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Fair Value (Tables)

9 Months Ended

Sep. 30, 2022

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 September 30, 2022 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			$	51,846					$	51,846					$	—					$	—
Investment securities available-for-sale:
U.S. Treasury			193,605						193,605						—						—
U.S. government-sponsored entities and agencies			1,175,457						—						1,175,457						—
Mortgage-backed securities - Agency			4,459,527						—						4,459,527						—
States and political subdivisions			675,047						—						675,047						—
Pooled trust preferred securities			11,322						—						11,322						—
Other securities			348,022						—						348,022						—
Residential loans held for sale			19,748						—						19,748						—
Derivative assets			148,578						—						148,578						—
Financial Liabilities
Derivative liabilities			399,558						—						399,558						—

									Fair Value Measurements at December 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			$	13,211					$	13,211					$	—					$	—
Investment securities available-for-sale:
U.S. Treasury			235,584						235,584						—						—
U.S. government-sponsored entities and agencies			1,542,773						—						1,542,773						—
Mortgage-backed securities - Agency			3,698,831						—						3,698,831						—
States and political subdivisions			1,654,986						—						1,654,986						—
Pooled trust preferred securities			9,496						—						—						9,496
Other securities			240,396						—						240,396						—
Residential loans held for sale			35,458						—						35,458						—
Derivative assets			74,226						—						74,226						—
Financial Liabilities
Derivative liabilities			41,872						—						41,872						—

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
Three Months Ended September 30, 2022
Balance at beginning of period			$	—
Accretion of discount			—
Increase in fair value of securities			—
Balance at end of period			$	—
Three Months Ended September 30, 2021
Balance at beginning of period			$	9,388
Accretion of discount			4
Decrease in fair value of securities			(25)
Balance at end of period			$	9,367
Nine Months Ended September 30, 2022
Balance at beginning of period			$	9,496
Accretion of discount			12
Increase in fair value of securities			1,593
Transfers out of Level 3			(11,101)
Balance at end of period			$	—
Nine Months Ended September 30, 2021
Balance at beginning of period			$	7,913
Accretion of discount			14
Sales/payments received			(27)
Increase in fair value of securities			1,467
Balance at end of period			$	9,367

Schedule of 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)

December 31, 2021

Pooled trust preferred securities

$

9,496

Discounted cash flow

Constant prepayment rate (1)

0.00%

Additional asset defaults (2)

5.7% - 8.5% (6.5%)

Expected asset recoveries (3)

0.0% - 46.0% (14.1%)

(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) (1)

September 30, 2022

Collateral Dependent Loans

Commercial loans

$

29,500

Discounted

Discount for type of property,

4% - 32% (22%)

cash flow

age of appraisal, and current status

Commercial real estate loans

44,401

Discounted

Discount for type of property,

1% - 28% (15%)

cash flow

age of appraisal, and current status

Foreclosed Assets

Commercial real estate (1)

278

Fair value of

Discount for type of property,

46%

collateral

age of appraisal, and current status

December 31, 2021

Collateral Dependent Loans

Commercial loans

$

2,634

Discounted

Discount for type of property,

14% - 15% (14%)

cash flow

age of appraisal, and current status

Commercial real estate loans

16,308

Discounted

Discount for type of property,

6% - 10% (8%)

cash flow

age of appraisal, and current status

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

Schedule of Assets Measured at Fair Value on a Non-Recurring Basis

Assets measured at fair value at September 30, 2022 on a non-recurring basis are summarized below:

									Fair Value Measurements at September 30, 2022 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			$	29,500					$	—					$	—					$	29,500
Commercial real estate loans			44,401						—						—						44,401
Foreclosed Assets:
Commercial			278						—						—						278

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

									Fair Value Measurements at December 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			$	2,634					$	—					$	—					$	2,634
Commercial real estate loans			16,308						—						—						16,308
Loan servicing rights			140						—						140						—

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
September 30, 2022
Residential loans held for sale			$	19,748					$	(426)					$	20,174
December 31, 2021
Residential loans held for sale			$	35,458					$	1,342					$	34,116

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 September 30, 2022
Residential loans held for sale			$	(710)					$	1					$	—					$	(709)
Three Months Ended September 30, 2021
Residential loans held for sale			$	(453)					$	—					$	(2)					$	(455)
Nine Months Ended September 30, 2022
Residential loans held for sale			$	(1,775)					$	7					$	—					$	(1,768)
Nine Months Ended September 30, 2021
Residential loans held for sale			$	(2,043)					$	2					$	(3)					$	(2,044)

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 September 30, 2022 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			$	801,611					$	801,611					$	—					$	—
Investment securities held-to-maturity:
U.S. government-sponsored entities and agencies			817,489						—						658,435						—
Mortgage-backed securities - Agency			1,124,714						—						1,001,146						—
State and political subdivisions			1,154,364						—						940,859						—
Loans, net:
Commercial			9,197,495						—						—						9,093,210
Commercial real estate			12,082,870						—						—						11,933,915
Residential real estate			6,246,050						—						—						5,689,328
Consumer credit			2,700,264						—						—						2,726,540
Accrued interest receivable			166,699						997						42,119						123,583
Financial Liabilities
Deposits:
Noninterest-bearing demand deposits			$	12,400,077					$	12,400,077					$	—					$	—
Checking, NOW, savings, and money market    interest-bearing deposits			21,182,255						21,182,255						—						—
Time deposits			2,471,331						—						2,426,080						—
Federal funds purchased and interbank borrowings			301,031						301,031						—						—
Securities sold under agreements to repurchase			438,053						438,053						—						—
FHLB advances			2,804,617						—						2,717,824						—
Other borrowings			721,049						—						587,370						—
Accrued interest payable			8,774						—						8,774						—
Standby letters of credit			904						—						—						904
Off-Balance Sheet Financial Instruments
Commitments to extend credit			$	—					$	—					$	—					$	3,708

									Fair Value Measurements at December 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			$	822,019					$	822,019					$	—					$	—
Loans, net:
Commercial			3,363,175						—						—						3,335,009
Commercial real estate			6,315,574						—						—						6,211,854
Residential real estate			2,245,942						—						—						2,216,900
Consumer credit			1,569,814						—						—						1,582,600
Accrued interest receivable			84,109						688						35,790						47,631
Financial Liabilities
Deposits:
Noninterest-bearing demand deposits			$	6,303,106					$	6,303,106					$	—					$	—
Checking, NOW, savings, and money market    interest-bearing deposits			11,305,676						11,305,676						—						—
Time deposits			960,413						—						968,658						—
Federal funds purchased and interbank borrowings			276						276						—						—
Securities sold under agreements to repurchase			392,275						392,275						—						—
FHLB advances			1,886,019						—						1,935,140						—
Other borrowings			296,670						—						311,532						—
Accrued interest payable			5,496						—						5,496						—
Standby letters of credit			454						—						—						454
Off-Balance Sheet Financial Instruments
Commitments to extend credit			$	—					$	—					$	—					$	4,678

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- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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