XML 47 R37.htm IDEA: XBRL DOCUMENT v3.23.3
Fair value measurements (Tables)
 9 Months Ended
Sep. 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 September 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)

 

September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Trading account

 

$

136,998

 

 

$

118,838

 

 

$

18,160

 

 

$

—

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

7,735,107

 

 

 

—

 

 

 

7,735,107

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

525,469

 

 

 

—

 

 

 

525,469

 

 

 

—

 

Residential

 

 

2,168,287

 

 

 

—

 

 

 

2,168,287

 

 

 

—

 

Other debt securities

 

 

163,546

 

 

 

—

 

 

 

163,546

 

 

 

—

 

 

 

 

10,592,409

 

 

 

—

 

 

 

10,592,409

 

 

 

—

 

Equity securities

 

 

259,216

 

 

 

252,080

 

 

 

7,136

 

 

 

—

 

Real estate loans held for sale

 

 

430,720

 

 

 

—

 

 

 

430,720

 

 

 

—

 

Other assets (a)

 

 

420,302

 

 

 

—

 

 

 

417,922

 

 

 

2,380

 

Total assets

 

$

11,839,645

 

 

$

370,918

 

 

$

11,466,347

 

 

$

2,380

 

Other liabilities (a)

 

 

1,489,795

 

 

 

—

 

 

 

1,436,012

 

 

 

53,783

 

Total liabilities

 

$

1,489,795

 

 

$

—

 

 

$

1,436,012

 

 

$

53,783

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 and nine months ended September 30, 2023 and 2022 were as follows:

 

 

Other Assets and Other Liabilities

 

 

 

Three months ended

 

 

Nine months ended

 

 

 

September 30,
2023

 

 

September 30,
2022

 

 

September 30,
2023

 

 

September 30,
2022

 

 

 

(In thousands)

 

Beginning balance

 

$

(37,178

)

 

$

(24,181

)

 

$

(45,573

)

 

$

6,440

 

Total gains (losses) realized/unrealized:

 

 

 

 

 

 

 

 

 

 

 

 

Included in earnings (a)

 

 

(10,155

)

 

 

(9,321

)

 

 

6,301

 

 

 

(34,630

)

Transfers out of Level 3 (b)

 

 

(4,070

)

 

 

(14,804

)

 

 

(12,131

)

 

 

(20,116

)

Ending balance

 

$

(51,403

)

 

$

(48,306

)

 

$

(51,403

)

 

$

(48,306

)

Changes in net unrealized gains (losses) included in earnings
   related to instruments still held at period end (a)

 

$

(12,957

)

 

$

(17,160

)

 

$

(12,341

)

 

$

(48,108

)

___________________________________________________________________________________________________________________________________________

(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 September 30, 2023 and December 31, 2022:

 

 

Fair Value

 

 

Valuation
Technique

 

Unobservable
Inputs / Assumptions

 

Range
(Weighted-
Average)

 

 

(In thousands)

 

 

 

 

 

 

 

September 30, 2023

 

 

 

 

 

 

 

 

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

Net other assets (liabilities) (a)

 

$

(51,403

)

 

Discounted cash flow

 

Commitment expirations

 

0% - 99% (8%)

 

 

 

 

 

 

 

 

 

 

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:

 

 

September 30, 2023

 


 

 

Carrying
Amount

 

 

Estimated
 Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,768,864

 

 

 

1,768,864

 

 

 

1,701,427

 

 

 

67,437

 

 

 

—

 

Interest-bearing deposits at banks

 

 

30,114,286

 

 

 

30,114,286

 

 

 

—

 

 

 

30,114,286

 

 

 

—

 

Trading account

 

 

136,998

 

 

 

136,998

 

 

 

118,838

 

 

 

18,160

 

 

 

—

 

Investment securities

 

 

27,336,103

 

 

 

25,529,926

 

 

 

252,080

 

 

 

25,231,860

 

 

 

45,986

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans and leases

 

 

45,058,033

 

 

 

44,080,119

 

 

 

—

 

 

 

—

 

 

 

44,080,119

 

Commercial real estate loans

 

 

43,573,598

 

 

 

41,273,080

 

 

 

—

 

 

 

226,022

 

 

 

41,047,058

 

Residential real estate loans

 

 

23,448,270

 

 

 

20,746,776

 

 

 

—

 

 

 

6,808,082

 

 

 

13,938,694

 

Consumer loans

 

 

20,274,784

 

 

 

19,351,349

 

 

 

—

 

 

 

—

 

 

 

19,351,349

 

Allowance for credit losses

 

 

(2,052,127

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loans and leases, net

 

 

130,302,558

 

 

 

125,451,324

 

 

 

—

 

 

 

7,034,104

 

 

 

118,417,220

 

Accrued interest receivable

 

 

734,036

 

 

 

734,036

 

 

 

—

 

 

 

734,036

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

(53,786,987

)

 

 

(53,786,987

)

 

 

—

 

 

 

(53,786,987

)

 

 

—

 

Savings and interest-checking deposits

 

 

(90,297,219

)

 

 

(90,297,219

)

 

 

—

 

 

 

(90,297,219

)

 

 

—

 

Time deposits

 

 

(20,043,601

)

 

 

(19,931,959

)

 

 

—

 

 

 

(19,931,959

)

 

 

—

 

Short-term borrowings

 

 

(6,730,663

)

 

 

(6,730,663

)

 

 

—

 

 

 

(6,730,663

)

 

 

—

 

Long-term borrowings

 

 

(7,123,426

)

 

 

(6,811,799

)

 

 

—

 

 

 

(6,811,799

)

 

 

—

 

Accrued interest payable

 

 

(401,752

)

 

 

(401,752

)

 

 

—

 

 

 

(401,752

)

 

 

—

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to originate real estate
   loans for sale

 

$

(51,403

)

 

 

(51,403

)

 

 

—

 

 

 

—

 

 

 

(51,403

)

Commitments to sell real estate loans

 

 

65,337

 

 

 

65,337

 

 

 

—

 

 

 

65,337

 

 

 

—

 

Other credit-related commitments

 

 

(150,708

)

 

 

(150,708

)

 

 

—

 

 

 

—

 

 

 

(150,708

)

Interest rate swap agreements used
   for interest rate risk management

 

 

12,185

 

 

 

12,185

 

 

 

—

 

 

 

12,185

 

 

 

—

 

Interest rate and foreign exchange contracts
   not designated as hedging instruments

 

 

(1,095,612

)

 

 

(1,095,612

)

 

 

—

 

 

 

(1,095,612

)

 

 

—

 

 

 

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

)

 

 

—