XML 44 R33.htm IDEA: XBRL DOCUMENT v3.21.1
Fair value measurements (Tables)
 3 Months Ended
Mar. 31, 2021
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, 2021 and December 31, 2020 measured at estimated fair value on a recurring basis:

 

 

 

Fair Value Measurements

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading account assets

 

$

687,359

 

 

$

49,115

 

 

$

638,244

 

 

$

—

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

7,013

 

 

 

—

 

 

 

7,013

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

4,225,089

 

 

 

—

 

 

 

4,225,089

 

 

 

—

 

Privately issued

 

 

16

 

 

 

—

 

 

 

—

 

 

 

16

 

Other debt securities

 

 

132,319

 

 

 

—

 

 

 

132,319

 

 

 

—

 

 

 

 

4,364,437

 

 

 

—

 

 

 

4,364,421

 

 

 

16

 

Equity securities

 

 

81,792

 

 

 

64,150

 

 

 

17,642

 

 

 

—

 

Real estate loans held for sale

 

 

871,026

 

 

 

—

 

 

 

871,026

 

 

 

—

 

Other assets (a)

 

 

65,542

 

 

 

—

 

 

 

42,621

 

 

 

22,921

 

Total assets

 

$

6,070,156

 

 

$

113,265

 

 

$

5,933,954

 

 

$

22,937

 

Trading account liabilities

 

$

95,239

 

 

$

—

 

 

$

95,239

 

 

$

—

 

Other liabilities (a)

 

 

18,281

 

 

 

—

 

 

 

9,117

 

 

 

9,164

 

Total liabilities

 

$

113,520

 

 

$

—

 

 

$

104,356

 

 

$

9,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading account assets

 

$

1,068,581

 

 

$

50,060

 

 

$

1,018,521

 

 

$

—

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

9,338

 

 

 

—

 

 

 

9,338

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

4,683,438

 

 

 

—

 

 

 

4,683,438

 

 

 

—

 

Privately issued

 

 

16

 

 

 

—

 

 

 

—

 

 

 

16

 

Other debt securities

 

 

129,814

 

 

 

—

 

 

 

129,814

 

 

 

—

 

 

 

 

4,822,606

 

 

 

—

 

 

 

4,822,590

 

 

 

16

 

Equity securities

 

 

92,985

 

 

 

63,129

 

 

 

29,856

 

 

 

—

 

Real estate loans held for sale

 

 

1,054,676

 

 

 

—

 

 

 

1,054,676

 

 

 

—

 

Other assets (a)

 

 

49,464

 

 

 

—

 

 

 

5,865

 

 

 

43,599

 

Total assets

 

$

7,088,312

 

 

$

113,189

 

 

$

6,931,508

 

 

$

43,615

 

Trading account liabilities

 

$

116,902

 

 

$

—

 

 

$

116,902

 

 

$

—

 

Other liabilities (a)

 

 

23,583

 

 

 

—

 

 

 

23,218

 

 

 

365

 

Total liabilities

 

$

140,485

 

 

$

—

 

 

$

140,120

 

 

$

365

 

 

 (a)

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 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 March 31, 2021 and 2020 were as follows:

 

 

Investment

Securities

Available for Sale

 

 

 

 

 

 

 

 

Privately Issued Mortgage-Backed Securities

 

 

Other Assets and Other Liabilities

 

 

2021

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Balance — January 1, 2021

 

$

16

 

 

 

43,234

 

 

Total gains realized/unrealized:

 

 

 

 

 

 

 

 

 

Included in earnings

 

 

—

 

 

 

6,025

 

(a)

Transfers out of Level 3

 

 

—

 

 

 

(35,502

)

(b)

Balance — March 31, 2021

 

$

16

 

 

 

13,757

 

 

Changes in unrealized gains included in earnings

   related to assets still held at March 31, 2021

 

$

—

 

 

 

5,300

 

(a)

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance — January 1, 2020

 

$

16

 

 

 

10,740

 

 

Total gains realized/unrealized:

 

 

 

 

 

 

 

 

 

Included in earnings

 

 

—

 

 

 

44,081

 

(a)

Transfers out of Level 3

 

 

—

 

 

 

(19,794

)

(b)

Balance — March 31, 2020

 

$

16

 

 

 

35,027

 

 

Changes in unrealized gains included in earnings

   related to assets still held at March 31, 2020

 

$

—

 

 

 

32,584

 

(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 tables present quantitative information about significant unobservable inputs used in the fair value measurements for certain Level 3 assets and liabilities at March 31, 2021 and December 31, 2020:

 

 

 

Fair Value

 

 

Valuation

Technique

 

Unobservable

Inputs/Assumptions

 

 

Range

(Weighted-

Average)

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

March 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Privately issued mortgage-

   backed securities

 

$

16

 

 

Two independent pricing quotes

 

 

—

 

 

 

—

 

Net other assets (liabilities) (a)

 

 

13,757

 

 

Discounted cash flow

 

Commitment expirations

 

 

0% - 98% (18%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring fair value measurements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Privately issued mortgage-

   backed securities

 

$

16

 

 

Two independent pricing quotes

 

 

—

 

 

 

—

 

Net other assets (liabilities) (a)

 

 

43,234

 

 

Discounted cash flow

 

Commitment expirations

 

 

0% - 98% (16%)

 

(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, 2021

 

 

 

Carrying

Amount

 

 

Estimated

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,258,989

 

 

 

1,258,989

 

 

 

1,213,877

 

 

 

45,112

 

 

 

—

 

Interest-bearing deposits at banks

 

 

31,407,227

 

 

 

31,407,227

 

 

 

—

 

 

 

31,407,227

 

 

 

—

 

Federal funds sold

 

 

1,000

 

 

 

1,000

 

 

 

—

 

 

 

1,000

 

 

 

—

 

Trading account assets

 

 

687,359

 

 

 

687,359

 

 

 

49,115

 

 

 

638,244

 

 

 

—

 

Investment securities

 

 

6,610,667

 

 

 

6,682,742

 

 

 

64,150

 

 

 

6,551,036

 

 

 

67,556

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans and leases

 

 

27,811,190

 

 

 

27,509,182

 

 

 

—

 

 

 

—

 

 

 

27,509,182

 

Commercial real estate loans

 

 

37,425,974

 

 

 

36,661,758

 

 

 

—

 

 

 

98,513

 

 

 

36,563,245

 

Residential real estate loans

 

 

17,349,683

 

 

 

17,501,398

 

 

 

—

 

 

 

4,015,464

 

 

 

13,485,934

 

Consumer loans

 

 

16,712,233

 

 

 

16,781,406

 

 

 

—

 

 

 

—

 

 

 

16,781,406

 

Allowance for credit losses

 

 

(1,636,206

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loans and leases, net

 

 

97,662,874

 

 

 

98,453,744

 

 

 

—

 

 

 

4,113,977

 

 

 

94,339,767

 

Accrued interest receivable

 

 

440,658

 

 

 

440,658

 

 

 

—

 

 

 

440,658

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

(53,641,419

)

 

 

(53,641,419

)

 

 

—

 

 

 

(53,641,419

)

 

 

—

 

Savings and interest-checking deposits

 

 

(70,679,036

)

 

 

(70,679,036

)

 

 

—

 

 

 

(70,679,036

)

 

 

—

 

Time deposits

 

 

(3,514,219

)

 

 

(3,526,947

)

 

 

—

 

 

 

(3,526,947

)

 

 

—

 

Deposits at Cayman Islands office

 

 

(641,691

)

 

 

(641,691

)

 

 

—

 

 

 

(641,691

)

 

 

—

 

Short-term borrowings

 

 

(58,957

)

 

 

(58,957

)

 

 

—

 

 

 

(58,957

)

 

 

—

 

Long-term borrowings

 

 

(3,498,503

)

 

 

(3,609,625

)

 

 

—

 

 

 

(3,609,625

)

 

 

—

 

Accrued interest payable

 

 

(43,745

)

 

 

(43,745

)

 

 

—

 

 

 

(43,745

)

 

 

—

 

Trading account liabilities

 

 

(95,239

)

 

 

(95,239

)

 

 

—

 

 

 

(95,239

)

 

 

—

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to originate real estate

   loans for sale

 

