Fair Values of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2020

Summary Of Balances Of Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following tables present the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented:



	March 31, 2020
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	121,670	$	121,670	$	—	$	—
U.S. Government agencies	368,643		—		366,186		2,457
Municipal	146,609		—		33,342		113,267
Corporate notes	101,018		—		101,018		—
Mortgage-backed	2,833,019		—		2,833,019		—
Trading account securities	2,257		—		2,257		—
Equity securities with readily determinable fair value	47,310		39,244		8,066		—
Mortgage loans held-for-sale	656,934		—		656,934		—
Loans held-for-investment	142,267		—		132,699		9,568
MSRs	73,504		—		—		73,504
Nonqualified deferred compensation assets	12,253		—		12,253		—
Derivative assets	301,368		—		261,552		39,816
Total	$	4,806,852	$	160,914	$	4,407,326	$	238,612
Derivative liabilities	$	367,620	$	—	$	367,620	$	—



	December 31, 2019
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	121,088	$	121,088	$	—	$	—
U.S. Government agencies	365,442		—		362,796		2,646
Municipal	145,318		—		33,368		111,950
Corporate notes	94,841		—		94,841		—
Mortgage-backed	2,379,525		—		2,379,525		—
Trading account securities	1,068		—		1,068		—
Equity securities with readily determinable fair value	50,840		42,774		8,066		—
Mortgage loans held-for-sale	377,313		—		377,313		—
Loans held-for-investment	132,718		—		123,098		9,620
MSRs	85,638		—		—		85,638
Nonqualified deferred compensation assets	14,213		—		14,213		—
Derivative assets	103,644		—		101,013		2,631
Total	$	3,871,648	$	163,862	$	3,495,301	$	212,485
Derivative liabilities	$	129,204	$	—	$	129,204	$	—



	March 31, 2019
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	126,718	$	126,718	$	—	$	—
U.S. Government agencies	130,687		—		127,694		2,993
Municipal	136,353		—		32,519		103,834
Corporate notes	93,333		—		93,333		—
Mortgage-backed	1,698,691		—		1,698,691		—
Trading account securities	559		—		559		—
Equity securities with readily determinable fair value	47,653		39,587		8,066		—
Mortgage loans held-for-sale	248,557		—		248,557		—
Loans held-for-investment	101,071		—		89,822		11,249
MSRs	71,022		—		—		71,022
Nonqualified deferred compensation assets	13,230		—		13,230		—
Derivative assets	75,504		—		72,415		3,089
Total	$	2,743,378	$	166,305	$	2,384,886	$	192,187
Derivative liabilities	$	73,868	$	—	$	73,868	$	—

Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis

The changes in Level 3 assets measured at fair value on a recurring basis during the three months ended March 31, 2020 and 2019 are summarized as follows:



				U.S. Government Agencies			Loans held-for- investment			Mortgage servicing rights			Derivative Assets
(Dollars in thousands)	Municipal			U.S. Government Agencies			Loans held-for- investment			Mortgage servicing rights			Derivative Assets
Balance at January 1, 2020	$	111,950		$	2,646		$	9,620		$	85,638		$	2,631
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—			(78		)	(12,134		)	37,185
Other comprehensive income (loss)	(1,249		)	(32		)	—			—			—
Purchases	5,875			—			—			—			—
Issuances	—			—			—			—			—
Sales	—			—			—			—			—
Settlements	(3,309		)	(157		)	(96		)	—			—
Net transfers into/(out of) Level 3	—			—			122			—			—
Balance at March 31, 2020	$	113,267		$	2,457		$	9,568		$	73,504		$	39,816



				U.S. Government Agencies			Loans held-for- investment			Mortgage servicing rights			Derivative Assets
(Dollars in thousands)	Municipal			U.S. Government Agencies			Loans held-for- investment			Mortgage servicing rights			Derivative Assets
Balance at January 1, 2019	$	108,926		$	3,150		$	11,347		$	75,183		$	2,457
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—			167			(4,161		)	632
Other comprehensive income (loss)	1,537			1			—			—			—
Purchases	969			—			—			—			—
Issuances	—			—			—			—			—
Sales	—			—			—			—			—
Settlements	(7,598		)	(158		)	(465		)	—			—
Net transfers into/(out of) Level 3	—			—			200			—			—
Balance at March 31, 2019	$	103,834		$	2,993		$	11,249		$	71,022		$	3,089


(1)	Changes in the balance of MSRs and derivative assets related to fair value adjustments are recorded as components of mortgage banking revenue. Changes in the balance of loans held-for-investment related to fair value adjustments are recorded as other non-interest income.

Summary Of Assets Measured At Fair Value On A Nonrecurring Basis

For assets measured at fair value on a nonrecurring basis that were still held in the balance sheet at the end of the period, the following table provides the carrying value of the related individual assets or portfolios at March 31, 2020.



