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Fair Values of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

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, 2023
(In thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	4,948	$	4,948	$	—	$	—
U.S. government agencies	74,862		—		74,862		—
Municipal	160,386		—		48,129		112,257
Corporate notes	83,675		—		83,675		—
Mortgage-backed	2,935,974		—		2,935,974		—
Trading account securities	102		—		102		—
Equity securities with readily determinable fair value	111,943		103,877		8,066		—
Mortgage loans held-for-sale	302,493		—		258,243		44,250
Loans held-for-investment	202,143		—		132,650		69,493
MSRs	224,470		—		—		224,470
Nonqualified deferred compensation assets	14,379		—		14,379		—
Derivative assets	274,004		—		268,648		5,356
Total	$	4,389,379	$	108,825	$	3,824,728	$	455,826
Derivative liabilities	$	274,432	$	—	$	274,432	$	—


	December 31, 2022
(In thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	14,948	$	14,948	$	—	$	—
U.S. government agencies	74,222		—		74,222		—
Municipal	168,655		—		51,118		117,537
Corporate notes	85,705		—		85,705		—
Mortgage-backed	2,899,487		—		2,899,487		—
Trading account securities	1,127		—		1,127		—
Equity securities with readily determinable fair value	110,365		102,299		8,066		—
Mortgage loans held-for-sale	299,935		—		251,280		48,655
Loans held-for-investment	179,932		—		95,767		84,165
MSRs	230,225		—		—		230,225
Nonqualified deferred compensation assets	13,899		—		13,899		—
Derivative assets	296,848		—		295,137		1,711
Total	$	4,375,348	$	117,247	$	3,775,808	$	482,293
Derivative liabilities	$	338,078	$	—	$	338,078	$	—


	March 31, 2022
(In thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	—	$	—	$	—	$	—
U.S. government agencies	49,637		—		49,637		—
Municipal	155,489		—		55,088		100,401
Corporate notes	82,939		—		82,939		—
Mortgage-backed	2,710,833		—		2,710,833		—
Trading account securities	852		—		852		—
Equity securities with readily determinable fair value	92,689		84,623		8,066		—
Mortgage loans held-for-sale	606,545		—		606,545		—
Loans held-for-investment	57,984		—		13,520		44,464
MSRs	199,146		—		—		199,146
Nonqualified deferred compensation assets	15,447		—		15,447		—
Derivative assets	153,534		—		150,087		3,447
Total	$	4,125,095	$	84,623	$	3,693,014	$	347,458
Derivative liabilities	$	122,107	$	—	$	122,107	$	—

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, 2023 and 2022 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 January 1, 2023	$	117,537	$	48,655	$	—	$	84,165	$	230,225	$	1,711
Total net (losses) gains included in:
Net income (1)	—		466		—		364		(5,755)		3,645
Other comprehensive income or loss	(1,662)		—		—		—		—		—
Purchases	4,418		—		—		—		—		—
Issuances	—		—		—		—		—		—
Sales	—		—		—		—		—		—
Settlements	(8,036)		(18,619)		—		(20,322)		—		—
Net transfers into Level 3	—		13,748		—		5,286		—		—
Balance at March 31, 2023	$	112,257	$	44,250	$	—	$	69,493	$	224,470	$	5,356

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


			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 gains (losses) included in:
Net income (1)	—		—		—		(772)		51,575		(7,113)
Other comprehensive income or loss	(5,449)		—		—		—		—		—
Purchases	1,246		—		—		—		—		—
Issuances	—		—		—		—		—		—
Sales	—		—		—		—		—		—
Settlements	(1,083)		—		—		(1,667)		—		—
Net transfers into Level 3	—		—		—		31,012		—		—
Balance at March 31, 2022	$	100,401	$	—	$	—	$	44,464	$	199,146	$	3,447

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 March 31, 2023:


	March 31, 2023								Three Months Ended March 31, 2023 Fair Value Losses Recognized, net
(In thousands)	Total		Level 1		Level 2		Level 3
Individually assessed loans - foreclosure probable and collateral-dependent	$	71,622	$	—	$	—	$	71,622	$	2,501
Other real estate owned (1)	9,361		—		—		9,361		104
Total	$	80,983	$	—	$	—	$	80,983	$	2,605

