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Fair Value (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured at Fair Value Recurring Basis

The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis at September 30, 2024 and December 31, 2023, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value ($ in thousands). There were no transfers between fair value levels for the nine months ended September 30, 2024 and the year ended December 31, 2023.


		September 30, 2024
		Total				Level 1				Level 2				Level 3
U.S. Treasury securities		$	202,638			$	202,638			$	—			$	—
U.S. Government agency obligations			19,335				—				19,335				—
Mortgage-backed securities			1,503,822				—				1,503,822				—
Securities available for sale			1,725,795				202,638				1,523,157				—
LHFS			216,454				—				216,454				—
MSR			125,853				—				—				125,853
Other assets			20,502				302				19,496				704
Other liabilities			28,306				336				27,970				—


		December 31, 2023
		Total				Level 1				Level 2				Level 3
U.S. Treasury securities		$	372,368			$	372,368			$	—			$	—
U.S. Government agency obligations			5,792				—				5,792				—
Mortgage-backed securities			1,384,718				—				1,384,718				—
Securities available for sale			1,762,878				372,368				1,390,510				—
LHFS			184,812				—				184,812				—
MSR			131,870				—				—				131,870
Other assets - derivatives			23,316				7,685				14,786				845
Other liabilities - derivatives			35,600				21				35,579				—

Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis

The changes in Level 3 assets measured at fair value on a recurring basis for the nine months ended September 30, 2024 and 2023 are summarized as follows ($ in thousands):


		MSR				Other Assets - Derivatives
Balance, January 1, 2024		$	131,870			$	845
Total net (loss) gain included in Mortgage banking, net (1)			(15,436	)			2,154
Additions			9,419				—
Sales			—				(2,295	)
Balance, September 30, 2024		$	125,853			$	704

The amount of total gains (losses) for the period included in earnings that are attributable to the change in unrealized gains or losses still held at September 30, 2024		$	(6,908	)		$	1,580

Balance, January 1, 2023		$	129,677			$	157
Total net (loss) gain included in Mortgage banking, net (1)			1,677				1,672
Additions			11,025				—
Sales			—				(1,632	)
Balance, September 30, 2023		$	142,379			$	197

The amount of total gains (losses) for the period included in earnings that are attributable to the change in unrealized gains or losses still held at September 30, 2023		$	8,734			$	559

(1)

Total net (loss) gain included in Mortgage banking, net relating to the MSR includes changes in fair value due to market changes and due to run-off.

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments at September 30, 2024 and December 31, 2023, are as follows ($ in thousands):


		September 30, 2024								December 31, 2023
		Carrying Value				Estimated Fair Value				Carrying Value				Estimated Fair Value
Financial Assets:
Level 2 Inputs:
Cash and short-term investments		$	815,436			$	815,436			$	975,343			$	975,343
Securities held to maturity			1,358,358				1,316,167				1,426,279				1,355,504
Level 3 Inputs:
Net LHFI			12,942,182				13,025,566				12,811,157				12,762,505

Financial Liabilities:
Level 2 Inputs:
Deposits			15,240,935				15,234,983				15,569,763				15,553,417
Federal funds purchased and securities sold under repurchase agreements			365,643				365,643				405,745				405,745
Other borrowings			443,458				443,458				483,230				483,226
Subordinated notes			123,647				119,063				123,482				108,125
Junior subordinated debt securities			61,856				48,248				61,856				48,856

Fair Value and the Contractual Principal Outstanding of the LHFS

The following table provides information about the fair value and the contractual principal outstanding of LHFS accounted for under the fair value option at September 30, 2024 and December 31, 2023 ($ in thousands):


		September 30, 2024				December 31, 2023
Fair value of LHFS		$	127,015			$	105,974
LHFS contractual principal outstanding			125,041				102,994
Fair value less unpaid principal		$	1,974			$	2,980

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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