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Fair Values of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2022

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:


	September 30, 2022
(In thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	—	$	—	$	—	$	—
U.S. government agencies	44,013		—		44,013		—
Municipal	174,001		—		51,569		122,432
Corporate notes	87,033		—		87,033		—
Mortgage-backed	2,618,606		—		2,618,606		—
Trading account securities	179		—		179		—
Equity securities with readily determinable fair value	114,012		105,946		8,066		—
Mortgage loans held-for-sale	376,160		—		327,740		48,420
Loans held-for-investment	156,893		—		58,326		98,567
MSRs	229,671		—		—		229,671
Nonqualified deferred compensation assets	13,387		—		13,387		—
Derivative assets	313,480		—		313,339		141
Total	$	4,127,435	$	105,946	$	3,522,258	$	499,231
Derivative liabilities	$	357,170	$	—	$	357,170	$	—


	December 31, 2021
(In thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	—	$	—	$	—	$	—
U.S. government agencies	52,507		—		52,507		—
Municipal	165,594		—		59,907		105,687
Corporate notes	95,704		—		95,704		—
Mortgage-backed	2,013,988		—		2,013,988		—
Trading account securities	1,061		—		1,061		—
Equity securities with readily determinable fair value	90,511		82,445		8,066		—
Mortgage loans held-for-sale	817,912		—		817,912		—
Loans held-for-investment	38,598		—		22,707		15,891
MSRs	147,571		—		—		147,571
Nonqualified deferred compensation assets	16,240		—		16,240		—
Derivative assets	165,008		—		154,448		10,560
Total	$	3,604,694	$	82,445	$	3,242,540	$	279,709
Derivative liabilities	$	123,000	$	—	$	123,000	$	—


	September 30, 2021
(In thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	6,000	$	6,000	$	—	$	—
U.S. government agencies	53,275		—		53,275		—
Municipal	174,600		—		56,876		117,724
Corporate notes	99,118		—		99,118		—
Mortgage-backed	2,040,485		—		2,040,485		—
Trading account securities	1,103		—		1,103		—
Equity securities with readily determinable fair value	88,193		80,127		8,066		—
Mortgage loans held-for-sale	925,312		—		925,312		—
Loans held-for-investment	30,979		—		18,847		12,132
MSRs	133,552		—		—		133,552
Nonqualified deferred compensation assets	15,797		—		15,797		—
Derivative assets	191,612		—		177,000		14,612
Total	$	3,760,026	$	86,127	$	3,395,879	$	278,020
Derivative liabilities	$	161,314	$	—	$	161,314	$	—

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 nine months ended September 30, 2022 and 2021 are summarized as follows:


			Mortgage loans held-for-sale		U.S. Government agencies		Loans held-for- investment		Mortgage servicing rights		Derivative assets
(In thousands)	Municipal
Balance at July 1, 2022	$	113,485	$	88,963	$	—	$	84,798	$	212,664	$	6,649
Total net (losses) gains included in:
Net income (1)	—		(787)		—		(1,574)		17,007		(6,508)
Other comprehensive income or loss	(2,618)		—		—		—		—		—
Purchases	11,590		—		—		—		—		—
Issuances	—		—		—		—		—		—
Sales	—		—		—		—		—		—
Settlements	(25)		(27,512)		—		(12,986)		—		—
Net transfers (out of)/into Level 3	—		(12,244)		—		28,329		—		—
Balance at September 30, 2022	$	122,432	$	48,420	$	—	$	98,567	$	229,671	$	141


			Mortgage loans held-for-sale		U.S. Government agencies		Loans held-for- investment		Mortgage servicing rights		Derivative assets
(In thousands)	Municipal
Balance at July 1, 2021	$	117,606	$	—	$	—	$	11,007	$	127,604	$	22,570
Total net gains (losses) included in:
Net income (1)	—		—		—		54		5,948		(7,958)
Other comprehensive income or loss	(757)		—				—		—		—
Purchases	875		—		—		—		—		—
Issuances	—		—		—		—		—		—
Sales	—		—		—		—		—		—
Settlements	—		—		—		(588)		—		—
Net transfers into Level 3	—		—		—		1,659		—		—
Balance at September 30, 2021	$	117,724	$	—	$	—	$	12,132	$	133,552	$	14,612

(1)Changes in the balance of MSRs, mortgage loans held-for-sale 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.


			Mortgage loans held-for-sale		U.S. Government Agencies		Loans held-for- investment		Mortgage servicing rights		Derivative Assets
(In thousands)	Municipal
Balance at January 1, 2022	$	105,687	$	—	$	—	$	15,891	$	147,571	$	10,560
Total net (losses) gains included in:
Net income (1)	—		(3,687)		—		(4,121)		82,100		(10,419)
Other comprehensive income or loss	(8,752)		—		—		—		—		—
Purchases	28,333		—		—		—		—		—
Issuances	—		—		—		—		—		—
Sales	—		—		—		—		—		—
Settlements	(2,836)		(27,512)		—		(21,884)		—		—
Net transfers into Level 3	—		79,619		—		108,681		—		—
Balance at September 30, 2022	$	122,432	$	48,420	$	—	$	98,567	$	229,671	$	141


