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Fair value measurements (Tables)
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

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



 

 

Fair Value Measurements

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

Trading account

 

$

117,847

 

 

$

117,847

 

 

$

—

 

 

$

—

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

7,670,960

 

 

 

—

 

 

 

7,670,960

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

574,299

 

 

 

—

 

 

 

574,299

 

 

 

—

 

Residential

 

 

2,330,118

 

 

 

—

 

 

 

2,330,118

 

 

 

—

 

Other debt securities

 

 

173,584

 

 

 

—

 

 

 

173,584

 

 

 

—

 

 

 

 

10,748,961

 

 

 

—

 

 

 

10,748,961

 

 

 

—

 

Equity securities

 

 

151,458

 

 

 

145,289

 

 

 

6,169

 

 

 

—

 

Real estate loans held for sale

 

 

162,393

 

 

 

—

 

 

 

162,393

 

 

 

—

 

Other assets (a)

 

 

435,969

 

 

 

—

 

 

 

435,517

 

 

 

452

 

Total assets

 

$

11,616,628

 

 

$

263,136

 

 

$

11,353,040

 

 

$

452

 

Other liabilities (a)

 

 

1,355,326

 

 

 

—

 

 

 

1,309,301

 

 

 

46,025

 

Total liabilities

 

$

1,355,326

 

 

$

—

 

 

$

1,309,301

 

 

$

46,025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 3 Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the years ended December 31, 2022, 2021 and 2020 were as follows:

 

 

Investment
Securities
Available for Sale

 

 

 

 

 

 

 

Privately Issued
Mortgage-Backed
Securities

 

 

Other Assets and
Other Liabilities

 

 

 

 

(In thousands)

 

 

2022

 

 

 

 

 

 

 

Balance — January 1, 2022

 

$

—

 

 

$

6,440

 

 

Total gains realized/unrealized:

 

 

 

 

 

 

 

Included in earnings

 

 

—

 

 

 

(34,396

)

(a)

Transfers out of Level 3

 

 

—

 

 

 

(17,617

)

(b)

Balance — December 31, 2022

 

$

—

 

 

$

(45,573

)

 

Changes in unrealized gains included in earnings
   related to assets still held at December 31, 2022

 

$

—

 

 

$

(45,758

)

(a)

 

 

 

 

 

 

 

 

2021

 

 

 

 

 

 

 

Balance — January 1, 2021

 

$

16

 

 

$

43,234

 

 

Total gains realized/unrealized:

 

 

 

 

 

 

 

Included in earnings

 

 

—

 

 

 

126,223

 

(a)

Settlements

 

 

(16

)

 

 

—

 

 

Transfers out of Level 3

 

 

—

 

 

 

(163,017

)

(b)

Balance — December 31, 2021

 

$

—

 

 

$

6,440

 

 

Changes in unrealized gains included in earnings
   related to assets still held at December 31, 2021

 

$

—

 

 

$

8,619

 

(a)

 

 

 

 

 

 

 

 

2020

 

 

 

 

 

 

 

Balance — January 1, 2020

 

$

16

 

 

$

10,740

 

 

Total gains realized/unrealized:

 

 

 

 

 

 

 

      Included in earnings

 

 

—

 

 

 

194,469

 

(a)

Transfers out of Level 3

 

 

—

 

 

 

(161,975

)

(b)

Balance — December 31, 2020

 

$

16

 

 

$

43,234

 

 

Changes in unrealized gains included in earnings
   related to assets still held at December 31, 2020

 

$

—

 

 

$

42,597

 

(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

The following tables present quantitative information about significant unobservable inputs used in the fair value measurements for Level 3 assets and liabilities at December 31, 2022 and 2021:

 

 

Fair Value

 

 

Valuation
Technique

 

Unobservable
Inputs / Assumptions

 

Range
(Weighted-
Average)

 

 

(In thousands)

 

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

Net other assets (liabilities) (a)

 

$

(45,573

)

 

Discounted cash flow

 

Commitment expirations

 

0% - 97% (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:

 

 

December 31, 2022

 


 

 

Carrying
Amount

 

 

Estimated
 Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,517,244

 

 

 

1,517,244

 

 

 

1,371,688

 

 

 

145,556

 

 

 

—

 

Interest-bearing deposits at banks

 

 

24,958,719

 

 

 

24,958,719

 

 

 

—

 

 

 

24,958,719

 

 

 

—

 

Federal funds sold

 

 

3,000

 

 

 

3,000

 

 

 

—

 

 

 

3,000

 

 

 

—

 

Trading account

 

 

117,847

 

 

 

117,847

 

 

 

117,847

 

 

 

—

 

 

 

—

 

Investment securities

 

 

25,210,871

 

 

 

24,056,322

 

 

 

145,289

 

 

 

23,860,445

 

 

 

50,588

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans and leases

 

 

41,850,566

 

 

 

41,139,985

 

 

 

—

 

 

 

—

 

 

 

41,139,985

 

Commercial real estate loans

 

 

45,364,571

 

 

 

43,214,646

 

 

 

—

 

 

 

130,652

 

 

 

43,083,994

 

Residential real estate loans

 

 

23,755,947

 

 

 

21,780,214

 

 

 

—

 

 

 

7,049,540

 

 

 

14,730,674

 

Consumer loans

 

 

20,593,079

 

 

 

20,093,523

 

 

 

—

 

 

 

—

 

 

 

20,093,523

 

Allowance for credit losses

 

 

(1,925,331

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loans and leases, net

 

 

129,638,832

 

 

 

126,228,368

 

 

 

—

 

 

 

7,180,192

 

 

 

119,048,176

 

Accrued interest receivable

 

 

646,250

 

 

 

646,250

 

 

 

—

 

 

 

646,250

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

(65,501,860

)

 

 

(65,501,860

)

 

 

—

 

 

 

(65,501,860

)

 

 

—

 

Savings and interest-checking deposits

 

 

(87,911,463

)

 

 

(87,911,463

)

 

 

—

 

 

 

(87,911,463

)

 

 

—

 

Time deposits

 

 

(10,101,545

)

 

 

(10,143,110

)

 

 

—

 

 

 

(10,143,110

)

 

 

—

 

Short-term borrowings

 

 

(3,554,951

)

 

 

(3,554,951

)

 

 

—

 

 

 

(3,554,951

)

 

 

—

 

Long-term borrowings

 

 

(3,964,537

)

 

 

(3,926,489

)

 

 

—

 

 

 

(3,926,489

)

 

 

—

 

Accrued interest payable

 

 

(81,356

)

 

 

(81,356

)

 

 

—

 

 

 

(81,356

)

 

 

—

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to originate real estate
   loans for sale

 

$

(45,573

)

 

 

(45,573

)

 

 

—

 

 

 

—

 

 

 

(45,573

)

Commitments to sell real estate loans

 

 

54,424

 

 

 

54,424

 

 

 

—

 

 

 

54,424

 

 

 

—

 

Other credit-related commitments

 

 

(148,772

)

 

 

(148,772

)

 

 

—

 

 

 

—

 

 

 

(148,772

)

Interest rate swap agreements used
   for interest rate risk management

 

 

(7,892

)

 

 

(7,892

)

 

 

—

 

 

 

(7,892

)

 

 

—

 

Interest rate and foreign exchange
   contracts not designated as
   hedging instruments

 

 

(920,316

)

 

 

(920,316

)

 

 

—

 

 

 

(920,316

)

 

 

—

 

 

 

 

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

 

 

 

—