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Fair Value (Tables)

12 Months Ended

Dec. 31, 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 December 31, 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			$	52,507		$	52,507		$	—		$	—
Investment securities available-for-sale:
U.S. Treasury			200,927			200,927			—			—
U.S. government-sponsored entities and agencies			1,175,080			—			1,175,080			—
Mortgage-backed securities - Agency			4,369,902			—			4,369,902			—
States and political subdivisions			663,852			—			663,852			—
Pooled trust preferred securities			10,811			—			10,811			—
Other securities			353,140			—			353,140			—
Residential loans held for sale			11,926			—			11,926			—
Derivative assets			169,001			—			169,001			—
Financial Liabilities
Derivative liabilities			380,704			—			380,704			—
						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			States and Political Subdivisions
Year Ended December 31, 2022
Balance at beginning of period			$	9,496		$	—
Accretion (amortization) of discount or premium			12			—
Increase (decrease) in fair value of securities			1,593			—
Transfers out of Level 3			(11,101)			—
Balance at end of period			$	—		$	—
Year Ended December 31, 2021
Balance at beginning of period			$	7,913		$	—
Accretion (amortization) of discount or premium			20			—
Sales/payments received			(27)			—
Increase (decrease) in fair value of securities			1,590			—
Balance at end of period			$	9,496		$	—
Year Ended December 31, 2020
Balance at beginning of period			$	8,222		$	40
Accretion (amortization) of discount or premium			15			—
Sales/payments received			(64)			(40)
Increase (decrease) in fair value of securities			(260)			—
Balance at end of period			$	7,913		$	—

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)

0.0%

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)

December 31, 2022

Collateral Dependent Loans

Commercial loans

$

22,562

Discounted cash flow

Discount for type of property, age of appraisal, and current status

10% - 47% (28%)

Commercial real estate loans

48,026

Discounted cash flow

Discount for type of property, age of appraisal, and current status

1% -26% (11%)

December 31, 2021

Collateral Dependent Loans

Commercial loans

$

2,364

Discounted cash flow

Discount for type of property, age of appraisal, and current status

14% - 15% (14%)

Commercial real estate loans

16,308

Discounted cash flow

Discount for type of property, age of appraisal, and current status

6% - 10% (8%)

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

Assets Measured at Fair Value on a Non-Recurring Basis

Assets measured at fair value on a non-recurring basis are summarized below:

						Fair Value Measurements at December 31, 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			$	22,562		$	—		$	—		$	22,562
Commercial real estate loans			48,026			—			—			48,026

Assets measured at fair value on a non-recurring basis at December 31, 2021 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			$	2,364		$	—		$	—		$	2,364
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
December 31, 2022
Residential loans held for sale			$	11,926		$	221		$	11,705
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
Year Ended December 31, 2022
Residential loans held for sale			$	(1,127)		$	10		$	(4)		$	(1,121)
Year Ended December 31, 2021
Residential loans held for sale			$	(2,139)		$	2		$	(6)		$	(2,143)

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 December 31, 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			$	728,412		$	728,412		$	—		$	—
Investment securities held-to-maturity:
U.S. government-sponsored entities and agencies			819,168			—			656,358			—
Mortgage-backed securities - Agency			1,106,817			—			982,963			—
State and political subdivisions			1,163,162			—			1,004,361			—
Loans, net:
Commercial			9,386,862			—			—			9,066,583
Commercial real estate			12,317,825			—			—			11,867,851
Residential real estate			6,438,525			—			—			5,372,491
Consumer credit			2,676,758			—			—			2,557,115
Accrued interest receivable			190,521			758			52,081			137,682
Financial Liabilities
Deposits:
Noninterest-bearing demand deposits			$	11,930,798		$	11,930,798		$	—		$	—
Checking, NOW, savings, and money market    interest-bearing deposits			20,056,252			20,056,252			—			—
Time deposits			3,013,780			—			2,976,389			—
Federal funds purchased and interbank borrowings			581,489			581,489			—			—
Securities sold under agreements to repurchase			432,804			432,804			—			—
FHLB advances			3,829,018			—			3,739,780			—
Other borrowings			743,003			—			703,156			—
Accrued interest payable			19,547			—			19,547			—
Standby letters of credit			755			—			—			755
Off-Balance Sheet Financial Instruments
Commitments to extend credit			$	—		$	—		$	—		$	3,666

						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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