Fair Value of Measurements (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Summary of asset and liabilities measure at fair value on a recurring basis

The following tables summarize the financial assets and liabilities measured at fair value on a recurring basis.

			Fair Value Measurements at the End of the Reporting Period Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	June 30, 2020		(Level 1)		(Level 2)		(Level 3)
	(In Thousands)
Recurring fair value measurements
Assets:
Trading account assets:
U.S. Treasury and other U.S. government agencies	$	176,614	$	176,614	$	—	$	—
State and political subdivisions	10		—		10		—
Interest rate contracts	789,245		—		789,245		—
Foreign exchange contracts	51,097		—		51,097		—
Total trading account assets	1,016,966		176,614		840,352		—
Debt securities available for sale:
U.S. Treasury and other U.S. government agencies	2,217,738		1,730,483		487,255		—
Mortgage-backed securities	1,096,745		—		1,096,745		—
Collateralized mortgage obligations	2,449,995		—		2,449,995		—
States and political subdivisions	714		—		714		—
Total debt securities available for sale	5,765,192		1,730,483		4,034,709		—
Loans held for sale	245,851		—		245,851		—
Derivative assets:
Interest rate contracts	34,207		—		13,464		20,743
Equity contracts	1,868		—		1,868		—
Foreign exchange contracts	1,523		—		1,523		—
Total derivative assets	37,598		—		16,855		20,743
Other assets:
Equity securities	18,890		18,890		—		—
MSR	29,035		—		—		29,035
SBIC	152,784		—		—		152,784
Liabilities:
Trading account liabilities:
U.S. Treasury and other U.S. government agencies	$	1,619	$	1,619	$	—	$	—
Interest rate contracts	177,644		—		177,644		—
Foreign exchange contracts	48,406		—		48,406		—
Total trading account liabilities	227,669		1,619		226,050		—
Derivative liabilities:
Interest rate contracts	8,584		—		8,584		—
Equity contracts	1,555		—		1,555		—
Foreign exchange contracts	4,611		—		4,611		—
Total derivative liabilities	14,750		—		14,750		—

			Fair Value Measurements at the End of the Reporting Period Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	December 31, 2019		(Level 1)		(Level 2)		(Level 3)
	(In Thousands)
Recurring fair value measurements
Assets:
Trading account assets:
U.S. Treasury and other U.S. government agencies	$	137,637	$	137,637	$	—	$	—
Interest rate contracts	313,573		—		313,573		—
Foreign exchange contracts	22,766		—		22,766		—
Total trading account assets	473,976		137,637		336,339		—
Debt securities available for sale:
U.S. Treasury and other U.S. government agencies	3,127,525		2,598,471		529,054		—
Mortgage-backed securities	1,325,857		—		1,325,857		—
Collateralized mortgage obligations	2,781,125		—		2,781,125		—
States and political subdivisions	798		—		798		—
Total debt securities available for sale	7,235,305		2,598,471		4,636,834		—
Loans held for sale	112,058		—		112,058		—
Derivative assets:
Interest rate contracts	13,907		38		10,781		3,088
Equity contracts	4,460		—		4,460		—
Foreign exchange contracts	276		—		276		—
Total derivative assets	18,643		38		15,517		3,088
Other assets:
Equity securities	19,038		19,038		—		—
MSR	42,022		—		—		42,022
SBIC	119,475		—		—		119,475
Liabilities:
Trading account liabilities:
Interest rate contracts	$	97,881	$	—	$	97,881	$	—
Foreign exchange contracts	20,678		—		20,678		—
Total trading account liabilities	118,559		—		118,559		—
Derivative liabilities:
Interest rate contracts	3,732		—		3,732		—
Equity contracts	3,765		—		3,765		—
Foreign exchange contracts	3,940		—		3,940		—
Total derivative liabilities	11,437		—		11,437		—

Reconciliation of assets measured on a recurring basis using significant unobservable inputs

The following tables reconcile the assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3).