(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 March 31, 2023 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

112,257

Bond pricing

Equivalent rating

BBB-AA+

N/A

Increase

Mortgage loans held-for-sale

44,250

Discounted cash flows

Discount rate

5.96%

Decrease

Credit discount

0% - 10%

0.22%

Decrease

Loans held-for-investment

69,493

Discounted cash flows

Discount rate

5.96% - 6.25%

5.98%

Decrease

Credit discount

0% - 13%

0.86%

Decrease

Constant prepayment rate (CPR) - current loans

6.92%

Decrease

Average life - delinquent loans (in years)

1.2 years - 10.2 years

5.4 years

Decrease

MSRs

224,470

Discounted cash flows

Discount rate

3% - 33%

10.33%

Decrease

Constant prepayment rate (CPR)

0% - 100%

6.92%

Decrease

Cost of servicing

$70 - $200

Decrease

Cost of servicing - delinquent

$200 - 1,000

403

Decrease

Derivatives

5,356

Discounted cash flows

Pull-through rate

31% - 100%

82.06

Increase

Measured at fair value on a non-recurring basis:

Individually assessed loans - foreclosure probable and collateral-dependent

71,622

Appraisal value

Appraisal adjustment - cost of sale

10%

10.00%

Decrease

Other real estate owned

9,361

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, 2023				At December 31, 2022				At March 31, 2022
	Carrying		Fair		Carrying		Fair		Carrying		Fair
(In thousands)	Value		Value		Value		Value		Value		Value
Financial Assets:
Cash and cash equivalents	$	445,986	$	445,986	$	490,966	$	490,966	$	462,572	$	462,572
Securities sold under agreements to repurchase with original maturities exceeding three months	—		—		—		—		700,000		700,000
Interest-bearing deposits with banks	1,563,578		1,563,578		1,988,719		1,988,719		4,013,597		4,013,597
Available-for-sale securities	3,259,845		3,259,845		3,243,017		3,243,017		2,998,898		2,998,898
Held-to-maturity securities	3,606,391		2,976,198		3,640,567		2,949,821		3,435,729		3,146,427
Trading account securities	102		102		1,127		1,127		852		852
Equity securities with readily determinable fair value	111,943		111,943		110,365		110,365		92,689		92,689
FHLB and FRB stock, at cost	244,957		244,957		224,759		224,759		136,163		136,163
Brokerage customer receivables	16,042		16,042		16,387		16,387		22,888		22,888
Mortgage loans held-for-sale, at fair value	302,493		302,493		299,935		299,935		606,545		606,545
Loans held-for-investment, at fair value	202,143		202,143		179,932		179,932		57,984		57,984
Loans held-for-investment, at amortized cost	39,363,328		38,577,761		39,016,553		38,018,678		35,222,563		35,989,840
Nonqualified deferred compensation assets	14,379		14,379		13,899		13,899		15,447		15,447
Derivative assets	274,004		274,004		296,848		296,848		153,534		153,534
Accrued interest receivable and other	417,066		417,066		379,719		379,719		278,873		278,873
Total financial assets	$	49,822,257	$	48,406,497	$	49,902,793	$	48,214,172	$	48,198,334	$	48,676,309
Financial Liabilities
Non-maturity deposits	$	37,366,959	$	37,366,959	$	38,167,409	$	38,167,409	$	38,483,327	$	38,483,327
Deposits with stated maturities	5,351,252		4,970,556		4,735,135		4,085,058		3,735,995		3,735,750
FHLB advances	2,316,071		2,255,580		2,316,071		2,219,983		1,241,071		1,193,080
Other borrowings	583,548		555,615		596,614		569,342		482,516		483,202
Subordinated notes	437,493		410,827		437,392		409,395		437,033		446,711
Junior subordinated debentures	253,566		252,663		253,566		253,405		253,566		268,913
Derivative liabilities	274,432		274,432		338,078		338,078		122,107		122,107
Accrued interest payable	42,015		42,015		22,176		22,176		14,269		14,269
Total financial liabilities	$	46,625,336	$	46,128,647	$	46,866,441	$	46,064,846	$	44,769,884	$	44,747,359