Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

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

The fair value of financial assets and liabilities measured on a recurring basis was as follows as of September 30, 2022 (in thousands):

	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Trading securities:
U.S. government securities	$	8,757	$	8,757	$	—	$	—
Residential agency mortgage-backed securities	2,138,527		—		2,138,527		—
Municipal securities	22,611		—		22,611		—
Other trading securities	24,723		—		24,723		—
Total trading securities	2,194,618		8,757		2,185,861		—
Available for sale securities:
U.S. Treasury	890		890		—		—
Municipal securities	619,349		—		619,349		—
Residential agency mortgage-backed securities	4,894,569		—		4,894,569		—
Residential non-agency mortgage-backed securities	506,394		—		506,394		—
Commercial agency mortgage-backed securities	4,019,220		—		4,019,220		—
Other debt securities	472		—		—		472
Total available for sale securities	10,040,894		890		10,039,532		472
Fair value option securities – Residential agency mortgage-backed securities	33,966		—		33,966		—
Residential mortgage loans held for sale1	148,121		—		140,211		7,910
Mortgage servicing rights2	283,806		—		—		283,806
Derivative contracts, net of cash collateral	1,693,742		—		1,693,742		—
Liabilities:
Derivative contracts, net of cash collateral	821,275		—		821,275		—

1Residential mortgage loans held for sale measured at fair value on a recurring basis using significant unobservable inputs (Level 3) consist of residential mortgage loans intended for sale to U.S. government agencies that fail to meet conforming standards and are valued at 82.57% of the unpaid principal balance.

2A 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 5, Mortgage Banking Activities.

The fair value of financial assets and liabilities measured on a recurring basis was as follows as of December 31, 2021 (in thousands):

	Total		Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Trading securities:
U.S. government securities	$	23,610	$	4,999	$	18,611	$	—
Residential agency mortgage-backed securities	9,068,900		—		9,068,900		—
Municipal securities	25,783		—		25,783		—
Other trading securities	18,520		—		18,520		—
Total trading securities	9,136,813		4,999		9,131,814		—
Available for sale securities:
U.S. Treasury	1,000		1,000		—		—
Municipal securities	508,365		—		508,365		—
Residential agency mortgage-backed securities	8,006,616		—		8,006,616		—
Residential non-agency mortgage-backed securities	24,339		—		24,339		—
Commercial agency mortgage-backed securities	4,617,025		—		4,617,025		—
Other debt securities	472		—		—		472
Total available for sale securities	13,157,817		1,000		13,156,345		472
Fair value option securities — Residential agency mortgage-backed securities	43,770		—		43,770		—
Residential mortgage loans held for sale1	192,295		—		185,969		6,326
Mortgage servicing rights2	163,198		—		—		163,198
Derivative contracts, net of cash collateral	1,097,297		8,331		1,088,966		—
Liabilities:
Derivative contracts, net of cash collateral	275,625		—		275,625		—

1Residential mortgage loans held for sale measured at fair value on a recurring basis using significant unobservable inputs (Level 3) consist of residential mortgage loans intended for sale to U.S. government agencies that fail to meet conforming standards and are valued at 95.07% of the unpaid principal balance.

2A 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 5, Mortgage Banking Activities.

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) during the period. The carrying value represents only those assets with a balance at September 30, 2022 for which the fair value was adjusted during the nine months ended September 30, 2022:

							Fair Value Adjustments for the
	Carrying Value at September 30, 2022						Three Months Ended Sep. 30, 2022 Recognized in:				Nine Months Ended Sep. 30, 2022 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		Other gains (losses), net		Gross charge-offs against allowance for loan losses		Other gains (losses), net
Nonaccruing loans	$	—	$	159	$	126	$	22	$	—	$	499	$	—
Real estate and other repossessed assets	—		649		1,699		—		—		—		(5,705)

The following represents the carrying value of assets measured at fair value on a non-recurring basis (and related losses) during the period. The carrying value represents only those assets with a balance at September 30, 2021 for which the fair value was adjusted during the nine months ended September 30, 2021:

							Fair Value Adjustments for the
	Carrying Value at September 30, 2021						Three Months Ended Sep. 30, 2021 Recognized in:				Nine Months Ended Sep. 30, 2021 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		Other gains (losses), net		Gross charge-offs against allowance for loan losses		Other gains (losses), net
Nonaccruing loans	$	—	$	63	$	12,538	$	6,929	$	—	$	17,466	$	—
Real estate and other repossessed assets	—		1,706		—		—		—		—		(150)

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 September 30, 2022 follows (in thousands):

	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Nonaccruing loans	$	126	Discounted cash flows	Management knowledge of industry and non-real estate collateral including, but not limited to, recoverable oil and gas reserves, forward-looking commodity prices, estimated operating costs	25% - 25% (25%)1
Real estate and other repossessed assets	1,699		Discounted cash flows	Management knowledge of industry and non-real estate collateral.	N/A

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

A summary of quantitative information about Non-recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of September 30, 2021 follows (in thousands):

	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Nonaccruing loans	$	12,538	Discounted cash flows	Management knowledge of industry and non-real estate collateral including, but not limited to, recoverable oil and gas reserves, forward-looking commodity prices, estimated operating costs	1% - 97% (23%)1

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 basis as of September 30, 2022 (dollars in thousands):

