Fair Value Measurements (Tables)

12 Months Ended

Dec. 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
December 31, 2015	Inputs		Inputs		Inputs		Fair Value
Trading securities	$	21,807	$	192,338	$	1	$	214,146
Available for sale securities		17,409		656,297		—		673,706
Loans held for sale		—		1,434,955		25,880		1,460,835
Derivative assets		—		35,676		—		35,676
MSR asset		—		—		52,285		52,285
Securities sold, not yet purchased		27,648		102,396		—		130,044
Derivative liabilities		—		5,426		—		5,426


	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
Securities sold, not yet purchased		—		48		—		48
Derivative liabilities		—		12,849		—		12,849

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

The following table includes 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/		Transfers into		Included in		Comprehensive		Balance at
	Year		Additions		Reductions		Level 3		Net Income		Income (Loss)		End of Year
Year ended December 31, 2015
Trading securities	$	—	$	7,301	$	(3,397)	$	—	$	(3,903)	$	—	$	1
Loans held for sale		9,017		52,800		(25,514)		—		(10,423)		—		25,880
MSR asset		36,155		24,974		—		—		(8,844)		—		52,285
Total	$	45,172	$	85,075	$	(28,911)	$	—	$	(23,170)	$	—	$	78,166

Year ended December 31, 2014
Available for sale securities	$	60,053	$	—	$	(61,283)	$	—	$	1,848	$	(618)	$	—
Loans held for sale		27,729		24,851		(44,597)		—		1,034		—		9,017
MSR asset		20,149		35,056		(11,387)		—		(7,663)		—		36,155
Derivative liabilities		(5,600)		(177)		6,827		—		(1,050)		—		—
Total	$	102,331	$	59,730	$	(110,440)	$	—	$	(5,831)	$	(618)	$	45,172

Year ended December 31, 2013
Available for sale securities	$	56,277	$	—	$	—	$	—	$	2,166	$	1,610	$	60,053
Loans held for sale		—		—		—		27,729		—		—		27,729
MSR asset		2,080		13,886		—		—		4,183		—		20,149
Derivative liabilities		(4,490)		—		—		—		(1,110)		—		(5,600)
Total	$	53,867	$	13,886	$	—	$	27,729	$	5,239	$	1,610	$	102,331

Schedule of significant unobservable inputs used in the fair value measurements

For Level 3 financial instruments measured at fair value on a recurring basis at December 31, 2015, the significant unobservable inputs used in the fair value measurements were as follows.


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

Loans held for sale	Discounted cash flow / Market comparable	Projected price	93	-	95	%	(	95	%)

MSR asset	Discounted cash flow	Constant prepayment rate			11.51		%
		Discount rate			10.92		%

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).


	Year Ended December 31, 2015						Year Ended December 31, 2014						Year Ended December 31, 2013
			Other		Total				Other		Total				Other		Total
	Net		Noninterest		Changes in		Net		Noninterest		Changes in		Net		Noninterest		Changes in
	Gains (Losses)		Income		Fair Value		Gains (Losses)		Income		Fair Value		Gains (Losses)		Income		Fair Value
Loans held for sale	$	(2,970)	$	—	$	(2,970)	$	31,805	$	—	$	31,805	$	(19,353)	$	—	$	(19,353)
Investment in SWS common stock		—		—		—		—		5,985		5,985		—		—		—
MSR asset		(8,844)		—		(8,844)		(7,663)		—		(7,663)		4,183		—		4,183
Time deposits		—		—		—		—		—		—		—		12		12

Schedule of significant unobservable inputs weighted average rates on Impaired Loans

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


	PCI Loans
	PlainsCapital		FNB		SWS
	Merger		Transaction		Merger
Weighted average default rate	57	%	56	%	48	%
Weighted average loss severity rate	49	%	35	%	31	%
Weighted average prepayment speed	0	%	6	%	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		Year Ended December 31,
December 31, 2015	Inputs		Inputs		Inputs		Fair Value		2015		2014		2013
Non-covered impaired loans	$	—	$	—	$	49,277	$	49,277	$	(126)	$	(2,182)	$	(3,558)
Covered impaired loans		—		—		58,135		58,135		3,034		(3,652)		—
Non-covered other real estate owned		—		—		—		—		(28)		(372)		430
Covered other real estate owned		—		36,024		—		36,024		(16,555)		(19,672)		—

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
December 31, 2015	Amount		Inputs		Inputs		Inputs		Total
Financial assets:
Cash and cash equivalents	$	669,445	$	669,445	$	—	$	—	$	669,445
Securities purchased under agreements to resell		105,660		—		105,660		—		105,660
Assets segregated for regulatory purposes		158,613		158,613		—		—		158,613
Held to maturity securities		332,022		—		331,468		—		331,468
Loans held for sale		72,843		—		72,843		—		72,843
Non-covered loans, net		5,174,625		—		602,968		4,600,406		5,203,374
Covered loans, net		378,762		—		—		527,201		527,201
Broker-dealer and clearing organization receivables		1,362,499		—		1,362,499		—		1,362,499
FDIC indemnification asset		91,648		—		—		91,648		91,648
Other assets		68,786		—		53,214		15,572		68,786

Financial liabilities:
Deposits		6,952,683		—		6,955,919		—		6,955,919
Broker-dealer and clearing organization payables		1,338,305		—		1,338,305		—		1,338,305
Short-term borrowings		947,373		—		947,373		—		947,373
Debt		305,728		—		299,257		—		299,257
Other liabilities		3,699		—		3,699		—		3,699


			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
Assets segregated for regulatory purposes		76,013		76,013		—		—		76,013
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 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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