Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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
September 30, 2017	Inputs		Inputs		Inputs		Fair Value
Trading securities	$	3,526	$	672,885	$	—	$	676,411
Available for sale securities		20,983		744,559		—		765,542
Loans held for sale		—		1,828,275		31,545		1,859,820
Derivative assets		—		55,563		—		55,563
MSR asset		—		—		47,766		47,766
Securities sold, not yet purchased		85,471		88,038		—		173,509
Derivative liabilities		—		17,500		—		17,500


	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 September 30, 2017
Loans held for sale	$	30,037	$	8,881	$	(5,685)	$	(1,688)	$	—	$	31,545
MSR asset		43,580		5,939		—		(1,753)		—		47,766
Total	$	73,617	$	14,820	$	(5,685)	$	(3,441)	$	—	$	79,311

Nine months ended September 30, 2017
Loans held for sale	$	35,801	$	25,384	$	(23,108)	$	(6,532)	$	—	$	31,545
MSR asset		61,968		8,429		(17,499)		(5,132)		—		47,766
Total	$	97,769	$	33,813	$	(40,607)	$	(11,664)	$	—	$	79,311

Three months ended September 30, 2016
Trading securities	$	1	$	—	$	—	$	(1)	$	—	$	—
Loans held for sale		45,645		8,066		(8,686)		(2,448)		—		42,577
MSR asset		33,491		10,416		—		(156)		—		43,751
Total	$	79,137	$	18,482	$	(8,686)	$	(2,605)	$	—	$	86,328

Nine months ended September 30, 2016
Trading securities	$	1	$	—	$	—	$	(1)	$	—	$	—
Loans held for sale		25,880		51,105		(23,817)		(10,591)		—		42,577
MSR asset		52,285		20,309		(7,586)		(21,257)		—		43,751
Total	$	78,166	$	71,414	$	(31,403)	$	(31,849)	$	—	$	86,328

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 September 30, 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	90	-	95	%	(	95	%)

MSR asset	Discounted cash flows	Constant prepayment rate			10.85		%
		Discount rate			11.07		%

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 September 30, 2017						Three Months Ended September 30, 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	$	(4,443)	$	—	$	(4,443)	$	73	$	—	$	73
MSR asset		(1,753)		—		(1,753)		(156)		—		(156)


	Nine Months Ended September 30, 2017						Nine Months Ended September 30, 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	$	26,650	$	—	$	26,650	$	16,003	$	—	$	16,003
MSR asset		(5,132)		—		(5,132)		(21,257)		—		(21,257)

Schedule of significant unobservable inputs weighted average rates on Impaired Loans

At September 30, 2017, estimates for these significant unobservable inputs were as follows.


	PCI Loans
	PlainsCapital		FNB		SWS
	Merger		Transaction		Merger
Weighted average default rate	64	%	45	%	59	%
Weighted average loss severity rate	66	%	18	%	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				Total Gains (Losses) for the
	Level 1		Level 2		Level 3		Total		Three Months Ended September 30,				Nine Months Ended September 30,
September 30, 2017	Inputs		Inputs		Inputs		Fair Value		2017		2016		2017		2016
Non-covered impaired loans	$	—	$	—	$	42,953	$	42,953	$	793	$	1,149	$	323	$	1,284
Covered impaired loans		—		—		58,490		58,490		(787)		725		(1,764)		815
Non-covered other real estate owned		—		3,512		—		3,512		(135)		(427)		(258)		(439)
Covered other real estate owned		—		6,969		—		6,969		(388)		(2,552)		(2,523)		(14,284)

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
September 30, 2017	Amount		Inputs		Inputs		Inputs		Total
Financial assets:
Cash and cash equivalents	$	354,969	$	354,969	$	—	$	—	$	354,969
Securities purchased under agreements to resell		134,654		—		134,654		—		134,654
Assets segregated for regulatory purposes		207,336		207,336		—		—		207,336
Held to maturity securities		368,031		—		364,122		—		364,122
Loans held for sale		79,501		—		79,501		—		79,501
Non-covered loans, net		6,090,034		—		485,604		5,802,891		6,288,495
Covered loans, net		188,269		—		—		284,424		284,424
Broker-dealer and clearing organization receivables		1,672,123		—		1,672,123		—		1,672,123
FDIC indemnification asset		33,143		—		—		22,866		22,866
Other assets		64,907		—		59,300		5,607		64,907

Financial liabilities:
Deposits		7,663,447		—		7,662,392		—		7,662,392
Broker-dealer and clearing organization payables		1,517,698		—		1,517,698		—		1,517,698
Short-term borrowings		1,477,201		—		1,477,201		—		1,477,201
Debt		367,208		—		364,731		—		364,731
Other liabilities		6,630		—		6,630		—		6,630


			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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