Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2020

FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying amount and estimated fair values of the Company’s financial instruments, as well as the level within the fair value hierarchy, are included in the tables below. See Note 1, Summary of Significant Accounting Policies, in the 2019 10-K, for a description of how fair value measurements are determined.



		March 31, 2020
(in thousands)		Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Measurement Category
Fair Value
	Financial Assets
	Securities available for sale	$	3,914,960	$	3,914,960	$	—	$	3,914,960	$	—
	Mortgage loans held for sale	207,845		207,845		—		207,845		—
	Mortgage loans held for investment, at fair value option	2,779		2,779		—		—		2,779
	Derivative instruments	283,525		283,525		—		283,525		—

	Financial Liabilities
	Derivative instruments	23,798		23,798		—		23,798		—

Amortized Cost
	Financial Assets
	Cash and cash equivalents	$	945,062	$	945,062	$	945,062	$	—	$	—
	Securities held to maturity	177,960		186,396		—		186,396		—
	Loans and leases, carried at amortized cost, net of unearned income and allowance for loan and lease losses	24,254,947		24,209,165		—		—		24,209,165

	Financial Liabilities
	Deposits	25,526,237		25,547,705		—		25,547,705		—
	Short-term borrowings	390,747		390,747		172,747		218,000		—
	Long-term debt	1,288,172		1,261,688		—		—		1,261,688



		December 31, 2019
(in thousands)		Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Measurement Category
Fair Value
	Financial Assets
	Securities available for sale	$	3,933,360	$	3,933,360	$	—	$	3,933,360	$	—
	Mortgage loans held for sale	213,357		213,357		—		213,357		—
	Mortgage loans held for investment, at fair value option	2,792		2,792		—		—		2,792
	Derivative instruments	104,151		104,151		—		104,151		—

	Financial Liabilities
	Derivative instruments	11,799		11,799		—		11,799		—

Amortized Cost
	Financial Assets
	Cash and cash equivalents	$	894,723	$	894,723	$	894,723	$	—	$	—
	Securities held to maturity	182,961		189,899		—		189,899		—
	Loans and leases, carried at amortized cost, net of unearned income and allowance for loan and lease losses	23,874,911		23,732,650		—		—		23,732,650

	Financial Liabilities
	Deposits	25,219,349		25,229,566		—		25,229,566		—
	Short-term borrowings	204,208		204,208		204,208		—		—
	Long-term debt	1,343,687		1,296,696		—		—		1,296,696

The fair value estimates presented herein are based upon pertinent information available to management as of March 31, 2020 and December 31, 2019. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since these dates and, therefore, current estimates of fair value may differ significantly from the amounts presented herein.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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