v3.26.3
Fair Value (Tables)
9 Months Ended
Sep. 30, 2026
Schedule of recorded amount of assets and liabilities measured at fair value on a recurring basis

The table below presents the recorded amount of assets and liabilities measured at fair value on a recurring basis:

 

(Dollars in thousands)

 

Fair Value

 

 

Quoted Prices
In Active
Markets
for Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

September 30,2026:

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

$

119,731

 

 

$

—

 

 

$

119,731

 

 

$

—

 

 

Mortgage loans held for sale

 

 

49,313

 

 

 

—

 

 

 

49,313

 

 

 

—

 

 

Trading securities

 

 

141,534

 

 

 

—

 

 

 

141,534

 

 

 

—

 

 

Securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed securities issued by U.S. government

 

 

 

 

 

 

 

 

 

 

 

 

 

   agencies or sponsored enterprises

 

 

1,836,004

 

 

 

—

 

 

 

1,836,004

 

 

 

—

 

 

Residential collateralized mortgage-obligations issued by U.S. government

 

 

 

 

 

 

 

 

 

 

 

 

 

   agencies or sponsored enterprises

 

 

1,958,644

 

 

 

—

 

 

 

1,958,644

 

 

 

—

 

 

Commercial mortgage-backed securities issued by U.S. government

 

 

 

 

 

 

 

 

 

 

 

 

 

   agencies or sponsored enterprises

 

 

1,028,519

 

 

 

—

 

 

 

1,028,519

 

 

 

—

 

 

State and municipal obligations

 

 

1,035,036

 

 

 

—

 

 

 

1,035,036

 

 

 

—

 

 

Small Business Administration loan-backed securities

 

 

513,102

 

 

 

—

 

 

 

513,102

 

 

 

—

 

 

Corporate securities

 

 

22,004

 

 

 

—

 

 

 

22,004

 

 

 

—

 

 

Total securities available for sale

 

 

6,393,309

 

 

 

—

 

 

 

6,393,309

 

 

 

—

 

 

Mortgage servicing rights

 

 

101,990

 

 

 

—

 

 

 

—

 

 

 

101,990

 

 

SBA servicing asset

 

 

4,748

 

 

 

—

 

 

 

—

 

 

 

4,748

 

 

 

$

6,810,625

 

 

$

—

 

 

$

6,703,887

 

 

$

106,738

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

$

987,960

 

 

$

—

 

 

$

987,960

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2025:

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

$

222,886

 

 

$

—

 

 

$

222,886

 

 

$

—

 

 

Mortgage loans held for sale

 

 

61,400

 

 

 

—

 

 

 

61,400

 

 

 

—

 

 

Trading securities

 

 

110,183

 

 

 

—

 

 

 

110,183

 

 

 

—

 

 

Securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed securities issued by U.S. government

 

 

 

 

 

 

 

 

 

 

 

 

 

   agencies or sponsored enterprises

 

 

1,698,108

 

 

 

—

 

 

 

1,698,108

 

 

 

—

 

 

Residential collateralized mortgage-obligations issued by U.S. government

 

 

 

 

 

 

 

 

 

 

 

 

 

   agencies or sponsored enterprises

 

 

2,185,584

 

 

 

—

 

 

 

2,185,584

 

 

 

—

 

 

Commercial mortgage-backed securities issued by U.S. government

 

 

 

 

 

 

 

 

 

 

 

 

 

   agencies or sponsored enterprises

 

 

832,449

 

 

 

—

 

 

 

832,449

 

 

 

—

 

 

State and municipal obligations

 

 

1,007,412

 

 

 

—

 

 

 

1,007,412

 

 

 

—

 

 

Small Business Administration loan-backed securities

 

 

568,433

 

 

 

—

 

 

 

568,433

 

 

 

—

 

 

Corporate securities

 

 

21,770

 

 

 

—

 

 

 

21,770

 

 

 

—

 

 

Total securities available for sale

 

 

6,313,756

 

 

 

—

 

 

 

6,313,756

 

 

 

—

 

 

Mortgage servicing rights

 

 

84,032

 

 

 

—

 

 

 

—

 

 

 

84,032

 

 

SBA servicing asset

 

 

5,512

 

 

 

—

 

 

 

—

 

 

 

5,512

 

 

 

$

6,797,769

 

 

$

—

 

 

$

6,708,225

 

 

$

89,544

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

$

554,748

 

 

$

—

 

 

$

554,748

 

 

$

—

 

 

Schedule of mortgage loans held for sale

The following table summarizes the difference between the fair value and the unpaid principal balance of mortgage loans held for sale and the changes in fair value of these loans:

 

 

 

September 30,

 

 

December 31,

 

 

(Dollars in thousands)

 

2026

 

 

2025

 

 

Fair value

 

$

49,313

 

 

$

61,400

 

 

Unpaid principal balance

 

 

49,287

 

