Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2013

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets measured at fair value on a recurring basis as of March 31, 2013 and December 31, 2012 (in thousands):


	Fair Value Measurement As of March 31, 2013
Description	March 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
U.S. Treasury	$	1,733	$	1,733	$	—	$	—
U.S. Agencies		559		—		559		—
Mortgage-backed		33,090		—		33,090		—
State and political subdivisions		5,377		—		5,377		—
Trading – other		31,829		31,810		19		—

Trading securities		72,588		33,543		39,045		—

U.S. Treasury		122,821		122,821		—		—
U.S. Agencies		1,048,972		—		1,048,972		—
Mortgage-backed		3,270,718		—		3,270,718		—
State and political subdivisions		1,969,936		—		1,969,936		—
Corporates		429,137		429,137		—		—
Commercial paper		—		—		—		—

Available for sale securities		6,841,584		551,958		6,289,626		—

Company-owned life insurance		11,144		—		11,144		—
Derivatives		2,870		—		2,870		—

Total	$	6,928,186	$	585,501	$	6,342,685	$	—

Liabilities
Deferred compensation	$	16,172	$	16,172	$	—	$	—
Contingent consideration liability		49,442		—		—		49,442
Derivatives		2,886		—		2,886		—

Total	$	68,500	$	16,172	$	2,886	$	49,442


	Fair Value Measurement as of December 31, 2012
Description	December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
U.S. Treasury	$	400	$	400	$	—	$	—
U.S. Agencies		506		—		506		—
Mortgage-backed		11,288		—		11,288		—
State and political subdivisions		12,913		—		12,913		—
Trading – other		30,657		30,657		—		—

Trading securities		55,764		31,057		24,707		—

U.S. Treasury		117,851		117,851		—		—
U.S. Agencies		1,026,115		—		1,026,115		—
Mortgage-backed		3,556,193		—		3,556,193		—
State and political subdivisions		1,892,684		—		1,892,684		—
Corporates		338,887		338,887				—
Commercial paper		5,733		—		5,733		—

Available for sale securities		6,937,463		456,738		6,480,725		—
Company-owned life insurance		10,539		—		10,539		—
Derivatives		3,503		—		3,503		—

Total	$	7,007,269	$	487,795	$	6,519,474	$	—

Liabilities
Deferred compensation		13,705	$	13,705	$	—	$	—
Contingent consideration liability		51,163		—		—		51,163
Derivatives		3,625		—		3,625		—

Total	$	68,493	$	13,705	$	3,625	$	51,163

Reconciliation of Beginning and Ending Contingent Consideration Liability

The following table reconciles the beginning and ending balances of the contingent consideration liability:


	Three Months Ended March 31,
	2013			2012
Beginning Balance	$	51,163		$	72,046
Payment of contingent considerations on acquisitions		(4,899	)		(7,651	)
Expense (income) from fair value adjustments		3,178			(6,972	)

Ending Balance	$	49,442		$	57,423

Quantitative Information about Significant Unobservable Input used in Fair Value Measurement for Contingent Consideration Liability Measured on Recurring Basis

The following table presents certain quantitative information about the significant unobservable input used in the fair value measurement for the contingent consideration liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3):


Description	Valuation Techniques	Significant Unobservable Inputs	Range (Weighted Average)
Liabilities
Contingent consideration liability	Discounted cash flows	Revenue and expense growth percentage		6% - 31%

Assets Measured at Fair Value on Non-Recurring Basis

Assets measured at fair value on a non-recurring basis as of March 31, 2013 and December 31, 2012 (in thousands):


	Fair Value Measurement at March 31, 2013 Using
Description	March 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) Recognized During the Three Months Ended March 31
Impaired loans	$	11,374	$	—	$	—	$	11,374	$	(1,759	)
Other real estate owned		123		—		—		123	$	—

Total	$	11,497	$	—	$	—	$	11,497	$	(1,759	)


	Fair Value Measurement at December 31, 2012 Using
Description	December 31, 2012		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Gains (Losses) Recognized During the Twelve Months Ended December 31
Impaired loans	$	5,178	$	—	$	—	$	5,178	$	1,756
Other real estate owned		924		—		—		924	$	(455	)

Total	$	6,102	$	—	$	—	$	6,102	$	1,301

Estimated Fair Value of Financial Instruments

The estimated fair value of the Company’s financial instruments at March, 31, 2013 and December 31, 2012 are as follows (in millions):


	Fair Value Measurement at March 31, 2013 Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Estimated Fair Value
FINANCIAL ASSETS
Securities held to maturity	$	129.5	$	—	$	129.5	$	—	$	129.5
Federal Reserve Bank and other stock		26.1		—		26.1		—		26.1
Loans (exclusive of allowance for loan loss)		6,017.0		—		6,086.9		—		6,086.9
FINANCIAL LIABILITIES
Time deposits		1,066.6		—		1,071.7		—		1,071.7
Long-term debt		4.4		—		4.6		—		4.6
OFF-BALANCE SHEET ARRANGEMENTS
Commitments to extend credit for loans										1.4
Commercial letters of credit										0.1
Standby letters of credit										0.4


	Fair Value Measurement at December 31, 2012 Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Estimated Fair Value
FINANCIAL ASSETS
Securities held to maturity	$	114.8	$	—	$	129.5	$	—	$	129.5
Federal Reserve Bank and other stock		26.3		—		26.3		—		26.3
Loans (exclusive of allowance for loan loss)		5,690.6		—		5,754.1		—		5,754.1
FINANCIAL LIABILITIES
Time deposits		1,282.3		—		1,287.9		—		1,287.9
Long-term debt		5.9		—		6.1		—		6.1
OFF-BALANCE SHEET ARRANGEMENTS
Commitments to extend credit for loans										5.6
Commercial letters of credit										0.2
Standby letters of credit										2.1

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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