Fair Value of Financial Instruments (Tables)
|
12 Months Ended |
Dec. 31, 2023 |
Fair Value Disclosures [Abstract] |
|
Schedule of Balances and Levels of Assets Measured at Fair Value on Recurring Basis |
The balances and levels of the assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022 are presented in the following tables: | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2023 | | 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 | | $ | — | | | $ | 203,956 | | | $ | — | | | $ | 203,956 | | Mortgage-backed securities - residential | | — | | | 896,971 | | | — | | | 896,971 | | Mortgage-backed securities - commercial | | — | | | 16,961 | | | — | | | 16,961 | | Municipal securities | | — | | | 242,263 | | | — | | | 242,263 | | U.S. Treasury securities | | — | | | 108,496 | | | — | | | 108,496 | | Corporate securities | | — | | | 3,326 | | | — | | | 3,326 | | | | | | | | | | | Total securities | | $ | — | | | $ | 1,471,973 | | | $ | — | | | $ | 1,471,973 | | Loans held for sale, at fair value | | $ | — | | | $ | 46,618 | | | $ | — | | | $ | 46,618 | | Mortgage servicing rights | | — | | | — | | | 164,249 | | | 164,249 | | Derivatives | | — | | | 34,738 | | | — | | | 34,738 | | Financial Liabilities: | | | | | | | | | Derivatives | | — | | | 38,215 | | | — | | | 38,215 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2022 | | 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 | | $ | — | | | $ | 40,062 | | | $ | — | | | $ | 40,062 | | Mortgage-backed securities - residential | | — | | | 1,034,193 | | | — | | | 1,034,193 | | Mortgage-backed securities - commercial | | — | | | 17,644 | | | — | | | 17,644 | | Municipal securities | | — | | | 264,420 | | | — | | | 264,420 | | U.S. Treasury securities | | — | | | 107,680 | | | — | | | 107,680 | | Corporate securities | | — | | | 7,187 | | | — | | | 7,187 | | Equity securities, at fair value | | — | | | 2,990 | | | — | | | 2,990 | | Total securities | | $ | — | | | $ | 1,474,176 | | | $ | — | | | $ | 1,474,176 | | Loans held for sale, at fair value | | $ | — | | | $ | 82,750 | | | $ | 30,490 | | | $ | 113,240 | | Mortgage servicing rights | | — | | | — | | | 168,365 | | | 168,365 | | Derivatives | | — | | | 48,769 | | | — | | | 48,769 | | Financial Liabilities: | | | | | | | | | Derivatives | | — | | | 63,229 | | | — | | | 63,229 | |
|
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 nonrecurring basis as of December 31, 2023 and 2022 are presented in the following tables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2023 | | Quoted prices in active markets for identical assets (liabilities (level 1) | | Significant other observable inputs (level 2) | | Significant unobservable inputs (level 3) | | Total | | | | | Nonrecurring valuations: | | | | | | | | | | | | | Financial assets: | | | | | | | | | | | | | Other real estate owned | | $ | — | | | $ | — | | | $ | 2,400 | | | $ | 2,400 | | | | | | Collateral-dependent net loans held for investment: | | | | | | | | | | | | | Commercial and industrial | | — | | | — | | | 12,338 | | | 12,338 | | | | | | Construction | | — | | | — | | | 203 | | | 203 | | | | | | Residential real estate: | | | | | | | | | | | | | 1-4 family mortgage | | $ | — | | | $ | — | | | $ | 429 | | | $ | 429 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Consumer and other | | — | | | — | | | 71 | | | 71 | | | | | | Total collateral-dependent loans | | $ | — | | | $ | — | | | $ | 13,041 | | | $ | 13,041 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | At December 31, 2022 | | Quoted prices in active markets for identical assets (liabilities) (level 1) | | Significant other observable inputs (level 2) | | Significant unobservable inputs (level 3) | | Total | Nonrecurring valuations: | | | | | | | | | Financial assets: | | | | | | | | | Other real estate owned | | $ | — | | | $ | — | | | $ | 2,497 | | | $ | 2,497 | | Collateral-dependent net loans held for investment: | | | | | | | | | | | | | | | | | | | | | | | | | | | Residential real estate: | | | | | | | | | 1-4 family mortgage | | $ | — | | | $ | — | | | $ | 366 | | | $ | 366 | | | | | | | | | | | Commercial real estate: | | | | | | | | | | | | | | | | | | Non-owner occupied | | — | | | — | | | 2,494 | | | 2,494 | | | | | | | | | | | Total collateral-dependent loans | | $ | — | | | $ | — | | | $ | 2,860 | | | $ | 2,860 | |
