Fair Value Measurements

9 Months Ended

Sep. 30, 2018

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 2017 Form 10-K.

During the nine months ended September 30, 2018, 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, 2018										December 31, 2017
	Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3		Total
Assets
Available-for-sale investments	$	—	$	172,370		$	—	$	172,370		$	—	$	244,088		$	—	$	244,088
Derivative instruments	—		1,384			—		1,384			—		812			—		812
Total	$	—	$	173,754		$	—	$	173,754		$	—	$	244,900		$	—	$	244,900
Liabilities
Derivative instruments	$	—	$	(454	)	$	—	$	(454	)	$	—	$	(2,584	)	$	—	$	(2,584	)
Total	$	—	$	(454	)	$	—	$	(454	)	$	—	$	(2,584	)	$	—	$	(2,584	)

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

	September 30, 2018						December 31, 2017
	Fair Value		Carrying Value		Difference		Fair Value		Carrying Value		Difference
Earning assets
Loans held for investment, net	$	24,167,452	$	21,978,903	$	2,188,549	$	20,673,136	$	18,567,641	$	2,105,495
Cash and cash equivalents	1,839,054		1,839,054		—		1,534,339		1,534,339		—
Available-for-sale investments	172,370		172,370		—		244,088		244,088		—
Accrued interest receivable	1,270,026		1,270,026		—		967,482		967,482		—
Tax indemnification receivable	54,941		54,941		—		168,011		168,011		—
Derivative instruments	1,384		1,384		—		812		812		—
Total earning assets	$	27,505,227	$	25,316,678	$	2,188,549	$	23,587,868	$	21,482,373	$	2,105,495
Interest-bearing liabilities
Money-market and savings accounts	$	8,923,893	$	8,923,893	$	—	$	8,470,209	$	8,470,209	$	—
Certificates of deposit	8,928,356		8,948,888		20,532		7,044,208		7,034,121		(10,087		)
Long-term borrowings	4,503,254		4,532,221		28,967		3,299,871		3,275,270		(24,601		)
Accrued interest payable	62,627		62,627		—		35,363		35,363		—
Derivative instruments	454		454		—		2,584		2,584		—
Total interest-bearing liabilities	$	22,418,584	$	22,468,083	$	49,499	$	18,852,235	$	18,817,547	$	(34,688	)
Excess of net asset fair value over carrying value					$	2,238,048					$	2,070,807

Please refer to Note 15, “Fair Value Measurements” in our 2017 Form 10-K for a full discussion of the methods and assumptions used to estimate the fair value of each class of financial instruments.