XML 46 R36.htm IDEA: XBRL DOCUMENT
v3.21.2

Fair Value of Assets and Liabilities (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2021
Fair Value Disclosures [Abstract] |
Fair value measurement of assets measured at fair value on a recurring basis | The following tables disclose the fair value measurement of assets and liabilities measured at fair value on a recurring basis:
|  |  | Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands) | Fair Value September 30, 2021 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Debt securities, available-for-sale |  |  |  |  |  |  |
U.S. government and federal agency | $ | 31,373 |  |  | — |  |  | 31,373 |  |  | — |
U.S. government sponsored enterprises | 47,051 |  |  | — |  |  | 47,051 |  |  | — |
State and local governments | 508,691 |  |  | — |  |  | 508,691 |  |  | — |
Corporate bonds | 198,119 |  |  | — |  |  | 198,119 |  |  | — |
Residential mortgage-backed securities | 5,491,345 |  |  | — |  |  | 5,491,345 |  |  | — |
Commercial mortgage-backed securities | 1,114,001 |  |  | — |  |  | 1,114,001 |  |  | — |
Loans held for sale, at fair value | 94,138 |  |  | — |  |  | 94,138 |  |  | — |
Interest rate caps | 553 |  |  | — |  |  | 553 |  |  | — |
Interest rate locks | 3,884 |  |  | — |  |  | 3,884 |  |  | — |
TBA hedge | 759 |  |  | — |  |  | 759 |  |  | — |
Total assets measured at fair value on a recurring basis | $ | 7,489,914 |  |  | — |  |  | 7,489,914 |  |  | — |
|  |  | Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands) | Fair Value December 31, 2020 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Debt securities, available-for-sale |  |  |  |  |  |  |
U.S. government and federal agency | $ | 38,588 |  |  | — |  |  | 38,588 |  |  | — |
U.S. government sponsored enterprises | 9,781 |  |  | — |  |  | 9,781 |  |  | — |
State and local governments | 1,416,683 |  |  | — |  |  | 1,416,683 |  |  | — |
Corporate bonds | 349,098 |  |  | — |  |  | 349,098 |  |  | — |
Residential mortgage-backed securities | 2,289,090 |  |  | — |  |  | 2,289,090 |  |  | — |
Commercial mortgage-backed securities | 1,234,574 |  |  | — |  |  | 1,234,574 |  |  | — |
Loans held for sale, at fair value | 166,572 |  |  | — |  |  | 166,572 |  |  | — |
Interest rate caps | 201 |  |  | — |  |  | 201 |  |  | — |
Interest rate locks | 8,605 |  |  | — |  |  | 8,605 |  |  | — |
Total assets measured at fair value on a recurring basis | $ | 5,513,192 |  |  | — |  |  | 5,513,192 |  |  | — |
TBA hedge | $ | 2,056 |  |  | — |  |  | 2,056 |  |  | — |
Total liabilities measured at fair value on a recurring basis | $ | 2,056 |  |  | — |  |  | 2,056 |  |  | — |
Fair value measurement of assets measured at fair value on a non-recurring basis | The following tables disclose the fair value measurement of assets with a recorded change during the period resulting from re-measuring the assets at fair value on a non-recurring basis:
|  |  | Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands) | Fair Value September 30, 2021 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Collateral-dependent impaired loans, net of ACL | 28,651 |  |  | — |  |  | — |  |  | 28,651 |
|  |  | Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands) | Fair Value December 31, 2020 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Other real estate owned | $ | 564 |  |  | — |  |  | — |  |  | 564 |
Collateral-dependent impaired loans, net of ACL | 26,749 |  |  | — |  |  | — |  |  | 26,749 |
Total assets measured at fair value on a non-recurring basis | $ | 27,313 |  |  | — |  |  | — |  |  | 27,313 |
Quantitative information about assets measured at fair value on a non-recurring basis for which Level 3 inputs were used | The following tables present additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized Level 3 inputs to determine fair value:
| Fair Value September 30, 2021 |  | Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands) |  | Valuation Technique |  | Unobservable Input |  | Range (Weighted-Average) 1
Collateral-dependent impaired loans, net of ACL | $ | 21,090 |  |  | Cost approach |  | Selling costs |  | 10.0% - 10.0% (10.0%)
| 7,561 |  |  | Sales comparison approach |  | Selling costs |  | 5.0% - 10.0% (5.1%)
|  |  |  |  | Adjustment to comparables |  | 5.0% - 10.0% (5.5%)
| $ | 28,651 |  |  |  |  |  |  |
| Fair Value December 31, 2020 |  | Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands) |  | Valuation Technique |  | Unobservable Input |  | Range (Weighted-Average) 1
Other real estate owned | $ | 564 |  |  | Sales comparison approach |  | Selling costs |  | 8.0% - 10.0% (9.0%)
Collateral-dependent loans, net of ACL | $ | 144 |  |  | Cost approach |  | Selling costs |  | 10.0% - 10.0% (10.0%)
| 25,309 |  |  | Sales comparison approach |  | Selling Costs |  | 10.0% - 10.0% (0.1%)
|  |  |  |  | Adjustment to comparables |  | 0.0% - 100.0% (11.1%)
| 1,296 |  |  | Combined approach |  | Selling costs |  | 10.0% - 10.0% (10.0%)
|  |  |  |  | Discount rate |  | 8.0% - 8.0% (8.0%)
| $ | 26,749 |  |  |  |  |  |  |
______________________________ 1 The range for selling cost inputs represents reductions to the fair value of the assets.
