Fair Values of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2021

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:


	September 30, 2021
(In thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	6,000	$	6,000	$	—	$	—
U.S. Government agencies	53,275		—		53,275		—
Municipal	174,600		—		56,876		117,724
Corporate notes	99,118		—		99,118		—
Mortgage-backed	2,040,485		—		2,040,485		—

Trading account securities	1,103		—		1,103		—
Equity securities with readily determinable fair value	88,193		80,127		8,066		—
Mortgage loans held-for-sale	925,312		—		925,312		—
Loans held-for-investment	30,979		—		18,847		12,132
MSRs	133,552		—		—		133,552
Nonqualified deferred compensation assets	15,797		—		15,797		—
Derivative assets	191,612		—		177,000		14,612
Total	$	3,760,026	$	86,127	$	3,395,879	$	278,020
Derivative liabilities	$	161,314	$	—	$	161,314	$	—


	December 31, 2020
(In thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	304,971	$	304,971	$	—	$	—
U.S. Government agencies	84,513		—		82,547		1,966
Municipal	146,910		—		37,034		109,876
Corporate notes	91,405		—		91,405		—
Mortgage-backed	2,428,040		—		2,428,040		—
Trading account securities	671		—		671		—
Equity securities with readily determinable fair value	90,862		82,796		8,066		—
Mortgage loans held-for-sale	1,272,090		—		1,272,090		—
Loans held-for-investment	55,134		—		44,854		10,280
MSRs	92,081		—		—		92,081
Nonqualified deferred compensation assets	15,398		—		15,398		—
Derivative assets	278,423		—		230,332		48,091
Total	$	4,860,498	$	387,767	$	4,210,437	$	262,294
Derivative liabilities	$	288,465	$	—	$	288,465	$	—


	September 30, 2020
(In thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	280,108	$	280,108	$	—	$	—
U.S. Government agencies	178,666		—		176,537		2,129
Municipal	154,195		—		34,724		119,471
Corporate notes	104,135		—		104,135		—
Mortgage-backed	2,229,355		—		2,229,355		—
Trading account securities	1,720		—		1,720		—
Equity securities with readily determinable fair value	54,398		46,332		8,066		—
Mortgage loans held-for-sale	959,671		—		959,671		—
Loans held-for-investment	253,515		—		240,902		12,613
MSRs	86,907		—		—		86,907
Nonqualified deferred compensation assets	14,197		—		14,197		—
Derivative assets	321,488		—		254,601		66,887
Total	$	4,638,355	$	326,440	$	4,023,908	$	288,007
Derivative liabilities	$	326,990	$	—	$	326,990	$	—

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 nine months ended September 30, 2021 and 2020 are summarized as follows:


			U.S. Government agencies		Loans held-for- investment		Mortgage servicing rights		Derivative assets
(In thousands)	Municipal
Balance at July 1, 2021	$	117,606	$	—	$	11,007	$	127,604	$	22,570
Total net gains (losses) included in:
Net income (1)	—		—		54		5,948		(7,958)
Other comprehensive income (loss)	(757)		—		—		—		—
Purchases	875		—		—		—		—
Issuances	—		—		—		—		—
Sales	—		—		—		—		—
Settlements	—		—		(588)		—		—
Net transfers into/(out of) Level 3	—		—		1,659		—		—
Balance at September 30, 2021	$	117,724	$	—	$	12,132	$	133,552	$	14,612

(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
(In thousands)	Municipal
Balance at January 1, 2021	$	109,876	$	1,966	$	10,280	$	92,081	$	48,091
Total net gains (losses) included in:
Net income (1)	—		(4)		(309)		41,471		(33,479)
Other comprehensive income (loss)	(3,199)		(24)		—		—		—
Purchases	19,038		—		—		—		—
Issuances	—		—		—		—		—
Sales	—		—		—		—		—
Settlements	(7,991)		(1,938)		(4,565)		—		—
Net transfers into/(out of) Level 3	—		—		6,726		—		—
Balance at September 30, 2021	$	117,724	$	—	$	12,132	$	133,552	$	14,612


			U.S. Government agencies		Loans held-for- investment		Mortgage servicing rights		Derivative assets
(In thousands)	Municipal
Balance at July 1, 2020	$	117,255	$	2,293	$	13,953	$	77,203	$	58,433
Total net gains (losses) included in:
Net income (1)	—		—		47		9,704		8,454
Other comprehensive income (loss)	64		(7)		—		—		—
Purchases	3,221		—		—		—		—
Issuances	—		—		—		—		—
Sales	—		—		—		—		—
Settlements	(1,069)		(157)		(7,877)		—		—
Net transfers into/(out of) Level 3	—		—		6,490		—		—
Balance at September 30, 2020	$	119,471	$	2,129	$	12,613	$	86,907	$	66,887


