Fair Value Measurements (Tables)

9 Months Ended

Sep. 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 September 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	$	63,334	$	—	$	63,334	$	—
Residential agency mortgage-backed securities	1,480,458		—		1,480,458		—
Municipal and other tax-exempt securities	44,105		—		44,105		—
Asset-backed securities	36,928		—		36,928		—
Other trading securities	50,387		—		50,387		—
Total trading securities	1,675,212		—		1,675,212		—
Available for sale securities:
U.S. Treasury	2,296		2,296		—		—
Municipal and other tax-exempt securities	1,848		—		1,848		—
Residential agency mortgage-backed securities	7,740,461		—		7,740,461		—
Residential non-agency mortgage-backed securities	44,803		—		44,803		—
Commercial agency mortgage-backed securities	3,234,671		—		3,234,671		—
Other debt securities	472		—		—		472
Total available for sale securities	11,024,551		2,296		11,021,783		472
Fair value option securities:
U.S. Treasury	552,536		552,536		—		—
Residential agency mortgage-backed securities	1,263,862		—		1,263,862		—
Total fair value option securities	1,816,398		552,536		1,263,862		—
Residential mortgage loans held for sale	282,487		—		268,919		13,568
Mortgage servicing rights1	193,661		—		—		193,661
Derivative contracts, net of cash collateral2	352,019		40,491		311,528		—
Liabilities:
Derivative contracts, net of cash collateral2	336,791		—		336,791		—

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, interest rate and agricultural 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 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	$	—
Residential agency 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 – Residential agency 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 nine months ended September 30, 2019 related to assets measured at fair value on a recurring basis using significant unobservable inputs (in thousands):

	Available for sale - Other debt securities		Residential mortgage loans held for sale
Balance, June 30, 2019	$	472	$	16,073
Transfer to Level 3 from Level 21	—		261
Purchases	—		—
Proceeds from sales	—		(3,152		)
Redemptions and distributions	—		—
Gain (loss) recognized in earnings:
Mortgage banking revenue	—		386
Other comprehensive income (loss):
Net change in unrealized gain (loss)	—		—
Balance, September 30, 2019	$	472	$	13,568

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 - Other debt securities		Residential mortgage loans held for sale
Balance, December 31, 2018	$	472	$	15,207
Transfer to Level 3 from Level 21	—		2,150
Purchases	—		—
Proceeds from sales	—		(4,531		)
Redemptions and distributions	—		—
Gain (loss) recognized in earnings:
Mortgage banking revenue	—		742
Other comprehensive income (loss):
Net change in unrealized gain (loss)	—		—
Balance, September 30, 2019	$	472	$	13,568

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 nine months ended September 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, June 30, 2018	$	2,030		$	471	$	14,243
Transfer to Level 3 from Level 21	—			—		2,862
Purchases	—			—		—
Proceeds from sales	—			—		(143		)
Redemptions and distributions	(2,050		)	—		—
Gain (loss) recognized in earnings:
Mortgage banking revenue	—			—		(124		)
Other comprehensive income (loss):
Net change in unrealized gain (loss)	20			1		—
Balance, September 30, 2018	$	—		$	472	$	16,838

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	—			—		5,603
Purchases	—			—		—
Proceeds from sales	—			—		(853		)
Redemptions and distributions	(5,095		)	—		—
Gain (loss) recognized in earnings
Mortgage banking revenue	—			—		(211		)
Other comprehensive income (loss):
Net change in unrealized gain (loss)	293			—		—
Balance, September 30, 2018	$	—		$	472	$	16,838

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 September 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	7.46%-7.46% (7.46%)	3
					94.42%-94.42% (94.42%)	2
Residential mortgage loans held for sale	13,568	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.	96.36%

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 September 30, 2019 for which the fair value was adjusted during the nine months ended September 30, 2019:

							Fair Value Adjustments for the
	Carrying Value at September 30, 2019						Three Months Ended Sept. 30, 2019 Recognized in:					Nine Months Ended Sept. 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 (gains) and operating expenses of repossessed assets			Gross charge-offs against allowance for loan losses		Net losses (gains) and operating expenses of repossessed assets
Impaired loans	$	—	$	79	$	9,810	$	2,644	$	—		$	13,868	$	—
Real estate and other repossessed assets	—		5,044		936		—		(979		)	—		(532		)

