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Fair Value Measurement and Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2020
Fair Value, Financial Assets and Liabilities Measured on Recurring and Nonrecurring Basis  
Schedule of financial assets (liabilities) measured at fair value on a recurring basis
The following tables present financial assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019:
($ in thousands)Assets and Liabilities Measured at Fair Value on a Recurring Basis
as of September 30, 2020
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Fair Value
AFS debt securities:
U.S. Treasury securities$50,998 $— $— $50,998 
U.S. government agency and U.S. government-sponsored enterprise debt securities— 727,062 — 727,062 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities— 967,109 — 967,109 
Residential mortgage-backed securities— 1,238,009 — 1,238,009 
Municipal securities— 333,275 — 333,275 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities— 214,676 — 214,676 
Residential mortgage-backed securities— 277,613 — 277,613 
Corporate debt securities— 251,177 — 251,177 
Foreign government bonds— 132,671 — 132,671 
Asset-backed securities— 63,148 — 63,148 
Collateralized loan obligations (“CLOs”)— 283,422 — 283,422 
Total AFS debt securities
$50,998 $4,488,162 $— $4,539,160 
Investments in tax credit and other investments:
Equity securities (1)
$22,538 $8,741 $— $31,279 
Total investments in tax credit and other investments
$22,538 $8,741 $— $31,279 
Derivative assets:
Interest rate contracts$— $566,635 $— $566,635 
Foreign exchange contracts— 19,134 — 19,134 
Credit contracts— 47 — 47 
Equity contracts— 12,455 310 12,765 
Commodity contracts— 110,029 — 110,029 
Gross derivative assets$— $708,300 $310 $708,610 
Netting adjustments (2)
$— $(109,696)$— $(109,696)
Net derivative assets$— $598,604 $310 $598,914 
Derivative liabilities:
Interest rate contracts$— $372,057 $— $372,057 
Foreign exchange contracts— 14,782 — 14,782 
Credit contracts— 307 — 307 
Commodity contracts— 118,873 — 118,873 
Gross derivative liabilities$— $506,019 $— $506,019 
Netting adjustments (2)
$— $(202,131)$— $(202,131)
Net derivative liabilities$— $303,888 $— $303,888 
(1)Equity securities consist of mutual funds with readily determinable fair values.
(2)Represents balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See Note 6 — Derivatives to the Consolidated Financial Statements in this Form 10-Q for additional information.
($ in thousands)Assets and Liabilities Measured at Fair Value on a Recurring Basis
as of December 31, 2019
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Fair Value
AFS debt securities:
U.S. Treasury securities$176,422 $— $— $176,422 
U.S. government agency and U.S. government-sponsored enterprise debt securities— 581,245 — 581,245 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities— 603,471 — 603,471 
Residential mortgage-backed securities— 1,003,897 — 1,003,897 
Municipal securities— 102,302 — 102,302 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities— 88,550 — 88,550 
Residential mortgage-backed securities— 46,548 — 46,548 
Corporate debt securities— 11,149 — 11,149 
Foreign government bonds— 354,172 — 354,172 
Asset-backed securities— 64,752 — 64,752 
CLOs— 284,706 — 284,706 
Total AFS debt securities
$176,422 $3,140,792 $— $3,317,214 
Investments in tax credit and other investments:
Equity securities (1)
$21,746 $9,927 $— $31,673 
Total investments in tax credit and other investments
$21,746 $9,927 $— $31,673 
Derivative assets:
Interest rate contracts$— $192,883 $— $192,883 
Foreign exchange contracts— 54,637 — 54,637 
Credit contracts— 2 — 2 
Equity contracts— 993 421 1,414 
Commodity contracts— 81,380 — 81,380 
Gross derivative assets$— $329,895 $421 $330,316 
Netting adjustments (2)
$— $(125,319)$— $(125,319)
Net derivative assets$— $204,576 $421 $204,997 
Derivative liabilities:
Interest rate contracts$— $127,317 $— $127,317 
Foreign exchange contracts— 48,610 — 48,610 
Credit contracts— 84 — 84 
Commodity contracts— 80,517 — 80,517 
Gross derivative liabilities$— $256,528 $— $256,528 
Netting adjustments (2)
$— $(159,799)$— $(159,799)
Net derivative liabilities$— $96,729 $— $96,729 
(1)Equity securities consist of mutual funds with readily determinable fair values.
(2)Represents balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See Note 6 — Derivatives to the Consolidated Financial Statements in this Form 10-Q for additional information.
