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Fair Value Disclosures (Tables)
 3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Schedule of assets and liabilities measured at fair value
Assets and liabilities measured at fair value are as follows:
 
Fair Value Measurements Using
(in thousands)
Level 1
 
Level 2
 
Level 3
March 31, 2020
 
 
 
 
 
Available-for-sale debt securities:(1)
 
 
 
 
 
Residential mortgage-backed securities
$
—

 
$
4,688

 
$
—

Tax-exempt asset-backed securities
—

 
—

 
191,474

CRT securities
—

 
—

 
8,015

Equity securities(1)(2)
17,368

 
7,239

 
—

Loans held for sale(3)
—

 
767,370

 
6,694

Loans held for investment(4)
—

 
—

 
121,037

Derivative assets(5)
—

 
125,913

 
—

Derivative liabilities(5)
—

 
126,459

 
—

Non-qualified deferred compensation plan liabilities(6)
17,668

 
—

 
—

 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
Available-for-sale debt securities:(1)
 
 
 
 
 
Residential mortgage-backed securities
$
—

 
$
5,266

 
$
—

Tax-exempt asset-backed securities
—

 
—

 
197,027

CRT securities
—

 
—

 
11,964

Equity securities(1)(2)
18,484

 
7,130

 
—

Loans held for sale(3)
—

 
2,564,281

 
7,043

Loans held for investment(4)
—

 
—

 
109,585

Derivative assets(5)
—

 
48,684

 
—

Derivative liabilities(5)
—

 
51,310

 
—

Non-qualified deferred compensation plan liabilities(6)
18,484

 
—

 
—


(1)
Securities are measured at fair value on a recurring basis, generally monthly, except for tax-exempt asset-backed securities and CRT securities which are measured quarterly.
(2)
Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan.
(3)
Loans held for sale purchased through our MCA program are measured at fair value on a recurring basis, generally monthly.
(4)
Includes certain collateral-dependent loans held for investment for which a specific allocation of the allowance for credit losses is based upon the fair value of the loan’s underlying collateral. These loans held for investment are measured on a nonrecurring basis, generally annually or more often as warranted by market and economic conditions.
(5)
Derivative assets and liabilities are measured at fair value on a recurring basis, generally quarterly.
(6)
Non-qualified deferred compensation plan liabilities represent the fair value of the obligation to the employee, which generally corresponds to the fair value of the invested assets, and are measured at fair value on a recurring basis, generally monthly.
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation
The following table presents a reconciliation of the level 3 fair value category measured at fair value on a recurring basis:
 
 
 
 
 
 
 
Net Realized/Unrealized Gains (Losses)
 
 
(in thousands)
Balance at Beginning of Period
 
Purchases / Additions
 
Sales / Reductions
 
Realized
 
Unrealized
 
Balance at End of Period
Three months ended March 31, 2020
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale debt securities:(1)
 
 
 
 
 
 
 
 
 
 
 
Tax-exempt asset-backed securities
$
197,027

 
$
—

 
$
(4,353
)
 
$
—

 
$
(1,200
)
 
$
191,474

CRT securities
$
11,964

 
$
—

 
$
—

 
$
—

 
$
(3,949
)
 
$
8,015

Loans held for sale(2)
$
7,043

 
$
213

 
$
(684
)
 
$
28

 
$
94

 
$
6,694

Three months ended March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale debt securities:(1)
 
 
 
 
 
 
 
 
 
 
 
Tax-exempt asset-backed securities
$
95,804

 
$
92,010

 
$
—

 
$
—

 
$
4,030

 
$
191,844

CRT securities
$
—

 
$
15,044

 
$
—

 
$
(331
)
 
$
(4,076
)
 
$
10,637

Loans held for sale(2)
$
16,415

 
$
—

 
$
(3,878
)
 
$
216

 
$
293

 
$
13,046

(1)
Unrealized gains/(losses) on available-for-sale debt securities are recorded in AOCI and all relate to assets held at March 31, 2020. Realized gains/(losses) are recorded in other non-interest income.
(2)
Realized and unrealized gains/(losses) on loans held for sale are recorded in gain/(loss) on sale of loans held for sale.
Summary of the carrying amounts and estimated fair values of financial instruments
A summary of the carrying amounts and estimated fair values of financial instruments is as follows:
 
March 31, 2020
 
December 31, 2019
(in thousands)
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
Financial assets:
 
 
 
 
 
 
 
   Level 1 inputs:
 
 
 
 
 
 
 
Cash and cash equivalents
$
9,660,575

 
$
9,660,575

 
$
4,425,583

 
$
4,425,583

Investment securities
17,368

 
17,368

 
18,484

 
18,484

   Level 2 inputs:
 
 
 
 
 
 
 
Investment securities
11,927

 
11,927

 
12,396

 
12,396

Loans held for sale
767,370

 
767,370

 
2,570,091

 
2,570,091

Derivative assets
125,913

 
125,913

 
48,684

 
48,684

   Level 3 inputs:
 
 
 
 
 
 
 
Investment securities
199,489

 
199,489

 
208,991

 
208,991

Loans held for sale
6,694

 
6,694

 
7,043

 
7,043

Loans held for investment, net
24,205,424

 
24,170,104

 
24,451,215

 
24,478,586

Financial liabilities:
 
 
 
 
 
 
 
   Level 2 inputs:
 
 
 
 
 
 
 
Federal funds purchased
289,165

 
289,165

 
132,270

 
132,270

Customer repurchase agreements
6,102

 
6,102

 
9,496

 
9,496

Other borrowings
4,900,000

 
4,900,000

 
2,400,000

 
2,400,000

Subordinated notes
282,219

 
281,793

 
282,129

 
292,302

Trust preferred subordinated debentures
113,406

 
113,406

 
113,406

 
113,406

Derivative liabilities
126,459

 
126,459

 
51,310

 
51,310

   Level 3 inputs:
 
 
 
 
 
 
 
Deposits
27,134,263

 
30,302,466

 
26,478,593

 
29,357,121