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Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements
NOTE 19 - FAIR VALUE MEASUREMENTS
The following tables present assets and liabilities measured at fair value on a recurring basis and reported on the consolidated balance sheets:
 2024
 Level 1Level 2Level 3Total
 (dollars in thousands)
Loans held for sale$— $25,618 $— $25,618 
Available for sale investment securities:
State and municipal securities— 814,887 — 814,887 
Corporate debt securities— 300,370 — 300,370 
Collateralized mortgage obligations— 788,885 — 788,885 
Residential mortgage-backed securities— 989,875 — 989,875 
Commercial mortgage-backed securities— 516,882 — 516,882 
Total available for sale investment securities— 3,410,899 — 3,410,899 
Other assets:
Investments held in Rabbi Trust35,093 — — 35,093 
Derivative assets1,682 159,939 — 161,621 
Total assets$36,775 $3,596,456 $— $3,633,231 
Other liabilities:
Deferred compensation liabilities$35,093 $— $— $35,093 
Derivative liabilities1,596 252,821 — 254,417 
Total liabilities$36,689 $252,821 $— $289,510 
 2023
 Level 1Level 2Level 3Total
 (dollars in thousands)
Loans held for sale$— $15,158 $— $15,158 
Available for sale investment securities:
U.S. Government securities42,161 — — 42,161 
U.S. Government-sponsored agency securities— 1,010 — 1,010 
State and municipal securities— 1,072,013 — 1,072,013 
Corporate debt securities— 440,551 — 440,551 
Collateralized mortgage obligations— 111,434 — 111,434 
Residential mortgage-backed securities— 196,795 — 196,795 
Commercial mortgage-backed securities— 534,388 — 534,388 
Total available for sale investment securities42,161 2,356,191 — 2,398,352 
Other assets:
Investments held in Rabbi Trust29,819 — — 29,819 
Derivative assets572 157,540 — 158,112 
Total assets$72,552 $2,528,889 $— $2,601,441 
Other liabilities:
Deferred compensation liabilities$29,819 $— $— $29,819 
Derivative liabilities477 246,157 — 246,634 
Total liabilities$30,296 $246,157 $— $276,453 

The valuation techniques used to measure fair value for the items in the preceding tables are as follows:

Loans held for sale - This category includes mortgage loans held for sale that are measured at fair value. Fair values as of December 31, 2024 and 2023, were measured as the price that secondary market investors were offering for loans with similar characteristics. See "Note 1 - Summary of Significant Accounting Policies" for details related to the Corporation's election to measure assets and liabilities at fair value.

Available for sale investment securities - Included in this asset category are debt securities. Level 2 investment securities are valued by a third-party pricing service. The pricing service uses pricing models that vary based on asset class and incorporate available market information, including quoted prices of investment securities with similar characteristics. Because many fixed
income securities do not trade on a daily basis, pricing models use available information, as applicable, through processes such as benchmark yield curves, benchmarking of like securities, sector groupings and matrix pricing.

Standard market inputs include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data, including market research publications. For certain security types, additional inputs may be used, or some of the standard market inputs may not be applicable.

•U.S. Government securities - These securities are classified as Level 1. Fair values are based on quoted prices with active markets.

•U.S. Government-sponsored agency securities/State and municipal securities/Collateralized mortgage obligations/Residential mortgage-backed securities/Commercial mortgage-backed securities - These debt securities are classified as Level 2. Fair values are determined by a third-party pricing service, as detailed above.

•Corporate debt securities - These securities are classified as Level 2. This category consists of subordinated and senior debt issued by financial institutions ($293.1 million at December 31, 2024 and $433.4 million at December 31, 2023) and other corporate debt issued by non-financial institutions ($7.3 million at December 31, 2024 and $7.2 million at December 31, 2023). The fair values for corporate debt securities are determined by a third-party pricing service as detailed above.

Investments held in Rabbi Trust - This category consists of mutual funds that are held in trust for employee deferred compensation plans that the Corporation has elected to measure at fair value. Shares of mutual funds are valued based on net asset value, which represents quoted market prices for the underlying shares held in the mutual funds, and as such, are classified as Level 1.

Derivative assets - Fair value of foreign currency exchange contracts classified as Level 1 assets ($1.7 million at December 31, 2024 and $0.6 million at December 31, 2023). The foreign exchange prices used to measure these items at fair value are based on quoted prices for identical instruments in active markets.

