Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Assets And Liabilities Measured On A Recurring Basis [Table Text Block]

The fair value of financial assets and liabilities that are measured on a recurring basis is as follows as of December 31, 2018 (in thousands):



	Total		Quoted Prices in Active Markets for Identical Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs
Assets:
Trading securities:
U.S. government agency debentures	$	63,765	$	—	$	63,765	$	—
U.S. government agency residential mortgage-backed securities	1,791,584		—		1,791,584		—
Municipal and other tax-exempt securities	34,507		—		34,507		—
Asset-backed securities	42,656		—		42,656		—
Other trading securities	24,411		—		24,411		—
Total trading securities	1,956,923		—		1,956,923		—
Available for sale securities:
U.S. Treasury securities	493		493		—		—
Municipal and other tax-exempt securities	2,864		—		2,864		—
U.S. government agency residential mortgage-backed securities	5,804,708		—		5,804,708		—
Privately issued residential mortgage-backed securities	59,736		—		59,736		—
Commercial mortgage-backed securities guaranteed by U.S. government agencies	2,953,889		—		2,953,889		—
Other debt securities	35,430		—		34,958		472
Total available for sale securities	8,857,120		493		8,856,155		472
Fair value option securities – U.S. government agency residential mortgage-backed securities	283,235		—		283,235		—
Residential mortgage loans held for sale	149,221		—		134,014		15,207
Mortgage servicing rights, net¹	259,254		—		—		259,254
Derivative contracts, net of cash margin²	320,929		44,074		276,855		—
Liabilities:
Derivative contracts, net of cash margin²	362,306		—		362,306		—


¹	A reconciliation of the beginning and ending fair value of mortgage servicing rights and disclosures of significant assumptions used to determine fair value are presented in Note 7, Mortgage Banking Activities.

See Note 3 for detail of fair value of derivative contracts by contract type. Derivative contracts in a net asset position that were valued based on quoted prices in active markets or identical instruments (Level 1) are exchange-traded interest rate, energy and agricultural derivative contracts, net of cash margin. Derivative contracts in a net liability position that were valued using quoted prices in active markets for identical instruments (Level 1) are exchange-traded interest rate derivative contracts, fully offset by cash margin.

The fair value of financial assets and liabilities that are measured on a recurring basis is as follows as of December 31, 2017 (in thousands):



	Total		Quoted Prices in Active Markets for Identical Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs
Assets:
Trading securities:
U.S. government agency debentures	$	21,196	$	—	$	21,196	$	—
U.S. government agency residential mortgage-backed securities	392,673		—		392,673		—
Municipal and other tax-exempt securities	13,559		—		13,559		—
Asset-backed securities	23,885		—		23,885		—
Other trading securities	11,363		—		11,363		—
Total trading securities	462,676		—		462,676		—
Available for sale securities:
U.S. Treasury securities	1,000		1,000		—		—
Municipal and other tax-exempt securities	27,080		—		22,278		4,802
U.S. government agency residential mortgage-backed securities	5,309,152		—		5,309,152		—
Privately issued residential mortgage-backed securities	93,221		—		93,221		—
Commercial mortgage-backed securities guaranteed by U.S. government agencies	2,834,961		—		2,834,961		—
Other debt securities	25,481		—		25,009		472
Perpetual preferred stock	15,767		—		15,767		—
Equity securities and mutual funds	14,916		—		14,916		—
Total available for sale securities	8,321,578		1,000		8,315,304		5,274
Fair value option securities – U.S. government agency residential mortgage-backed securities	755,054		—		755,054		—
Residential mortgage loans held for sale	221,378		—		209,079		12,299
Mortgage servicing rights, net¹	252,867		—		—		252,867
Derivative contracts, net of cash margin²	220,502		8,179		212,323		—
Liabilities:
Derivative contracts, net of cash margin ²	171,963		—		171,963		—


¹	A reconciliation of the beginning and ending fair value of mortgage servicing rights and disclosures of significant assumptions used to determine fair value are presented in Note 7, Mortgage Banking Activities.

See Note 3 for detail of fair value of derivative contracts by contract type. Derivative contracts in a net asset position that were valued based on quoted prices in active markets for identical instruments (Level 1) are exchange-traded interest rate, energy and agricultural derivative contracts, net of cash margin. Derivative contracts in a net liability position that were valued using quoted prices in active markets for identical instruments based on quoted prices in active markets for identical instruments (Level 1) are exchange-traded interest rate and energy derivative contracts, fully offset by cash margin.

