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Fair Value Measurements
3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Under applicable accounting guidance, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
We determine the fair values of our financial instruments based on the fair value hierarchy established under applicable accounting guidance, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs used to measure fair value.
For more information regarding the fair value hierarchy and how we measure fair value, see Note 2–Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2021.
As of March 31, 2022 and December 31, 2021, our assets and liabilities carried at fair value on a recurring basis were as follows:
Level 1Level 2Level 3Total Fair Value
March 31, 2022(In thousands)
Assets
Investment securities:
Corporate bonds$ $9,736 $ $9,736 
Agency bond securities 205,393  205,393 
Agency mortgage-backed securities 1,924,613  1,924,613 
Municipal bonds 22,603  22,603 
Asset-backed securities 6,543  6,543 
Loans held for sale  4,501 4,501 
Total assets$ $2,168,888 $4,501 $2,173,389 
Liabilities
Contingent consideration$ $ $1,647 $1,647 
December 31, 2021
Assets
Investment securities:
Corporate bonds$— $9,973 $— $9,973 
Agency bond securities— 221,596 — 221,596 
Agency mortgage-backed securities— 1,848,331 — 1,848,331 
Municipal bonds— 28,180 — 28,180 
Asset-backed securities— 7,421 — 7,421 
Loans held for sale— — 5,148 5,148 
Total assets$— $2,115,501 $5,148 $2,120,649 
Liabilities
Contingent consideration$— $— $1,347 $1,347 
We based the fair value of our fixed income securities held as of March 31, 2022 and December 31, 2021 on quoted prices in active markets for similar assets. We had no transfers between Level 1, Level 2 or Level 3 assets or liabilities during the three months ended March 31, 2022 or 2021.
A reconciliation of changes in fair value for Level 3 assets or liabilities are not considered material to these consolidated financial statements and therefore are not presented for any of the periods presented.