XML 46 R36.htm IDEA: XBRL DOCUMENT v3.22.2
Fair value measurements (Tables)
 6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

The following tables present assets and liabilities at June 30, 2022 and December 31, 2021 measured at estimated fair value on a recurring basis:

 



 

 

Fair Value Measurements

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

June 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Trading account

 

$

133,855

 

 

$

133,855

 

 

$

—

 

 

$

—

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

5,182,571

 

 

 

—

 

 

 

5,182,571

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

614,784

 

 

 

—

 

 

 

614,784

 

 

 

—

 

Residential

 

 

2,726,769

 

 

 

—

 

 

 

2,726,769

 

 

 

—

 

Other debt securities

 

 

180,831

 

 

 

—

 

 

 

180,831

 

 

 

—

 

 

 

 

8,704,955

 

 

 

—

 

 

 

8,704,955

 

 

 

—

 

Equity securities

 

 

101,872

 

 

 

91,820

 

 

 

10,052

 

 

 

—

 

Real estate loans held for sale

 

 

319,421

 

 

 

—

 

 

 

319,421

 

 

 

—

 

Other assets (a)

 

 

243,764

 

 

 

—

 

 

 

237,240

 

 

 

6,524

 

Total assets

 

$

9,503,867

 

 

$

225,675

 

 

$

9,271,668

 

 

$

6,524

 

Other liabilities (a)

 

 

808,439

 

 

 

—

 

 

 

777,734

 

 

 

30,705

 

Total liabilities

 

$

808,439

 

 

$

—

 

 

$

777,734

 

 

$

30,705

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

Trading account

 

$

49,745

 

 

$

49,545

 

 

$

200

 

 

$

—

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

678,690

 

 

 

—

 

 

 

678,690

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

Residential

 

 

3,155,312

 

 

 

—

 

 

 

3,155,312

 

 

 

—

 

Other debt securities

 

 

121,802

 

 

 

—

 

 

 

121,802

 

 

 

—

 

 

 

 

3,955,804

 

 

 

—

 

 

 

3,955,804

 

 

 

—

 

Equity securities

 

 

77,640

 

 

 

68,850

 

 

 

8,790

 

 

 

—

 

Real estate loans held for sale

 

 

899,282

 

 

 

—

 

 

 

899,282

 

 

 

—

 

Other assets (a)

 

 

442,453

 

 

 

—

 

 

 

430,725

 

 

 

11,728

 

Total assets

 

$

5,424,924

 

 

$

118,395

 

 

$

5,294,801

 

 

$

11,728

 

Other liabilities (a)

 

 

93,843

 

 

 

—

 

 

 

88,555

 

 

 

5,288

 

Total liabilities

 

$

93,843

 

 

$

—

 

 

$

88,555

 

 

$

5,288

 

 

(a)
Comprised predominantly of interest rate swap agreements used for interest rate risk management (Level 2), interest rate and foreign exchange contracts not designated as hedging instruments (Level 2), commitments to sell real estate loans (Level 2) and commitments to originate real estate loans to be held for sale (Level 3).
Changes In Level Three Assets And Liabilities Measured At Estimated Fair Value On Recurring Basis Table Text Block

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended June 30, 2022 and 2021 were as follows:

 

 

 

Investment Securities
Available for Sale

 

 

 

 

 

 

 

Privately Issued Mortgage-Backed Securities

 

 

Other Assets and Other Liabilities

 

 

2022

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

Balance — March 31, 2022

 

$

—

 

 

$

(15,428

)

 

Total gains realized/unrealized:

 

 

 

 

 

 

 

Included in earnings

 

 

—

 

 

 

(6,609

)

(a)

Transfers out of Level 3

 

 

—

 

 

 

(2,144

)

(b)

Balance — June 30, 2022

 

$

—

 

 

$

(24,181

)

 

Changes in unrealized gains included in earnings
   related to assets still held at June 30, 2022

 

$

—

 

 

$

(8,441

)

(a)

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance — March 31, 2021

 

$

16

 

 

$

13,757

 

 

Total gains realized/unrealized:

 

 

 

 

 

 

 

Included in earnings

 

 

—

 

 

 

52,312

 

(a)

Settlements

 

 

(16

)

 

 

—

 

 

Transfers out of Level 3

 

 

—

 

 

 

(30,403

)

(b)

Balance — June 30, 2021

 

$

—

 

 

$

35,666

 

 

Changes in unrealized gains included in earnings
   related to assets still held at June 30, 2021

 

$

—

 

 

$

37,300

 

(a)

 

 

13. Fair value measurements, continued

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the six months ended June 30, 2022 and 2021 were as follows:

 

 

 

Investment Securities
Available for Sale

 

 

 

 

 

 

 

