Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

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, 2022	Inputs		Inputs		Inputs		Fair Value
Trading securities	$	8,594	$	584,679	$	—	$	593,273
Available for sale securities		—		1,562,222		—		1,562,222
Equity securities		197		—		—		197
Loans held for sale		—		1,330,651		41,732		1,372,383
Loans held for investment		—		—		9,027		9,027
Derivative assets		—		82,918		—		82,918
MSR asset		—		—		121,688		121,688
Securities sold, not yet purchased		68,543		67,425		—		135,968
Derivative liabilities		—		26,661		—		26,661

	Level 1		Level 2		Level 3			Total
December 31, 2021	Inputs		Inputs		Inputs			Fair Value
Trading securities	$	8,628	$	639,370	$	—	$	647,998
Available for sale securities		—		2,130,568		—		2,130,568
Equity securities		250		—		—		250
Loans held for sale		—		1,734,875		47,716		1,782,591
Derivative assets		—		48,122		—		48,122
MSR asset		—		—		86,990		86,990
Securities sold, not yet purchased		45,973		50,613		—		96,586
Derivative liabilities		—		21,816		—		21,816

Rollforward for financial instruments measured at fair value using Level 3 inputs

The following tables include a rollforward for those material financial instruments measured at fair value using Level 3 inputs (in thousands).

									Total Gains or Losses
									(Realized or Unrealized)
	Balance,						Transfers				Included in Other
	Beginning of		Purchases/		Sales/		to (from)		Included in		Comprehensive		Balance,
	Period		Additions		Reductions		Level 3		Net Income		Income (Loss)		End of Period
Three months ended June 30, 2022
Loans held for sale	$	45,977	$	13,456	$	(12,090)	$	1,094	$	(6,705)	$	—	$	41,732
Loans held for investment		9,611		—		(562)		—		(22)		—		9,027
MSR asset		100,475		11,210		—		—		10,003		—		121,688
Total	$	156,063	$	24,666	$	(12,652)	$	1,094	$	3,276	$	—	$	172,447
Six months ended June 30, 2022
Loans held for sale	$	47,716	$	20,442	$	(24,748)	$	5,838	$	(7,516)	$	—	$	41,732
Loans held for investment		—		9,611		(562)		—		(22)		—		9,027
MSR asset		86,990		18,510		(1,876)		—		18,064		—		121,688
Total	$	134,706	$	48,563	$	(27,186)	$	5,838	$	10,526	$	—	$	172,447
Three months ended June 30, 2021
Loans held for sale	$	77,275	$	18,962	$	(22,272)	$	(2,549)	$	17	$	—	$	71,433
MSR asset		142,125		15,815		(31,850)		—		(1,593)		—		124,497
Total	$	219,400	$	34,777	$	(54,122)	$	(2,549)	$	(1,576)	$	—	$	195,930
Six months ended June 30, 2021
Loans held for sale	$	71,816	$	31,456	$	(29,511)	$	(1,808)	$	(520)	$	—	$	71,433
MSR asset		143,742		50,115		(84,633)		—		15,273		—		124,497
Total	$	215,558	$	81,571	$	(114,144)	$	(1,808)	$	14,753	$	—	$	195,930

Schedule of significant unobservable inputs used in the fair value measurements

			Range (Weighted-Average)
Financial instrument	Valuation Technique	Unobservable Inputs	June 30, 2022							December 31, 2021
Loans held for sale	Market comparable	Projected price	86	-	89	%	(	87	%)	94	-	95	%	(	95	%)
Loans held for investment	Discounted cash flow	Discount rate				11.00		%					—
MSR asset	Discounted cash flow	Constant prepayment rate				8.42		%					10.02		%
		Discount rate				12.15		%					14.32		%

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 material instruments recognized in the consolidated statements of operations that are accounted for under the Fair Value Option (in thousands).

	Three Months Ended June 30, 2022						Three Months Ended June 30, 2021
			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	$	14,862	$	—	$	14,862	$	45,439	$	—	$	45,439
Loans held for investment		(283)		—		(283)		—		—		—
MSR asset		10,003		—		10,003		(1,593)		—		(1,593)

	Six Months Ended June 30, 2022						Six Months Ended June 30, 2021
			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	$	(35,994)	$	—	$	(35,994)	$	(22,517)	$	—	$	(22,517)
Loans held for investment		(283)		—		(283)		—		—		—
MSR asset		18,064		—		18,064		15,273		—		15,273

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, 2022	Amount		Inputs		Inputs		Inputs		Total
Financial assets:
Cash and cash equivalents	$	1,783,935	$	1,783,935	$	—	$	—	$	1,783,935
Assets segregated for regulatory purposes		120,816		120,816		—		—		120,816
Securities purchased under agreements to resell		139,929		—		139,929		—		139,929
Held to maturity securities		920,583		—		876,531		—		876,531
Loans held for sale		119,197		—		119,197		—		119,197
Loans held for investment, net		7,826,294		—		463,004		7,265,441		7,728,445
Broker-dealer and clearing organization receivables		1,049,830		—		1,049,830		—		1,049,830
Other assets		70,069		—		68,397		1,672		70,069
Financial liabilities:
Deposits		11,920,786		—		11,907,658		—		11,907,658
Broker-dealer and clearing organization payables		934,818		—		934,818		—		934,818
Short-term borrowings		822,649		—		822,649		—		822,649
Debt		389,722		—		389,722		—		389,722
Other liabilities		3,895		—		3,895		—		3,895

			Estimated Fair Value
	Carrying		Level 1		Level 2		Level 3
December 31, 2021	Amount		Inputs		Inputs		Inputs		Total
Financial assets:
Cash and cash equivalents	$	2,823,523	$	2,823,523	$	—	$	—	$	2,823,523
Assets segregated for regulatory purposes		221,740		221,740		—		—		221,740
Securities purchased under agreements to resell		118,262		—		118,262		—		118,262
Held to maturity securities		267,684		—		276,296		—		276,296
Loans held for sale		95,599		—		95,599		—		95,599
Loans held for investment, net		7,788,552		—		733,193		7,266,732		7,999,925
Broker-dealer and clearing organization receivables		1,672,946		—		1,672,946		—		1,672,946
Other assets		73,041		—		71,290		1,751		73,041
Financial liabilities:
Deposits		12,818,077		—		12,821,138		—		12,821,138
Broker-dealer and clearing organization payables		1,477,300		—		1,477,300		—		1,477,300
Short-term borrowings		859,444		—		859,444		—		859,444
Debt		387,904		—		387,904		—		387,904
Other liabilities		3,944		—		3,944		—		3,944

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,
	2022		2021		2022		2021
Balance, beginning of period	$	27,986	$	22,905	$	16,817	$	22,844
Additional investments		—		—		11,000		—
Upward adjustments		231		5,763		445		5,884
Impairments and downward adjustments		(34)		(704)		(79)		(764)
Dispositions		—		(975)		—		(975)
Balance, end of period	$	28,183	$	26,989	$	28,183	$	26,989