Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

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, 2023 (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	$	18,843	$	17,932	$	911	$	—
Residential agency mortgage-backed securities	4,653,161		—		4,653,161		—
Municipal securities	51,998		—		51,998		—
Other trading securities	24,099		—		24,099		—
Total trading securities	4,748,101		17,932		4,730,169		—
Available for sale securities:
U.S. Treasury	897		897		—		—
Municipal securities	488,269		—		488,269		—
Residential agency mortgage-backed securities	6,216,955		—		6,216,955		—
Residential non-agency mortgage-backed securities	715,806		—		715,806		—
Commercial agency mortgage-backed securities	4,484,247		—		4,484,247		—
Other debt securities	473		—		—		473
Total available for sale securities	11,906,647		897		11,905,277		473
Fair value option securities — Residential agency mortgage-backed securities	20,215		—		20,215		—
Residential mortgage loans held for sale1	72,489		—		65,179		7,310
Mortgage servicing rights2	311,382		—		—		311,382
Derivative contracts, net of cash collateral3	546,109		1,596		544,513		—
Liabilities:
Derivative contracts, net of cash collateral3	403,947		190		403,757		—

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 78.46% 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 and liability positions that were valued based on quoted prices in active markets for identical instruments (Level 1) are primarily exchange-traded interest rate derivative contracts held for trading purposes.

The fair value of financial assets and liabilities measured on a recurring basis was as follows as of December 31, 2022 (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	$	9,823	$	4,970	$	4,853	$	—
Residential agency mortgage-backed securities	4,406,848		—		4,406,848		—
Municipal securities	21,484		—		21,484		—
Other trading securities	26,006		—		26,006		—
Total trading securities	4,464,161		4,970		4,459,191		—
Available for sale securities:
U.S. Treasury	898		898		—		—
Municipal securities	624,500		—		624,500		—
Residential agency mortgage-backed securities	5,814,496		—		5,814,496		—
Residential non-agency mortgage-backed securities	577,576		—		577,576		—
Commercial agency mortgage-backed securities	4,475,917		—		4,475,917		—
Other debt securities	473		—		—		473
Total available for sale securities	11,493,860		898		11,492,489		473
Fair value option securities — Residential agency mortgage-backed securities	296,590		—		296,590		—
Residential mortgage loans held for sale1	75,272		—		68,054		7,218
Mortgage servicing rights2	277,608		—		—		277,608
Derivative contracts, net of cash collateral3	880,343		2,110		878,233		—
Liabilities:
Derivative contracts, net of cash collateral3	554,900		16		554,884		—

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 77.55% 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 and liability positions that were valued based on quoted prices in active markets for identical instruments (Level 1) are primarily exchange-traded interest rate derivative contracts held for trading purposes.

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, 2023 for which the fair value was adjusted during the nine months ended September 30, 2023 (in thousands):

							Fair Value Adjustments for the
	Carrying Value at September 30, 2023						Three Months Ended Sep. 30, 2023 Recognized in:				Nine Months Ended Sep. 30, 2023 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	$	—	$	—	$	796	$	2,135	$	—	$	4,932	$	—

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, 2022 for which the fair value was adjusted during the nine months ended September 30, 2022 (in thousands):

							Fair Value Adjustments for the
	Carrying Value at September 30, 2022						Three Months Ended Sep. 30, 2022 Recognized in:				Nine Months Ended Sep. 30, 2022 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	$	—	$	159	$	126	$	22	$	—	$	499	$	—
Real estate and other repossessed assets	—		649		1,699		—		—		—		(5,705)

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, 2023 follows (dollars in thousands):

	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Nonaccruing loans	$	796	Discounted cash flows	Management knowledge of industry and non-real estate collateral	12% - 14% (14%)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, 2022 follows (dollars in thousands):

