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Fair Values of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2023

Schedule 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, 2023
(In thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	4,931	$	4,931	$	—	$	—
U.S. government agencies	72,430		—		72,430		—
Municipal	168,523		—		55,304		113,219
Corporate notes	76,606		—		76,606		—
Mortgage-backed	3,289,345		—		3,289,345		—
Trading account securities	1,663		—		1,663		—
Equity securities with readily determinable fair value	134,310		126,244		8,066		—
Mortgage loans held-for-sale	304,808		—		279,621		25,187
Loans held-for-investment	171,178		—		113,217		57,961
MSRs	210,524		—		—		210,524
Nonqualified deferred compensation assets	14,449		—		14,449		—
Derivative assets	323,705		—		321,189		2,516
Total	$	4,772,472	$	131,175	$	4,231,890	$	409,407
Derivative liabilities	$	458,706	$	—	$	458,706	$	—


	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	$	—


	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	$	—

Schedule 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, 2023 and 2022 are summarized as follows:


			Mortgage loans held-for-sale		Loans held-for- investment		Mortgage servicing rights		Derivative assets
(In thousands)	Municipal
Balance at July 1, 2023	$	114,155	$	29,406	$	61,123	$	200,692	$	3,487
Total net (losses) gains included in:
Net income (1)	—		626		(260)		9,832		(971)
Other comprehensive income or loss	(1,614)		—		—		—		—
Purchases	678		—		—		—		—
Issuances	—		—		—		—		—
Sales	—		—		—				—
Settlements	—		(18,454)		(16,852)		—		—
Net transfers into Level 3	—		13,609		13,950		—		—
Balance at September 30, 2023	$	113,219	$	25,187	$	57,961	$	210,524	$	2,516


			Mortgage loans held-for-sale		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

(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		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)	—		1,494		(515)		10,469		805
Other comprehensive income or loss	(6,437)		—		—		—		—
Purchases	12,074		—		—		—		—
Issuances	—		—		—		—		—
Sales	—		—		—		(30,170)		—
Settlements	(9,955)		(61,046)		(53,767)		—		—
Net transfers into Level 3	—		36,084		28,078		—		—
Balance at September 30, 2023	$	113,219	$	25,187	$	57,961	$	210,524	$	2,516


			Mortgage loans held-for-sale		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

Schedule 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, 2023:


	September 30, 2023								Three Months Ended September 30, 2023 Fair Value Losses Recognized, net		Nine Months Ended September 30, 2023 Fair Value Losses Recognized, net
(In thousands)	Total		Level 1		Level 2		Level 3
Individually assessed loans - foreclosure probable and collateral-dependent	$	77,937	$	—	$	—	$	77,937	$	4,375	$	18,511
Other real estate owned (1)	14,060		—		—		14,060		—		104
Total	$	91,997	$	—	$	—	$	91,997	$	4,375	$	18,615

(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 September 30, 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

113,219

Bond pricing

Equivalent rating

BBB-AA+

N/A

Increase

Mortgage loans held-for-sale

25,187

Discounted cash flows

Discount rate

6.98%

Decrease

Credit discount

0% - 10%

0.22%

Decrease

Loans held-for-investment

57,961

Discounted cash flows

Discount rate

6.98% - 7.50%

7.04%

Decrease

Credit discount

0% - 29%

0.98%

Decrease

Constant prepayment rate (CPR) - current loans

6.94%

Decrease

Average life - delinquent loans (in years)

1.3 years - 10.1 years

5.9 years

Decrease

MSRs

210,524

Discounted cash flows

Discount rate

4% - 21%

10.51%

Decrease

Constant prepayment rate (CPR)

0% - 90%

6.94%

Decrease

Cost of servicing

$70 - $200

Decrease

Cost of servicing - delinquent

$200 - 1,000

407

Decrease

Derivatives

2,516

Discounted cash flows

Pull-through rate

13% - 100%

83.02

Increase

Measured at fair value on a non-recurring basis:

Individually assessed loans - foreclosure probable and collateral-dependent

77,937

Appraisal value

Appraisal adjustment - cost of sale

10%

10.00%

Decrease

Other real estate owned

14,060

Appraisal value

Appraisal adjustment - cost of sale

10%

10.00%

Decrease

Schedule 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, 2023				At December 31, 2022				At September 30, 2022
	Carrying		Fair		Carrying		Fair		Carrying		Fair
(In thousands)	Value		Value		Value		Value		Value		Value
Financial Assets:
Cash and cash equivalents	$	418,148	$	418,148	$	490,966	$	490,966	$	489,647	$	489,647

Interest-bearing deposits with banks	2,448,570		2,448,570		1,988,719		1,988,719		3,968,605		3,968,605
Available-for-sale securities	3,611,835		3,611,835		3,243,017		3,243,017		2,923,653		2,923,653
Held-to-maturity securities	3,909,150		3,057,959		3,640,567		2,949,821		3,389,842		2,679,326
Trading account securities	1,663		1,663		1,127		1,127		179		179
Equity securities with readily determinable fair value	134,310		134,310		110,365		110,365		114,012		114,012
FHLB and FRB stock, at cost	204,040		204,040		224,759		224,759		178,156		178,156
Brokerage customer receivables	14,042		14,042		16,387		16,387		20,327		20,327
Mortgage loans held-for-sale, at fair value	304,808		304,808		299,935		299,935		376,160		376,160
Loans held-for-investment, at fair value	171,178		171,178		179,932		179,932		156,893		156,893
Loans held-for-investment, at amortized cost	41,274,854		40,300,208		39,016,553		38,018,678		38,010,720		37,224,753
Nonqualified deferred compensation assets	14,449		14,449		13,899		13,899		13,387		13,387
Derivative assets	323,705		323,705		296,848		296,848		313,480		313,480
Accrued interest receivable and other	465,117		465,117		379,719		379,719		317,142		317,142
Total financial assets	$	53,295,869	$	51,470,032	$	49,902,793	$	48,214,172	$	50,272,203	$	48,775,720
Financial Liabilities
Non-maturity deposits	$	38,204,017	$	38,204,017	$	38,167,409	$	38,167,409	$	38,720,873	$	38,720,873
Deposits with stated maturities	6,788,669		6,744,989		4,735,135		4,085,058		4,076,318		4,087,196
FHLB advances	2,326,071		2,189,101		2,316,071		2,219,983		2,316,071		2,230,921
Other borrowings	643,999		641,514		596,614		569,342		447,215		447,971
Subordinated notes	437,731		400,520		437,392		409,395		437,260		417,363
Junior subordinated debentures	253,566		253,568		253,566		253,405		253,566		285,238
Derivative liabilities	458,706		458,706		338,078		338,078		357,170		357,170
Accrued interest payable	54,383		54,383		22,176		22,176		18,479		18,479
Total financial liabilities	$	49,167,142	$	48,946,798	$	46,866,441	$	46,064,846	$	46,626,952	$	46,565,211