Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2021

Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes the Company’s

available-for-sale

securities, loans

held-for-sale,

and derivatives which are measured at fair value on a recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):

March 31, 2021


	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
Obligations of states and political subdivisions	$	—	$	2,517,017	$	—	$	2,517,017
Corporate bonds		—		32,490		—		32,490
Residential mortgage-backed securities		—		2,108,594		—		2,108,594
Commercial mortgage-backed securities		—		447,053		—		447,053
Other securities		4,477		—		—		4,477

Total	$	4,477	$	5,105,154	$	—	$	5,109,631

Loans held-for-sale	$	—	$	61,511	$	—	$	61,511

IRLCs	$	—	$	1,645	$	—	$	1,645

Forward mortgage-backed securities trades asset	$	—	$	2,806	$	—	$	2,806

March 31, 2020


	Level 1 Inputs		Level 2 Inputs			Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury securities	$	10,113	$	—		$	—	$	10,113
Obligations of states and political subdivisions		—		1,807,671			—		1,807,671
Corporate bonds		—		220			—		220
Residential mortgage-backed securities		—		1,679,980			—		1,679,980
Commercial mortgage-backed securities		—		604,554			—		604,554
Other securities		4,531		—			—		4,531

Total	$	14,644	$	4,092,425		$	—	$	4,107,069

Loans held-for-sale	$	—	$	39,659		$	—	$	39,659

IRLCs	$	—	$	296		$	—	$	296

Forward mortgage-backed securities trades liability	$	—	$	(3,200	)	$	—	$	(3,200	)

December 31, 2020


	Level 1 Inputs		Level 2 Inputs			Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
Obligations of state and political subdivisions	$	—	$	2,426,876		$	—	$	2,426,876
Residential mortgage-backed securities		—		1,472,280			—		1,472,280
Commercial mortgage-backed securities		—		489,316			—		489,316
Other securities		4,557		—			—		4,557

Total	$	4,557	$	4,388,472		$	—	$	4,393,029

Loans held-for-sale	$	—	$	79,585		$	—	$	79,585

IRLCs	$	—	$	4,618		$	—	$	4,618

Forward mortgage-backed securities trades liability	$	—	$	(1,560	)	$	—	$	(1,560	)

Summary of Loans Held-for-Sale at Fair Value

The following table summarizes the Company’s loans

held-for-sale

at fair value and the net unrealized gains as of the balance sheet dates shown below (in thousands):


	March 31,				December 31,
	2021		2020		2020
Unpaid principal balance on loans held-for-sale	$	60,727	$	38,563	$	76,602
Net unrealized gains on loans held-for-sale		784		1,096		2,983

Loans held-for-sale at fair value	$	61,511	$	39,659	$	79,585

Summary of Gain Loss on Sale of Mortgage Loans

The following table summarizes the Company’s gains on sale and fees of mortgage loans for the three-months ended March 31, 2021 and 2020 (in thousand):


	Three-Months ended March 31,
	2021			2020
Realized gain on sale and fees on mortgage loans*	$	10,728		$	4,545
Change in fair value on loans held-for-sale and IRLCs		(5,200	)		2,355
Change in forward mortgage-backed securities trades		4,366			(3,048	)

Total gain on sale of mortgage loans	$	9,894		$	3,852

*	This includes gains on loans held-for-sale carried under the fair value method and lower of cost or market.

Schedule of Estimated Fair Values and Carrying Values of All Financial Instruments

The estimated fair values and carrying values of all financial instruments under current authoritative guidance were as follows (in thousands).


	March 31,										December 31,
	2021				2020						2020
	Carrying		Estimated		Carrying			Estimated			Carrying			Estimated			Fair Value
	Value		Fair Value		Value			Fair Value			Value			Fair Value			Hierarchy
Cash and due from banks	$	190,350	$	190,350	$	191,486		$	191,486		$	211,113		$	211,113			Level 1
Interest-bearing demand deposits in banks		893,221		893,221		76,378			76,378			517,971			517,971			Level 1
Available-for-sale securities		5,109,631		5,109,631		4,107,069			4,107,069			4,393,029			4,393,029			Levels 1 and 2
Loans held-for-investment, net of allowance for credit losses		5,259,588		5,273,235		4,578,949			4,558,577			5,104,499			5,109,885			Level 3
Loans held-for-sale		65,405		65,273		42,034			41,593			83,969			84,233			Level 2
Accrued interest receivable		42,322		42,322		34,329			34,329			53,433			53,433			Level 2
Deposits with stated maturities		483,685		485,193		465,808			467,804			475,542			477,218			Level 2
Deposits with no stated maturities		8,929,762		8,929,762		6,744,658			6,744,658			8,200,275			8,200,275			Level 1
Borrowings		548,604		548,604		857,871			857,871			430,093			430,093			Level 2
Accrued interest payable		320		320		783			783			377			377			Level 2
IRLCs		1,645		1,645		296			296			4,618			4,618			Level 2
Forward mortgage-backed securi-ties trades asset (liability)		2,806		2,806		(3,200	)		(3,200	)		(1,560	)		(1,560	)		Level 2