Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Assets And Liabilities Measured On A Recurring Basis [Table Text Block]

The fair value of financial assets and liabilities measured on a recurring basis was as follows as of June 30, 2019 (in thousands):

	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Trading securities:
U.S. government agency debentures	$	83,148	$	—	$	83,148	$	—
U.S. government agency residential mortgage-backed securities	1,620,613		—		1,620,613		—
Municipal and other tax-exempt securities	49,718		—		49,718		—
Asset-backed securities	93,546		—		93,546		—
Other trading securities	53,370		—		53,370		—
Total trading securities	1,900,395		—		1,900,395		—
Available for sale securities:
U.S. Treasury	1,889		1,889		—		—
Municipal and other tax-exempt securities	2,470		—		2,470		—
Residential agency mortgage-backed securities	7,354,741		—		7,354,741		—
Residential non-agency mortgage-backed securities	47,057		—		47,057		—
Commercial agency mortgage-backed securities	3,107,785		—		3,107,785		—
Other debt securities	472		—		—		472
Total available for sale securities	10,514,414		1,889		10,512,053		472
Fair value option securities – U.S. government agency residential mortgage-backed securities	1,138,820		—		1,138,820		—
Residential mortgage loans held for sale	193,570		—		177,497		16,073
Mortgage servicing rights1	208,308		—		—		208,308
Derivative contracts, net of cash collateral2	415,221		29,352		385,869		—
Liabilities:
Derivative contracts, net of cash collateral2	381,454		—		381,454		—

¹  A reconciliation of the beginning and ending fair value of mortgage servicing rights and disclosures of significant assumptions used to determine fair value are presented in Note 6, Mortgage Banking Activities.

²  See Note 3 for detail of fair value of derivative contracts by contract type. Derivative contracts in asset positions that were valued based on quoted prices in active markets for identical instruments (Level 1) are primarily exchange-traded energy and interest rate derivative contacts, net of cash margin. Derivative contacts in liability positions that were valued using quoted prices in active markets for identical instruments are exchange-traded interest rate and agricultural derivative contracts, fully offset by cash margin.

The fair value of financial assets and liabilities measured on a recurring basis was as follows as of December 31, 2018 (in thousands):

	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Trading securities:
U.S. government agency debentures	$	63,765	$	—	$	63,765	$	—
U.S. government agency residential mortgage-backed securities	1,791,584		—		1,791,584		—
Municipal and other tax-exempt securities	34,507		—		34,507		—
Asset-backed securities	42,656		—		42,656		—
Other trading securities	24,411		—		24,411		—
Total trading securities	1,956,923		—		1,956,923		—
Available for sale securities:
U.S. Treasury	493		493		—		—
Municipal and other tax-exempt securities	2,864		—		2,864		—
Residential agency mortgage-backed securities	5,804,708		—		5,804,708		—
Residential non-agency mortgage-backed securities	59,736		—		59,736		—
Commercial agency mortgage-backed securities	2,953,889		—		2,953,889		—
Other debt securities	35,430		—		34,958		472
Total available for sale securities	8,857,120		493		8,856,155		472
Fair value option securities – U.S. government agency residential mortgage-backed securities	283,235		—		283,235		—
Residential mortgage loans held for sale	149,221		—		134,014		15,207
Mortgage servicing rights1	259,254		—		—		259,254
Derivative contracts, net of cash collateral2	320,929		44,074		276,855		—
Liabilities:
Derivative contracts, net of cash collateral2	362,306		—		362,306		—

¹  A reconciliation of the beginning and ending fair value of mortgage servicing rights and disclosures of significant assumptions used to determine fair value are presented in Note 6, Mortgage Banking Activities.

²  See Note 3 for detail of fair value of derivative contracts by contract type. Derivative contracts based on quoted prices in active markets for identical instruments (Level 1) are exchange-traded interest rate, energy and agricultural derivative contacts, net of cash margin. Derivative contracts in liability positions that were valued using quoted prices in active markets for identical instruments (Level 1) are exchange-traded interest rate contracts, fully offset by cash margin.

Fair Value Assets Measured On Recurring Basis, Significant Unobservable Inputs [Table Text Block]

The following represents the changes for the three and six months ended June 30, 2019 related to assets measured at fair value on a recurring basis using significant unobservable inputs (in thousands):

	Available for Sale Securities
	Municipal and other tax-exempt securities		Other debt securities		Residential mortgage loans held for sale
Balance, March 31, 2019	$	—	$	472	$	15,776
Transfer to Level 3 from Level 21	—		—		907
Purchases	—		—		—
Proceeds from sales	—		—		(998		)
Redemptions and distributions	—		—		—
Gain (loss) recognized in earnings:
Mortgage banking revenue	—		—		388
Other comprehensive income (loss):
Net change in unrealized gain (loss)	—		—		—
Balance, June 30, 2019	$	—	$	472	$	16,073

¹   Recurring transfers to Level 3 from Level 2 consist of residential mortgage loans intended for sale to U.S. government agencies that fail to meet conforming standards.

