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Fair Value (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value

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

Fair Value Measurements as of December 31, 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

—

192,563

—

192,563

Mortgage-backed securities:

Residential - Government agency⁽¹⁾

—

137,264

—

137,264

Residential - Government-sponsored enterprises⁽¹⁾

—

1,491,100

—

1,491,100

Commercial - Government agency

—

387,663

—

387,663

Commercial - Government-sponsored enterprises

—

1,369,443

—

1,369,443

Collateralized mortgage obligations:

Government agency

—

2,079,523

—

2,079,523

Government-sponsored enterprises

—

2,621,044

—

2,621,044

Collateralized loan obligations

—

105,247

—

105,247

Debt securities issued by states and political subdivisions

—

44,185

—

44,185

Total available-for-sale securities

—

8,428,032

—

8,428,032

Other assets⁽²⁾

7,382

50,925

—

58,307

Liabilities

Other liabilities⁽³⁾

—

(1,238)

(5,530)

(6,768)

Total

7,382

8,477,719

(5,530)

8,479,571


	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
Year Ended December 31,
Balance as of January 1,	$	(4,554)	$	(4,233)
Total net losses included in other noninterest income		(5,909)		(4,641)
Settlements		4,933		4,320
Balance as of December 31,	$	(5,530)	$	(4,554)
Total net losses included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of December 31,	$	(5,909)	$	(4,641)

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

December 31, 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

1,258,469

246,716

1,011,753

—

1,258,469

Loans held for sale

538

—

542

—

542

Loans⁽¹⁾

12,730,605

—

12,791,811

Financial liabilities:

Time deposits⁽²⁾

1,776,438

—

1,773,321

—

1,773,321


	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 $231.4 million at December 31, 2021 and $245.4 million at December 31, 2020.

(2)	Excludes deposit liabilities with no defined or contractual maturity of $20.0 billion at December 31, 2021 and $16.9 billion at December 31, 2020.

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

Schedule of assets with fair value adjustments on a nonrecurring basis


(dollars in thousands)	Level 1		Level 2		Level 3
December 31, 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 December 31, 2021
				Significant
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	Range
Visa derivative	$	(5,530)	Discounted Cash Flow	Expected Conversation Rate - 1.6181⁽²⁾	1.5885-1.6181
				Expected Term - 1 year⁽³⁾	0.5 to 1.5 years
				Growth Rate - 26%⁽⁴⁾	10% - 38%


	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 as of the respective consolidated balance sheet dates 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 was based on the arithmetic average of analyst price targets.