			Mortgage loans held-for-sale		U.S. Government Agencies		Loans held-for- investment		Mortgage servicing rights		Derivative Assets
(In thousands)	Municipal
Balance at January 1, 2021	$	109,876	$	—	$	1,966	$	10,280	$	92,081	$	48,091
Total net (losses) gains included in:
Net income (1)	—		—		(4)		(309)		41,471		(33,479)
Other comprehensive income or loss	(3,199)		—		(24)		—		—		—
Purchases	19,038		—		—		—		—		—
Issuances	—		—		—		—		—		—
Sales	—		—		—		—		—		—
Settlements	(7,991)		—		(1,938)		(4,565)		—		—
Net transfers into Level 3	—		—		—		6,726		—		—
Balance at September 30, 2021	$	117,724	$	—	$	—	$	12,132	$	133,552	$	14,612

(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 non-recurring 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 September 30, 2022:


	September 30, 2022								Three Months Ended September 30, 2022 Fair Value Losses Recognized, net		Nine Months Ended September 30, 2022 Fair Value Losses Recognized, net
(In thousands)	Total		Level 1		Level 2		Level 3
Individually assessed loans - foreclosure probable and collateral-dependent	$	81,889	$	—	$	—	$	81,889	$	837	$	12,878
Other real estate owned (1)	6,687		—		—		6,687		153		435
Total	$	88,576	$	—	$	—	$	88,576	$	990	$	13,313

(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 NonRecurring

The valuation techniques and significant unobservable inputs used to measure both recurring and non-recurring Level 3 fair value measurements at September 30, 2022 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

122,432

Bond pricing

Equivalent rating

BBB-AA+

N/A

Increase

Mortgage loans held-for-sale

48,420

Discounted cash flows

Discount rate

6.19%

Decrease

Credit discount

0% - 14%

0.23%

Decrease

Loans held-for-investment

98,567

Discounted cash flows

Discount rate

6.00% - 6.50%

6.21%

Decrease

Credit discount

0% - 35%

0.61%

Decrease

Constant prepayment rate (CPR) - current loans

6.49%

Decrease

Average life - delinquent loans (in years)

1 year - 13 years

5.5 years

Decrease

MSRs

229,671

Discounted cash flows

Discount rate

8% - 20%

10.29%

Decrease

Constant prepayment rate (CPR)

0% - 90%

6.49%

Decrease

Cost of servicing

$70 - $200

Decrease

Cost of servicing - delinquent

$200 - 1,250

371

Decrease

Derivatives

141

Discounted cash flows

Pull-through rate

2% - 100%

85.48

Increase

Measured at fair value on a non-recurring basis:

Individually assessed loans - foreclosure probable and collateral-dependent

81,889

Appraisal value

Appraisal adjustment - cost of sale

10%

10.00%

Decrease

Other real estate owned

6,687

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 September 30, 2022				At December 31, 2021				At September 30, 2021
	Carrying		Fair		Carrying		Fair		Carrying		Fair
(In thousands)	Value		Value		Value		Value		Value		Value
Financial Assets:
Cash and cash equivalents	$	489,647	$	489,647	$	411,205	$	411,205	$	462,299	$	462,299
Securities sold under agreements to repurchase with original maturities exceeding three months	—		—		700,000		700,000		—		—
Interest-bearing deposits with banks	3,968,605		3,968,605		5,372,603		5,372,603		5,232,315		5,232,315
Available-for-sale securities	2,923,653		2,923,653		2,327,793		2,327,793		2,373,478		2,373,478
Held-to-maturity securities	3,389,842		2,679,326		2,942,285		2,900,694		2,736,722		2,699,480
Trading account securities	179		179		1,061		1,061		1,103		1,103
Equity securities with readily determinable fair value	114,012		114,012		90,511		90,511		88,193		88,193
FHLB and FRB stock, at cost	178,156		178,156		135,378		135,378		135,408		135,408
Brokerage customer receivables	20,327		20,327		26,068		26,068		26,378		26,378
Mortgage loans held-for-sale, at fair value	376,160		376,160		817,912		817,912		925,312		925,312
Loans held-for-investment, at fair value	156,893		156,893		38,598		38,598		30,979		30,979
Loans held-for-investment, at amortized cost	38,010,720		37,224,753		34,750,506		35,297,878		33,233,064		33,276,688
Nonqualified deferred compensation assets	13,387		13,387		16,240		16,240		15,797		15,797
Derivative assets	313,480		313,480		165,008		165,008		191,612		191,612
Accrued interest receivable and other	317,142		317,142		268,921		268,921		272,293		272,293
Total financial assets	$	50,272,203	$	48,775,720	$	48,064,089	$	48,569,870	$	45,724,953	$	45,731,335
Financial Liabilities
Non-maturity deposits	$	38,720,873	$	38,720,873	$	38,126,796	$	38,126,796	$	35,822,012	$	35,822,012
Deposits with stated maturities	4,076,318		4,087,196		3,968,789		3,965,372		4,130,546		4,124,199
FHLB advances	2,316,071		2,230,921		1,241,071		1,186,280		1,241,071		1,164,168
Other borrowings	447,215		447,971		494,136		494,670		504,527		504,527
Subordinated notes	437,260		417,363		436,938		472,684		436,811		474,171
Junior subordinated debentures	253,566		285,238		253,566		212,226		253,566		207,675
Derivative liabilities	357,170		357,170		123,000		123,000		161,314		161,314
Accrued interest payable	18,479		18,479		9,304		9,304		15,030		15,030
Total financial liabilities	$	46,626,952	$	46,565,211	$	44,653,600	$	44,590,332	$	42,564,877	$	42,473,096