	Available for Sale Securities
	Municipal and other tax-exempt		Other debt securities		Residential mortgage loans held for sale
Balance, December 31, 2018	$	—	$	472	$	15,207
Transfer to Level 3 from Level 21	—		—		1,889
Purchases	—		—		—
Proceeds from sales	—		—		(1,379		)
Redemptions and distributions	—		—		—
Gain (loss) recognized in earnings:
Mortgage banking revenue	—		—		356
Other comprehensive income (loss):
Net change in unrealized gain (loss)	—		—		—
Balance, June 30, 2019	$	—	$	472	$	16,073

¹   Recurring transfers to Level 3 from Level 2 consist of residential mortgage loans intended for sale to U.S. government agencies that fail to meet conforming standards.

The following represents the changes for the three and six months ended June 30, 2018 related to assets measured at fair value on a recurring basis using significant unobservable inputs (in thousands):

	Available for Sale Securities
	Municipal and other tax-exempt securities		Other debt securities			Residential mortgage loans held for sale
Balance, March 31, 2018	$	1,891	$	472		$	13,871
Transfer to Level 3 from Level 21	—		—			687
Purchases	—		—			—
Proceeds from sales	—		—			(488		)
Redemptions and distributions	—		—			—
Gain (loss) recognized in earnings:
Mortgage banking revenue	—		—			173
Other comprehensive income (loss):
Net change in unrealized gain (loss)	139		(1		)	—
Balance, June 30, 2018	$	2,030	$	471		$	14,243

¹  Recurring transfers to Level 3 from Level 2 consist of residential mortgage loans intended for sale to U.S. government agencies that fail to meet conforming standards.

	Available for Sale Securities
	Municipal and other tax-exempt			Other debt securities			Residential mortgage loans held for sale
Balance, December 31, 2017	$	4,802		$	472		$	12,299
Transfer to Level 3 from Level 21	—			—			2,843
Purchases	—			—			—
Proceeds from sales	—			—			(812		)
Redemptions and distributions	(3,045		)	—			—
Gain (loss) recognized in earnings
Mortgage banking revenue	—			—			(87		)
Other comprehensive income (loss):
Net change in unrealized gain (loss)	273			(1		)	—
Balance, June 30, 2018	$	2,030		$	471		$	14,243

¹ 

Recurring transfers to Level 3 from Level 2 consist of residential mortgage loans intended for sale to U.S. government agencies that fail to meet conforming standards.

Fair Value Inputs, Fair Value Measured On a Recurring Basis, Quantitative Information [Table Text Block]

A summary of quantitative information about assets measured at fair value on a recurring basis using Significant Unobservable Inputs (Level 3) as of June 30, 2019 follows (in thousands):

	Fair Value	Valuation Technique(s)		Unobservable Input	Range (Weighted Average)
Available for sale securities – Other debt securities	472	Discounted cash flows	1	Interest rate spread	7.26%-7.26% (7.26%)	3
					94.41%-94.41% (94.41%)	2
Residential mortgage loans held for sale	16,073	Quoted prices of loans sold in securitization transactions, with a liquidity discount applied		Liquidity discount applied to the market value of mortgage loans qualifying for sale to U.S. government agencies.	94.70%

¹  Discounted cash flows developed using discount rates primarily based on reference to interest rate spreads for comparable securities of similar duration and credit rating as determined by the nationally-recognized rating agencies, adjusted for lack of trading volume.

²  Represents fair value as a percentage of par value.

³  Interest rate yields used to value investment grade taxable securities based on comparable short-term taxable securities which are generally yielding approximately 3 percent.

A summary of quantitative information about assets measured at fair value on a recurring basis using Significant Unobservable Inputs (Level 3) as of December 31, 2018 follows (in thousands):

	Fair Value	Valuation Technique(s)		Unobservable Input	Range (Weighted Average)
Available for sale securities – Other debt securities	472	Discounted cash flows	1	Interest rate spread	7.88%-7.88% (7.88%)	3
					94.44%-94.44% (94.44%)	2
Residential mortgage loans held for sale	15,207	Quoted prices of loans sold in securitization transactions, with a liquidity discount applied		Liquidity discount applied to the market value of mortgage loans qualifying for sale to U.S. government agencies.	92.38%

¹  Discounted cash flows developed using discount rates primarily based on reference to interest rate spreads for comparable securities of similar duration and credit rating as determined by the nationally-recognized rating agencies, adjusted for lack of trading volume

²  Represents fair value as a percentage of par value.

