Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

Assets and liabilities measured at fair value on a recurring and nonrecurring basis were as follows at the dates indicated:


			Fair Value Measurements at Reporting Date Using
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	September 30, 2023
	(Dollars in thousands)
Recurring fair value measurements
Assets
Trading securities	$	4,476	$	4,476	$	—	$	—
Equity securities	21,475		21,475		—		—
Securities available for sale
U.S. government agency securities	199,510		—		199,510		—
U.S. treasury securities	798,887		—		798,887		—
Agency mortgage-backed securities	274,708		—		274,708		—
Agency collateralized mortgage obligations	33,649		—		33,649		—

State, county, and municipal securities	184		—		184		—

Pooled trust preferred securities issued by banks and insurers	1,043		—		1,043		—
Small business administration pooled securities	45,763		—		45,763		—
Loans held for sale	3,998		—		3,998		—
Derivative instruments	159,487		—		159,487		—
Liabilities
Derivative instruments	204,971		—		204,971		—
Total recurring fair value measurements	$	1,338,209	$	25,951	$	1,312,258	$	—

Nonrecurring fair value measurements
Assets
Individually assessed collateral dependent loans (1)	$	11,991	$	—	$	—	$	11,991

Total nonrecurring fair value measurements	$	11,991	$	—	$	—	$	11,991


			Fair Value Measurements at Reporting Date Using
	Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	December 31, 2022
	(Dollars in thousands)
Recurring fair value measurements
Assets
Trading securities	$	3,888	$	3,888	$	—	$	—
Equity securities	21,119		21,119		—		—
Securities available for sale
U.S. government agency securities	202,300		—		202,300		—
U.S. treasury securities	791,341		—		791,341		—
Agency mortgage-backed securities	313,688		—		313,688		—
Agency collateralized mortgage obligations	38,843		—		38,843		—

State, county, and municipal securities	191		—		191		—

Pooled trust preferred securities issued by banks and insurers	1,034		—		1,034		—
Small business administration pooled securities	51,757		—		51,757		—
Loans held for sale	2,803		—		2,803		—
Derivative instruments	127,958		—		127,958		—
Liabilities
Derivative instruments	179,911		—		179,911		—
Total recurring fair value measurements, net	$	1,375,011	$	25,007	$	1,350,004	$	—

Nonrecurring fair value measurements
Assets
Individually assessed collateral dependent loans (1)	$	16,092	$	—	$	—	$	16,092

Total nonrecurring fair value measurements	$	16,092	$	—	$	—	$	16,092

(1) The carrying value of individually assessed collateral dependent loans is based on the lower of amortized cost or fair value of the underlying collateral less costs to sell. The fair value of the underlying collateral is generally determined through independent appraisals, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic factors and estimated liquidation expenses. The range of these possible adjustments may vary.

The estimated fair values and related carrying amounts for assets and liabilities

The estimated fair values and related carrying amounts for assets and liabilities for which fair value is only disclosed are shown below at the dates indicated:


					Fair Value Measurements at Reporting Date Using
	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	September 30, 2023
	(Dollars in thousands)
Financial assets
Securities held to maturity (a)
U.S. government agency securities	$	29,961	$	28,342	$	—	$	28,342	$	—
U.S. treasury securities	100,693		88,331		—		88,331		—
Agency mortgage-backed securities	839,945		741,995		—		741,995		—
Agency collateralized mortgage obligations	490,011		404,144		—		404,144		—

Single issuer trust preferred securities issued by banks	1,500		1,335		—		1,335		—
Small business administration pooled securities	132,169		120,283		—		120,283		—

Loans, net of allowance for credit losses (b)	14,071,675		13,102,058		—		—		13,102,058
Federal Home Loan Bank stock (c)	43,878		43,878		—		43,878		—
Cash surrender value of life insurance policies (d)	295,670		295,670		—		295,670		—
Financial liabilities
Deposit liabilities, other than time deposits (e)	$	13,046,763	$	13,046,763	$	—	$	13,046,763	$	—
Time certificates of deposits (f)	2,012,763		1,990,899		—		1,990,899		—
Federal Home Loan Bank borrowings (f)	887,548		886,799		—		886,799		—




Junior subordinated debentures (g)	62,857		57,347		—		57,347		—
Subordinated debentures (f)	49,957		45,990		—		—		45,990


					Fair Value Measurements at Reporting Date Using
	Carrying Value		Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	December 31, 2022
	(Dollars in thousands)
Financial assets
Securities held to maturity (a)
U.S. government agency securities	$	31,258	$	29,036	$	—	$	29,036	$	—
U.S. treasury securities	100,634		88,879		—		88,879		—
Agency mortgage-backed securities	898,927		815,952		—		815,952		—
Agency collateralized mortgage obligations	535,971		458,417		—		458,417		—

Single issuer trust preferred securities issued by banks	1,500		1,508		—		1,508		—
Small business administration pooled securities	136,830		130,918		—		130,918		—

Loans, net of allowance for credit losses (b)	13,760,164		13,260,873		—		—		13,260,873
Federal Home Loan Bank stock (c)	5,218		5,218		—		5,218		—
Cash surrender value of life insurance policies (d)	293,323		293,323		—		293,323		—
Financial liabilities
Deposit liabilities, other than time deposits (e)	$	14,683,266	$	14,683,266	$	—	$	14,683,266	$	—
Time certificates of deposits (f)	1,195,741		1,164,892		—		1,164,892		—
Federal Home Loan Bank borrowings (f)	637		563		—		563		—



Junior subordinated debentures (g)	62,855		60,002		—		60,002		—
Subordinated debentures (f)	49,885		45,891		—		—		45,891

(a)The fair values presented are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments and/or discounted cash flow analysis.

(b)Fair value of loans is measured using the exit price valuation method, determined primarily by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or cash flows, while incorporating liquidity and credit assumptions. Additionally, this amount excludes individually assessed collateral dependent loans, which are deemed to be marked to fair value on a nonrecurring basis.

(c)FHLB stock has no quoted market value and is carried at cost; therefore, the carrying amount approximates fair value.

(d)Cash surrender value of life insurance policies is recorded at its cash surrender value (or the amount that can be realized upon surrender of the policy), therefore, carrying amount approximates fair value.

(e)Fair value of demand deposits, savings and interest checking accounts and money market deposits is the amount payable on demand at the reporting date.

(f)Fair value was determined by discounting anticipated future cash payments using rates currently available for instruments with similar remaining maturities.

(g)Fair value was determined based upon market prices of securities with similar terms and maturities.