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Fair Value (Tables)
 6 Months Ended
Jun. 30, 2021
Fair Value Disclosures [Abstract]  
Financial Assets and Liabilities Measured at Fair Value Recurring Basis

The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis at June 30, 2021 and December 31, 2020, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value ($ in thousands).  There were no transfers between fair value levels for the six months ended June 30, 2021 and the year ended December 31, 2020.

 

 

June 30, 2021

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

U.S. Treasury securities

 

$

30,025

 

 

$

30,025

 

 

$

—

 

 

$

—

 

U.S. Government agency obligations

 

 

16,023

 

 

 

—

 

 

 

16,023

 

 

 

—

 

Obligations of states and political subdivisions

 

 

5,807

 

 

 

—

 

 

 

5,807

 

 

 

—

 

Mortgage-backed securities

 

 

2,496,884

 

 

 

—

 

 

 

2,496,884

 

 

 

—

 

Securities available for sale

 

 

2,548,739

 

 

 

30,025

 

 

 

2,518,714

 

 

 

—

 

Loans held for sale

 

 

332,132

 

 

 

—

 

 

 

332,132

 

 

 

—

 

Mortgage servicing rights

 

 

80,764

 

 

 

—

 

 

 

—

 

 

 

80,764

 

Other assets - derivatives

 

 

32,172

 

 

 

1,981

 

 

 

26,306

 

 

 

3,885

 

Other liabilities - derivatives

 

 

3,532

 

 

 

233

 

 

 

3,299

 

 

 

—

 

 

 

 

December 31, 2020

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

U.S. Government agency obligations

 

$

18,041

 

 

$

—

 

 

$

18,041

 

 

$

—

 

Obligations of states and political subdivisions

 

 

5,835

 

 

 

—

 

 

 

5,835

 

 

 

—

 

Mortgage-backed securities

 

 

1,967,939

 

 

 

—

 

 

 

1,967,939

 

 

 

—

 

Securities available for sale

 

 

1,991,815

 

 

 

—

 

 

 

1,991,815

 

 

 

—

 

Loans held for sale

 

 

446,951

 

 

 

—

 

 

 

446,951

 

 

 

—

 

Mortgage servicing rights

 

 

66,464

 

 

 

—

 

 

 

—

 

 

 

66,464

 

Other assets - derivatives

 

 

47,768

 

 

 

145

 

 

 

38,063

 

 

 

9,560

 

Other liabilities - derivatives

 

 

5,324

 

 

 

666

 

 

 

4,658

 

 

 

—

 
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis

The changes in Level 3 assets measured at fair value on a recurring basis for the six months ended June 30, 2021 and 2020 are summarized as follows ($ in thousands):

 

 

MSR

 

 

Other Assets -

Derivatives

 

Balance, January 1, 2021

 

$

66,464

 

 

$

9,560

 

Total net (loss) gain included in Mortgage banking, net (1)

 

 

(901

)

 

 

5,857

 

Additions

 

 

15,201

 

 

 

—

 

Sales

 

 

—

 

 

 

(11,532

)

Balance, June 30, 2021

 

$

80,764

 

 

$

3,885

 

 

 

 

 

 

 

 

 

 

The amount of total gains (losses) for the period included in earnings

   that are attributable to the change in unrealized gains or

   losses still held at June 30, 2021

 

$

9,231

 

 

$

2,592

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2020

 

$

79,394

 

 

$

1,439

 

Total net (loss) gain included in Mortgage banking, net (1)

 

 

(33,979

)

 

 

22,382

 

Additions

 

 

12,396

 

 

 

—

 

Sales

 

 

—

 

 

 

(9,491

)

Balance, June 30, 2020

 

$

57,811

 

 

$

14,330

 

 

 

 

 

 

 

 

 

 

The amount of total gains (losses) for the period included in

   earnings that are attributable to the change in unrealized

   gains or losses still held at June 30, 2020

 

$

(27,158

)

 

$

12,897

 

 

(1)

Total net (loss) gain included in Mortgage banking, net relating to the MSR includes changes in fair value due to market changes and due to run-off.
Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments at June 30, 2021 and December 31, 2020, are as follows ($ in thousands):

 

 

June 30, 2021

 

 

December 31, 2020

 

 

 

Carrying

Value

 

 

Estimated

Fair Value

 

 

Carrying

Value

 

 

Estimated

Fair Value

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 2 Inputs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

$

2,267,224

 

 

$

2,267,224

 

 

$

1,952,554

 

 

$

1,952,554

 

Securities held to maturity

 

 

433,012

 

 

 

452,288

 

 

 

538,072

 

 

 

563,115

 

Level 3 Inputs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net LHFI and PPP loans

 

 

10,214,956

 

 

 

10,183,509

 

 

 

10,317,352

 

 

 

10,312,395

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 2 Inputs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

14,632,084

 

 

 

14,633,322

 

 

 

14,048,764

 

 

 

14,052,863

 

Federal funds purchased and securities sold under

   repurchase agreements

 

 

157,176

 

 

 

157,176

 

 

 

164,519

 

 

 

164,519

 

Other borrowings

 

 

117,223

 

 

 

117,221

 

 

 

168,252

 

 

 

168,252

 

Subordinated notes

 

 

122,932

 

 

 

128,750

 

 

 

122,921

 

 

 

127,500

 

Junior subordinated debt securities

 

 

61,856

 

 

 

48,866

 

 

 

61,856

 

 

 

46,083

 

 
Fair Value and the Contractual Principal Outstanding of the LHFS

The following table provides information about the fair value and the contractual principal outstanding of LHFS accounted for under the fair value option as of June 30, 2021 and December 31, 2020 ($ in thousands):

 

 

 

June 30, 2021

 

 

December 31, 2020

 

Fair value of LHFS

 

$

236,719

 

 

$

305,791

 

LHFS contractual principal outstanding

 

 

229,631

 

 

 

290,625

 

Fair value less unpaid principal

 

$

7,088

 

 

$

15,166