Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2024

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 June 30, 2024 (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	$	71,169	$	69,955	$	1,214	$	—
Residential agency mortgage-backed securities	5,023,892		—		5,023,892		—
Municipal securities	56,780		—		56,780		—
Other trading securities	60,950		—		60,950		—
Total trading securities	5,212,791		69,955		5,142,836		—
Available for sale securities:
U.S. Treasury	923		923		—		—
Municipal securities	278,043		—		278,043		—
Residential agency mortgage-backed securities	8,108,567		—		8,108,567		—
Residential non-agency mortgage-backed securities	828,049		—		828,049		—
Commercial agency mortgage-backed securities	3,577,729		—		3,577,729		—
Other debt securities	473		—		—		473
Total available for sale securities	12,793,784		923		12,792,388		473
Fair value option securities — Residential agency mortgage-backed securities	19,050		—		19,050		—
Residential mortgage loans held for sale1	107,465		—		100,364		7,101
Mortgage servicing rights2	333,246		—		—		333,246
Derivative contracts, net of cash collateral3	225,076		3,699		221,377		—
Liabilities:
Derivative contracts, net of cash collateral3	287,509		658		286,851		—

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 79.41% 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.

3See Note 3 for detail of fair value of derivative contracts by contract type. Derivative contracts in asset and liability positions that were valued based on quoted prices in active markets for identical instruments (Level 1) are primarily exchange-traded interest rate derivative contracts held for trading purposes.

The fair value of financial assets and liabilities measured on a recurring basis was as follows as of December 31, 2023 (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	$	10,959	$	9,017	$	1,942	$	—
Residential agency mortgage-backed securities	5,105,137		—		5,105,137		—
Municipal securities	37,413		—		37,413		—
Other trading securities	39,996		—		39,996		—
Total trading securities	5,193,505		9,017		5,184,488		—
Available for sale securities:
U.S. Treasury	925		925		—		—
Municipal securities	502,833		—		502,833		—
Residential agency mortgage-backed securities	6,834,720		—		6,834,720		—
Residential non-agency mortgage-backed securities	799,877		—		799,877		—
Commercial agency mortgage-backed securities	4,147,853		—		4,147,853		—
Other debt securities	473		—		—		473
Total available for sale securities	12,286,681		925		12,285,283		473
Fair value option securities — Residential agency mortgage-backed securities	20,671		—		20,671		—
Residential mortgage loans held for sale1	56,935		—		49,749		7,186
Mortgage servicing rights2	293,884		—		—		293,884
Derivative contracts, net of cash collateral3	410,304		—		410,304		—
Liabilities:
Derivative contracts, net of cash collateral3	587,473		2,607		584,866		—

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 77.74% 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.

3See Note 3 for detail of fair value of derivative contracts by contract type. Derivative contracts in asset and liability positions that were valued based on quoted prices in active markets for identical instruments (Level 1) are primarily exchange-traded interest rate derivative contracts held for trading purposes.

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 June 30, 2024 for which the fair value was adjusted during the six months ended June 30, 2024 (in thousands):

							Fair Value Adjustments for the
	Carrying Value at June 30, 2024						Three Months Ended June 30, 2024 Recognized in:				Six Months Ended June 30, 2024 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	$	—	$	65	$	10,065	$	6,349	$	—	$	10,033	$	—

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 June 30, 2023 for which the fair value was adjusted during the six months ended June 30, 2023 (in thousands):

							Fair Value Adjustments for the
	Carrying Value at June 30, 2023						Three Months Ended June 30, 2023 Recognized in:				Six Months Ended June 30, 2023 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	$	—	$	—	$	12,048	$	6,797	$	—	$	8,787	$	—
Real estate and other repossessed assets	—		547		—		—		—		—		(101)

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 June 30, 2024 follows (dollars in thousands):

	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Nonaccruing loans	$	10,065	Discounted cash flows	Management knowledge of industry and non-real estate collateral	4% - 90% (45%)1

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 June 30, 2023 follows (dollars in thousands):

