Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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
June 30, 2020	Inputs		Inputs		Inputs		Fair Value
Trading securities	$	50,771	$	597,266	$	—	$	648,037
Available for sale securities		—		1,091,348		—		1,091,348
Equity securities		122		—		—		122
Loans held for sale		—		2,357,115		91,936		2,449,051
Derivative assets		—		148,573		—		148,573
MSR asset		—		—		81,264		81,264
Securities sold, not yet purchased		24,027		31,313		—		55,340
Derivative liabilities		—		58,436		—		58,436

	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 June 30, 2020
Loans held for sale	$	79,588	$	34,339	$	(26,768)	$	2,746	$	2,031	$	—	$	91,936
MSR asset		30,299		59,440		—		—		(8,475)		—		81,264
Total	$	109,887	$	93,779	$	(26,768)	$	2,746	$	(6,444)	$	—	$	173,200
Six months ended June 30, 2020
Loans held for sale	$	67,195	$	48,623	$	(30,943)	$	8,967	$	(1,906)	$	—	$	91,936
MSR asset		55,504		63,915		(18,650)		—		(19,505)		—		81,264
Total	$	122,699	$	112,538	$	(49,593)	$	8,967	$	(21,411)	$	—	$	173,200
Three months ended June 30, 2019
Loans held for sale	$	57,844	$	14,053	$	(11,108)	$	(612)	$	(3,378)	$	—	$	56,799
MSR asset		62,049		2,547		—		—		(10,901)		—		53,695
Total	$	119,893	$	16,600	$	(11,108)	$	(612)	$	(14,279)	$	—	$	110,494
Six months ended June 30, 2019
Loans held for sale	$	50,464	$	29,480	$	(18,084)		425	$	(5,486)	$	—	$	56,799
MSR asset		66,102		4,408		—		—		(16,815)		—		53,695
Total	$	116,566	$	33,888	$	(18,084)	$	425	$	(22,301)	$	—	$	110,494

Schedule of significant unobservable inputs used in the fair value measurements

			Range (Weighted-Average)
			June 30,							December 31,
Financial instrument	Valuation Technique	Unobservable Inputs	2020							2019
Loans held for sale	Discounted cash flows / Market comparable	Projected price	91	-	95	%	(	94	%)	92	-	96	%	(	95	%)
MSR asset	Discounted cash flows	Constant prepayment rate			13.45		%					13.16		%
		Discount rate			14.62		%					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 June 30, 2020						Three Months Ended June 30, 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	$	24,499	$	—	$	24,499	$	17,179	$	—	$	17,179
MSR asset		(8,475)		—		(8,475)		(10,901)		—		(10,901)

	Six Months Ended June 30, 2020						Six Months Ended June 30, 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	$	58,478	$	—	$	58,478	$	3,855	$	—	$	3,855
MSR asset		(19,505)		—		(19,505)		(16,815)		—		(16,815)

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
June 30, 2020	Amount		Inputs		Inputs		Inputs		Total
Financial assets:
Cash and cash equivalents	$	1,655,877	$	1,655,877	$	—	$	—	$	1,655,877
Assets segregated for regulatory purposes		194,626		194,626		—		—		194,626
Securities purchased under agreements to resell		161,457		—		161,457		—		161,457
Held to maturity securities		343,198		—		359,542		—		359,542
Loans held for sale		143,256		—		143,256		—		143,256
Loans held for investment, net		7,693,521		—		422,891		7,508,015		7,930,906
Broker-dealer and clearing organization receivables		1,222,627		—		1,222,627		—		1,222,627
Other assets		72,574		—		70,461		2,113		72,574
Financial liabilities:
Deposits		11,649,598		—		11,668,575		—		11,668,575
Broker-dealer and clearing organization payables		1,158,628		—		1,158,628		—		1,158,628
Short-term borrowings		720,164		—		720,164		—		720,164
Debt		517,170		—		517,170		—		517,170
Other liabilities		9,603		—		9,603		—		9,603

			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 June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Balance, beginning of period	$	19,088	$	20,477	$	19,771	$	20,376
Additional investments		—		—		—		—
Upward adjustments		1,525		101		1,631		202
Impairments and downward adjustments		—		(672)		(789)		(672)
Dispositions		—		—		—		—
Balance, end of period	$	20,613	$	19,906	$	20,613	$	19,906