Fair Values of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2019

Summary Of Balances Of Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following tables present the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented:



	June 30, 2019
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	132,269	$	132,269	$	—	$	—
U.S. Government agencies	170,940		—		167,963		2,977
Municipal	142,609		—		32,313		110,296
Corporate notes	90,913		—		90,913		—
Mortgage-backed	1,649,423		—		1,649,423		—
Trading account securities	2,430		—		2,430		—
Equity securities with readily determinable fair value	44,319		36,253		8,066		—
Mortgage loans held-for-sale	394,975		—		394,975		—
Loans held-for-investment	106,081		—		95,600		10,481
MSRs	72,850		—		—		72,850
Nonqualified deferred compensation assets	13,672		—		13,672		—
Derivative assets	108,784		—		105,188		3,596
Total	$	2,929,265	$	168,522	$	2,560,543	$	200,200
Derivative liabilities	$	136,312	$	—	$	136,312	$	—



	December 31, 2018
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	126,404	$	126,404	$	—	$	—
U.S. Government agencies	140,307		—		137,157		3,150
Municipal	138,490		—		29,564		108,926
Corporate notes	91,045		—		91,045		—
Mortgage-backed	1,629,835		—		1,629,835		—
Trading account securities	1,692		—		1,692		—
Equity securities with readily determinable fair value	34,717		—		34,717		—
Mortgage loans held-for-sale	264,070		—		264,070		—
Loans held-for-investment	93,857		—		82,510		11,347
MSRs	75,183		—		—		75,183
Nonqualified deferred compensation assets	11,282		—		11,282		—
Derivative assets	73,172		—		70,715		2,457
Total	$	2,680,054	$	126,404	$	2,352,587	$	201,063
Derivative liabilities	$	68,088	$	—	$	68,088	$	—



	June 30, 2018
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	30,216	$	—	$	30,216	$	—
U.S. Government agencies	114,408		—		110,926		3,482
Municipal	132,593		—		36,027		96,566
Corporate notes	95,377		—		95,377		—
Mortgage-backed	1,568,193		—		1,568,193		—
Trading account securities	862		—		862		—
Equity securities with readily determinable fair value	37,839		—		37,839		—
Mortgage loans held-for-sale	455,712		—		455,712		—
Loans held-for-investment	67,181		—		53,417		13,764
MSRs	63,194		—		—		63,194
Nonqualified deferred compensation assets	12,053		—		12,053		—
Derivative assets	92,156		—		88,337		3,819
Total	$	2,669,784	$	—	$	2,488,959	$	180,825
Derivative liabilities	$	69,364	$	—	$	69,364	$	—

Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis

The changes in Level 3 assets measured at fair value on a recurring basis during the three and six months ended June 30, 2019 and 2018 are summarized as follows:



				U.S. Government Agencies			Loans held-for- investment			Mortgage servicing rights		Derivative Assets
(Dollars in thousands)	Municipal			U.S. Government Agencies			Loans held-for- investment			Mortgage servicing rights		Derivative Assets
Balance at April 1, 2019	$	103,834		$	2,993		$	11,249		$	71,022	$	3,089
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—			118			1,421		507
Other comprehensive loss	6,519			142			—			—		—
Purchases	555			—			—			407		—
Issuances	—			—			—			—		—
Sales	—			—			—			—		—
Settlements	(612		)	(158		)	(886		)	—		—
Net transfers into/(out of) Level 3	—			—			—			—		—
Balance at June 30, 2019	$	110,296		$	2,977		$	10,481		$	72,850	$	3,596


(1)	Changes in the balance of MSRs and derivative assets related to fair value adjustments are recorded as components of mortgage banking revenue. Changes in the balance of loans held-for-investment related to fair value adjustments are recorded as other non-interest income.



