BOK FINANCIAL CORPBOKF
BOK FINANCIAL CORP Fair Value Disclosure
Fair Value Measurements
Fair value is defined by applicable accounting guidance as the price to sell an asset or transfer a liability in an orderly transaction between market participants in the principal market for the given asset or liability at the measurement date based on market conditions at that date. An orderly transaction assumes exposure to the market for a customary period for marketing activities prior to the measurement date and not a forced liquidation or distressed sale. Certain assets and liabilities are recorded in the Company’s financial statements at fair value. Some are recorded on a recurring basis and some on a non-recurring basis.
For some assets and liabilities, observable market transactions and market information might be available. For other assets and liabilities, observable market transactions and market information might not be available. A hierarchy for fair value has been established which categorizes into three levels the inputs to valuation techniques used to measure fair value. The three levels are as follows:
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) - fair value is based on unadjusted quoted prices in active markets for identical assets or liabilities.
Significant Other Observable Inputs (Level 2) - fair value is based on significant other observable inputs which are generally determined based on a single price for each financial instrument provided to us by an applicable third-party pricing service and is based on one or more of the following:
•quoted prices for similar, but not identical, assets or liabilities in active markets;
•quoted prices for identical or similar assets or liabilities in inactive markets;
•inputs other than quoted prices that are observable, such as interest rate and yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates;
•other inputs derived from or corroborated by observable market inputs.
Significant Unobservable Inputs (Level 3) - fair value is based upon model-based valuation techniques for which at least one significant assumption is not observable in the market.
Transfers between levels are recognized as of the end of the reporting period. There were no transfers in or out of quoted prices in active markets for identical instruments to significant other observable inputs or significant unobservable inputs during the years ended December 31, 2025 and 2024, respectively. Transfers between significant other observable inputs and significant unobservable inputs during the years ended December 31, 2025 and 2024 were immaterial.
The underlying methods used by the third-party pricing services are considered in determining the primary inputs used to determine fair values. Management has evaluated the methodologies employed by the third-party pricing services by comparing the price provided by the pricing service with other sources, including brokers' quotes, sales or purchases of similar instruments, and discounted cash flows to establish a basis for reliance on the pricing service values. Significant differences between the pricing service provided value and other sources are discussed with the pricing service to understand the basis for their values. Based on all observable inputs, management may adjust prices obtained from third-party pricing services to more appropriately reflect the prices that would be received to sell assets or paid to transfer liabilities in orderly transactions in the current market. No significant adjustments were made to prices provided by third-party pricing services at December 31, 2025 and 2024.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The fair value of financial assets and liabilities that are measured on a recurring basis is as follows as of December 31, 2025 (in thousands):
| Total | Quoted Prices in Active Markets for Identical Instruments | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||||
| 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 | — | ||||||||||||||||||||||
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 82.84% 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 7, "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 that are measured on a recurring basis is as follows as of December 31, 2024 (in thousands):
| Total | Quoted Prices in Active Markets for Identical Instruments | Significant Other Observable Inputs | Significant Unobservable Inputs | |||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Trading securities: | ||||||||||||||||||||||||||
| U.S. government securities | $ | 21,275 | $ | 1,494 | $ | 19,781 | $ | — | ||||||||||||||||||
| Residential agency mortgage-backed securities | 4,792,695 | — | 4,792,695 | — | ||||||||||||||||||||||
| Municipal securities | 62,230 | — | 62,230 | — | ||||||||||||||||||||||
| Other trading securities | 22,890 | — | 22,890 | — | ||||||||||||||||||||||
| Total trading securities | 4,899,090 | 1,494 | 4,897,596 | — | ||||||||||||||||||||||
| Available-for-sale securities: | ||||||||||||||||||||||||||
U.S. Treasury securities | 945 | 945 | — | — | ||||||||||||||||||||||
| Municipal securities | 225,568 | — | 225,568 | — | ||||||||||||||||||||||
| Residential agency mortgage-backed securities | 8,639,389 | — | 8,639,389 | — | ||||||||||||||||||||||
| Residential non-agency mortgage-backed securities | 781,209 | — | 781,209 | — | ||||||||||||||||||||||
| Commercial agency mortgage-backed securities | 3,204,016 | — | 3,204,016 | — | ||||||||||||||||||||||
| Other debt securities | 473 | — | — | 473 | ||||||||||||||||||||||
| Total available-for-sale securities | 12,851,600 | 945 | 12,850,182 | 473 | ||||||||||||||||||||||
| Fair value option securities — Residential agency mortgage-backed securities | 17,876 | — | 17,876 | — | ||||||||||||||||||||||
Residential mortgage loans held for sale1 | 77,561 | — | 70,564 | 6,997 | ||||||||||||||||||||||
Mortgage servicing rights, net2 | 338,145 | — | — | 338,145 | ||||||||||||||||||||||
Derivative contracts, net of cash margin3 | 242,809 | 656 | 242,153 | — | ||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
Derivative contracts, net of cash margin3 | 237,582 | 3,391 | 234,191 | — | ||||||||||||||||||||||
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 81.11% 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 7, "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.
