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Fair Value (Tables)
3 Months Ended
Mar. 31, 2025
Fair Value  
Schedule of assets and liabilities measured at fair value on a recurring basis

    

Fair Value Measurements as of March 31, 2025

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

Mortgage-backed securities:

Residential - Government agency(1)

$

$

35,314

$

$

35,314

Residential - Government-sponsored enterprises(1)

727,417

727,417

Commercial - Government agency

195,766

195,766

Commercial - Government-sponsored enterprises

44,012

44,012

Commercial - Non-agency

22,005

22,005

Collateralized mortgage obligations:

Government agency

391,674

391,674

Government-sponsored enterprises

305,737

305,737

Collateralized loan obligations

136,503

136,503

Total available-for-sale securities

1,858,428

1,858,428

Other assets(2)

289

14,921

15,210

Liabilities

Other liabilities(3)

(6,885)

(2,300)

(9,185)

Total

$

289

$

1,866,464

$

(2,300)

$

1,864,453

(1)Backed by residential real estate.
(2)Other assets classified as Level 1 include money market funds that have quoted prices in active markets and are related to the Company’s deferred compensation plans. Other assets classified as Level 2 include derivative assets.
(3)Other liabilities include derivative liabilities.

    

Fair Value Measurements as of December 31, 2024

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

Government agency debt securities

$

$

8,147

$

$

8,147

Mortgage-backed securities:

Residential - Government agency(1)

35,859

35,859

Residential - Government-sponsored enterprises(1)

738,113

738,113

Commercial - Government agency

196,125

196,125

Commercial - Government-sponsored enterprises

44,908

44,908

Commercial - Non-agency

22,083

22,083

Collateralized mortgage obligations:

Government agency

397,124

397,124

Government-sponsored enterprises

310,682

310,682

Collateralized loan obligations

173,475

173,475

Total available-for-sale securities

1,926,516

1,926,516

Other assets(2)

179

13,598

13,777

Liabilities

Other liabilities(3)

(6,105)

(2,300)

(8,405)

Total

$

179

$

1,934,009

$

(2,300)

$

1,931,888

(1)Backed by residential real estate.
(2)Other assets classified as Level 1 include money market funds that have quoted prices in active markets and are related to the Company’s deferred compensation plans. Other assets classified as Level 2 include derivative assets.
(3)Other liabilities include derivative liabilities.
Significant unobservable inputs used in fair value measurements for Level 3 assets and liabilities measured at fair value on a recurring basis

Quantitative Information about Level 3 Fair Value Measurements at March 31, 2025

Significant

(dollars in thousands)

Fair value

  

Valuation Technique

  

Unobservable Input

  

Range

Collateral-dependent loans

$

19,955

Financial Statement Values

Discounts to reflect estimated selling costs

0% - 50%

Visa derivative

(2,300)

Discounted Cash Flow

Expected Conversion Rate - 1.5342(1)

1.4280-1.5342

Expected Term - 6 months(2)

n/m(2)

Growth Rate - 16%(3)

-9% - 41%

Quantitative Information about Level 3 Fair Value Measurements at December 31, 2024

Significant

(dollars in thousands)

Fair value

  

Valuation Technique

  

Unobservable Input

  

Range

Collateral-dependent loans

$

20,734

Financial Statement Values

Discounts to reflect estimated selling costs

0% - 50%

Visa derivative

(2,300)

Discounted Cash Flow

Expected Conversion Rate - 1.5430(1)

1.4444-1.5430

Expected Term - 6 months(2)

n/m(2)

Growth Rate - 7%(3)

-21% - 19%

(1)Due to the uncertainty in the movement of the conversion rate, the current conversion rate as of the respective consolidated balance sheet dates was utilized in the fair value calculation.
(2)The expected term was based on a February 2025 claim filing deadline and subsequent period for claims to be processed. As such, a range is not meaningful to disclose.
(3)The growth rate was based on the arithmetic average of analyst price targets.
Summary of changes in Level 3 liabilities measured at fair value on a recurring basis

Visa Derivative

(dollars in thousands)

2025

  

2024

Three Months Ended March 31, 

Balance as of January 1,

$

(2,300)

$

(2,300)

Total net losses included in other noninterest income

(1,292)

(1,476)

Settlements

1,292

1,476

Balance as of March 31, 

$

(2,300)

$

(2,300)

Total net losses included in net income attributable to the change in unrealized losses related to liabilities still held as of March 31, 

$

(1,292)

$

(1,476)

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

March 31, 2025

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

$

1,314,579

$

240,738

$

1,073,841

$

$

1,314,579

Investment securities held-to-maturity

3,724,908

3,250,275

3,250,275

Loans held for sale

1,547

1,547

1,547

Loans(1)

13,855,637

13,348,446

13,348,446

Financial liabilities:

Time deposits(2)

$

3,354,266

$

$

3,336,034

$

$

3,336,034

Short-term borrowings

250,000

249,578

249,578

December 31, 2024

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

$

1,170,190

$

258,057

$

912,133

$

$

1,170,190

Investment securities held-to-maturity

3,790,650

3,262,509

3,262,509

Loans(1)

13,973,608

13,373,785

13,373,785

Financial liabilities:

Time deposits(2)

$

3,298,370

$

$

3,280,119

$

$

3,280,119

Short-term borrowings

250,000

249,312

249,312

(1)Excludes financing leases of $437.4 million at March 31, 2025 and $434.7 million at December 31, 2024.
(2)Excludes deposit liabilities with no defined or contractual maturity of $16.9 billion as of March 31, 2025 and $17.0 billion as of December 31, 2024.
Schedule of assets with fair value adjustments on a nonrecurring basis

(dollars in thousands)

  

Level 1

  

Level 2

  

Level 3

March 31, 2025

Collateral-dependent loans

$

$

$

19,955

December 31, 2024

Collateral-dependent loans

$

$

$

20,734