v3.26.1
Fair Value Disclosures
 6 Months Ended
Jun. 30, 2026
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 2025 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, 2026
Available-for-sale debt securities:(1)
Residential mortgage-backed securities$— $3,569,278 $— 
Commercial mortgage-backed securities
— 246,725 — 
Credit risk transfer securities
— — 10,281 
Equity securities(1)
33,429 10,000 — 
Trading debt securities(1)
— 2,539 — 
Loans held for investment(2)
— — 25,816 
Derivative assets(3)
— 15,322 — 
Other trading assets(4)
56 — — 
Derivative liabilities(3)
— 42,470 — 
Securities sold not yet purchased(4)
11,646 — — 
Non-qualified deferred compensation plan liabilities(5)
20,333 — — 
December 31, 2025
Available-for-sale debt securities:(1)
Residential mortgage-backed securities$— $3,692,646 $— 
Commercial mortgage-backed securities
— 248,012 — 
Credit risk transfer securities
— — 10,797 
Equity securities(1)
31,998 10,000 — 
Trading debt securities(1)— 3,924 — 
Loans held for investment(2)
— — 20,844 
Derivative assets(3)
— 40,892 — 
Derivative liabilities(3)
— 24,458 — 
Securities sold not yet purchased(4)
12,026 — — 
Non-qualified deferred compensation plan liabilities(5)
18,989 — — 
(1)Available-for-sale debt securities, equity securities and trading debt 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)Other trading assets and 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 June 30, 2026
Available-for-sale debt securities:(1)
Credit risk transfer securities
$10,574 $— $(341)$— $48 $10,281 
Three Months Ended June 30, 2025
Available-for-sale debt securities:(1)
Credit risk transfer securities
$11,594 $— $(337)$— $110 $11,367 
Six Months Ended June 30, 2026
Available-for-sale debt securities:(1)
Credit risk transfer securities
$10,797 $— $(576)$— $60 $10,281 
Six Months Ended June 30, 2025
Available-for-sale debt securities:(1)
Credit risk transfer securities
$11,926 $— $(638)$— $79 $11,367 
(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 June 30, 2026, the discount rates utilized ranged from 5.04% to 6.16% and the weighted-average life ranged from 3.73 years to 5.40 years. On a combined amortized cost weighted-average basis a discount rate of 5.55% and a weighted-average life of 4.49 years were utilized to determine the fair value of these securities at June 30, 2026. At December 31, 2025, the combined weighted-average discount rate and weighted-average life utilized were 5.16% and 4.65 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 $25.8 million fair value of loans held for investment at June 30, 2026 reported above includes impaired loans with a carrying value of $48.1 million that were reduced by specific allowance allocations totaling $22.3 million based on collateral valuations utilizing Level 3 inputs. The $20.8 million fair value of loans held for investment at December 31, 2025 reported above includes impaired loans with a carrying value of $30.1 million that were reduced by specific allowance allocations totaling $9.3 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, 2026
Financial assets:
Cash and cash equivalents$3,698,268 $3,698,268 $3,698,268 $— $— 
Available-for-sale debt securities3,826,284 3,826,284 — 3,816,003 10,281 
Held-to-maturity debt securities692,332 616,820 — 616,820 — 
Equity securities43,429 43,429 33,429 10,000 — 
Trading debt securities
2,539 2,539 — 2,539 — 
Loans held for investment, net24,678,958 24,398,152 — — 24,398,152 
Derivative assets15,322 15,322 — 15,322 — 
Other trading assets
5656 56 — — 
Financial liabilities:
Total deposits28,911,388 29,604,026 — — 29,604,026 
Short-term borrowings350,000 350,000 — 350,000 — 
Long-term debt500,859 507,435 — 507,435 — 
Derivative liabilities42,470 42,470 — 42,470 — 
Securities sold not yet purchased11,646 11,646 11,646 — — 
December 31, 2025
Financial assets:
Cash and cash equivalents$2,099,118 $2,099,118 $2,099,118 $— $— 
Available-for-sale debt securities3,951,455 3,951,455 — 3,940,658 10,797 
Held-to-maturity debt securities725,722 654,832 — 654,832 — 
Equity securities41,998 41,998 31,998 10,000 — 
Trading debt securities
3,924 3,924 — 3,924 — 
Loans held for sale4,361 4,361 4,361 
Loans held for investment, net23,769,645 23,604,206 — — 23,604,206 
Derivative assets40,892 40,892 — 40,892 — 
Financial liabilities:
Total deposits26,448,767 26,450,932 — — 26,450,932 
Short-term borrowings330,000 330,000 — 330,000 — 
Long-term debt620,575 593,610 — 593,610 — 
Derivative liabilities24,458 24,458 — 24,458 — 
Securities sold not yet purchased12,026 12,026 12,026 — —