Fair Value (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value

Schedule of assets and liabilities measured at fair value on a recurring basis

	Fair Value Measurements as of September 30, 2019
	Quoted Prices in		Significant
	Active Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
(dollars in thousands)	(Level 1)		Inputs (Level 2)		Inputs (Level 3)		Total
Assets
U.S. Treasury securities	$	—	$	29,738	$	—	$	29,738
Government agency debt securities		—		24,472		—		24,472
Government-sponsored enterprises debt securities		—		126,649		—		126,649
Government agency mortgage-backed securities(1)		—		343,905		—		343,905
Government-sponsored enterprises mortgage-backed securities(1)		—		371,949		—		371,949
Collateralized mortgage obligations:
Government agency		—		2,486,524		—		2,486,524
Government-sponsored enterprises		—		773,845		—		773,845
Total available-for-sale securities		—		4,157,082		—		4,157,082
Other assets(2)		—		85,883		—		85,883
Liabilities
Other liabilities(3)		—		(958)		(584)		(1,542)
Total	$	—	$	4,242,007	$	(584)	$	4,241,423

(1) Backed by residential real estate.

(2) Other assets include derivative assets.

(3) Other liabilities include derivative liabilities.

	Fair Value Measurements as of December 31, 2018
	Quoted Prices in		Significant
	Active Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
(dollars in thousands)	(Level 1)		Inputs (Level 2)		Inputs (Level 3)		Total
Assets
U.S. Treasury securities	$	—	$	389,470	$	—	$	389,470
Government-sponsored enterprises debt securities		—		241,594		—		241,594
Government agency mortgage-backed securities(1)		—		411,536		—		411,536
Government-sponsored enterprises mortgage-backed securities(1)		—		150,847		—		150,847
Collateralized mortgage obligations:
Government agency		—		2,682,449		—		2,682,449
Government-sponsored enterprises		—		602,592		—		602,592
Debt securities issued by states and political subdivisions		—		19,854		—		19,854
Total available-for-sale securities		—		4,498,342		—		4,498,342
Other assets(2)		—		12,336		—		12,336
Liabilities
Other liabilities(3)		—		(12,085)		(2,607)		(14,692)
Total	$	—	$	4,498,593	$	(2,607)	$	4,495,986

(1) Backed by residential real estate.

(2) Other assets include derivative assets.

(3) Other liabilities include derivative liabilities.

Summary of changes in Level 3 liabilities measured at fair value on a recurring basis

	Visa Derivative
(dollars in thousands)	2019		2018
Three Months Ended September 30,
Balance as of July 1,	$	(1,179)	$	(4,114)
Total net losses included in other noninterest income		(417)		(43)
Settlements		1,012		772
Balance as of September 30,	$	(584)	$	(3,385)
Total net losses included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of September 30,	$	(417)	$	(43)
Nine Months Ended September 30,
Balance as of January 1,	$	(2,607)	$	(5,439)
Total net losses included in other noninterest income		(659)		(123)
Settlements		2,682		2,177
Balance as of September 30,	$	(584)	$	(3,385)
Total net losses included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of September 30,	$	(659)	$	(123)

Summary of estimated fair value of financial instruments not required to be carried at fair value on a recurring basis

	September 30, 2019
			Fair Value Measurements
			Quoted Prices in		Significant		Significant
			Active Markets		Other		Unobservable
			for Identical		Observable		Inputs
(dollars in thousands)	Book Value		Assets (Level 1)		Inputs (Level 2)		(Level 3)		Total
Financial assets:
Cash and cash equivalents	$	1,344,017	$	358,863	$	985,154	$	—	$	1,344,017
Loans held for sale		1,594		—		1,594		—		1,594
Loans(1)		12,675,522		—		—		12,844,384		12,844,384
Financial liabilities:
Time deposits(2)	$	2,707,593	$	—	$	2,699,798	$	—	$	2,699,798
Short-term borrowings		400,000		—		402,133		—		402,133
Long-term borrowings(3)		200,000		—		209,149		—		209,149

	December 31, 2018
			Fair Value Measurements
			Quoted Prices in		Significant		Significant
			Active Markets		Other		Unobservable
			for Identical		Observable		Inputs
(dollars in thousands)	Book Value		Assets (Level 1)		Inputs (Level 2)		(Level 3)		Total
Financial assets:
Cash and cash equivalents	$	1,003,637	$	396,836	$	606,801	$	—	$	1,003,637
Loans held for sale		432		—		432		—		432
Loans(1)		12,928,422		—		—		12,664,170		12,664,170
Financial liabilities:
Time deposits(2)	$	3,092,164	$	—	$	3,058,792	$	—	$	3,058,792
Long-term borrowings(3)		600,000		—		602,088		—		602,088

(1) Excludes financing leases of $167.9 million at September 30, 2019 and $147.8 million at December 31, 2018.

(2) Excludes deposit liabilities with no defined or contractual maturity of $14.1 billion as of both September 30, 2019 and December 31, 2018.

(3) Excludes capital lease obligations of $18 thousand and $26 thousand at September 30, 2019 and December 31, 2018, respectively.

Schedule of assets with fair value adjustments on a nonrecurring basis

(dollars in thousands)	Level 1		Level 2		Level 3
September 30, 2019
Impaired loans	$	—	$	—	$	882
December 31, 2018
Impaired loans	$	—	$	—	$	402

Significant unobservable inputs used in fair value measurements for Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis

	Quantitative Information about Level 3 Fair Value Measurements at September 30, 2019
				Significant	Range
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	(Weighted Average)
Impaired loans	$	882	Appraisal Value	Appraisal Value	n/m(1)
Visa derivative	$	(584)	Discounted Cash Flow	Expected Conversion Rate	1.6228
				Expected Term	4 years
				Growth Rate	15%

	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2018
					Range
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	(Weighted Average)
Impaired loans	$	402	Appraisal Value	Appraisal Value	n/m(1)
Visa derivative	$	(2,607)	Discounted Cash Flow	Expected Conversion Rate	1.6298
				Expected Term	4 years
				Growth Rate	15%

(1) The fair value of these assets is determined based on appraised values of collateral or broker price opinions, the range of which is not meaningful to disclose.