Schedule of assets and liabilities measured at fair value |
Assets and liabilities measured at fair value are as follows: | | | | | | | | | | | | | | | | | | | Fair Value Measurements Using | (in thousands) | Level 1 | | Level 2 | | Level 3 | June 30, 2022 | | | | | | Available-for-sale debt securities:(1) | | | | | | U.S. Treasury securities | $ | 625,803 | | | $ | — | | | $ | — | | U.S. government agency securities | — | | | 108,618 | | | — | | Residential mortgage-backed securities | — | | | 1,789,555 | | | — | | | | | | | | | | | | | | CRT securities | — | | | — | | | 11,670 | | Equity securities(1)(2) | 24,724 | | | 11,394 | | | — | | Loans held for sale(3) | — | | | — | | | 4,266 | | | | | | | | | | | | | | Derivative assets(4) | — | | | 11,049 | | | — | | Derivative liabilities(4) | — | | | 46,215 | | | — | | Non-qualified deferred compensation plan liabilities(5) | 22,938 | | | — | | | — | | | | | | | | December 31, 2021 | | | | | | Available-for-sale debt securities:(1) | | | | | | U.S. government agency securities | $ | — | | | $ | 120,944 | | | $ | — | | Residential mortgage-backed securities | — | | | 3,225,378 | | | — | | Tax-exempt asset-backed securities | — | | | — | | | 180,033 | | CRT securities | — | | | — | | | 11,846 | | Equity securities(1)(2) | 33,589 | | | 12,018 | | | — | | Loans held for sale(3) | — | | | 465 | | | 7,658 | | | | | | | | | | | | | | Derivative assets(4) | — | | | 37,788 | | | — | | Derivative liabilities(4) | — | | | 37,788 | | | — | | Non-qualified deferred compensation plan liabilities(5) | 29,695 | | | — | | | — | |
(1)Investment securities are measured at fair value on a recurring basis, generally monthly, except for tax-exempt asset-backed securities and CRT securities which are measured quarterly. (2)Equity securities consist of investments that qualify for consideration under the regulations implementing the Community Reinvestment Act and investments related to our non-qualified deferred compensation plan. (3)Mortgage loans held for sale are measured at fair value on a recurring basis, generally monthly. (4)Derivative assets and liabilities are measured at fair value on a recurring basis, generally quarterly. (5)Non-qualified deferred compensation plan liabilities represent the fair value of the obligation to the employee, which generally corresponds to the fair value of the invested assets, and are measured at fair value on a recurring basis, generally monthly.
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation |
The following table summarizes the changes in Level 3 assets measured at fair value on a recurring basis: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net Gains (Losses) | | | (in thousands) | Balance at Beginning of Period | | Purchases / Additions | | Sales / Reductions | | Realized | | Unrealized | | Balance at End of Period | Three months ended June 30, 2022 | | | | | | | | | | | | Available-for-sale debt securities:(1) | | | | | | | | | | | | Tax-exempt asset-backed securities | $ | 165,845 | | | $ | — | | | $ | (166,890) | | | $ | — | | | $ | 1,045 | | | $ | — | | CRT securities | 11,901 | | | — | | | — | | | — | | | (231) | | | 11,670 | | Loans held for sale(2) | 8,085 | | | — | | | (4,029) | | | — | | | 210 | | | 4,266 | | Three months ended June 30, 2021 | | | | | | | | | | | | Available-for-sale debt securities:(1) | | | | | | | | | | | | Tax-exempt asset-backed securities | $ | 181,566 | | | $ | — | | | $ | (142) | | | $ | — | | | $ | 4,530 | | | $ | 185,954 | | CRT securities | 11,465 | | | — | | | — | | | — | | | 248 | | | 11,713 | | Loans held for sale(2) | 7,275 | | | 1,148 | | | (246) | | | — | | | 50 | | | 8,227 | | | | | | | | | | | | | | Six months ended June 30, 2022 | | | | | | | | | | | | Available-for-sale debt securities:(1) | | | | | | | | | | | | Tax-exempt asset-backed securities | $ | 180,033 | | | $ | — | | | $ | (170,626) | | | $ | — | | | $ | (9,407) | | | $ | — | | CRT securities | 11,846 | | | — | | | — | | | — | | | (176) | | | 11,670 | | Loans held for sale(2) | 7,658 | | | 1,327 | | | (4,600) | | | — | | | (119) | | | 4,266 | | Six months ended June 30, 2021 | | | | | | | | | | | | Available-for-sale debt securities:(1) | | | | | | | | | | | | Tax-exempt asset-backed securities | $ | 199,176 | | | $ | — | | | $ | (11,513) | | | $ | — | | | $ | (1,709) | | | $ | 185,954 | | CRT securities | 11,417 | | | — | | | — | | | — | | | 296 | | | 11,713 | | Loans held for sale(2) | 6,933 | | | 1,685 | | | (525) | | | 5 | | | 129 | | | 8,227 | |
(1)Unrealized gains/(losses) on available-for-sale debt securities are recorded in AOCI. Realized gains/(losses) are recorded in other non-interest income on the consolidated statements of income and other comprehensive income/(loss). (2)Realized and unrealized gains/(losses) on loans held for sale are recorded in net gain/(loss) on sale of loans held for sale on the consolidated statements of income and other comprehensive income/(loss).
