XML 55 R44.htm IDEA: XBRL DOCUMENT

Fair Value (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value

Schedule of assets and liabilities measured at fair value on a recurring basis

Fair Value Measurements as of June 30, 2020

Quoted Prices in

Significant

Active Markets for

Other

Significant

Identical Assets

Observable

Unobservable

(dollars in thousands)

(Level 1)

Inputs (Level 2)

Inputs (Level 3)

Total

Assets

U.S. Treasury and government agency debt securities

—

94,918

—

94,918

Mortgage-backed securities:

Residential - Government agency⁽¹⁾

—

232,617

—

232,617

Residential - Government-sponsored enterprises⁽¹⁾

—

390,912

—

390,912

Commercial - Government agency

—

629,679

—

629,679

Commercial - Government-sponsored enterprises

—

322,996

—

322,996

Collateralized mortgage obligations:

Government agency

—

1,926,584

—

1,926,584

Government-sponsored enterprises

—

1,538,069

—

1,538,069

Total available-for-sale securities

—

5,135,775

—

5,135,775

Other assets⁽²⁾

—

170,611

—

170,611

Liabilities

Other liabilities⁽³⁾

—

(1,616)

(2,095)

(3,711)

Total

—

5,304,770

(2,095)

5,302,675

(1)	Backed by residential real estate.

(2)	Other assets include derivative assets.

(3)	Other liabilities include derivative liabilities.


	Fair Value Measurements as of December 31, 2019
	Quoted Prices in		Significant
	Active Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
(dollars in thousands)	(Level 1)		Inputs (Level 2)		Inputs (Level 3)		Total
Assets
U.S. Treasury securities	$	—	$	29,888	$	—	$	29,888
Government-sponsored enterprises debt securities		—		101,439		—		101,439
Mortgage-backed securities:
Residential - Government agency⁽¹⁾		—		291,209		—		291,209
Residential - Government-sponsored enterprises⁽¹⁾		—		399,492		—		399,492
Commercial - Government-sponsored enterprises		—		101,719		—		101,719
Collateralized mortgage obligations:
Government agency		—		2,381,278		—		2,381,278
Government-sponsored enterprises		—		770,619		—		770,619
Total available-for-sale securities		—		4,075,644		—		4,075,644
Other assets⁽²⁾		—		63,539		—		63,539
Liabilities
Other liabilities⁽³⁾		—		(682)		(4,233)		(4,915)
Total	$	—	$	4,138,501	$	(4,233)	$	4,134,268

(1)	Backed by residential real estate.

(2)	Other assets include derivative assets.

(3)	Other liabilities include derivative liabilities.

Summary of changes in Level 3 liabilities measured at fair value on a recurring basis


	Visa Derivative
(dollars in thousands)	2020		2019
Three Months Ended June 30,
Balance as of April 1,	$	(3,199)	$	(1,839)
Total net gains (losses) included in other noninterest income		103		(247)
Settlements		1,001		907
Balance as of June 30,	$	(2,095)	$	(1,179)
Total net gains (losses) included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of June 30,	$	103	$	(247)

Six Months Ended June 30,
Balance as of January 1,	$	(4,233)	$	(2,607)
Total net gains (losses) included in other noninterest income		109		(242)
Settlements		2,029		1,670
Balance as of June 30,	$	(2,095)	$	(1,179)
Total net gains (losses) included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of June 30,	$	109	$	(242)

Summary of estimated fair value of financial instruments not required to be carried at fair value on a recurring basis

June 30, 2020

Fair Value Measurements

Quoted Prices in

Significant

Active Markets

Other

Unobservable

for Identical

Observable

Inputs

(dollars in thousands)

Book Value

Assets (Level 1)

Inputs (Level 2)

(Level 3)

Total

Financial assets:

Cash and cash equivalents

1,855,222

347,592

1,507,630

—

1,855,222

Loans held for sale

6,698

—

6,698

—

6,698

Loans⁽¹⁾

13,525,743

—

13,832,005

Financial liabilities:

Time deposits⁽²⁾

3,506,665

—

3,520,718

—

3,520,718

Short-term borrowings

200,000

—

200,286

—

200,286

Long-term borrowings⁽³⁾

200,000

—

216,394

—

216,394


	December 31, 2019
			Fair Value Measurements
			Quoted Prices in		Significant		Significant
			Active Markets		Other		Unobservable
			for Identical		Observable		Inputs
(dollars in thousands)	Book Value		Assets (Level 1)		Inputs (Level 2)		(Level 3)		Total
Financial assets:
Cash and cash equivalents	$	694,017	$	360,375	$	333,642	$	—	$	694,017
Loans held for sale		904		—		904		—		904
Loans⁽¹⁾		13,009,167		—		—		13,140,898		13,140,898

Financial liabilities:
Time deposits⁽²⁾	$	2,510,157	$	—	$	2,501,478	$	—	$	2,501,478
Short-term borrowings		400,000		—		401,709		—		401,709
Long-term borrowings⁽³⁾		200,000		—		207,104		—		207,104

(1)	Excludes financing leases of $238.3 million at June 30, 2020 and $202.5 million at December 31, 2019.

(2)	Excludes deposit liabilities with no defined or contractual maturity of $15.9 billion as of June 30, 2020 and $13.9 billion as of December 31, 2019.

(3)	Excludes capital lease obligations of $19 thousand as of both June 30, 2020 and December 31, 2019.

Schedule of assets with fair value adjustments on a nonrecurring basis


(dollars in thousands)	Level 1		Level 2		Level 3
June 30, 2020
Collateral-dependent loans	$	—	$	—	$	1,840
December 31, 2019
Collateral-dependent loans	$	—	$	—	$	1,502

Significant unobservable inputs used in fair value measurements for Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis


	Quantitative Information about Level 3 Fair Value Measurements at June 30, 2020
				Significant
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	Range
Collateral-dependent loans	$	1,840	Appraisal Value	Appraisal Value	n/m⁽¹⁾
Visa derivative	$	(2,095)	Discounted Cash Flow	Expected Conversation Rate - 1.6228⁽²⁾	1.5977-1.6228
				Expected Term - 1 year⁽³⁾	0.5 to 1.5 years
				Growth Rate - 13%⁽⁴⁾	4% - 17%

(1)	The fair value of these assets is determined based on appraised values of the collateral or broker opinions, the range of which is not meaningful to disclose.

(2)	Due to the uncertainty in the movement of the conversion rate, the current conversion rate was utilized in the fair value calculation.

(3)	The expected term of 1 year was based on the median of 0.5 to 1.5 years.

(4)	The growth rate of 13% was based on the arithmetic average of analyst price targets.


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2019
				Significant
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input
Collateral-dependent loans	$	1,502	Appraisal Value	Appraisal Value
Visa derivative	$	(4,233)	Discounted Cash Flow	Expected Conversion Rate - 1.6228
				Expected Term - 1 year
				Growth Rate - 13%