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Fair Value Measurement and Fair Value of Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2021
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, 2021 and December 31, 2020:
($ in thousands)Assets and Liabilities Measured at Fair Value on a Recurring Basis
as of September 30, 2021
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$941,724 $— $— $941,724 
U.S. government agency and U.S. government-sponsored enterprise debt securities— 1,363,109 — 1,363,109 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities— 1,274,467 — 1,274,467 
Residential mortgage-backed securities— 2,791,064 — 2,791,064 
Municipal securities— 501,489 — 501,489 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities— 464,770 — 464,770 
Residential mortgage-backed securities— 901,256 — 901,256 
Corporate debt securities— 618,671 — 618,671 
Foreign government bonds— 254,848 — 254,848 
Asset-backed securities— 76,799 — 76,799 
Collateralized loan obligations (“CLOs”)— 524,809 — 524,809 
Total AFS debt securities
$941,724 $8,771,282 $— $9,713,006 
Investments in tax credit and other investments:
Equity securities (1)
$22,289 $4,496 $— $26,785 
Total investments in tax credit and other investments
$22,289 $4,496 $— $26,785 
Derivative assets:
Interest rate contracts$— $298,831 $— $298,831 
Foreign exchange contracts— 31,875 — 31,875 
Credit contracts— 15 — 15 
Equity contracts— 6 220 226 
Commodity contracts— 363,063 — 363,063 
Gross derivative assets$— $693,790 $220 $694,010 
Netting adjustments (2)
$— $(165,483)$— $(165,483)
Net derivative assets$— $528,307 $220 $528,527 
Derivative liabilities:
Interest rate contracts$— $213,328 $— $213,328 
Foreign exchange contracts— 24,313 — 24,313 
Credit contracts— 120 — 120 
Commodity contracts— 324,027 — 324,027 
Gross derivative liabilities$— $561,788 $— $561,788 
Netting adjustments (2)
$— $(342,619)$— $(342,619)
Net derivative liabilities$— $219,169 $— $219,169 
($ in thousands)Assets and Liabilities Measured at Fair Value on a Recurring Basis
as of December 31, 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$50,761 $— $— $50,761 
U.S. government agency and U.S. government-sponsored enterprise debt securities— 814,319 — 814,319 
U.S. government agency and U.S. government-sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities— 1,153,770 — 1,153,770 
Residential mortgage-backed securities— 1,660,894 — 1,660,894 
Municipal securities— 396,073 — 396,073 
Non-agency mortgage-backed securities:
Commercial mortgage-backed securities— 239,842 — 239,842 
Residential mortgage-backed securities— 289,775 — 289,775 
Corporate debt securities— 405,968 — 405,968 
Foreign government bonds— 182,531 — 182,531 
Asset-backed securities— 63,231 — 63,231 
CLOs— 287,494 — 287,494 
Total AFS debt securities
$50,761 $5,493,897 $— $5,544,658 
Investments in tax credit and other investments:
Equity securities (1)
$22,548 $8,724 $— $31,272 
Total investments in tax credit and other investments
$22,548 $8,724 $— $31,272 
Derivative assets:
Interest rate contracts$— $489,132 $— $489,132 
Foreign exchange contracts— 30,300 — 30,300 
Credit contracts— 13 — 13 
Equity contracts— 585 273 858 
Commodity contracts— 82,451 — 82,451 
Gross derivative assets$— $602,481 $273 $602,754 
Netting adjustments (2)
$— $(101,512)$— $(101,512)
Net derivative assets$— $500,969 $273 $501,242 
Derivative liabilities:
Interest rate contracts$— $317,698 $— $317,698 
Foreign exchange contracts— 22,759 — 22,759 
Credit contracts— 206 — 206 
Commodity contracts— 84,165 — 84,165 
Gross derivative liabilities$— $424,828 $— $424,828 
Netting adjustments (2)
$— $(184,697)$— $(184,697)
Net derivative liabilities$— $240,131 $— $240,131 
(1)Equity securities consist of mutual funds with readily determinable fair values. The Company invested in these mutual funds for CRA purposes.
(2)Represents balance sheet netting of derivative assets and liabilities and related cash collateral under master netting agreements or similar agreements. See Note 5 — Derivatives to the Consolidated Financial Statements in this Form 10-Q for additional information.
Schedule of the carrying and fair value estimates per the fair value hierarchy of financial instruments measured on a nonrecurring basis
The following tables present the fair value estimates for financial instruments as of September 30, 2021 and December 31, 2020, excluding financial instruments recorded at fair value on a recurring basis as they are included in the tables presented elsewhere in this Note. The carrying amounts in the following tables are recorded on the Consolidated Balance Sheet under the indicated captions, except for accrued interest receivable and mortgage servicing rights included in Other assets, and accrued interest payable included in Accrued expenses and other liabilities. These financial assets and liabilities are measured at amortized cost basis on the Company’s Consolidated Balance Sheet.