³ 

Interest rate yields used to value investment grade taxable securities based on comparable short-term taxable securities which are generally yielding less than 3 percent.

Fair Value Assets Measured on Nonrecurring Basis [Table Text Block]

The following represents the carrying value of assets measured at fair value on a non-recurring basis (and related losses) during the period. The carrying value represents only those assets with a balance at June 30, 2019 for which the fair value was adjusted during the six months ended June 30, 2019:

							Fair Value Adjustments for the
	Carrying Value at June 30, 2019						Three Months Ended June 30, 2019 Recognized in:				Six Months Ended June 30, 2019 Recognized in:
	Quoted Prices in Active Markets for Identical Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs		Gross charge-offs against allowance for loan losses		Net losses and expenses of repossessed assets, net		Gross charge-offs against allowance for loan losses		Net losses and expenses of repossessed assets, net
Impaired loans	$	—	$	—	$	29,187	$	11,335	$	—	$	20,917	$	—
Real estate and other repossessed assets	—		2,642		427		—		86		—		512

The following represents the carrying value of assets measured at fair value on a non-recurring basis (and related losses) during the period. The carrying value represents only those assets with a balance at June 30, 2018 for which the fair value was adjusted during the six months ended June 30, 2018:

							Fair Value Adjustments for the
	Carrying Value at June 30, 2018						Three Months Ended June 30, 2018 Recognized in:				Six Months Ended June 30, 2018 Recognized in:
	Quoted Prices in Active Markets for Identical Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs		Gross charge-offs against allowance for loan losses		Net losses and expenses of repossessed assets, net		Gross charge-offs against allowance for loan losses		Net losses and expenses of repossessed assets, net
Impaired loans	$	—	$	1,045	$	11,763	$	6,701	$	—	$	7,198	$	—
Real estate and other repossessed assets	—		1,996		6,838		—		118		—		5,242

Fair Value Inputs, Fair Value Measured On a Nonrecurring Basis, Quantitative Information [Table Text Block]

A summary of quantitative information about Non-recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of June 30, 2019 follows (in thousands):

	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Impaired loans	$	29,187	Discounted cash flows	Management knowledge of industry and non-real estate collateral including but not limited to recoverable oil and gas reserves, forward-looking commodity prices, estimated operating costs	12% - 76% (47%)1
Real estate and other repossessed assets	427		Appraised value, as adjusted	Marketability adjustments off appraised value2	75% - 89% (88%)

¹  Represents fair value as a percentage of the unpaid principal balance.

²  Marketability adjustments include consideration of estimated costs to sell which is approximately 10% of the fair value.

A summary of quantitative information about Non-recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of December 31, 2018 follows (in thousands):

	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Impaired loans	$	17,401	Discounted cash flows	Management knowledge of industry and non-real estate collateral including but not limited to recoverable oil and gas reserves, forward-looking commodity prices, estimated operating costs	35% - 80% (50%)1
Real estate and other repossessed assets	6,366		Discounted cash flows	Recoverable oil and gas reserves, forward-looking commodity prices, estimated operating costs	N/A

¹  

Represents fair value as a percentage of the unpaid principal balance.

Fair Value of Financial Instruments [Table Text Block]

The following table presents the carrying values and estimated fair values of all financial instruments, including those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis as of June 30, 2019 (dollars in thousands):

