Fair value of financial instruments (Tables)
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9 Months Ended |
Sep. 30, 2021 |
Fair Value Disclosures [Abstract] |
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Schedule of Estimated Fair Values and Carrying Values of Financial Instruments |
The following table contains the estimated fair values and the related carrying values of the Company's financial instruments. Items which are not financial instruments are not included. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value | September 30, 2021 | | Carrying amount | | Level 1 | | Level 2 | | Level 3 | | Total | Financial assets: | | | | | | | | | | | Cash and cash equivalents | | $ | 1,324,564 | | | $ | 1,324,564 | | | $ | — | | | $ | — | | | $ | 1,324,564 | | Investment securities | | 1,577,337 | | | — | | | 1,577,337 | | | — | | | 1,577,337 | | | | | | | | | | | | | Loans, net | | 7,155,228 | | | — | | | — | | | 7,255,887 | | | 7,255,887 | | Loans held for sale | | 855,706 | | | — | | | 755,210 | | | 100,496 | | | 855,706 | | Interest receivable | | 41,393 | | | 30 | | | 6,448 | | | 34,915 | | | 41,393 | | Mortgage servicing rights | | 110,591 | | | — | | | — | | | 110,591 | | | 110,591 | | Derivatives | | 38,786 | | | — | | | 38,786 | | | — | | | 38,786 | | Financial liabilities: | | | | | | | | | | | Deposits: | | | | | | | | | | | Without stated maturities | | $ | 8,884,429 | | | $ | 8,884,429 | | | $ | — | | | $ | — | | | $ | 8,884,429 | | With stated maturities | | 1,187,489 | | | — | | | 1,196,141 | | | — | | | 1,196,141 | | Securities sold under agreement to repurchase and federal funds sold | | 41,730 | | | 41,730 | | | — | | | — | | | 41,730 | | | | | | | | | | | | | Subordinated debt | | 129,448 | | | — | | | — | | | 134,668 | | | 134,668 | | Other borrowings | | 1,532 | | | — | | | 1,532 | | | — | | | 1,532 | | Interest payable | | 2,394 | | | 138 | | | 1,873 | | | 383 | | | 2,394 | | Derivatives | | 28,306 | | | — | | | 28,306 | | | — | | | 28,306 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value | December 31, 2020 | | Carrying amount | | Level 1 | | Level 2 | | Level 3 | | Total | Financial assets: | | | | | | | | | | | Cash and cash equivalents | | $ | 1,317,898 | | | $ | 1,317,898 | | | $ | — | | | $ | — | | | $ | 1,317,898 | | Investment securities | | 1,176,991 | | | — | | | 1,176,991 | | | — | | | 1,176,991 | | | | | | | | | | | | | Loans, net | | 6,912,570 | | | — | | | — | | | 7,058,693 | | | 7,058,693 | | Loans held for sale | | 899,173 | | | — | | | 683,770 | | | 215,403 | | | 899,173 | | Interest receivable | | 43,603 | | | 33 | | | 5,254 | | | 38,316 | | | 43,603 | | Mortgage servicing rights | | 79,997 | | | — | | | — | | | 79,997 | | | 79,997 | | Derivatives | | 68,938 | | | — | | | 68,938 | | | — | | | 68,938 | | Financial liabilities: | | | | | | | | | | | Deposits: | | | | | | | | | | | Without stated maturities | | $ | 8,020,783 | | | $ | 8,020,783 | | | $ | — | | | $ | — | | | $ | 8,020,783 | | With stated maturities | | 1,437,254 | | | — | | | 1,446,605 | | | — | | | 1,446,605 | | Securities sold under agreement to repurchase and federal funds sold | | 32,199 | | | 32,199 | | | — | | | — | | | 32,199 | | | | | | | | | | | | | Subordinated debt | | 189,527 | | | — | | | — | | | 192,149 | | | 192,149 | | Other borrowings | | 16,598 | | | — | | | 16,598 | | | — | | | 16,598 | | Interest payable | | 6,772 | | | 327 | | | 4,210 | | | 2,235 | | | 6,772 | | Derivatives | | 48,242 | | | — | | | 48,242 | | | — | | | 48,242 | |
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Schedule of Balances and Levels of Assets Measured at Fair Value on Recurring Basis |
The balances and levels of the assets measured at fair value on a recurring basis at September 30, 2021 are presented in the following table: | | | | | | | | | | | | | | | | | | | | | | | | | | | At September 30, 2021 | | Quoted prices in active markets for identical assets (liabilities) (level 1) | | Significant other observable inputs (level 2) | | Significant unobservable inputs (level 3) | | Total | Recurring valuations: | | | | | | | | | Financial assets: | | | | | | | | | Available-for-sale securities: | | | | | | | | | U.S. government agency securities | | $ | — | | | $ | 10,571 | | | $ | — | | | $ | 10,571 | | Mortgage-backed securities - residential | | — | | | 1,210,503 | | | — | | | 1,210,503 | | Mortgage-backed securities - commercial | | — | | | 15,712 | | | — | | | 15,712 | | Municipal securities | | — | | | 327,239 | | | — | | | 327,239 | | Treasury securities | | — | | | 6,006 | | | — | | | 6,006 | | Corporate securities | | — | | | 2,527 | | | — | | | 2,527 | | Equity securities | | — | | | 4,779 | | | — | | | 4,779 | | Total securities | | $ | — | | | $ | 1,577,337 | | | $ | — | | | $ | 1,577,337 | | Loans held for sale | | — | | | 755,210 | | | 100,496 | | | 855,706 | | Mortgage servicing rights | | — | | | — | | | 110,591 | | | 110,591 | | Derivatives | | — | | | 38,786 | | | — | | | 38,786 | | Financial Liabilities: | | | | | | | | | Derivatives | | — | | | 28,306 | | | — | | | 28,306 | |