				U.S. Government Agencies			Loans held-for- investment			Mortgage servicing rights			Derivative Assets
(Dollars in thousands)	Municipal			U.S. Government Agencies			Loans held-for- investment			Mortgage servicing rights			Derivative Assets
Balance at January 1, 2019	$	108,926		$	3,150		$	11,347		$	75,183		$	2,457
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—			285			(2,740		)	1,139
Other comprehensive loss	8,056			143			—			—			—
Purchases	1,524			—			—			407			—
Issuances	—			—			—			—			—
Sales	—			—			—			—			—
Settlements	(8,210		)	(316		)	(1,351		)	—			—
Net transfers into/(out of) Level 3	—			—			200			—			—
Balance at June 30, 2019	$	110,296		$	2,977		$	10,481		$	72,850		$	3,596



				U.S. Government Agencies			Loans held-for- investment			Mortgage servicing rights		Derivative Assets
(Dollars in thousands)	Municipal			U.S. Government Agencies			Loans held-for- investment			Mortgage servicing rights		Derivative Assets
Balance at April 1, 2018	$	84,592		$	3,616		$	26,620		$	54,572	$	4,605
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—			(260		)	8,622		(786		)
Other comprehensive income (loss)	(895		)	(134		)	—			—		—
Purchases	14,746			—			—			—		—
Issuances	—			—			—			—		—
Sales	—			—			—			—		—
Settlements	(1,877		)	—			(16,402		)	—		—
Net transfers into/(out of) Level 3	—			—			3,806			—		—
Balance at June 30, 2018	$	96,566		$	3,482		$	13,764		$	63,194	$	3,819



				U.S. Government Agencies			Loans held-for- investment			Mortgage servicing rights		Derivative Assets
(Dollars in thousands)	Municipal			U.S. Government Agencies			Loans held-for- investment			Mortgage servicing rights		Derivative Assets
Balance at January 1, 2018	$	77,181		$	3,779		$	33,717		$	33,676	$	2,157
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—			(1,388		)	15,712		1,662
Other comprehensive income (loss)	(3,085		)	(297		)	—			—		—
Purchases	27,016			—			—			13,806		—
Issuances	—			—			—			—		—
Sales	—			—			—			—		—
Settlements	(4,546		)	—			(22,657		)	—		—
Net transfers into/(out of) Level 3	—			—			4,092			—		—
Balance at June 30, 2018	$	96,566		$	3,482		$	13,764		$	63,194	$	3,819


(1)	Changes in the balance of MSRs and derivative assets related to fair value adjustments are recorded as components of mortgage banking revenue. Changes in the balance of loans held-for-investment related to fair value adjustments are recorded as other non-interest income.

Summary Of Assets Measured At Fair Value On A Nonrecurring Basis

For assets measured at fair value on a nonrecurring basis that were still held in the balance sheet at the end of the period, the following table provides the carrying value of the related individual assets or portfolios at June 30, 2019.



	June 30, 2019								Three Months Ended June 30, 2019 Fair Value Losses Recognized, net		Six Months Ended June 30, 2019 Fair Value Losses Recognized, net
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Impaired loans—collateral based	$	96,304	$	—	$	—	$	96,304	$	18,602	$	22,980
Other real estate owned ⁽¹⁾	19,837		—		—		19,837		1,032		1,606
Total	$	116,141	$	—	$	—	$	116,141	$	19,634	$	24,586

(1)

Fair value losses recognized, net on other real estate owned include valuation adjustments and charge-offs during the respective period.

Schedule Of Valuation Techniques And Significant Unobservable Inputs Used To Measure Both Recurring And Non-Recurring

The valuation techniques and significant unobservable inputs used to measure both recurring and non-recurring Level 3 fair value measurements at June 30, 2019 were as follows:

(Dollars in thousands)

Fair Value

Valuation Methodology

Significant Unobservable Input

Range

of Inputs

Weighted

Average

of Inputs

Impact to valuation

from an increased or

higher input value

Measured at fair value on a recurring basis:

