447 — 
Total recurring assets at fair value$1,902,488 $766,129 $1,135,459 $900 
Financial liabilities:    
Derivative financial instruments$4,429 $— $4,429 $— 
Mortgage banking derivative instruments5,377 — 5,377 — 
Total recurring liabilities at fair value$9,806 $— $9,806 $— 

Recurring Basis
Fair Value Measurements
 December 31, 2022
(dollars in thousands)Fair ValueLevel 1Level 2Level 3
Financial assets:    
Investment securities available-for-sale:
U.S. Treasuries$759,534 $759,534 $— $— 
U.S. government sponsored agencies979 — 979 — 
State, county and municipal securities34,195 — 34,195 — 
Corporate debt securities15,926 — 14,771 1,155 
SBA pool securities27,398 — 27,398 — 
Mortgage-backed securities662,028 — 662,028 — 
Loans held for sale392,078 — 392,078 — 
Derivative financial instruments4,580 — 4,580 — 
Mortgage banking derivative instruments3,933 — 3,933 — 
Total recurring assets at fair value$1,900,651 $759,534 $1,139,962 $1,155 
Financial liabilities:    
Derivative financial instruments$4,574 $— $4,574 $— 
Total recurring liabilities at fair value$4,574 $— $4,574 $— 
Summary of Fair Value Measurements of Assets Measured at Fair Value on Non-Recurring Basis
The following table presents the fair value measurements of assets measured at fair value on a non-recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy as of March 31, 2023 and December 31, 2022:

 Nonrecurring Basis
Fair Value Measurements
(dollars in thousands)Fair ValueLevel 1Level 2Level 3
March 31, 2023    
Collateral-dependent loans$48,202 $— $— $48,202 
Other real estate owned755 — — 755 
Total nonrecurring assets at fair value$48,957 $— $— $48,957 
December 31, 2022    
Collateral-dependent loans$31,972 $— $— $31,972 
Total nonrecurring assets at fair value$31,972 $— $— $31,972 
Summary of Significant Unobservable Inputs Used in Fair Value Measurement of Level 3 Assets and Liabilities
The following table shows significant unobservable inputs used in the fair value measurement of Level 3 assets:

(dollars in thousands)Fair ValueValuation
Technique		Unobservable InputsRange of
Discounts		Weighted
Average
Discount
March 31, 2023     
Recurring:     
Debt securities available-for-sale$900 Discounted cash flowsProbability of Default12.8%12.8%
Loss Given Default43%43%
Nonrecurring:     
Collateral-dependent loans$48,202 Third-party appraisals and discounted cash flowsCollateral discounts and
discount rates
0% - 50%
21%
Other real estate owned$755 Third-party appraisals and sales contractsCollateral discounts and estimated
costs to sell
25% - 40%
29%
December 31, 2022     
Recurring:     
Debt securities available-for-sale$1,155 Discounted cash flowsProbability of Default12.1%12.1%
Loss Given Default41%41%
Nonrecurring:   
Collateral-dependent loans$31,972 Third-party appraisals and discounted cash flowsCollateral discounts and
discount rates
0% - 48%
27%
Carrying Amount and Estimated Fair Value of Financial Instruments
The carrying amount and estimated fair value of the Company’s financial instruments, not shown elsewhere in these financial statements, were as follows:

Fair Value Measurements
  March 31, 2023
(dollars in thousands)Carrying
Amount		Level 1Level 2Level 3Total
Financial assets:     
Cash and due from banks$266,400 $266,400 $— $— $266,400 
Federal funds sold and interest-bearing accounts1,754,453 1,754,453 — — 1,754,453 
Debt securities held-to-maturity134,175 — 116,093 — 116,093 
Loans, net19,707,011 — — 19,076,408 19,076,408 
Accrued interest receivable74,698 — 6,736 67,962 74,698 
Financial liabilities:     
Deposits19,897,455 — 19,855,914 — 19,855,914 
Other borrowings2,401,327 — 2,371,530 — 2,371,530 
Subordinated deferrable interest debentures128,820 — 124,309 — 124,309 
Accrued interest payable18,005 — 18,005 — 18,005 

Fair Value Measurements
  December 31, 2022
(dollars in thousands)Carrying
Amount		Level 1Level 2Level 3Total
Financial assets:     
Cash and due from banks$284,567 $284,567 $— $— $284,567 
Federal funds sold and interest-bearing accounts833,565 833,565 — — 833,565 
Debt securities held-to-maturity134,864 — 114,538 114,538 
Loans, net19,617,604 — — 19,067,612 19,067,612 
Accrued interest receivable77,042 — 7,694 69,348 77,042 
Financial liabilities:     
Deposits19,462,738 — 19,455,187 — 19,455,187 
Other borrowings1,875,736 — 1,861,850 — 1,861,850 
Subordinated deferrable interest debentures128,322 — 125,988 — 125,988 
Accrued interest payable10,530 — 10,530 — 10,530