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Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 (in thousands):

 

 

 

Fair Value Measurement at June 30, 2020

 

Description

 

June 30, 2020

 

 

Quoted Prices in Active Markets for Identical Assets (Level 1)

 

 

Significant Other Observable Inputs (Level 2)

 

 

Significant Unobservable Inputs (Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury

 

$

654

 

 

$

654

 

 

$

—

 

 

$

—

 

Mortgage-backed

 

 

2,109

 

 

 

—

 

 

 

2,109

 

 

 

—

 

State and political subdivisions

 

 

32,654

 

 

 

—

 

 

 

32,654

 

 

 

—

 

Corporates

 

 

1,402

 

 

 

1,402

 

 

 

—

 

 

 

—

 

Trading – other

 

 

14,564

 

 

 

14,564

 

 

 

—

 

 

 

—

 

Trading securities

 

 

51,383

 

 

 

16,620

 

 

 

34,763

 

 

 

—

 

U.S. Treasury

 

 

30,920

 

 

 

30,920

 

 

 

—

 

 

 

—

 

U.S. Agencies

 

 

420,552

 

 

 

—

 

 

 

420,552

 

 

 

—

 

Mortgage-backed

 

 

4,749,457

 

 

 

—

 

 

 

4,749,457

 

 

 

—

 

State and political subdivisions

 

 

3,222,634

 

 

 

—

 

 

 

3,222,634

 

 

 

—

 

Corporates

 

 

60,061

 

 

 

60,061

 

 

 

—

 

 

 

—

 

Available for sale securities

 

 

8,483,624

 

 

 

90,981

 

 

 

8,392,643

 

 

 

—

 

Company-owned life insurance

 

 

53,525

 

 

 

—

 

 

 

53,525

 

 

 

—

 

Bank-owned life insurance

 

 

283,291

 

 

 

—

 

 

 

283,291

 

 

 

—

 

Derivatives

 

 

155,299

 

 

 

—

 

 

 

155,299

 

 

 

—

 

Total

 

$

9,027,122

 

 

$

107,601

 

 

$

8,919,521

 

 

$

—

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives

 

$

10,704

 

 

$

—

 

 

$

10,704

 

 

$

—

 

Securities sold not yet purchased

 

 

4,019

 

 

 

—

 

 

 

4,019

 

 

 

—

 

Total

 

$

14,723

 

 

$

—

 

 

$

14,723

 

 

$

—

 

 

 

 

Fair Value Measurement at December 31, 2019

 

Description

 

December 31, 2019

 

 

Quoted Prices in Active Markets for Identical Assets (Level 1)

 

 

Significant Other Observable Inputs (Level 2)

 

 

Significant Unobservable Inputs (Level 3)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Agencies

 

$

1,246

 

 

$

—

 

 

$

1,246

 

 

$

—

 

Mortgage-backed

 

 

392

 

 

 

—

 

 

 

392

 

 

 

—

 

State and political subdivisions

 

 

21,764

 

 

 

—

 

 

 

21,764

 

 

 

—

 

Corporates

 

 

5,649

 

 

 

5,649

 

 

 

—

 

 

 

—

 

Trading – other

 

 

16,567

 

 

 

16,567

 

 

 

—

 

 

 

—

 

Trading securities

 

 

45,618

 

 

 

22,216

 

 

 

23,402

 

 

 

—

 

U.S. Treasury

 

 

64,078

 

 

 

64,078

 

 

 

—

 

 

 

—

 

U.S. Agencies

 

 

93,021

 

 

 

—

 

 

 

93,021

 

 

 

—

 

Mortgage-backed

 

 

4,071,794

 

 

 

—

 

 

 

4,071,794

 

 

 

—

 

State and political subdivisions

 

 

3,029,917

 

 

 

—

 

 

 

3,029,917

 

 

 

—

 

Corporates

 

 

188,552

 

 

 

188,552

 

 

 

—

 

 

 

—

 

Available for sale securities

 

 

7,447,362

 

 

 

252,630

 

 

 

7,194,732

 

 

 

—

 

Company-owned life insurance

 

 

63,900

 

 

 

—

 

 

 

63,900

 

 

 

—

 

Bank-owned life insurance

 

 

280,709

 

 

 

—

 

 

 

280,709

 

 

 

—

 

Derivatives

 

 

55,276

 

 

 

—

 

 

 

55,276

 

 

 

—

 

Total

 

$

7,892,865

 

 

$

274,846

 

 

$

7,618,019

 

 

$

—

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives

 

$

5,997

 

 

$

—

 

 

$

5,997

 

 

$

—

 

Securities sold not yet purchased

 

 

14,599

 

 

 

—

 

 

 

14,599

 

 

 

—

 

Total

 

$

20,596

 

 

$

—

 

 

$

20,596

 

 

$

—

 

Assets Measured at Fair Value on Non-Recurring Basis

Assets measured at fair value on a non-recurring basis as of June 30, 2020 and December 31, 2019 (in thousands):

 

 

 

Fair Value Measurement at June 30, 2020 Using

 

Description

 

June 30, 2020

 

 

Quoted Prices in Active Markets for Identical Assets (Level 1)

 

 

Significant Other Observable Inputs (Level 2)

 

 

Significant Unobservable Inputs (Level 3)

 

 

Total Losses Recognized During the Six Months Ended June 30

 

Collateral dependent assets

 

$

18,454

 

 

$

—

 

 

$

—

 

 

$

18,454

 

 

$

(6,826

)

Other real estate owned

 

 

2,830

 

 