Reconciliation of the beginning and ending balances for equity warrants measured at fair value on a recurring basis using significant unobservable inputs (Level 3) The following table provides a reconciliation of the beginning and ending balances of these equity warrants for the three and nine months ended September 30, 2020 and 2019:
($ in thousands)Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Equity Contracts
Beginning balance$316 $392 $421 $673 
Total (losses) gains included in earnings (1)
(6)10 8,262 548 
Issuances— — — 28 
Settlements— — — (847)
Transfers out of Level 3 (2)
— — (8,373)— 
Ending balance$310 $402 $310 $402 
(1)Includes unrealized (losses) gains of $(6) thousand and $10 thousand for the three months ended September 30, 2020 and 2019, respectively, and $8.3 million and $(225) thousand for the nine months ended September 30, 2020 and 2019, respectively. The realized/unrealized gains (losses) of equity warrants are included in Lending fees on the Consolidated Statement of Income.
(2)During the nine months ended September 30, 2020, the Company transferred $8.4 million of equity contracts measured on a recurring basis out of Level 3 into Level 2 after the corresponding issuer of the equity warrant, which was previously a private company, completed its initial public offering and became a public company.
Schedule of carrying amounts of assets that were still held and had fair value changes measured on a nonrecurring basis
The following tables present the carrying amounts of assets that were still held and had fair value changes measured on a nonrecurring basis as of September 30, 2020 and December 31, 2019:
($ in thousands)Assets Measured at Fair Value on a Nonrecurring Basis
as of September 30, 2020
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Fair Value
Measurements
Loans held-for-investment:
Commercial:
C&I$— $— $116,077 $116,077 
CRE:
CRE— — 51,280 51,280 
Total commercial— — 167,357 167,357 
Consumer:
Residential mortgage:
HELOCs— — 1,156 1,156 
Other consumer— — 2,491 2,491 
Total consumer— — 3,647 3,647 
Total loans held-for-investment$— $— $171,004 $171,004 
Investments in tax credit and other investments, net$— $— $6,216 $6,216 
($ in thousands)Assets Measured at Fair Value on a Nonrecurring Basis
as of December 31, 2019
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Fair Value
Measurements
Loans held-for-investment:
Commercial:
C&I$— $— $47,554 $47,554 
CRE:
CRE— — 753 753 
Total commercial— — 48,307 48,307 
Consumer:
Residential mortgage:
HELOCs— — 1,372 1,372 
Total consumer— — 1,372 1,372 
Total loans held-for-investment$— $— $49,679 $49,679 
Investments in tax credit and other investments, net
$— $— $3,076 $3,076 
OREO (1)
$— $— $125 $125 
Other nonperforming assets$— $— $1,167 $1,167 
(1)Amounts are included in Other assets on the Consolidated Balance Sheet and represent the carrying value of OREO properties that were written down subsequent to their initial classification as OREO.
Schedule of increase (decrease) in fair value of assets for which a fair value adjustment has been recognized, nonrecurring basis
The following table presents the increase (decrease) in fair value of assets for which a nonrecurring fair value adjustment has been recognized for the three and nine months ended September 30, 2020 and 2019:
($ in thousands)Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Loans held-for-investment:
Commercial:
C&I$(24,928)$(20,484)$(38,855)$(43,109)
CRE:
CRE(15)2 (292)6 
Total commercial(24,943)(20,482)(39,147)(43,103)
Consumer:
Residential mortgage:
HELOCs3 — (178)— 
Other consumer— — 2,491 — 
Total consumer
3 — 2,313 — 
Total loans held-for-investment$(24,940)$(20,482)$(36,834)$(43,103)
Investments in tax credit and other investments, net
$— $(1,703)$(583)$(11,573)
OREO$— $(1,020)$— $(1,023)
Other nonperforming assets$— $— $— $(3,000)
Schedule of the carrying and fair value estimates per the fair value hierarchy of financial instruments measured on a nonrecurring basis
The following tables present the fair value estimates for financial instruments as of September 30, 2020 and December 31, 2019, excluding financial instruments recorded at fair value on a recurring basis as they are included in the tables presented elsewhere in this Note. The carrying amounts in the following tables are recorded on the Consolidated Balance Sheet under the indicated captions, except for accrued interest receivable and mortgage servicing rights that are included in Other assets, and accrued interest payable that is included in Accrued expenses and other liabilities. These financial assets and liabilities are measured at amortized cost basis on the Company’s Consolidated Balance Sheet.
