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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below:

									Fair Value Measurements at the End of the Reporting Period Using
			September 30, 2022						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
			(Dollars in thousands)
Assets:
Securities available for sale:
U.S. Treasury securities			$	3,889					$	3,889					$	—					$	—
U.S. Government agency and U.S. Government sponsored enterprises:
Agency securities			3,875						—						3,875						—
Collateralized mortgage obligations			824,327						—						824,327						—
Mortgage-backed securities:
Residential			456,590						—						456,590						—
Commercial			379,615						—						379,615						—
Asset-backed securities			143,903						—						143,903						—
Corporate securities			18,715						—						18,715						—
Municipal securities			162,434						—						161,520						914
Equity investments with readily determinable fair value			4,294						4,294						—						—
Interest rate swaps			74,853						—						74,853						—
Mortgage banking derivatives			42						—						42						—
Other derivatives			27,343						—						27,343						—
Liabilities:
Interest rate swaps			74,853						—						74,853						—
Mortgage banking derivatives			42						—						42						—
Other derivatives			163						—						143						20

									Fair Value Measurements at the End of the Reporting Period Using
			December 31, 2021						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
			(Dollars in thousands)
Assets:
Securities available for sale:
U.S. Government agency and U.S. Government sponsored enterprises:
Collateralized mortgage obligations			$	1,026,430					$	—					$	1,026,430					$	—
Mortgage-backed securities:
Residential			759,224						—						759,224						—
Commercial			599,402						—						599,402						—
Asset-backed securities			153,451						—						153,451						—
Corporate securities			22,484						—						22,484						—
Municipal securities			105,284						—						104,246						1,038
Equity investments with readily determinable fair value			26,823						26,823						—						—
Interest rate swaps			17,907						—						17,907						—
Mortgage banking derivatives			247						—						247						—
Other derivatives			2,291						—						2,291						—
Liabilities:
Interest rate swaps			17,907						—						17,907						—
Mortgage banking derivatives			76						—						76						—
Other derivatives			93						—						—						93

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The table below presents a reconciliation and income statement classification of gains (losses) for the municipal security and risk participation agreements measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2022 and 2021:

						Three Months Ended September 30,												Nine Months Ended September 30,
						2022						2021						2022						2021
						(Dollars in thousands)
Municipal securities:
Beginning Balance						$	1,019					$	1,058					$	1,038					$	1,022
Change in fair value included in other comprehensive income (loss)						(105)						(3)						(124)						33
Ending Balance						$	914					$	1,055					$	914					$	1,055
Risk participation agreements:
Beginning Balance						$	31					$	64					$	93					$	398
Change in fair value included in income (expense)						(11)						(12)						(73)						(346)
Ending Balance						$	20					$	52					$	20					$	52

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 the End of the Reporting Period Using
			September 30, 2022						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
			(Dollars in thousands)
Assets:
Collateral dependent loans at fair value:
Real estate loans			$	6,368					$	—					$	—					$	6,368
Commercial business			5,794						—						—						5,794
OREO			1,050						—						—						1,050

									Fair Value Measurements at the End of the Reporting Period Using
			December 31, 2021						Quoted Prices in Active Markets for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
			(Dollars in thousands)
Assets:
Collateral dependent loans at fair value:
Real estate loans			$	12,293					$	—					$	—					$	12,293
Commercial business			3,656						—						—						3,656
Loans held for sale, net			26,154						—						26,154						—
OREO			2,167						—						—						2,167

For assets measured at fair value on a non-recurring basis, the total net losses, which include charge offs, recoveries, recorded ACL, valuations, and recognized gains and losses on sales are summarized below:

			For the Three Months Ended September 30,												For the Nine Months Ended September 30,
			2022						2021						2022						2021
			(Dollars in thousands)
Assets:
Collateral dependent loans at fair value:
Real estate loans			$	(962)					$	(1,083)					$	(1,573)					$	(1,496)
Commercial business			(3,323)						(2,025)						(3,323)						(2,025)
Loans held for sale, net			—						(6,121)						—						(17,900)
OREO			(337)						(259)						(593)						(582)

Carrying Amounts and Estimated Fair Values of Financial Instruments

Carrying amounts and estimated fair values of financial instruments, not previously presented, at September 30, 2022 and December 31, 2021 were as follows:

			September 30, 2022
			Carrying Amount						Estimated Fair Value						Fair Value Measurement Using
			(Dollars in thousands)
Financial Assets:
Cash and cash equivalents			$	331,336					$	331,336					Level 1
Interest bearing deposits in other financial institutions			3,968						3,945						Level 2
Investment securities HTM			271,185						258,677						Level 2
Equity investments without readily determinable fair values			38,030						38,030						Level 2
Loans held for sale			41,989						43,973						Level 2
Loans receivable, net			15,330,626						14,937,811						Level 3
Accrued interest receivable			42,363						42,363						Level 2/3
Servicing assets, net			11,601						16,650						Level 3
Customers’ liabilities on acceptances			570						570						Level 2
Financial Liabilities:
Noninterest bearing deposits			$	5,590,952					$	5,590,952					Level 2
Saving and other interest bearing demand deposits			6,202,934						6,202,934						Level 2
Time deposits			3,708,323						3,706,939						Level 2
FHLB and FRB borrowings			1,072,000						1,072,080						Level 2
Convertible notes, net			216,913						211,562						Level 1
Subordinated debentures			106,258						107,870						Level 2
Accrued interest payable			11,713						11,713						Level 2
Acceptances outstanding			570						570						Level 2
			December 31, 2021
			Carrying Amount						Estimated Fair Value						Fair Value Measurement Using
			(Dollars in thousands)
Financial Assets:
Cash and cash equivalents			$	316,266					$	316,266					Level 1
Interest bearing deposits in other financial institutions			12,851						12,853						Level 2
Equity investments without readily determinable fair values			31,037						31,037						Level 2
Loans held for sale			99,049						103,767						Level 2
Loans receivable, net			13,812,193						13,698,579						Level 3
Accrued interest receivable			41,842						41,842						Level 2/3
Servicing assets, net			10,418						13,500						Level 3
Customers’ liabilities on acceptances			1,521						1,521						Level 2
Financial Liabilities:
Noninterest bearing deposits			$	5,751,870					$	5,751,870					Level 2
Saving and other interest bearing demand deposits			6,500,227						6,500,227						Level 2
Time deposits			2,788,353						2,790,596						Level 2
FHLB advances			300,000						301,936						Level 2
Convertible notes, net			216,209						214,612						Level 1
Subordinated debentures			105,354						117,961						Level 2
Accrued interest payable			4,272						4,272						Level 2
Acceptances outstanding			1,521						1,521						Level 2

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

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-Topic 820
-SubTopic 10
-Section 50
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Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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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

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