Municipal Securities

110,296

Bond pricing

Equivalent rating

BBB-AA+

N/A

Increase

U.S. Government agencies

2,977

Bond pricing

Equivalent rating

AAA

Increase

Loans held-for-investment

10,481

Discounted cash flows

Discount rate

3%-4%

3.61%

Decrease

Credit discount

0%-7%

1.22%

Decrease

Constant prepayment rate (CPR)

14.37%

Decrease

MSRs

72,850

Discounted cash flows

Discount rate

5%-20%

9.96%

Decrease

Constant prepayment rate (CPR)

0%-93%

14.34%

Decrease

Cost of servicing

$70-$200

$77

Decrease

Cost of servicing - delinquent

$200-$1,000

$390

Decrease

Derivatives

3,596

Discounted cash flows

Pull-through rate

0%-100%

77.84%

Increase

Measured at fair value on a non-recurring basis:

Impaired loans—collateral based

96,304

Appraisal value

Appraisal adjustment - cost of sale

10%

10.00%

Decrease

Other real estate owned

19,837

Appraisal value

Appraisal adjustment - cost of sale

10%

10.00%

Decrease

Summary Of Carrying Amounts And Estimated Fair Values Of Financial Instruments

The table below presents the carrying amounts and estimated fair values of the Company’s financial instruments as of the dates shown:



	At June 30, 2019				At December 31, 2018				At June 30, 2018
	Carrying		Fair		Carrying		Fair		Carrying		Fair
(In thousands)	Value		Value		Value		Value		Value		Value
Financial Assets:
Cash and cash equivalents	$	300,992	$	300,992	$	392,200	$	392,200	$	304,642	$	304,642
Interest bearing deposits with banks	1,437,105		1,437,105		1,099,594		1,099,594		1,221,407		1,221,407
Available-for-sale securities	2,186,154		2,186,154		2,126,081		2,126,081		1,940,787		1,940,787
Held-to-maturity securities	1,191,634		1,198,478		1,067,439		1,036,096		890,834		851,842
Trading account securities	2,430		2,430		1,692		1,692		862		862
Equity securities with readily determinable fair value	44,319		44,319		34,717		34,717		37,839		37,839
FHLB and FRB stock, at cost	92,026		92,026		91,354		91,354		96,699		96,699
Brokerage customer receivables	13,569		13,569		12,609		12,609		16,649		16,649
Mortgage loans held-for-sale, at fair value	394,975		394,975		264,070		264,070		455,712		455,712
Loans held-for-investment, at fair value	106,081		106,081		93,857		93,857		67,181		67,181
Loans held-for-investment, at amortized cost	25,198,578		25,086,371		23,726,834		23,780,739		22,543,379		22,767,838
Nonqualified deferred compensation assets	13,672		13,672		11,282		11,282		12,053		12,053
Derivative assets	108,784		108,784		73,172		73,172		92,156		92,156
Accrued interest receivable and other	271,988		271,988		260,281		260,281		240,790		240,790
Total financial assets	$	31,362,307	$	31,256,944	$	29,255,182	$	29,277,744	$	27,920,990	$	28,106,457
Financial Liabilities
Non-maturity deposits	$	22,013,192	$	22,013,192	$	20,833,837	$	20,833,837	$	19,465,510	$	19,465,510
Deposits with stated maturities	5,505,623		5,526,715		5,260,841		5,283,063		4,899,969		4,911,324
FHLB advances	574,823		596,689		426,326		429,830		667,000		669,406
Other borrowings	418,057		418,057		393,855		393,855		255,701		255,701
Subordinated notes	436,021		451,874		139,210		138,345		139,148		137,782
Junior subordinated debentures	253,566		250,697		253,566		263,846		253,566		257,465
Derivative liabilities	136,312		136,312		68,088		68,088		69,364		69,364
Accrued interest payable	17,503		17,503		16,025		16,025		9,802		9,802
Total financial liabilities	$	29,355,097	$	29,411,039	$	27,391,748	$	27,426,889	$	25,760,060	$	25,776,354