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Fair Value (Tables)
9 Months Ended
Sep. 30, 2023
Schedule of recorded amount of assets and liabilities measured at fair value on a recurring basis

 

    

    

Quoted Prices

    

    

In Active

Significant

Markets

Other

Significant

for Identical

Observable

Unobservable

Assets

Inputs

Inputs

(Dollars in thousands)

Fair Value

(Level 1)

(Level 2)

(Level 3)

September 30, 2023:

Assets

Derivative financial instruments

$

212,345

$

$

212,345

$

Loans held for sale

 

27,443

 

 

27,443

 

Trading securities

 

114,154

 

 

114,154

 

Securities available for sale:

U.S. Treasuries

172,259

172,259

U.S. Government agencies

216,754

216,754

Residential mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

1,488,706

1,488,706

Residential collateralized mortgage-obligations issued by U.S. government

agencies or sponsored enterprises

519,427

519,427

Commercial mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

949,532

949,532

State and municipal obligations

 

873,007

 

 

873,007

 

Small Business Administration loan-backed securities

 

377,470

 

 

377,470

 

Corporate securities

26,463

26,463

Total securities available for sale

 

4,623,618

 

 

4,623,618

 

Mortgage servicing rights

 

89,476

 

 

 

89,476

SBA servicing asset

5,654

5,654

$

5,072,690

$

$

4,977,560

$

95,130

Liabilities

Derivative financial instruments

$

1,251,878

$

$

1,251,878

$

December 31, 2022:

Assets

Derivative financial instruments

$

211,016

$

$

211,016

$

Loans held for sale

 

28,968

 

 

28,968

 

Trading securities

 

31,263

 

 

31,263

 

Securities available for sale:

U.S. Treasuries

265,638

265,638

U.S. Government agencies

219,088

219,088

Residential mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

1,698,353

1,698,353

Residential collateralized mortgage-obligations issued by U.S. government

agencies or sponsored enterprises

601,045

601,045

Commercial mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

1,000,398

1,000,398

State and municipal obligations

 

1,064,852

 

 

1,064,852

 

Small Business Administration loan-backed securities

 

444,810

 

 

444,810

 

Corporate securities

 

32,638

 

 

32,638

 

Total securities available for sale

 

5,326,822

 

 

5,326,822

 

Mortgage servicing rights

 

86,610

 

 

 

86,610

SBA servicing asset

6,068

6,068

$

5,690,747

$

$

5,598,069

$

92,678

Liabilities

Derivative financial instruments

$

1,034,143

$

$

1,034,143

$

Schedule of mortgage loans held for sale

    

September 30,

December 31,

(Dollars in thousands)

    

2023

 

2022

Fair value

$

27,443

$

28,968

Unpaid principal balance

26,921

27,937

Fair value less aggregated unpaid principal balance

$

522

$

1,031

Three Months Ended September 30,

Nine Months Ended September 30,

(Dollars in thousands)

2023

2022

    

2023

2022

Income Statement Location

Mortgage loans held for sale

$

(574)

$

(2,149)

$

(508)

$

(7,604)

Mortgage banking income

Schedule of amounts of assets and liabilities measured at fair value on a nonrecurring basis

    

    

Quoted Prices

    

    

 

In Active

Significant

 

Markets

Other

Significant

 

for Identical

Observable

Unobservable

 

Assets

Inputs

Inputs

 

(Dollars in thousands)

Fair Value

(Level 1)

(Level 2)

(Level 3)

 

September 30, 2023:

OREO

$

434

$

$

$

434

Bank properties held for sale

15,251

 

15,251

Individually evaluated loans

 

76,890

 

 

 

76,890

December 31, 2022:

OREO

$

1,023

$

$

$

1,023

Bank properties held for sale

17,754

 

17,754

Individually evaluated loans

 

20,802

 

 

 

20,802

Schedule of quantitative information about level 3 fair value measurements

Weighted Average Discount

September 30,

December 31,

    

Valuation Technique

    

Unobservable Input

    

2023

    

2022

Nonrecurring measurements:

Individually evaluated loans

 

Discounted appraisals and discounted cash flows

 

Collateral discounts

26

%

31

%

OREO and Bank properties held for sale

 

Discounted appraisals

 

Collateral discounts and estimated costs to sell

22

%

16

%

Schedule of estimated fair value, and related carrying amount, of the Company's financial instruments

    

Carrying

    

Fair

    

    

    

 

(Dollars in thousands)

Amount

Value

Level 1

Level 2

Level 3

 

September 30, 2023

Financial assets:

Cash and cash equivalents

$

1,329,137

$

1,329,137

$

1,329,137

$

$

Trading securities

114,154

114,154

114,154

Investment securities

 

7,344,483

 

6,823,170

 

187,152

 

6,636,018

 

Loans held for sale

27,443

27,443

27,443

Loans, net of allowance for credit losses

 

31,568,716

 

29,773,087

 

 

 

29,773,087

Accrued interest receivable

 

151,259

 

151,259

 

 

26,561

 

124,698

Mortgage servicing rights

 

89,476

 

89,476

 

 

 

89,476

SBA servicing asset

5,654

5,654

5,654

Interest rate swap – non-designated hedge

 

211,109

 

211,109

 

 

211,109

 

Other derivative financial instruments (mortgage banking related)

 

1,236

 

1,236

 

 

1,236

 

Financial liabilities:

Deposits

 

Noninterest-bearing

11,158,431

 

11,158,431

 

 

11,158,431

 

Interest-bearing other than time deposits

21,322,840

21,322,840

21,322,840

Time deposits

4,453,927

4,391,875

4,391,875

Federal funds purchased and securities sold under agreements to repurchase

 

513,304

 

513,304

 

 

513,304

 

Corporate and subordinated debentures

391,997

376,373

 

376,373

 

Other borrowings

 

 

 

 

 

Accrued interest payable

 

45,163

 

45,163

 

 

45,163

 

Interest rate swap – non-designated hedge

 

1,251,059

 

1,251,059

 

 

1,251,059

 

Other derivative financial instruments (mortgage banking related)

 

819

 

819

 

 

819

 

Off balance sheet financial instruments:

Commitments to extend credit

 

 

(604,493)

 

 

(604,493)

 

December 31, 2022

Financial assets:

Cash and cash equivalents

$

1,312,563

$

1,312,563

$

1,312,563

$

$

Trading securities

31,263

31,263

31,263

Investment securities

 

8,189,780

 

7,756,707

 

179,717

 

7,576,990

 

Loans held for sale

28,968

28,968

28,968

Loans, net of allowance for credit losses

 

29,821,418

 

29,329,499

 

 

 

29,329,499

Accrued interest receivable

 

134,594

 

134,594

 

 

28,449

 

106,145

Mortgage servicing rights

 

86,610

 

86,610

 

 

 

86,610

SBA servicing asset

6,068

6,068

Interest rate swap – non-designated hedge

 

210,216

 

210,216

 

 

210,216

 

Other derivative financial instruments (mortgage banking related)

 

800

 

800

 

 

800

 

Financial liabilities:

Deposits

 

Noninterest-bearing

13,168,656

 

13,168,656

 

 

13,168,656

 

Interest-bearing other than time deposits

20,761,981

20,761,981

20,761,981

Time deposits

2,419,986

2,333,764

2,333,764

Federal funds purchased and securities sold under agreements to repurchase

 

556,417

 

556,417

 

 

556,417

 

Corporate and subordinated debentures

 

392,275

 

377,360

 

 

377,360

 

Accrued interest payable

 

6,218

 

6,218

 

 

3,345

 

Interest rate swap – non-designated hedge

 

1,033,980

 

1,033,980

 

 

1,033,980

 

Other derivative financial instruments (mortgage banking related)

163

163

 

 

163

 

Off balance sheet financial instruments:

 

 

Commitments to extend credit

 

(184,801)

 

 

(184,801)

 

Mortgage Servicing Rights  
Schedule of reconciliation of the beginning and ending balances of Level 3 assets, comprised of Mortgage Servicing Rights, SBA servicing asset and liabilities recorded at fair value on a recurring basis

(Dollars in thousands)

    

MSRs

 

Fair value, January 1, 2023

$

86,610

Servicing assets that resulted from transfers of financial assets

 

6,752

Changes in fair value due to valuation inputs or assumptions

 

2,450

Changes in fair value due to decay

 

(6,336)

Fair value, September 30, 2023

$

89,476

SBA servicing asset  
Schedule of reconciliation of the beginning and ending balances of Level 3 assets, comprised of Mortgage Servicing Rights, SBA servicing asset and liabilities recorded at fair value on a recurring basis

(Dollars in thousands)

    

SBA Servicing Asset

 

Fair value, January 1, 2023

$

6,068

Servicing assets that resulted from transfers of financial assets

1,103

Changes in fair value due to decay

(1,951)

Changes in fair value due to valuation inputs or assumptions

434

Fair value, September 30, 2023

$

5,654