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Fair Value (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which we have elected the fair value option, are summarized below: 

									Fair Value Measurements at March 31, 2021 Using
(dollars in thousands)			Carrying Value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Financial Assets
Equity securities			$	2,429					$	2,429					$	—					$	—
Investment securities available-for-sale:
U.S. Treasury			228,890						228,890						—						—
U.S. government-sponsored entities and agencies			1,373,533						—						1,373,533						—
Mortgage-backed securities - Agency			3,385,339						—						3,385,339						—
States and political subdivisions			1,467,804						—						1,467,804						—
Pooled trust preferred securities			8,210						—						—						8,210
Other securities			260,754						—						260,754						—
Residential loans held for sale			50,281						—						50,281						—
Derivative assets			138,444						—						138,444						—
Financial Liabilities
Derivative liabilities			23,700						—						23,700						—

									Fair Value Measurements at December 31, 2020 Using
(dollars in thousands)			Carrying Value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Financial Assets
Equity securities			$	2,547					$	2,547					$	—					$	—
Investment securities available-for-sale:
U.S. Treasury			10,208						10,208						—						—
U.S. government-sponsored entities and agencies			841,988						—						841,988						—
Mortgage-backed securities - Agency			3,339,098						—						3,339,098						—
States and political subdivisions			1,492,162						—						1,492,162						—
Pooled trust preferred securities			7,913						—						—						7,913
Other securities			278,746						—						278,746						—
Residential loans held for sale			63,250						—						63,250						—
Derivative assets			140,201						—						140,201						—
Financial Liabilities
Derivative liabilities			18,187						—						18,187						—

Reconciliation of All Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

(dollars in thousands)			Pooled Trust Preferred Securities						States and Political Subdivisions
Three Months Ended March 31, 2021
Balance at beginning of period			$	7,913					$	—
Accretion of discount			5						—
Sales/payments received			(15)						—
Increase in fair value of securities			307						—
Balance at end of period			$	8,210					$	—
Three Months Ended March 31, 2020
Balance at beginning of period			$	8,222					$	40
Accretion of discount			4						—
Sales/payments received			(17)						(40)
Decrease in fair value of securities			(787)						—
Balance at end of period			$	7,422					$	—

Quantitative Information about Significant Unobservable Inputs Used in Fair Value Measurements

The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy:

(dollars in thousands)

Fair Value

Valuation Techniques

Unobservable Input

Range (Weighted Average) (4)

March 31, 2021

Pooled trust preferred securities

$

8,210

Discounted cash flow

Constant prepayment rate (1)

0.00%

Additional asset defaults (2)

6.0% - 8.7% (6.9%)

Expected asset recoveries (3)

0.0% - 23.3% (7.4%)

December 31, 2020

Pooled trust preferred securities

$

7,913

Discounted cash flow

Constant prepayment rate (1)

0.00%

Additional asset defaults (2)

6.0% - 8.7% (6.8%)

Expected asset recoveries (3)

0.0% - 23.2% (7.3%)

(1)Assuming no prepayments.

(2)Each currently performing pool asset is assigned a default probability based on the banking environment, which is adjusted for specific issuer evaluation, of 0%, 50%, or 100%.

(3)Each currently defaulted pool asset is assigned a recovery probability based on specific issuer evaluation of 0%, 25%, or 100%.

(4)Unobservable inputs are weighted by the estimated number of defaults and current performing collateral of the instruments.

The table below provides quantitative information about significant unobservable inputs used in fair value measurements within Level 3 of the fair value hierarchy:

(dollars in thousands)

Fair Value

Valuation Techniques

Unobservable Input

Range (Weighted Average) (2)

March 31, 2021

Collateral Dependent Loans

Commercial loans

$

12,484

Discounted

Discount for type of property,

2% - 27% (10%)

cash flow

age of appraisal, and current status

Commercial real estate loans

18,983

Discounted

Discount for type of property,

4% - 20% (12%)

cash flow

age of appraisal, and current status

Foreclosed Assets

Residential (1)

15

Fair value of

Discount for type of property,

60%

collateral

age of appraisal, and current status

December 31, 2020

Collateral Dependent Loans

Commercial loans

$

10,747

Discounted

Discount for type of property,

0% - 33% (12%)

cash flow

age of appraisal, and current status

Commercial real estate loans

40,653

Discounted

Discount for type of property,

0% - 18% (7%)

cash flow

age of appraisal, and current status

(1)There was only one foreclosed residential asset at March 31, 2021, so no range or weighted average is reported.