The following tables set forth the changes in fair value associated with this portfolio for the years ended December 31, 2023, 2022, and 2021: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2023 | | | | Principal Balance | | Fair Value Discount | | Fair Value | | Carrying value at beginning of period | | $ | 34,357 | | | $ | (3,867) | | | $ | 30,490 | | | Change in fair value: | | | | | | | | Paydowns and payoffs | | (28,376) | | | — | | | (28,376) | | | Write-offs to discount | | (5,981) | | | 5,981 | | | — | | | Changes in valuation included in other noninterest income | | — | | | (2,114) | | | (2,114) | | | Carrying value at end of period | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2022 | | | Principal balance | | Fair Value discount | | Fair Value | Carrying value at beginning of period | | $ | 86,762 | | | $ | (7,463) | | | $ | 79,299 | | | | | | | | | Change in fair value: | | | | | | | Paydowns and payoffs | | (43,676) | | | — | | | (43,676) | | Write-offs to discount | | (8,729) | | | 8,729 | | | — | | Changes in valuation included in other noninterest income | | — | | | (5,133) | | | (5,133) | | Carrying value at end of period | | $ | 34,357 | | | $ | (3,867) | | | $ | 30,490 | |
| | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2021 | | | Principal balance | | Fair Value discount | | Fair Value | Carrying value at beginning of period | | $ | 239,063 | | | $ | (23,660) | | | $ | 215,403 | | | | | | | | | Change in fair value: | | | | | | | Paydowns and payoffs | | (141,002) | | | — | | | (141,002) | | Write-offs to discount | | (8,563) | | | 8,563 | | | — | | Changes in valuation included in other noninterest income | | (2,736) | | | 7,634 | | | 4,898 | | Carrying value at end of period | | $ | 86,762 | | | $ | (7,463) | | | $ | 79,299 | |
|
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 December 31, 2023 and 2022 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2023 | | | | | | | | | | Financial instrument | | Fair Value | | Valuation technique | | Significant unobservable inputs | | Range of inputs | | Collateral-dependent net loans held for investment | | $ | 13,041 | | | Valuation of collateral | | Discount for comparable sales | | 10%-61% | | Other real estate owned | | $ | 2,400 | | | Appraised value of property less costs to sell | | Discount for costs to sell | | 0%-15% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | | | | | | | | | Financial instrument | | Fair Value | | Valuation technique | | Significant unobservable inputs | | Range of inputs | | Collateral-dependent net loans held for investment | | $ | 2,860 | | | Valuation of collateral | | Discount for comparable sales | | 10%-35% | | Other real estate owned | | $ | 2,497 | | | 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 as of the dates presented: | | | | | | | | | | | | | | | | | | | | | | December 31, | | | 2023 | | 2022 | Loans held for sale under a fair value option: | | | | | Commercial loans held for sale | | $ | — | | | $ | 30,490 | | | | | | | Mortgage loans held for sale | | 46,618 | | | 82,750 | | Total loans held for sale, at fair value | | 46,618 | | | 113,240 | | Loans held for sale not accounted for under a fair value option: | | | | | Mortgage loans held for sale - guaranteed GNMA repurchase option | | 21,229 | | | 26,211 | | Total loans held for sale | | $ | 67,847 | | | $ | 139,451 | |
|
