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Fair Value Measurements (Tables)

6 Months Ended

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

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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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

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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.

+ References

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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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-Topic 820
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-Name Accounting Standards Codification
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