(2)Unobservable inputs were weighted by the relative fair value of the instruments.

Fair Value Option

Assets Measured at Fair Value on a Non-Recurring Basis

Assets measured at fair value at March 31, 2021 on a non-recurring basis are summarized below:

									Fair Value Measurements at March 31, 2021 Using
(dollars in thousands)			Carrying Value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Collateral Dependent Loans:
Commercial loans			$	12,484					$	—					$	—					$	12,484
Commercial real estate loans			18,983						—						—						18,983
Foreclosed Assets:
Residential			15						—						—						15
Loan servicing rights			334						—						334						—

Assets measured at fair value at December 31, 2020 on a non-recurring basis are summarized below:

									Fair Value Measurements at December 31, 2020 Using
(dollars in thousands)			Carrying Value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Collateral Dependent Loans:
Commercial loans			$	10,747					$	—					$	—					$	10,747
Commercial real estate loans			40,653						—						—						40,653
Loan servicing rights			26,717						—						26,717						—

Schedule of Difference Between the Aggregate Fair Value and the Aggregate Remaining Principal Balance

The difference between the aggregate fair value and the aggregate remaining principal balance for loans for which the fair value option has been elected was as follows: 

(dollars in thousands)			Aggregate Fair Value						Difference						Contractual Principal
March 31, 2021
Residential loans held for sale			$	50,281					$	1,107					$	49,174
December 31, 2020
Residential loans held for sale			$	63,250					$	3,485					$	59,765

The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value:

(dollars in thousands)			Other Gains and (Losses)						Interest Income						Interest (Expense)						Total Changes in Fair Values Included in Current Period Earnings
Three Months Ended March 31, 2021
Residential loans held for sale			$	(2,380)					$	2					$	—					$	(2,378)
Three Months Ended March 31, 2020
Residential loans held for sale			$	1,421					$	2					$	—					$	1,423

Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Carried at Fair Value

The carrying amounts and estimated fair values of financial instruments not carried at fair value were as follows: 

									Fair Value Measurements at March 31, 2021 Using
(dollars in thousands)			Carrying Value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Financial Assets
Cash, due from banks, money market,    and other interest-earning investments			$	457,777					$	457,777					$	—					$	—
Loans, net:
Commercial			4,042,345						—						—						4,060,059
Commercial real estate			6,002,458						—						—						5,962,329
Residential real estate			2,193,012						—						—						2,201,917
Consumer credit			1,573,409						—						—						1,569,425
Accrued interest receivable			80,841						947						26,169						53,725
Financial Liabilities
Deposits:
Noninterest-bearing demand deposits			$	6,091,054					$	6,091,054					$	—					$	—
Checking, NOW, savings, and money market    interest-bearing deposits			10,715,798						10,640,798						74,998						—
Time deposits			1,042,903						—						1,057,644						—
Federal funds purchased and interbank borrowings			922						922						—						—
Securities sold under agreements to repurchase			395,242						395,242						—						—
FHLB advances			1,912,541						—						1,974,389						—
Other borrowings			266,282						—						279,515						—
Accrued interest payable			3,257						—						3,257						—
Standby letters of credit			455						—						—						455
Off-Balance Sheet Financial Instruments
Commitments to extend credit			$	—					$	—					$	—					$	7,873

									Fair Value Measurements at December 31, 2020 Using
(dollars in thousands)			Carrying Value						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Financial Assets
Cash, due from banks, money market,    and other interest-earning investments			$	589,712					$	589,712					$	—					$	—
Loans, net:
Commercial			3,922,642						—						—						3,912,948
Commercial real estate			5,867,795						—						—						5,797,447
Residential real estate			2,235,814						—						—						2,264,274
Consumer credit			1,628,840						—						—						1,618,365
Accrued interest receivable			85,306						21						27,977						57,308
Financial Liabilities
Deposits:
Noninterest-bearing demand deposits			$	5,633,672					$	5,633,672					$	—					$	—
Checking, NOW, savings, and money market    interest-bearing deposits			10,280,911						10,180,911						99,957						—
Time deposits			1,122,870						—						1,140,922						—
Federal funds purchased and interbank borrowings			1,166						1,166						—						—
Securities sold under agreements to repurchase			431,166						431,166						—						—
FHLB advances			1,991,435						—						2,092,033						—
Other borrowings			252,787						—						254,612						—
Accrued interest payable			5,443						—						5,443						—
Standby letters of credit			462						—						—						462
Off-Balance Sheet Financial Instruments
Commitments to extend credit			$	—					$	—					$	—					$	11,822

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- Definition

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