Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

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, 2020 (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	$	5,181	$	—	$	5,181	$	—
Residential agency mortgage-backed securities	2,150,759		—		2,150,759		—
Municipal and other tax-exempt securities	30,533		—		30,533		—
Other trading securities	59,007		—		59,007		—
Total trading securities	2,245,480		—		2,245,480		—
Available for sale securities:
U.S. Treasury	509		509		—		—
Municipal and other tax-exempt securities	51,601		—		51,601		—
Residential agency mortgage-backed securities	9,384,998		—		9,384,998		—
Residential non-agency mortgage-backed securities	34,873		—		34,873		—
Commercial agency mortgage-backed securities	3,334,409		—		3,334,409		—
Other debt securities	10,879		—		10,407		472
Total available for sale securities	12,817,269		509		12,816,288		472
Fair value option securities – Residential agency mortgage-backed securities	134,756		—		134,756		—
Residential mortgage loans held for sale	295,290		—		286,785		8,505
Mortgage servicing rights1	97,644		—		—		97,644
Derivative contracts, net of cash collateral2	593,568		11,713		581,855		—
Liabilities:
Derivative contracts, net of cash collateral2	446,328		—		446,328		—

1A 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 5, Mortgage Banking Activities.

2See 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 interest rate derivative contracts. Derivative contracts in liability positions that were valued using quoted prices in active markets for identical instruments are exchange-traded interest rate, energy 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, 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	$	44,264	$	—	$	44,264	$	—
Residential agency mortgage-backed securities	1,504,651		—		1,504,651		—
Municipal and other tax-exempt securities	26,196		—		26,196		—
Asset-backed securities	14,084		—		14,084		—
Other trading securities	34,726		—		34,726		—
Total trading securities	1,623,921		—		1,623,921		—
Available for sale securities:
U.S. Treasury	1,600		1,600		—		—
Municipal and other tax-exempt securities	1,861		—		1,861		—
Residential agency mortgage-backed securities	8,046,096		—		8,046,096		—
Residential non-agency mortgage-backed securities	41,609		—		41,609		—
Commercial agency mortgage-backed securities	3,178,005		—		3,178,005		—
Other debt securities	472		—		—		472
Total available for sale securities	11,269,643		1,600		11,267,571		472
Fair value option securities:
U.S. Treasury	9,917		9,917		—		—
Residential agency mortgage-backed securities	1,088,660		—		1,088,660		—
Total fair value option securities	1,098,577		9,917		1,088,660		—
Residential mortgage loans held for sale	182,271		—		173,958		8,313
Mortgage servicing rights1	201,886		—		—		201,886
Derivative contracts, net of cash collateral2	323,375		8,944		314,431		—
Liabilities:
Derivative contracts, net of cash collateral2	251,128		—		251,128		—

1A 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 5, Mortgage Banking Activities.

2See 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 and energy derivative contracts, 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 and agricultural 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, 2020 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, 2020	$	472	$	9,685
Transfer to Level 3 from Level 21	—		304
Purchases	—		—
Proceeds from sales	—		(1,612)
Redemptions and distributions	—		—
Gain (loss) recognized in earnings:
Mortgage banking revenue	—		128
Other comprehensive income (loss):
Net change in unrealized gain (loss)	—		—
Balance, September 30, 2020	$	472	$	8,505

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, 2019	$	472	$	8,313
Transfer to Level 3 from Level 21	—		3,896
Purchases	—		—
Proceeds from sales	—		(3,200)
Redemptions and distributions	—		—
Gain (loss) recognized in earnings:
Mortgage banking revenue	—		(504)
Other comprehensive income (loss):
Net change in unrealized gain (loss)	—		—
Balance, September 30, 2020	$	472	$	8,505

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, 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, Dec. 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

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, 2020 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	5.61%-5.61% (5.61%)	3
						94.32%-94.32% (94.32%)	2
Residential mortgage loans held for sale	8,505		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.	90.24%

1Discounted 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.

2Represents fair value as a percentage of par value.

3Interest rate yields used to value investment grade taxable securities based on comparable short-term taxable securities which are generally yielding less than 2 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, 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	7.08%-7.08% (7.08%)	3
						94.40%-94.40% (94.40%)	2
Residential mortgage loans held for sale	8,313		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.	95.23%

1Discounted 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

2Represents fair value as a percentage of par value.

3Interest 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, 2020 for which the fair value was adjusted during the nine months ended September 30, 2020:

							Fair Value Adjustments for the
	Carrying Value at September 30, 2020						Three Months Ended Sept. 30, 2020 Recognized in:				Nine Months Ended Sept. 30, 2020 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
Nonaccruing loans	$	—	$	396	$	13,001	$	6,371	$	—	$	28,624	$	—
Real estate and other repossessed assets	—		16,828		2,993		—		(4,370)		—		(4,452)

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
Nonaccruing loans	$	—	$	79	$	9,810	$	2,644	$	—	$	13,868	$	—
Real estate and other repossessed assets	—		5,044		936		—		(979)		—		(532)

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, 2020 follows (in thousands):

	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Nonaccruing loans	$	13,001	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	0% - 73% (18%)1
Real estate and other repossessed assets	2,993		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	N/A

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

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)
Nonaccruing 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.

