Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

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 March 31, 2021 (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 securities	$	33,613	$	2,070	$	31,543	$	—
Residential agency mortgage-backed securities	5,003,163		—		5,003,163		—
Municipal securities	27,047		—		27,047		—

Other trading securities	22,126		—		22,126		—
Total trading securities	5,085,949		2,070		5,083,879		—
Available for sale securities:
U.S. Treasury	506		506		—		—
Municipal securities	245,657		—		245,657		—
Residential agency mortgage-backed securities	9,705,314		—		9,705,314		—
Residential non-agency mortgage-backed securities	31,382		—		31,382		—
Commercial agency mortgage-backed securities	3,426,727		—		3,426,727		—
Other debt securities	471		—		—		471
Total available for sale securities	13,410,057		506		13,409,080		471


Fair value option securities – Residential agency mortgage-backed securities	72,498		—		72,498		—

Residential mortgage loans held for sale1	284,447		—		279,151		5,296
Mortgage servicing rights2	132,915		—		—		132,915
Derivative contracts, net of cash collateral3	1,289,156		2,772		1,286,384		—
Liabilities:
Derivative contracts, net of cash collateral3	719,556		2,721		716,835		—

1Residential mortgage loans held for sale measured at fair value on a recurring basis using significant unobservable inputs (Level 3) consist of residential mortgage loans intended for sale to U.S. government agencies that fail to meet conforming standards and are valued at 94.55% of the unpaid principal balance.

2A 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.

3See 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 and agricultural derivative contracts. Derivative contracts in liability positions that were valued using quoted prices in active markets for identical instruments are exchange-traded interest rate and energy derivative contracts, net of cash margin.

The fair value of financial assets and liabilities measured on a recurring basis was as follows as of December 31, 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 securities	$	9,183	$	4,999	$	4,184	$	—
Residential agency mortgage-backed securities	4,669,148		—		4,669,148		—
Municipal securities	19,172		—		19,172		—

Other trading securities	10,472		—		10,472		—
Total trading securities	4,707,975		4,999		4,702,976		—
Available for sale securities:
U.S. Treasury	508		508		—		—
Municipal securities	167,979		—		167,979		—
Residential agency mortgage-backed securities	9,340,471		—		9,340,471		—
Residential non-agency mortgage-backed securities	32,770		—		32,770		—
Commercial agency mortgage-backed securities	3,508,465		—		3,508,465		—
Other debt securities	472		—		—		472
Total available for sale securities	13,050,665		508		13,049,685		472



Fair value option securities — Residential agency mortgage-backed securities	114,982		—		114,982		—
Residential mortgage loans held for sale1	252,316		—		245,299		7,017
Mortgage servicing rights2	101,172		—		—		101,172
Derivative contracts, net of cash collateral3	810,688		10,780		799,908		—
Liabilities:
Derivative contracts, net of cash collateral3	405,779		—		405,779		—

3See 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 contracts. Derivative contracts in liability positions that were valued using quoted prices in active markets for identical instruments (Level 1) are exchange-traded interest rate, energy and agricultural contracts, fully offset by cash margin.

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 March 31, 2021 for which the fair value was adjusted during the three months ended March 31, 2021:


							Fair Value Adjustments for the
	Carrying Value at March 31, 2021						Three Months Ended Mar. 31, 2021 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
Nonaccruing loans	$	—	$	259	$	34,046	$	15,049	$	—
Real estate and other repossessed assets	—		1,706		300		—		2,200

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 March 31, 2020 for which the fair value was adjusted during the three months ended March 31, 2020:


							Fair Value Adjustments for the
	Carrying Value at March 31, 2020						Three Months Ended Mar. 31, 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
Nonaccruing loans	$	—	$	293	$	22,746	$	15,789	$	—
Real estate and other repossessed assets	—		1,066		400		—		226

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 March 31, 2021 follows (in thousands):

Fair Value

Valuation Technique(s)

Unobservable Input

Range
(Weighted Average)

Nonaccruing loans

34,046

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

10% - 91% (47%)1

Real estate and other repossessed assets

300

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 March 31, 2020 follows (in thousands):

Fair Value

Valuation Technique(s)

Unobservable Input

Range
(Weighted Average)

Nonaccruing loans

22,746

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

6% - 71% (36%)1

Real estate and other repossessed assets

400

Appraised value, as adjusted

Marketability adjustments off appraised value2

87% - 87% (87%)

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 March 31, 2021 (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	$	723,983	$	723,983	$	723,983	$	—	$	—
Interest-bearing cash and cash equivalents	695,213		695,213		695,213		—		—
Trading securities:
U.S. government securities	33,613		33,613		2,070		31,543		—
Residential agency mortgage-backed securities	5,003,163		5,003,163		—		5,003,163		—
Municipal securities	27,047		27,047		—		27,047		—