 

 

59,371

 

 

Fair value less aggregated unpaid principal balance

 

$

26

 

 

$

2,029

 

 

Schedule of amounts of assets and liabilities measured at fair value on a nonrecurring basis

The tables below present the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis:

 

(Dollars in thousands)

 

Fair Value

 

 

Quoted Prices
In Active
Markets
for Identical
Assets
(Level 1)

 

 

Significant
Other
Observable
Inputs
(Level 2)

 

 

Significant
Unobservable
Inputs
(Level 3)

 

 

September 30,2026:

 

 

 

 

 

 

 

 

 

 

 

 

 

OREO

 

$

15,220

 

 

$

—

 

 

$

—

 

 

$

15,220

 

 

Bank properties held for sale

 

 

6,836

 

 

—

 

 

—

 

 

 

6,836

 

 

Individually evaluated loans

 

 

223,975

 

 

—

 

 

—

 

 

 

223,975

 

 

December 31, 2025:

 

 

 

 

 

 

 

 

 

 

 

 

 

OREO

 

$

8,771

 

 

$

—

 

 

$

—

 

 

$

8,771

 

 

Individually evaluated loans

 

 

328,452

 

 

—

 

 

—

 

 

 

328,452

 

 

Schedule of quantitative information about level 3 fair value measurements

Quantitative Information about Level 3 Fair Value Measurement

 

 

 

 

 

 

 

Weighted Average Discount

 

 

 

 

 

 

September 30,

 

December 31,

 

 

Valuation Technique

 

Unobservable Input

 

2026

 

2025

Nonrecurring measurements:

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated loans

 

Discounted appraisals and discounted cash flows

 

Collateral discounts

 

 

23

 

%

 

 

19

 

%

OREO and Bank properties held for sale

 

Discounted appraisals

 

Collateral discounts and estimated costs to sell

 

 

4

 

%

 

 

2

 

%

Schedule of estimated fair value, and related carrying amount, of the Company's financial instruments

The estimated fair value, and related carrying amount, of our financial instruments are as follows:

 

 

 

Carrying

 

 

Fair

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

Amount

 

 

Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

September 30,2026

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,974,618

 

 

$

2,974,618

 

 

$

2,974,618

 

 

$

—

 

 

 

$

—

 

 

Trading securities

 

 

141,534

 

 

 

141,534

 

 

 

—

 

 

 

141,534

 

 

 

 

—

 

 

Investment securities

 

 

8,705,780

 

 

 

8,319,757

 

 

 

287,005

 

 

 

7,912,585

 

 

 

 

120,167

 

 

Loans held for sale

 

 

296,835

 

 

 

297,162

 

 

 

—

 

 

 

297,162

 

 

 

 

—

 

 

Loans, net of allowance for credit losses

 

 

51,464,175

 

 

 

50,926,865

 

 

 

—

 

 

 

—

 

 

 

 

50,926,865

 

 

Accrued interest receivable

 

 

253,452

 

 

 

253,452

 

 

 

—

 

 

 

35,312

 

 

 

 

218,140

 

 

Mortgage servicing rights

 

 

101,990

 

 

 

101,990

 

 

 

—

 

 

 

—

 

 

 

 

101,990

 

 

SBA servicing asset

 

 

4,748

 

 

 

4,748

 

 

 

—

 

 

 

—

 

 

 

 

4,748

 

 

Interest rate swap – non-designated hedge

 

 

117,921

 

 

 

117,921

 

 

 

—

 

 

 

117,921

 

 

 

 

—

 

 

Other derivative financial instruments (mortgage banking related)

 

 

1,810

 

 

 

1,810

 

 

 

—

 

 

 

1,810

 

 

 

 

—

 

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

 

13,445,715

 

 

 

13,445,715

 

 

 

—

 

 

 

13,445,715

 

 

 

 

—

 

 

Interest-bearing other than time deposits

 

 

35,840,527

 

 

 

35,840,527

 

 

 

—

 

 

 

35,840,527

 

 

 

 

—

 

 

Time deposits

 

 

8,352,039

 

 

 

8,323,116

 

 

 

—

 

 

 

8,323,116

 

 

 

 

—

 

 

Federal funds purchased and securities sold under agreements to repurchase

 

 

498,173

 

 

 

498,173

 

 

 

—

 

 

 

498,173

 

 

 

 

—

 

 

Corporate and subordinated debentures

 

 

696,855

 

 

 

678,415

 

 

 

—

 

 

 

678,415

 

 

 

 

—

 

 

Other borrowings

 

 

300,000

 

 

 

299,994

 

 

 

—

 

 

 

299,994

 

 

 

 

—

 

 

Accrued interest payable

 

 

37,494

 

 

 

37,494

 

 

 

—

 

 

 

37,494

 

 

 

 

—

 

 

Interest rate swap – non-designated hedge

 

 

982,452

 

 

 