Carrying amounts and estimated fair values of financial instruments not carried at fair value | The following tables present the carrying amounts, estimated fair values and the level within the fair value hierarchy of the Company’s financial instruments not carried at fair value. Receivables and payables due in one year or less, equity securities without readily determinable fair values and deposits with no defined or contractual maturities are excluded. There have been no significant changes in the valuation techniques during the period ended September 30, 2021. Cash and cash equivalents: fair value is estimated at book value. Debt securities, held-to-maturity: fair value for held-to-maturity debt securities is estimated in the same manner as available-for sale debt securities, which is described above. Loans receivable, net of ACL: The loans were fair valued on an individual basis, with consideration given to the loans' underlying characteristics, including account types, remaining terms and balance, interest rates, past delinquencies, current market rates, etc. The model utilizes a discounted cash flow approach to estimate the fair value of the loans using various assumptions such as prepayment speeds, projected default probabilities, losses given defaults, etc. The discounted cash flow approach models the credit losses directly in the projected cash flows. The model applies various assumptions regarding credit, interest, and prepayment risks for the loans based on loan types, payment types and fixed or variable classifications. Term Deposits: fair value of term deposits is estimated by discounting the future cash flows using rates of similar deposits with similar maturities. The market rates used were obtained from an independent third party based on current rates offered by the Company’s regional competitors. Repurchase agreements and other borrowed funds: fair value of term repurchase agreements and other term borrowings is estimated based on current repurchase rates and borrowing rates currently available to the Company for repurchases and borrowings with similar terms and maturities. The estimated fair value for overnight repurchase agreements and other borrowings is book value. Subordinated debentures: fair value of the subordinated debt is estimated by discounting the estimated future cash flows using current estimated market rates obtained from an independent third party. Off-balance sheet financial instruments: unused lines of credit and letters of credit represent the principal categories of off-balance sheet financial instruments. The fair value of commitments is based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of unused lines of credit and letters of credit is not material; therefore, such commitments are not included in the following tables.
|  |  | Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands) | Carrying Amount September 30, 2021 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Financial assets |  |  |  |  |  |  |
Cash and cash equivalents | $ | 348,888 |  |  | 348,888 |  |  | — |  |  | — |
Debt securities, held-to-maturity | 1,128,299 |  |  | — |  |  | 1,146,453 |  |  | — |
Loans receivable, net of ACL | 11,140,282 |  |  | — |  |  | — |  |  | 11,352,711 |
Total financial assets | $ | 12,617,469 |  |  | 348,888 |  |  | 1,146,453 |  |  | 11,352,711 |
Financial liabilities |  |  |  |  |  |  |
Term deposits | $ | 919,852 |  |  | — |  |  | 922,810 |  |  | — |
Repurchase agreements and other borrowed funds | 1,074,610 |  |  | — |  |  | 1,074,610 |  |  | — |
Subordinated debentures | 132,580 |  |  | — |  |  | 130,081 |  |  | — |
Total financial liabilities | $ | 2,127,042 |  |  | — |  |  | 2,127,501 |  |  | — |
|  |  | Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands) | Carrying Amount December 31, 2020 |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Financial assets |  |  |  |  |  |  |
Cash and cash equivalents | $ | 633,142 |  |  | 633,142 |  |  | — |  |  | — |
Debt securities, held-to-maturity | 189,836 |  |  | — |  |  | 203,216 |  |  | — |
Loans receivable, net of ACL | 10,964,453 |  |  | — |  |  | — |  |  | 11,233,002 |
Total financial assets | $ | 11,787,431 |  |  | 633,142 |  |  | 203,216 |  |  | 11,233,002 |
Financial liabilities |  |  |  |  |  |  |
Term deposits | $ | 978,779 |  |  | — |  |  | 983,491 |  |  | — |
Repurchase agreements and other borrowed funds | 1,037,651 |  |  | — |  |  | 1,037,651 |  |  | — |
Subordinated debentures | 139,959 |  |  | — |  |  | 123,944 |  |  | — |
Total financial liabilities | $ | 2,156,389 |  |  | — |  |  | 2,145,086 |  |  | — |

X
- 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=123594938&loc=d3e13467-108611 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123874694&loc=d3e19207-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration