XML 46 R36.htm IDEA: XBRL DOCUMENT v3.23.2
Fair value measurements (Tables)
 6 Months Ended
Jun. 30, 2023
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

The following tables present assets and liabilities at June 30, 2023 and December 31, 2022 measured at estimated fair value on a recurring basis:



 

 

Fair Value Measurements

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

June 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Trading account

 

$

137,240

 

 

$

137,240

 

 

$

—

 

 

$

—

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

7,692,452

 

 

 

—

 

 

 

7,692,452

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

614,963

 

 

 

—

 

 

 

614,963

 

 

 

—

 

Residential

 

 

2,340,028

 

 

 

—

 

 

 

2,340,028

 

 

 

—

 

Other debt securities

 

 

160,216

 

 

 

—

 

 

 

160,216

 

 

 

—

 

 

 

 

10,807,659

 

 

 

—

 

 

 

10,807,659

 

 

 

—

 

Equity securities

 

 

218,168

 

 

 

211,341

 

 

 

6,827

 

 

 

—

 

Real estate loans held for sale

 

 

538,306

 

 

 

—

 

 

 

538,306

 

 

 

—

 

Other assets (a)

 

 

374,790

 

 

 

—

 

 

 

371,653

 

 

 

3,137

 

Total assets

 

$

12,076,163

 

 

$

348,581

 

 

$

11,724,445

 

 

$

3,137

 

Other liabilities (a)

 

 

1,295,532

 

 

 

—

 

 

 

1,255,217

 

 

 

40,315

 

Total liabilities

 

$

1,295,532

 

 

$

—

 

 

$

1,255,217

 

 

$

40,315

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Trading account

 

$

117,847

 

 

$

117,847

 

 

$

—

 

 

$

—

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

7,670,960

 

 

 

—

 

 

 

7,670,960

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

574,299

 

 

 

—

 

 

 

574,299

 

 

 

—

 

Residential

 

 

2,330,118

 

 

 

—

 

 

 

2,330,118

 

 

 

—

 

Other debt securities

 

 

173,584

 

 

 

—

 

 

 

173,584

 

 

 

—

 

 

 

 

10,748,961

 

 

 

—

 

 

 

10,748,961

 

 

 

—

 

Equity securities

 

 

151,458

 

 

 

145,289

 

 

 

6,169

 

 

 

—

 

Real estate loans held for sale

 

 

162,393

 

 

 

—

 

 

 

162,393

 

 

 

—

 

Other assets (a)

 

 

435,969

 

 

 

—

 

 

 

435,517

 

 

 

452

 

Total assets

 

$

11,616,628

 

 

$

263,136

 

 

$

11,353,040

 

 

$

452

 

Other liabilities (a)

 

 

1,355,326

 

 

 

—

 

 

 

1,309,301

 

 

 

46,025

 

Total liabilities

 

$

1,355,326

 

 

$

—

 

 

$

1,309,301

 

 

$

46,025

 

 

(a)
Comprised predominantly of interest rate swap agreements used for interest rate risk management (Level 2), interest rate and foreign exchange contracts not designated as hedging instruments (Level 2), commitments to sell real estate loans (Level 2) and commitments to originate real estate loans to be held for sale (Level 3).
Changes in Level 3 Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended June 30, 2023 and 2022 were as follows:

 

 

Other Assets and Other Liabilities

 

 

2023

 

(In thousands)

 

 

 

 

 

 

 

Balance — April 1, 2023

 

$

(28,141

)

 

Total losses realized/unrealized:

 

 

 

 

Included in earnings

 

 

(895

)

(a)

Transfers out of Level 3

 

 

(8,142

)

(b)

Balance — June 30, 2023

 

$

(37,178

)

 

Changes in net unrealized gains (losses) included in earnings related to instruments still held at June 30, 2023

 

$

(2,102

)

(a)

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

Balance — April 1, 2022

 

$

(15,428

)

 

Total losses realized/unrealized:

 

 

 

 

Included in earnings

 

 

(6,609

)

(a)

Transfers out of Level 3

 

 

(2,144

)

(b)

Balance — June 30, 2022

 

$

(24,181

)

 

Changes in net unrealized gains (losses) included in earnings related to instruments still held at June 30, 2022

 

$

(8,441

)

(a)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the six months ended June 30, 2023 and 2022 were as follows:

 

 

Other Assets and
Other Liabilities

 

 

 

(In thousands)

 

 

2023

 

 

 

Balance — January 1, 2023

$

(45,573

)

 

Total gains realized/unrealized:

 

 

 

Included in earnings

 

16,456

 

(a)

Transfers out of Level 3

 

(8,061

)

(b)

Balance — June 30, 2023

$

(37,178

)

 

Changes in net unrealized gains (losses) included in earnings related to instruments still held at June 30, 2023

$

10,543

 

(a)

 

 

 

 

2022

 

 

 

Balance — January 1, 2022

$

6,440

 

 

Total losses realized/unrealized:

 

 

 

Included in earnings

 

(25,309

)

(a)

Transfers out of Level 3

 

(5,312

)

(b)

Balance — June 30, 2022

$

(24,181

)

 

Changes in net unrealized gains (losses) included in earnings related to instruments still held at June 30, 2022

$

3,405

 

(a)

 

(a)
Reported as mortgage banking revenues in the Consolidated Statement of Income and includes the fair value of commitment issuances and expirations.
(b)
Transfers out of Level 3 consist of interest rate locks transferred to closed loans.
Quantitative Information Related to Significant Unobservable Inputs

The following table presents quantitative information about significant unobservable inputs used in the fair value measurements for certain Level 3 assets and liabilities at June 30, 2023 and December 31, 2022:

 

 

Fair Value

 

 

Valuation
Technique

 

Unobservable
Inputs / Assumptions

 

Range
(Weighted-
Average)

 

 

(In thousands)

 

 

 

 

 

 

 

June 30, 2023

 

 

 

 

 

 

 

 

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

Net other assets (liabilities) (a)

 

$

(37,178

)

 

Discounted cash flow

 

Commitment expirations

 

0% - 97% (10%)

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

Net other assets (liabilities) (a)

 

$

(45,573

)

 

Discounted cash flow

 

Commitment expirations

 

0% - 97% (3%)

 

(a)
Other Level 3 assets (liabilities) consist of commitments to originate real estate loans.
Carrying Amounts and Estimated Fair Value for Financial Instrument Assets (Liabilities)

The carrying amounts and estimated fair value for financial instrument assets (liabilities) are presented in the following tables:

 

 

June 30, 2023

 


 

 

Carrying
Amount

 

 

Estimated
 Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,848,386

 

 

 

1,848,386

 

 

 

1,780,005

 

 

 

68,381

 

 

 

—

 

Interest-bearing deposits at banks

 

 

27,106,899

 

 

 

27,106,899

 

 

 

—

 

 

 

27,106,899

 

 

 

—

 

Trading account

 

 

137,240

 

 

 

137,240

 

 

 

137,240

 

 

 

—

 

 

 

—

 

Investment securities

 

 

27,916,455

 

 

 

26,711,845

 

 

 

211,341

 

 

 

26,451,387

 

 

 

49,117

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans and leases

 

 

44,683,549

 

 

 

43,817,470

 

 

 

—

 

 

 

—

 

 

 

43,817,470

 

Commercial real estate loans

 

 

44,648,711

 

 

 

42,386,809

 

 

 

—

 

 

 

322,029

 

 

 

42,064,780

 

Residential real estate loans

 

 

23,762,217

 

 

 

21,800,553

 

 

 

—

 

 

 

7,256,914

 

 

 

14,543,639

 

Consumer loans

 

 

20,249,252

 

 

 

19,335,779

 

 

 

—

 

 

 

—

 

 

 

19,335,779

 

Allowance for credit losses

 

 

(1,998,366

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loans and leases, net

 

 

131,345,363

 

 

 

127,340,611

 

 

 

—

 

 

 

7,578,943

 

 

 

119,761,668

 

Accrued interest receivable

 

 

695,030

 

 

 

695,030

 

 

 

—

 

 

 

695,030

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

(54,937,913

)

 

 

(54,937,913

)

 

 

—

 

 

 

(54,937,913

)

 

 

—

 

Savings and interest-checking deposits

 

 

(88,046,247

)

 

 

(88,046,247

)

 

 

—

 

 

 

(88,046,247

)

 

 

—

 

Time deposits

 

 

(19,074,220

)

 

 

(18,968,171

)

 

 

—

 

 

 

(18,968,171

)

 

 

—

 

Short-term borrowings

 

 

(7,907,884

)

 

 

(7,907,884

)

 

 

—

 

 

 

(7,907,884

)

 

 

—

 

Long-term borrowings

 

 

(7,416,638

)

 

 

(7,091,668

)

 

 

—

 

 

 

(7,091,668

)

 

 

—

 

Accrued interest payable

 

 

(389,251

)

 

 

(389,251

)

 

 

—

 

 

 

(389,251

)

 

 

—

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to originate real estate
   loans for sale

 

$

(37,178

)

 

 

(37,178

)

 

 

—

 

 

 

—

 

 

 

(37,178

)

Commitments to sell real estate loans

 

 

54,533

 

 

 

54,533

 

 

 

—

 

 

 

54,533

 

 

 

—

 

Other credit-related commitments

 

 

(155,903

)

 

 

(155,903

)

 

 

—

 

 

 

—

 

 

 

(155,903

)

Interest rate swap agreements used
   for interest rate risk management

 

 

2,133

 

 

 

2,133

 

 

 

—

 

 

 

2,133

 

 

 

—

 

Interest rate and foreign exchange
   contracts not designated as
   hedging instruments

 

 

(940,230

)

 

 

(940,230

)

 

 

—

 

 

 

(940,230

)

 

 

—

 

 

 

12. Fair value measurements, continued

 

 

December 31, 2022

 


 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

 

 

 

(In thousands)

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,517,244

 

 

 

1,517,244

 

 

 

1,371,688

 

 

 

145,556

 

 

 

—

 

Interest-bearing deposits at banks

 

 

24,958,719

 

 

 

24,958,719

 

 

 

—

 

 

 

24,958,719

 

 

 

—

 

Federal funds sold

 

 

3,000

 

 

 

3,000

 

 

 

—

 

 

 

3,000

 

 

 

—

 

Trading account

 

 

117,847

 

 

 

117,847

 

 

 

117,847

 

 

 

—

 

 

 

—

 

Investment securities

 

 

25,210,871

 

 

 

24,056,322

 

 

 

145,289

 

 

 

23,860,445

 

 

 

50,588

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans and leases

 

 

41,850,566

 

 

 

41,139,985

 

 

 

—

 

 

 

—

 

 

 

41,139,985

 

Commercial real estate loans

 

 

45,364,571

 

 

 

43,214,646

 

 

 

—

 

 

 

130,652

 

 

 

43,083,994

 

Residential real estate loans

 

 

23,755,947

 

 

 

21,780,214

 

 

 

—

 

 

 

7,049,540

 

 

 

14,730,674

 

Consumer loans

 

 

20,593,079

 

 

 

20,093,523

 

 

 

—

 

 

 

—

 

 

 

20,093,523

 

Allowance for credit losses

 

 

(1,925,331

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loans and leases, net

 

 

129,638,832

 

 

 

126,228,368

 

 

 

—

 

 

 

7,180,192

 

 

 

119,048,176

 

Accrued interest receivable

 

 

646,250

 

 

 

646,250

 

 

 

—

 

 

 

646,250

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

(65,501,860

)

 

 

(65,501,860

)

 

 

—

 

 

 

(65,501,860

)

 

 

—

 

Savings and interest-checking deposits

 

 

(87,911,463

)

 

 

(87,911,463

)

 

 

—

 

 

 

(87,911,463

)

 

 

—

 

Time deposits

 

 

(10,101,545

)

 

 

(10,143,110

)

 

 

—

 

 

 

(10,143,110

)

 

 

—

 

Short-term borrowings

 

 

(3,554,951

)

 

 

(3,554,951

)

 

 

—

 

 

 

(3,554,951

)

 

 

—

 

Long-term borrowings

 

 

(3,964,537

)

 

 

(3,926,489

)

 

 

—

 

 

 

(3,926,489

)

 

 

—

 

Accrued interest payable

 

 

(81,356

)

 

 

(81,356

)

 

 

—

 

 

 

(81,356

)

 

 

—

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to originate real estate
   loans for sale

 

$

(45,573

)

 

 

(45,573

)

 

 

—

 

 

 

—

 

 

 

(45,573

)

Commitments to sell real estate loans

 

 

54,424

 

 

 

54,424

 

 

 

—

 

 

 

54,424

 

 

 

—

 

Other credit-related commitments

 

 

(148,772

)

 

 

(148,772

)

 

 

—

 

 

 

—

 

 

 

(148,772

)

Interest rate swap agreements used
   for interest rate risk management

 

 

(7,892

)

 

 

(7,892

)

 

 

—

 

 

 

(7,892

)

 

 

—

 

Interest rate and foreign exchange contracts
   not designated as hedging instruments

 

 

(920,316

)

 

 

(920,316

)

 

 

—

 

 

 

(920,316

)

 

 

—