($ in thousands)September 30, 2021
Carrying
Amount		Level 1Level 2Level 3Estimated
Fair Value
Financial assets:
Cash and cash equivalents$4,852,901 $4,852,901 $— $— $4,852,901 
Interest-bearing deposits with banks$855,162 $— $855,162 $— $855,162 
Resale agreements$2,596,142 $— $2,580,845 $— $2,580,845 
Restricted equity securities, at cost$77,200 $— $77,200 $— $77,200 
Loans held-for-sale$— $— $— $— $— 
Loans held-for-investment, net$39,921,301 $— $— $39,953,031 $39,953,031 
Mortgage servicing rights$5,620 $— $— $8,858 $8,858 
Accrued interest receivable$151,826 $— $151,826 $— $151,826 
Financial liabilities:
Demand, checking, savings and money market deposits$45,117,548 $— $45,117,548 $— $45,117,548 
Time deposits$8,238,642 $— $8,248,717 $— $8,248,717 
FHLB advances$248,898 $— $250,635 $— $250,635 
Repurchase agreements$300,000 $— $312,264 $— $312,264 
Long-term debt$147,586 $— $149,625 $— $149,625 
Accrued interest payable$11,275 $— $11,275 $— $11,275 
($ in thousands)December 31, 2020
Carrying
Amount		Level 1Level 2Level 3Estimated
Fair Value
Financial assets:
Cash and cash equivalents$4,017,971 $4,017,971 $— $— $4,017,971 
Interest-bearing deposits with banks$809,728 $— $809,728 $— $809,728 
Resale agreements$1,460,000 $— $1,464,635 $— $1,464,635 
Restricted equity securities, at cost$83,046 $— $83,046 $— $83,046 
Loans held-for-sale$1,788 $— $1,788 $— $1,788 
Loans held-for-investment, net$37,770,972 $— $— $37,803,940 $37,803,940 
Mortgage servicing rights$5,522 $— $— $8,435 $8,435 
Accrued interest receivable$150,140 $— $150,140 $— $150,140 
Financial liabilities:
Demand, checking, savings and money market deposits$35,862,403 $— $35,862,403 $— $35,862,403 
Time deposits$9,000,349 $— $9,016,884 $— $9,016,884 
Short-term borrowings$21,009 $— $21,009 $— $21,009 
FHLB advances$652,612 $— $659,631 $— $659,631 
Repurchase agreements$300,000 $— $317,850 $— $317,850 
Long-term debt$147,376 $— $150,131 $— $150,131 
Accrued interest payable$11,956 $— $11,956 $— $11,956 
Fair Value, Measurements, Recurring  
Fair Value, Financial Assets and Liabilities Measured on Recurring and Nonrecurring Basis  
Reconciliation of the beginning and ending balances for equity warrants measured at fair value on a recurring basis using significant unobservable inputs (Level 3) The following table provides a reconciliation of the beginning and ending balances of these equity contracts for the three and nine months ended September 30, 2021 and 2020:
($ in thousands)Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Equity Contracts
Beginning balance$223 $316 $273 $421 
Total (losses) gains included in earnings (1)
(9)(6)37 8,262 
Issuances12 — 12 — 
Settlements— — (96)— 
Transfers out of Level 3 (2)
(6)— (6)(8,373)
Ending balance$220 $310 $220 $310 
(1)Include both realized and unrealized gain (losses) recorded in Lending fees on the Consolidated Statement of Income. The unrealized (losses) gains were $(9) thousand and $(6) thousand for the three months ended September 30, 2021 and 2020, respectively, and $(38) thousand and $8.3 million for the nine months ended September 30, 2021 and 2020, respectively.
(2)During the three and nine months ended September 30, 2021, the Company transferred $6 thousand of equity contracts measured on a recurring basis out of Level 3 into Level 2 after the corresponding issuer of the equity contracts, which was previously a private company, completed its initial public offering and became a public company. In comparison, zero and $8.4 million were transferred out of Level 3 for the same reason during the three and nine months ended September 30, 2020, respectively.
Schedule of quantitative information about significant unobservable inputs used in the valuation of Level 3 fair value measurements
The following table presents quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements as of September 30, 2021 and December 31, 2020, respectively. The significant unobservable inputs presented in the table below are those that the Company considers significant to the fair value of the Level 3 assets. The Company considers unobservable inputs to be significant if, by their exclusion, the fair value of the Level 3 assets would be impacted by a predetermined percentage change.