Following is a description of the Company's valuation methodologies used for assets and liabilities measured on a recurring basis:
Securities
The fair values of trading, AFS, and fair value option securities are based on quoted prices for identical instruments in active markets, when available. If quoted prices for identical instruments are not available, fair values are based on significant other observable inputs such as quoted prices of comparable instruments or interest rates and credit spreads, yield curves, volatilities, prepayment speeds, and loss severities.
The fair value of certain AFS and held-to-maturity municipal and other debt securities may be based on significant unobservable inputs. These significant unobservable inputs include limited observed trades, projected cash flows, current credit rating of the issuers and, when applicable, the insurers of the debt and observed trades of similar debt. Discount rates are primarily based on reference to interest rate spreads on comparable securities of similar duration and credit rating as determined by the nationally-recognized rating agencies adjusted for a lack of trading volume. Significant unobservable inputs are developed by investment securities professionals involved in the active trading of similar securities. A summary of significant inputs used to value these securities follows. A management committee composed of senior members from the Company's Corporate Treasury, Risk Management, and Finance departments assess the appropriateness of these inputs quarterly.
Derivatives
All derivative instruments are carried on the balance sheet at fair value. Fair values for exchange-traded contracts are based on quoted prices. Fair values for over-the-counter interest rate, commodity, and foreign exchange contracts are based on valuations provided either by third-party dealers in the contracts, quotes provided by independent pricing services, or a third-party provided pricing model that uses significant other observable market inputs.
Credit risk is considered in determining the fair value of derivative instruments. Management determines fair value adjustments based on various risk factors including but not limited to counterparty credit rating or equivalent loan grading, derivative contract notional size, price volatility of the underlying commodity, duration of the derivative contracts and expected loss severity. Expected loss severity is based on historical losses for similarly risk graded commercial loan customers. Decreases in counterparty credit rating or grading and increases in price volatility and expected loss severity all tend to increase the credit quality adjustment which reduces the fair value of asset contracts.
We also consider our own credit risk in determining the fair value of derivative contracts. Changes in our credit rating could affect the fair value of our derivative liabilities. In the event of a credit downgrade, the fair value of our derivative liabilities could increase.
Residential Mortgage Loans Held for Sale
Residential mortgage loans held for sale are carried on the balance sheet at fair value. The fair values of conforming residential mortgage loans held for sale are based upon quoted market prices of such loans sold in securitization transactions, including related unfunded loan commitments. The fair value of mortgage loans that are unable to be sold to U.S. government agencies is determined using quoted prices of loans that are sold in securitization transactions with a liquidity discount applied.
Fair Value of Assets and Liabilities Measured on a Non-Recurring Basis
Assets measured at fair value on a non-recurring basis include collateral for certain nonaccruing loans and real property and other assets acquired to satisfy loans, which are based primarily on comparisons to completed sales of similar assets.