	March 31, 2020								Three Months Ended March 31, 2020 Fair Value Losses Recognized, net
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Individually assessed loans - foreclosure probable and collateral-dependent	$	147,443	$	—	$	—	$	147,443	$	4,060
Other real estate owned ⁽¹⁾	11,026		—		—		11,026		306
Total	$	158,469	$	—	$	—	$	158,469	$	4,366

(1)

Fair value losses recognized, net on other real estate owned include valuation adjustments and charge-offs during the respective period.

Schedule Of Valuation Techniques And Significant Unobservable Inputs Used To Measure Both Recurring And Non-Recurring

The valuation techniques and significant unobservable inputs used to measure both recurring and non-recurring Level 3 fair value measurements at March 31, 2020 were as follows:

(Dollars in thousands)

Fair Value

Valuation Methodology

Significant Unobservable Input

Range

of Inputs

Weighted

Average

of Inputs

Impact to valuation

from an increased or

higher input value

Measured at fair value on a recurring basis:

Municipal Securities

113,267

Bond pricing

Equivalent rating

BBB-AA+

N/A

Increase

U.S. Government agencies

2,457

Bond pricing

Equivalent rating

AAA

Increase

Loans held-for-investment

9,568

Discounted cash flows

Discount rate

3%-4%

3.40%

Decrease

Credit discount

0%-6%

1.25%

Decrease

Constant prepayment rate (CPR)

15.69%

Decrease

MSRs

73,504

Discounted cash flows

Discount rate

4%-21%

9.98%

Decrease

Constant prepayment rate (CPR)

0%-94%

15.69%

Decrease

Cost of servicing

$70-$200

$77

Decrease

Cost of servicing - delinquent

$200-$1,000

$386

Decrease

Derivatives

39,816

Discounted cash flows

Pull-through rate

10%-100%

86%

Increase

Measured at fair value on a non-recurring basis:

Individually assessed loans - foreclosure probable and collateral-dependent

147,443

Appraisal value

Appraisal adjustment - cost of sale

10%

10.00%

Decrease

Other real estate owned

11,026

Appraisal value

Appraisal adjustment - cost of sale

10%

10.00%

Decrease

Summary Of Carrying Amounts And Estimated Fair Values Of Financial Instruments

The table below presents the carrying amounts and estimated fair values of the Company’s financial instruments as of the dates shown:



	At March 31, 2020				At December 31, 2019				At March 31, 2019
	Carrying		Fair		Carrying		Fair		Carrying		Fair
(In thousands)	Value		Value		Value		Value		Value		Value
Financial Assets:
Cash and cash equivalents	$	349,427	$	349,427	$	286,476	$	286,476	$	270,823	$	270,823
Interest bearing deposits with banks	1,943,743		1,943,743		2,164,560		2,164,560		1,609,852		1,609,852
Available-for-sale securities	3,570,959		3,570,959		3,106,214		3,106,214		2,185,782		2,185,782
Held-to-maturity securities	865,376		879,192		1,134,400		1,138,396		1,051,542		1,041,695
Trading account securities	2,257		2,257		1,068		1,068		559		559
Equity securities with readily determinable fair value	47,310		47,310		50,840		50,840		47,653		47,653
FHLB and FRB stock, at cost	134,546		134,546		100,739		100,739		89,013		89,013
Brokerage customer receivables	16,293		16,293		16,573		16,573		14,219		14,219
Mortgage loans held-for-sale, at fair value	656,934		656,934		377,313		377,313		248,557		248,557
Loans held-for-investment, at fair value	142,267		142,267		132,718		132,718		101,071		101,071
Loans held-for-investment, at amortized cost	27,665,054		27,469,489		26,667,572		26,659,903		24,113,558		24,123,328
Nonqualified deferred compensation assets	12,253		12,253		14,213		14,213		13,230		13,230
Derivative assets	301,368		301,368		103,644		103,644		75,504		75,504
Accrued interest receivable and other	275,499		275,499		303,090		303,090		275,464		275,464
Total financial assets	$	35,983,286	$	35,801,537	$	34,459,420	$	34,455,747	$	30,096,827	$	30,096,750
Financial Liabilities
Non-maturity deposits	$	26,071,881	$	26,071,881	$	24,483,867	$	24,483,867	$	21,454,035	$	21,454,035
Deposits with stated maturities	5,389,779		5,394,523		5,623,271		5,635,475		5,350,707		5,377,388
FHLB advances	1,174,894		1,130,327		674,870		715,129		576,353		604,976
Other borrowings	487,503		487,503		418,174		418,174		372,194		372,194
Subordinated notes	436,179		487,745		436,095		458,796		139,235		144,019
Junior subordinated debentures	253,566		224,523		253,566		243,158		253,566		252,451
Derivative liabilities	367,620		367,620		129,204		129,204		73,868		73,868
Accrued interest payable	27,696		27,696		19,940		19,940		19,569		19,569
Total financial liabilities	$	34,209,118	$	34,191,818	$	32,038,987	$	32,103,743	$	28,239,527	$	28,298,500