Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments

In the normal course of business, we offer off-balance sheet credit arrangements to enable our customers to meet their financing objectives. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the financial statements. Our exposure to credit loss, in the event the customer does not satisfy the terms of the agreement, equals the contractual amount of the obligation less the value of any collateral. We apply the same credit policies in making commitments and standby letters of credit that are used for the underwriting of loans to customers. Commitments generally have fixed expiration dates, annual renewals or other termination clauses and may require payment of a fee. Because many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

Estimates of the fair value of these off-balance sheet items were not made because of the short-term nature of these arrangements and the credit standing of the counterparties.

The following table sets forth our commitments and letters of credit as of the dates presented:


	December 31,
(dollars in thousands)	2021		2020
Commitments to extend credit	$	2,583,957	$	2,185,752
Standby letters of credit	87,335		89,095
Total	$	2,671,292	$	2,274,847

Allowance for Credit Losses on Unfunded Loan Commitments

We maintain an ACL on unfunded commercial and consumer lending commitments and letters of credit to provide for the risk of loss in these arrangements.

The activity in the unfunded loan commitments reserve is summarized as of the dates presented:


(dollars in thousands)	December 31, 2021			December 31, 2020
Balance at beginning of period		$	4,467		$	3,112
Impact of adopting ASU 2016-13 at January 1, 2020		—			1,349
Balance after adoption of ASU 2016-13		4,467			4,461
Provision for credit losses		722			6
Total		$	5,189		$	4,467

Contractual Obligations

Contractual obligations represent future cash commitments and liabilities under agreements with third parties and exclude contingent contractual liabilities for which we cannot reasonably predict future payments. We have various financial obligations, including contractual obligations and commitments that may require future cash payments. The following table presents as of December 31, 2021 significant fixed and determinable contractual obligations to third parties by payment date:


	Payments Due In
(dollars in thousands)	2022		2023-2024		2025-2026		Later Years		Total
Deposits without a stated maturity(1)	$	6,908,453	$	—	$	—	$	—	$	6,908,453
Certificates of deposit(1)	961,578		62,334		60,820		3,339		1,088,071
Securities sold under repurchase agreements(1)	84,491		—		—		—		84,491
Short-term borrowings(1)	—		—		—		—		—
Long-term borrowings(1)	7,689		13,845		168		728		22,430
Junior subordinated debt securities(1)	—		—		—		54,393		54,393
Operating and capital leases	4,932		9,290		9,383		65,052		88,657
Purchase obligations	19,823		42,432		46,492		—		108,747
Total	$	7,986,966	$	127,901	$	116,863	$	123,512	$	8,355,242

(1)Excludes interest

Operating lease obligations represent short and long-term lease arrangements as described in Note 11 Premises and Equipment, to the Consolidated Financial Statements. Purchase obligations primarily represent obligations under agreement with our third party data processing servicer and communications charges.

Litigation

In the normal course of business, we are subject to various legal and administrative proceedings and claims. While any type of litigation contains a level of uncertainty, we believe that the outcome of such proceedings or claims pending will not have a material adverse effect on our consolidated financial position or results of operations.