XML 46 R34.htm IDEA: XBRL DOCUMENT v3.19.1
Fair value measurements (Tables)
 3 Months Ended
Mar. 31, 2019
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, 2019 and December 31, 2018 measured at estimated fair value on a recurring basis:

 

 

 

Fair Value Measurements

 

 

Level 1 (a)

 

 

Level 2 (a)

 

 

Level 3

 

 

 

(In thousands)

 

March 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading account assets

 

$

276,322

 

 

$

46,521

 

 

$

229,801

 

 

$

—

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

1,139,428

 

 

 

—

 

 

 

1,139,428

 

 

 

—

 

Obligations of states and political subdivisions

 

 

1,181

 

 

 

—

 

 

 

1,181

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

7,053,907

 

 

 

—

 

 

 

7,053,907

 

 

 

—

 

Privately issued

 

 

16

 

 

 

—

 

 

 

—

 

 

 

16

 

Other debt securities

 

 

131,052

 

 

 

—

 

 

 

131,052

 

 

 

—

 

 

 

 

8,325,584

 

 

 

—

 

 

 

8,325,568

 

 

 

16

 

Equity securities

 

 

76,586

 

 

 

43,301

 

 

 

33,285

 

 

 

—

 

Real estate loans held for sale

 

 

344,350

 

 

 

—

 

 

 

344,350

 

 

 

—

 

Other assets (b)

 

 

13,158

 

 

 

—

 

 

 

5,099

 

 

 

8,059

 

Total assets

 

$

9,036,000

 

 

$

89,822

 

 

$

8,938,103

 

 

$

8,075

 

Trading account liabilities

 

$

98,771

 

 

$

—

 

 

$

98,771

 

 

$

—

 

Other liabilities (b)

 

 

24,073

 

 

 

—

 

 

 

23,447

 

 

 

626

 

Total liabilities

 

$

122,844

 

 

$

—

 

 

$

122,218

 

 

$

626

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading account assets

 

$

185,584

 

 

$

46,018

 

 

$

139,566

 

 

$

—

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

1,336,931

 

 

 

—

 

 

 

1,336,931

 

 

 

—

 

Obligations of states and political subdivisions

 

 

1,659

 

 

 

—

 

 

 

1,659

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

7,216,991

 

 

 

—

 

 

 

7,216,991

 

 

 

—

 

Privately issued

 

 

22

 

 

 

—

 

 

 

—

 

 

 

22

 

Other debt securities

 

 

126,906

 

 

 

—

 

 

 

126,906

 

 

 

—

 

 

 

 

8,682,509

 

 

 

—

 

 

 

8,682,487

 

 

 

22

 

Equity securities

 

 

93,917

 

 

 

71,989

 

 

 

21,928

 

 

 

—

 

Real estate loans held for sale

 

 

551,697

 

 

 

—

 

 

 

551,697

 

 

 

—

 

Other assets (b)

 

 

19,626

 

 

 

—

 

 

 

10,322

 

 

 

9,304

 

Total assets

 

$

9,533,333

 

 

$

118,007

 

 

$

9,406,000

 

 

$

9,326

 

Trading account liabilities

 

$

178,125

 

 

$

—

 

 

$

178,125

 

 

$

—

 

Other liabilities (b)

 

 

12,561

 

 

 

—

 

 

 

10,969

 

 

 

1,592

 

Total liabilities

 

$

190,686

 

 

$

—

 

 

$

189,094

 

 

$

1,592

 

 

(a)

There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the three months ended March 31, 2019 and the year ended December 31, 2018.                                        

(b)

Comprised predominantly of interest rate swap agreements used for interest rate risk management (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, 2019 and 2018 were as follows:

 

 

 

Investment

Securities

Available for Sale

 

 

 

 

 

 

 

 

Privately Issued Mortgage-Backed Securities

 

 

Other Assets and Other Liabilities

 

 

2019

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Balance — January 1, 2019

 

$

22

 

 

 

7,712

 

 

Total gains (losses) realized/unrealized:

 

 

 

 

 

 

 

 

 

Included in earnings

 

 

—

 

 

 

16,546

 

(b)

Settlements

 

 

(6

)

 

 

—

 

 

Transfers out of Level 3 (a)

 

 

—

 

 

 

(16,825

)

(c)

Balance — March 31, 2019

 

$

16

 

 

 

7,433

 

 

Changes in unrealized gains included in earnings

   related to assets still held at March 31, 2019

 

$

—

 

 

 

8,525

 

(b)

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance — January 1, 2018

 

$

28

 

 

 

8,303

 

 

Total gains (losses) realized/unrealized:

 

 

 

 

 

 

 

 

 

Included in earnings

 

 

—

 

 

 

8,130

 

(b)

Settlements

 

 

(1

)

 

 

—

 

 

Transfers out of Level 3 (a)

 

 

—

 

 

 

(7,673

)

(c)

Balance — March 31, 2018

 

$

27

 

 

 

8,760

 

 

Changes in unrealized gains included in earnings

   related to assets still held at March 31, 2018

 

$

—

 

 

 

8,778

 

(b)

(a)

The Company’s policy for transfers between fair value levels is to recognize the transfer as of the actual date of the event or change in circumstances that caused the transfer.

(b)

Reported as mortgage banking revenues in the consolidated statement of income and includes the fair value of commitment issuances and expirations.

(c)

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 certain Level 3 assets and liabilities at March 31, 2019 and December 31, 2018:

 

 

 

Fair Value

 

 

Valuation

Technique

 

Unobservable

Inputs/Assumptions

 

 

Range

(Weighted-

Average)

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

March 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Privately issued mortgage-backed

   securities

 

$

16

 

 

Two independent pricing quotes

 

 

—

 

 

 

—

 

Net other assets (liabilities) (a)

 

 

7,433

 

 

Discounted cash flow

 

Commitment expirations

 

 

0%-94% (17%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Privately issued mortgage-backed

   securities

 

$

22

 

 

Two independent pricing quotes

 

 

—

 

 

 

—

 

Net other assets (liabilities) (a)

 

 

7,712

 

 

Discounted cash flow

 

Commitment expirations

 

 

0%-95% (13%)

 

 

(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 table:

 

 

 

March 31, 2019

 

 

 

Carrying

Amount

 

 

Estimated

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,267,260

 

 

 

1,267,260

 

 

 

1,194,318

 

 

 

72,942

 

 

 

—

 

Interest-bearing deposits at banks

 

 

7,602,897

 

 

 

7,602,897

 

 

 

—

 

 

 

7,602,897

 

 

 

—

 

Trading account assets

 

 

276,322

 

 

 

276,322

 

 

 

46,521

 

 

 

229,801

 

 

 

—

 

Investment securities

 

 

12,536,840

 

 

 

12,521,737

 

 

 

43,301

 

 

 

12,378,816

 

 

 

99,620

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans and leases

 

 

23,090,204

 

 

 

22,755,670

 

 

 

—

 

 

 

—

 

 

 

22,755,670

 

Commercial real estate loans

 

 

34,690,930

 

 

 

34,424,612

 

 

 

—

 

 

 

166,019

 

 

 

34,258,593

 

Residential real estate loans

 

 

16,769,933

 

 

 

16,764,418

 

 

 

—

 

 

 

3,877,095

 

 

 

12,887,323

 

Consumer loans

 

 

14,088,816

 

 

 

14,018,581

 

 

 

—

 

 

 

—

 

 

 

14,018,581

 

Allowance for credit losses

 

 

(1,019,337

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loans and leases, net

 

 

87,620,546

 

 

 

87,963,281

 

 

 

—

 

 

 

4,043,114

 

 

 

83,920,167

 

Accrued interest receivable

 

 

374,084

 

 

 

374,084

 

 

 

—

 

 

 

374,084

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

(29,966,753

)

 

 

(29,966,753

)

 

 

—

 

 

 

(29,966,753

)

 

 

—

 

Savings and interest-checking deposits

 

 

(52,932,297

)

 

 

(52,932,297

)

 

 

—

 

 

 

(52,932,297

)

 

 

—

 

Time deposits

 

 

(6,501,509

)

 

 

(6,598,274

)

 

 

—

 

 

 

(6,598,274

)

 

 

—

 

Deposits at Cayman Islands office

 

 

(1,069,191

)

 

 

(1,069,191

)

 

 

—

 

 

 

(1,069,191

)

 

 

—

 

Short-term borrowings

 

 

(3,602,566

)

 

 

(3,602,566

)

 

 

—

 

 

 

(3,602,566

)

 

 

—

 

Long-term borrowings

 

 

(8,476,024

)

 

 

(8,511,141

)

 

 

—

 

 

 

(8,511,141

)

 

 

—

 

Accrued interest payable

 

 

(80,322

)

 

 

(80,322

)

 

 

—

 

 

 

(80,322

)

 

 

—

 

Trading account liabilities

 

 

(98,771

)

 

 

(98,771

)

 

 

—

 

 

 

(98,771

)

 

 

—

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to originate real estate

   loans for sale

 

$

7,433

 

 

 

7,433

 

 

 

—

 

 

 

—

 

 

 

7,433

 

Commitments to sell real estate loans

 

 

(1,424

)

 

 

(1,424

)

 

 

—

 

 

 

(1,424

)

 

 

—

 

Other credit-related commitments

 

 

(126,811

)

 

 

(126,811

)

 

 

—

 

 

 

—

 

 

 

(126,811

)

Interest rate swap agreements used for interest

   rate risk management

 

 

(16,924

)

 

 

(16,924

)

 

 

—

 

 

 

(16,924

)

 

 

—

 

 

 

 

December 31, 2018

 

 

 

Carrying

Amount

 

 

Estimated

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

 

 

 

 

(In thousands)

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,605,439

 

 

 

1,605,439

 

 

 

1,528,302

 

 

 

77,137

 

 

 

—

 

Interest-bearing deposits at banks

 

 

8,105,197

 

 

 

8,105,197

 

 

 

—

 

 

 

8,105,197

 

 

 

—

 

Trading account assets

 

 

185,584

 

 

 

185,584

 

 

 

46,018

 

 

 

139,566

 

 

 

—

 

Investment securities

 

 

12,692,813

 

 

 

12,631,656

 

 

 

71,989

 

 

 

12,456,467

 

 

 

103,200

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans and leases

 

 

22,977,976

 

 

 

22,587,387

 

 

 

—

 

 

 

—

 

 

 

22,587,387

 

Commercial real estate loans

 

 

34,363,556

 

 

 

33,832,558

 

 

 

—

 

 

 

346,775

 

 

 

33,485,783

 

Residential real estate loans

 

 

17,154,446

 

 

 

16,974,545

 

 

 

—

 

 

 

3,920,447

 

 

 

13,054,098

 

Consumer loans

 

 

13,970,499

 

 

 

13,819,545

 

 

 

—

 

 

 

—

 

 

 

13,819,545

 

Allowance for credit losses

 

 

(1,019,444

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loans and leases, net

 

 

87,447,033

 

 

 

87,214,035

 

 

 

—

 

 

 

4,267,222

 

 

 

82,946,813

 

Accrued interest receivable

 

 

353,965

 

 

 

353,965

 

 

 

—

 

 

 

353,965

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

(32,256,668

)

 

 

(32,256,668

)

 

 

—

 

 

 

(32,256,668

)

 

 

—

 

Savings and interest-checking deposits

 

 

(50,963,744

)

 

 

(50,963,744

)

 

 

—

 

 

 

(50,963,744

)

 

 

—

 

Time deposits

 

 

(6,124,254

)

 

 

(6,201,957

)

 

 

—

 

 

 

(6,201,957

)

 

 

—

 

Deposits at Cayman Islands office

 

 

(811,906

)

 

 

(811,906

)

 

 

—

 

 

 

(811,906

)

 

 

—

 

Short-term borrowings

 

 

(4,398,378

)

 

 

(4,398,378

)

 

 

—

 

 

 

(4,398,378

)

 

 

—

 

Long-term borrowings

 

 

(8,444,914

)

 

 

(8,385,289

)

 

 

—

 

 

 

(8,385,289

)

 

 

—

 

Accrued interest payable

 

 

(95,274

)

 

 

(95,274

)

 

 

—

 

 

 

(95,274

)

 

 

—

 

Trading account liabilities

 

 

(178,125

)

 

 

(178,125

)

 

 

—

 

 

 

(178,125

)

 

 

—

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to originate real estate

   loans for sale

 

$

7,712

 

 

 

7,712

 

 

 

—

 

 

 

—

 

 

 

7,712

 

Commitments to sell real estate loans

 

 

(6,177

)

 

 

(6,177

)

 

 

—

 

 

 

(6,177

)

 

 

—

 

Other credit-related commitments

 

 

(131,688

)

 

 

(131,688

)

 

 

—

 

 

 

—

 

 

 

(131,688

)

Interest rate swap agreements used for interest

   rate risk management

 

 

5,530

 

 

 

5,530

 

 

 

—

 

 

 

5,530

 

 

 

—