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Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
We utilize fair value measurements to record or disclose the fair value on certain assets and liabilities. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not available, we use present value techniques and other valuation methods to estimate the fair values of our financial instruments. These valuation models rely on market-based parameters when available, such as interest rate yield curves or credit spreads. Unobservable inputs may be based on management’s judgment assumptions and estimates related to credit quality, our future earnings, interest rates and other relevant inputs. These valuation methods require considerable judgment and the resulting estimates of fair value can be significantly affected by the assumptions made and the methods used.
ASC Topic 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The hierarchy is based on the transparency of the inputs used in the valuation process with the highest priority given to quoted prices available in active markets and the lowest priority to unobservable inputs where no active market exists. The three levels of inputs that may be used to measure fair value are as follows:
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means.
Level 3: Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own beliefs about the assumptions that market participants would use in pricing the assets or liabilities.
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input within the valuation hierarchy that is significant to the overall fair value measurement. Transfers between levels of the fair value hierarchy are recognized at the end of the reporting period.
The following table sets forth our assets and liabilities measured at fair value on a recurring basis as of:
Level 1Level 2Level 3
Quoted prices
in active
markets for
identical
assets		Significant
other
observable
inputs		Significant
unobservable
inputs		Total
Estimated
Fair
Value
June 30, 2025
Available-for-sale securities$32,605 $440,863 $— $473,468 
Loans held-for-sale— 90,781 — 90,781 
Mortgage servicing rights— — 84,736 84,736 
Derivative financial instruments - assets— 28,443 — 28,443 
Derivative financial instruments - liabilities— (18,176)— (18,176)
Total$32,605 $541,911 $84,736 $659,252 
December 31, 2024
Available-for-sale securities$31,730 $437,346 $— $469,076 
Loans held-for-sale— 61,825 — 61,825 
Mortgage servicing rights— — 84,258 84,258 
Derivative financial instruments - assets— 36,088 — 36,088 
Derivative financial instruments - liabilities— (22,863)— (22,863)
Total$31,730 $512,396 $84,258 $628,384 
For further details on our Level 3 inputs related to MSRs, see Note 4 - Mortgage Servicing Rights.
The following table presents a reconciliation for our Level 3 assets measured at fair value on a recurring basis:
For the three months ended
June 30,
For the six months ended
June 30,
2025202420252024
Balance, beginning of period$82,927 $78,416 $84,258 $76,701 
Total losses included in earnings(2,311)(938)(6,295)(1,254)
Purchases, issuances, sales and settlements:
Issuances4,120 3,266 6,773 5,297 
Balance, end of period$84,736 $80,744 $84,736 $80,744 
Certain financial assets and financial liabilities are regularly measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. Financial assets measured at fair value on a non-recurring basis during the reported periods include certain collateral dependent loans reported at the fair value of the underlying collateral if repayment is expected solely from the collateral and other real estate owned and foreclosed assets, which, upon initial recognition, were remeasured and reported at fair value through a charge-off to the allowance for credit losses, and subsequent to their initial recognition, were remeasured at fair value through a write-down included in other non-interest expense. The following table sets forth our assets and liabilities that were measured at fair value on a non-recurring basis as of:
Level 3
June 30,
2025		December 31,
2024
Collateral dependent loans:
Commercial and industrial$9,139 $12,430 
Commercial real estate3,515 — 
Residential real estate1,854 1,255 
Public finance— 5,766 
Consumer2 — 
Other— 2,232 
Total collateral dependent loans$14,510 $21,683 
Other real estate owned and foreclosed assets, net:
Commercial real estate$3,660 $2,911 
Residential real estate2,417 2,227 
Public finance5,301 — 
Other1,674 — 
Total other real estate owned and foreclosed assets, net:$13,052 $5,138 
The fair value of the financial assets in the table above utilizes the market approach valuation technique, with discount adjustments for differences between comparable sales.
Fair value of financial instruments not carried at fair value:
The carrying amounts and estimated fair values of financial instruments not carried at fair value are as follows as of:
Estimated Fair Value
Carrying
Value		TotalLevel 1Level 2Level 3
June 30, 2025
Assets:
Cash and cash equivalents$785,115 $785,115 $785,115 $— $— 
Securities held-to-maturity34,581 28,973 — 28,973 — 
Loans (excluding collateral dependent loans)6,452,419 6,365,068 — — 6,365,068 
Restricted equity securities24,776 24,776 — 24,776 — 
Accrued interest receivable33,904 33,904 — 2,295 31,609 
Liabilities:
Deposits (excluding demand deposits)$4,647,736 $4,641,513 $3,218,471 $1,423,042 $— 
Securities sold under agreements to repurchase11,173 11,173 — 11,173 — 
Subordinated debt, net76,066 73,672 — 73,672 — 
Accrued interest payable7,247 7,247 — 7,247 — 
December 31, 2024
Assets:
Cash and cash equivalents$615,917 $615,917 $615,917 $— $— 
Securities held-to-maturity35,242 29,563 — 29,563 — 
Loans (excluding collateral dependent loans)6,344,377 6,191,461 — — 6,191,461 
Restricted equity securities28,917 28,917 — 28,917 — 
Accrued interest receivable32,102 32,102 — 2,131 29,971 
Liabilities:
Deposits (excluding demand deposits)$4,445,237 $4,436,305 $2,879,662 $1,556,643 $— 
Securities sold under agreements to repurchase14,699 14,699 — 14,699 — 
FHLB advances135,000 135,000 — 135,000 — 
Subordinated debt, net75,841 73,326 — 73,326 — 
Accrued interest payable8,705 8,705 — 8,705 —