Fair value of financial instruments (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Disclosures [Abstract]

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

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

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

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%

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

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

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)