The following represents the carrying value of assets measured at fair value on a non-recurring basis and related losses recorded during the year. The carrying value represents only those assets at the balance sheet date for which the fair value was adjusted during the year:
| Carrying Value at December 31, 2025 | Fair Value Adjustments for the Year Ended December 31, 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 | |||||||||||||||||||||||||
| Nonaccruing loans | $ | — | $ | 381 | $ | 4,802 | $ | 3,702 | $ | — | |||||||||||||||||||
| Carrying Value at December 31, 2024 | Fair Value Adjustments for the Year Ended December 31, 2024 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 | |||||||||||||||||||||||||
| Nonaccruing loans | $ | — | $ | 683 | $ | 5,100 | $ | 6,788 | $ | — | |||||||||||||||||||
| Real estate and other repossessed assets | — | 1,961 | — | — | (183) | ||||||||||||||||||||||||
The fair value of collateral-dependent nonaccruing loans and real estate and other repossessed assets and the related fair value adjustments are generally based on unadjusted third-party appraisals. Our appraisal review policies require appraised values to be supported by observed inputs derived principally from or corroborated by observable market data. Appraisals that are not based on observable inputs or that require significant adjustments or fair value measurements that are not based on third-party appraisals are considered to be based on significant unobservable inputs. Non-recurring fair value measurements of collateral-dependent nonaccruing loans and real estate and other repossessed assets based on significant unobservable inputs are generally due to estimates of current fair values between appraisal dates. Significant unobservable inputs include listing prices for comparable assets, uncorroborated expert opinions, or management's knowledge of the collateral or industry. Non-recurring fair value measurements of collateral-dependent loans secured by mineral rights are generally determined by our internal staff of engineers on projected cash flows under current market conditions and are based on significant unobservable inputs. Projected cash flows are discounted according to risk characteristics of the underlying oil and gas properties. Assets are evaluated to demonstrate with reasonable certainty that crude oil, natural gas, and natural gas liquids can be recovered from known oil and gas reservoirs under existing economic and operating conditions at current prices with existing conventional equipment, operating methods, and costs. Significant unobservable inputs are developed by asset management and workout professionals and approved by senior Credit Administration executives.
A summary of quantitative information about Non-recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of December 31, 2025 follows (dollars in thousands):
| Quantitative Information about Level 3 Non-recurring Fair Value Measurements | ||||||||||||||||||||||||||
| Fair Value | Valuation Technique(s) | Significant Unobservable Input | Range (Weighted Average) | |||||||||||||||||||||||
| Nonaccruing loans | $ | 4,802 | Discounted cash flows | Management knowledge of industry and non-real estate collateral | 21% - 61% (57%)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 December 31, 2024 follows (dollars in thousands):
| Quantitative Information about Level 3 Non-recurring Fair Value Measurements | ||||||||||||||||||||||||||
| Fair Value | Valuation Technique(s) | Significant Unobservable Input | Range (Weighted Average) | |||||||||||||||||||||||
| Nonaccruing loans | $ | 5,100 | Appraised value, as adjusted | Broker quotes and management's knowledge of industry and collateral | 36% - 36% (36%)1 | |||||||||||||||||||||
1 Represents fair value as a percentage of the unpaid principal balance.
Fair Value of Financial Instruments
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 (dollars in thousands):
| December 31, 2025 | ||||||||||||||||||||||||||||||||
| 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 | — | |||||||||||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||||||||||||||
| 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 | $ | 1,043,969 | $ | 1,043,969 | $ | 1,043,969 | $ | — | $ | — | ||||||||||||||||||||||
| Interest-bearing cash and cash equivalents | 390,732 | 390,732 | 390,732 | — | — | |||||||||||||||||||||||||||
| Trading securities: | ||||||||||||||||||||||||||||||||
