Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2024

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 on the consolidated balance sheets at December 31, 2024 and 2023:

	December 31, 2024
($ in thousands)	Level 1		Level 2		Level 3		Total
Assets
Available for sale debt securities:
U.S. Treasury and government agency securities	$	—	$	182,282	$	—	$	182,282
Municipal obligations		—		196,330		—		196,330
Corporate debt securities		—		17,616		—		17,616
Residential mortgage-backed securities		—		2,129,051		—		2,129,051
Commercial mortgage-backed securities		—		2,600,965		—		2,600,965
Collateralized mortgage obligations		—		35,247		—		35,247
Total available for sale securities		—		5,161,491		—		5,161,491
Mortgage loans held for sale		—		18,929		—		18,929
Derivative assets (1)		—		73,840		—		73,840
Total recurring fair value measurements - assets	$	—	$	5,254,260	$	—	$	5,254,260
Liabilities
Derivative liabilities (1)	$	—	$	158,534	$	2,089	$	160,623
Total recurring fair value measurements - liabilities	$	—	$	158,534	$	2,089	$	160,623

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

	December 31, 2023
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Available for sale debt securities:
U.S. Treasury and government agency securities	$	—	$	97,808	$	—	$	97,808
Municipal obligations		—		201,412		—		201,412
Corporate debt securities		—		20,352		—		20,352
Residential mortgage-backed securities		—		2,113,866		—		2,113,866
Commercial mortgage-backed securities		—		2,437,472		—		2,437,472
Collateralized mortgage obligations		—		44,285		—		44,285
Total available for sale securities		—		4,915,195		—		4,915,195
Mortgage loans held for sale		—		13,269		—		13,269
Derivative assets (1)		—		90,712		—		90,712
Total recurring fair value measurements - assets	$	—	$	5,019,176	$	—	$	5,019,176
Liabilities
Derivative liabilities (1)	$	—	$	205,796	$	1,342	$	207,138
Total recurring fair value measurements - liabilities	$	—	$	205,796	$	1,342	$	207,138

(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, 2024 and 2023 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, 2022	$	1,883
Cash settlement		(2,547	)
Losses included in earnings		2,006
Balance at December 31, 2023		1,342
Cash settlement		(1,442	)
Losses included in earnings		2,189
Balance at December 31, 2024	$	2,089

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. The assumptions reflected in the table below for December 31, 2024 were updated in consideration of the recent exchange offer from Visa.

Level 3 Class		December 31, 2024		December 31, 2023
Derivative liability	$	2,089	$	1,342
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		1.60x-1.56x		1.60x-1.59x
Conversion rate - at end of reporting period		1.5800x		1.5950x
Time until resolution		33-45 months		3-9 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, 2024
($ in thousands)	Level 1		Level 2		Level 3		Total
Collateral dependent individually evaluated loans	$	—	$	—	$	28,301	$	28,301
Other real estate owned and foreclosed assets		—		—		27,797		27,797
Total nonrecurring fair value measurements	$	—	$	—	$	56,098	$	56,098

	December 31, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total
Collateral dependent individually evaluated loans	$	—	$	15,882	$	—	$	15,882
Other real estate owned and foreclosed assets		—		—		3,628		3,628
Total nonrecurring fair value measurements	$	—	$	15,882	$	3,628	$	19,510

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, 2024
							Total		Carrying
($ in thousands)	Level 1		Level 2		Level 3		Fair Value		Amount
Financial assets:
Cash, interest-bearing bank deposits, and federal funds sold	$	1,514,216	$	409	$	—	$	1,514,625	$	1,514,625
Available for sale securities		—		5,161,491		—		5,161,491		5,161,491
Held to maturity securities		—		2,233,526		—		2,233,526		2,435,663
Loans, net		—		—		22,562,577		22,562,577		22,980,565
Loans held for sale		—		21,525		—		21,525		21,525
Derivative financial instruments		—		73,840		—		73,840		73,840
Financial liabilities:
Deposits	$	—	$	—	$	29,482,628	$	29,482,628	$	29,492,851
Federal funds purchased		—		300		—		300		300
Securities sold under agreements to repurchase		—		638,715		—		638,715		638,715
Long-term debt		—		174,660		—		174,660		210,544
Derivative financial instruments		—		158,534		2,089		160,623		160,623

	December 31, 2023
							Total		Carrying
($ in thousands)	Level 1		Level 2		Level 3		Fair Value		Amount
Financial assets:
Cash, interest-bearing bank deposits, and federal funds sold	$	1,188,284	$	—	$	—	$	1,188,284	$	1,188,284
Available for sale securities		—		4,915,195		—		4,915,195		4,915,195
Held to maturity securities		—		2,485,918		—		2,485,918		2,684,779
Loans, net		—		15,882		23,170,377		23,186,259		23,614,010
Loans held for sale		—		26,124		—		26,124		26,124
Derivative financial instruments		—		90,712		—		90,712		90,712
Financial liabilities:
Deposits	$	—	$	—	$	29,679,228	$	29,679,228	$	29,690,059
Federal funds purchased		350		—		—		350		350
Securities sold under agreements to repurchase		454,479		—		—		454,479		454,479
FHLB short-term borrowings		700,000		—		—		700,000		700,000
Long-term debt		—		196,182		—		196,182		236,317
Derivative financial instruments		—		205,796		1,342		207,138		207,138