Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present assets and liabilities measured at fair value on a recurring basis and reported on the consolidated balance sheets:


	June 30, 2023
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Loans held for sale	$	—	$	14,673	$	—	$	14,673
Available for sale investment securities:

U.S. Government securities	220,638		—		—		220,638
U.S. Government-sponsored agency securities	—		999		—		999
State and municipal securities	—		1,053,908		—		1,053,908
Corporate debt securities	—		424,379		—		424,379
Collateralized mortgage obligations	—		120,458		—		120,458
Residential mortgage-backed securities	—		204,888		—		204,888
Commercial mortgage-backed securities	—		547,451		—		547,451

Total available for sale investment securities	220,638		2,352,083		—		2,572,721
Other assets:
Investments held in Rabbi Trust	28,046		—		—		28,046
Derivative assets	547		174,079		—		174,626
Total assets	$	249,231	$	2,540,835	$	—	$	2,790,066
Other liabilities:
Deferred compensation liabilities	$	28,046	$	—	$	—	$	28,046
Derivative liabilities	275		291,224		—		291,499
Total liabilities	$	28,321	$	291,224	$	—	$	319,545


	December 31, 2022
	Level 1		Level 2		Level 3		Total
	(dollars in thousands)
Loans held for sale	$	—	$	7,264	$	—	$	7,264
Available for sale investment securities:

U.S. Government securities	218,485		—		—		218,485
U.S. Government sponsored agency securities	—		1,008		—		1,008
State and municipal securities	—		1,105,712		—		1,105,712
Corporate debt securities	—		422,309		—		422,309
Collateralized mortgage obligations	—		134,033		—		134,033
Residential mortgage-backed securities	—		212,698		—		212,698
Commercial mortgage-backed securities	—		552,522		—		552,522

Total available for sale investment securities	218,485		2,428,282		—		2,646,767
Other assets:
Investments held in Rabbi Trust	23,435		—		—		23,435
Derivative assets	672		166,796		—		167,468
Total assets	$	242,592	$	2,602,342	$	—	$	2,844,934
Other liabilities:
Deferred compensation liabilities	$	23,435	$	—	$	—	$	23,435
Derivative liabilities	584		296,465		—		297,049
Total liabilities	$	24,019	$	296,465	$	—	$	320,484

Schedule of Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis using Level 3 Inputs

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis

The following table presents Level 3 financial assets measured at fair value on a nonrecurring basis:


	June 30, 2023		December 31, 2022
	(dollars in thousands)
Loans, net	$	103,567	$	121,115
OREO	3,881		5,790
MSRs(1)	49,444		50,044
Total assets	$	156,892	$	176,949

(1) Amounts shown are estimated fair value. MSRs are recorded on the Corporation's consolidated balance sheets at the lower of amortized cost or fair value.

See "Note 6 - Mortgage Servicing Rights" for additional information.

Details of Book Value and Fair Value of Financial Instruments

The following tables detail the book values and the estimated fair values of the Corporation's financial instruments as of June 30, 2023 and December 31, 2022.


	June 30, 2023
			Estimated Fair Value
	Carrying Amount		Level 1		Level 2		Level 3		Total
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	504,702	$	504,702	$	—	$	—	$	504,702
FRB and FHLB stock	124,218		—		124,218		—		124,218

Loans held for sale	14,673		—		14,673		—		14,673
AFS securities	2,572,721		220,638		2,352,083		—		2,572,721
HTM securities	1,294,613		—		1,086,692		—		1,086,692
Loans, net	20,757,243		—		—		19,233,430		19,233,430
Accrued interest receivable	96,991		96,991		—		—		96,991
Other assets	675,328		447,924		174,079		53,325		675,328
FINANCIAL LIABILITIES
Demand and savings deposits	$	18,055,623	$	18,055,623	$	—	$	—	$	18,055,623
Brokered deposits	949,259		150,222		797,177		—		947,399
Time deposits	2,201,658		—		2,182,337		—		2,182,337
Accrued interest payable	24,101		24,101		—		—		24,101
Federal funds purchased	555,000		555,003		—		—		555,003
Federal Home Loan Bank advances	1,165,000		1,164,991		—		—		1,164,991
Senior debt and subordinated debt	539,994		—		461,365		—		461,365
Other borrowings	459,120		458,087		1,010		—		459,097
Other liabilities	454,641		146,849		291,224		16,568		454,641


	December 31, 2022
			Estimated Fair Value
	Carrying Amount		Level 1		Level 2		Level 3		Total
	(dollars in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	681,921	$	681,921	$	—	$	—	$	681,921
FRB and FHLB stock	130,186		—		130,186		—		130,186
Loans held for sale	7,264		—		7,264		—		7,264
AFS securities	2,646,767		218,485		2,428,282		—		2,646,767
HTM securities	1,321,256		—		1,125,049		—		1,125,049
Loans, net	20,010,181		—		—		18,862,701		18,862,701
Accrued interest receivable	91,579		91,579		—		—		91,579
Other assets	642,049		419,419		166,796		55,834		642,049
FINANCIAL LIABILITIES
Demand and savings deposits	$	18,851,912	$	18,851,912	$	—	$	—	$	18,851,912
Brokered deposits	208,416		188,416		25,085		—		213,501
Time deposits	1,589,210		—		1,574,747		—		1,574,747
Accrued interest payable	10,185		10,185		—		—		10,185
Federal funds purchased	191,000		190,998		—		—		190,998
Federal Home Loan Bank advances	1,250,000		1,249,629		—		—		1,249,629
Senior debt and subordinated debt	539,634		—		456,867		—		456,867
Other borrowings	890,573		889,393		1,180		—		890,573
Other liabilities	467,705		154,912		296,465		16,328		467,705