Fair Value Assets Measured On Recurring Basis Significant Unobservable Inputs [Table Text Block]

The following represents the changes related to assets measured at fair value on a recurring basis using significant unobservable inputs (in thousands):



	Available for Sale Securities						Residential mortgage loans held for sale
	Municipal and other tax-exempt securities			Other debt securities			Residential mortgage loans held for sale
Balance, December 31, 2016	$	5,789		$	4,152		$	11,617
Transfer to Level 3 from Level 2¹	—			—			3,507
Purchases and capital calls	—			—			—
Redemptions and distributions	(1,100		)	—			—
Proceeds from sales	—			(3,900		)	(2,944		)
Gain (loss) recognized in earnings:
Mortgage banking revenue	—			—			119
Other comprehensive income (loss):
Net change in unrealized gain (loss)	113			220			—
Balance, December 31, 2017	4,802			472			12,299
Transfer to Level 3 from Level 2¹	—			—			6,183
Purchases and capital calls	—			—			—
Redemptions and distributions	(5,095		)	—			—
Proceeds from sales	—			—			(2,706		)
Gain (loss) recognized in earnings:
Mortgage banking revenue	—			—			(569		)
Other comprehensive income (loss):
Net change in unrealized gain (loss)	293			—			—
Balance, December 31, 2018	$	—		$	472		$	15,207


¹	Recurring transfers to Level 3 from Level 2 consist of residential mortgage loans intended for sale to U.S. government agencies that fail to meet conforming standards.

Fair Value Inputs, Fair Value Measured On a Recurring Basis, Quantitative Information [Table Text Block]

A summary of quantitative information about assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of December 31, 2018 follows (in thousands):



Quantitative Information about Level 3 Recurring Fair Value Measurements
	Fair Value	Valuation Technique(s)		Significant Unobservable Input	Range (Weighted Average)
Available for sale securities:
Other debt securities	472	Discounted cash flows	¹	Interest rate spread	7.88%-7.88% (7.88%)	³
Other debt securities	472	Discounted cash flows	¹	Interest rate spread	94.44%-94.44% (94.44%)	²
Residential mortgage loans held for sale	15,207	Quoted prices of loans sold in securitization transactions, with a liquidity discount applied		Liquidity discount applied to the market value of mortgage loans qualifying for sale to U.S. government agencies	92.38%


¹	Discounted cash flows developed using discount rates primarily based on reference to interest rate spreads for comparable securities of similar duration and credit rating as determined by the nationally-recognized rating agencies, adjusted for lack of trading volume.


²	Represents fair value as a percentage of par value.


³	Interest rate yields used to value investment grade taxable securities based on comparable short-term taxable securities which are generally yielding approximately 3%.

A summary of quantitative information about Recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of December 31, 2017 follows (in thousands):



Quantitative Information about Level 3 Recurring Fair Value Measurements
	Fair Value		Valuation Technique(s)		Significant Unobservable Input	Range (Weighted Average)
Available for sale securities:
Municipal and other tax-exempt securities	$	4,802	Discounted cash flows	¹	Interest rate spread	6.60%-6.60% (6.60%)	²
						92.25%-94.76% (93.75%)	³
Other debt securities	472		Discounted cash flows	¹	Interest rate spread	6.85%-6.85% (6.85%)	⁴
						94.39%-94.39% (94.39%)	³
Residential mortgage loans held for sale	12,299		Quoted prices of loans sold in securitization transactions, with a liquidity discount applied		Liquidity discount applied to the market value of mortgage loans qualifying for sale to U.S. government agencies	94.75%


¹	Discounted cash flows developed using discount rates primarily based on reference to interest rate spreads for comparable securities of similar duration and credit rating as determined by the nationally-recognized rating agencies, adjusted for lack of trading volume.


²	Interest rate yields used to value investment grade tax-exempt securities represent a spread of 372 to 466 basis points over average yields for comparable tax-exempt securities.


³	Represents fair value as a percentage of par value.

⁴

Interest rate yields used to value investment grade taxable securities based on comparable short-term taxable securities which are generally yielding less than 3%.

