Fair Values of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 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:



	June 30, 2020
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	60,539	$	60,539	$	—	$	—
U.S. Government agencies	293,507		—		291,214		2,293
Municipal	150,879		—		33,624		117,255
Corporate notes	102,879		—		102,879		—
Mortgage-backed	2,587,157		—		2,587,157		—
Trading account securities	890		—		890		—
Equity securities with readily determinable fair value	52,460		44,394		8,066		—
Mortgage loans held-for-sale	833,163		—		833,163		—
Loans held-for-investment	254,614		—		240,661		13,953
MSRs	77,203		—		—		77,203
Nonqualified deferred compensation assets	13,576		—		13,576		—
Derivative assets	327,624		—		269,191		58,433
Total	$	4,754,491	$	104,933	$	4,380,421	$	269,137
Derivative liabilities	$	355,265	$	—	$	355,265	$	—



	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	$	—



	June 30, 2019
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	132,269	$	132,269	$	—	$	—
U.S. Government agencies	170,940		—		167,963		2,977
Municipal	142,609		—		32,313		110,296
Corporate notes	90,913		—		90,913		—
Mortgage-backed	1,649,423		—		1,649,423		—
Trading account securities	2,430		—		2,430		—
Equity securities with readily determinable fair value	44,319		36,253		8,066		—
Mortgage loans held-for-sale	394,975		—		394,975		—
Loans held-for-investment	106,081		—		95,600		10,481
MSRs	72,850		—		—		72,850
Nonqualified deferred compensation assets	13,672		—		13,672		—
Derivative assets	108,784		—		105,188		3,596
Total	$	2,929,265	$	168,522	$	2,560,543	$	200,200
Derivative liabilities	$	136,312	$	—	$	136,312	$	—

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 and six months ended June 30, 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 April 1, 2020	$	113,267		$	2,457		$	9,568		$	73,504	$	39,816
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—			200			3,699		18,617
Other comprehensive income (loss)	(546		)	(7		)	—			—		—
Purchases	6,997			—			—			—		—
Issuances	—			—			—			—		—
Sales	—			—			—			—		—
Settlements	(2,463		)	(157		)	(1,364		)	—		—
Net transfers into/(out of) Level 3	—			—			5,549			—		—
Balance at June 30, 2020	$	117,255		$	2,293		$	13,953		$	77,203	$	58,433



				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⁾	—			—			122			(8,435		)	55,802
Other comprehensive income (loss)	(1,795		)	(39		)	—			—			—
Purchases	12,872			—			—			—			—
Issuances	—			—			—			—			—
Sales	—			—			—			—			—
Settlements	(5,772		)	(314		)	(1,460		)	—			—
Net transfers into/(out of) Level 3	—			—			5,671			—			—
Balance at June 30, 2020	$	117,255		$	2,293		$	13,953		$	77,203		$	58,433



				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 April 1, 2019	$	103,834		$	2,993		$	11,249		$	71,022	$	3,089
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—			118			1,421		507
Other comprehensive income (loss)	6,519			142			—			—		—
Purchases	555			—			—			407		—
Issuances	—			—			—			—		—
Sales	—			—			—			—		—
Settlements	(612		)	(158		)	(886		)	—		—
Net transfers into/(out of) Level 3	—			—			—			—		—
Balance at June 30, 2019	$	110,296		$	2,977		$	10,481		$	72,850	$	3,596



				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⁾	—			—			285			(2,740		)	1,139
Other comprehensive income (loss)	8,056			143			—			—			—
Purchases	1,524			—			—			407			—
Issuances	—			—			—			—			—
Sales	—			—			—			—			—
Settlements	(8,210		)	(316		)	(1,351		)	—			—
Net transfers into/(out of) Level 3	—			—			200			—			—
Balance at June 30, 2019	$	110,296		$	2,977		$	10,481		$	72,850		$	3,596


(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 June 30, 2020:



	June 30, 2020								Three Months Ended June 30, 2020 Fair Value Losses Recognized, net		Six Months Ended June 30, 2020 Fair Value Losses Recognized, net
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Individually assessed loans - foreclosure probable and collateral-dependent	$	140,473	$	—	$	—	$	140,473	$	13,414	$	17,474
Other real estate owned ⁽¹⁾	10,197		—		—		10,197		217		523
Total	$	150,670	$	—	$	—	$	150,670	$	13,631	$	17,997

(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 June 30, 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

117,255

Bond pricing

Equivalent rating

BBB-AA+

N/A

Increase

U.S. Government agencies

2,293

Bond pricing

Equivalent rating

AAA

Increase

Loans held-for-investment

13,953

Discounted cash flows

Discount rate

2%-3%

2.80%

Decrease

Credit discount

0%-6%

1.24%

Decrease

Constant prepayment rate (CPR)

17.25%

Decrease

MSRs

77,203

Discounted cash flows

Discount rate

3%-21%

10.21%

Decrease

Constant prepayment rate (CPR)

0%-95%

17.25%

Decrease

Cost of servicing

$70-$200

$77

Decrease

Cost of servicing - delinquent

$200-$1,000

$442

Decrease

Derivatives

58,433

Discounted cash flows

Pull-through rate

0%-100%

79%

Increase

Measured at fair value on a non-recurring basis:

Individually assessed loans - foreclosure probable and collateral-dependent

140,473

Appraisal value

Appraisal adjustment - cost of sale

10%

10.00%

Decrease

Other real estate owned

10,197

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 June 30, 2020				At December 31, 2019				At June 30, 2019
	Carrying		Fair		Carrying		Fair		Carrying		Fair
(In thousands)	Value		Value		Value		Value		Value		Value
Financial Assets:
Cash and cash equivalents	$	345,057	$	345,057	$	286,476	$	286,476	$	300,992	$	300,992
Interest bearing deposits with banks	4,015,072		4,015,072		2,164,560		2,164,560		1,437,105		1,437,105
Available-for-sale securities	3,194,961		3,194,961		3,106,214		3,106,214		2,186,154		2,186,154
Held-to-maturity securities	728,465		744,286		1,134,400		1,138,396		1,191,634		1,198,478
Trading account securities	890		890		1,068		1,068		2,430		2,430
Equity securities with readily determinable fair value	52,460		52,460		50,840		50,840		44,319		44,319
FHLB and FRB stock, at cost	135,571		135,571		100,739		100,739		92,026		92,026
Brokerage customer receivables	14,623		14,623		16,573		16,573		13,569		13,569
Mortgage loans held-for-sale, at fair value	833,163		833,163		377,313		377,313		394,975		394,975
Loans held-for-investment, at fair value	254,614		254,614		132,718		132,718		106,081		106,081
Loans held-for-investment, at amortized cost	31,148,289		31,004,403		26,667,572		26,659,903		25,198,578		25,086,371
Nonqualified deferred compensation assets	13,576		13,576		14,213		14,213		13,672		13,672
Derivative assets	327,624		327,624		103,644		103,644		108,784		108,784
Accrued interest receivable and other	263,743		263,743		303,090		303,090		271,988		271,988
Total financial assets	$	41,328,108	$	41,200,043	$	34,459,420	$	34,455,747	$	31,362,307	$	31,256,944
Financial Liabilities
Non-maturity deposits	$	30,814,487	$	30,814,487	$	24,483,867	$	24,483,867	$	22,013,192	$	22,013,192
Deposits with stated maturities	4,837,387		4,838,831		5,623,271		5,635,475		5,505,623		5,526,715
FHLB advances	1,228,416		1,181,462		674,870		715,129		574,823		596,689
Other borrowings	508,535		508,535		418,174		418,174		418,057		418,057
Subordinated notes	436,298		473,324		436,095		458,796		436,021		451,874
Junior subordinated debentures	253,566		170,449		253,566		243,158		253,566		250,697
Derivative liabilities	355,265		355,265		129,204		129,204		136,312		136,312
Accrued interest payable	17,200		17,200		19,940		19,940		17,503		17,503
Total financial liabilities	$	38,451,154	$	38,359,553	$	32,038,987	$	32,103,743	$	29,355,097	$	29,411,039