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Commitments and Contingencies | 9 Months Ended
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Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and contingencies Commitments to extend credit and letters of credit The Company issues certain financial instruments to meet customer financing needs, including loan commitments, credit lines and letters of credit. The agreements associated with these type of unfunded loan commitments provide credit or support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. The same credit and underwriting policies the Company uses to evaluate and underwrite loans are also used to originate unfunded loan commitments, including obtaining collateral at exercise of the commitment. These unfunded loan commitments are only recorded in the consolidated financial statements when drawn upon and many expire without being used. The Company’s maximum off-balance sheet exposure to credit loss from these unfunded loan commitments is represented by the contractual amount of these instruments.
|  | September 30, |  | December 31,
|  | 2024 |  |  | 2023 |
Commitments to extend credit, excluding interest rate lock commitments |  | $ | 2,713,360 |  |  | $ | 2,906,016 |
Letters of credit |  | 82,284 |  |  | 77,055 |
Balance at end of period |  | $ | 2,795,644 |  |  | $ | 2,983,071 |
As of September 30, 2024 and December 31, 2023, unfunded loan commitments included above with floating interest rates totaled $2,551,217 and $2,459,669, respectively. As part of the credit loss process, the Company estimates expected credit losses on its unfunded loan commitments under the CECL methodology. When applying this methodology, the Company considers the likelihood that funding will occur, the contractual period of exposure to credit loss, the risk of loss, historical loss experience, and current conditions along with expectations of future economic conditions. The table below presents activity within the allowance for credit losses on unfunded loan commitments included in accrued expenses and other liabilities on the Company’s consolidated balance sheets:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2024 |  | 2023 |  | 2024 |  |  | 2023 |  |
Balance at beginning of period |  | $ | 5,984 |  | $ | 14,810 |  |  | $ | 8,770 |  |  | $ | 22,969 |  |
Provision for (reversal of) credit losses on unfunded commitments |  | 58 |  | (3,210) |  |  | (2,728) |  |  | (11,369) |  |
Balance at end of period |  | $ | 6,042 |  | $ | 11,600 |  |  | $ | 6,042 |  |  | $ | 11,600 |  |
Loan repurchases or indemnifications In connection with the sale of mortgage loans to third-party private investors or government sponsored agencies, the Company makes representations and warranties as to the propriety of its origination activities, which are typical and customary to these types of transactions. Occasionally, investors require the Company to repurchase loans sold to them or otherwise indemnify the investor against certain losses under the terms of the warranties. When the Company is required to repurchase the loans, the loans are recorded at fair value in loans HFI. The total principal amount of loans repurchased (or indemnified for) was $1,382 and $4,893 for the three and nine months ended September 30, 2024, respectively and $1,631 and $6,328 for the three and nine months ended September 30, 2023, respectively. The Company maintains a reserve associated with potential losses on loans previously sold included in accrued expenses and other liabilities on the Company's consolidated balance sheets. The following table summarizes this activity:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |  |
Balance at beginning of period |  | $ | 811 |  |  | $ | 1,129 |  |  | $ | 899 |  |  | $ | 1,621 |  |
Provision for (reversal of) loan repurchases or indemnifications |  | 75 |  |  | (200) |  |  | 200 |  |  | (650) |  |
Losses on loans repurchased or indemnified |  | (178) |  |  | — |  |  | (391) |  |  | (42) |  |
Balance at end of period |  | $ | 708 |  |  | $ | 929 |  |  | $ | 708 |  |  | $ | 929 |  |
Legal Proceedings Various legal claims arise from time to time in the normal course of business, which, in the opinion of management, will not have a material effect on the Company’s consolidated financial statements.

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