Fair Value (Tables)
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6 Months Ended |
Jun. 30, 2025 |
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| Fair Value Disclosures [Abstract] |
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| Financial Assets and Liabilities Measured at Fair Value Recurring Basis |
The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis at June 30, 2025 and December 31, 2024, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value ($ in thousands). There were no transfers between fair value levels for the six months ended June 30, 2025 and the year ended December 31, 2024.
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June 30, 2025 |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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U.S. Treasury securities |
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$ |
215,679 |
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$ |
215,679 |
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$ |
— |
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$ |
— |
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U.S. Government agency obligations |
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65,800 |
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— |
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65,800 |
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|
— |
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Mortgage-backed securities |
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1,500,613 |
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— |
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1,500,613 |
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— |
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Securities available for sale |
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1,782,092 |
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215,679 |
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1,566,413 |
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— |
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LHFS |
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219,649 |
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— |
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219,649 |
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— |
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MSR |
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132,702 |
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— |
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— |
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132,702 |
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Other assets - derivatives |
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22,985 |
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3,674 |
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17,504 |
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1,807 |
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Other liabilities - derivatives |
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23,233 |
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23 |
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23,210 |
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— |
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December 31, 2024 |
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Total |
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Level 1 |
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Level 2 |
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Level 3 |
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U.S. Treasury securities |
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$ |
202,669 |
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$ |
202,669 |
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$ |
— |
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|
$ |
— |
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U.S. Government agency obligations |
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38,807 |
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— |
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38,807 |
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— |
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Mortgage-backed securities |
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1,451,058 |
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— |
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1,451,058 |
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— |
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Securities available for sale |
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1,692,534 |
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202,669 |
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1,489,865 |
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— |
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LHFS |
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200,307 |
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— |
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200,307 |
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— |
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MSR |
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139,317 |
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— |
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— |
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139,317 |
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Other assets - derivatives |
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15,397 |
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18 |
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15,150 |
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229 |
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Other liabilities - derivatives |
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41,355 |
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2,183 |
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39,172 |
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— |
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| Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis |
The changes in Level 3 assets measured at fair value on a recurring basis for the six months ended June 30, 2025 and 2024 are summarized as follows ($ in thousands):
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MSR |
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Other Assets -
Derivatives |
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Balance, January 1, 2025 |
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$ |
139,317 |
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$ |
229 |
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Total net (loss) gain included in Mortgage banking, net (1) |
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(13,532 |
) |
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2,465 |
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Additions |
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6,917 |
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— |
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Sales |
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— |
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|
(887 |
) |
Balance, June 30, 2025 |
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$ |
132,702 |
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$ |
1,807 |
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The amount of total gains (losses) for the period included in earnings
that are attributable to the change in unrealized gains or
losses still held at June 30, 2025 |
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$ |
(7,874 |
) |
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$ |
2,338 |
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Balance, January 1, 2024 |
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$ |
131,870 |
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$ |
845 |
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Total net (loss) gain included in Mortgage banking, net (1) |
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(1,876 |
) |
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1,556 |
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Additions |
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6,664 |
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— |
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Sales |
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— |
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(1,710 |
) |
Balance, June 30, 2024 |
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$ |
136,658 |
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$ |
691 |
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The amount of total gains (losses) for the period included in
earnings that are attributable to the change in unrealized
gains or losses still held at June 30, 2024 |
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$ |
3,498 |
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$ |
1,304 |
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(1)Total net (loss) gain included in Mortgage banking, net relating to the MSR includes changes in fair value due to market changes and due to run-off.
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| Carrying Amounts and Estimated Fair Values of Financial Instruments |
The carrying amounts and estimated fair values of financial instruments at June 30, 2025 and December 31, 2024, are as follows ($ in thousands):
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June 30, 2025 |
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December 31, 2024 |
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Carrying
Value |
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Estimated
Fair Value |
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Carrying
Value |
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Estimated
Fair Value |
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Financial Assets: |
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Level 2 Inputs: |
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Cash and short-term investments |
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$ |
634,402 |
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$ |
634,402 |
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$ |
567,251 |
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$ |
567,251 |
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Securities held to maturity |
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1,290,572 |
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1,247,682 |
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1,335,385 |
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1,259,107 |
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Level 3 Inputs: |
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Net LHFI |
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13,296,543 |
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13,299,524 |
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12,929,672 |
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12,886,168 |
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Financial Liabilities: |
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Level 2 Inputs: |
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Deposits |
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15,115,861 |
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15,104,962 |
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15,108,175 |
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15,098,854 |
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Federal funds purchased and securities sold under
repurchase agreements |
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456,326 |
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456,326 |
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324,008 |
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324,008 |
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Other borrowings |
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558,654 |
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558,654 |
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301,541 |
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301,541 |
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Subordinated notes |
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123,812 |
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123,125 |
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123,702 |
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120,625 |
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Junior subordinated debt securities |
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61,856 |
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50,722 |
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61,856 |
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49,794 |
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| Fair Value and the Contractual Principal Outstanding of the LHFS |
The following table provides information about the fair value and the contractual principal outstanding of the LHFS accounted for under the fair value option at June 30, 2025 and December 31, 2024 ($ in thousands):
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June 30, 2025 |
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December 31, 2024 |
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Fair value of LHFS |
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$ |
114,680 |
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$ |
102,676 |
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LHFS contractual principal outstanding |
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112,246 |
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|
105,322 |
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Fair value less unpaid principal |
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$ |
2,434 |
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$ |
(2,646 |
) |
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