Fair Value Assets Measured on Nonrecurring Basis [Table Text Block]

The following represents the carrying value of assets measured at fair value on a non-recurring basis and related losses recorded during the year. The carrying value represents only those assets with the balance sheet date for which the fair value was adjusted during the year:



	Carrying Value at December 31, 2018						Fair Value Adjustments for the Year Ended December 31, 2018 Recognized In:
	Quoted Prices in Active Markets for Identical Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs		Gross charge-offs against allowance for loan losses		Net losses and expenses of repossessed assets, net
Impaired loans	$	—	$	1,074	$	17,401	$	17,434	$	—
Real estate and other repossessed assets	—		4,795		6,366		—		7,269



	Carrying Value at December 31, 2017						Fair Value Adjustments for the Year Ended December 31, 2017 Recognized In:
	Quoted Prices in Active Markets for Identical Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs		Gross charge-offs against allowance for loan losses		Net losses and expenses of repossessed assets, net
Impaired loans	$	—	$	7,436	$	7,626	$	12,145	$	—
Real estate and other repossessed assets	—		3,483		5,481		—		6,372

Fair Value Inputs, Fair Value Measured On a Nonrecurring Basis, Quantitative Information [Table Text Block]

A summary of quantitative information about Non-recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of December 31, 2018 follows (in thousands):



Quantitative Information about Level 3 Non-recurring Fair Value Measurements
	Fair Value		Valuation Technique(s)	Significant Unobservable Input	Range (Weighted Average)
Impaired loans	$	17,401	Discounted cash flows	Management knowledge of industry and non-real estate collateral including but not limited to recoverable oil & gas reserves, forward looking commodity prices, and estimated operating costs	35% - 80% (50%)¹
Real estate and other repossessed assets	6,366		Discounted cash flows	Recoverable oil and gas reserves, forward-looking commodity prices, estimated operating costs	N/A


¹	Represents fair value as a percentage of the unpaid principal balance.

The table above excludes the initial measurement of assets and liabilities that were acquired as part of the CoBiz acquisition in October 1, 2018. These assets and liabilities were recorded at their fair value upon acquisition in accordance with U.S. GAAP and were not re-measured during the periods presented unless specifically required by U.S. GAAP. Acquisition date fair values represent either Level 2 fair value measurements (investment securities, deposits, property, equipment, and debt) or Level 3 fair value measurements (loans and core deposit intangible assets). Refer to Note 6, Goodwill and Intangible Assets, for further detail regarding the CoBiz acquisition.

A summary of quantitative information about Non-recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of December 31, 2017 follows (in thousands):



Quantitative Information about Level 3 Non-recurring Fair Value Measurements
	Fair Value		Valuation Technique(s)	Significant Unobservable Input	Range (Weighted Average)
Impaired loans	$	7,626	Discounted cash flows	Recoverable oil and gas reserves, forward-looking commodity prices and estimated operating costs	40% - 86% (59%)¹
Real estate and other repossessed assets	5,481		Discounted cash flows	Recoverable oil and gas reserves, forward-looking commodity prices and estimated operating costs	N/A


¹	Represents fair value as a percentage of the unpaid principal balance.

Fair Value of Financial Instruments [Table Text Block]

The following table presents the carrying values and estimated fair values of all financial instruments, including those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or non-recurring (dollars in thousands):