 

—

 

 

 

—

 

 

 

2,830

 

 

 

—

 

Total

 

$

21,284

 

 

$

—

 

 

$

—

 

 

$

21,284

 

 

$

(6,826

)

 

 

 

Fair Value Measurement at December 31, 2019 Using

 

Description

 

December 31, 2019

 

 

Quoted Prices in Active Markets for Identical Assets (Level 1)

 

 

Significant Other Observable Inputs (Level 2)

 

 

Significant Unobservable Inputs (Level 3)

 

 

Total Gains Recognized During the Twelve Months Ended December 31

 

Impaired loans

 

$

5,139

 

 

$

—

 

 

$

—

 

 

$

5,139

 

 

$

3,973

 

Other real estate owned

 

 

55

 

 

 

—

 

 

 

—

 

 

 

55

 

 

 

7

 

Total

 

$

5,194

 

 

$

—

 

 

$

—

 

 

$

5,194

 

 

$

3,980

 

Estimated Fair Value of Financial Instruments The estimated fair value of the Company’s financial instruments at June 30, 2020 and December 31, 2019 are as follows

 

 

Fair Value Measurement at June 30, 2020 Using

 

 

 

Carrying Amount

 

 

Quoted Prices in Active Markets for Identical Assets (Level 1)

 

 

Significant Other Observable Inputs (Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

 

Total

Estimated

Fair Value

 

FINANCIAL ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

$

3,524,970

 

 

$

2,177,327

 

 

$

1,347,643

 

 

$

—

 

 

$

3,524,970

 

Securities available for sale

 

 

8,483,624

 

 

 

90,981

 

 

 

8,392,643

 

 

 

—

 

 

 

8,483,624

 

Securities held to maturity (exclusive of allowance for credit losses)

 

 

1,111,625

 

 

 

—

 

 

 

1,153,833

 

 

 

—

 

 

 

1,153,833

 

Trading securities

 

 

51,383

 

 

 

16,620

 

 

 

34,763

 

 

 

—

 

 

 

51,383

 

Other securities

 

 

154,206

 

 

 

—

 

 

 

154,206

 

 

 

—

 

 

 

154,206

 

Loans (exclusive of allowance for credit losses)

 

 

15,313,310

 

 

 

—

 

 

 

15,644,241

 

 

 

—

 

 

 

15,644,241

 

Derivatives

 

 

155,299

 

 

 

—

 

 

 

155,299

 

 

 

—

 

 

 

155,299

 

FINANCIAL LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and savings deposits

 

 

23,667,246

 

 

 

23,667,246

 

 

 

—

 

 

 

—

 

 

 

23,667,246

 

Time deposits

 

 

792,158

 

 

 

—

 

 

 

801,048

 

 

 

—

 

 

 

801,048

 

Other borrowings

 

 

1,978,694

 

 

 

34,587

 

 

 

1,944,107

 

 

 

—

 

 

 

1,978,694

 

Long-term debt

 

 

70,996

 

 

 

—

 

 

 

71,316

 

 

 

—

 

 

 

71,316

 

Derivatives

 

 

10,704

 

 

 

—

 

 

 

10,704

 

 

 

—

 

 

 

10,704

 

OFF-BALANCE SHEET ARRANGEMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to extend credit for loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,847

 

Commercial letters of credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31

 

Standby letters of credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,585

 

 

 

 

Fair Value Measurement at December 31, 2019 Using

 

 

 

Carrying Amount

 

 

Quoted Prices in Active Markets for Identical Assets (Level 1)

 

 

Significant Other Observable Inputs (Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

 

Total

Estimated

Fair Value

 

FINANCIAL ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

$

3,276,794

 

 

$

1,701,449

 

 

$

1,575,345

 

 

$

—

 

 

$

3,276,794

 

Securities available for sale

 

 

7,447,362

 

 

 

252,630

 

 

 

7,194,732

 

 

 

—

 

 

 

7,447,362

 

Securities held to maturity

 

 

1,116,102

 

 

 

—

 

 

 

1,082,345

 

 

 

—

 

 

 

1,082,345

 

Trading securities

 

 

45,618

 

 

 

22,216

 

 

 

23,402

 

 

 

—

 

 

 

45,618

 

Other securities

 

 

108,420

 

 

 

—

 

 

 

108,420

 

 

 

—

 

 

 

108,420

 

Loans (exclusive of allowance for loan loss)

 

 

13,439,525

 

 

 

—

 

 

 

13,601,595

 

 

 

—

 

 

 

13,601,595

 

Derivatives

 

 

55,276

 

 

 

—

 

 

 

55,276

 

 

 

—

 

 

 

55,276

 

FINANCIAL LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand and savings deposits

 

 

20,376,880

 

 

 

20,376,880

 

 

 

—

 

 

 

—

 

 

 

20,376,880

 

Time deposits

 

 

1,226,364

 

 

 

—

 

 

 

1,226,646

 

 

 

—

 

 

 

1,226,646

 

Other borrowings

 

 

1,896,508

 

 

 

31,873

 

 

 

1,864,635

 

 

 

—

 

 

 

1,896,508

 

Long-term debt

 

 

70,372

 

 

 

—

 

 

 

70,713

 

 

 

—

 

 

 

70,713

 

Derivatives

 

 

5,997

 

 

 

—

 

 

 

5,997

 

 

 

—

 

 

 

5,997

 

OFF-BALANCE SHEET ARRANGEMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to extend credit for loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,908

 

Commercial letters of credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

113

 

Standby letters of credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,966