| U.S. government securities | 21,275 | 21,275 | 1,494 | 19,781 | — | |||||||||||||||||||||||||||
Residential agency mortgage-backed securities | 4,792,695 | 4,792,695 | — | 4,792,695 | — | |||||||||||||||||||||||||||
| Municipal securities | 62,230 | 62,230 | — | 62,230 | — | |||||||||||||||||||||||||||
| Other trading securities | 22,890 | 22,890 | — | 22,890 | — | |||||||||||||||||||||||||||
| Total trading securities | 4,899,090 | 4,899,090 | 1,494 | 4,897,596 | — | |||||||||||||||||||||||||||
| Investment securities: | ||||||||||||||||||||||||||||||||
| Municipal securities | 104,467 | 106,489 | — | 11,674 | 94,815 | |||||||||||||||||||||||||||
Residential agency mortgage-backed securities | 1,880,473 | 1,680,800 | — | 1,680,800 | — | |||||||||||||||||||||||||||
| Commercial agency mortgage-backed securities | 16,220 | 15,357 | — | 15,357 | — | |||||||||||||||||||||||||||
| Other debt securities | 16,288 | 15,283 | — | 15,283 | — | |||||||||||||||||||||||||||
| Total investment securities | 2,017,448 | 1,817,929 | — | 1,723,114 | 94,815 | |||||||||||||||||||||||||||
| Allowance for credit losses | (223) | — | — | — | — | |||||||||||||||||||||||||||
| Investment securities, net of allowance | 2,017,225 | 1,817,929 | — | 1,723,114 | 94,815 | |||||||||||||||||||||||||||
| Available-for-sale securities: | ||||||||||||||||||||||||||||||||
| U.S. Treasury securities | 945 | 945 | 945 | — | — | |||||||||||||||||||||||||||
| Municipal securities | 225,568 | 225,568 | — | 225,568 | — | |||||||||||||||||||||||||||
Residential agency mortgage-backed securities | 8,639,389 | 8,639,389 | — | 8,639,389 | — | |||||||||||||||||||||||||||
Residential non-agency mortgage-backed securities | 781,209 | 781,209 | — | 781,209 | — | |||||||||||||||||||||||||||
Commercial agency mortgage-backed securities | 3,204,016 | 3,204,016 | — | 3,204,016 | — | |||||||||||||||||||||||||||
| Other debt securities | 473 | 473 | — | — | 473 | |||||||||||||||||||||||||||
| Total available-for-sale securities | 12,851,600 | 12,851,600 | 945 | 12,850,182 | 473 | |||||||||||||||||||||||||||
Fair value option securities - Residential agency mortgage-backed securities | 17,876 | 17,876 | — | 17,876 | — | |||||||||||||||||||||||||||
| Residential mortgage loans held for sale | 77,561 | 77,561 | — | 70,564 | 6,997 | |||||||||||||||||||||||||||
| Loans: | ||||||||||||||||||||||||||||||||
| Commercial | 15,030,136 | 14,903,851 | — | — | 14,903,851 | |||||||||||||||||||||||||||
| Commercial real estate | 5,058,452 | 4,933,396 | — | — | 4,933,396 | |||||||||||||||||||||||||||
| Loans to individuals | 4,026,136 | 3,872,299 | — | — | 3,872,299 | |||||||||||||||||||||||||||
| Total loans | 24,114,724 | 23,709,546 | — | — | 23,709,546 | |||||||||||||||||||||||||||
| Allowance for loan losses | (280,035) | — | — | — | — | |||||||||||||||||||||||||||
| Loans, net of allowance | 23,834,689 | 23,709,546 | — | — | 23,709,546 | |||||||||||||||||||||||||||
| Mortgage servicing rights | 338,145 | 338,145 | — | — | 338,145 | |||||||||||||||||||||||||||
Derivative instruments with positive fair value, net of cash margin | 242,809 | 242,809 | 656 | 242,153 | — | |||||||||||||||||||||||||||
| Deposits with no stated maturity | 34,655,820 | 34,655,820 | — | — | 34,655,820 | |||||||||||||||||||||||||||
| Time deposits | 3,535,410 | 3,522,242 | — | — | 3,522,242 | |||||||||||||||||||||||||||
| Other borrowed funds | 4,322,979 | 4,323,174 | — | — | 4,323,174 | |||||||||||||||||||||||||||
| Subordinated debentures | 131,200 | 121,057 | — | 121,057 | — | |||||||||||||||||||||||||||
Derivative instruments with negative fair value, net of cash margin | 237,582 | 237,582 | 3,391 | 234,191 | — | |||||||||||||||||||||||||||
Because no market exists for certain of these financial instruments and management does not intend to sell these financial instruments, the fair values shown in the tables above may not represent values at which the respective financial instruments could be sold individually or in the aggregate at the given reporting date.
Fair Value Election
As more fully disclosed in Note 2 and Note 7 to the Consolidated Financial Statements, the Company has elected to carry all securities held as economic hedges against changes in the fair value of MSR and all residential mortgage loans originated for sale at fair value. Changes in the fair value of these financial instruments are recognized in earnings.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 23, 2022 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.