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Fair Value Accounting and Measurement (Tables)
9 Months Ended
Sep. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis at the dates presented by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
Fair ValueFair Value Measurements at Reporting Date Using
Level 1Level 2Level 3
September 30, 2022(in thousands)
Assets
Debt securities available for sale:
U.S. government agency and government-sponsored enterprise mortgage-back securities and collateralized mortgage obligations$2,852,867 $— $2,852,867 $— 
Other asset-backed securities334,008 — 334,008 — 
State and municipal securities826,834 — 826,834 — 
U.S. government agency and government-sponsored enterprise securities222,951 — 222,951 — 
U.S. government securities166,306 166,306 — — 
Non-agency collateralized mortgage obligations297,855 — 297,855 — 
Total debt securities available for sale$4,700,821 $166,306 $4,534,515 $— 
Loans held for sale$1,251 $— $1,251 $— 
Other assets:
Interest rate forward loan sales contracts$119 $— $119 $— 
Interest rate contracts$43,574 $— $43,574 $— 
Liabilities
Other liabilities:
Interest rate contracts$43,574 $— $43,574 $— 
Interest rate lock commitments$62 $— $— $62 
Fair ValueFair Value Measurements at Reporting Date Using
Level 1Level 2Level 3
December 31, 2021(in thousands)
Assets
Debt securities available for sale:
U.S. government agency and government-sponsored enterprise mortgage-back securities and collateralized mortgage obligations$3,745,601 $— $3,745,601 $— 
Other asset-backed securities463,063 — 463,063 — 
State and municipal securities997,291 — 997,291 — 
U.S. government agency and government-sponsored enterprise securities252,576 — 252,576 — 
U.S. government securities157,536 157,536 — — 
Non-agency collateralized mortgage294,932 — 294,932 — 
Total debt securities available for sale$5,910,999 $157,536 $5,753,463 $— 
Loans held for sale$9,570 $— $9,570 $— 
Other assets:
Interest rate lock commitments$356 $— $— $356 
Interest rate contracts$24,257 $— $24,257 $— 
Liabilities
Other liabilities:
Interest rate forward loan sales contracts$27 $— $27 $— 
Interest rate contracts$24,257 $— $24,257 $— 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The following table includes a rollforward of interest rate lock commitments which utilize Level 3 inputs to determine the fair value on a recurring basis.
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(in thousands)
Balance at the beginning of the period$90 $585 $356 $1,096 
Change included in earnings(13)1,864 133 5,708 
Settlements(139)(1,967)(551)(6,322)
Balance at the end of the period$(62)$482 $(62)$482 
Financial Assets Accounted For Fair Value On Nonrecurring Basis
The following table sets forth information related to the Company’s assets that were measured using fair value estimates on a nonrecurring basis during the prior year quarterly period:
Fair Value at Fair Value Measurements 
at Reporting Date Using
Gains (Losses) During the Three Months Ended September 30, 2021Gains (Losses) During the Nine Months Ended September 30, 2021
September 30, 2021Level 1Level 2Level 3
(in thousands)
Collateral dependent loans$1,845 $— $— $1,845 $(958)$(958)
Fair Value, by Balance Sheet Grouping
The following tables summarize carrying amounts and estimated fair values of selected financial instruments by level within the fair value hierarchy at the dates presented:
September 30, 2022
Carrying
Amount
Fair
Value
Level 1Level 2Level 3
(in thousands)
Assets
Cash and due from banks$263,551 $263,551 $263,551 $— $— 
Interest-earning deposits with banks54,124 54,124 54,124 — — 
Debt securities available for sale4,700,821 4,700,821 166,306 4,534,515 — 
Debt securities held to maturity2,079,285 1,747,282 — 1,747,282 — 
FHLB stock10,560 10,560 — 10,560 — 
Loans held for sale1,251 1,251 — 1,251 — 
Loans11,537,390 11,353,412 — — 11,353,412 
Interest rate contracts43,574 43,574 — 43,574 — 
Interest rate forward loan sales contracts119 119 — 119 — 
Liabilities
Time deposits$371,230 $360,340 $— $360,340 $— 
FHLB advances14,322 14,290 — 14,290 — 
Repurchase agreements48,733 48,733 — 48,733 — 
Subordinated debentures10,000 10,013 — 10,013 — 
Junior subordinated debentures10,310 9,984 — 9,984 — 
Interest rate contracts43,574 43,574 — 43,574 — 
Interest rate lock commitments62 62 — — 62 
December 31, 2021
Carrying
Amount
Fair
Value
Level 1Level 2Level 3
(in thousands)
Assets
Cash and due from banks$153,414 $153,414 $153,414 $— $— 
Interest-earning deposits with banks671,300 671,300 671,300 — — 
Debt securities available for sale5,910,999 5,910,999 157,536 5,753,463 — 
Debt securities held to maturity2,148,327 2,122,606 — 2,122,606 — 
FHLB stock10,280 10,280 — 10,280 — 
Loans held for sale9,774 9,774 — 9,774 — 
Loans10,486,359 10,679,349 — — 10,679,349 
Interest rate contracts24,257 24,257 — 24,257 — 
Interest rate lock commitments356 356 — — 356 
Liabilities
Time deposits$445,957 $430,682 $— $430,682 $— 
FHLB advances7,359 8,752 — 8,752 — 
Repurchase agreements86,013 86,013 — 86,013 — 
Subordinated debentures10,000 10,125 — 10,125 — 
Junior subordinated debentures10,310 9,927 — 9,927 — 
Interest rate contracts24,257 24,257 — 24,257 — 
Interest rate forward loan sales contracts27 27 — 27 — 
Fair Value Option, Disclosures
The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held for sale sold under the mandatory delivery method and accounted for under the fair value option as of the dates presented:
September 30, 2022December 31, 2021
Fair ValueAggregate Unpaid Principal BalanceFair Value Less Aggregate Unpaid Principal BalanceFair ValueAggregate Unpaid Principal BalanceFair Value Less Aggregate Unpaid Principal Balance
(in thousands)
$1,251 $1,299 $(48)$9,570 $9,401 $169 
Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value Inputs, Assets, Quantitative Information
The range and weighted average of the significant unobservable inputs used to fair value our Level 3 nonrecurring assets, along with the valuation techniques used, are shown in the following table:
Fair Value at September 30, 2021Valuation TechniqueUnobservable InputRange (Weighted Average) (1)
(dollars in thousands)
Collateral dependent loans (2)$1,845 Fair Market Value of CollateralAdjustment to Stated Value
0.00% - 97.46% (71.44%)
__________
(1) Discount applied to appraised value or stated value (in the case of accounts receivable and fixed assets).
(2) Collateral consists of accounts receivable and fixed assets.
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair Value Assets And Liabilities Measured On Recurring Basis ValuationTechniques
The following table provides a description of the valuation technique, significant unobservable inputs and qualitative information about the unobservable inputs for the Company’s assets and liabilities classified as Level 3 and measured at fair value on a recurring basis at the dates presented:
Fair Value at September 30, 2022Valuation TechniqueUnobservable InputRange (Weighted Average)
(dollars in thousands)
Interest rate lock commitments$(62)Internal pricing modelPull-through rate
80.84% - 100.00%
(95.19%)
Fair Value at September 30, 2021Valuation TechniqueUnobservable InputRange (Weighted Average)
(dollars in thousands)
Interest rate lock commitments$482 Internal pricing modelPull-through rate
77.76% - 100.00%
(90.62%)