Other trading securities	22,126		22,126		—		22,126		—
Total trading securities	5,085,949		5,085,949		2,070		5,083,879		—
Investment securities:
Municipal securities	216,047		241,278		—		67,510		173,768
Residential agency mortgage-backed securities	8,477		9,216		—		9,216		—
Other debt securities	2,214		2,213		—		2,213		—
Total investment securities	226,738		252,707		—		78,939		173,768
Allowance for credit losses	(617)		—		—		—		—
Investment securities, net of allowance	226,121		252,707		—		78,939		173,768
Available for sale securities:
U.S. Treasury	506		506		506		—		—
Municipal securities	245,657		245,657		—		245,657		—
Residential agency mortgage-backed securities	9,705,314		9,705,314		—		9,705,314		—
Residential non-agency mortgage-backed securities	31,382		31,382		—		31,382		—
Commercial agency mortgage-backed securities	3,426,727		3,426,727		—		3,426,727		—
Other debt securities	471		471		—		—		471
Total available for sale securities	13,410,057		13,410,057		506		13,409,080		471


Fair value option securities – Residential agency mortgage-backed securities	72,498		72,498		—		72,498		—

Residential mortgage loans held for sale	284,447		284,447		—		279,151		5,296
Loans:
Commercial	12,657,784		12,546,069		—		—		12,546,069
Commercial real estate	4,503,347		4,435,740		—		—		4,435,740
Paycheck protection program	1,848,550		1,820,749		—		—		1,820,749
Loans to individuals	3,524,166		3,528,950		—		—		3,528,950
Total loans	22,533,847		22,331,508		—		—		22,331,508
Allowance for loan losses	(352,402)		—		—		—		—
Loans, net of allowance	22,181,445		22,331,508		—		—		22,331,508
Mortgage servicing rights	132,915		132,915		—		—		132,915
Derivative instruments with positive fair value, net of cash collateral	1,289,156		1,289,156		2,772		1,286,384		—
Deposits with no stated maturity	35,848,270		35,848,270		—		—		35,848,270
Time deposits	2,004,356		2,008,294		—		—		2,008,294
Other borrowed funds	2,503,678		2,500,771		—		—		2,500,771
Subordinated debentures	276,024		288,109		—		288,109		—
Derivative instruments with negative fair value, net of cash collateral	719,556		719,556		2,721		716,835		—


	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	$	798,757	$	798,757	$	798,757	$	—	$	—
Interest-bearing cash and cash equivalents	381,816		381,816		381,816		—		—
Trading securities:
U.S. government securities	9,183		9,183		4,999		4,184		—
Residential agency mortgage-backed securities	4,669,148		4,669,148		—		4,669,148		—
Municipal securities	19,172		19,172		—		19,172		—

Other trading securities	10,472		10,472		—		10,472		—
Total trading securities	4,707,975		4,707,975		4,999		4,702,976		—
Investment securities:
Municipal securities	229,245		255,270		—		69,404		185,866
Residential agency mortgage-backed securities	8,913		9,790		—		9,790		—
Other debt securities	7,373		7,371		—		7,371		—
Total investment securities	245,531		272,431		—		86,565		185,866
Allowance for credit losses	(688)		0		—		0		0
Investment securities, net of allowance	244,843		272,431		—		86,565		185,866
Available for sale securities:
U.S. Treasury	508		508		508		—		—
Municipal securities	167,979		167,979		—		167,979		—
Residential agency mortgage-backed securities	9,340,471		9,340,471		—		9,340,471		—
Residential non-agency mortgage-backed securities	32,770		32,770		—		32,770		—
Commercial agency mortgage-backed securities	3,508,465		3,508,465		—		3,508,465		—
Other debt securities	472		472		—		—		472
Total available for sale securities	13,050,665		13,050,665		508		13,049,685		472



Fair value option securities — Residential agency mortgage-backed securities	114,982		114,982		—		114,982		—
Residential mortgage loans held for sale	252,316		252,316		—		245,299		7,017
Loans:
Commercial	13,077,535		13,003,383		—		—		13,003,383
Commercial real estate	4,698,538		4,649,763		—		—		4,649,763
Paycheck protection program	1,682,310		1,669,461		—		—		1,669,461
Loans to individuals	3,549,137		3,563,199		—		—		3,563,199
Total loans	23,007,520		22,885,806		—		—		22,885,806
Allowance for loan losses	(388,640)		—		—		—		—
Loans, net of allowance	22,618,880		22,885,806		—		—		22,885,806
Mortgage servicing rights	101,172		101,172		—		—		101,172
Derivative instruments with positive fair value, net of cash collateral	810,688		810,688		10,780		799,908		—
Deposits with no stated maturity	34,176,752		34,176,752		—		—		34,176,752
Time deposits	1,967,128		1,976,936		—		—		1,976,936
Other borrowed funds	3,545,356		3,542,489		—		—		3,542,489
Subordinated debentures	276,005		269,544		—		269,544		—
Derivative instruments with negative fair value, net of cash collateral	405,779		405,779		—		405,779		—