Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019 (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	$	44,264	$	—	$	44,264	$	—
Residential agency mortgage-backed securities	1,504,651		—		1,504,651		—
Municipal and other tax-exempt securities	26,196		—		26,196		—
Asset-backed securities	14,084		—		14,084		—
Other trading securities	34,726		—		34,726		—
Total trading securities	1,623,921		—		1,623,921		—
Available for sale securities:
U.S. Treasury	1,600		1,600		—		—
Municipal and other tax-exempt securities	1,861		—		1,861		—
Residential agency mortgage-backed securities	8,046,096		—		8,046,096		—
Residential non-agency mortgage-backed securities	41,609		—		41,609		—
Commercial agency mortgage-backed securities guaranteed	3,178,005		—		3,178,005		—
Other debt securities	472		—		—		472
Total available for sale securities	11,269,643		1,600		11,267,571		472
Fair value option securities:
U.S. Treasury	9,917		9,917		—		—
Residential agency mortgage-backed securities	1,088,660		—		1,088,660		—
Total fair value option securities	1,098,577		9,917		1,088,660		—
Residential mortgage loans held for sale	182,271		—		173,958		8,313
Mortgage servicing rights, net¹	201,886		—		—		201,886
Derivative contracts, net of cash margin²	323,375		8,944		314,431		—
Liabilities:
Derivative contracts, net of cash margin²	251,128		—		251,128		—


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 and energy 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 and agricultural 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, 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	$	—
Residential agency 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	493		493		—		—
Municipal and other tax-exempt securities	2,864		—		2,864		—
Residential agency mortgage-backed securities	5,804,708		—		5,804,708		—
Residential non-agency mortgage-backed securities	59,736		—		59,736		—
Commercial agency mortgage-backed securities guaranteed	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 – Residential agency 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 margin ²	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 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 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, 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
Transfer to Level 3 from Level 2¹	—			—		2,449
Purchases and capital calls	—			—		—
Redemptions and distributions	—			—		—
Proceeds from sales	—			—		(9,972		)
Gain (loss) recognized in earnings:
Mortgage banking revenue	—			—		629
Other comprehensive income (loss):
Net change in unrealized gain (loss)	—			—		—
Balance, December 31, 2019	$	—		$	472	$	8,313


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, 2019 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	7.08%-7.08% (7.08%)	³
Other debt securities	472	Discounted cash flows	¹	Interest rate spread	94.4%-94.4% (94.4%)	²
Residential mortgage loans held for sale	8,313	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	95.23%


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, 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.

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, 2019						Fair Value Adjustments for the Year Ended December 31, 2019 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 (gains) and expenses of repossessed assets, net
Impaired loans	$	—	$	41	$	55,665	$	31,305	$	—
Real estate and other repossessed assets	—		5,986		1,551		—		(461		)



	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 (gains) 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

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, 2019 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	$	55,665	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	4% - 94% (55%)¹
Real estate and other repossessed assets	1,551		Discounted cash flows	Marketability adjustments off appraised value²	74% - 86% (84%)


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

² Marketability adjustments include consideration of estimated costs to sell which is approximately 10% of the fair value.

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 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, 2019
	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	$	735,836		$	735,836	$	735,836	$	—	$	—
Interest-bearing cash and cash equivalents	522,985			522,985		522,985		—		—
Trading securities:
U.S. government agency debentures	44,264			44,264		—		44,264		—
Residential agency mortgage-backed securities	1,504,651			1,504,651		—		1,504,651		—
Municipal and other tax-exempt securities	26,196			26,196		—		26,196		—
Asset-backed securities	14,084			14,084		—		14,084		—
Other trading securities	34,726			34,726		—		34,726		—
Total trading securities	1,623,921			1,623,921		—		1,623,921		—
Investment securities:
Municipal and other tax-exempt securities	93,653			96,897		—		96,897		—
Residential agency mortgage-backed securities	10,676			11,164		—		11,164		—
Other debt securities	189,089			206,341		—		8,206		198,135
Total investment securities	293,418			314,402		—		116,267		198,135
Available for sale securities:
U.S. Treasury	1,600			1,600		1,600		—		—
Municipal and other tax-exempt securities	1,861			1,861		—		1,861		—
Residential agency mortgage-backed securities	8,046,096			8,046,096		—		8,046,096		—
Residential non-agency mortgage-backed securities	41,609			41,609		—		41,609		—
Commercial agency mortgage-backed securities	3,178,005			3,178,005		—		3,178,005		—
Other debt securities	472			472		—		—		472
Total available for sale securities	11,269,643			11,269,643		1,600		11,267,571		472
Fair value option securities:
U.S. Treasury	9,917			9,917		9,917		—		—
Residential agency mortgage-backed securities	1,088,660			1,088,660		—		1,088,660		—
Total fair value option securities	1,098,577			1,098,577		9,917		1,088,660		—
Residential mortgage loans held for sale	182,271			182,271		—		173,958		8,313
Loans:
Commercial	14,031,650			13,966,221		—		—		13,966,221
Commercial real estate	4,433,783			4,422,717		—		—		4,422,717
Residential mortgage	2,084,172			2,098,093		—		—		2,098,093
Personal	1,201,382			1,202,298		—		—		1,202,298
Total loans	21,750,987			21,689,329		—		—		21,689,329
Allowance for loan losses	(210,759		)	—		—		—		—
Loans, net of allowance	21,540,228			21,689,329		—		—		21,689,329
Mortgage servicing rights	201,886			201,886		—		—		201,886
Derivative instruments with positive fair value, net of cash margin	323,375			323,375		8,944		314,431		—
Deposits with no stated maturity	25,403,319			25,403,319		—		—		25,403,319
Time deposits	2,217,849			2,212,467		—		—		2,212,467
Other borrowed funds	8,345,405			8,315,860		—		—		8,315,860
Subordinated debentures	275,923			284,627		—		284,627		—
Derivative instruments with negative fair value, net of cash margin	251,128			251,128		—		251,128		—



	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		—
Residential agency 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		—
Residential agency 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		—
Residential agency mortgage-backed securities	5,804,708			5,804,708		—		5,804,708		—
Residential non-agency mortgage-backed securities	59,736			59,736		—		59,736		—
Commercial agency mortgage-backed securities	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 – Residential agency 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			7,071,953		—		—		7,071,953
Subordinated debentures	275,913			261,977		—		261,977		—
Derivative instruments with negative fair value, net of cash margin	362,306			362,306		—		362,306		—