The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2020 are presented in the following table: | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2020 | | Quoted prices in active markets for identical assets (liabilities) (level 1) | | Significant other observable inputs (level 2) | | Significant unobservable inputs (level 3) | | Total | Recurring valuations: | | | | | | | | | Financial assets: | | | | | | | | | Available-for-sale securities: | | | | | | | | | U.S. government agency securities | | $ | — | | | $ | 2,003 | | | $ | — | | | $ | 2,003 | | Mortgage-backed securities - residential | | — | | | 773,336 | | | — | | | 773,336 | | Mortgage-backed securities - commercial | | — | | | 21,588 | | | — | | | 21,588 | | Municipals, tax-exempt | | — | | | 356,329 | | | — | | | 356,329 | | Treasury securities | | — | | | 16,628 | | | — | | | 16,628 | | Corporate securities | | — | | | 2,516 | | | — | | | 2,516 | | Equity securities | | — | | | 4,591 | | | — | | | 4,591 | | Total securities | | $ | — | | | $ | 1,176,991 | | | $ | — | | | $ | 1,176,991 | | Loans held for sale | | $ | — | | | $ | 683,770 | | | $ | 215,403 | | | $ | 899,173 | | Mortgage servicing rights | | — | | | — | | | 79,997 | | | 79,997 | | Derivatives | | — | | | 68,938 | | | — | | | 68,938 | | Financial Liabilities: | | | | | | | | | Derivatives | | — | | | 48,242 | | | — | | | 48,242 | |
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Schedule of Balances and Levels of Assets Measured at Fair Value on Non-recurring Basis |
The balances and levels of the assets measured at fair value on a non-recurring basis at September 30, 2021 are presented in the following table: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At September 30, 2021 | | Quoted prices in active markets for identical assets (liabilities (level 1) | | Significant other observable inputs (level 2) | | Significant unobservable inputs (level 3) | | Total | | | | | Non-recurring valuations: | | | | | | | | | | | | | Financial assets: | | | | | | | | | | | | | Other real estate owned | | $ | — | | | $ | — | | | $ | 6,192 | | | $ | 6,192 | | | | | | Collateral dependent loans: | | | | | | | | | | | | | Commercial and industrial | | $ | — | | | $ | — | | | $ | 101 | | | $ | 101 | | | | | | Construction | | — | | | — | | | 606 | | | 606 | | | | | | Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | Residential line of credit | | — | | | — | | | 311 | | | 311 | | | | | | | | | | | | | | | | | | | Commercial real estate: | | | | | | | | | | | | | Owner occupied | | — | | | — | | | 315 | | | 315 | | | | | | Non-owner occupied | | — | | | — | | | 4,527 | | | 4,527 | | | | | | Consumer and other | | — | | | — | | | 24 | | | 24 | | | | | | Total collateral dependent loans | | $ | — | | | $ | — | | | $ | 5,884 | | | $ | 5,884 | | | | | |
The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2020 are presented in the following table: | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2020 | | Quoted prices in active markets for identical assets (liabilities) (level 1) | | Significant other observable inputs (level 2) | | Significant unobservable inputs (level 3) | | Total | Non-recurring valuations: | | | | | | | | | Financial assets: | | | | | | | | | Other real estate owned | | $ | — | | | $ | — | | | $ | 6,662 | | | $ | 6,662 | | Collateral dependent loans: | | | | | | | | | Commercial and industrial | | $ | — | | | $ | — | | | $ | 684 | | | $ | 684 | | | | | | | | | | | Residential real estate: | | | | | | | | | | | | | | | | | | Residential line of credit | | — | | | — | | | 311 | | | 311 | | Commercial real estate: | | | | | | | | | Owner occupied | | — | | | — | | | 136 | | | 136 | | Non-owner occupied | | — | | | — | | | 5,022 | | | 5,022 | | | | | | | | | | | Total collateral dependent loans | | $ | — | | | $ | — | | | $ | 6,153 | | | $ | 6,153 | |
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Schedule of Information About Significant Unobservable Inputs (Level 3) Used in Valuation of Assets Measured at Fair Value on Nonrecurring Basis |
