Fair Value (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value

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

	Fair Value Measurements as of December 31, 2023
	Quoted Prices in		Significant
	Active Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
(dollars in thousands)	(Level 1)		Inputs (Level 2)		Inputs (Level 3)		Total
Assets
U.S. Treasury and government agency debt securities	$	—	$	32,503	$	—	$	32,503
Government-sponsored enterprises debt securities		—		19,592		—		19,592
Mortgage-backed securities:
Residential - Government agency(1)		—		10,182		—		10,182
Residential - Government-sponsored enterprises(1)		—		783,297		—		783,297
Commercial - Government agency		—		218,674		—		218,674
Commercial - Government-sponsored enterprises		—		86,431		—		86,431
Commercial - Non-agency		—		21,683		—		21,683
Collateralized mortgage obligations:
Government agency		—		471,150		—		471,150
Government-sponsored enterprises		—		363,970		—		363,970
Collateralized loan obligations		—		247,854		—		247,854
Total available-for-sale securities		—		2,255,336		—		2,255,336
Other assets(2)		517		12,768		—		13,285
Liabilities
Other liabilities(3)		—		(2,320)		(2,300)		(4,620)
Total	$	517	$	2,265,784	$	(2,300)	$	2,264,001

	Fair Value Measurements as of December 31, 2022
	Quoted Prices in		Significant
	Active Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
(dollars in thousands)	(Level 1)		Inputs (Level 2)		Inputs (Level 3)		Total
Assets
U.S. Treasury and government agency debt securities	$	—	$	150,982	$	—	$	150,982
Government-sponsored enterprises debt securities		—		44,301		—		44,301
Mortgage-backed securities:
Residential - Government agency(1)		—		59,723		—		59,723
Residential - Government-sponsored enterprises(1)		—		1,160,455		—		1,160,455
Commercial - Government agency		—		237,853		—		237,853
Commercial - Government-sponsored enterprises		—		119,573		—		119,573
Commercial - Non-agency		—		21,471		—		21,471
Collateralized mortgage obligations:
Government agency		—		653,322		—		653,322
Government-sponsored enterprises		—		462,132		—		462,132
Collateralized loan obligations		—		241,321		—		241,321
Total available-for-sale securities		—		3,151,133		—		3,151,133
Other assets(4)		5,376		10,945		—		16,321
Liabilities
Other liabilities(3)		—		(49,268)		(851)		(50,119)
Total	$	5,376	$	3,112,810	$	(851)	$	3,117,335

(1) Backed by residential real estate.

(2) Other assets classified as Level 1 include money market funds that have quoted prices in active markets and are related to the Company’s deferred compensation plans. Other assets classified as Level 2 include derivative assets.

(3) Other liabilities include derivative liabilities.

(4) Other assets classified as Level 1 include mutual funds and money market funds that have quoted prices in active markets and are related to the Company’s deferred compensation plans. Other assets classified as Level 2 include derivative assets.

Significant unobservable inputs used in fair value measurements for Level 3 assets and liabilities measured at fair value on a recurring basis

	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2023
				Significant
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	Range
Visa derivative	$	(2,300)	Discounted Cash Flow	Expected Conversion Rate - 1.5875(1)	1.5289-1.5875
				Expected Term - 5 months(2)	n/m(2)
				Growth Rate - 10%(3)	-6% - 25%

	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2022
				Significant
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	Range
Visa derivative	$	(851)	Discounted Cash Flow	Expected Conversion Rate - 1.5991(1)	1.5514-1.5991
				Expected Term - 3 months(4)	0 - 6 months
				Growth Rate - 26%(3)	10% - 38%

(1) Due to the uncertainty in the movement of the conversion rate, the current conversion rate as of the respective consolidated balance sheet dates was utilized in the fair value calculation.

(2) The expected term of 5 months was based on the May 2024 claim filing deadline. As such, a range is not meaningful to disclose.

(3) The growth rate was based on the arithmetic average of analyst price targets.

(4) The expected term of 3 months was based on the median of 0 to 6 months.

Summary of changes in Level 3 liabilities measured at fair value on a recurring basis

	Visa Derivative
(dollars in thousands)	2023		2022
Year Ended December 31,
Balance as of January 1,	$	(851)	$	(5,530)
Total net losses included in other noninterest income		(7,738)		(707)
Settlements		6,289		5,386
Balance as of December 31,	$	(2,300)	$	(851)
Total net losses included in net income attributable to the change in unrealized losses related to liabilities still held as of December 31,	$	(7,738)	$	(707)

Summary of estimated fair value of financial instruments not required to be carried at fair value on a recurring basis

	December 31, 2023
			Fair Value Measurements
			Quoted Prices in		Significant		Significant
			Active Markets		Other		Unobservable
			for Identical		Observable		Inputs
(dollars in thousands)	Book Value		Assets (Level 1)		Inputs (Level 2)		(Level 3)		Total
Financial assets:
Cash and cash equivalents	$	1,739,897	$	185,015	$	1,554,882	$	—	$	1,739,897
Investment securities held-to-maturity		4,041,449		—		3,574,856		—		3,574,856
Loans held for sale		190		—		192		—		192
Loans(1)		13,973,688		—		—		13,385,683		13,385,683
Financial liabilities:
Time deposits(2)	$	3,456,158	$	—	$	3,432,330	$	—	$	3,432,330
Short-term borrowings		500,000		—		495,306		—		495,306

	December 31, 2022
			Fair Value Measurements
			Quoted Prices in		Significant		Significant
			Active Markets		Other		Unobservable
			for Identical		Observable		Inputs
(dollars in thousands)	Book Value		Assets (Level 1)		Inputs (Level 2)		(Level 3)		Total
Financial assets:
Cash and cash equivalents	$	526,624	$	297,502	$	229,122	$	—	$	526,624
Investment securities held-to-maturity		4,320,639		—		3,814,822		—		3,814,822
Loans(1)		13,793,922		—		—		13,138,787		13,138,787
Financial liabilities:
Time deposits(2)	$	2,476,050	$	—	$	2,423,231	$	—	$	2,423,231
Short-term borrowings		75,000		—		74,991		—		74,991

(1) Excludes financing leases of $379.8 million at December 31, 2023 and $298.1 million at December 31, 2022.

(2) Excludes deposit liabilities with no defined or contractual maturity of $17.9 billion at December 31, 2023 and $19.2 billion at December 31, 2022.