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