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Estimated Fair Values (Tables)
6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Estimated Fair Values For Certain Financial Assets And Financial Liabilities
The table presents the carrying values and estimated fair values for financial instruments as of June 30, 2020 and December 31, 2019:
(Dollars in thousands)June 30, 2020December 31, 2019
Carrying valueFair valueCarrying valueFair value
Cash and due from banks$389,233  $389,233  $376,719  $376,719  
Overnight investments3,107,575  3,107,575  1,107,844  1,107,844  
Investment in marketable equity securities114,316  114,316  82,333  82,333  
Investment securities available for sale8,619,282  8,619,282  7,059,674  7,059,674  
Investment securities held to maturity774,878  791,325  30,996  30,996  
Loans held for sale107,881  107,881  67,869  67,869  
Net loans and leases32,195,975  32,604,388  28,656,355  28,878,550  
Income earned not collected175,496  175,496  123,154  123,154  
Federal Home Loan Bank stock45,392  45,392  43,039  43,039  
Mortgage and other servicing rights20,167  21,163  24,891  26,927  
Deposits with no stated maturity38,202,609  38,202,609  30,593,627  30,593,627  
Time deposits3,276,636  3,303,841  3,837,609  3,842,162  
Securities sold under customer repurchase agreements740,276  740,276  442,956  442,956  
Federal Home Loan Bank borrowings657,682  679,993  572,185  577,362  
Subordinated debt504,246  506,089  163,412  173,685  
Other borrowings96,791  95,861  148,318  149,232  
FDIC shared-loss payable15,025  15,730  112,395  114,252  
Accrued interest payable14,085  14,085  18,124  18,124  
Assets And Liabilities Carried At Fair Value On A Recurring Basis
For assets and liabilities carried at fair value on a recurring basis, the following table provides fair value information as of June 30, 2020 and December 31, 2019:
June 30, 2020
  Fair value measurements using:
(Dollars in thousands)Fair valueLevel 1 inputsLevel 2 inputsLevel 3 inputs
Assets measured at fair value
Investment securities available for sale
U.S. Treasury$754,586  $—  $754,586  $—  
Government agency545,709  —  545,709  —  
Residential mortgage-backed securities5,790,392  —  5,790,392  —  
Commercial mortgage-backed securities1,079,822  —  1,079,822  —  
Corporate bonds448,773  —  278,796  169,977  
Total investment securities available for sale$8,619,282  $—  $8,449,305  $169,977  
Marketable equity securities$114,316  $50,352  $63,964  $—  
Loans held for sale$107,881  $—  $107,881  $—  
December 31, 2019
 Fair value measurements using:
Fair valueLevel 1 inputsLevel 2 inputsLevel 3 inputs
Assets measured at fair value
Investment securities available for sale
U.S. Treasury$409,999  $—  $409,999  $—  
Government agency682,772  —  682,772  —  
Residential mortgage-backed securities5,267,090  —  5,267,090  —  
Commercial mortgage-backed securities380,020  —  380,020  —  
Corporate bonds201,566  —  131,881  69,685  
State, county and municipal118,227  —  118,227  —  
Total investment securities available for sale$7,059,674  $—  $6,989,989  $69,685  
Marketable equity securities$82,333  $29,458  $52,875  $—  
Loans held for sale$67,869  $—  $67,869  $—  
Fair Value of Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following tables summarize activity for Level 3 assets:
Corporate bonds
Three months ended June 30Six months ended June 30
(Dollars in thousands)2020201920202019
Beginning balance$67,016  $146,287  $69,685  $143,226  
Purchases100,595  991  100,595  3,991  
Unrealized net gains (losses) included in other comprehensive income2,449  1,822  (1,917) 1,838  
Amounts included in net income(83) 37  (168) 82  
Transfers in—  —  1,782  —  
Ending balance$169,977  $149,137  $169,977  $149,137  
Fair Value Level 3 Significant Unobservable Input Assumptions
(Dollars in thousands)June 30, 2020
Level 3 assetsValuation techniqueSignificant unobservable inputFair Value
Corporate bondsIndicative bid provided by brokerMultiple factors, including but not limited to, current operations, financial condition, cash flows, and recently executed financing transactions related to the issuer$169,977  
Fair Value Option
The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for residential real estate originated for sale measured at fair value as of June 30, 2020 and December 31, 2019:
June 30, 2020
(Dollars in thousands)Fair valueAggregate unpaid principal balanceDifference
Originated loans held for sale$107,881  $102,189  $5,692  
December 31, 2019
Fair valueAggregate unpaid principal balanceDifference
Originated loans held for sale$67,869  $65,697  $2,172  
No originated loans held for sale were 90 or more days past due or on nonaccrual status as of June 30, 2020 or December 31, 2019.
We may be required to measure certain financial assets at fair value on a nonrecurring basis. These adjustments to fair value usually result from the application of lower of amortized cost or fair value accounting or write-downs of individual assets due to impairment.
Following the adoption of ASC 326, the population of loans measured at fair value on a non-recurring basis has greatly diminished and is limited to collateral-dependent loans evaluated individually. These collateral-dependent loans are deemed to be at fair value if there is an associated allowance for credit losses or if a charge-off has been recorded in the previous 12 months. Collateral values are determined using appraisals or other third-party value estimates of the subject property discounted based on estimated selling costs, generally between 6% and 10%, and immaterial adjustments for other external factors that may impact the marketability of the collateral. The weighted average discount for estimated selling costs applied was 7.81%.
Prior to the adoption of ASC 326, impaired loans were deemed to be at fair value if an associated allowance or current period charge-off had been recorded. The value of impaired loans was determined by either collateral valuations or discounted present value of the expected cash flow calculations. Collateral values were determined using appraisals or other third-party value estimates of the subject property with discounts, generally between 6% and 11%, applied for estimated selling costs and other external factors that may impact the marketability of the property. Expected cash flows were determined using expected payment information at the individual loan level, discounted using the effective interest rate. The effective interest rate for impaired loans generally ranges between 3% and 7%.OREO acquired or written down within the previous 12 months is deemed to be at fair value. Asset valuations are determined by using appraisals or other third-party value estimates of the subject property with with discounts generally between 7% and 16% applied for estimated selling costs and other external factors that may impact the marketability of the property. At June 30, 2020, the weighted average discount applied was 8.16%. Changes to the value of the assets between scheduled valuation dates are monitored through continued communication with brokers and monthly reviews by the asset manager assigned to each asset. If there are any significant changes in the market or the subject property, valuations are adjusted or new appraisals ordered to ensure the reported values reflect the most current information.
Assets And Liabilities Carried At Fair Value On A Nonrecurring Basis
For financial assets and liabilities carried at fair value on a nonrecurring basis, the following table provides fair value information as of June 30, 2020 and December 31, 2019:
June 30, 2020
  Fair value measurements using:
(Dollars in thousands)Fair valueLevel 1 inputsLevel 2 inputsLevel 3 inputs
Collateral-dependent loans$14,341  $—  $—  $14,341  
Other real estate owned44,465  —  —  44,465  
Mortgage servicing rights17,992  —  —  17,992  
December 31, 2019
 Fair value measurements using:
Fair valueLevel 1 inputsLevel 2 inputsLevel 3 inputs
Impaired loans$132,336  $—  $—  $132,336  
Other real estate owned38,310  —  —  38,310  
Mortgage servicing rights3,757  —  —  3,757