Fair Value Measurements

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

We use estimates of fair value in applying various accounting standards for our financial statements.

We categorize our fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. For additional information regarding our policies for determining fair value and the hierarchical framework, see Note 2, “Significant Accounting Policies - Fair Value Measurement” in our 2016 Form 10-K.

During the three and nine months ended September 30, 2017, there were no significant transfers of financial instruments between levels or changes in our methodology or assumptions used to value our financial instruments.

The following table summarizes the valuation of our financial instruments that are marked to fair value on a recurring basis.

	Fair Value Measurements on a Recurring Basis
	September 30, 2017										December 31, 2016
	Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3		Total
Assets
Available-for-sale investments	$	—	$	232,549		$	—	$	232,549		$	—	$	208,603		$	—	$	208,603
Derivative instruments	—		636			—		636			—		7,808			—		7,808
Total	$	—	$	233,185		$	—	$	233,185		$	—	$	216,411		$	—	$	216,411
Liabilities
Derivative instruments	$	—	$	(8,636	)	$	—	$	(8,636	)	$	—	$	(25,937	)	$	—	$	(25,937	)
Total	$	—	$	(8,636	)	$	—	$	(8,636	)	$	—	$	(25,937	)	$	—	$	(25,937	)

The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments.

	September 30, 2017							December 31, 2016
	Fair Value		Carrying Value		Difference			Fair Value		Carrying Value		Difference
Earning assets
Loans held for investment, net	$	20,013,518	$	18,040,465	$	1,973,053		$	16,520,786	$	15,137,922	$	1,382,864
Cash and cash equivalents	1,247,764		1,247,764		—			1,918,793		1,918,793		—
Available-for-sale investments	232,549		232,549		—			208,603		208,603		—
Accrued interest receivable	1,019,735		1,019,735		—			766,106		766,106		—
Tax indemnification receivable	214,496		214,496		—			259,532		259,532		—
Derivative instruments	636		636		—			7,808		7,808		—
Total earning assets	$	22,728,698	$	20,755,645	$	1,973,053		$	19,681,628	$	18,298,764	$	1,382,864
Interest-bearing liabilities
Money-market and savings accounts	$	8,480,477	$	8,480,477	$	—		$	7,963,925	$	7,963,925	$	—
Certificates of deposit	6,569,956		6,553,047		(16,909		)	5,510,504		5,471,065		(39,439		)
Short-term borrowings	300,000		300,000		—			—		—		—
Long-term borrowings	2,764,427		2,738,662		(25,765		)	2,160,105		2,167,979		7,874
Accrued interest payable	36,299		36,299		—			21,058		21,058		—
Derivative instruments	8,636		8,636		—			25,937		25,937		—
Total interest-bearing liabilities	$	18,159,795	$	18,117,121	$	(42,674	)	$	15,681,529	$	15,649,964	$	(31,565	)
Excess of net asset fair value over carrying value					$	1,930,379						$	1,351,299

Please refer to Note 15, “Fair Value Measurements” in our 2016 Form 10-K for a full discussion of the methods and assumptions used to estimate the fair value of each class of financial instruments.