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, 2020 (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	$	658,612	$	658,612	$	658,612	$	—	$	—
Interest-bearing cash and cash equivalents	347,759		347,759		347,759		—		—
Trading securities:
U.S. government agency debentures	5,181		5,181		—		5,181		—
Residential agency mortgage-backed securities	2,150,759		2,150,759		—		2,150,759		—
Municipal and other tax-exempt securities	30,533		30,533		—		30,533		—
Other trading securities	59,007		59,007		—		59,007		—
Total trading securities	2,245,480		2,245,480		—		2,245,480		—
Investment securities:
Municipal and other tax-exempt securities	76,109		80,368		—		80,368		—
Residential agency mortgage-backed securities	9,317		10,219		—		10,219		—
Other debt securities	171,314		194,342		—		7,376		186,966
Total investment securities	256,740		284,929		—		97,963		186,966
Allowance for credit losses	(739)		—		—		—		—
Investment securities, net of allowance	256,001		284,929		—		97,963		186,966
Available for sale securities:
U.S. Treasury	509		509		509		—		—
Municipal and other tax-exempt securities	51,601		51,601		—		51,601		—
Residential agency mortgage-backed securities	9,384,998		9,384,998		—		9,384,998		—
Residential non-agency mortgage-backed securities	34,873		34,873		—		34,873		—
Commercial agency mortgage-backed securities	3,334,409		3,334,409		—		3,334,409		—
Other debt securities	10,879		10,879		—		10,407		472
Total available for sale securities	12,817,269		12,817,269		509		12,816,288		472
Fair value option securities – Residential agency mortgage-backed securities	134,756		134,756		—		134,756		—
Residential mortgage loans held for sale	295,290		295,290		—		286,785		8,505
Loans:
Commercial	13,565,706		13,500,846		—		—		13,500,846
Commercial real estate	4,693,700		4,673,857		—		—		4,673,857
Paycheck protection program	2,097,325		2,070,466		—		—		2,070,466
Loans to individuals	3,446,569		3,452,042		—		—		3,452,042
Total loans	23,803,300		23,697,211		—		—		23,697,211
Allowance for loan losses	(419,777)		—		—		—		—
Loans, net of allowance	23,383,523		23,697,211		—		—		23,697,211
Mortgage servicing rights	97,644		97,644		—		—		97,644
Derivative instruments with positive fair value, net of cash collateral	593,568		593,568		11,713		581,855		—
Deposits with no stated maturity	32,965,027		32,965,027		—		—		32,965,027
Time deposits	2,007,973		2,019,474		—		—		2,019,474
Other borrowed funds	3,745,081		3,741,686		—		—		3,741,686
Subordinated debentures	275,986		269,083		—		269,083		—
Derivative instruments with negative fair value, net of cash collateral	446,328		446,328		—		446,328		—

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, 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	$	735,836	$	735,836	$	735,836	$	—	$	—
Interest-bearing cash and cash equivalents	522,985		522,985		522,985		—		—
Trading securities:
U.S. government agency debentures	44,264		44,264		—		44,264		—
Residential agency mortgage-backed securities	1,504,651		1,504,651		—		1,504,651		—
Municipal and other tax-exempt securities	26,196		26,196		—		26,196		—
Asset-backed securities	14,084		14,084		—		14,084		—
Other trading securities	34,726		34,726		—		34,726		—
Total trading securities	1,623,921		1,623,921		—		1,623,921		—
Investment securities:
Municipal and other tax-exempt securities	93,653		96,897		—		96,897		—
Residential agency mortgage-backed securities	10,676		11,164		—		11,164		—
Other debt securities	189,089		206,341		—		8,206		198,135
Total investment securities	293,418		314,402		—		116,267		198,135
Available for sale securities:
U.S. Treasury	1,600		1,600		1,600		—		—
Municipal and other tax-exempt securities	1,861		1,861		—		1,861		—
Residential agency mortgage-backed securities	8,046,096		8,046,096		—		8,046,096		—
Residential non-agency mortgage-backed securities	41,609		41,609		—		41,609		—
Commercial agency mortgage-backed securities	3,178,005		3,178,005		—		3,178,005		—
Other debt securities	472		472		—		—		472
Total available for sale securities	11,269,643		11,269,643		1,600		11,267,571		472
Fair value option securities:
U.S. Treasury	9,917		9,917		9,917		—		—
Residential agency mortgage-backed securities	1,088,660		1,088,660		—		1,088,660		—
Total fair value option securities	1,098,577		1,098,577		9,917		1,088,660		—
Residential mortgage loans held for sale	182,271		182,271		—		173,958		8,313
Loans:
Commercial	14,031,650		13,966,221		—		—		13,966,221
Commercial real estate	4,433,783		4,422,717		—		—		4,422,717
Residential mortgage	2,084,172		2,098,093		—		—		2,098,093
Personal	1,201,382		1,202,298		—		—		1,202,298
Total loans	21,750,987		21,689,329		—		—		21,689,329
Allowance for loan losses	(210,759)		—		—		—		—
Loans, net of allowance	21,540,228		21,689,329		—		—		21,689,329
Mortgage servicing rights	201,886		201,886		—		—		201,886
Derivative instruments with positive fair value, net of cash collateral	323,375		323,375		8,944		314,431		—
Deposits with no stated maturity	25,403,319		25,403,319		—		—		25,403,319
Time deposits	2,217,849		2,212,467		—		—		2,212,467
Other borrowed funds	8,345,405		8,315,860		—		—		8,315,860
Subordinated debentures	275,923		284,627		—		284,627		—
Derivative instruments with negative fair value, net of cash collateral	251,128		251,128		—		251,128		—