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v3.23.3

Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 2023
Fair Value Disclosures [Abstract] |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present for each of the fair value hierarchy levels the Company’s financial assets and liabilities that are measured at fair value on a recurring basis on the consolidated balance sheets at September 30, 2023 and December 31, 2022:
﻿ |  | September 30, 2023 |
($ in thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Available for sale debt securities: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and government agency securities |  | $ | — |  |  | $ | 114,190 |  |  | $ | — |  |  | $ | 114,190 |
Municipal obligations |  |  | — |  |  |  | 193,111 |  |  |  | — |  |  |  | 193,111 |
Corporate debt securities |  |  | — |  |  |  | 20,107 |  |  |  | — |  |  |  | 20,107 |
Residential mortgage-backed securities |  |  | — |  |  |  | 1,960,567 |  |  |  | — |  |  |  | 1,960,567 |
Commercial mortgage-backed securities |  |  | — |  |  |  | 2,841,351 |  |  |  | — |  |  |  | 2,841,351 |
Collateralized mortgage obligations |  |  | — |  |  |  | 58,830 |  |  |  | — |  |  |  | 58,830 |
Total available for sale securities |  |  | — |  |  |  | 5,188,156 |  |  |  | — |  |  |  | 5,188,156 |
Mortgage loans held for sale |  |  | — |  |  |  | 13,298 |  |  |  | — |  |  |  | 13,298 |
Derivative assets (1) |  |  | — |  |  |  | 124,431 |  |  |  | — |  |  |  | 124,431 |
Total recurring fair value measurements - assets |  | $ | — |  |  | $ | 5,325,885 |  |  | $ | — |  |  | $ | 5,325,885 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Derivative liabilities (1) |  | $ | — |  |  | $ | 306,237 |  |  | $ | 1,432 |  |  | $ | 307,669 |
Total recurring fair value measurements - liabilities |  | $ | — |  |  | $ | 306,237 |  |  | $ | 1,432 |  |  | $ | 307,669 |
﻿ |  | December 31, 2022 |
($ in thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets |  |  |  |  |  |  |  |  |  |  |  |
Available for sale debt securities: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and government agency securities |  | $ | — |  |  | $ | 110,865 |  |  | $ | — |  |  | $ | 110,865 |
Municipal obligations |  |  | — |  |  |  | 203,092 |  |  |  | — |  |  |  | 203,092 |
Corporate debt securities |  |  | — |  |  |  | 21,080 |  |  |  | — |  |  |  | 21,080 |
Residential mortgage-backed securities |  |  | — |  |  |  | 2,256,986 |  |  |  | — |  |  |  | 2,256,986 |
Commercial mortgage-backed securities |  |  | — |  |  |  | 2,893,430 |  |  |  | — |  |  |  | 2,893,430 |
Collateralized mortgage obligations |  |  | — |  |  |  | 70,588 |  |  |  | — |  |  |  | 70,588 |
Total available for sale securities |  |  | — |  |  |  | 5,556,041 |  |  |  | — |  |  |  | 5,556,041 |
Mortgage loans held for sale |  |  | — |  |  |  | 10,843 |  |  |  | — |  |  |  | 10,843 |
Derivative assets (1) |  |  | — |  |  |  | 109,497 |  |  |  | — |  |  |  | 109,497 |
Total recurring fair value measurements - assets |  | $ | — |  |  | $ | 5,676,381 |  |  | $ | — |  |  | $ | 5,676,381 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Derivative liabilities (1) |  | $ | — |  |  | $ | 202,238 |  |  | $ | 1,883 |  |  | $ | 204,121 |
Total recurring fair value measurements - liabilities |  | $ | — |  |  | $ | 202,238 |  |  | $ | 1,883 |  |  | $ | 204,121 |
(1) For further disaggregation of derivative assets and liabilities, see Note 5 - Derivatives.
Consolidated Balance Sheets for Financial Instruments of Material Nature Measured at Fair Value on Recurring Basis | The table below presents a rollforward of the amounts on the consolidated balance sheets for the nine months ended September 30, 2023 and the year ended December 31, 2022 for financial instruments of a material nature that are classified within level 3 of the fair value hierarchy and are measured at fair value on a recurring basis:
($ in thousands) |  |  |
Balance at December 31, 2021 |  | $ | 4,116 |
Cash settlement |  |  | (2,429 | )
Losses included in earnings |  |  | 196 |
Balance at December 31, 2022 |  |  | 1,883 |
Cash settlement |  |  | (1,997 | )
Losses included in earnings |  |  | 1,546 |
Balance at September 30, 2023 |  | $ | 1,432 |
Overview of the Valuation Techniques and Significant Unobservable Inputs | The table below provides an overview of the valuation techniques and significant unobservable inputs used in those techniques to measure the financial instrument measured on a recurring basis and classified within level 3 of the valuation. The range of sensitivities that management utilized in its fair value calculations is deemed acceptable in the industry with respect to the identified financial instrument.
($ in thousands) |  |  |  |  |  |
﻿ |  | Fair Value |
Level 3 Class |  | September 30, 2023 |  |  | December 31, 2022 |
Derivative liability |  | $ | 1,432 |  |  | $ | 1,883 |
Valuation technique |  | Discounted cash flow |  |  | Discounted cash flow |
Unobservable inputs: |  |  |  |  |  |
Visa Class A appreciation - range |  | 6-12% |  |  | 6-12% |
Visa Class A appreciation - weighted average |  | 9% |  |  | 9% |
Conversion rate - range |  | 1.60 x-1.59 x |  |  | 1.61 x-1.60 x |
Conversion rate -weighted average |  | 1.5950 x |  |  | 1.6030 x |
Time until resolution |  | 3-9 months |  |  | 3-12 months |
Financial Assets Measured at Fair Value on Nonrecurring Basis | The following tables present the Company’s financial assets that are measured at fair value on a nonrecurring basis for each of the fair value hierarchy levels.
