Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Measurements

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, 2020	Inputs		Inputs		Inputs		Fair Value
Trading securities	$	1,485	$	392,096	$	—	$	393,581
Available for sale securities		—		972,318		—		972,318
Equity securities		107		—		—		107
Loans held for sale		—		2,010,381		79,588		2,089,969
Derivative assets		—		192,729		—		192,729
MSR asset		—		—		30,299		30,299
Securities sold, not yet purchased		11,333		11,435		—		22,768
Derivative liabilities		—		171,210		—		171,210

	Level 1		Level 2		Level 3			Total
December 31, 2019	Inputs		Inputs		Inputs			Fair Value
Trading securities	$	—	$	689,576	$	—	$	689,576
Available for sale securities		—		911,493		—		911,493
Equity securities		166		—		—		166
Loans held for sale		—		1,868,518		67,195		1,935,713
Derivative assets		—		33,129		—		33,129
MSR asset		—		—		55,504		55,504
Securities sold, not yet purchased		29,080		14,737		—		43,817
Derivative liabilities		—		17,140		—		17,140

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/		Transfers to		Included in		Comprehensive		Balance at
	Period		Additions		Reductions		(from) Level 3		Net Income		Income (Loss)		End of Period
Three months ended March 31, 2020
Loans held for sale	$	67,195	$	14,285	$	(4,175)	$	6,220	$	(3,937)	$	—	$	79,588
MSR asset		55,504		4,475		(18,650)		—		(11,030)		—		30,299
Total	$	122,699	$	18,760	$	(22,825)	$	6,220	$	(14,967)	$	—	$	109,887
Three months ended March 31, 2019
Loans held for sale	$	50,464	$	15,427	$	(6,976)	$	1,037	$	(2,108)	$	—	$	57,844
MSR asset		66,102		1,861		—		—		(5,914)		—		62,049
Total	$	116,566	$	17,288	$	(6,976)	$	1,037	$	(8,022)	$	—	$	119,893

Schedule of significant unobservable inputs used in the fair value measurements

			Range (Weighted-Average)
			March 31,							December 31,
Financial instrument	Valuation Technique	Unobservable Inputs	2020							2019
Loans held for sale	Discounted cash flows / Market comparable	Projected price	90	-	94	%	(	93	%)	92	-	96	%	(	95	%)
MSR asset	Discounted cash flows	Constant prepayment rate			16.98		%					13.16		%
		Discount rate			11.01		%					11.14		%

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

The following table presents 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, 2020						Three Months Ended March 31, 2019
			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	$	33,979	$	—	$	33,979	$	(13,324)	$	—	$	(13,324)
MSR asset		(11,030)		—		(11,030)		(5,914)		—		(5,914)

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, 2020	Amount		Inputs		Inputs		Inputs		Total
Financial assets:
Cash and cash equivalents	$	524,771	$	524,771	$	—	$	—	$	524,771
Assets segregated for regulatory purposes		178,805		178,805		—		—		178,805
Securities purchased under agreements to resell		23,356		—		23,356		—		23,356
Held to maturity securities		355,110		—		369,614		—		369,614
Loans held for sale		343,438		—		343,438		—		343,438
Loans held for investment, net		7,238,511		—		506,250		6,845,844		7,352,094
Broker-dealer and clearing organization receivables		1,838,789		—		1,838,789		—		1,838,789
Other assets		73,118		—		70,544		2,574		73,118
Financial liabilities:
Deposits		9,947,489		—		9,962,915		—		9,962,915
Broker-dealer and clearing organization payables		1,259,181		—		1,259,181		—		1,259,181
Short-term borrowings		1,329,948		—		1,329,948		—		1,329,948
Debt		311,054		—		311,054		—		311,054
Other liabilities		6,376		—		6,376		—		6,376

			Estimated Fair Value
	Carrying		Level 1		Level 2		Level 3
December 31, 2019	Amount		Inputs		Inputs		Inputs		Total
Financial assets:
Cash and cash equivalents	$	434,020	$	434,020	$	—	$	—	$	434,020
Assets segregated for regulatory purposes		157,436		157,436		—		—		157,436
Securities purchased under agreements to resell		59,031		—		59,031		—		59,031
Held to maturity securities		386,326		—		388,930		—		388,930
Loans held for sale		170,648		—		170,648		—		170,648
Loans held for investment, net		7,320,264		—		576,527		6,990,706		7,567,233
Broker-dealer and clearing organization receivables		1,780,280		—		1,780,280		—		1,780,280
Other assets		71,040		—		69,580		1,460		71,040
Financial liabilities:
Deposits		9,032,214		—		9,032,496		—		9,032,496
Broker-dealer and clearing organization payables		1,605,518		—		1,605,518		—		1,605,518
Short-term borrowings		1,424,010		—		1,424,010		—		1,424,010
Debt		323,281		—		323,281		—		323,281
Other liabilities		8,340		—		8,340		—		8,340

Schedule of adjustments to the carrying value of these investments

The following table presents the adjustments to the carrying value of these investments during the periods presented (in thousands).

	Three Months Ended March 31,
	2020		2019
Balance, beginning of period	$	19,771	$	20,376
Additional investments		—		—
Upward adjustments		106		101
Impairments and downward adjustments		(789)		—
Dispositions		—		—
Balance, end of period	$	19,088	$	20,477