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Fair Value Measurements (Tables) | 6 Months Ended
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Jun. 30, 2023
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
| June 30, 2023 |  | 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: |  |  |  |  |  |  |
Investment securities available for sale: |  |  |  |  |  |  |
U.S. Treasury securities | $ | 3,904 |  |  | $ | 3,904 |  |  | $ | — |  |  | $ | — |
U.S. Government agency and U.S. Government sponsored enterprises: |  |  |  |  |  |  |
Agency securities | 3,837 |  |  | — |  |  | 3,837 |  |  | — |
Collateralized mortgage obligations | 751,740 |  |  | — |  |  | 751,740 |  |  | — |
Mortgage-backed securities: |  |  |  |  |  |  |
Residential | 435,148 |  |  | — |  |  | 435,148 |  |  | — |
Commercial | 352,851 |  |  | — |  |  | 352,851 |  |  | — |
Asset-backed securities | 149,742 |  |  | — |  |  | 149,742 |  |  | — |
Corporate securities | 18,572 |  |  | — |  |  | 18,572 |  |  | — |
Municipal securities | 200,792 |  |  | — |  |  | 199,862 |  |  | 930 |
Equity investments with readily determinable fair value | 4,303 |  |  | 4,303 |  |  | — |  |  | — |
Interest rate contracts | 70,516 |  |  | — |  |  | 70,516 |  |  | — |
Mortgage banking derivatives | 25 |  |  | — |  |  | 25 |  |  | — |
Other derivatives | 120 |  |  | — |  |  | 120 |  |  | — |
Liabilities: |  |  |  |  |  |  |
Interest rate contracts | 72,840 |  |  | — |  |  | 72,840 |  |  | — |
Mortgage banking derivatives | 4 |  |  | — |  |  | 4 |  |  | — |
Other derivatives | 4,945 |  |  | — |  |  | 4,917 |  |  | 28 |
|  |  | Fair Value Measurements at the End of the Reporting Period Using
| December 31, 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: |  |  |  |  |  |  |
Investment securities available for sale: |  |  |  |  |  |  |
U.S. Treasury securities | $ | 3,886 |  |  | $ | 3,886 |  |  | $ | — |  |  | $ | — |
U.S. Government agency and U.S. Government sponsored enterprises: |  |  |  |  |  |  |
Agency securities | 3,867 |  |  | — |  |  | 3,867 |  |  | — |
Collateralized mortgage obligations | 793,699 |  |  | — |  |  | 793,699 |  |  | — |
Mortgage-backed securities: |  |  |  |  |  |  |
Residential | 453,177 |  |  | — |  |  | 453,177 |  |  | — |
Commercial | 368,287 |  |  | — |  |  | 368,287 |  |  | — |
Asset-backed securities | 147,604 |  |  | — |  |  | 147,604 |  |  | — |
Corporate securities | 18,857 |  |  | — |  |  | 18,857 |  |  | — |
Municipal securities | 182,752 |  |  | — |  |  | 181,809 |  |  | 943 |
Equity investments with readily determinable fair value | 4,303 |  |  | 4,303 |  |  | — |  |  | — |
Interest rate contracts | 73,389 |  |  | — |  |  | 73,389 |  |  | — |
Mortgage banking derivatives | 29 |  |  | — |  |  | 29 |  |  | — |
Other derivatives | 25,462 |  |  | — |  |  | 25,462 |  |  | — |
Liabilities: |  |  |  |  |  |  |
Interest rate contracts | 73,389 |  |  | — |  |  | 73,389 |  |  | — |
Mortgage banking derivatives | 23 |  |  | — |  |  | 23 |  |  | — |
Other derivatives | 2,160 |  |  | — |  |  | 2,128 |  |  | 32 |
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 six months ended June 30, 2023 and 2022:
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
|  | (Dollars in thousands)
Municipal securities: |  |  |  |  |  |  |  |
Beginning Balance |  | $ | 982 |  |  | $ | 1,029 |  |  | $ | 943 |  |  | $ | 1,038 |
Change in fair value included in other comprehensive income |  | (52) |  |  | (10) |  |  | (13) |  |  | (19) |
Ending Balance |  | $ | 930 |  |  | $ | 1,019 |  |  | $ | 930 |  |  | $ | 1,019 |
Risk participation agreements: |  |  |  |  |  |  |  |
Beginning Balance |  | $ | 35 |  |  | $ | 61 |  |  | $ | 32 |  |  | $ | 93 |
Change in fair value included in income (expense) |  | (7) |  |  | (30) |  |  | (4) |  |  | (62) |
Ending Balance |  | $ | 28 |  |  | $ | 31 |  |  | $ | 28 |  |  | $ | 31 |
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
| June 30, 2023 |  | 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 receivable at fair value: |  |  |  |  |  |  |
CRE loans | $ | 4,285 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,285 |
C&I loans | 21,195 |  |  | — |  |  | — |  |  | 21,195 |
Loans held for sale, net | 46,042 |  |  | — |  |  | 46,042 |  |  | — |
|  |  | Fair Value Measurements at the End of the Reporting Period Using