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 September 30, 2018 for which the fair value was adjusted during the nine months ended September 30, 2018:

							Fair Value Adjustments for the
	Carrying Value at September 30, 2018						Three Months Ended Sept. 30, 2018 Recognized in:				Nine Months Ended Sept. 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 operating expenses of repossessed assets		Gross charge-offs against allowance for loan losses		Net losses and operating expenses of repossessed assets
Impaired loans	$	—	$	1,065	$	24,428	$	9,086	$	—	$	16,279	$	—
Real estate and other repossessed assets	—		4,608		6,545		—		2,161		—		7,388

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 September 30, 2019 follows (in thousands):

	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Impaired loans	$	9,810	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	8% - 76% (28%)1
Real estate and other repossessed assets	936		Appraised value, as adjusted	Marketability adjustments off appraised value2	75% - 89% (85%)

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 September 30, 2018 follows (in thousands):

	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Impaired loans	$	24,428	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	41% - 84% (55%)1
Real estate and other repossessed assets	6,545		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 September 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	$	761,130		$	761,130	$	761,130	$	—	$	—
Interest-bearing cash and cash equivalents	465,458			465,458		465,458		—		—
Trading securities:
U.S. government agency debentures	63,334			63,334		—		63,334		—
Residential agency mortgage-backed securities	1,480,458			1,480,458		—		1,480,458		—
Municipal and other tax-exempt securities	44,105			44,105		—		44,105		—
Asset-backed securities	36,928			36,928		—		36,928		—
Other trading securities	50,387			50,387		—		50,387		—
Total trading securities	1,675,212			1,675,212		—		1,675,212		—
Investment securities:
Municipal and other tax-exempt securities	104,418			107,647		—		107,647		—
Residential agency mortgage-backed securities	11,125			11,650		—		11,650		—
Other debt securities	188,681			204,724		—		7,702		197,022
Total investment securities	304,224			324,021		—		126,999		197,022
Available for sale securities:
U.S. Treasury	2,296			2,296		2,296		—		—
Municipal and other tax-exempt securities	1,848			1,848		—		1,848		—
Residential agency mortgage-backed securities	7,740,461			7,740,461		—		7,740,461		—
Residential non-agency mortgage-backed securities	44,803			44,803		—		44,803		—
Commercial agency mortgage-backed securities	3,234,671			3,234,671		—		3,234,671		—
Other debt securities	472			472		—		—		472
Total available for sale securities	11,024,551			11,024,551		2,296		11,021,783		472
Fair value option securities:
U.S. Treasury	552,536			552,536		552,536		—		—
Residential agency mortgage-backed securities	1,263,862			1,263,862		—		1,263,862		—
Total fair value option securities	1,816,398			1,816,398		552,536		1,263,862		—
Residential mortgage loans held for sale	282,487			282,487		—		268,919		13,568
Loans:								—
Commercial	14,424,625			14,397,846		—		—		14,397,846
Commercial real estate	4,626,057			4,626,804		—		—		4,626,804
Residential mortgage	2,117,303			2,132,158		—		—		2,132,158
Personal	1,117,382			1,108,984		—		—		1,108,984
Total loans	22,285,367			22,265,792		—		—		22,265,792
Allowance for loan losses	(204,432		)	—		—		—		—
Loans, net of allowance	22,080,935			22,265,792		—		—		22,265,792
Mortgage servicing rights	193,661			193,661		—		—		193,661
Derivative instruments with positive fair value, net of cash collateral	352,019			352,019		40,491		311,528		—
Deposits with no stated maturity	23,923,535			23,923,535		—		—		23,923,535
Time deposits	2,243,541			2,241,778		—		—		2,241,778
Other borrowed funds	10,235,385			10,193,602		—		—		10,193,602
Subordinated debentures	275,909			276,393		—		276,393		—
Derivative instruments with negative fair value, net of cash collateral	336,791			336,791		—		336,791		—

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		—
Residential agency 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		—
Residential agency 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 – Residential agency 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	7,142,801			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		—