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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

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.

	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.

	December 31, 2020
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Available for sale debt securities:
U.S. Treasury and government agency securities	$	—	$	213,370	$	—	$	213,370
Municipal obligations		—		326,725		—		326,725
Corporate debt securities		—		11,764		—		11,764
Residential mortgage-backed securities		—		2,629,811		—		2,629,811
Commercial mortgage-backed securities		—		2,455,534		—		2,455,534
Collateralized mortgage obligations		—		362,123		—		362,123
Total available for sale securities		—		5,999,327		—		5,999,327
Derivative assets⁽¹⁾		—		150,180		—		150,180
Total recurring fair value measurements - assets	$	—	$	6,149,507	$	—	$	6,149,507
Liabilities
Derivative liabilities ⁽¹⁾	$	—	$	49,612	$	5,645	$	55,257
Total recurring fair value measurements - liabilities	$	—	$	49,612	$	5,645	$	55,257

(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, 2021 and 2020 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, 2019	$	5,704
Cash settlement		(1,656	)
Losses included in earnings		1,597
Balance at December 31, 2020		5,645
Cash settlement		(1,767	)
Losses included in earnings		238
Balance at December 31, 2021	$	4,116

Overview of the Valuation Techniques and Significant Unobservable Inputs

Level 3 Class		December 31, 2021			December 31, 2020
Derivative liability	$		4,116	$	5,645
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		1.62x-1.60x			1.62x-1.60x
Conversion rate - at end of reporting period		1.6091x			1.6114x
Time until resolution		3-24 months			3-36 months

Financial Assets Measured at Fair Value on Nonrecurring Basis

The following table presents 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, 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

	December 31, 2020
(in thousands)		Level 1			Level 2			Level 3			Total
Collateral dependent impaired loans	$		—	$		60,451	$		—	$		60,451
Other real estate owned and foreclosed assets			—			—			11,648			11,648
Total nonrecurring fair value measurements	$		—	$		60,451	$		11,648	$		72,099

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 amount at December 31, 2021 and 2020.

	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
Short-term FHLB 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

	December 31, 2020
							Total		Carrying
(in thousands)	Level 1		Level 2		Level 3		Fair Value		Amount
Financial assets:
Cash, interest-bearing bank deposits, and federal funds sold	$	1,860,092	$	—	$	—	$	1,860,092	$	1,860,092
Available for sale securities		—		5,999,327		—		5,999,327		5,999,327
Held to maturity securities		—		1,467,581		—		1,467,581		1,357,170
Loans, net		—		60,451		21,472,933		21,533,384		21,339,754
Loans held for sale		—		136,063		—		136,063		136,063
Derivative financial instruments		—		150,180		—		150,180		150,180
Financial liabilities:
Deposits	$	—	$	—	$	27,679,321	$	27,679,321	$	27,697,877
Federal funds purchased		300		—		—		300		300
Securities sold under agreements to repurchase		567,213		—		—		567,213		567,213
FHLB short-term borrowings		—		1,147,335		—		1,147,335		1,100,000
Long-term debt		—		404,880		—		404,880		378,322
Derivative financial instruments		—		49,612		5,645		55,257		55,257