XML 44 R34.htm IDEA: XBRL DOCUMENT v3.23.1
Fair value measurements (Tables)
 3 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

The following tables present assets and liabilities at March 31, 2023 and December 31, 2022 measured at estimated fair value on a recurring basis:



 

 

Fair Value Measurements

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Trading account

 

$

165,216

 

 

$

113,646

 

 

$

51,570

 

 

$

—

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

7,732,699

 

 

 

—

 

 

 

7,732,699

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

648,194

 

 

 

—

 

 

 

648,194

 

 

 

—

 

Residential

 

 

2,493,705

 

 

 

—

 

 

 

2,493,705

 

 

 

—

 

Other debt securities

 

 

164,324

 

 

 

—

 

 

 

164,324

 

 

 

—

 

 

 

 

11,038,922

 

 

 

—

 

 

 

11,038,922

 

 

 

—

 

Equity securities

 

 

295,220

 

 

 

289,788

 

 

 

5,432

 

 

 

—

 

Real estate loans held for sale

 

 

473,478

 

 

 

—

 

 

 

473,478

 

 

 

—

 

Other assets (a)

 

 

362,945

 

 

 

—

 

 

 

356,078

 

 

 

6,867

 

Total assets

 

$

12,335,781

 

 

$

403,434

 

 

$

11,925,480

 

 

$

6,867

 

Other liabilities (a)

 

 

1,063,941

 

 

 

—

 

 

 

1,028,933

 

 

 

35,008

 

Total liabilities

 

$

1,063,941

 

 

$

—

 

 

$

1,028,933

 

 

$

35,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

(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 three months ended March 31, 2023 and 2022 were as follows:

 

 

Other Assets and Other Liabilities

 

 

2023

 

(In thousands)

 

 

 

 

 

 

 

Balance — January 1, 2023

 

$

(45,573

)

 

Total losses realized/unrealized:

 

 

 

 

Included in earnings

 

 

17,351

 

(a)

Transfers out of Level 3

 

 

81

 

(b)

Balance — March 31, 2023

 

$

(28,141

)

 

Changes in unrealized losses included in earnings related to instruments still held at March 31, 2023

 

$

17,386

 

(a)

 

 

 

 

 

2022

 

 

 

 

 

 

 

 

 

Balance — January 1, 2022

 

$

6,440

 

 

Total gains realized/unrealized:

 

 

 

 

Included in earnings

 

 

(18,700

)

(a)

Transfers out of Level 3

 

 

(3,168

)

(b)

Balance — March 31, 2022

 

$

(15,428

)

 

Changes in unrealized gains included in earnings related to instruments still held at March 31, 2022

 

$

(13,219

)

(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.

 

12. Fair value measurements, continued
Quantitative Information Related to Significant Unobservable Inputs

The following table presents quantitative information about significant unobservable inputs used in the fair value measurements for certain Level 3 assets and liabilities at March 31, 2023 and December 31, 2022:

 

 

Fair Value

 

 

Valuation
Technique

 

Unobservable
Inputs / Assumptions

 

Range
(Weighted-
Average)

 

 

(In thousands)

 

 

 

 

 

 

 

March 31, 2023

 

 

 

 

 

 

 

 

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

Net other assets (liabilities) (a)

 

$

(28,141

)

 

Discounted cash flow

 

Commitment expirations

 

0% - 95% (7%)

 

 

 

 

 

 

 

 

 

 

December 31, 2022

 

 

 

 

 

 

 

 

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

Net other assets (liabilities) (a)

 

$

(45,573

)

 

Discounted cash flow

 

Commitment expirations

 

0% - 97% (3%)

 

(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:

 

 

March 31, 2023

 


 

 

Carrying
Amount

 

 

Estimated
 Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,817,740

 

 

 

1,817,740

 

 

 

1,742,645

 

 

 

75,095

 

 

 

—

 

Interest-bearing deposits at banks

 

 

22,306,425

 

 

 

22,306,425

 

 

 

—

 

 

 

22,306,425

 

 

 

—

 

Trading account

 

 

165,216

 

 

 

165,216

 

 

 

113,646

 

 

 

51,570

 

 

 

—

 

Investment securities

 

 

28,443,209

 

 

 

27,446,099

 

 

 

289,788

 

 

 

27,105,863

 

 

 

50,448

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans and leases

 

 

43,758,361

 

 

 

42,992,625

 

 

 

—

 

 

 

—

 

 

 

42,992,625

 

Commercial real estate loans

 

 

45,072,541

 

 

 

42,870,814

 

 

 

—

 

 

 

321,473

 

 

 

42,549,341

 

Residential real estate loans

 

 

23,789,945

 

 

 

22,004,511

 

 

 

—

 

 

 

7,169,803

 

 

 

14,834,708

 

Consumer loans

 

 

20,316,845

 

 

 

19,514,964

 

 

 

—

 

 

 

—

 

 

 

19,514,964

 

Allowance for credit losses

 

 

(1,975,110

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loans and leases, net

 

 

130,962,582

 

 

 

127,382,914

 

 

 

—

 

 

 

7,491,276

 

 

 

119,891,638

 

Accrued interest receivable

 

 

693,011

 

 

 

693,011

 

 

 

—

 

 

 

693,011

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

(59,955,033

)

 

 

(59,955,033

)

 

 

—

 

 

 

(59,955,033

)

 

 

—

 

Savings and interest-checking deposits

 

 

(86,282,685

)

 

 

(86,282,685

)

 

 

—

 

 

 

(86,282,685

)

 

 

—

 

Time deposits

 

 

(12,837,522

)

 

 

(12,808,615

)

 

 

—

 

 

 

(12,808,615

)

 

 

—

 

Short-term borrowings

 

 

(6,995,302

)

 

 

(6,995,302

)

 

 

—

 

 

 

(6,995,302

)

 

 

—

 

Long-term borrowings

 

 

(7,462,890

)

 

 

(7,070,243

)

 

 

—

 

 

 

(7,070,243

)

 

 

—

 

Accrued interest payable

 

 

(182,906

)

 

 

(182,906

)

 

 

—

 

 

 

(182,906

)

 

 

—

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to originate real estate
   loans for sale

 

$

(28,141

)

 

 

(28,141

)

 

 

—

 

 

 

—

 

 

 

(28,141

)

Commitments to sell real estate loans

 

 

38,844

 

 

 

38,844

 

 

 

—

 

 

 

38,844

 

 

 

—

 

Other credit-related commitments

 

 

(152,513

)

 

 

(152,513

)

 

 

—

 

 

 

—

 

 

 

(152,513

)

Interest rate swap agreements used
   for interest rate risk management

 

 

11,250

 

 

 

11,250

 

 

 

—

 

 

 

11,250

 

 

 

—

 

Interest rate and foreign exchange
   contracts not designated as
   hedging instruments

 

 

(722,949

)

 

 

(722,949

)

 

 

—

 

 

 

(722,949

)

 

 

—

 

 

 

12. Fair value measurements, continued

 

 

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

)

 

 

—