Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Schedule of information regarding financial assets and liabilities measured at fair value on a recurring basis

The following tables present information regarding financial assets and liabilities measured at fair value on a recurring basis (in thousands).

	Level 1		Level 2		Level 3		Total
March 31, 2015	Inputs		Inputs		Inputs		Fair Value
Trading securities	$	40	$	314,181	$	5,932	$	320,153
Available for sale securities	14,070		845,142		—		859,212
Loans held for sale	—		1,168,757		19,495		1,188,252
Derivative assets	—		49,649		—		49,649
MSR asset	—		—		31,648		31,648
Trading liabilities	—		139,481		—		139,481
Derivative liabilities	—		22,048		—		22,048

	Level 1		Level 2		Level 3		Total
December 31, 2014	Inputs		Inputs		Inputs		Fair Value
Trading securities	$	39	$	65,678	$	—	$	65,717
Available for sale securities	13,762		911,773		—		925,535
Loans held for sale	—		1,263,135		9,017		1,272,152
Derivative assets	—		23,805		—		23,805
MSR asset	—		—		36,155		36,155
Investment in SWS common stock	70,282		—		—		70,282
Trading liabilities	—		48		—		48
Derivative liabilities	—		12,849		—		12,849

Roll forward for financial instruments measured at fair value using Level 3 inputs

The following tables include a rollforward for those financial instruments measured at fair value using Level 3 inputs (in thousands).

									Total Gains or Losses
									(Realized or Unrealized)
	Balance at											Included in Other
	Beginning of			Purchases/		Sales/			Included in			Comprehensive		Balance at
	Period			Additions		Reductions			Net Income			Income (Loss)		End of Period
Three months ended March 31, 2015
Trading securities	$	—		$	7,301	$	—		$	(1,369	)	$	—	$	5,932
Loans held for sale	9,017			11,136		(271		)	(387		)	—		19,495
Mortgage servicing rights asset	36,155			2,690		—			(7,197		)	—		31,648
Total	$	45,172		$	21,127	$	(271	)	$	(8,953	)	$	—	$	57,075

Three months ended March 31, 2014
Available for sale securities	$	60,053		$	—	$	—		$	593		$	3,452	$	64,098
Loans held for sale	27,729			4,900		(5,594		)	(209		)	—		26,826
Mortgage servicing rights asset	20,149			7,432		—			2,358			—		29,939
Derivative liabilities	(5,600		)	—		—			(350		)	—		(5,950		)
Total	$	102,331		$	12,332	$	(5,594	)	$	2,392		$	3,452	$	114,913

Schedule of significant unobservable inputs used in the fair value measurements

			Range (Weighted-
Financial instrument	Valuation Technique	Unobservable Input	Average)
Trading securities	Discounted cash flow	Discount rate	8 - 17% (10%)

Loans held for sale	Discounted cash flow / Market comparable	Projected price	90 - 94% (93%)

Mortgage servicing rights asset	Discounted cash flow	Constant prepayment rate	14.95%
		Discount rate	10.98%

Schedule of changes in fair value for instruments reported at fair value under the Fair Value Option

The following table presents the changes in fair value for instruments that are reported at fair value under the Fair Value Option (in thousands).

	Three Months Ended March 31, 2015								Three Months Ended March 31, 2014
				Other		Total					Other		Total
	Net			Noninterest		Changes in			Net		Noninterest		Changes in
	Losses			Income		Fair Value			Gains		Income		Fair Value
Loans held for sale	$	(6,695	)	$	—	$	(6,695	)	$	4,518	$	—	$	4,518
Mortgage servicing rights asset	(7,197		)	—		(7,197		)	2,358		—		2,358

Schedule of significant unobservable inputs weighted average rates on Impaired Loans

At March 31, 2015, estimates for these significant unobservable inputs were as follows.

	PCI Loans
	PlainsCapital		FNB		SWS
	Merger		Transaction		Merger
Weighted average default rate	47	%	60	%	52	%
Weighted average loss severity rate	50	%	39	%	37	%
Weighted average prepayment speed	0	%	4	%	0	%

Schedule of information regarding certain assets and liabilities measured at fair value on a non-recurring basis for which a change in fair value has been recorded during reporting periods subsequent to initial recognition

The following table presents information regarding certain assets and liabilities measured at fair value on a non-recurring basis for which a change in fair value has been recorded during reporting periods subsequent to initial recognition (in thousands).

									Total Gains (Losses) for the
	Level 1		Level 2		Level 3		Total		Three Months Ended March 31,
March 31, 2015	Inputs		Inputs		Inputs		Fair Value		2015			2014
Non-covered impaired loans	$	—	$	—	$	23,605	$	23,605	$	349		$	(215	)
Covered impaired loans	—		—		68,195		68,195		3,218			(1,691		)
Non-covered other real estate owned	—		382		—		382		(28		)	(102		)
Covered other real estate owned	—		3,443		—		3,443		(950		)	(431		)

Schedule of carrying values and estimated fair values of financial instruments

The following tables present the carrying values and estimated fair values of financial instruments not measured at fair value on either a recurring or non-recurring basis (in thousands).

			Estimated Fair Value
	Carrying		Level 1		Level 2		Level 3
March 31, 2015	Amount		Inputs		Inputs		Inputs		Total
Financial assets:
Cash and cash equivalents	$	708,533	$	708,533	$	—	$	—	$	708,533
Held to maturity securities	183,792		—		186,032		—		186,032
Loans held for sale	27,056		—		27,056		—		27,056
Non-covered loans, net	4,795,322		—		608,554		4,605,859		5,214,413
Covered loans, net	550,626		—		—		704,848		704,848
Broker-dealer and clearing organization receivables	2,222,517		—		2,222,517		—		2,222,517
FDIC indemnification asset	107,567		—		—		107,567		107,567
Other assets	61,362		—		45,784		15,578		61,362

Financial liabilities:
Deposits	7,129,277		—		7,138,613		—		7,138,613
Broker-dealer and clearing organization payables	1,951,040		—		1,951,040		—		1,951,040
Short-term borrowings	999,476		—		999,476		—		999,476
Debt	175,694		—		169,024		—		169,024
Other liabilities	2,095		—		2,095		—		2,095

			Estimated Fair Value
	Carrying		Level 1		Level 2		Level 3
December 31, 2014	Amount		Inputs		Inputs		Inputs		Total
Financial assets:
Cash and cash equivalents	$	813,075	$	813,075	$	—	$	—	$	813,075
Held to maturity securities	118,209		—		118,345		—		118,345
Loans held for sale	37,541		—		37,541		—		37,541
Non-covered loans, net	3,883,435		—		378,425		3,528,769		3,907,194
Covered loans, net	638,029		—		—		767,751		767,751
Broker-dealer and clearing organization receivables	167,884		—		167,884		—		167,884
FDIC indemnification asset	130,437		—		—		130,437		130,437
Other assets	59,432		—		43,937		15,495		59,432

Financial liabilities:
Deposits	6,369,892		—		6,365,555		—		6,365,555
Broker-dealer and clearing organization payables	179,042		—		179,042		—		179,042
Short-term borrowings	762,696		—		762,696		—		762,696
Debt	123,696		—		117,028		—		117,028
Other liabilities	2,144		—		2,144		—		2,144

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

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