Level 2 assets, representing the fair value of mortgage banking derivatives in the form of interest rate locks and forward commitments with secondary market investors ($0.8 million at December 31, 2024 and $0.5 million at December 31, 2023) and the fair value of interest rate derivatives ($159.2 million at December 31, 2024 and $157.1 million at December 31, 2023). The fair values of the interest rate locks, forward commitments and interest rate derivatives represent the amounts that would be required to settle the derivative financial instruments at the balance sheet date. See "Note 11 - Derivative Financial Instruments," for additional information.

Deferred compensation liabilities - Fair value of amounts due to employees under deferred compensation plans, classified as Level 1 liabilities and are included in other liabilities on the consolidated balance sheets. The fair values of these liabilities are determined in the same manner as the related assets, as described under the heading "Investments held in Rabbi Trust" above.

Derivative liabilities - Level 1 liabilities, representing the fair value of foreign currency exchange contracts ($1.6 million and $0.5 million at December 31, 2024 and 2023, respectively).

Level 2 liabilities, representing the fair value of mortgage banking derivatives in the form of interest rate locks and forward commitments with secondary market investors ($0.1 million at December 31, 2024 and $0.9 million at December 31, 2023) and the fair value of interest rate derivatives ($252.8 million at December 31, 2024 and $245.6 million at December 31, 2023).

The fair values of these liabilities are determined in the same manner as the related assets, as described under the heading "Derivative assets" above.
Certain financial instruments are not measured at fair value on an ongoing basis but are subject to fair value measurement in certain circumstances, such as upon their acquisition or when there is evidence of impairment. The following table presents Level 3 financial assets measured at fair value on a nonrecurring basis:
20242023
 (dollars in thousands)
Loans, Net$168,668 $102,135 
OREO2,621 896 
MSRs(1)
53,972 49,696 
SBA servicing asset3,120 — 
Total assets$228,381 $152,727 
(1) Amounts shown are estimated fair value. MSRs are recorded on the Corporation's consolidated balance sheets at lower of amortized cost or fair value. See
"Note 8 - Mortgage Servicing Rights" for additional information.

The valuation techniques used to measure fair value for the items in the table above are as follows:

•Loans, net – This category consists of loans that were individually evaluated for impairment and have been classified as Level 3 assets. The amount shown is the balance of non-accrual loans, net of related ACL. See "Note 5 - Loans and Allowance for Credit Losses," for additional details.

•OREO – This category consists of OREO classified as Level 3 assets, for which the fair values were based on estimated selling prices less estimated selling costs for similar assets in active markets.