($ in thousands)Fair Value
Measurements
(Level 3)		Valuation
Technique		Unobservable
Inputs		Range of Inputs
Weighted-
Average of Inputs (1)
September 30, 2021
Derivative assets:
Equity contracts$220 
Black-Scholes option pricing model
Equity volatility
45% — 54%
49%
Liquidity discount47%47%
December 31, 2020
Derivative assets:
Equity contracts$273 
Black-Scholes option pricing model
Equity volatility
46% — 61%
53%
Liquidity discount47%47%
(1)Weighted-average of inputs is calculated based on the fair value of equity contracts as of September 30, 2021 and December 31, 2020.
Fair Value, Measurements, Nonrecurring  
Fair Value, Financial Assets and Liabilities Measured on Recurring and Nonrecurring Basis  
Schedule of quantitative information about significant unobservable inputs used in the valuation of Level 3 fair value measurements
The following table presents the quantitative information about the significant unobservable inputs used in the valuation of Level 3 fair value measurements that are measured on a nonrecurring basis as of September 30, 2021 and December 31, 2020:
($ in thousands)Fair Value
Measurements
(Level 3)		Valuation
Techniques		Unobservable
Inputs		Range of 
Inputs
Weighted-
Average of Inputs (1)
September 30, 2021
Loans held-for-investment$89,442 Discounted cash flowsDiscount
4% — 15%
7%
$32,636 Fair value of collateralDiscount
15% — 81%
40%
$1,000 Fair value of collateralContract valueNMNM
$15,252 Fair value of propertySelling cost8%8%
Other nonperforming assets$699 Fair value of collateralContract valueNMNM
December 31, 2020
Loans held-for-investment$104,783 Discounted cash flowsDiscount
3% — 15%
11%
$22,207 Fair value of collateralDiscount
10% — 26%
15%
$15,879 Fair value of collateralContract valueNMNM
$46,993 Fair value of propertySelling cost
7% — 26%
10%
Investments in tax credit and other investments, net
$3,140 Individual analysis of each investmentExpected future tax benefits and distributionsNMNM
OREO$15,824 Fair value of propertySelling cost8%8%
NM — Not meaningful.
(1)Weighted-average of inputs is based on the relative fair value of the respective assets as of September 30, 2021 and December 31, 2020.
Schedule of carrying amounts of assets that were still held and had fair value changes measured on a nonrecurring basis
The following tables present the carrying amounts of assets that were still held and had fair value adjustments measured on a nonrecurring basis as of September 30, 2021 and December 31, 2020:
($ in thousands)Assets Measured at Fair Value on a Nonrecurring Basis
as of September 30, 2021
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:
Commercial and industrial (“C&I”)$— $— $123,233 $123,233 
Commercial real estate (“CRE”):
CRE— — 9,400 9,400 
Multifamily residential— — 2,958 2,958 
Total commercial— — 135,591 135,591 
Consumer:
Residential mortgage:
Home equity lines of credit (“HELOCs”)— — 2,739 2,739 
Total consumer— — 2,739 2,739 
Total loans held-for-investment$— $— $138,330 $138,330 
Other nonperforming assets$— $— $699 $699 
($ in thousands)Assets Measured at Fair Value on a Nonrecurring Basis
as of December 31, 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$— $— $143,331 $143,331 
CRE:
CRE— — 42,894 42,894 
Total commercial— — 186,225 186,225 
Consumer:
Residential mortgage:
HELOCs— — 1,146 1,146 
Other consumer— — 2,491 2,491 
Total consumer— — 3,637 3,637 
Total loans held-for-investment$— $— $189,862 $189,862 
Investments in tax credit and other investments, net
$— $— $3,140 $3,140 
OREO (1)
$— $— $15,824 $15,824 
(1)Amounts are included in Other assets on the Consolidated Balance Sheet and represent the carrying value of OREO properties that were written down subsequent to their initial classification as OREO.
Schedule of increase (decrease) in fair value of assets for which a fair value adjustment has been recognized, nonrecurring basis
The following table presents the (decrease) increase in fair value of certain assets held at the end of the respective reporting periods, for which a nonrecurring fair value adjustment was recognized during the periods presented:
($ in thousands)Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Loans held-for-investment (1):
Commercial:
C&I$(4,977)$(24,928)$(13,590)$(38,855)
CRE:
CRE(106)(15)(7,186)(292)
Multifamily residential16 — — — 
Total commercial(5,067)(24,943)(20,776)(39,147)
Consumer:
Residential mortgage:
HELOCs3 3 (6)(178)
Other consumer— — (2,491)2,491 
Total consumer3 3 (2,497)2,313 
Total loans held-for-investment$(5,064)$(24,940)$(23,273)$(36,834)
Investments in tax credit and other investments, net$— $— $877 $(583)
Other nonperforming assets$(43)$— $(3,933)$— 
(1)    Excludes loans fully charged off.