Fair Value Measurements (Tables)

12 Months Ended

Dec. 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 December 31, 2022 and 2021:

	December 31, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets
Available for sale debt securities:
U.S. Treasury and government agency securities	$	—	$	110,865	$	—	$	110,865
Municipal obligations		—		203,092		—		203,092
Corporate debt securities		—		21,080		—		21,080
Residential mortgage-backed securities		—		2,256,986		—		2,256,986
Commercial mortgage-backed securities		—		2,893,430		—		2,893,430
Collateralized mortgage obligations		—		70,588		—		70,588
Total available for sale securities		—		5,556,041		—		5,556,041
Mortgage loans held for sale		—		10,843		—		10,843
Derivative assets (1)		—		109,497		—		109,497
Total recurring fair value measurements - assets	$	—	$	5,676,381	$	—	$	5,676,381
Liabilities
Derivative liabilities (1)	$	—	$	202,238	$	1,883	$	204,121
Total recurring fair value measurements - liabilities	$	—	$	202,238	$	1,883	$	204,121

(1) For further disaggregation of derivative assets and liabilities, see Note 11 – Derivatives.

	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 11 – 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 sheet for the years ended December 31, 2022 and 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		(2,429	)
Losses included in earnings		196
Balance at December 31, 2022	$	1,883

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.

Level 3 Class		December 31, 2022		December 31, 2021
Derivative liability	$	1,883	$	4,116
Valuation technique		Discounted cash flow		Discounted cash flow
Unobservable inputs:
Visa Class A appreciation - terminal range		6-12%		6%-12%
Visa Class A appreciation - at end of reporting period		9%		9%
Conversion rate - range		1.61x-1.60x		1.62x-1.60x
Conversion rate - at end of reporting period		1.6030x		1.6091x
Time until resolution		3-12 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:

	December 31, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Collateral dependent impaired loans	$	—	$	4,692	$	—	$	4,692
Other real estate owned and foreclosed assets		—		—		2,017		2,017
Total nonrecurring fair value measurements	$	—	$	4,692	$	2,017	$	6,709

	December 31, 2021
($ in thousands)	Level 1		Level 2		Level 3		Total
Collateral dependent impaired loans	$	—	$	13,253	$	—	$	13,253
Other real estate owned and foreclosed assets		—		—		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.

	December 31, 2022
							Total		Carrying
($ in thousands)	Level 1		Level 2		Level 3		Fair Value		Amount
Financial assets:
Cash, interest-bearing bank deposits, and federal funds sold	$	888,519	$	—	$	—	$	888,519	$	888,519
Available for sale securities		—		5,556,041		—		5,556,041		5,556,041
Held to maturity securities		—		2,615,398		—		2,615,398		2,852,495
Loans, net		—		4,692		22,132,683		22,137,375		22,806,257
Loans held for sale		—		26,385		—		26,385		26,385
Derivative financial instruments		—		109,497		—		109,497		109,497
Financial liabilities:
Deposits	$	—	$	—	$	29,041,635	$	29,041,635	$	29,070,349
Federal funds purchased		1,850		—		—		1,850		1,850
Securities sold under agreements to repurchase		444,421		—		—		444,421		444,421
Short-term FHLB Borrowings		1,425,000		—		—		1,425,000		1,425,000
Long-term debt		—		200,060		—		200,060		242,077
Derivative financial instruments		—		202,238		1,883		204,121		204,121

	December 31, 2021
							Total		Carrying
($ in thousands)	Level 1		Level 2		Level 3		Fair Value		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