Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2026

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, 2026 (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:

Residential agency mortgage-backed securities	$	4,826,434	$	—	$	4,826,434	$	—
Municipal securities	83,079		—		83,079		—

Other trading securities	43,475		—		43,475		—
Total trading securities	4,952,988		—		4,952,988		—
Available-for-sale securities:
U.S. Treasury securities	989		989		—		—
Municipal securities	112,845		—		112,845		—
Residential agency mortgage-backed securities	10,129,404		—		10,129,404		—
Residential non-agency mortgage-backed securities	686,050		—		686,050		—
Commercial agency mortgage-backed securities	2,653,019		—		2,653,019		—
Other debt securities	473		—		—		473
Total available-for-sale securities	13,582,780		989		13,581,318		473
Fair value option securities:

Residential agency mortgage-backed securities	16,150		—		16,150		—
Commercial agency mortgage-backed securities	12,311		—		12,311		—
Total fair value option securities	28,461		—		28,461		—
Residential mortgage loans held for sale1	102,531		—		94,669		7,862
Mortgage servicing rights, net2	333,998		—		—		333,998
Derivative contracts, net of cash margin3	324,711		1,740		322,971		—
Liabilities:
Derivative contracts, net of cash margin3	$	325,231	$	379	$	324,852	$	—

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 92.93% 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 and internal risk management purposes.

The fair value of financial assets and liabilities measured on a recurring basis was as follows as of December 31, 2025 (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	$	9,237	$	—	$	9,237	$	—
Residential agency mortgage-backed securities	5,307,849		—		5,307,849		—
Municipal securities	39,233		—		39,233		—
Other trading securities	36,426		—		36,426		—
Total trading securities	5,392,745		—		5,392,745		—
Available-for-sale securities:
U.S. Treasury securities	980		980		—		—
Municipal securities	184,273		—		184,273		—
Residential agency mortgage-backed securities	9,598,627		—		9,598,627		—
Residential non-agency mortgage-backed securities	696,028		—		696,028		—
Commercial agency mortgage-backed securities	3,126,244		—		3,126,244		—
Other debt securities	473		—		—		473
Total available-for-sale securities	13,606,625		980		13,605,172		473



Fair value option securities — Residential agency mortgage-backed securities	102,096		—		102,096		—
Residential mortgage loans held for sale1	94,630		—		88,335		6,295
Mortgage servicing rights, net2	322,724		—		—		322,724
Derivative contracts, net of cash margin3	300,775		1,022		299,753		—
Liabilities:
Derivative contracts, net of cash margin3	$	397,573	$	12	$	397,561	$	—

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, 2026, for which the fair value was adjusted during the six months ended June 30, 2026 (in thousands):



							Fair Value Adjustments for the
	Carrying Value at June 30, 2026						Three Months Ended June 30, 2026 Recognized in:				Six Months Ended June 30, 2026 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	$	—	$	—	$	6	$	5	$	—	$	5	$	—
Real estate and other repossessed assets	$	—	$	185	$	—	$	—	$	(32)	$	—	$	(32)

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, 2025, for which the fair value was adjusted during the six months ended June 30, 2025 (in thousands):


							Fair Value Adjustments for the
	Carrying Value at June 30, 2025						Three Months Ended June 30, 2025 Recognized in:				Six Months Ended June 30, 2025 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

Real estate and other repossessed assets	$	—	$	—	$	1,636	$	—	$	(1)	—	(357)

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, 2026 follows (dollars in thousands):

Fair Value

Valuation Technique(s)

Unobservable Input

Range
(Weighted Average)

Nonaccruing loans

Discounted cash flows

Management knowledge of industry and non-real estate collateral

56% - 56% (56%)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, 2025 follows (dollars in thousands):

Fair Value

Valuation Technique(s)

Unobservable Input

Range
(Weighted Average)

Real estate and other repossessed assets

1,636

Discounted cash flows

Marketability adjustments off appraised value1

70% - 98% (96%)

1 Marketability adjustments include consideration of estimated costs to sell which is approximately 10% of the fair value.

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, 2026 (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	$	975,769	$	975,769	$	975,769	$	—	$	—
Interest-bearing cash and cash equivalents	545,597		545,597		545,597		—		—
Trading securities:

Residential agency mortgage-backed securities	4,826,434		4,826,434		—		4,826,434		—
Municipal securities	83,079		83,079		—		83,079		—

