v3.25.2
Fair Value Disclosures
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Disclosures Fair Value Disclosures
The Company determines the fair market values of its assets and liabilities measured at fair value on a recurring and nonrecurring basis using the fair value hierarchy as prescribed in Accounting Standards Codification 820, Fair Value Measurements and Disclosures. See Note 1 - Operations and Summary of Significant Accounting Policies in the Company’s 2024 Form 10-K for information regarding the fair value hierarchy and a description of the methods and significant assumptions used by the Company in estimating its fair value disclosures for financial statements.
Assets and liabilities measured at fair value are as follows:
 Fair Value Measurements Using
(in thousands)Level 1Level 2Level 3
June 30, 2025
Available-for-sale debt securities:(1)
Residential mortgage-backed securities$— $3,519,520 $— 
Commercial mortgage-backed securities
— 243,254 — 
CRT securities— — 11,367 
Equity securities(1)(2)52,561 16,131 — 
Trading securities(1)— 3,888 — 
Loans held for investment(3)— — 16,154 
Derivative assets(4)— 50,129 — 
Securities sold not yet purchased(5)26,551 — — 
Derivative liabilities(4)— 40,217 — 
Non-qualified deferred compensation plan liabilities(6)19,533 — — 
December 31, 2024
Available-for-sale debt securities:(1)
U.S. Treasury securities$277,285 $— $— 
Residential mortgage-backed securities— 3,034,043 — 
Commercial mortgage-backed securities
— 201,432 — 
CRT securities— — 11,926 
Equity securities(1)(2)59,235 16,026 — 
Loans held for investment(3)— — 35,318 
Derivative assets(4)— 23,202 — 
Securities sold not yet purchased(5)33,705 — — 
Derivative liabilities(4)— 57,906 — 
Non-qualified deferred compensation plan liabilities(6)19,109 — — 
(1)Available-for-sale debt securities, equity securities and trading 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)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.
(4)Derivative assets and liabilities are measured at fair value on a recurring basis, generally quarterly.
(5)Securities sold not yet purchased are measured at fair value on a recurring basis, generally monthly.
(6)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 Valuations
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 PeriodPurchases / AdditionsSales / ReductionsRealizedUnrealizedBalance at End of Period
Three Months Ended June 30, 2025
Available-for-sale debt securities:(1)
CRT securities$11,594 $— $(337)$— $110 $11,367 
Three Months Ended June 30, 2024
Available-for-sale debt securities:(1)
CRT securities$12,261 $— $(291)$— $358 $12,328 
Six Months Ended June 30, 2025
Available-for-sale debt securities:(1)
CRT securities$11,926 $— $(638)$— $79 $11,367 
Six Months Ended June 30, 2024
Available-for-sale debt securities:(1)
CRT securities$11,995 $— $(500)$— $833 $12,328 
(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).
CRT securities
The fair value of CRT securities is based on a discounted cash flow model, which utilizes Level 3 inputs, the most significant of which were a discount rate and weighted-average life. At June 30, 2025, the discount rates utilized ranged from 4.54% to 5.86% and the weighted-average life ranged from 3.97 years to 6.16 years. On a combined amortized cost weighted-average basis a discount rate of 5.08% and a weighted-average life of 4.87 years were utilized to determine the fair value of these securities at June 30, 2025. At December 31, 2024, the combined weighted-average discount rate and weighted-average life utilized were 5.63% and 5.35 years, respectively.
Loans held for investment
Certain collateral-dependent loans held for investment are reported at fair value when, based upon an individual evaluation, the specific allocation of the allowance for credit losses that is deducted from the loan's amortized cost is based upon the fair value of the loan's underlying collateral. The $16.2 million fair value of loans held for investment at June 30, 2025 reported above includes impaired loans with a carrying value of $27.1 million that were reduced by specific allowance allocations totaling $10.9 million based on collateral valuations utilizing Level 3 inputs. The $35.3 million fair value of loans held for investment at December 31, 2024 reported above includes impaired loans with a carrying value of $63.6 million that were reduced by specific allowance allocations totaling $28.3 million based on collateral valuations utilizing Level 3 inputs.
Fair Value 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)TotalLevel 1Level 2Level 3
June 30, 2025
Financial assets:
Cash and cash equivalents$2,690,142 $2,690,142 $2,690,142 $— $— 
Available-for-sale debt securities3,774,141 3,774,141 — 3,762,774 11,367 
Held-to-maturity debt securities761,907 674,663 — 674,663 — 
Equity securities68,692 68,692 52,561 16,131 — 
Trading securities3,888 3,888 — 3,888 — 
Loans held for investment, net23,647,886 23,597,536 — — 23,597,536 
Derivative assets50,129 50,129 — 50,129 — 
Financial liabilities:
Total deposits26,064,309 26,065,518 — — 26,065,518 
Short-term borrowings1,250,000 1,250,000 — 1,250,000 — 
Long-term debt620,256 590,131 — 590,131 — 
Securities sold not yet purchased26,551 26,551 26,551 — — 
Derivative liabilities40,217 40,217 — 40,217 — 
December 31, 2024
Financial assets:
Cash and cash equivalents$3,188,808 $3,188,808 $3,188,808 $— $— 
Available-for-sale debt securities3,524,686 3,524,686 277,285 3,235,475 11,926 
Held-to-maturity debt securities796,168 678,174 — 678,174 — 
Equity securities75,261 75,261 59,235 16,026 — 
Loans held for investment, net22,178,357 22,115,585 — — 22,115,585 
Derivative assets23,202 23,202 — 23,202 — 
Financial liabilities:
Total deposits25,238,599 25,245,009 — — 25,245,009 
Short-term borrowings885,000 885,000 — 885,000 — 
Long-term debt660,346 622,713 — 622,713 — 
Securities sold not yet purchased33,705 33,705 33,705 — — 
Derivative liabilities57,906 57,906 — 57,906 —