Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2017

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, 2017	Inputs		Inputs		Inputs		Fair Value
Trading securities	$	3,640	$	369,660	$	—	$	373,300
Available for sale securities		20,263		735,283		—		755,546
Loans held for sale		—		1,244,018		30,214		1,274,232
Derivative assets		—		72,906		—		72,906
MSR asset		—		—		45,573		45,573
Securities sold, not yet purchased		75,047		69,146		—		144,193
Derivative liabilities		—		37,024		—		37,024


	Level 1		Level 2		Level 3			Total
December 31, 2016	Inputs		Inputs		Inputs			Fair Value
Trading securities	$	9,481	$	256,053	$	—	$	265,534
Available for sale securities		19,840		578,167		—		598,007
Loans held for sale		—		1,712,697		35,801		1,748,498
Derivative assets		—		57,036		—		57,036
MSR asset		—		—		61,968		61,968
Securities sold, not yet purchased		60,715		93,174		—		153,889
Derivative liabilities		—		35,737		—		35,737

Rollforward 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, 2017
Loans held for sale	$	35,801	$	7,828	$	(10,701)	$	(2,714)	$	—	$	30,214
MSR asset		61,968		1,224		(17,499)		(120)		—		45,573
Total	$	97,769	$	9,052	$	(28,200)	$	(2,834)	$	—	$	75,787

Three months ended March 31, 2016
Trading securities	$	1	$	—	$	—	$	—	$	—	$	1
Loans held for sale		25,880		23,236		(4,237)		(4,334)		—		40,545
MSR asset		52,285		1,639		—		(14,061)		—		39,863
Total	$	78,166	$	24,875	$	(4,237)	$	(18,395)	$	—	$	80,409

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 March 31, 2017, the significant unobservable inputs used in the fair value measurements were as follows.


			Range
Financial instrument	Valuation Technique	Unobservable Inputs	(Weighted-Average)
Loans held for sale	Discounted cash flows / Market comparable	Projected price	88	-	97	%	(	96	%)

MSR asset	Discounted cash flows	Constant prepayment rate			10.45		%
		Discount rate			11.14		%

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

The following tables present those changes in fair value of instruments recognized in the consolidated statements of operations that are accounted for under the Fair Value Option (in thousands).


	Three Months Ended March 31, 2017						Three Months Ended March 31, 2016
			Other		Total				Other		Total
	Net		Noninterest		Changes in		Net		Noninterest		Changes in
	Gains (Losses)		Income		Fair Value		Gains (Losses)		Income		Fair Value
Loans held for sale	$	8,862	$	—	$	8,862	$	447	$	—	$	447
MSR asset		(120)		—		(120)		(14,061)		—		(14,061)

Schedule of significant unobservable inputs weighted average rates on Impaired Loans

At March 31, 2017, estimates for these significant unobservable inputs were as follows.


	PCI Loans
	PlainsCapital		FNB		SWS
	Merger		Transaction		Merger
Weighted average default rate	53	%	49	%	55	%
Weighted average loss severity rate	61	%	23	%	29	%
Weighted average prepayment speed	0	%	8	%	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, 2017	Inputs		Inputs		Inputs		Fair Value		2017		2016
Non-covered impaired loans	$	—	$	—	$	47,054	$	47,054	$	(196)	$	(33)
Covered impaired loans		—		—		41,777		41,777		(366)		332
Non-covered other real estate owned		—		2,894		—		2,894		(15)		—
Covered other real estate owned		—		3,762		—		3,762		(1,192)		(9,765)

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, 2017	Amount		Inputs		Inputs		Inputs		Total
Financial assets:
Cash and cash equivalents	$	570,332	$	570,332	$	—	$	—	$	570,332
Securities purchased under agreements to resell		113,228		—		113,228		—		113,228
Assets segregated for regulatory purposes		166,395		166,395		—		—		166,395
Held to maturity securities		337,357		—		331,387		—		331,387
Loans held for sale		55,261		—		55,261		—		55,261
Non-covered loans, net		5,728,696		—		465,209		5,414,146		5,879,355
Covered loans, net		234,681		—		—		344,113		344,113
Broker-dealer and clearing organization receivables		1,574,031		—		1,574,031		—		1,574,031
FDIC indemnification asset		47,940		—		—		36,308		36,308
Other assets		63,558		—		57,983		5,575		63,558

Financial liabilities:
Deposits		7,329,862		—		7,323,110		—		7,323,110
Broker-dealer and clearing organization payables		1,437,548		—		1,437,548		—		1,437,548
Short-term borrowings		753,777		—		753,777		—		753,777
Debt		391,713		—		385,681		—		385,681
Other liabilities		5,436		—		5,436		—		5,436


			Estimated Fair Value
	Carrying		Level 1		Level 2		Level 3
December 31, 2016	Amount		Inputs		Inputs		Inputs		Total
Financial assets:
Cash and cash equivalents	$	690,764	$	690,764	$	—	$	—	$	690,764
Securities purchased under agreements to resell		89,430		—		89,430		—		89,430
Assets segregated for regulatory purposes		180,993		180,993		—		—		180,993
Held to maturity securities		351,831		—		345,088		—		345,088
Loans held for sale		46,965		—		46,965		—		46,965
Non-covered loans, net		5,789,313		—		502,077		5,459,975		5,962,052
Covered loans, net		255,714		—		—		367,444		367,444
Broker-dealer and clearing organization receivables		1,497,741		—		1,497,741		—		1,497,741
FDIC indemnification asset		71,313		—		—		60,173		60,173
Other assets		62,904		—		58,697		4,207		62,904

Financial liabilities:
Deposits		7,063,811		—		7,058,837		—		7,058,837
Broker-dealer and clearing organization payables		1,347,128		—		1,347,128		—		1,347,128
Short-term borrowings		1,417,289		—		1,417,289		—		1,417,289
Debt		384,924		—		378,822		—		378,822
Other liabilities		3,708		—		3,708		—		3,708

- 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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