	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Nonaccruing loans	$	126	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	25% - 25% (25%)1
Real estate and other repossessed assets	1,699		Discounted cash flows	Management knowledge of industry and non-real estate collateral	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 are measured at fair value on a non-recurring basis as of September 30, 2023 (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	$	854,161	$	854,161	$	854,161	$	—	$	—
Interest-bearing cash and cash equivalents	520,774		520,774		520,774		—		—
Trading securities:
U.S. government securities	18,843		18,843		17,932		911		—
Residential agency mortgage-backed securities	4,653,161		4,653,161		—		4,653,161		—
Municipal securities	51,998		51,998		—		51,998		—
Other trading securities	24,099		24,099		—		24,099		—
Total trading securities	4,748,101		4,748,101		17,932		4,730,169		—
Investment securities:
Municipal securities	121,003		122,695		—		11,957		110,738
Residential agency mortgage-backed securities	2,146,133		1,901,143		—		1,901,143		—
Commercial agency mortgage-backed securities	15,838		14,371		—		14,371		—
Other debt securities	15,788		14,158		—		14,158		—
Total investment securities	2,298,762		2,052,367		—		1,941,629		110,738
Allowance for credit losses	(344)		—		—		—		—
Investment securities, net of allowance	2,298,418		2,052,367		—		1,941,629		110,738
Available for sale securities:
U.S. Treasury	897		897		897		—		—
Municipal securities	488,269		488,269		—		488,269		—
Residential agency mortgage-backed securities	6,216,955		6,216,955		—		6,216,955		—
Residential non-agency mortgage-backed securities	715,806		715,806		—		715,806		—
Commercial agency mortgage-backed securities	4,484,247		4,484,247		—		4,484,247		—
Other debt securities	473		473		—		—		473
Total available for sale securities	11,906,647		11,906,647		897		11,905,277		473
Fair value option securities — Residential agency mortgage-backed securities	20,215		20,215		—		20,215		—
Residential mortgage loans held for sale	72,489		72,489		—		65,179		7,310
Loans:
Commercial	14,719,839		14,603,075		—		—		14,603,075
Commercial real estate	5,241,300		5,094,865		—		—		5,094,865
Loans to individuals	3,762,879		3,512,686		—		—		3,512,686
Total loans	23,724,018		23,210,626		—		—		23,210,626
Allowance for loan losses	(272,114)		—		—		—		—
Loans, net of allowance	23,451,904		23,210,626		—		—		23,210,626
Mortgage servicing rights	311,382		311,382		—		—		311,382
Derivative instruments with positive fair value, net of cash collateral	546,109		546,109		1,596		544,513		—
Deposits with no stated maturity	30,725,335		30,725,335		—		—		30,725,335
Time deposits	2,927,217		2,986,307		—		—		2,986,307
Other borrowed funds	8,924,642		8,922,567		—		—		8,922,567
Subordinated debentures	131,152		116,911		—		116,911		—
Derivative instruments with negative fair value, net of cash collateral	403,947		403,947		190		403,757		—

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 are measured at fair value on a non-recurring basis as of December 31, 2022 (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	$	943,810	$	943,810	$	943,810	$	—	$	—
Interest-bearing cash and cash equivalents	457,906		457,906		457,906		—		—
Trading securities:
U.S. government securities	9,823		9,823		4,970		4,853		—
Residential agency mortgage-backed securities	4,406,848		4,406,848		—		4,406,848		—
Municipal securities	21,484		21,484		—		21,484		—
Other trading securities	26,006		26,006		—		26,006		—
Total trading securities	4,464,161		4,464,161		4,970		4,459,191		—
Investment securities:
Municipal securities	170,629		176,621		—		38,106		138,515
Residential agency mortgage-backed securities	2,315,219		2,143,360		—		2,143,360		—
Commercial agency mortgage-backed securities	15,609		14,588		—		14,588		—
Other debt securities	12,788		12,199		—		12,199		—
Total investment securities	2,514,245		2,346,768		—		2,208,253		138,515
Allowance for credit losses	(558)		—		—		—		—
Investment securities, net of allowance	2,513,687		2,346,768		—		2,208,253		138,515
Available for sale securities:
U.S. Treasury	898		898		898		—		—
Municipal securities	624,500		624,500		—		624,500		—
Residential agency mortgage-backed securities	5,814,496		5,814,496		—		5,814,496		—
Residential non-agency mortgage-backed securities	577,576		577,576		—		577,576		—
Commercial agency mortgage-backed securities	4,475,917		4,475,917		—		4,475,917		—
Other debt securities	473		473		—		—		473
Total available for sale securities	11,493,860		11,493,860		898		11,492,489		473
Fair value option securities — Residential agency mortgage-backed securities	296,590		296,590		—		296,590		—
Residential mortgage loans held for sale	75,272		75,272		—		68,054		7,218
Loans:
Commercial	14,212,499		13,905,765		—		—		13,905,765
Commercial real estate	4,606,777		4,454,048		—		—		4,454,048
Loans to individuals	3,737,874		3,531,410		—		—		3,531,410
Total loans	22,557,150		21,891,223		—		—		21,891,223
Allowance for loan losses	(235,704)		—		—		—		—
Loans, net of allowance	22,321,446		21,891,223		—		—		21,891,223
Mortgage servicing rights	277,608		277,608		—		—		277,608
Derivative instruments with positive fair value, net of cash collateral	880,343		880,343		2,110		878,233		—
Deposits with no stated maturity	33,018,863		33,018,863		—		—		33,018,863
Time deposits	1,461,842		1,431,245		—		—		1,431,245
Other borrowed funds	7,007,285		7,005,305		—		—		7,005,305
Subordinated debentures	131,205		121,497		—		121,497		—
Derivative instruments with negative fair value, net of cash collateral	554,900		554,900		16		554,884		—