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Three Months Ended June 30,	Interest Rate Contracts, net		Other Assets - MSR			Other Assets - SBIC
	(In Thousands)
Balance, March 31, 2019	$	3,158	$	47,545		$	93,343
Transfers into Level 3	—		—			—
Transfers out of Level 3	—		—			—
Total gains or losses (realized/unrealized):
Included in earnings (1)	689		(7,225		)	6,514
Included in other comprehensive income	—		—			—
Purchases, issuances, sales and settlements:
Purchases	—		—			2,208
Issuances	—		1,646			—
Sales	—		—			—
Settlements	—		—			—
Balance, June 30, 2019	$	3,847	$	41,966		$	102,065
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2019	$	689	$	(7,225	)	$	6,514
Balance, March 31, 2020	$	12,410	$	31,232		$	156,400
Transfers into Level 3	—		—			—
Transfers out of Level 3	—		—			—
Total gains or losses (realized/unrealized):
Included in earnings (1)	8,333		(4,936		)	(5,116		)
Included in other comprehensive income	—		—			—
Purchases, issuances, sales and settlements:
Purchases	—		—			1,500
Issuances	—		2,739			—
Sales	—		—			—
Settlements	—		—			—
Balance, June 30, 2020	$	20,743	$	29,035		$	152,784
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2020	$	8,333	$	(4,936	)	$	(5,116	)

(1) Included in noninterest income in the Unaudited Condensed Consolidated Statements of Income.

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Six Months Ended June 30,	Interest Rate Contracts, net		Other Assets - MSR			Other Assets - SBIC
	(In Thousands)
Balance, December 31, 2018	$	2,012	$	51,539		$	80,074
Transfers into Level 3	—		—			—
Transfers out of Level 3	—		—			—
Total gains or losses (realized/unrealized):
Included in earnings (1)	1,835		(12,278		)	14,071
Included in other comprehensive income	—		—			—
Purchases, issuances, sales and settlements:
Purchases	—		—			7,920
Issuances	—		2,705			—
Sales	—		—			—
Settlements	—		—			—
Balance, June 30, 2019	$	3,847	$	41,966		$	102,065
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2019	$	1,835	$	(12,278	)	$	14,071
Balance, December 31, 2019	$	3,088	$	42,022		$	119,475
Transfers into Level 3	—		—			—
Transfers out of Level 3	—		—			—
Total gains or losses (realized/unrealized):
Included in earnings (1)	17,655		(17,397		)	10,767
Included in other comprehensive income	—		—			—
Purchases, issuances, sales and settlements:
Purchases	—		—			22,542
Issuances	—		4,410			—
Sales	—		—			—
Settlements	—		—			—
Balance, June 30, 2020	$	20,743	$	29,035		$	152,784
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2020	$	17,655	$	(17,397	)	$	10,767

(1) Included in noninterest income in the Unaudited Condensed Consolidated Statements of Income.

Schedule of carrying amounts and estimated fair values within the fair value hierarchy

The following tables represent those assets that were subject to fair value adjustments during the three and six months ended June 30, 2020 and 2019, and still held as of the end of the period, and the related gains and losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period.

			Fair Value Measurements at the End of the Reporting Period Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Gains (Losses)
	June 30, 2020		(Level 1)		(Level 2)		(Level 3)		Three Months Ended June 30, 2020			Six Months Ended June 30, 2020
	(In Thousands)
Nonrecurring fair value measurements
Assets:
OREO	$	14,871	$	—	$	—	$	14,871	$	(201	)	$	(908	)
			Fair Value Measurements at the End of the Reporting Period Using
	Fair Value		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Gains (Losses)
	June 30, 2019		(Level 1)		(Level 2)		(Level 3)		Three Months Ended June 30, 2019			Six Months Ended June 30, 2019
	(In Thousands)
Nonrecurring fair value measurements
Assets:
Debt securities held to maturity	$	1,072	$	—	$	—	$	1,072	$	(113	)	$	(113	)
Impaired loans (1)	3,404		—		—		3,404		(41,482		)	(43,525		)
OREO	15,302		$	—	—		15,302		(786		)	(2,759		)

(1) Total gains (losses) represent charge-offs on impaired loans for which adjustments are based on the appraised value of the collateral.