$

13,757

 

 

 

13,757

 

 

 

—

 

 

 

—

 

 

 

13,757

 

Commitments to sell real estate loans

 

 

36,698

 

 

 

36,698

 

 

 

—

 

 

 

36,698

 

 

 

—

 

Other credit-related commitments

 

 

(134,928

)

 

 

(134,928

)

 

 

—

 

 

 

—

 

 

 

(134,928

)

Interest rate swap agreements used for

   interest rate risk management

 

 

(3,194

)

 

 

(3,194

)

 

 

—

 

 

 

(3,194

)

 

 

—

 

12. Fair value measurements, continued

 

 

 

December 31, 2020

 

 

 

Carrying

Amount

 

 

Estimated

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

 

 

 

 

(In thousands)

 

 

 

 

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,552,743

 

 

 

1,552,743

 

 

 

1,497,457

 

 

 

55,286

 

 

 

—

 

Interest-bearing deposits at banks

 

 

23,663,810

 

 

 

23,663,810

 

 

 

—

 

 

 

23,663,810

 

 

 

—

 

Trading account assets

 

 

1,068,581

 

 

 

1,068,581

 

 

 

50,060

 

 

 

1,018,521

 

 

 

—

 

Investment securities

 

 

7,045,697

 

 

 

7,138,989

 

 

 

63,129

 

 

 

7,005,571

 

 

 

70,289

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans and leases

 

 

27,574,564

 

 

 

27,220,699

 

 

 

—

 

 

 

—

 

 

 

27,220,699

 

Commercial real estate loans

 

 

37,637,889

 

 

 

36,816,580

 

 

 

—

 

 

 

277,911

 

 

 

36,538,669

 

Residential real estate loans

 

 

16,752,993

 

 

 

17,089,141

 

 

 

—

 

 

 

4,135,655

 

 

 

12,953,486

 

Consumer loans

 

 

16,570,421

 

 

 

16,554,050

 

 

 

—

 

 

 

—

 

 

 

16,554,050

 

Allowance for credit losses

 

 

(1,736,387

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loans and leases, net

 

 

96,799,480

 

 

 

97,680,470

 

 

 

—

 

 

 

4,413,566

 

 

 

93,266,904

 

Accrued interest receivable

 

 

419,936

 

 

 

419,936

 

 

 

—

 

 

 

419,936

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

(47,572,884

)

 

 

(47,572,884

)

 

 

—

 

 

 

(47,572,884

)

 

 

—

 

Savings and interest-checking deposits

 

 

(67,680,840

)

 

 

(67,680,840

)

 

 

—

 

 

 

(67,680,840

)

 

 

—

 

Time deposits

 

 

(3,899,910

)

 

 

(3,919,367

)

 

 

—

 

 

 

(3,919,367

)

 

 

—

 

Deposits at Cayman Islands office

 

 

(652,104

)

 

 

(652,104

)

 

 

—

 

 

 

(652,104

)

 

 

—

 

Short-term borrowings

 

 

(59,482

)

 

 

(59,482

)

 

 

—

 

 

 

(59,482

)

 

 

—

 

Long-term borrowings

 

 

(4,382,193

)

 

 

(4,490,433

)

 

 

—

 

 

 

(4,490,433

)

 

 

—

 

Accrued interest payable

 

 

(59,916

)

 

 

(59,916

)

 

 

—

 

 

 

(59,916

)

 

 

—

 

Trading account liabilities

 

 

(116,902

)

 

 

(116,902

)

 

 

—

 

 

 

(116,902

)

 

 

—

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to originate real estate

   loans for sale

 

$

43,234

 

 

 

43,234

 

 

 

—

 

 

 

—

 

 

 

43,234

 

Commitments to sell real estate loans

 

 

(18,429

)

 

 

(18,429

)

 

 

—

 

 

 

(18,429

)

 

 

—

 

Other credit-related commitments

 

 

(133,354

)

 

 

(133,354

)

 

 

—

 

 

 

—

 

 

 

(133,354

)

Interest rate swap agreements used

   for interest rate risk management

 

 

1,076

 

 

 

1,076

 

 

 

—

 

 

 

1,076

 

 

 

—