982,452

 

 

 

—

 

 

 

982,452

 

 

 

 

—

 

 

Other derivative financial instruments (mortgage banking related)

 

 

5,508

 

 

 

5,508

 

 

—

 

 

 

5,508

 

 

 

—

 

 

December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

3,172,483

 

 

$

3,172,483

 

 

$

3,172,483

 

 

$

—

 

 

 

$

—

 

 

Trading securities

 

 

110,183

 

 

 

110,183

 

 

 

—

 

 

 

110,183

 

 

 

 

—

 

 

Investment securities

 

 

8,715,214

 

 

 

8,400,034

 

 

 

274,730

 

 

 

8,046,606

 

 

 

 

78,698

 

 

Loans held for sale

 

 

345,343

 

 

 

348,381

 

 

 

—

 

 

 

348,381

 

 

 

 

—

 

 

Loans, net of allowance for credit losses

 

 

48,013,330

 

 

 

47,378,022

 

 

 

—

 

 

 

—

 

 

 

 

47,378,022

 

 

Accrued interest receivable

 

 

233,265

 

 

 

233,265

 

 

 

—

 

 

 

35,302

 

 

 

 

197,963

 

 

Mortgage servicing rights

 

 

84,032

 

 

 

84,032

 

 

 

—

 

 

 

—

 

 

 

 

84,032

 

 

SBA servicing asset

 

 

5,512

 

 

 

5,512

 

 

 

—

 

 

 

—

 

 

 

 

5,512

 

 

Interest rate swap – non-designated hedge

 

 

221,835

 

 

 

221,835

 

 

 

—

 

 

 

221,835

 

 

 

 

—

 

 

Other derivative financial instruments (mortgage banking related)

 

 

1,051

 

 

 

1,051

 

 

 

—

 

 

 

1,051

 

 

 

 

—

 

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

 

13,375,697

 

 

 

13,375,697

 

 

 

—

 

 

 

13,375,697

 

 

 

 

—

 

 

Interest-bearing other than time deposits

 

 

34,410,867

 

 

 

34,410,867

 

 

 

—

 

 

 

34,410,867

 

 

 

 

—

 

 

Time deposits

 

 

7,359,233

 

 

 

7,347,648

 

 

 

—

 

 

 

7,347,648

 

 

 

 

—

 

 

Federal funds purchased and securities sold under agreements to repurchase

 

 

618,215

 

 

 

618,215

 

 

 

—

 

 

 

618,215

 

 

 

 

—

 

 

Corporate and subordinated debentures

 

 

696,536

 

 

 

683,772

 

 

 

—

 

 

 

683,772

 

 

 

 

—

 

 

Accrued interest payable

 

 

48,972

 

 

 

48,972

 

 

 

—

 

 

 

48,972

 

 

 

 

—

 

 

Interest rate swap – non-designated hedge

 

 

554,433

 

 

 

554,433

 

 

 

—

 

 

 

554,433

 

 

 

 

—

 

 

Other derivative financial instruments (mortgage banking related)

 

 

315

 

 

 

315

 

 

 

—

 

 

 

315

 

 

 

 

—

 

 

Mortgage Servicing Rights  
Schedule of reconciliation of the beginning and ending balances of Level 3 assets, comprised of Mortgage Servicing Rights, SBA servicing asset and liabilities recorded at fair value on a recurring basis A reconciliation of the beginning and ending balances of the MSRs recorded at fair value on a recurring basis for the nine months ended September 30, 2026, is as follows. The changes in fair value of the MSRs are recorded in Mortgage Banking Income on the Consolidated Statements of Income.

 

(Dollars in thousands)

 

MSRs

 

 

Fair value, January 1, 2026

 

$

84,032

 

 

Servicing assets that resulted from transfers of financial assets

 

 

5,716

 

 

Changes in fair value due to valuation inputs or assumptions

 

 

20,569

 

 

Changes in fair value due to decay

 

 

(8,327

)

 

Fair value, September 30,2026

 

$

101,990

 

 

SBA servicing asset  
Schedule of reconciliation of the beginning and ending balances of Level 3 assets, comprised of Mortgage Servicing Rights, SBA servicing asset and liabilities recorded at fair value on a recurring basis

A reconciliation of the beginning and ending balances of the SBA servicing asset, a Level 3 asset recorded at fair value on a recurring basis for the period ending September 30, 2026, is as follows. The changes in fair value of the SBA servicing asset are recorded in in SBA Income on the Consolidated Statements of Income.

 

(Dollars in thousands)

 

SBA Servicing Asset

 

 

Fair value, January 1, 2026

 

$

5,512

 

 

Servicing assets that resulted from transfers of financial assets

 

 

409

 

 

Changes in fair value due to decay

 

 

(1,243

)

 

Changes in fair value due to valuation inputs or assumptions

 

 

70

 

 

Fair value, September 30,2026

 

$

4,748