	Carrying Value			Estimated Fair Value		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and due from banks	$	739,109		$	739,109	$	739,109	$	—	$	—
Interest-bearing cash and cash equivalents	596,382			596,382		596,382		—		—
Trading securities:
U.S. government agency debentures	83,148			83,148		—		83,148		—
U.S. government agency residential mortgage-backed securities	1,620,613			1,620,613		—		1,620,613		—
Municipal and other tax-exempt securities	49,718			49,718		—		49,718		—
Asset-backed securities	93,546			93,546		—		93,546		—
Other trading securities	53,370			53,370		—		53,370		—
Total trading securities	1,900,395			1,900,395		—		1,900,395		—
Investment securities:
Municipal and other tax-exempt securities	124,822			128,009		—		128,009		—
U.S. government agency residential mortgage-backed securities	11,599			12,099		—		12,099		—
Other debt securities	191,256			206,907		—		8,197		198,710
Total investment securities	327,677			347,015		—		148,305		198,710
Available for sale securities:
U.S. Treasury	1,889			1,889		1,889		—		—
Municipal and other tax-exempt securities	2,470			2,470		—		2,470		—
Residential agency mortgage-backed securities	7,354,741			7,354,741		—		7,354,741		—
Residential non-agency mortgage-backed securities	47,057			47,057		—		47,057		—
Commercial agency mortgage-backed securities	3,107,785			3,107,785		—		3,107,785		—
Other debt securities	472			472		—		—		472
Total available for sale securities	10,514,414			10,514,414		1,889		10,512,053		472
Fair value option securities – U.S. government agency residential mortgage-backed securities	1,138,820			1,138,820		—		1,138,820		—
Residential mortgage loans held for sale	193,570			193,570		—		177,497		16,073
Loans:								—
Commercial	14,336,908			14,282,197		—		—		14,282,197
Commercial real estate	4,710,033			4,703,587		—		—		4,703,587
Residential mortgage	2,170,822			2,190,665		—		—		2,190,665
Personal	1,037,889			1,028,526		—		—		1,028,526
Total loans	22,255,652			22,204,975		—		—		22,204,975
Allowance for loan losses	(202,534		)	—		—		—		—
Loans, net of allowance	22,053,118			22,204,975		—		—		22,204,975
Mortgage servicing rights	208,308			208,308		—		—		208,308
Derivative instruments with positive fair value, net of cash collateral	415,221			415,221		29,352		385,869		—
Deposits with no stated maturity	23,077,183			23,077,183		—		—		23,077,183
Time deposits	2,227,938			2,220,527		—		—		2,220,527
Other borrowed funds	10,155,756			10,115,711		—		—		10,115,711
Subordinated debentures	275,892			274,697		—		274,697		—
Derivative instruments with negative fair value, net of cash collateral	381,454			381,454		—		381,454		—

The following table presents the carrying values and estimated fair values of all financial instruments, including those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis as of December 31, 2018 (dollars in thousands):

	Carrying Value			Estimated Fair Value		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and due from banks	$	741,749		$	741,749	$	741,749	$	—	$	—
Interest-bearing cash and cash equivalents	401,675			401,675		401,675		—		—
Trading securities:
U.S. government agency debentures	63,765			63,765		—		63,765		—
U.S. government agency residential mortgage-backed securities	1,791,584			1,791,584		—		1,791,584		—
Municipal and other tax-exempt securities	34,507			34,507		—		34,507		—
Asset-backed securities	42,656			42,656		—		42,656		—
Other trading securities	24,411			24,411		—		24,411		—
Total trading securities	1,956,923			1,956,923		—		1,956,923		—
Investment securities:
Municipal and other tax-exempt securities	137,296			138,562		—		138,562		—
U.S. government agency residential mortgage-backed securities	12,612			12,770		—		12,770		—
Other debt securities	205,279			215,966		—		7,905		208,061
Total investment securities	355,187			367,298		—		159,237		208,061
Available for sale securities:
U.S. Treasury	493			493		493		—		—
Municipal and other tax-exempt securities	2,864			2,864		—		2,864		—
Residential agency mortgage-backed securities	5,804,708			5,804,708		—		5,804,708		—
Residential non-agency mortgage-backed securities	59,736			59,736		—		59,736		—
Commercial agency mortgage-backed securities	2,953,889			2,953,889		—		2,953,889		—
Other debt securities	35,430			35,430		—		34,958		472
Total available for sale securities	8,857,120			8,857,120		493		8,856,155		472
Fair value option securities – U.S. government agency residential mortgage-backed securities	283,235			283,235		—		283,235		—
Residential mortgage loans held for sale	149,221			149,221		—		134,014		15,207
Loans:
Commercial	13,636,078			13,526,162		—		—		13,526,162
Commercial real estate	4,764,813			4,713,747		—		—		4,713,747
Residential mortgage	2,230,033			2,213,951		—		—		2,213,951
Personal	1,025,806			1,024,368		—		—		1,024,368
Total loans	21,656,730			21,478,228		—		—		21,478,228
Allowance for loan losses	(207,457		)	—		—		—		—
Loans, net of allowance	21,449,273			21,478,228		—		—		21,478,228
Mortgage servicing rights	259,254			259,254		—		—		259,254
Derivative instruments with positive fair value, net of cash collateral	320,929			320,929		44,074		276,855		—
Deposits with no stated maturity	23,150,383			23,150,383		—		—		23,150,383
Time deposits	2,113,380			2,073,538		—		—		2,073,538
Other borrowed funds	8,161,211			7,071,953		—		—		7,071,953
Subordinated debentures	275,913			261,977		—		261,977		—
Derivative instruments with negative fair value, net of cash collateral	362,306			362,306		—		362,306		—