	December 31, 2018
	Carrying Value			Estimated Fair Value		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and due from banks	$	741,749		$	741,749	$	741,749	$	—	$	—
Interest-bearing cash and cash equivalents	401,675			401,675		401,675		—		—
Trading securities:
U.S. government agency debentures	63,765			63,765		—		63,765		—
U.S. government agency residential mortgage-backed securities	1,791,584			1,791,584		—		1,791,584		—
Municipal and other tax-exempt securities	34,507			34,507		—		34,507		—
Asset-backed securities	42,656			42,656		—		42,656		—
Other trading securities	24,411			24,411		—		24,411		—
Total trading securities	1,956,923			1,956,923		—		1,956,923		—
Investment securities:
Municipal and other tax-exempt securities	137,296			138,562		—		138,562		—
U.S. government agency residential mortgage-backed securities	12,612			12,770		—		12,770		—
Other debt securities	205,279			215,966		—		7,905		208,061
Total investment securities	355,187			367,298		—		159,237		208,061
Available for sale securities:
U.S. Treasury securities	493			493		493		—		—
Municipal and other tax-exempt securities	2,864			2,864		—		2,864		—
U.S. government agency residential mortgage-backed securities	5,804,708			5,804,708		—		5,804,708		—
Privately issued residential mortgage-backed securities	59,736			59,736		—		59,736		—
Commercial mortgage-backed securities guaranteed by U.S. government agencies	2,953,889			2,953,889		—		2,953,889		—
Other debt securities	35,430			35,430		—		34,958		472
Total available for sale securities	8,857,120			8,857,120		493		8,856,155		472
Fair value option securities – U.S. government agency residential mortgage-backed securities	283,235			283,235		—		283,235		—
Residential mortgage loans held for sale	149,221			149,221		—		134,014		15,207
Loans:
Commercial	13,636,078			13,526,162		—		—		13,526,162
Commercial real estate	4,764,813			4,713,747		—		—		4,713,747
Residential mortgage	2,230,033			2,213,951		—		—		2,213,951
Personal	1,025,806			1,024,368		—		—		1,024,368
Total loans	21,656,730			21,478,228		—		—		21,478,228
Allowance for loan losses	(207,457		)	—		—		—		—
Loans, net of allowance	21,449,273			21,478,228		—		—		21,478,228
Mortgage servicing rights	259,254			259,254		—		—		259,254
Derivative instruments with positive fair value, net of cash margin	320,929			320,929		44,074		276,855		—
Deposits with no stated maturity	23,150,383			23,150,383		—		—		23,150,383
Time deposits	2,113,380			2,073,538		—		—		2,073,538
Other borrowed funds	7,142,801			6,771,953		—		—		6,771,953
Subordinated debentures	275,913			261,977		—		261,977		—
Derivative instruments with negative fair value, net of cash margin	362,306			362,306		—		362,306		—



	December 31, 2017
	Carrying Value			Estimated Fair Value		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and due from banks	$	602,510		$	602,510	$	602,510	$	—	$	—
Interest-bearing cash and cash equivalents	1,714,544			1,714,544		1,714,544		—		—
Trading securities:
U.S. government agency debentures	21,196			21,196		—		21,196		—
U.S. government agency residential mortgage-backed securities	392,673			392,673		—		392,673		—
Municipal and other tax-exempt securities	13,559			13,559		—		13,559		—
Asset-backed securities	23,885			23,885		—		23,885		—
Other trading securities	11,363			11,363		—		11,363		—
Total trading securities	462,676			438,791		—		438,791		—
Investment securities:
Municipal and other tax-exempt securities	228,186			230,349		—		230,349		—
U.S. government agency residential mortgage-backed securities	15,891			16,242		—		16,242		—
Other debt securities	217,716			233,444		—		233,444		—
Total investment securities	461,793			480,035		—		480,035		—
Available for sale securities:
U.S. Treasury securities	1,000			1,000		1,000		—		—
Municipal and other tax-exempt securities	27,080			27,080		—		22,278		4,802
U.S. government agency residential mortgage-backed securities	5,309,152			5,309,152		—		5,309,152		—
Privately issued residential mortgage-backed securities	93,221			93,221		—		93,221		—
Commercial mortgage-backed securities guaranteed by U.S. government agencies	2,834,961			2,834,961		—		2,834,961		—
Other debt securities	25,481			25,481		—		25,009		472
Perpetual preferred stock	15,767			15,767		—		15,767		—
Equity securities and mutual funds	14,916			14,916		—		14,916		—
Total available for sale securities	8,321,578			8,321,578		1,000		8,315,304		5,274
Fair value option securities – U.S. government agency residential mortgage-backed securities	755,054			755,054		—		755,054		—
Residential mortgage loans held for sale	221,378			221,378		—		208,946		12,432
Loans:
Commercial	10,733,975			10,524,627		—		—		10,524,627
Commercial real estate	3,479,987			3,428,733		—		—		3,428,733
Residential mortgage	1,973,686			1,977,721		—		—		1,977,721
Personal	965,776			956,706		—		—		956,706
Total loans	17,153,424			16,887,787		—		—		16,887,787
Allowance for loan losses	(230,682		)	—		—		—		—
Loans, net of allowance	16,922,742			16,887,787		—		—		16,887,787
Mortgage servicing rights	252,867			252,867		—		—		252,867
Derivative instruments with positive fair value, net of cash margin	220,502			220,502		8,179		212,323		—
Deposits with no stated maturity	19,962,889			19,962,889		—		—		19,962,889
Time deposits	2,098,416			2,064,558		—		—		2,064,558
Other borrowed funds	5,709,860			5,703,121		—		—		5,703,121
Subordinated debentures	144,677			148,207		—		148,207		—
Derivative instruments with negative fair value, net of cash margin	171,963			171,963		—		171,963		—