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Summary of the carrying amounts and estimated fair values of financial instruments |
A summary of the carrying amounts and estimated fair values of financial instruments is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Estimated Fair Value | (in thousands) | Carrying Amount | | Total | | Level 1 | | Level 2 | | Level 3 | June 30, 2022 | | | | | | | | | | Financial assets: | | | | | | | | | | Cash and cash equivalents | $ | 4,275,356 | | | $ | 4,275,356 | | | $ | 4,275,356 | | | $ | — | | | $ | — | | Available-for-sale debt securities | 2,535,646 | | | 2,535,646 | | | 625,803 | | | 1,898,173 | | | 11,670 | | Held-to-maturity debt securities | 980,935 | | | 899,247 | | | — | | | 899,247 | | | — | | Equity securities | 36,118 | | | 36,118 | | | 24,724 | | | 11,394 | | | — | | Loans held for sale | 4,266 | | | 4,266 | | | — | | | — | | | 4,266 | | | | | | | | | | | | Loans held for investment, net | 23,838,360 | | | 23,741,360 | | | — | | | — | | | 23,741,360 | | Derivative assets | 11,049 | | | 11,049 | | | — | | | 11,049 | | | — | | Financial liabilities: | | | | | | | | | | Total deposits | 25,440,021 | | | 25,439,069 | | | — | | | — | | | 25,439,069 | | Short-term borrowings | 2,651,536 | | | 2,651,536 | | | — | | | 2,651,536 | | | — | | Long-term debt | 917,098 | | | 882,258 | | | — | | | 882,258 | | | — | | Derivative liabilities | 46,215 | | | 46,215 | | | — | | | 46,215 | | | — | | | | | | | | | | | | December 31, 2021 | | | | | | | | | | Financial assets: | | | | | | | | | | Cash and cash equivalents | $ | 7,946,659 | | | $ | 7,946,659 | | | $ | 7,946,659 | | | $ | — | | | $ | — | | Available-for-sale debt securities | 3,538,201 | | | 3,538,201 | | | — | | | 3,346,322 | | | 191,879 | | | | | | | | | | | | Equity securities | 45,607 | | | 45,607 | | | 33,589 | | | 12,018 | | | — | | Loans held for sale | 8,123 | | | 8,123 | | | — | | | 465 | | | 7,658 | | | | | | | | | | | | Loans held for investment, net | 22,595,088 | | | 22,631,252 | | | — | | | — | | | 22,631,252 | | Derivative assets | 37,788 | | | 37,788 | | | — | | | 37,788 | | | — | | Financial liabilities: | | | | | | | | | | Total deposits | 28,109,365 | | | 28,109,762 | | | — | | | — | | | 28,109,762 | | Short-term borrowings | 2,202,832 | | | 2,202,832 | | | — | | | 2,202,832 | | | — | | Long-term debt | 928,738 | | | 952,404 | | | — | | | 952,404 | | | — | | Derivative liabilities | 37,788 | | | 37,788 | | | — | | | 37,788 | | | — | |
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