Fair Value (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value

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

Fair Value Measurements as of June 30, 2021

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 and government agency debt securities

—

180,772

—

180,772

Mortgage-backed securities:

Residential - Government agency⁽¹⁾

—

113,289

—

113,289

Residential - Government-sponsored enterprises⁽¹⁾

—

1,263,448

—

1,263,448

Commercial - Government agency

—

491,447

—

491,447

Commercial - Government-sponsored enterprises

—

1,223,805

—

1,223,805

Collateralized mortgage obligations:

Government agency

—

1,662,134

—

1,662,134

Government-sponsored enterprises

—

2,019,035

—

2,019,035

Total available-for-sale securities

—

6,953,930

—

6,953,930

Other assets⁽²⁾

12,901

82,712

—

95,613

Liabilities

Other liabilities⁽³⁾

—

(972)

(2,132)

(3,104)

Total

12,901

7,035,670

(2,132)

7,046,439

(1)	Backed by residential real estate.

(2)	Other assets classified as Level 1 include mutual funds and money market funds that have quoted prices in active markets and are related to the Company’s deferred compensation plans. Other assets classified as Level 2 include derivative assets.

(3)	Other liabilities include derivative liabilities.


	Fair Value Measurements as of December 31, 2020
	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 and government agency debt securities	$	—	$	171,421	$	—	$	171,421
Mortgage-backed securities:
Residential - Government agency⁽¹⁾		—		160,462		—		160,462
Residential - Government-sponsored enterprises⁽¹⁾		—		447,200		—		447,200
Commercial - Government agency		—		599,650		—		599,650
Commercial - Government-sponsored enterprises		—		932,157		—		932,157
Collateralized mortgage obligations:
Government agency		—		1,933,553		—		1,933,553
Government-sponsored enterprises		—		1,826,972		—		1,826,972
Total available-for-sale securities		—		6,071,415		—		6,071,415
Other assets⁽²⁾		11,691		129,895		—		141,586
Liabilities
Other liabilities⁽³⁾		—		(1,283)		(4,554)		(5,837)
Total	$	11,691	$	6,200,027	$	(4,554)	$	6,207,164

(1)	Backed by residential real estate.

(2)	Other assets classified as Level 1 include mutual funds and money market funds that have quoted prices in active markets and are related to the Company’s deferred compensation plans. Other assets classified as Level 2 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)	2021		2020
Three Months Ended June 30,
Balance as of April 1,	$	(3,369)	$	(3,199)
Total net (losses) gains included in other noninterest income		(23)		103
Settlements		1,260		1,001
Balance as of June 30,	$	(2,132)	$	(2,095)
Total net (losses) gains included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of June 30,	$	(23)	$	103

Six Months Ended June 30,
Balance as of January 1,	$	(4,554)	$	(4,233)
Total net gains included in other noninterest income		3		109
Settlements		2,419		2,029
Balance as of June 30,	$	(2,132)	$	(2,095)
Total net gains included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of June 30,	$	3	$	109

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

June 30, 2021

Fair Value Measurements

Quoted Prices in

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

1,906,298

347,861

1,558,437

—

1,906,298

Loans held for sale

1,241

—

1,271

—

1,271

Loans⁽¹⁾

12,860,814

—

13,044,658

Financial liabilities:

Time deposits⁽²⁾

1,903,663

—

1,907,349

—

1,907,349

Long-term borrowings

200,000

—

210,874

—

210,874


	December 31, 2020
			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	$	1,040,944	$	303,373	$	737,571	$	—	$	1,040,944
Loans held for sale		11,579		—		12,018		—		12,018
Loans⁽¹⁾		13,033,686		—		—		13,255,636		13,255,636

Financial liabilities:
Time deposits⁽²⁾	$	2,348,298	$	—	$	2,357,137	$	—	$	2,357,137
Long-term borrowings⁽³⁾		200,000		—		214,167		—		214,167

(1)	Excludes financing leases of $243.0 million at June 30, 2021 and $245.4 million at December 31, 2020.

(2)	Excludes deposit liabilities with no defined or contractual maturity of $18.9 billion as of June 30, 2021 and $16.9 billion as of December 31, 2020.

(3)	Excludes capital lease obligations of $10 thousand as of December 31, 2020.

Schedule of assets with fair value adjustments on a nonrecurring basis


(dollars in thousands)	Level 1		Level 2		Level 3
June 30, 2021
Collateral-dependent loans	$	—	$	—	$	—
December 31, 2020
Collateral-dependent loans	$	—	$	—	$	1,840

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 June 30, 2021
				Significant
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	Range
Visa derivative	$	(2,132)	Discounted Cash Flow	Expected Conversation Rate - 1.6228⁽²⁾	1.5977-1.6228
				Expected Term - 1 year⁽³⁾	0.5 to 1.5 years
				Growth Rate - 13%⁽⁴⁾	4% - 17%


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2020
				Significant
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	Range
Collateral-dependent loans	$	1,840	Appraisal Value	Appraisal Value	n/m⁽¹⁾
Visa derivative	$	(4,554)	Discounted Cash Flow	Expected Conversation Rate - 1.6228⁽²⁾	1.5977-1.6228
				Expected Term - 1 year⁽³⁾	0.5 to 1.5 years
				Growth Rate - 13%⁽⁴⁾	4% - 17%

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

(2)	Due to the uncertainty in the movement of the conversion rate, the current conversion rate was utilized in the fair value calculation.

(3)	The expected term of 1 year was based on the median of 0.5 to 1.5 years.

(4)	The growth rate of 13% was based on the arithmetic average of analyst price targets.