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 HFS measured at fair value as of December 31, 2023 and 2022: | | | | | | | | | | | | | | | | | | | | | December 31, 2023 | | Aggregate fair value | | Aggregate Unpaid Principal Balance | | Difference | Mortgage loans held for sale measured at fair value | | $ | 46,618 | | | $ | 45,509 | | | $ | 1,109 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2022 | | Aggregate fair value | | Aggregate Unpaid Principal Balance | | Difference | Mortgage loans held for sale measured at fair value | | $ | 82,750 | | | $ | 81,520 | | | $ | 1,230 | | Commercial loans held for sale measured at fair value | | 21,201 | | | 22,126 | | | (925) | | | | | | | | | Nonaccrual commercial loans held for sale | | 9,289 | | | 12,231 | | | (2,942) | |
|
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 that are not financial instruments are not included. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value | December 31, 2023 | | Carrying amount | | Level 1 | | Level 2 | | Level 3 | | Total | Financial assets: | | | | | | | | | | | Cash and cash equivalents | | $ | 810,932 | | | $ | 810,932 | | | $ | — | | | $ | — | | | $ | 810,932 | | Investment securities | | 1,471,973 | | | — | | | 1,471,973 | | | — | | | 1,471,973 | | Net loans held for investment | | 9,258,457 | | | — | | | — | | | 9,068,518 | | | 9,068,518 | | Loans held for sale, at fair value | | 46,618 | | | — | | | 46,618 | | | — | | | 46,618 | | Interest receivable | | 52,715 | | | 388 | | | 8,551 | | | 43,776 | | | 52,715 | | Mortgage servicing rights | | 164,249 | | | — | | | — | | | 164,249 | | | 164,249 | | Derivatives | | 34,738 | | | — | | | 34,738 | | | — | | | 34,738 | | Financial liabilities: | | | | | | | | | | | Deposits: | | | | | | | | | | | Without stated maturities | | $ | 8,927,654 | | | $ | 8,927,654 | | | $ | — | | | $ | — | | | $ | 8,927,654 | | With stated maturities | | 1,620,633 | | | — | | | 1,614,400 | | | — | | | 1,614,400 | | Securities sold under agreements to repurchase and federal funds purchased | | 108,764 | | | 108,764 | | | — | | | — | | | 108,764 | | | | | | | | | | | | | Bank Term Funding Program | | 130,000 | | | — | | | 130,000 | | | — | | | 130,000 | | Subordinated debt, net | | 129,645 | | | — | | | — | | | 122,671 | | | 122,671 | | | | | | | | | | | | | Interest payable | | 18,809 | | | 4,104 | | | 13,205 | | | 1,500 | | | 18,809 | | Derivatives | | 38,215 | | | — | | | 38,215 | | | — | | | 38,215 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fair Value | December 31, 2022 | | Carrying amount | | Level 1 | | Level 2 | | Level 3 | | Total | Financial assets: | | | | | | | | | | | Cash and cash equivalents | | $ | 1,027,052 | | | $ | 1,027,052 | | | $ | — | | | $ | — | | | $ | 1,027,052 | | Investment securities | | 1,474,176 | | | — | | | 1,474,176 | | | — | | | 1,474,176 | | Net loans held for investment | | 9,164,020 | | | — | | | — | | | 9,048,943 | | | 9,048,943 | | Loans held for sale, at fair value | | 113,240 | | | — | | | 82,750 | | | 30,490 | | | 113,240 | | Interest receivable | | 45,684 | | | 126 | | | 6,961 | | | 38,597 | | | 45,684 | | Mortgage servicing rights | | 168,365 | | | — | | | — | | | 168,365 | | | 168,365 | | Derivatives | | 48,769 | | | — | | | 48,769 | | | — | | | 48,769 | | Financial liabilities: | | | | | | | | | | | Deposits: | | | | | | | | | | | Without stated maturities | | $ | 9,433,860 | | | $ | 9,433,860 | | | $ | — | | | $ | — | | | $ | 9,433,860 | | With stated maturities | | 1,421,974 | | | — | | | 1,422,544 | | | — | | | 1,422,544 | | Securities sold under agreements to repurchase and federal funds purchased | | 86,945 | | | 86,945 | | | — | | | — | | | 86,945 | | Federal Home Loan Bank advances | | 175,000 | | | — | | | 175,000 | | | — | | | 175,000 | | Subordinated debt, net | | 126,101 | | | — | | | — | | | 118,817 | | | 118,817 | | | | | | | | | | | | | Interest payable | | 8,648 | | | 2,571 | | | 4,559 | | | 1,518 | | | 8,648 | | Derivatives | | 63,229 | | | — | | | 63,229 | | | — | | | 63,229 | |
|