			U.S. Government Agencies		Loans held-for- investment		Mortgage servicing rights		Derivative Assets
(In thousands)	Municipal
Balance at January 1, 2020	$	111,950	$	2,646	$	9,620	$	85,638	$	2,631
Total net gains (losses) included in:
Net income (1)	—		—		169		1,269		64,256
Other comprehensive income (loss)	(1,731)		(46)		—		—		—
Purchases	16,093		—		—		—		—
Issuances	—		—		—		—		—
Sales	—		—		—		—		—
Settlements	(6,841)		(471)		(9,337)		—		—
Net transfers into/(out of) Level 3	—		—		12,161		—		—
Balance at September 30, 2020	$	119,471	$	2,129	$	12,613	$	86,907	$	66,887

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 September 30, 2021:


	September 30, 2021								Three Months Ended September 30, 2021 Fair Value Losses Recognized, net		Nine Months Ended September 30, 2021 Fair Value Losses Recognized, net
(In thousands)	Total		Level 1		Level 2		Level 3
Individually assessed loans - foreclosure probable and collateral-dependent	$	78,653	$	—	$	—	$	78,653	$	1,425	$	17,956
Other real estate owned (1)	13,845		—		—		13,845		93		1,012
Total	$	92,498	$	—	$	—	$	92,498	$	1,518	$	18,968

(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 September 30, 2021 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

117,724

Bond pricing

Equivalent rating

BBB-AA+

N/A

Increase

Loans held-for-investment

12,132

Discounted cash flows

Discount rate

2.88%

Decrease

Credit discount

0%-3%

0.51%

Decrease

Constant prepayment rate (CPR)

12.77%

Decrease

MSRs

133,552

Discounted cash flows

Discount rate

7%-19%

9.82%

Decrease

Constant prepayment rate (CPR)

6%-92%

12.77%

Decrease

Cost of servicing

$70-$200

$75

Decrease

Cost of servicing - delinquent

$200-$1,000

$287

Decrease

Derivatives

14,612

Discounted cash flows

Pull-through rate

1%-100%

86.28%

Increase

Measured at fair value on a non-recurring basis:

Individually assessed loans - foreclosure probable and collateral-dependent

78,653

Appraisal value

Appraisal adjustment - cost of sale

10%

10.00%

Decrease

Other real estate owned

13,845

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 September 30, 2021				At December 31, 2020				At September 30, 2020
	Carrying		Fair		Carrying		Fair		Carrying		Fair
(In thousands)	Value		Value		Value		Value		Value		Value
Financial Assets:
Cash and cash equivalents	$	462,299	$	462,299	$	322,474	$	322,474	$	308,695	$	308,695
Interest-bearing deposits with banks	5,232,315		5,232,315		4,802,527		4,802,527		3,825,823		3,825,823
Available-for-sale securities	2,373,478		2,373,478		3,055,839		3,055,839		2,946,459		2,946,459
Held-to-maturity securities	2,736,722		2,699,480		579,138		593,767		560,267		575,947
Trading account securities	1,103		1,103		671		671		1,720		1,720
Equity securities with readily determinable fair value	88,193		88,193		90,862		90,862		54,398		54,398
FHLB and FRB stock, at cost	135,408		135,408		135,588		135,588		135,568		135,568
Brokerage customer receivables	26,378		26,378		17,436		17,436		16,818		16,818
Mortgage loans held-for-sale, at fair value	925,312		925,312		1,272,090		1,272,090		959,671		959,671
Loans held-for-investment, at fair value	30,979		30,979		55,134		55,134		253,515		253,515
Loans held-for-investment, at amortized cost	33,233,064		33,276,688		32,023,939		31,871,683		31,882,040		31,723,559

Nonqualified deferred compensation assets	15,797		15,797		15,398		15,398		14,197		14,197
Derivative assets	191,612		191,612		278,423		278,423		321,488		321,488

Accrued interest receivable and other	272,293		272,293		272,339		272,339		272,940		272,940
Total financial assets	$	45,724,953	$	45,731,335	$	42,921,858	$	42,784,231	$	41,553,599	$	41,410,798
Financial Liabilities
Non-maturity deposits	$	35,822,012	$	35,822,012	$	32,116,023	$	32,116,023	$	30,778,127	$	30,778,127
Deposits with stated maturities	4,130,546		4,124,199		4,976,628		4,969,849		5,066,295		5,063,732
FHLB advances	1,241,071		1,164,168		1,228,429		1,172,315		1,228,422		1,207,203
Other borrowings	504,527		504,527		518,928		518,928		507,395		507,395
Subordinated notes	436,811		474,171		436,506		473,093		436,385		473,825
Junior subordinated debentures	253,566		207,675		253,566		204,713		253,566		208,333
Derivative liabilities	161,314		161,314		288,465		288,465		326,990		326,990

Accrued interest payable	15,030		15,030		15,645		15,645		21,310		21,310
Total financial liabilities	$	42,564,877	$	42,473,096	$	39,834,190	$	39,759,031	$	38,618,490	$	38,586,915