	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	$	804,110	$	804,110	$	804,110	804110000	$	—	$	—
Interest-bearing cash and cash equivalents	804,799		804,799		804,799			—		—
Trading securities:
U.S. government securities	8,757		8,757		8,757			—		—
Residential agency mortgage-backed securities	2,138,527		2,138,527		—			2,138,527		—
Municipal securities	22,611		22,611		—			22,611		—
Other trading securities	24,723		24,723		—			24,723		—
Total trading securities	2,194,618		2,194,618		8,757			2,185,861		—
Investment securities:
Municipal securities	173,113		176,990		—			40,046		136,944
Residential agency mortgage-backed securities	2,373,039		2,205,333		—			2,205,333		—
Commercial agency mortgage-backed securities	15,532		14,437		—			14,437		—
Other debt securities	11,288		11,006		—			11,006		—
Total investment securities	2,572,972		2,407,766		—			2,270,822		136,944
Allowance for credit losses	(612)		—		—			—		—
Investment securities, net of allowance	2,572,360		2,407,766		—			2,270,822		136,944
Available for sale securities:
U.S. Treasury	890		890		890			—		—
Municipal securities	619,349		619,349		—			619,349		—
Residential agency mortgage-backed securities	4,894,569		4,894,569		—			4,894,569		—
Residential non-agency mortgage-backed securities	506,394		506,394		—			506,394		—
Commercial agency mortgage-backed securities	4,019,220		4,019,220		—			4,019,220		—
Other debt securities	472		472		—			—		472
Total available for sale securities	10,040,894		10,040,894		890			10,039,532		472
Fair value option securities – Residential agency mortgage-backed securities	33,966		33,966		—			33,966		—
Residential mortgage loans held for sale	148,121		148,121		—			140,211		7,910
Loans:
Commercial	13,607,686		13,279,531		—			—		13,279,531
Commercial real estate	4,473,911		4,318,977		—			—		4,318,977
Paycheck protection program	20,233		20,233		—			—		20,233
Loans to individuals	3,688,627		3,463,547		—			—		3,463,547
Total loans	21,790,457		21,082,288		—			—		21,082,288
Allowance for loan losses	(241,768)		—		—			—		—
Loans, net of allowance	21,548,689		21,082,288		—			—		21,082,288
Mortgage servicing rights	283,806		283,806		—			—		283,806
Derivative instruments with positive fair value, net of cash collateral	1,693,742		1,693,742		—			1,693,742		—
Deposits with no stated maturity	34,956,772		34,956,772		—			—		34,956,772
Time deposits	1,459,143		1,429,354		—			—		1,429,354
Other borrowed funds	861,885		859,317		—			—		859,317
Subordinated debentures	131,168		124,153		—			124,153		—
Derivative instruments with negative fair value, net of cash collateral	821,275		821,275		—			821,275		—

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 basis as of December 31, 2021 (dollars in thousands):

	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	$	712,067	$	712,067	$	712,067	$	—	$	—
Interest-bearing cash and cash equivalents	2,125,343		2,125,343		2,125,343		—		—
Trading securities:
U.S. government securities	23,610		23,610		4,999		18,611		—
Residential agency mortgage-backed securities	9,068,900		9,068,900		—		9,068,900		—
Municipal securities	25,783		25,783		—		25,783		—
Other trading securities	18,520		18,520		—		18,520		—
Total trading securities	9,136,813		9,136,813		4,999		9,131,814		—
Investment securities:
Municipal securities	203,772		223,609		—		57,698		165,911
Residential agency mortgage-backed securities	6,939		7,500		—		7,500		—
Other debt securities	288		286		—		286		—
Total investment securities	210,999		231,395		—		65,484		165,911
Allowance for credit losses	(555)		—		—		—		—
Investment securities, net of allowance	210,444		231,395		—		65,484		165,911
Available for sale securities:
U.S. Treasury	1,000		1,000		1,000		—		—
Municipal securities	508,365		508,365		—		508,365		—
Residential agency mortgage-backed securities	8,006,616		8,006,616		—		8,006,616		—
Residential non-agency mortgage-backed securities	24,339		24,339		—		24,339		—
Commercial agency mortgage-backed securities	4,617,025		4,617,025		—		4,617,025		—
Other debt securities	472		472		—		—		472
Total available for sale securities	13,157,817		13,157,817		1,000		13,156,345		472
Fair value option securities — Residential agency mortgage-backed securities	43,770		43,770		—		43,770		—
Residential mortgage loans held for sale	192,295		192,295		—		185,969		6,326
Loans:
Commercial	12,506,465		12,395,664		—		—		12,395,664
Commercial real estate	3,831,325		3,786,767		—		—		3,786,767
Paycheck protection program	276,341		269,912		—		—		269,912
Loans to individuals	3,591,549		3,586,878		—		—		3,586,878
Total loans	20,205,680		20,039,221		—		—		20,039,221
Allowance for loan losses	(256,421)		—		—		—		—
Loans, net of allowance	19,949,259		20,039,221		—		—		20,039,221
Mortgage servicing rights	163,198		163,198		—		—		163,198
Derivative instruments with positive fair value, net of cash collateral	1,097,297		1,097,297		8,331		1,088,966		—
Deposits with no stated maturity	39,537,731		39,537,731		—		—		39,537,731
Time deposits	1,704,328		1,703,886		—		—		1,703,886
Other borrowed funds	2,363,202		2,360,746		—		—		2,360,746
Subordinated debentures	131,226		141,761		—		141,761		—
Derivative instruments with negative fair value, net of cash collateral	275,625		275,625		—		275,625		—