Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

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, 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	$	8,863	$	4,999	$	3,864	$	—
Residential agency mortgage-backed securities	5,469,676		—		5,469,676		—
Municipal securities	35,894		—		35,894		—
Other trading securities	39,607		—		39,607		—
Total trading securities	5,554,040		4,999		5,549,041		—
Available for sale securities:
U.S. Treasury	502		502		—		—
Municipal securities	461,619		—		461,619		—
Residential agency mortgage-backed securities	8,168,025		—		8,168,025		—
Residential non-agency mortgage-backed securities	26,072		—		26,072		—
Commercial agency mortgage-backed securities	4,685,423		—		4,685,423		—
Other debt securities	472		—		—		472
Total available for sale securities	13,342,113		502		13,341,139		472
Fair value option securities – Residential agency mortgage-backed securities	51,019		—		51,019		—
Residential mortgage loans held for sale1	176,813		—		170,338		6,475
Mortgage servicing rights2	133,308		—		—		133,308
Derivative contracts, net of cash collateral3	1,901,136		1,109		1,900,027		—
Liabilities:
Derivative contracts, net of cash collateral3	739,641		233,266		506,375		—

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 95.57% 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. Fair values based on quoted prices in active markets for identical instruments (Level 1) are primarily exchange-traded 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		—

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 94.57% 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. Fair values based on quoted prices in active markets for identical instruments (Level 1) are primarily exchange-traded derivative contracts, net of 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 September 30, 2021 for which the fair value was adjusted during the nine months ended September 30, 2021:

							Fair Value Adjustments for the
	Carrying Value at September 30, 2021						Three Months Ended Sept. 30, 2021 Recognized in:				Nine Months Ended Sept. 30, 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		Other gains (losses), net		Gross charge-offs against allowance for loan losses		Other gains (losses), net
Nonaccruing loans	$	—	$	63	$	12,538	$	6,929	$	—	$	17,466	$	—
Real estate and other repossessed assets	—		1,706		—		—		—		—		(150)

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		Other gains (losses), net		Gross charge-offs against allowance for loan losses		Other gains (losses), net
Nonaccruing loans	$	—	$	396	$	13,001	$	6,371	$	—	$	28,624	$	—
Real estate and other repossessed assets	—		16,828		2,993		—		4,370		—		4,452

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, 2021 follows (in thousands):

	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Nonaccruing loans	$	12,538	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	1% - 97% (23%)1

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, 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	—% - 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.

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, 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	$	729,285	$	729,285	$	729,285	$	—	$	—
Interest-bearing cash and cash equivalents	1,162,477		1,162,477		1,162,477		—		—
Trading securities:
U.S. government securities	8,863		8,863		4,999		3,864		—
Residential agency mortgage-backed securities	5,469,676		5,469,676		—		5,469,676		—
Municipal securities	35,894		35,894		—		35,894		—
Other trading securities	39,607		39,607		—		39,607		—
Total trading securities	5,554,040		5,554,040		4,999		5,549,041		—
Investment securities:
Municipal securities	207,393		229,149		—		61,682		167,467
Residential agency mortgage-backed securities	7,412		8,084		—		8,084		—
Other debt securities	1,257		1,256		—		1,256		—
Total investment securities	216,062		238,489		—		71,022		167,467
Allowance for credit losses	(470)		—		—		—		—
Investment securities, net of allowance	215,592		238,489		—		71,022		167,467
Available for sale securities:
U.S. Treasury	502		502		502		—		—
Municipal securities	461,619		461,619		—		461,619		—
Residential agency mortgage-backed securities	8,168,025		8,168,025		—		8,168,025		—
Residential non-agency mortgage-backed securities	26,072		26,072		—		26,072		—
Commercial agency mortgage-backed securities	4,685,423		4,685,423		—		4,685,423		—
Other debt securities	472		472		—		—		472
Total available for sale securities	13,342,113		13,342,113		502		13,341,139		472
Fair value option securities – Residential agency mortgage-backed securities	51,019		51,019		—		51,019		—
Residential mortgage loans held for sale	176,813		176,813		—		170,338		6,475
Loans:
Commercial	12,175,140		12,054,326		—		—		12,054,326
Commercial real estate	4,116,892		4,085,030		—		—		4,085,030
Paycheck protection program	536,052		525,990		—		—		525,990
Loans to individuals	3,519,852		3,519,309		—		—		3,519,309
Total loans	20,347,936		20,184,655		—		—		20,184,655
Allowance for loan losses	(276,680)		—		—		—		—
Loans, net of allowance	20,071,256		20,184,655		—		—		20,184,655
Mortgage servicing rights	133,308		133,308		—		—		133,308
Derivative instruments with positive fair value, net of cash collateral	1,901,136		1,901,136		1,109		1,900,027		—
Deposits with no stated maturity	36,743,836		36,743,836		—		—		36,743,836
Time deposits	1,780,715		1,783,165		—		—		1,783,165
Other borrowed funds	880,699		877,709		—		—		877,709
Subordinated debentures	131,220		143,381		—		143,381		—
Derivative instruments with negative fair value, net of cash collateral	739,641		739,641		233,266		506,375		—

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, 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	$	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)		—		—		—		—
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		—