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Estimated Fair Values (Tables)
9 Months Ended
Sep. 30, 2021
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, 2021 and December 31, 2020:
(Dollars in thousands)September 30, 2021December 31, 2020
Carrying valueFair valueCarrying valueFair value
Assets
Cash and due from banks$337,450 $337,450 $362,048 $362,048 
Overnight investments9,875,063 9,875,063 4,347,336 4,347,336 
Investment in marketable equity securities123,147 123,147 91,680 91,680 
Investment securities available for sale7,371,129 7,371,129 7,014,243 7,014,243 
Investment securities held to maturity3,381,078 3,353,078 2,816,982 2,838,499 
Loans held for sale98,451 98,451 124,837 124,837 
Net loans and leases32,332,995 32,349,172 32,567,661 33,298,166 
Income earned not collected132,911 132,911 145,694 145,694 
Federal Home Loan Bank stock40,450 40,450 45,392 45,392 
Mortgage and other servicing rights22,263 22,624 19,628 20,283 
Liabilities
Deposits with no stated maturity47,492,194 47,492,194 40,542,596 40,542,596 
Time deposits2,573,568 2,573,131 2,889,013 2,905,577 
Securities sold under customer repurchase agreements663,575 663,575 641,487 641,487 
Federal Home Loan Bank borrowings645,663 659,625 655,175 677,579 
Subordinated debt497,427 520,871 504,518 525,610 
Other borrowings76,139 76,643 88,470 89,263 
FDIC shared-loss payable— — 15,601 15,843 
Accrued interest payable6,560 6,560 9,414 9,414 
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, 2021 and December 31, 2020:
September 30, 2021
  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
Government agency$853,728 $— $853,728 $— 
Residential mortgage-backed securities4,801,646 — 4,801,646 — 
Commercial mortgage-backed securities1,090,652 — 1,090,652 — 
Corporate bonds625,103 — 316,968 308,135 
Total investment securities available for sale$7,371,129 $— $7,062,994 $308,135 
Marketable equity securities$123,147 $52,991 $70,156 $— 
Loans held for sale$98,451 $— $98,451 $— 
December 31, 2020
 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$499,933 $— $499,933 $— 
Government agency701,391 — 701,391 — 
Residential mortgage-backed securities4,438,103 — 4,438,103 — 
Commercial mortgage-backed securities771,537 — 771,537 — 
Corporate bonds603,279 — 286,655 316,624 
Total investment securities available for sale$7,014,243 $— $6,697,619 $316,624 
Marketable equity securities$91,680 $32,855 $58,825 $— 
Loans held for sale$124,837 $— $124,837 $— 
Fair Value of Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following tables summarize activity for Level 3 assets carried at fair value on a recurring basis:
Corporate bonds
Three months ended September 30Nine months ended September 30
(Dollars in thousands)2021202020212020
Beginning balance$325,448 $169,977 $316,624 $69,685 
Purchases23,878 78,000 30,878 178,595 
Unrealized net losses (gains) included in other comprehensive income436 2,818 3,927 901 
Amounts included in net income2,504 (81)2,687 (249)
Transfers in— — — 1,782 
Sales / Calls(44,131)— (45,981)— 
Ending balance$308,135 $250,714 $308,135 $250,714 
Fair Value Level 3 Significant Unobservable Input Assumptions
(Dollars in thousands)September 30, 2021
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$308,135 
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, 2021 and December 31, 2020:
September 30, 2021
(Dollars in thousands)Fair valueAggregate unpaid principal balanceDifference
Originated loans held for sale$98,451 $95,396 $3,055 
December 31, 2020
Fair valueAggregate unpaid principal balanceDifference
Originated loans held for sale$124,837 $118,902 $5,935 
No originated loans held for sale were 90 or more days past due or on nonaccrual status as of September 30, 2021 or December 31, 2020.
BancShares 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.
The population of loans measured at fair value on a non-recurring basis is limited to collateral-dependent loans evaluated individually. These collateral-dependent loans are deemed to be at fair value if there is an associated ACL or if a charge-off has been recorded in the previous 12 months. A large majority of collateral for these loans is real property. Collateral values are determined using appraisals or other third-party value estimates of the subject property discounted based on estimated selling costs, generally between 5% 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 to real estate collateral was 8%.
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 discounts generally between 6% and 15% applied for estimated selling costs and other external factors that may impact the marketability of the property. At September 30, 2021, the weighted average discount applied was 8%. 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, 2021 and December 31, 2020:
September 30, 2021
  Fair value measurements using:
(Dollars in thousands)Fair valueLevel 1 inputsLevel 2 inputsLevel 3 inputs
Collateral-dependent loans$12,185 $— $— $12,185 
Other real estate owned32,391 — — 32,391 
Mortgage servicing rights20,210 — — 20,210 
December 31, 2020
 Fair value measurements using:
Fair valueLevel 1 inputsLevel 2 inputsLevel 3 inputs
Collateral-dependent loans$11,779 $— $— $11,779 
Other real estate owned40,115 — — 40,115 
Mortgage servicing rights16,966 — — 16,966