| December 31, 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 receivable at fair value: |  |  |  |  |  |  |
CRE loans | $ | 807 |  |  | $ | — |  |  | $ | — |  |  | $ | 807 |
C&I loans | 2,744 |  |  | — |  |  | — |  |  | 2,744 |
Loans held for sale, net | 48,795 |  |  | — |  |  | 48,795 |  |  | — |
OREO | 1,050 |  |  | — |  |  | — |  |  | 1,050 |
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:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
| (Dollars in thousands)
Assets: |  |  |  |  |  |  |
Collateral-dependent loans receivable at fair value: |  |  |  |  |  |  |
CRE loans | $ | (642) |  |  | $ | (763) |  |  | $ | (762) |  |  | $ | (1,374) |
C&I loans | (11,472) |  |  | (2,026) |  |  | (11,861) |  |  | (2,026) |
Loans held for sale, net | — |  |  | (371) |  |  | — |  |  | (988) |
OREO | — |  |  | — |  |  | (271) |  |  | (256) |
Carrying Amounts and Estimated Fair Values of Financial Instruments | Carrying amounts and estimated fair values of financial instruments, not previously presented, at June 30, 2023 and December 31, 2022, were as follows:
| June 30, 2023
| Carrying Amount |  | Estimated Fair Value |  | Fair Value Measurement Using
| (Dollars in thousands)
Financial Assets: |  |  |  |  |
Cash and cash equivalents | $ | 2,302,339 |  |  | $ | 2,302,339 |  |  | Level 1
Investment securities HTM | 269,760 |  |  | 255,344 |  |  | Level 2
Equity investments without readily determinable fair values | 38,660 |  |  | 38,660 |  |  | Level 2
Loans held for sale | 49,246 |  |  | 49,285 |  |  | Level 2
Loans receivable, net | 14,691,814 |  |  | 14,164,650 |  |  | Level 3
Accrued interest receivable | 60,118 |  |  | 60,118 |  |  | Level 2/3
Servicing assets, net | 11,532 |  |  | 16,814 |  |  | Level 3
Customers’ liabilities on acceptances | 659 |  |  | 659 |  |  | Level 2
Financial Liabilities: |  |  |  |  |
Noninterest bearing deposits | $ | 4,229,247 |  |  | $ | 4,229,247 |  |  | Level 2
Savings and other interest bearing demand deposits | 4,413,079 |  |  | 4,413,079 |  |  | Level 2
Time deposits | 6,977,026 |  |  | 7,007,072 |  |  | Level 2
FHLB and FRB borrowings | 2,260,000 |  |  | 2,253,222 |  |  | Level 2
Convertible notes | 444 |  |  | 441 |  |  | Level 1
Subordinated debentures | 107,188 |  |  | 104,804 |  |  | Level 2
Accrued interest payable | 109,236 |  |  | 109,236 |  |  | Level 2
Acceptances outstanding | 659 |  |  | 659 |  |  | Level 2
| December 31, 2022
| Carrying Amount |  | Estimated Fair Value |  | Fair Value Measurement Using
| (Dollars in thousands)
Financial Assets: |  |  |  |  |
Cash and cash equivalents | $ | 506,776 |  |  | $ | 506,776 |  |  | Level 1
Interest earning deposits in other financial institutions | 735 |  |  | 733 |  |  | Level 2
Investment securities HTM | 271,066 |  |  | 258,407 |  |  | Level 2
Equity investments without readily determinable fair values | 38,093 |  |  | 38,093 |  |  | Level 2
Loans held for sale | 49,245 |  |  | 49,248 |  |  | Level 2
Loans receivable, net | 15,241,181 |  |  | 14,745,881 |  |  | Level 3
Accrued interest receivable | 55,460 |  |  | 55,460 |  |  | Level 2/3
Servicing assets, net | 11,628 |  |  | 17,375 |  |  | Level 3
Customers’ liabilities on acceptances | 818 |  |  | 818 |  |  | Level 2
Financial Liabilities: |  |  |  |  |
Noninterest bearing deposits | $ | 4,849,493 |  |  | $ | 4,849,493 |  |  | Level 2
Savings and other interest bearing demand deposits | 5,899,248 |  |  | 5,899,248 |  |  | Level 2
Time deposits | 4,990,060 |  |  | 5,020,093 |  |  | Level 2
FHLB and FRB borrowings | 865,000 |  |  | 867,088 |  |  | Level 2
Convertible notes, net | 217,148 |  |  | 213,937 |  |  | Level 1
Subordinated debentures | 106,565 |  |  | 107,944 |  |  | Level 2
Accrued interest payable | 26,668 |  |  | 26,668 |  |  | Level 2
Acceptances outstanding | 818 |  |  | 818 |  |  | Level 2

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- 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 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -SubTopic 10 -Topic 820 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-3 + Details
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- 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 -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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