Fair Value (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value

Schedule of assets and liabilities measured at fair value on a recurring basis

	Fair Value Measurements as of September 30, 2024
	Quoted Prices in		Significant
	Active Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
(dollars in thousands)	(Level 1)		Inputs (Level 2)		Inputs (Level 3)		Total
Assets
U.S. Treasury and government agency debt securities	$	—	$	13,197	$	—	$	13,197
Government-sponsored enterprises debt securities		—		19,847		—		19,847
Mortgage-backed securities:
Residential - Government agency(1)		—		9,367		—		9,367
Residential - Government-sponsored enterprises(1)		—		723,591		—		723,591
Commercial - Government agency		—		216,010		—		216,010
Commercial - Government-sponsored enterprises		—		69,067		—		69,067
Commercial - Non-agency		—		22,069		—		22,069
Collateralized mortgage obligations:
Government agency		—		434,141		—		434,141
Government-sponsored enterprises		—		339,726		—		339,726
Collateralized loan obligations		—		208,944		—		208,944
Total available-for-sale securities		—		2,055,959		—		2,055,959
Other assets(2)		109		16,120		—		16,229
Liabilities
Other liabilities(3)		—		(8,849)		(2,300)		(11,149)
Total	$	109	$	2,063,230	$	(2,300)	$	2,061,039

(1) Backed by residential real estate.

(2) Other assets classified as Level 1 include money market funds that have quoted prices in active markets and are related to the Company’s deferred compensation plans. Other assets classified as Level 2 include derivative assets.

(3) Other liabilities include derivative liabilities.

	Fair Value Measurements as of December 31, 2023
	Quoted Prices in		Significant
	Active Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
(dollars in thousands)	(Level 1)		Inputs (Level 2)		Inputs (Level 3)		Total
Assets
U.S. Treasury and government agency debt securities	$	—	$	32,503	$	—	$	32,503
Government-sponsored enterprises debt securities		—		19,592		—		19,592
Mortgage-backed securities:
Residential - Government agency(1)		—		10,182		—		10,182
Residential - Government-sponsored enterprises(1)		—		783,297		—		783,297
Commercial - Government agency		—		218,674		—		218,674
Commercial - Government-sponsored enterprises		—		86,431		—		86,431
Commercial - Non-agency		—		21,683		—		21,683
Collateralized mortgage obligations:
Government agency		—		471,150		—		471,150
Government-sponsored enterprises		—		363,970		—		363,970
Collateralized loan obligations		—		247,854		—		247,854
Total available-for-sale securities		—		2,255,336		—		2,255,336
Other assets(2)		517		12,768		—		13,285
Liabilities
Other liabilities(3)		—		(2,320)		(2,300)		(4,620)
Total	$	517	$	2,265,784	$	(2,300)	$	2,264,001

(1) Backed by residential real estate.

(2) Other assets classified as Level 1 include money market funds that have quoted prices in active markets and are related to the Company’s deferred compensation plans. Other assets classified as Level 2 include derivative assets.

(3) Other liabilities include derivative liabilities.

Significant unobservable inputs used in fair value measurements for Level 3 assets and liabilities measured at fair value on a recurring basis

	Quantitative Information about Level 3 Fair Value Measurements at September 30, 2024
				Significant
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	Range
Collateral-dependent loans	$	14,816	Financial Statement Values	Discounts to reflect estimated selling costs	0% - 50%
Visa derivative		(2,300)	Discounted Cash Flow	Expected Conversion Rate - 1.5430(1)	1.4444-1.5430
				Expected Term - 9 months(2)	n/m(2)
				Growth Rate - 7%(3)	-1% - 30%

	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2023
				Significant
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	Range
Visa derivative	$	(2,300)	Discounted Cash Flow	Expected Conversion Rate - 1.5875(1)	1.5289-1.5875
				Expected Term - 5 months(4)	n/m(4)
				Growth Rate - 10%(3)	-6% - 25%

(1) Due to the uncertainty in the movement of the conversion rate, the current conversion rate as of the respective consolidated balance sheet dates was utilized in the fair value calculation.

(2) The expected term was based on a February 2025 claim filing deadline and subsequent period for claims to be processed. As such, a range is not meaningful to disclose.

(3) The growth rate was based on the arithmetic average of analyst price targets.

(4) The expected term was based on a May 2024 claim filing deadline. As such, a range is not meaningful to disclose.

Summary of changes in Level 3 liabilities measured at fair value on a recurring basis

	Visa Derivative
(dollars in thousands)	2024		2023
Three Months Ended September 30,
Balance as of July 1,	$	(2,300)	$	(1,200)
Total net losses included in other noninterest income		(2,530)		(1,350)
Settlements		2,530		1,350
Balance as of September 30,	$	(2,300)	$	(1,200)
Total net losses included in net income attributable to the change in unrealized losses related to liabilities still held as of September 30,	$	(2,530)	$	(1,350)
Nine Months Ended September 30,
Balance as of January 1,	$	(2,300)	$	(851)
Total net losses included in other noninterest income		(5,360)		(5,129)
Settlements		5,360		4,780
Balance as of September 30,	$	(2,300)	$	(1,200)
Total net losses included in net income attributable to the change in unrealized losses related to liabilities still held as of September 30,	$	(5,360)	$	(5,129)

Summary of estimated fair value of financial instruments not required to be carried at fair value on a recurring basis

	September 30, 2024
			Fair Value Measurements
			Quoted Prices in		Significant		Significant
			Active Markets		Other		Unobservable
			for Identical		Observable		Inputs
(dollars in thousands)	Book Value		Assets (Level 1)		Inputs (Level 2)		(Level 3)		Total
Financial assets:
Cash and cash equivalents	$	1,072,812	$	252,209	$	820,603	$	—	$	1,072,812
Investment securities held-to-maturity		3,853,697		—		3,475,143		—		3,475,143
Loans(1)		13,808,542		—		—		13,293,256		13,293,256
Financial liabilities:
Time deposits(2)	$	3,402,264	$	—	$	3,388,783	$	—	$	3,388,783
Short-term borrowings		250,000		—		249,951		—		249,951
										(continued)

	December 31, 2023
			Fair Value Measurements
			Quoted Prices in		Significant		Significant
			Active Markets		Other		Unobservable
(continued)			for Identical		Observable		Inputs
(dollars in thousands)	Book Value		Assets (Level 1)		Inputs (Level 2)		(Level 3)		Total
Financial assets:
Cash and cash equivalents	$	1,739,897	$	185,015	$	1,554,882	$	—	$	1,739,897
Investment securities held-to-maturity		4,041,449		—		3,574,856		—		3,574,856
Loans held for sale		190		—		192		—		192
Loans(1)		13,973,688		—		—		13,385,683		13,385,683
Financial liabilities:
Time deposits(2)	$	3,456,158	$	—	$	3,432,330	$	—	$	3,432,330
Short-term borrowings		500,000		—		495,306		—		495,306

(1) Excludes financing leases of $432.8 million at September 30, 2024 and $379.8 million at December 31, 2023.

(2) Excludes deposit liabilities with no defined or contractual maturity of $16.8 billion as of September 30, 2024 and $17.9 billion as of December 31, 2023.

Schedule of assets with fair value adjustments on a nonrecurring basis

(dollars in thousands)	Level 1		Level 2		Level 3
September 30, 2024
Collateral-dependent loans	$	—	$	—	$	14,816