v3.25.3
Fair Value Disclosures
 9 Months Ended
Sep. 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
September 30, 2025
Available-for-sale debt securities:(1)
Residential mortgage-backed securities$— $3,544,015 $— 
Commercial mortgage-backed securities
— 246,253 — 
Credit risk transfer securities
— — 10,993 
Equity securities(1)
45,054 10,000 — 
Trading securities(1)— 2,219 — 
Loans held for investment(2)
— — 21,057 
Derivative assets(3)
— 37,297 — 
Securities sold not yet purchased(4)
24,730 — — 
Derivative liabilities(3)
— 24,264 — 
Non-qualified deferred compensation plan liabilities(5)
18,540 — — 
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 — 
Credit risk transfer securities
— — 11,926 
Equity securities(1)
59,235 16,026 — 
Loans held for investment(2)
— — 35,318 
Derivative assets(3)
— 23,202 — 
Securities sold not yet purchased(4)
33,705 — — 
Derivative liabilities(3)
— 57,906 — 
Non-qualified deferred compensation plan liabilities(5)
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)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.
(3)Derivative assets and liabilities are measured at fair value on a recurring basis, generally monthly.
(4)Securities sold not yet purchased are measured at fair value on a recurring basis, generally monthly.
(5)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 September 30, 2025
Available-for-sale debt securities:(1)
Credit risk transfer securities
$11,367 $— $(382)$— $8 $10,993 
Three Months Ended September 30, 2024
Available-for-sale debt securities:(1)
Credit risk transfer securities
$12,328 $— $(346)$— $20 $12,002 
Nine Months Ended September 30, 2025
Available-for-sale debt securities:(1)
Credit risk transfer securities
$11,926 $— $(1,019)$— $86 $10,993 
Nine Months Ended September 30, 2024
Available-for-sale debt securities:(1)
Credit risk transfer securities
$11,995 $— $(846)$— $853 $12,002 
(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).
Credit risk transfer securities
The fair value of credit risk transfer 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 September 30, 2025, the discount rates utilized ranged from 4.65% to 5.68% and the weighted-average life ranged from 3.88 years to 5.90 years. On a combined amortized cost weighted-average basis a discount rate of 5.09% and a weighted-average life of 4.74 years were utilized to determine the fair value of these securities at September 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 $21.1 million fair value of loans held for investment at September 30, 2025 reported above includes impaired loans with a carrying value of $35.8 million that were reduced by specific allowance allocations totaling $14.7 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
September 30, 2025
Financial assets:
Cash and cash equivalents$3,064,825 $3,064,825 $3,064,825 $— $— 
Available-for-sale debt securities3,801,261 3,801,261 — 3,790,268 10,993 
Held-to-maturity debt securities743,120 661,923 — 661,923 — 
Equity securities55,054 55,054 45,054 10,000 — 
Trading securities2,219 2,219 — 2,219 — 
Loans held for investment, net23,917,837 23,874,493 — — 23,874,493 
Derivative assets37,297 37,297 — 37,297 — 
Financial liabilities:
Total deposits27,505,398 27,504,235 — — 27,504,235 
Short-term borrowings275,000 275,000 — 275,000 — 
Long-term debt620,416 592,312 — 592,312 — 
Securities sold not yet purchased24,730 24,730 24,730 — — 
Derivative liabilities24,264 24,264 — 24,264 — 
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 —