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Fair Value (Tables)
6 Months Ended
Jun. 30, 2023
Schedule of recorded amount of assets and liabilities measured at fair value on a recurring basis

 

    

    

Quoted Prices

    

    

In Active

Significant

Markets

Other

Significant

for Identical

Observable

Unobservable

Assets

Inputs

Inputs

(Dollars in thousands)

Fair Value

(Level 1)

(Level 2)

(Level 3)

June 30, 2023:

Assets

Derivative financial instruments

$

174,480

$

$

174,480

$

Loans held for sale

 

42,951

 

 

42,951

 

Trading securities

 

56,580

 

 

56,580

 

Securities available for sale:

U.S. Treasuries

219,913

219,913

U.S. Government agencies

218,345

218,345

Residential mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

1,604,370

1,604,370

Residential collateralized mortgage-obligations issued by U.S. government

agencies or sponsored enterprises

559,776

559,776

Commercial mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

962,494

962,494

State and municipal obligations

 

954,455

 

 

954,455

 

Small Business Administration loan-backed securities

 

404,559

 

 

404,559

 

Corporate securities

25,422

25,422

Total securities available for sale

 

4,949,334

 

 

4,949,334

 

Mortgage servicing rights

 

87,539

 

 

 

87,539

SBA servicing asset

6,202

6,202

$

5,317,086

$

$

5,223,345

$

93,741

Liabilities

Derivative financial instruments

$

975,717

$

$

975,717

$

December 31, 2022:

Assets

Derivative financial instruments

$

211,016

$

$

211,016

$

Loans held for sale

 

28,968

 

 

28,968

 

Trading securities

 

31,263

 

 

31,263

 

Securities available for sale:

U.S. Treasuries

265,638

265,638

U.S. Government agencies

219,088

219,088

Residential mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

1,698,353

1,698,353

Residential collateralized mortgage-obligations issued by U.S. government

agencies or sponsored enterprises

601,045

601,045

Commercial mortgage-backed securities issued by U.S. government

agencies or sponsored enterprises

1,000,398

1,000,398

State and municipal obligations

 

1,064,852

 

 

1,064,852

 

Small Business Administration loan-backed securities

 

444,810

 

 

444,810

 

Corporate securities

 

32,638

 

 

32,638

 

Total securities available for sale

 

5,326,822

 

 

5,326,822

 

Mortgage servicing rights

 

86,610

 

 

 

86,610

SBA servicing asset

6,068

6,068

$

5,690,747

$

$

5,598,069

$

92,678

Liabilities

Derivative financial instruments

$

1,034,143

$

$

1,034,143

$

Schedule of mortgage loans held for sale

    

June 30,

December 31,

(Dollars in thousands)

    

2023

 

2022

Fair value

$

42,951

$

28,968

Unpaid principal balance

41,855

27,937

Fair value less aggregated unpaid principal balance

$

1,096

$

1,031

Three Months Ended June 30,

Six Months Ended June 30,

(Dollars in thousands)

2023

2022

    

2023

2022

Income Statement Location

Mortgage loans held for sale

$

75

$

570

$

66

$

(5,456)

Mortgage banking income

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

    

    

Quoted Prices

    

    

 

In Active

Significant

 

Markets

Other

Significant

 

for Identical

Observable

Unobservable

 

Assets

Inputs

Inputs

 

(Dollars in thousands)

Fair Value

(Level 1)

(Level 2)

(Level 3)

 

June 30, 2023:

OREO

$

1,080

$

$

$

1,080

Bank properties held for sale

13,472

 

13,472

Individually evaluated loans

 

84,099

 

 

 

84,099

December 31, 2022:

OREO

$

1,023

$

$

$

1,023

Bank properties held for sale

17,754

 

17,754

Individually evaluated loans

 

20,802

 

 

 

20,802

Schedule of quantitative information about level 3 fair value measurements

Weighted Average

June 30,

December 31,

    

Valuation Technique

    

Unobservable Input

    

2023

    

2022

Nonrecurring measurements:

Individually evaluated loans

 

Discounted appraisals and discounted cash flows

 

Collateral discounts

15

%

31

%

OREO and Bank properties held for sale

 

Discounted appraisals

 

Collateral discounts and estimated costs to sell

23

%

16

%

Schedule of estimated fair value, and related carrying amount, of the Company's financial instruments

    

Carrying

    

Fair

    

    

    

 

(Dollars in thousands)

Amount

Value

Level 1

Level 2

Level 3

 

June 30, 2023

Financial assets:

Cash and cash equivalents

$

1,513,749

$

1,513,749

$

1,513,749

$

$

Trading securities

56,580

56,580

56,580

Investment securities

 

7,731,217

 

7,290,576

 

196,728

 

7,093,848

 

Loans held for sale

42,951

42,951

42,951

Loans, net of allowance for credit losses

 

31,109,393

 

30,184,857

 

 

 

30,184,857

Accrued interest receivable

 

137,230

 

137,230

 

 

26,346

 

110,884

Mortgage servicing rights

 

87,539

 

87,539

 

 

 

87,539

SBA servicing asset

6,202

6,202

6,202

Interest rate swap – non-designated hedge

 

173,248

 

173,248

 

 

173,248

 

Other derivative financial instruments (mortgage banking related)

 

1,232

 

1,232

 

 

1,232

 

Financial liabilities:

Deposits

 

Noninterest-bearing

11,489,483

 

11,489,483

 

 

11,489,483

 

Interest-bearing other than time deposits

20,826,961

20,826,961

20,826,961

Time deposits

4,425,434

4,351,601

4,351,601

Federal funds purchased and securities sold under agreements to repurchase

 

581,446

 

581,446

 

 

581,446

 

Corporate and subordinated debentures

392,090

385,920

 

385,920

 

Other borrowings

 

400,000

 

400,000

 

 

400,000

 

Accrued interest payable

 

31,791

 

31,791

 

 

31,791

 

Interest rate swap – non-designated hedge

 

974,549

 

974,549

 

 

974,549

 

Other derivative financial instruments (mortgage banking related)

 

1,168

 

1,168

 

 

1,168

 

Off balance sheet financial instruments:

Commitments to extend credit

 

 

(328,875)

 

 

(328,875)

 

December 31, 2022

Financial assets:

Cash and cash equivalents

$

1,312,563

$

1,312,563

$

1,312,563

$

$

Trading securities

31,263

31,263

31,263

Investment securities

 

8,189,780

 

7,756,707

 

179,717

 

7,576,990

 

Loans held for sale

28,968

28,968

28,968

Loans, net of allowance for credit losses

 

29,821,418

 

29,329,499

 

 

 

29,329,499

Accrued interest receivable

 

134,594

 

134,594

 

 

28,449

 

106,145

Mortgage servicing rights

 

86,610

 

86,610

 

 

 

86,610

SBA servicing asset

6,068

6,068

Interest rate swap – non-designated hedge

 

210,216

 

210,216

 

 

210,216

 

Other derivative financial instruments (mortgage banking related)

 

800

 

800

 

 

800

 

Financial liabilities:

Deposits

 

Noninterest-bearing

13,168,656

 

13,168,656

 

 

13,168,656

 

Interest-bearing other than time deposits

20,761,981

20,761,981

20,761,981

Time deposits

2,419,986

2,333,764

2,333,764

Federal funds purchased and securities sold under agreements to repurchase

 

556,417

 

556,417

 

 

556,417

 

Corporate and subordinated debentures

 

392,275

 

377,360

 

 

377,360

 

Accrued interest payable

 

6,218

 

6,218

 

 

3,345

 

Interest rate swap – non-designated hedge

 

1,033,980

 

1,033,980

 

 

1,033,980

 

Other derivative financial instruments (mortgage banking related)

163

163

 

 

163

 

Off balance sheet financial instruments:

 

 

Commitments to extend credit

 

(184,801)

 

 

(184,801)

 

Mortgage Servicing Rights  
Schedule of reconciliation of the beginning and ending balances of Level 3 assets, comprised of Mortgage Servicing Rights, SBA servicing asset and liabilities recorded at fair value on a recurring basis

(Dollars in thousands)

    

MSRs

 

Fair value, January 1, 2023

$

86,610

Servicing assets that resulted from transfers of financial assets

 

4,034

Changes in fair value due to valuation inputs or assumptions

 

688

Changes in fair value due to decay

 

(3,793)

Fair value, June 30, 2023

$

87,539

SBA servicing asset  
Schedule of reconciliation of the beginning and ending balances of Level 3 assets, comprised of Mortgage Servicing Rights, SBA servicing asset and liabilities recorded at fair value on a recurring basis

(Dollars in thousands)

    

SBA Servicing Asset

 

Fair value, January 1, 2023

$

6,068

Servicing assets that resulted from transfers of financial assets

631

Changes in fair value due to decay

(931)

Changes in fair value due to valuation inputs or assumptions

434

Fair value, June 30, 2023

$

6,202