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Fair Value Measurements (Tables)
9 Months Ended
Sep. 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

 

September 30, 2022

Inputs

Inputs

Inputs

Fair Value

 

Trading securities

$

5,259

$

636,605

$

$

641,864

Available for sale securities

1,584,724

1,584,724

Equity securities

209

209

Loans held for sale

826,013

37,414

863,427

Loans held for investment

8,912

8,912

Derivative assets

141,536

141,536

MSR asset

156,539

156,539

Securities sold, not yet purchased

65,370

34,145

99,515

Derivative liabilities

45,032

45,032

    

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 September 30, 2022

Loans held for sale

$

41,732

$

18,012

$

(19,594)

$

(251)

$

(2,485)

$

$

37,414

Loans held for investment

9,027

(115)

8,912

MSR asset

 

121,688

29,340

5,511

 

156,539

Total

$

172,447

$

47,352

$

(19,594)

$

(251)

$

2,911

$

$

202,865

Nine months ended September 30, 2022

Loans held for sale

$

47,716

$

38,454

$

(44,342)

$

5,587

$

(10,001)

$

$

37,414

Loans held for investment

9,611

(562)

(137)

8,912

MSR asset

86,990

47,850

(1,876)

23,575

156,539

Total

$

134,706

$

95,915

$

(46,780)

$

5,587

$

13,437

$

$

202,865

Three months ended September 30, 2021

Loans held for sale

$

71,433

$

18,817

$

(22,207)

$

(2,291)

$

6,767

$

$

72,519

MSR asset

124,497

20,252

(31,366)

(2,452)

110,931

Total

$

195,930

$

39,069

$

(53,573)

$

(2,291)

$

4,315

$

$

183,450

Nine months ended September 30, 2021

Loans held for sale

$

71,816

$

50,273

$

(51,718)

$

(4,099)

$

6,247

$

$

72,519

MSR asset

143,742

70,368

(116,000)

12,821

110,931

Total

$

215,558

$

120,641

$

(167,718)

$

(4,099)

$

19,068

$

$

183,450

Schedule of significant unobservable inputs used in the fair value measurements

Range (Weighted-Average)

Financial instrument

    

Valuation Technique

    

Unobservable Inputs

    

September 30, 2022

December 31, 2021

Loans held for sale

Market comparable

Projected price

90

-

92

%

(

91

%)

94

-

95

%

(

95

%)

Loans held for investment

Discounted cash flow

Discount rate

12.00

%

MSR asset

Discounted cash flow

Constant prepayment rate

8.06

%

10.02

%

Discount rate

12.09

%

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 September 30, 2022

Three Months Ended September 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

$

(37,526)

$

$

(37,526)

$

(32,694)

$

$

(32,694)

Loans held for investment

(377)

(377)

MSR asset

 

5,511

 

 

5,511

 

(2,452)

 

 

(2,452)

Nine Months Ended September 30, 2022

Nine Months Ended September 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

$

(73,520)

$

$

(73,520)

$

(55,211)

$

$

(55,211)

Loans held for investment

 

(660)

 

 

(660)

 

 

 

MSR asset

 

23,575

 

 

23,575

 

12,821

 

 

12,821

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, 2022

Amount

Inputs

Inputs

Inputs

Total

Financial assets:

Cash and cash equivalents

$

1,778,247

$

1,778,247

$

$

$

1,778,247

Assets segregated for regulatory purposes

109,358

109,358

109,358

Securities purchased under agreements to resell

145,365

145,365

145,365

Held to maturity securities

889,452

792,559

792,559

Loans held for sale

140,178

85,137

57,188

142,325

Loans held for investment, net

7,843,551

402,502

7,281,532

7,684,034

Broker-dealer and clearing organization receivables

 

1,255,052

 

 

1,255,052

 

 

1,255,052

Other assets

 

71,365

 

 

69,699

 

1,666

 

71,365

Financial liabilities:

Deposits

 

11,352,014

 

 

11,333,099

 

 

11,333,099

Broker-dealer and clearing organization payables

 

1,176,156

 

 

1,176,156

 

 

1,176,156

Short-term borrowings

 

942,309

 

 

942,309

 

 

942,309

Debt

 

390,354

 

 

389,632

 

 

389,632

Other liabilities

 

9,198

 

 

9,198

 

 

9,198

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 September 30,

Nine Months Ended September 30,

2022

    

2021

2022

    

2021

Balance, beginning of period

$

28,183

 

$

26,988

$

16,817

 

$

22,844

Additional investments

11,000

Upward adjustments

234

122

679

6,006

Impairments and downward adjustments

(1,013)

(253)

(1,092)

(1,017)

Dispositions

 

 

(10,390)

 

 

(11,366)

Balance, end of period

$

27,404

$

16,467

$

27,404

$

16,467