Fair value measurements (Tables)

3 Months Ended

Mar. 31, 2022

Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

The following tables present assets and liabilities at March 31, 2022 and December 31, 2021 measured at estimated fair value on a recurring basis:

	Fair Value Measurements		Level 1		Level 2		Level 3
	(In thousands)
March 31, 2022
Trading account assets	$	197,558	$	46,655	$	150,903	$	—
Investment securities available for sale:
U.S. Treasury and federal agencies		2,789,717		—		2,789,717		—
Mortgage-backed securities:
Government issued or guaranteed		2,795,177		—		2,795,177		—
Other debt securities		120,305		—		120,305		—
		5,705,199		—		5,705,199		—
Equity securities		81,165		72,166		8,999		—
Real estate loans held for sale		454,003		—		454,003		—
Other assets (a)		42,299		—		40,980		1,319
Total assets	$	6,480,224	$	118,821	$	6,360,084	$	1,319
Trading account liabilities	$	302,506	$	—	$	302,506	$	—
Other liabilities (a)		18,077		—		1,330		16,747
Total liabilities	$	320,583	$	—	$	303,836	$	16,747

December 31, 2021
Trading account assets	$	468,031	$	49,545	$	418,486	$	—
Investment securities available for sale:
U.S. Treasury and federal agencies		678,690		—		678,690		—
Mortgage-backed securities:
Government issued or guaranteed		3,155,312		—		3,155,312		—
Other debt securities		121,802		—		121,802		—
		3,955,804		—		3,955,804		—
Equity securities		77,640		68,850		8,790		—
Real estate loans held for sale		899,282		—		899,282		—
Other assets (a)		24,167		—		12,439		11,728
Total assets	$	5,424,924	$	118,395	$	5,294,801	$	11,728
Trading account liabilities	$	83,434	$	—	$	83,434	$	—
Other liabilities (a)		10,409		—		5,121		5,288
Total liabilities	$	93,843	$	—	$	88,555	$	5,288

(a)	Comprised predominantly of interest rate swap agreements used for interest rate risk management (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 Three Assets And Liabilities Measured At Estimated Fair Value On Recurring Basis Table Text Block

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended March 31, 2022 and 2021 were as follows:

	Investment Securities Available for Sale
	Privately Issued Mortgage-Backed Securities		Other Assets and Other Liabilities
2022	(In thousands)

Balance — January 1, 2022	$	—	$	6,440
Total gains realized/unrealized:
Included in earnings		—		(18,700	)	(a)
Transfers out of Level 3		—		(3,168	)	(b)
Balance — March 31, 2022	$	—		(15,428	)
Changes in unrealized gains included in earnings related to assets still held at March 31, 2022	$	—	$	(13,219	)	(a)

2021

Balance — January 1, 2021	$	16	$	43,234
Total gains realized/unrealized:
Included in earnings		—		6,025		(a)
Transfers out of Level 3		—		(35,502	)	(b)
Balance — March 31, 2021	$	16		13,757
Changes in unrealized gains included in earnings related to assets still held at March 31, 2021	$	—	$	5,300		(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 Table Text Block

The following tables present quantitative information about significant unobservable inputs used in the fair value measurements for certain Level 3 assets and liabilities at March 31, 2022 and December 31, 2021:

	Fair Value			Valuation Technique	Unobservable Inputs/Assumptions	Range (Weighted- Average)
	(In thousands)
March 31, 2022
Recurring fair value measurements
Net other assets (liabilities) (a)		(15,428	)	Discounted cash flow	Commitment expirations	0% - 96% (8%)

December 31, 2021
Recurring fair value measurements
Net other assets (liabilities) (a)		6,440		Discounted cash flow	Commitment expirations	0% - 80% (10%)

(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 table:

	March 31, 2022
	Carrying Amount			Estimated Fair Value			Level 1		Level 2			Level 3
	(In thousands)
Financial assets:
Cash and cash equivalents	$	1,411,460			1,411,460			1,292,609		118,851			—
Interest-bearing deposits at banks		36,025,382			36,025,382			—		36,025,382			—
Trading account assets		197,558			197,558			46,655		150,903			—
Investment securities		9,356,832			9,218,915			72,166		9,090,244			56,505
Loans and leases:
Commercial loans and leases		23,496,017			23,231,047			—		—			23,231,047
Commercial real estate loans		34,553,558			33,804,132			—		215,764			33,588,368
Residential real estate loans		15,595,879			15,118,857			—		4,674,686			10,444,171
Consumer loans		18,162,938			18,307,086			—		—			18,307,086
Allowance for credit losses		(1,472,359	)		—			—		—			—
Loans and leases, net		90,336,033			90,461,122			—		4,890,450			85,570,672
Accrued interest receivable		301,864			301,864			—		301,864			—
Financial liabilities:
Noninterest-bearing deposits	$	(58,520,366	)		(58,520,366	)		—		(58,520,366	)		—
Savings and interest-checking deposits		(65,273,150	)		(65,273,150	)		—		(65,273,150	)		—
Time deposits		(2,525,197	)		(2,526,204	)		—		(2,526,204	)		—
Short-term borrowings		(50,307	)		(50,307	)		—		(50,307	)		—
Long-term borrowings		(3,443,587	)		(3,464,637	)		—		(3,464,637	)		—
Accrued interest payable		(23,316	)		(23,316	)		—		(23,316	)		—
Trading account liabilities		(302,506	)		(302,506	)		—		(302,506	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	(15,428	)		(15,428	)		—		—			(15,428	)
Commitments to sell real estate loans		35,809			35,809			—		35,809			—
Other credit-related commitments		(118,390	)		(118,390	)		—		—			(118,390	)
Interest rate swap agreements used for interest rate risk management		3,841			3,841			—		3,841			—

12. Fair value measurements, continued

	December 31, 2021
	Carrying Amount			Estimated Fair Value			Level 1		Level 2			Level 3
				(In thousands)
Financial assets:
Cash and cash equivalents	$	1,337,577			1,337,577			1,205,269		132,308			—
Interest-bearing deposits at banks		41,872,304			41,872,304			—		41,872,304			—
Trading account assets		468,031			468,031			49,545		418,486			—
Investment securities		7,155,860			7,192,476			68,850		7,066,293			57,333
Loans and leases:
Commercial loans and leases		23,473,324			23,285,224			—		—			23,285,224
Commercial real estate loans		35,389,730			34,730,191			—		425,010			34,305,181
Residential real estate loans		16,074,445			16,160,799			—		4,524,018			11,636,781
Consumer loans		17,974,953			18,121,363			—		—			18,121,363
Allowance for credit losses		(1,469,226	)		—			—		—			—
Loans and leases, net		91,443,226			92,297,577			—		4,949,028			87,348,549
Accrued interest receivable		335,162			335,162			—		335,162			—
Financial liabilities:
Noninterest-bearing deposits	$	(60,131,480	)		(60,131,480	)		—		(60,131,480	)		—
Savings and interest-checking deposits		(68,603,966	)		(68,603,966	)		—		(68,603,966	)		—
Time deposits		(2,807,963	)		(2,810,143	)		—		(2,810,143	)		—
Short-term borrowings		(47,046	)		(47,046	)		—		(47,046	)		—
Long-term borrowings		(3,485,369	)		(3,562,223	)		—		(3,562,223	)		—
Accrued interest payable		(40,866	)		(40,866	)		—		(40,866	)		—
Trading account liabilities		(83,434	)		(83,434	)		—		(83,434	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	6,440			6,440			—		—			6,440
Commitments to sell real estate loans		7,525			7,525			—		7,525			—
Other credit-related commitments		(123,032	)		(123,032	)		—		—			(123,032	)
Interest rate swap agreements used for interest rate risk management		(207	)		(207	)		—		(207	)		—