Other trading securities	43,475		43,475		—		43,475		—
Total trading securities	4,952,988		4,952,988		—		4,952,988		—
Investment securities:
Municipal securities	36,856		37,304		—		6,116		31,188
Residential agency mortgage-backed securities	1,558,327		1,414,665		—		1,414,665		—
Commercial agency mortgage-backed securities	16,662		16,189		—		16,189		—
Other debt securities	15,513		14,848		—		14,848		—
Total investment securities	1,627,358		1,483,006		—		1,451,818		31,188
Allowance for credit losses	(77)		—		—		—		—
Investment securities, net of allowance	1,627,281		1,483,006		—		1,451,818		31,188
Available-for-sale securities:
U.S. Treasury securities	989		989		989		—		—
Municipal securities	112,845		112,845		—		112,845		—
Residential agency mortgage-backed securities	10,129,404		10,129,404		—		10,129,404		—
Residential non-agency mortgage-backed securities	686,050		686,050		—		686,050		—
Commercial agency mortgage-backed securities	2,653,019		2,653,019		—		2,653,019		—
Other debt securities	473		473		—		—		473
Total available-for-sale securities	13,582,780		13,582,780		989		13,581,318		473
Fair value option securities:

Residential agency mortgage-backed securities	16,150		16,150		—		16,150		—
Commercial agency mortgage-backed securities	12,311		12,311		—		12,311		—
Total fair value option securities	28,461		28,461		—		28,461		—
Residential mortgage loans held for sale	102,531		102,531		—		94,669		7,862
Loans:
Commercial	16,297,448		16,101,285		—		—		16,101,285
Commercial real estate	5,885,330		5,774,037		—		—		5,774,037

Loans to individuals	4,900,937		4,787,816		—		—		4,787,816
Total loans	27,083,715		26,663,138		—		—		26,663,138
Allowance for loan losses	(277,474)		—		—		—		—
Loans, net of allowance	26,806,241		26,663,138		—		—		26,663,138
Mortgage servicing rights	333,998		333,998		—		—		333,998
Derivative instruments with positive fair value, net of cash margin	324,711		324,711		1,740		322,971		—
Deposits with no stated maturity	36,004,559		36,004,559		—		—		36,004,559
Time deposits	3,851,282		3,835,276		—		—		3,835,276
Other borrowed funds	4,577,911		4,577,667		—		—		4,577,667
Subordinated debentures	396,661		391,969		—		391,969		—
Derivative instruments with negative fair value, net of cash margin	325,231		325,231		379		324,852		—


	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	$	1,001,107	$	1,001,107	$	1,001,107	$	—	$	—
Interest-bearing cash and cash equivalents	656,995		656,995		656,995		—		—
Trading securities:
U.S. government securities	9,237		9,237		—		9,237		—
Residential agency mortgage-backed securities	5,307,849		5,307,849		—		5,307,849		—
Municipal securities	39,233		39,233		—		39,233		—
Other trading securities	36,426		36,426		—		36,426		—
Total trading securities	5,392,745		5,392,745		—		5,392,745		—
Investment securities:
Municipal securities	88,215		89,343		—		11,204		78,139
Residential agency mortgage-backed securities	1,664,175		1,541,608		—		1,541,608		—
Commercial agency mortgage-backed securities	16,516		16,186		—		16,186		—
Other debt securities	15,538		14,868		—		14,868		—
Total investment securities	1,784,444		1,662,005		—		1,583,866		78,139
Allowance for credit losses	(202)		—		—		—		—
Investment securities, net of allowance	1,784,242		1,662,005		—		1,583,866		78,139
Available-for-sale securities:
U.S. Treasury securities	980		980		980		—		—
Municipal securities	184,273		184,273		—		184,273		—
Residential agency mortgage-backed securities	9,598,627		9,598,627		—		9,598,627		—
Residential non-agency mortgage-backed securities	696,028		696,028		—		696,028		—
Commercial agency mortgage-backed securities	3,126,244		3,126,244		—		3,126,244		—
Other debt securities	473		473		—		—		473
Total available-for-sale securities	13,606,625		13,606,625		980		13,605,172		473



Fair value option securities — Residential agency mortgage-backed securities	102,096		102,096		—		102,096		—
Residential mortgage loans held for sale	94,630		94,630		—		88,335		6,295
Loans:
Commercial	15,281,067		15,223,531		—		—		15,223,531
Commercial real estate	5,672,006		5,597,767		—		—		5,597,767

Loans to individuals	4,698,389		4,565,165		—		—		4,565,165
Total loans	25,651,462		25,386,463		—		—		25,386,463
Allowance for loan losses	(275,860)		—		—		—		—
Loans, net of allowance	25,375,602		25,386,463		—		—		25,386,463
Mortgage servicing rights	322,724		322,724		—		—		322,724
Derivative instruments with positive fair value, net of cash margin	300,775		300,775		1,022		299,753		—
Deposits with no stated maturity	35,795,923		35,795,923		—		—		35,795,923
Time deposits	3,639,083		3,629,060		—		—		3,629,060
Other borrowed funds	4,237,655		4,237,752		—		—		4,237,752
Subordinated debentures	396,589		395,323		—		395,323		—
Derivative instruments with negative fair value, net of cash margin	397,573		397,573		12		397,561		—