	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Nonaccruing loans	$	12,048	Discounted cash flows	Management knowledge of industry and non-real estate collateral	44% - 62% (58%)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 are measured at fair value on a non-recurring basis as of June 30, 2024 (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	$	897,811	$	897,811	$	897,811	$	—	$	—
Interest-bearing cash and cash equivalents	178,352		178,352		178,352		—		—
Trading securities:
U.S. government securities	71,169		71,169		69,955		1,214		—
Residential agency mortgage-backed securities	5,023,892		5,023,892		—		5,023,892		—
Municipal securities	56,780		56,780		—		56,780		—
Other trading securities	60,950		60,950		—		60,950		—
Total trading securities	5,212,791		5,212,791		69,955		5,142,836		—
Investment securities:
Municipal securities	107,188		109,700		—		11,989		97,711
Residential agency mortgage-backed securities	1,990,626		1,786,096		—		1,786,096		—
Commercial agency mortgage-backed securities	16,066		15,030		—		15,030		—
Other debt securities	15,288		13,706		—		13,706		—
Total investment securities	2,129,168		1,924,532		—		1,826,821		97,711
Allowance for credit losses	(287)		—		—		—		—
Investment securities, net of allowance	2,128,881		1,924,532		—		1,826,821		97,711
Available for sale securities:
U.S. Treasury	923		923		923		—		—
Municipal securities	278,043		278,043		—		278,043		—
Residential agency mortgage-backed securities	8,108,567		8,108,567		—		8,108,567		—
Residential non-agency mortgage-backed securities	828,049		828,049		—		828,049		—
Commercial agency mortgage-backed securities	3,577,729		3,577,729		—		3,577,729		—
Other debt securities	473		473		—		—		473
Total available for sale securities	12,793,784		12,793,784		923		12,792,388		473
Fair value option securities — Residential agency mortgage-backed securities	19,050		19,050		—		19,050		—
Residential mortgage loans held for sale	107,465		107,465		—		100,364		7,101
Loans:
Commercial	15,623,409		15,594,663		—		—		15,594,663
Commercial real estate	5,083,575		4,988,792		—		—		4,988,792
Loans to individuals	3,846,597		3,712,068		—		—		3,712,068
Total loans	24,553,581		24,295,523		—		—		24,295,523
Allowance for loan losses	(287,826)		—		—		—		—
Loans, net of allowance	24,265,755		24,295,523		—		—		24,295,523
Mortgage servicing rights	333,246		333,246		—		—		333,246
Derivative instruments with positive fair value, net of cash collateral	225,076		225,076		3,699		221,377		—
Deposits with no stated maturity	32,777,709		32,777,709		—		32,777,709		—
Time deposits	3,463,935		3,439,777		—		—		3,439,777
Other borrowed funds	7,342,296		7,342,295		—		—		7,342,295
Subordinated debentures	131,156		119,428		—		119,428		—
Derivative instruments with negative fair value, net of cash collateral	287,509		287,509		658		286,851		—

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 are measured at fair value on a non-recurring basis as of December 31, 2023 (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	$	947,613	$	947,613	$	947,613	$	—	$	—
Interest-bearing cash and cash equivalents	400,652		400,652		400,652		—		—
Trading securities:
U.S. government securities	10,959		10,959		9,017		1,942		—
Residential agency mortgage-backed securities	5,105,137		5,105,137		—		5,105,137		—
Municipal securities	37,413		37,413		—		37,413		—
Other trading securities	39,996		39,996		—		39,996		—
Total trading securities	5,193,505		5,193,505		9,017		5,184,488		—
Investment securities:
Municipal securities	120,705		125,525		—		12,305		113,220
Residential agency mortgage-backed securities	2,092,083		1,917,810		—		1,917,810		—
Commercial agency mortgage-backed securities	15,914		15,067		—		15,067		—
Other debt securities	15,787		14,184		—		14,184		—
Total investment securities	2,244,489		2,072,586		—		1,959,366		113,220
Allowance for credit losses	(336)		—		—		—		—
Investment securities, net of allowance	2,244,153		2,072,586		—		1,959,366		113,220
Available for sale securities:
U.S. Treasury	925		925		925		—		—
Municipal securities	502,833		502,833		—		502,833		—
Residential agency mortgage-backed securities	6,834,720		6,834,720		—		6,834,720		—
Residential non-agency mortgage-backed securities	799,877		799,877		—		799,877		—
Commercial agency mortgage-backed securities	4,147,853		4,147,853		—		4,147,853		—
Other debt securities	473		473		—		—		473
Total available for sale securities	12,286,681		12,286,681		925		12,285,283		473
Fair value option securities — Residential agency mortgage-backed securities	20,671		20,671		—		20,671		—
Residential mortgage loans held for sale	56,935		56,935		—		49,749		7,186
Loans:
Commercial	14,803,769		14,862,873		—		—		14,862,873
Commercial real estate	5,337,647		5,270,657		—		—		5,270,657
Loans to individuals	3,763,552		3,634,855		—		—		3,634,855
Total loans	23,904,968		23,768,385		—		—		23,768,385
Allowance for loan losses	(277,123)		—		—		—		—
Loans, net of allowance	23,627,845		23,768,385		—		—		23,768,385
Mortgage servicing rights	293,884		293,884		—		—		293,884
Derivative instruments with positive fair value, net of cash collateral	410,304		410,304		—		410,304		—
Deposits with no stated maturity	31,007,679		31,007,679		—		—		31,007,679
Time deposits	3,012,022		2,993,685		—		—		2,993,685
Other borrowed funds	8,824,300		8,824,299		—		—		8,824,299
Subordinated debentures	131,150		115,798		—		115,798		—
Derivative instruments with negative fair value, net of cash collateral	587,473		587,473		2,607		584,866		—