Schedule of fair value measurement inputs

The tables below present information about the significant unobservable inputs for material assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring and nonrecurring basis.

			Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at				Range of Unobservable Inputs
	June 30, 2020		Valuation Technique	Unobservable Input(s)	(Weighted Average)
	(In Thousands)
Recurring fair value measurements:
Interest rate contracts, net	$	20,743	Discounted cash flow	Closing ratios (pull-through)	6.2% - 99.9% (64.2%)
				Cap grids	-0.1% - 2.1% (0.9%)
Other assets - MSRs	29,035		Discounted cash flow	Option adjusted spread	6.0% - 8.3% (6.2%)
				Constant prepayment rate or life speed	0.0% - 82.3% (20.9%)
				Cost to service	$65 - $4,000 ($105)
Other assets - SBIC investments	152,784		Transaction price	Transaction price	N/A
Nonrecurring fair value measurements:
OREO	14,871		Appraised value	Appraised value	8.0% (1)

(1) Represents discount to appraised value for estimated costs to sell.

			Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at				Range of Unobservable Inputs
	December 31, 2019		Valuation Technique	Unobservable Input(s)	(Weighted Average)
	(In Thousands)
Recurring fair value measurements:
Interest rate contracts, net	$	3,088	Discounted cash flow	Closing ratios (pull-through)	16.8% - 100.0% (60.1%)
				Cap grids	0.5% - 2.5% (0.9%)
Other assets - MSRs	42,022		Discounted cash flow	Option adjusted spread	6.0% - 9.0% (6.4%)
				Constant prepayment rate or life speed	0.0% - 80.0% (14.6%)
				Cost to service	$65 - $4,000 ($90)
Other assets - SBIC investments	119,475		Transaction price	Transaction price	N/A
Nonrecurring fair value measurements:
Debt securities held to maturity	$	2,177	Discounted cash flow	Prepayment rate	13.7% - 14.7% (14.2%)
				Default rate	3.1% - 4.9% (4.0%)
				Loss severity	50.3% - 61.9% (56.1%)
Impaired loans	484		Appraised value	Appraised value	0.0% - 70.0% (9.7%)
OREO	21,583		Appraised value	Appraised value	8.0% (1)

(1) Represents discount to appraised value for estimated costs to sell.

Schedule of fair value by balance sheet location

The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments, excluding financial instruments measured at fair value on a recurring basis, are as follows:

	June 30, 2020
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(In Thousands)
Financial Instruments:
Assets:
Cash and cash equivalents	$	12,757,190	$	12,757,190	$	12,757,190	$	—	$	—
Debt securities held to maturity	8,708,454		9,078,298		1,417,028		7,037,707		623,563
Loans	68,241,500		68,102,442		—		—		68,102,442
Liabilities:
Deposits	$	85,426,414	$	85,468,012	$	—	$	85,468,012	$	—
FHLB and other borrowings	3,571,933		3,421,476		—		3,421,476		—
Federal funds purchased and securities sold under agreements to repurchase	249,481		249,481		—		249,481		—

	December 31, 2019
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(In Thousands)
Financial Instruments:
Assets:
Cash and cash equivalents	$	6,938,698	$	6,938,698	$	6,938,698	$	—	$	—
Debt securities held to maturity	6,797,046		6,921,158		1,340,448		4,912,399		668,311
Loans	63,946,857		60,869,662		—		—		60,869,662
Liabilities:
Deposits	$	74,985,283	$	75,024,350	$	—	$	75,024,350	$	—
FHLB and other borrowings	3,690,044		3,721,949		—		3,721,949		—
Federal funds purchased and securities sold under agreements to repurchase	173,028		173,028		—		173,028		—

Schedule of differences between aggregate fair value and aggregate unpaid principle balance

The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for residential mortgage loans measured at fair value.

	Aggregate Fair Value		Aggregate Unpaid Principal Balance		Difference
	(In Thousands)
June 30, 2020
Residential mortgage loans held for sale	$	245,851	$	233,340	$	12,511
December 31, 2019
Residential mortgage loans held for sale	$	112,058	$	108,345	$	3,713