﻿ |  | September 30, 2023 |
($ in thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Collateral-dependent loans individually evaluated for credit loss |  | $ | — |  |  | $ | 17,658 |  |  | $ | — |  |  | $ | 17,658 |
Other real estate owned and foreclosed assets, net |  |  | — |  |  |  | — |  |  |  | 4,527 |  |  |  | 4,527 |
Total nonrecurring fair value measurements |  | $ | — |  |  | $ | 17,658 |  |  | $ | 4,527 |  |  | $ | 22,185 |
﻿ |  | December 31, 2022 |
($ in thousands) |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Collateral-dependent loans individually evaluated for credit loss |  | $ | — |  |  | $ | 4,692 |  |  | $ | — |  |  | $ | 4,692 |
Other real estate owned and foreclosed assets, net |  |  | — |  |  |  | — |  |  |  | 2,017 |  |  |  | 2,017 |
Total nonrecurring fair value measurements |  | $ | — |  |  | $ | 4,692 |  |  | $ | 2,017 |  |  | $ | 6,709 |
Estimated Fair Values of Financial Instruments | The following tables present the estimated fair values of the Company’s financial instruments by fair value hierarchy levels and the corresponding carrying amounts.
﻿ | September 30, 2023 |
﻿ |  |  |  |  |  |  | Total Fair |  | Carrying |
($ in thousands) | Level 1 |  | Level 2 |  | Level 3 |  | Value |  | Amount |
Financial assets: |  |  |  |  |  |  |  |  |  |
Cash, interest-bearing bank deposits, and federal funds sold | $ | 1,359,300 |  | $ | — |  | $ | — |  | $ | 1,359,300 |  | $ | 1,359,300 |
Available for sale securities |  | — |  |  | 5,188,156 |  |  | — |  |  | 5,188,156 |  |  | 5,188,156 |
Held to maturity securities |  | — |  |  | 2,430,287 |  |  | — |  |  | 2,430,287 |  |  | 2,727,945 |
Loans, net |  | — |  |  | 17,658 |  |  | 23,058,357 |  |  | 23,076,015 |  |  | 23,677,388 |
Loans held for sale |  | — |  |  | 15,862 |  |  | — |  |  | 15,862 |  |  | 15,862 |
Derivative financial instruments |  | — |  |  | 124,431 |  |  | — |  |  | 124,431 |  |  | 124,431 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |
Deposits | $ | — |  | $ | — |  | $ | 30,298,620 |  | $ | 30,298,620 |  | $ | 30,320,337 |
Federal funds purchased |  | 350 |  |  | — |  |  | — |  |  | 350 |  |  | 350 |
Securities sold under agreements to repurchase |  | 525,578 |  |  | — |  |  | — |  |  | 525,578 |  |  | 525,578 |
FHLB short-term borrowings |  | — |  |  | 899,995 |  |  | — |  |  | 899,995 |  |  | 900,000 |
Long-term debt |  | — |  |  | 183,901 |  |  | — |  |  | 183,901 |  |  | 236,279 |
Derivative financial instruments |  | — |  |  | 306,237 |  |  | 1,432 |  |  | 307,669 |  |  | 307,669 |
﻿ | December 31, 2022 |
($ in thousands) | Level 1 |  | Level 2 |  | Level 3 |  | Total Fair Value |  | Carrying Amount |
Financial assets: |  |  |  |  |  |  |  |  |  |
Cash, interest-bearing bank deposits, and federal funds sold | $ | 888,519 |  | $ | — |  | $ | — |  | $ | 888,519 |  | $ | 888,519 |
Available for sale securities |  | — |  |  | 5,556,041 |  |  | — |  |  | 5,556,041 |  |  | 5,556,041 |
Held to maturity securities |  | — |  |  | 2,615,398 |  |  | — |  |  | 2,615,398 |  |  | 2,852,495 |
Loans, net |  | — |  |  | 4,692 |  |  | 22,132,683 |  |  | 22,137,375 |  |  | 22,806,257 |
Loans held for sale |  | — |  |  | 26,385 |  |  | — |  |  | 26,385 |  |  | 26,385 |
Derivative financial instruments |  | — |  |  | 109,497 |  |  | — |  |  | 109,497 |  |  | 109,497 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |
Deposits | $ | — |  | $ | — |  | $ | 29,041,635 |  | $ | 29,041,635 |  | $ | 29,070,349 |
Federal funds purchased |  | 1,850 |  |  | — |  |  | — |  |  | 1,850 |  |  | 1,850 |
Securities sold under agreements to repurchase |  | 444,421 |  |  | — |  |  | — |  |  | 444,421 |  |  | 444,421 |
FHLB short-term borrowings |  | 1,425,000 |  |  | — |  |  | — |  |  | 1,425,000 |  |  | 1,425,000 |
Long-term debt |  | — |  |  | 200,060 |  |  | — |  |  | 200,060 |  |  | 242,077 |
Derivative financial instruments |  | — |  |  | 202,238 |  |  | 1,883 |  |  | 204,121 |  |  | 204,121 |

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