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Estimated Fair Values (Tables)
9 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Estimated Fair Values For Certain Financial Assets And Financial Liabilities
The table presents the carrying values and estimated fair values for financial instruments as of September 30, 2020 and December 31, 2019:
(Dollars in thousands)September 30, 2020December 31, 2019
Carrying valueFair valueCarrying valueFair value
Cash and due from banks$352,419 $352,419 $376,719 $376,719 
Overnight investments3,137,945 3,137,945 1,107,844 1,107,844 
Investment in marketable equity securities93,074 93,074 82,333 82,333 
Investment securities available for sale9,019,788 9,019,788 7,059,674 7,059,674 
Investment securities held to maturity747,732 761,252 30,996 30,996 
Loans held for sale120,305 120,305 67,869 67,869 
Net loans and leases32,621,208 33,269,733 28,656,355 28,878,550 
Income earned not collected151,737 151,737 123,154 123,154 
Federal Home Loan Bank stock45,392 45,392 43,039 43,039 
Mortgage and other servicing rights19,484 20,313 24,891 26,927 
Deposits with no stated maturity39,110,297 39,110,297 30,593,627 30,593,627 
Time deposits3,140,309 3,162,058 3,837,609 3,842,162 
Securities sold under customer repurchase agreements693,889 693,889 442,956 442,956 
Federal Home Loan Bank borrowings655,179 680,718 572,185 577,362 
Subordinated debt504,381 509,518 163,412 173,685 
Other borrowings92,456 92,794 148,318 149,232 
FDIC shared-loss payable15,313 15,789 112,395 114,252 
Accrued interest payable10,477 10,477 18,124 18,124 
Assets And Liabilities Carried At Fair Value On A Recurring Basis
For assets and liabilities carried at fair value on a recurring basis, the following table provides fair value information as of September 30, 2020 and December 31, 2019:
September 30, 2020
  Fair value measurements using:
(Dollars in thousands)Fair valueLevel 1 inputsLevel 2 inputsLevel 3 inputs
Assets measured at fair value
Investment securities available for sale
U.S. Treasury$654,762 $— $654,762 $— 
Government agency654,941 — 654,941 — 
Residential mortgage-backed securities6,069,668 — 6,069,668 — 
Commercial mortgage-backed securities1,090,210 — 1,090,210 — 
Corporate bonds550,207 — 299,493 250,714 
Total investment securities available for sale$9,019,788 $— $8,769,074 $250,714 
Marketable equity securities$93,074 $38,192 $54,882 $— 
Loans held for sale$120,305 $— $120,305 $— 
December 31, 2019
 Fair value measurements using:
Fair valueLevel 1 inputsLevel 2 inputsLevel 3 inputs
Assets measured at fair value
Investment securities available for sale
U.S. Treasury$409,999 $— $409,999 $— 
Government agency682,772 — 682,772 — 
Residential mortgage-backed securities5,267,090 — 5,267,090 — 
Commercial mortgage-backed securities380,020 — 380,020 — 
Corporate bonds201,566 — 131,881 69,685 
State, county and municipal118,227 — 118,227 — 
Total investment securities available for sale$7,059,674 $— $6,989,989 $69,685 
Marketable equity securities$82,333 $29,458 $52,875 $— 
Loans held for sale$67,869 $— $67,869 $— 
Fair Value of Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following tables summarize activity for Level 3 assets:
Corporate bonds
Three months ended September 30Nine months ended September 30
(Dollars in thousands)2020201920202019
Beginning balance$169,977 $149,137 $69,685 $143,226 
Purchases78,000 8,000 178,595 11,991 
Unrealized net gains included in other comprehensive income2,818 1,147 901 2,985 
Amounts included in net income(81)41 (249)123 
Transfers in— — 1,782 — 
Ending balance$250,714 $157,325 $250,714 $157,325 
Fair Value Level 3 Significant Unobservable Input Assumptions
(Dollars in thousands)September 30, 2020
Level 3 assetsValuation techniqueSignificant unobservable inputFair Value
Corporate bondsIndicative bid provided by brokerMultiple factors, including but not limited to, current operations, financial condition, cash flows, and recently executed financing transactions related to the issuer$250,714 
Fair Value Option
The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for residential real estate originated for sale measured at fair value as of September 30, 2020 and December 31, 2019:
September 30, 2020
(Dollars in thousands)Fair valueAggregate unpaid principal balanceDifference
Originated loans held for sale$120,305 $114,100 $6,205 
December 31, 2019
Fair valueAggregate unpaid principal balanceDifference
Originated loans held for sale$67,869 $65,697 $2,172 
No originated loans held for sale were 90 or more days past due or on nonaccrual status as of September 30, 2020 or December 31, 2019.
We may be required to measure certain financial assets at fair value on a nonrecurring basis. These adjustments to fair value usually result from the application of lower of amortized cost or fair value accounting or write-downs of individual assets due to impairment.
Following the adoption of ASC 326, the population of loans measured at fair value on a non-recurring basis has greatly diminished and is limited to collateral-dependent loans evaluated individually. These collateral-dependent loans are deemed to be at fair value if there is an associated allowance for credit losses or if a charge-off has been recorded in the previous 12 months. Collateral values are determined using appraisals or other third-party value estimates of the subject property discounted based on estimated selling costs, generally between 6% and 10%, and immaterial adjustments for other external factors that may impact the marketability of the collateral. The weighted average discount for estimated selling costs applied was 7.51%.
Prior to the adoption of ASC 326, impaired loans were deemed to be at fair value if an associated allowance or current period charge-off had been recorded. The value of impaired loans was determined by either collateral valuations or discounted present value of the expected cash flow calculations. Collateral values were determined using appraisals or other third-party value estimates of the subject property with discounts, generally between 6% and 11%, applied for estimated selling costs and other external factors that may impact the marketability of the property. Expected cash flows were determined using expected payment information at the individual loan level, discounted using the effective interest rate. The effective interest rate for impaired loans generally ranges between 3% and 7%.OREO acquired or written down within the previous 12 months is deemed to be at fair value. Asset valuations are determined by using appraisals or other third-party value estimates of the subject property with with discounts generally between 7% and 16% applied for estimated selling costs and other external factors that may impact the marketability of the property. At September 30, 2020, the weighted average discount applied was 8.46%. Changes to the value of the assets between scheduled valuation dates are monitored through continued communication with brokers and monthly reviews by the asset manager assigned to each asset. If there are any significant changes in the market or the subject property, valuations are adjusted or new appraisals ordered to ensure the reported values reflect the most current information.
Assets And Liabilities Carried At Fair Value On A Nonrecurring Basis
For financial assets and liabilities carried at fair value on a nonrecurring basis, the following table provides fair value information as of September 30, 2020 and December 31, 2019:
September 30, 2020
  Fair value measurements using:
(Dollars in thousands)Fair valueLevel 1 inputsLevel 2 inputsLevel 3 inputs
Collateral-dependent loans$10,970 $— $— $10,970 
Other real estate owned44,557 — — 44,557 
Mortgage servicing rights16,819 — — 16,819 
December 31, 2019
 Fair value measurements using:
Fair valueLevel 1 inputsLevel 2 inputsLevel 3 inputs
Impaired loans$132,336 $— $— $132,336 
Other real estate owned38,310 — — 38,310 
Mortgage servicing rights3,757 — — 3,757