•MSRs – This category consists of MSRs, which were initially recorded at fair value upon the sale of residential mortgage loans to secondary market investors, and subsequently carried at the lower of amortized cost or fair value. MSRs are amortized as a reduction to servicing income over the estimated lives of the underlying loans. MSRs are stratified by product type and evaluated for impairment by comparing each stratum's carrying amount to its estimated fair value. Fair values are determined at the end of each quarter through a discounted cash flows valuation performed by a third-party valuation expert. Significant inputs to the valuation included expected net servicing income, the discount rate and the expected life of the underlying loans. Expected life is based on the contractual terms of the loans, as adjusted for prepayment projections. The weighted average annual constant prepayment rate and the weighted average discount rate used in the December 31, 2024 valuation were 7.9% and 9.5%, respectively. Management reviews the reasonableness of the significant inputs to the third-party valuation in comparison to market data. See "Note 8 - Mortgage Servicing Rights," for additional information. Changes in any of those inputs, in isolation, could result in a significantly different fair value measurement, as depicted in the table below:
Significant InputScenario Shock% Change in Valuation
Prepayment Rate+ 15%(4)%
Prepayment Rate- 15%4%
Discount Rate- 200 bps10%
Discount Rate+ 200 bps(9)%
•SBA servicing asset – This category consists of the retained servicing rights on SBA-guaranteed loans sold to investors. The standard sale structure under the SBA Secondary Participation Guaranty Agreement provides for the Corporation to retain a portion of the cash flow from the interest payment received on the SBA guaranteed portion of the loan, which is commonly known as a servicing spread. A third-party valuation expert is utilized to perform the modeling to estimate the fair value of the SBA servicing asset. Since the valuation model uses significant unobservable inputs, the SBA servicing asset is classified within Level 3.
The following table details the book values and the estimated fair values of the Corporation's financial instruments as of December 31, 2024 and 2023. A general description of the methods and assumptions used to estimate such fair values is also provided.
 2024
Estimated Fair Value
Carrying AmountLevel 1Level 2Level 3Total
FINANCIAL ASSETS(dollars in thousands)
Cash and cash equivalents$1,063,871 $1,063,871 $— $— $1,063,871 
FRB and FHLB stock139,574 — 139,574 — 139,574 
Loans held for sale 25,618 — 25,618 — 25,618 
AFS securities 3,410,899 — 3,410,899 — 3,410,899 
HTM securities1,395,569 — 1,183,449 — 1,183,449 
Loans, net23,665,763 — — 22,555,687 22,555,687 
Accrued interest receivable117,029 117,029 — — 117,029 
Other assets 736,502 543,251 159,939 59,713 762,903 
FINANCIAL LIABILITIES
Demand and savings deposits$21,135,478 $21,135,478 $— $— $21,135,478 
Brokered deposits843,857 145,056 698,647 — 843,703 
Time deposits4,150,098 — 4,154,726 — 4,154,726 
Accrued interest payable31,620 31,620 — — 31,620 
FHLB advances850,000 851,470 — — 851,470 
Senior debt and subordinated debt367,316 — 253,818 — 253,818 
Other borrowings564,732 544,908 901 — 545,809 
Other liabilities 467,011 200,029 252,821 14,161 467,011 
2023
Estimated Fair Value
Carrying AmountLevel 1Level 2Level 3Total
FINANCIAL ASSETS(dollars in thousands)
Cash and cash equivalents$549,710 $549,710 $— $— $549,710 
FRB and FHLB stock124,405 — 124,405 — 124,405 
Loans held for sale15,158 — 15,158 — 15,158 
AFS securities2,398,352 42,161 2,356,191 — 2,398,352 
HTM securities1,267,922 — 1,072,207 — 1,072,207 
Loans, net21,057,690 — — 19,930,560 19,930,560 
Accrued interest receivable107,972 107,972 — — 107,972 
Other assets661,067 452,935 157,540 50,592 661,067 
FINANCIAL LIABILITIES
Demand and savings deposits$17,653,690 $17,653,690 $— $— $17,653,690 
Brokered deposits1,144,692 145,987 999,392 — 1,145,379 
Time deposits2,739,241 — 2,714,709 — 2,714,709 
Accrued interest payable35,083 35,083 — — 35,083 
Federal funds purchased240,000 240,000 — — 240,000 
FHLB advances1,100,000 1,094,013 — — 1,094,013 
Senior debt and subordinated debt535,384 — 463,270 — 463,270 
Other borrowings612,142 611,269 837 — 612,106 
Other liabilities429,046 165,635 246,157 17,254 429,046 

Fair values of financial instruments are significantly affected by the assumptions used, principally the timing of future cash flows and discount rates. Because assumptions are inherently subjective in nature, the estimated fair values cannot be substantiated by comparison to independent market quotes and, in many cases, the estimated fair values could not necessarily be realized in an immediate sale or settlement of the instrument. The aggregate fair value amounts presented do not necessarily represent management's estimate of the underlying value of the Corporation.
For short-term financial instruments, defined as those with remaining maturities of 90 days or less, and excluding those recorded at fair value on the Corporation's consolidated balance sheets, book value was considered to be a reasonable estimate of fair value.

The following instruments are predominantly short-term:
Assets  Liabilities
Cash and cash equivalents  Demand and savings deposits
Accrued interest receivable  Other borrowings
  Accrued interest payable

FRB and FHLB stock represent restricted investments and are carried at cost on the consolidated balance sheets, which is a reasonable estimate of fair value.

As of December 31, 2024, fair values for loans and time deposits were estimated by discounting future cash flows using the current rates, as adjusted for liquidity considerations, at which similar loans would be made to borrowers and similar deposits would be issued to customers for the same remaining maturities. Fair values of loans also include estimated credit losses that would be assumed in a market transaction, which represents estimated exit prices.

Brokered deposits consist of demand and saving deposits, which are classified as Level 1, and time deposits, which are classified as Level 2. The fair value of these deposits is determined in a manner consistent with the respective type of deposit discussed above.