Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present for each of the fair value hierarchy levels the Company’s financial assets and liabilities that are measured at fair value on a recurring basis in the consolidated balance sheets at March 31, 2022 and December 31, 2021:

	March 31, 2022
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Available for sale debt securities:
U.S. Treasury and government agency securities	$	—	$	9,631	$	—	$	9,631
Municipal obligations		—		215,634		—		215,634
Corporate debt securities		—		20,927		—		20,927
Residential mortgage-backed securities		—		2,761,422		—		2,761,422
Commercial mortgage-backed securities		—		2,894,173		—		2,894,173
Collateralized mortgage obligations		—		91,220		—		91,220
Total available for sale securities		—		5,993,007		—		5,993,007
Mortgage loans held for sale		—		25,046		—		25,046
Derivative assets (1)		—		59,658		—		59,658
Total recurring fair value measurements - assets	$	—	$	6,077,711	$	—	$	6,077,711
Liabilities
Derivative liabilities (1)	$	—	$	74,741	$	3,516	$	78,257
Total recurring fair value measurements - liabilities	$	—	$	74,741	$	3,516	$	78,257

	December 31, 2021
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Available for sale debt securities:
U.S. Treasury and government agency securities	$	—	$	419,298	$	—	$	419,298
Municipal obligations		—		314,158		—		314,158
Corporate debt securities		—		18,702		—		18,702
Residential mortgage-backed securities		—		3,035,798		—		3,035,798
Commercial mortgage-backed securities		—		3,077,859		—		3,077,859
Collateralized mortgage obligations		—		120,883		—		120,883
Total available for sale securities		—		6,986,698		—		6,986,698
Mortgage loans held for sale				41,022				41,022
Derivative assets (1)		—		75,867		—		75,867
Total recurring fair value measurements - assets	$	—	$	7,103,587	$	—	$	7,103,587
Liabilities
Derivative liabilities (1)	$	—	$	30,930	$	4,116	$	35,046
Total recurring fair value measurements - liabilities	$	—	$	30,930	$	4,116	$	35,046

(1)For further disaggregation of derivative assets and liabilities, see Note 5 - Derivatives.

Consolidated Balance Sheets for Financial Instruments of Material Nature Measured at Fair Value on Recurring Basis

The table below presents a rollforward of the amounts on the consolidated balance sheets for the three months ended March 31, 2022 and the year ended December 31, 2021 for financial instruments of a material nature that are classified within Level 3 of the fair value hierarchy and are measured at fair value on a recurring basis:

(in thousands)
Balance at December 31, 2020	$	5,645
Cash settlement		(1,767	)
Losses included in earnings		238
Balance at December 31, 2021		4,116
Cash settlement		(634	)
Losses included in earnings		34
Balance at March 31, 2022	$	3,516

Overview of the Valuation Techniques and Significant Unobservable Inputs

The table below provides an overview of the valuation techniques and significant unobservable inputs used in those techniques to measure the financial instrument measured on a recurring basis and classified within Level 3 of the valuation. The range of sensitivities that management utilized in its fair value calculations is deemed acceptable in the industry with respect to the identified financial instrument.

($ in thousands)
	Fair Value
Level 3 Class	March 31, 2022		December 31, 2021
Derivative liability	$	3,516	$	4,116
Valuation technique	Discounted cash flow		Discounted cash flow
Unobservable inputs:
Visa Class A appreciation - range	6%-12%		6%-12%
Visa Class A appreciation - weighted average	9%		9%
Conversion rate - range	1.62x-1.60x		1.62x-1.60x
Conversion rate -weighted average	1.6091x		1.6091x
Time until resolution	3-21 months		3-24 months

Financial Assets Measured at Fair Value on Nonrecurring Basis

The following tables present the Company’s financial assets that are measured at fair value on a nonrecurring basis for each of the fair value hierarchy levels.

	March 31, 2022
(in thousands)	Level 1		Level 2		Level 3		Total
Collateral-dependent loans individually evaluated for credit loss	$	—	$	4,861	$	—	$	4,861
Other real estate owned and foreclosed assets, net		—		—		6,345		6,345
Total nonrecurring fair value measurements	$	—	$	4,861	$	6,345	$	11,206

	December 31, 2021
(in thousands)	Level 1		Level 2		Level 3		Total
Collateral-dependent loans individually evaluated for credit loss	$	—	$	13,253	$	—	$	13,253
Other real estate owned and foreclosed assets, net		—		—		7,533		7,533
Total nonrecurring fair value measurements	$	—	$	13,253	$	7,533	$	20,786

Estimated Fair Values of Financial Instruments

The following tables present the estimated fair values of the Company’s financial instruments by fair value hierarchy levels and the corresponding carrying amounts:

	March 31, 2022
							Total Fair		Carrying
(in thousands)	Level 1		Level 2		Level 3		Value		Amount
Financial assets:
Cash, interest-bearing bank deposits, and federal funds sold	$	3,836,431	$	—	$	—	$	3,836,431	$	3,836,431
Available for sale securities		—		5,993,007		—		5,993,007		5,993,007
Held to maturity securities		—		2,429,049		—		2,429,049		2,488,088
Loans, net		—		4,861		20,501,931		20,506,792		21,005,498
Loans held for sale		—		59,877		—		59,877		59,877
Derivative financial instruments		—		59,658		—		59,658		59,658
Financial liabilities:
Deposits	$	—	$	—	$	30,454,443	$	30,454,443	$	30,499,709
Federal funds purchased		2,350		—		—		2,350		2,350
Securities sold under agreements to repurchase		517,952		—		—		517,952		517,952
FHLB short-term borrowings		—		1,105,633		—		1,105,633		1,100,000
Long-term debt		—		231,781		—		231,781		240,454
Derivative financial instruments		—		74,741		3,516		78,257		78,257

	December 31, 2021
(in thousands)	Level 1		Level 2		Level 3		Total Fair Value		Carrying Amount
Financial assets:
Cash, interest-bearing bank deposits, and federal funds sold	$	4,231,836	$	—	$	—	$	4,231,836	$	4,231,836
Available for sale securities		—		6,986,698		—		6,986,698		6,986,698
Held to maturity securities		—		1,631,482		—		1,631,482		1,565,751
Loans, net		—		13,253		20,720,568		20,733,821		20,792,217
Loans held for sale		—		93,069		—		93,069		93,069
Derivative financial instruments		—		75,867		—		75,867		75,867
Financial liabilities:
Deposits	$	—	$	—	$	30,432,646	$	30,432,646	$	30,465,897
Federal funds purchased		1,850		—		—		1,850		1,850
Securities sold under agreements to repurchase		563,211		—		—		563,211		563,211
FHLB short-term borrowings		—		1,119,026		—		1,119,026		1,100,000
Long-term debt		—		253,677		—		253,677		244,220
Derivative financial instruments		—		30,930		4,116		35,046		35,046