Privately Issued Mortgage-Backed Securities

 

 

Other Assets and Other Liabilities

 

 

2022

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

Balance — January 1, 2022

 

$

—

 

 

$

6,440

 

 

Total gains realized/unrealized:

 

 

 

 

 

 

 

Included in earnings

 

 

—

 

 

 

(25,309

)

(a)

Transfers out of Level 3

 

 

—

 

 

 

(5,312

)

(b)

Balance — June 30, 2022

 

$

—

 

 

$

(24,181

)

 

Changes in unrealized gains included in earnings
   related to assets still held at June 30, 2022

 

$

—

 

 

$

3,405

 

(a)

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance — January 1, 2021

 

$

16

 

 

$

43,234

 

 

Total gains realized/unrealized:

 

 

 

 

 

 

 

Included in earnings

 

 

—

 

 

 

58,337

 

(a)

Settlements

 

 

(16

)

 

 

—

 

 

Transfers out of Level 3

 

 

—

 

 

 

(65,905

)

(b)

Balance — June 30, 2021

 

$

—

 

 

$

35,666

 

 

Changes in unrealized gains included in earnings
   related to assets still held at June 30, 2021

 

$

—

 

 

$

35,492

 

(a)

 

(a)
Reported as mortgage banking revenues in the consolidated statement of income and includes the fair value of commitment issuances and expirations.
(b)
Transfers out of Level 3 consist of interest rate locks transferred to closed loans.
Quantitative Information Related To Significant Unobservable Inputs Table Text Block

The following table presents quantitative information about significant unobservable inputs used in the fair value measurements for certain Level 3 assets and liabilities at June 30, 2022 and December 31, 2021:

 

 

 

Fair Value

 

 

Valuation
Technique

 

Unobservable
Inputs/Assumptions

 

Range
(Weighted-
Average)

 

 

(In thousands)

 

 

 

 

 

 

 

June 30, 2022

 

 

 

 

 

 

 

 

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

Net other assets (liabilities) (a)

 

$

(24,181

)

 

Discounted cash flow

 

Commitment expirations

 

0% - 93% (3%)

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

 

 

 

 

 

 

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

Net other assets (liabilities) (a)

 

$

6,440

 

 

Discounted cash flow

 

Commitment expirations

 

0% - 80% (10%)

 

(a)
Other Level 3 assets (liabilities) consist of commitments to originate real estate loans.
Carrying Amounts and Estimated Fair Value for Financial Instrument Assets (Liabilities)

The carrying amounts and estimated fair value for financial instrument assets (liabilities) are presented in the following tables:

 

 

 

June 30, 2022

 


 

 

Carrying
Amount

 

 

Estimated
 Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,688,274

 

 

 

1,688,274

 

 

 

1,535,535

 

 

 

152,739

 

 

 

—

 

Interest-bearing deposits at banks

 

 

33,437,454

 

 

 

33,437,454

 

 

 

—

 

 

 

33,437,454

 

 

 

—

 

Federal funds sold and agreements to resell securities

 

 

250,250

 

 

 

250,250

 

 

 

—

 

 

 

250,250

 

 

 

—

 

Trading account

 

 

133,855

 

 

 

133,855

 

 

 

133,855

 

 

 

—

 

 

 

—

 

Investment securities

 

 

22,801,717

 

 

 

22,124,661

 

 

 

91,820

 

 

 

21,977,313

 

 

 

55,528

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans and leases

 

 

39,108,676

 

 

 

38,785,142

 

 

 

—

 

 

 

—

 

 

 

38,785,142

 

Commercial real estate loans

 

 

46,795,139

 

 

 

45,504,741

 

 

 

—

 

 

 

254,822

 

 

 

45,249,919

 

Residential real estate loans

 

 

22,767,107

 

 

 

21,579,180

 

 

 

—

 

 

 

11,386,865

 

 

 

10,192,315

 

Consumer loans

 

 

19,815,198

 

 

 

19,630,170

 

 

 

—

 

 

 

—

 

 

 

19,630,170

 

Allowance for credit losses

 

 

(1,823,790

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loans and leases, net

 

 

126,662,330

 

 

 

125,499,233

 

 

 

—

 

 

 

11,641,687

 

 

 

113,857,546

 

Accrued interest receivable

 

 

475,776

 

 

 

475,776

 

 

 

—

 

 

 

475,776

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

(72,375,515

)

 

 

(72,375,515

)

 

 

—

 

 

 

(72,375,515

)

 

 

—

 

Savings and interest-checking deposits

 

 

(92,711,597

)

 

 

(92,711,597

)

 

 

—

 

 

 

(92,711,597

)

 

 

—

 

Time deposits

 

 

(5,271,284

)

 

 

(5,270,713

)

 

 

