Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2022

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.

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).

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		—