Fair Value (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which we have elected the fair value option, are summarized below:


			Fair Value Measurements at June 30, 2023 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Equity securities	$	71,953	$	71,953	$	—	$	—
Investment securities available-for-sale:
U.S. Treasury	312,412		312,412		—		—
U.S. government-sponsored entities and agencies	1,174,356		—		1,174,356		—
Mortgage-backed securities - Agency	4,097,771		—		4,097,771		—
States and political subdivisions	598,782		—		598,782		—
Pooled trust preferred securities	10,994		—		10,994		—
Other securities	306,200		—		306,200		—
Loans held for sale	114,369		—		114,369		—
Derivative assets	184,324		—		184,324		—
Financial Liabilities
Derivative liabilities	340,399		—		340,399		—


			Fair Value Measurements at December 31, 2022 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Equity securities	$	52,507	$	52,507	$	—	$	—
Investment securities available-for-sale:
U.S. Treasury	200,927		200,927		—		—
U.S. government-sponsored entities and agencies	1,175,080		—		1,175,080		—
Mortgage-backed securities - Agency	4,369,902		—		4,369,902		—
States and political subdivisions	663,852		—		663,852		—
Pooled trust preferred securities	10,811		—		10,811		—
Other securities	353,140		—		353,140		—
Loans held for sale	11,926		—		11,926		—
Derivative assets	169,001		—		169,001		—
Financial Liabilities
Derivative liabilities	380,704		—		380,704		—

Schedule of Assets Measured at Fair Value on a Non-Recurring Basis

Assets measured at fair value at June 30, 2023 on a non-recurring basis are summarized below:


			Fair Value Measurements at June 30, 2023 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral Dependent Loans:
Commercial loans	$	12,615	$	—	$	—	$	12,615
Commercial real estate loans	85,891		—		—		85,891
Foreclosed Assets:
Commercial	1,560		—		—		1,560

Assets measured at fair value at December 31, 2022 on a non-recurring basis are summarized below:


			Fair Value Measurements at December 31, 2022 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Collateral Dependent Loans:
Commercial loans	$	22,562	$	—	$	—	$	22,562
Commercial real estate loans	48,026		—		—		48,026

Schedule of Quantitative Information about Significant Unobservable Inputs Used in Fair Value Measurements

The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy:

(dollars in thousands)

Fair Value

Valuation Techniques

Unobservable Input

Range (Weighted Average) (1)

June 30, 2023

Collateral Dependent Loans

Commercial loans

12,615

Discounted

Discount for type of property,

9% - 50% (35%)

cash flow

age of appraisal, and current status

Commercial real estate loans

85,891

Discounted

Discount for type of property,

0% - 45% (13%)

cash flow

age of appraisal, and current status

Foreclosed Assets

Commercial real estate

1,560

Fair value of

Discount for type of property,

4% - 17% (6%)

collateral

age of appraisal, and current status

December 31, 2022

Collateral Dependent Loans

Commercial loans

22,562

Discounted

Discount for type of property,

10% - 47% (28%)

cash flow

age of appraisal, and current status

Commercial real estate loans

48,026

Discounted

Discount for type of property,

1% - 26% (11%)

cash flow

age of appraisal, and current status

(1)Unobservable inputs were weighted by the relative fair value of the instruments.

Schedule of Difference Between the Aggregate Fair Value and the Aggregate Remaining Principal Balance

The difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected was as follows:


(dollars in thousands)	Aggregate Fair Value		Difference		Contractual Principal
June 30, 2023
Loans held for sale	$	114,369	$	387	$	113,982
December 31, 2022
Loans held for sale	$	11,926	$	221	$	11,705

The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value:


(dollars in thousands)	Other Gains and (Losses)		Interest Income		Interest (Expense)		Total Changes in Fair Values Included in Current Period Earnings
Three Months Ended June 30, 2023
Loans held for sale	$	229	$	—	$	(7)	$	222

Three Months Ended June 30, 2022
Loans held for sale	$	278	$	9	$	—	$	287

Six Months Ended June 30, 2023
Loans held for sale	$	176	$	—	$	(10)	$	166

Six Months Ended June 30, 2022
Loans held for sale	$	(1,065)	$	9	$	(3)	$	(1,059)

Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Carried at Fair Value

The carrying amounts and estimated exit price fair values of financial instruments not carried at fair value were as follows:


			Fair Value Measurements at June 30, 2023 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Cash, due from banks, money market, and other interest-earning investments	$	1,197,886	$	1,197,886	$	—	$	—
Investment securities held-to-maturity:
U.S. government-sponsored entities and agencies	822,517		—		655,446		—
Mortgage-backed securities - Agency	1,070,687		—		928,496		—
State and political subdivisions	1,161,793		—		1,019,116		—

Loans, net:
Commercial	9,569,141		—		—		9,330,160
Commercial real estate	13,312,233		—		—		12,907,098
Residential real estate	6,664,059		—		—		5,831,513
Consumer credit	2,586,485		—		—		2,537,633
Accrued interest receivable	205,198		801		54,449		149,948

Financial Liabilities
Deposits:
Noninterest-bearing demand deposits	$	10,532,838	$	10,532,838	$	—	$	—
Checking, NOW, savings, and money market interest-bearing deposits	20,432,813		20,432,813		—		—
Time deposits	5,265,664		—		5,209,887		—
Federal funds purchased and interbank borrowings	136,060		136,060		—		—
Securities sold under agreements to repurchase	311,447		311,447		—		—
FHLB advances	4,771,183		—		4,526,920		—
Other borrowings	815,318		—		781,468		—
Accrued interest payable	42,897		—		42,897		—
Standby letters of credit	949		—		—		949

Off-Balance Sheet Financial Instruments
Commitments to extend credit	$	—	$	—	$	—	$	3,621


			Fair Value Measurements at December 31, 2022 Using
(dollars in thousands)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Cash, due from banks, money market, and other interest-earning investments	$	728,412	$	728,412	$	—	$	—
Investment securities held-to-maturity:
U.S. government-sponsored entities and agencies	819,168		—		656,358		—
Mortgage-backed securities - Agency	1,106,817		—		982,963		—
State and political subdivisions	1,163,162		—		1,004,361		—
Loans, net:
Commercial	9,386,862		—		—		9,066,583
Commercial real estate	12,317,825		—		—		11,867,851
Residential real estate	6,438,525		—		—		5,372,491
Consumer credit	2,676,758		—		—		2,557,115
Accrued interest receivable	190,521		758		52,081		137,682

Financial Liabilities
Deposits:
Noninterest-bearing demand deposits	$	11,930,798	$	11,930,798	$	—	$	—
Checking, NOW, savings, and money market interest-bearing deposits	20,056,252		20,056,252		—		—
Time deposits	3,013,780		—		2,976,389		—
Federal funds purchased and interbank borrowings	581,489		581,489		—		—
Securities sold under agreements to repurchase	432,804		432,804		—		—
FHLB advances	3,829,018		—		3,739,780		—
Other borrowings	743,003		—		703,156		—
Accrued interest payable	19,547		—		19,547		—
Standby letters of credit	755		—		—		755

Off-Balance Sheet Financial Instruments
Commitments to extend credit	$	—	$	—	$	—	$	3,666