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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present for each of the fair value hierarchy levels the Company’s financial assets and liabilities that are measured at fair value on a recurring basis in the consolidated balance sheets.

	December 31, 2019
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Available for sale debt securities:
U.S. Treasury and government agency securities	$	—	$	98,672	$	—	$	98,672
Municipal obligations		—		249,805		—		249,805
Corporate debt securities		—		7,988		—		7,988
Residential mortgage-backed securities		—		1,924,157		—		1,924,157
Commercial mortgage-backed securities		—		1,586,467		—		1,586,467
Collateralized mortgage obligations		—		808,215		—		808,215
Total available for sale securities		—		4,675,304		—		4,675,304
Derivative assets⁽¹⁾		—		54,446		—		54,446
Total recurring fair value measurements - assets	$	—	$	4,729,750	$	—	$	4,729,750
Liabilities		—				—
Derivative liabilities ⁽¹⁾	$	—	$	15,385	$	5,704	$	21,089
Total recurring fair value measurements - liabilities	$	—	$	15,385	$	5,704	$	21,089

(1)	For further disaggregation of derivative assets and liabilities, see Note 11 – Derivatives.

	December 31, 2018
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Available for sale debt securities:
U.S. Treasury and government agency securities	$	—	$	71,706	$	—	$	71,706
Municipal obligations		—		240,427		—		240,427
Corporate debt securities		—		3,500		—		3,500
Residential mortgage-backed securities		—		1,443,402		—		1,443,402
Commercial mortgage-backed securities		—		770,077		—		770,077
Collateralized mortgage obligations		—		161,925		—		161,925
Total available for sale securities		—		2,691,037		—		2,691,037
Derivative assets⁽¹⁾		—		16,980		—		16,980
Total recurring fair value measurements - assets	$	—		2,708,017	$	—		2,708,017
Liabilities						—
Derivative liabilities ⁽¹⁾	$	—	$	14,923	$	7,304	$	22,227
Total recurring fair value measurements - liabilities	$	—	$	14,923	$	7,304	$	22,227

(1)	For further disaggregation of derivative assets and liabilities, see Note 11 – Derivatives.

Consolidated Balance Sheets for Financial Instruments of Material Nature Measured at Fair Value on Recurring Basis

The table below presents a rollforward of the amounts on the consolidated balance sheet for the year ended December 31, 2019 for financial instruments of a material nature that are classified within Level 3 of the fair value hierarchy and are measured at fair value on a recurring basis:

(in thousands)
Balance at December 31, 2017	$	—
Entry into derivative contract		7,304
Balance at December 31, 2018		7,304
Cash settlements		(1,900	)
Losses included in earnings		300
Balance at December 31, 2019	$	5,704

Overview of the Valuation Techniques and Significant Unobservable Inputs

Level 3 Class

Fair Value at

December 31, 2019

Fair Value at

December 31, 2018

Valuation

Techniques

Unobservable

Input

Values

Utilized

VISA Class A Appreciation

6.0% - 18.0%

Other Derivative Liability

5,704

7,304

Discounted cash flow

Conversion rate

1.62x - 1.59x

Time until resolution

24 - 48 months

Financial Assets Measured at Fair Value on Nonrecurring Basis

The following table presents the Company’s financial assets that are measured at fair value on a nonrecurring basis for each of the fair value hierarchy levels:

	December 31, 2019
(in thousands)		Level 1			Level 2			Level 3			Total
Collateral dependent impaired loans	$		—	$		182,377	$		—	$		182,377
Other real estate owned and foreclosed assets			—			—			24,422			24,422
Total nonrecurring fair value measurements	$		—	$		182,377	$		24,422	$		206,799

	December 31, 2018
(in thousands)		Level 1			Level 2			Level 3			Total
Collateral dependent impaired loans	$		—	$		170,918	$		—	$		170,918
Other real estate owned			—			—			14,594			14,594
Total nonrecurring fair value measurements	$		—	$		170,918	$		14,594	$		185,512

Estimated Fair Values of Financial Instruments

The following tables present the estimated fair values of the Company’s financial instruments by fair value hierarchy levels and the corresponding carrying amount at December 31, 2019 and 2018.

	December 31, 2019
							Total		Carrying
(in thousands)	Level 1		Level 2		Level 3		Fair Value		Amount
Financial assets:
Cash, interest-bearing bank deposits, and federal funds sold	$	542,333	$	—	$	—	$	542,333	$	542,333
Available for sale securities		—		4,675,304		—		4,675,304		4,675,304
Held to maturity securities		—		1,611,004		—		1,611,004		1,568,009
Loans, net		—		182,377		20,861,702		21,044,079		21,021,504
Loans held for sale		—		55,864		—		55,864		55,864
Derivative financial instruments		—		54,446		—		54,446		54,446
Financial liabilities:
Deposits	$	—	$	—	$	23,786,775	$	23,786,775	$	23,803,575
Federal funds purchased		195,450		—		—		195,450		195,450
Securities sold under agreements to repurchase		484,422		—		—		484,422		484,422
Short-term FHLB Borrowings		2,035,000		—		—		2,035,000		2,035,000
Long-term debt		—		226,098		—		226,098		233,462
Derivative financial instruments		—		15,385		5,704		21,089		21,089

	December 31, 2018
							Total		Carrying
(in thousands)	Level 1		Level 2		Level 3		Fair Value		Amount
Financial assets:
Cash, interest-bearing bank deposits, and federal funds sold	$	494,466	$	—	$	—	$	494,466	$	494,466
Available for sale securities		—		2,961,037		—		2,961,037		2,691,037
Held to maturity securities		—		2,935,856		—		2,935,856		2,979,547
Loans, net		—		170,918		19,555,969		19,726,887		19,831,897
Loans held for sale		—		28,150		—		28,150		28,150
Derivative financial instruments		—		16,980		—		16,980		16,980
Financial liabilities:								—
Deposits	$	—	$	—	$	23,129,574	$	23,129,574	$	23,150,185
Federal funds purchased		425		—		—		425		425
Securities sold under agreements to repurchase		428,599		—		—		428,599		428,599
FHLB short-term borrowings		1,160,104		—		—		1,160,104		1,160,104
Long-term debt		—		223,135		—		223,135		224,993
Derivative financial instruments		—		14,923		7,304		22,227		22,227