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Fair Value Disclosures (Tables)
6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
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 1Level 2Level 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.
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 PeriodPurchases / AdditionsSales / ReductionsRealizedUnrealizedBalance 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 securities11,901 — — — (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 securities11,465 — — — 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 securities11,846 — — — (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 securities11,417 — — — 296 11,713 
Loans held for sale(2)6,933 1,685 (525)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).
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
TotalLevel 1Level 2Level 3
June 30, 2022
Financial assets:
Cash and cash equivalents$4,275,356 $4,275,356 $4,275,356 $— $— 
Available-for-sale debt securities2,535,646 2,535,646 625,803 1,898,173 11,670 
Held-to-maturity debt securities980,935 899,247 — 899,247 — 
Equity securities36,118 36,118 24,724 11,394 — 
Loans held for sale4,266 4,266 — — 4,266 
Loans held for investment, net23,838,360 23,741,360 — — 23,741,360 
Derivative assets11,049 11,049 — 11,049 — 
Financial liabilities:
Total deposits25,440,021 25,439,069 — — 25,439,069 
Short-term borrowings2,651,536 2,651,536 — 2,651,536 — 
Long-term debt917,098 882,258 — 882,258 — 
Derivative liabilities46,215 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 securities3,538,201 3,538,201 — 3,346,322 191,879 
Equity securities45,607 45,607 33,589 12,018 — 
Loans held for sale8,123 8,123 — 465 7,658 
Loans held for investment, net22,595,088 22,631,252 — — 22,631,252 
Derivative assets37,788 37,788 — 37,788 — 
Financial liabilities:
Total deposits28,109,365 28,109,762 — — 28,109,762 
Short-term borrowings2,202,832 2,202,832 — 2,202,832 — 
Long-term debt928,738 952,404 — 952,404 — 
Derivative liabilities37,788 37,788 — 37,788 —