($ in thousands)September 30, 2020
Carrying
Amount		Level 1Level 2Level 3Estimated
Fair Value
Financial assets:
Cash and cash equivalents$4,506,941 $4,506,941 $— $— $4,506,941 
Interest-bearing deposits with banks$699,465 $— $699,465 $— $699,465 
Resale agreements (1)
$1,210,000 $— $1,215,801 $— $1,215,801 
Restricted equity securities, at cost$79,172 $— $79,172 $— $79,172 
Loans held-for-sale$4,148 $— $4,148 $— $4,148 
Loans held-for-investment, net$36,818,877 $— $— $37,087,711 $37,087,711 
Mortgage servicing rights$5,169 $— $— $7,511 $7,511 
Accrued interest receivable$143,354 $— $143,354 $— $143,354 
Financial liabilities:
Demand, checking, savings and money market deposits$32,611,382 $— $32,611,382 $— $32,611,382 
Time deposits$9,069,173 $— $9,091,802 $— $9,091,802 
Short-term borrowings$59,613 $— $59,613 $— $59,613 
FHLB advances$657,185 $— $666,989 $— $666,989 
Repurchase agreements (1)
$348,063 $— $368,098 $— $368,098 
Long-term debt$1,574,765 $— $1,577,572 $— $1,577,572 
Accrued interest payable$21,671 $— $21,671 $— $21,671 
($ in thousands)December 31, 2019
Carrying
Amount		Level 1Level 2Level 3Estimated
Fair Value
Financial assets:
Cash and cash equivalents$3,261,149 $3,261,149 $— $— $3,261,149 
Interest-bearing deposits with banks$196,161 $— $196,161 $— $196,161 
Resale agreements (1)
$860,000 $— $856,025 $— $856,025 
Restricted equity securities, at cost$78,580 $— $78,580 $— $78,580 
Loans held-for-sale$434 $— $434 $— $434 
Loans held-for-investment, net$34,420,252 $— $— $35,021,300 $35,021,300 
Mortgage servicing rights$6,068 $— $— $8,199 $8,199 
Accrued interest receivable$144,599 $— $144,599 $— $144,599 
Financial liabilities:
Demand, checking, savings and money market deposits$27,109,951 $— $27,109,951 $— $27,109,951 
Time deposits$10,214,308 $— $10,208,895 $— $10,208,895 
Short-term borrowings$28,669 $— $28,669 $— $28,669 
FHLB advances$745,915 $— $755,371 $— $755,371 
Repurchase agreements (1)
$200,000 $— $232,597 $— $232,597 
Long-term debt$147,101 $— $152,641 $— $152,641 
Accrued interest payable$27,246 $— $27,246 $— $27,246 
(1)Resale and repurchase agreements are reported net pursuant to ASC 210-20-45-11, Balance Sheet Offsetting: Repurchase and Reverse Repurchase Agreements. As of September 30, 2020, none of the $348.1 million of gross repurchase agreements were eligible for netting against gross resale agreements. Out of $450.0 million of gross repurchase agreements, $250.0 million were eligible for netting against gross resale agreements as of December 31, 2019
Fair Value, Measurements, Recurring  
Fair Value, Financial Assets and Liabilities Measured on Recurring and Nonrecurring Basis  
Schedule of quantitative information about significant unobservable inputs used in the valuation of Level 3 fair value measurements
The following table presents quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements as of September 30, 2020 and December 31, 2019, respectively. The significant unobservable inputs presented in the table below are those that the Company considers significant to the fair value of the Level 3 assets. The Company considers unobservable inputs to be significant if, by their exclusion, the fair value of the Level 3 assets would be impacted by a predetermined percentage change.
($ in thousands)Fair Value
Measurements
(Level 3)		Valuation
Technique		Unobservable
Inputs		Range of Inputs
Weighted-
Average (1)
September 30, 2020
Derivative assets:
Equity contracts$310 
Black-Scholes option pricing model
Equity volatility
54% — 65%
59%
Liquidity discount47%47%
December 31, 2019
Derivative assets:
Equity contracts$421 
Black-Scholes option pricing model
Equity volatility
39% — 44%
42%
Liquidity discount47%47%
(1)Weighted-average is calculated based on fair value of equity warrants as of September 30, 2020 and December 31, 2019.
Fair Value, Measurements, Nonrecurring  
Fair Value, Financial Assets and Liabilities Measured on Recurring and Nonrecurring Basis  
Schedule of quantitative information about significant unobservable inputs used in the valuation of Level 3 fair value measurements
The following table presents the quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements that are measured on a nonrecurring basis as of September 30, 2020 and December 31, 2019:
($ in thousands)Fair Value
Measurements
(Level 3)		Valuation
Techniques		Unobservable
Inputs		Range of 
Inputs
Weighted-
Average of Inputs (1)
September 30, 2020
Loans held-for-investment$82,461 Discounted cash flowsDiscount
4% — 15%
13%
$15,493 Fair value of collateralDiscount
10% — 20%
10%
$22,469 Fair value of collateralContract valueNMNM
$50,581 Fair value of propertySelling cost8%8%
Investments in tax credit and other investments, net
$6,216 Individual analysis of each investmentExpected future tax benefits and distributionsNMNM
December 31, 2019
Loans held-for-investment$27,841 Discounted cash flowsDiscount
4% — 15%
14%
$1,014 Fair value of collateralDiscount
8% — 20%
19%
$20,824 Fair value of collateralContract valueNMNM
Investments in tax credit and other investments, net
$3,076 Individual analysis of each investmentExpected future tax benefits and distributionsNMNM
OREO$125 Fair value of propertySelling cost8%8%
Other nonperforming assets$1,167 Fair value of collateralContract valueNMNM
NM — Not meaningful.
(1)Weighted-average of inputs is based on the relative fair value of the respective assets as of September 30, 2020 and December 31, 2019.