The following tables present information as of September 30, 2021 and December 31, 2020 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of September 30, 2021 | | | | | | | | | | Financial instrument | | Fair Value | | Valuation technique | | Significant unobservable inputs | | Range of inputs | | Collateral dependent loans | | $ | 5,884 | | | Valuation of collateral | | Discount for comparable sales | | 0%-30% | | Other real estate owned | | $ | 6,192 | | | Appraised value of property less costs to sell | | Discount for costs to sell | | 0%-15% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2020 | | | | | | | | | | Financial instrument | | Fair Value | | Valuation technique | | Significant unobservable inputs | | Range of inputs | | Collateral dependent loans | | $ | 6,153 | | | Valuation of collateral | | Discount for comparable sales | | 0%-30% | | Other real estate owned | | $ | 6,662 | | | Appraised value of property less costs to sell | | Discount for costs to sell | | 0%-15% | |
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Schedule of Loans Held For Sale at Fair Value |
The following table summarizes the Company's loans held for sale, at fair value, as of the dates presented: | | | | | | | | | | | | | | | | | September 30, | | December 31, | | | 2021 | | 2020 | Commercial and industrial | | $ | 100,496 | | | $ | 215,403 | Residential real estate: | | | | | 1-4 family mortgage | | 755,210 | | | 683,770 | | Total loans held for sale | | $ | 855,706 | | | $ | 899,173 | |
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Schedule of Changes in Associated with Commercial Loans Held For Sale |
The following table sets forth the changes in fair value associated with this portfolio. | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2021 | | | | Principal Balance | | Fair Value Discount | | Fair Value | | Carrying value at beginning of period | | $ | 135,972 | | | $ | (11,850) | | | $ | 124,122 | | | Change in fair value: | | | | | | | | Pay-downs and pay-offs | | (24,366) | | | — | | | (24,366) | | | | | | | | | | | Changes in valuation included in other noninterest income | | — | | | 740 | | | 740 | | | Carrying value at end of period | | $ | 111,606 | | | $ | (11,110) | | | $ | 100,496 | | | | | | | | | | | | | Nine Months Ended September 30, 2021 | | | | Principal Balance | | Fair Value Discount | | Fair Value | | Carrying value at beginning of period | | $ | 239,063 | | | $ | (23,660) | | | $ | 215,403 | | | Change in fair value: | | | | | | | | Pay-downs and pay-offs | | (116,158) | | | — | | | (116,158) | | | Write-offs to discount | | (11,299) | | | 11,299 | | | — | | | Changes in valuation included in other noninterest income | | — | | | 1,251 | | | 1,251 | | | Carrying value at end of period | | $ | 111,606 | | | $ | (11,110) | | | $ | 100,496 | | | | | | | | | | | | | Three Months Ended September 30, 2020 | | | | Principal balance | | Fair Value discount | | Fair Value | | Carrying value at beginning of period | | $ | — | | | $ | — | | | $ | — | | | Commercial loans held for sale acquired from Franklin | | 350,269 | | | (24,063) | | | 326,206 | | | Change in fair value: | | | | | | | | Pay-downs and pay-offs | | (86,808) | | | — | | | (86,808) | | | | | | | | | | | Changes in valuation included in other noninterest income | | | | 1,858 | | | 1,858 | | | Carrying value at end of period | | $ | 263,461 | | | $ | (22,205) | | | $ | 241,256 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | Nine Months ended September 30, 2020 | | | Principal balance | | Fair Value discount | | Fair Value | Carrying value at beginning of period | | $ | — | | | $ | — | | | $ | — | | Commercial loans held for sale acquired from Franklin | | 350,269 | | | (24,063) | | | 326,206 | | Change in fair value: | | | | | | | Pay-downs and pay-offs | | (86,808) | | | — | | | (86,808) | | | | | | | | | Changes in valuation included in other noninterest income | | — | | | 1,858 | | | 1,858 | | Carrying value at end of period | | $ | 263,461 | | | $ | (22,205) | | | $ | 241,256 | |
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Schedule of Differences between Fair Value and Principal Balance for Loans Held for Sale Measured at Fair Value |
The following table summarizes the differences between the fair value and the principal balance for loans held for sale and nonaccrual loans measured at fair value as of September 30, 2021 and December 31, 2020: | | | | | | | | | | | | | | | | | | | | | September 30, 2021 | | Aggregate fair value | | Aggregate Unpaid Principal Balance | | Difference | Mortgage loans held for sale measured at fair value | | $ | 755,210 | | | $ | 738,221 | | | $ | 16,989 | | Commercial loans held for sale measured at fair value | | 94,871 | | | 100,914 | | | (6,043) | | | | | | | | | Nonaccrual loans | | 5,625 | | | 10,692 | | | (5,067) | | | | | | | | | December 31, 2020 | | | | | | | Mortgage loans held for sale measured at fair value | | $ | 683,770 | | | $ | 651,887 | | | $ | 31,883 | | Commercial loans held for sale measured at fair value | | 208,914 | | | 226,867 | | | (17,953) | | Past due loans of 90 days or more | | 83 | | | 163 | | | (80) | | Nonaccrual loans | | 6,406 | | | 12,033 | | | (5,627) | |
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