Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of assets and liabilities measured at fair value

Assets and liabilities measured at fair value are as follows:


	Fair Value Measurements Using
(in thousands)	Level 1		Level 2		Level 3
September 30, 2024
Available-for-sale debt securities:(1)
U.S. Treasury securities	$	275,804	$	—	$	—

Residential mortgage-backed securities	—		3,230,856		—


CRT securities	—		—		12,002
Equity securities(1)(2)	58,140		16,286		—

Loans held for investment(4)	—		—		20,709

Derivative assets(5)	—		43,030		—
Securities sold not yet purchased(6)	33,244		—		—
Derivative liabilities(5)	—		31,675		—
Non-qualified deferred compensation plan liabilities(7)	18,727		—		—
December 31, 2023
Available-for-sale debt securities:(1)
U.S. Treasury securities	$	636,473	$	—	$	—
U.S. government agency securities	—		106,592		—
Residential mortgage-backed securities	—		2,470,832		—


CRT securities	—		—		11,995
Equity securities(1)(2)	40,661		11,164		—
Mortgage loans held for sale(3)	—		706		—
Loans held for investment(4)	—		—		38,341
Derivative assets(5)	—		32,944		—
Securities sold not yet purchased(6)	10,602		—		—
Derivative liabilities(5)	—		70,917		—
Non-qualified deferred compensation plan liabilities(7)	20,387		—		—

(1)Available-for-sale debt securities and equity securities are measured at fair value on a recurring basis, generally monthly.

(2)Equity securities consist of investments that qualify for consideration under the regulations implementing the Community Reinvestment Act and investments in exchange traded funds.

(3)Loans held for sale are measured at fair value on a recurring basis, generally monthly.

(4)Includes certain collateral-dependent loans held for investment for which a specific allocation of the allowance for credit losses is based upon the fair value of the loan’s underlying collateral. These loans held for investment are measured on a nonrecurring basis, generally annually or more often as warranted by market and economic conditions.

(5)Derivative assets and liabilities are measured at fair value on a recurring basis, generally quarterly.

(6)Securities sold not yet purchased are measured at fair value on a recurring basis, generally monthly.

(7)Non-qualified deferred compensation plan liabilities represent the fair value of the obligation to the employee, which generally corresponds to the fair value of the invested assets, and are measured at fair value on a recurring basis, generally monthly.

Level 3 Fair Value Assets Measured on a Recurring Basis

The following table presents a reconciliation of the level 3 fair value category measured at fair value on a recurring basis:


							Net Gains/(Losses)
(in thousands)	Balance at Beginning of Period		Purchases / Additions		Sales / Reductions		Realized		Unrealized		Balance at End of Period
Three Months Ended September 30, 2024
Available-for-sale debt securities:(1)

CRT securities	$	12,328	$	—	$	(346)	$	—	$	20	$	12,002

Three Months Ended September 30, 2023
Available-for-sale debt securities:(1)

CRT securities	$	11,756	$	—	$	(341)	$	—	$	676	$	12,091

Nine Months Ended September 30, 2024
Available-for-sale debt securities:(1)

CRT securities	$	11,995	$	—	$	(846)	$	—	$	853	$	12,002

Nine Months Ended September 30, 2023
Available-for-sale debt securities:(1)

CRT securities	$	11,861	$	—	$	(828)	$	—	$	1,058	$	12,091

(1)Unrealized gains/(losses) on available-for-sale debt securities are recorded in AOCI. Realized gains/(losses) are recorded in other non-interest income on the consolidated statements of income and other comprehensive income/(loss).

Summary of the carrying amounts and estimated fair values of financial instruments

A summary of the carrying amounts and estimated fair values of financial instruments is as follows:


	Carrying Amount		Estimated Fair Value
(in thousands)			Total		Level 1		Level 2		Level 3
September 30, 2024
Financial assets:
Cash and cash equivalents	$	4,191,585	$	4,191,585	$	4,191,585	$	—	$	—
Available-for-sale debt securities	3,518,662		3,518,662		275,804		3,230,856		12,002
Held-to-maturity debt securities	812,432		727,743		—		727,743		—
Equity securities	74,426		74,426		58,140		16,286		—
Loans held for sale	9,022		9,022		—		9,022		—
Loans held for investment, net	22,021,028		21,978,258		—		—		21,978,258
Derivative assets	43,030		43,030		—		43,030		—
Financial liabilities:
Total deposits	25,865,255		25,873,387		—		—		25,873,387
Short-term borrowings	1,035,000		1,035,000		—		1,035,000		—
Long-term debt	660,172		624,776		—		624,776		—
Securities sold not yet purchased	33,244		33,244		33,244		—		—
Derivative liabilities	31,675		31,675		—		31,675		—
December 31, 2023
Financial assets:
Cash and cash equivalents	$	3,242,850	$	3,242,850	$	3,242,850	$	—	$	—
Available-for-sale debt securities	3,225,892		3,225,892		636,473		2,577,424		11,995
Held-to-maturity debt securities	865,477		763,844		—		763,844		—
Equity securities	51,825		51,825		40,661		11,164		—
Loans held for sale	44,105		44,105		15,000		29,105		—
Loans held for investment, net	20,090,585		20,050,974		—		—		20,050,974
Derivative assets	32,944		32,944		—		32,944		—
Financial liabilities:
Total deposits	22,371,839		22,379,452		—		—		22,379,452
Short-term borrowings	1,500,000		1,500,000		—		1,500,000		—
Long-term debt	859,147		801,309		—		801,309		—
Securities sold not yet purchased	10,602		10,602		10,602		—		—
Derivative liabilities	70,917		70,917		—		70,917		—

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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