v3.25.2
Fair Value
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Fair Value
The following table summarizes assets measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:
June 30, 2025
(Dollars in thousands)Level 1
Inputs		Level 2
Inputs		Level 3
Inputs		Total
Fair Value
Financial Assets:
AFS debt securities$— $1,242,285 $— $1,242,285 
Equity securities with a readily determinable fair value9,980 — — 9,980 
LHFS(1)
— 68,798 — 68,798 
Interest rate derivatives designated as hedging instruments— 9,735 — 9,735 
Correspondent interest rate derivatives not designated as hedging instruments— 13,006 — 13,006 
Customer interest rate derivatives not designated as hedging instruments— 6,652 — 6,652 
Financial Liabilities:
Interest rate derivatives designated as hedging instruments$— $30,196 $— $30,196 
Correspondent interest rate derivatives not designated as hedging instruments— 7,079 — 7,079 
Customer interest rate derivatives not designated as hedging instruments— 12,383 — 12,383 
(1) Represents LHFS elected to be carried at fair value upon origination or acquisition.
 December 31, 2024
(Dollars in thousands)Level 1
Inputs		Level 2
Inputs		Level 3
Inputs		Total
Fair Value
Financial Assets:
 AFS debt securities$— $1,294,512 $— $1,294,512 
Equity securities with a readily determinable fair value9,781 — — 9,781 
LHFS(1)
— 88,405 — 88,405 
Interest rate derivatives designated as hedging instruments— 7,786 — 7,786 
Correspondent interest rate derivatives not designated as hedging instruments— 25,328 — 25,328 
Customer interest rate derivatives not designated as hedging instruments— 1,514 — 1,514 
Financial Liabilities:
Interest rate derivatives designated as hedging instruments$— $41,893 $— $41,893 
Correspondent interest rate derivatives not designated as hedging instruments— 1,651 — 1,651 
Customer interest rate derivatives not designated as hedging instruments— 24,817 — 24,817 
(1) Represents LHFS elected to be carried at fair value upon origination or acquisition.
There were no transfers between Level 2 and Level 3 during the six months ended June 30, 2025 and the year ended December 31, 2024.
Certain assets, including collateral dependent loans with an ACL, servicing assets with a valuation allowance and OREO are measured at fair value on a non-recurring 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 (for example, when there is evidence of impairment).
Collateral Dependent Loans with an ACL: A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The
ACL is measured by estimating the fair value of the loan's underlying collateral. For real estate loans, fair value of the loan’s collateral is determined by third-party appraisals, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. Appraisals for collateral dependent loans with an ACL are performed by certified general appraisers whose qualifications and licenses have been reviewed and verified by the Company. Once reviewed, a member of the credit department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparisons to independent data sources such as recent market data or industry-wide statistics. On a periodic basis, the Company compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustments, if any, should be made to the appraisal value to arrive at fair value.

Servicing Assets with a Valuation Allowance: The fair value of the servicing asset is estimated using discounted cash flows based on current market interest rates. A valuation allowance is recorded when the fair value is below the carrying amount of the asset.

OREO: OREO is measured at fair value on a nonrecurring basis (upon initial recognition or subsequent impairment). When transferred from the loan portfolio, OREO is adjusted to fair value less estimated selling costs. The fair value is determined using an external appraisal process, discounted based on internal criteria to consider selling and closing costs.

The following table summarizes assets measured at fair value on a non-recurring basis as of June 30, 2025 and December 31, 2024, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

 Fair Value
Measurements Using
(Dollars in thousands)Level 3
Inputs
As of June 30, 2025    
  Assets: 
Collateral dependent loans with an ACL$1,531 
Servicing assets with a valuation allowance3,675 
OREO9,218 
As of December 31, 2024
  Assets:
Collateral dependent loans with an ACL$4,182 
Servicing assets with a valuation allowance3,356 
OREO24,737 
At June 30, 2025, collateral dependent loans with an allowance had a recorded investment of $1,933, with $402 specific ACL allocated. At December 31, 2024, collateral dependent loans with an allowance had a carrying value of $4,798, with $616 of specific ACL allocated.
At June 30, 2025, servicing assets of $4,922 had a valuation allowance totaling $1,247. At December 31, 2024, servicing assets of $4,560 had a valuation allowance totaling $1,204.
OREO primarily consists of two properties recorded with a fair value of approximately $9,218 in total at June 30, 2025. There were four OREO properties recorded with a fair value of approximately $24,737 in total as of December 31, 2024.
There were no liabilities measured at fair value on a non-recurring basis as of June 30, 2025 or December 31, 2024.
Fair Value of Financial Instruments
The Company’s methods of determining fair value of financial instruments in this Note are consistent with its methodologies disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. Please refer to Note 16 in the Company’s Annual Report on Form 10-K for information on these methods.
The estimated fair values and carrying values of all financial instruments not measured at fair value on a recurring basis under current authoritative guidance as of June 30, 2025 and December 31, 2024 were as follows:
Fair Value
(Dollars in thousands)Carrying
Amount		Level 1Level 2Level 3
June 30, 2025
Financial assets:
Cash and cash equivalents$770,565 $— $770,565 $— 
HTM debt securities176,519 — 152,319 — 
LHFS(1)
682 — 682 — 
LHI(2) (3)
9,338,845 — — 9,279,057 
Accrued interest receivable44,428 — 44,428 — 
BOLI86,048 — 86,048 — 
Servicing asset7,463 — — 10,094 
Financial liabilities:
Noninterest-bearing deposits$2,133,294 $— $2,133,294 $— 
Interest-bearing deposits8,284,626 — 8,086,787 — 
Advances from FHLB169,000 — 169,000 — 
Accrued interest payable21,750 — 21,750 — 
Subordinated debentures and subordinated notes156,082 — 157,268 — 
December 31, 2024
Financial assets:
Cash and cash equivalents$855,200 $— $855,200 $— 
HTM debt securities184,026 — 160,560 — 
LHFS(1)
904 — 904 — 
LHI(2)
9,499,746 — — 9,409,813 
Accrued interest receivable46,328 — 46,328 — 
BOLI85,324 — 85,324 — 
Servicing asset6,565 — 6,565 — 
Financial liabilities:
Noninterest-bearing deposits$2,191,457 $— $2,191,457 $— 
Interest-bearing deposits8,561,135 — 8,349,988 — 
Accrued interest payable38,568 — 38,568 — 
Subordinated debentures and subordinated notes230,736 — 230,736 — 
(1) LHFS represent mortgage LHFS that are carried at lower of cost or market.
(2) LHI includes MW and is carried at amortized cost.
(3) Presented net of ACL.