—

 

 

 

(5,270,713

)

 

 

—

 

Short-term borrowings

 

 

(1,119,321

)

 

 

(1,119,321

)

 

 

—

 

 

 

(1,119,321

)

 

 

—

 

Long-term borrowings

 

 

(3,017,363

)

 

 

(2,992,593

)

 

 

—

 

 

 

(2,992,593

)

 

 

—

 

Accrued interest payable

 

 

(44,471

)

 

 

(44,471

)

 

 

—

 

 

 

(44,471

)

 

 

—

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to originate real estate
   loans for sale

 

$

(24,181

)

 

 

(24,181

)

 

 

—

 

 

 

—

 

 

 

(24,181

)

Commitments to sell real estate loans

 

 

47,471

 

 

 

47,471

 

 

 

—

 

 

 

47,471

 

 

 

—

 

Other credit-related commitments

 

 

(128,344

)

 

 

(128,344

)

 

 

—

 

 

 

—

 

 

 

(128,344

)

Interest rate swap agreements used for
   interest rate risk management

 

 

41,417

 

 

 

41,417

 

 

 

—

 

 

 

41,417

 

 

 

—

 

Interest rate and foreign exchange contracts
   not designated as hedging instruments

 

 

(629,382

)

 

 

(629,382

)

 

 

—

 

 

 

(629,382

)

 

 

—

 

 

13. Fair value measurements, continued

 

 

 

December 31, 2021

 


 

 

Carrying
Amount

 

 

Estimated
Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

 

 

 

(In thousands)

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,337,577

 

 

 

1,337,577

 

 

 

1,205,269

 

 

 

132,308

 

 

 

—

 

Interest-bearing deposits at banks

 

 

41,872,304

 

 

 

41,872,304

 

 

 

—

 

 

 

41,872,304

 

 

 

—

 

Trading account

 

 

49,745

 

 

 

49,745

 

 

 

49,545

 

 

 

200

 

 

 

—

 

Investment securities

 

 

7,155,860

 

 

 

7,192,476

 

 

 

68,850

 

 

 

7,066,293

 

 

 

57,333

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans and leases

 

 

23,473,324

 

 

 

23,285,224

 

 

 

—

 

 

 

—

 

 

 

23,285,224

 

Commercial real estate loans

 

 

35,389,730

 

 

 

34,730,191

 

 

 

—

 

 

 

425,010

 

 

 

34,305,181

 

Residential real estate loans

 

 

16,074,445

 

 

 

16,160,799

 

 

 

—

 

 

 

4,524,018

 

 

 

11,636,781

 

Consumer loans

 

 

17,974,953

 

 

 

18,121,363

 

 

 

—

 

 

 

—

 

 

 

18,121,363

 

Allowance for credit losses

 

 

(1,469,226

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loans and leases, net

 

 

91,443,226

 

 

 

92,297,577

 

 

 

—

 

 

 

4,949,028

 

 

 

87,348,549

 

Accrued interest receivable

 

 

335,162

 

 

 

335,162

 

 

 

—

 

 

 

335,162

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

(60,131,480

)

 

 

(60,131,480

)

 

 

—

 

 

 

(60,131,480

)

 

 

—

 

Savings and interest-checking deposits

 

 

(68,603,966

)

 

 

(68,603,966

)

 

 

—

 

 

 

(68,603,966

)

 

 

—

 

Time deposits

 

 

(2,807,963

)

 

 

(2,810,143

)

 

 

—

 

 

 

(2,810,143

)

 

 

—

 

Short-term borrowings

 

 

(47,046

)

 

 

(47,046

)

 

 

—

 

 

 

(47,046

)

 

 

—

 

Long-term borrowings

 

 

(3,485,369

)

 

 

(3,562,223

)

 

 

—

 

 

 

(3,562,223

)

 

 

—

 

Accrued interest payable

 

 

(40,866

)

 

 

(40,866

)

 

 

—

 

 

 

(40,866

)

 

 

—

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to originate real estate
   loans for sale

 

$

6,440

 

 

 

6,440

 

 

 

—

 

 

 

—

 

 

 

6,440

 

Commitments to sell real estate loans

 

 

7,525

 

 

 

7,525

 

 

 

—

 

 

 

7,525

 

 

 

—

 

Other credit-related commitments

 

 

(123,032

)

 

 

(123,032

)

 

 

—

 

 

 

—

 

 

 

(123,032

)

Interest rate swap agreements used
   for interest rate risk management

 

 

(207

)

 

 

(207

)

 

 

—

 

 

 

(207

)

 

 

—

 

Interest rate and foreign exchange contracts
   not designated as hedging instruments

 

 

334,852

 

 

 

334,852

 

 

 

—

 

 

 

334,852

 

 

 

—