Fair Values of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2013

Summary Of Balances Of Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following tables present the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented:



	June 30, 2013
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	210,975	$	—	$	210,975	$	—
U.S. Government agencies	958,458		—		958,458		—
Municipal	150,127		—		117,695		32,432
Corporate notes and other	141,933		—		141,933		—
Mortgage-backed	332,767		—		332,767		—
Equity securities	49,564		—		27,136		22,428
Trading account securities	659		—		659		—
Mortgage loans held-for-sale	525,027		—		525,027		—
Mortgage servicing rights	8,636		—		—		8,636
Nonqualified deferred compensations assets	6,793		—		6,793		—
Derivative assets	60,554		—		60,554		—
Total	$	2,445,493	$	—	$	2,381,997	$	63,496
Derivative liabilities	$	37,654	$	—	$	37,654	$	—



	December 31, 2012
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	219,487	$	—	$	219,487	$	—
U.S. Government agencies	990,039		—		990,039		—
Municipal	110,471		—		79,701		30,770
Corporate notes and other	154,806		—		154,806		—
Mortgage-backed	271,574		—		271,574		—
Equity securities	49,699		—		27,530		22,169
Trading account securities	583		—		583		—
Mortgage loans held-for-sale	385,033		—		385,033		—
Mortgage servicing rights	6,750		—		—		6,750
Nonqualified deferred compensations assets	5,532		—		5,532		—
Derivative assets	53,906		—		53,906		—
Total	$	2,247,880	$	—	$	2,188,191	$	59,689
Derivative liabilities	$	57,751	$	—	$	57,751	$	—



	June 30, 2012
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	25,243	$	—	$	25,243	$	—
U.S. Government agencies	640,212		—		640,212		—
Municipal	79,728		—		54,191		25,537
Corporate notes and other	158,227		—		158,227		—
Mortgage-backed	255,742		—		255,742		—
Equity securities	37,550		—		17,332		20,218
Trading account securities	608		—		608		—
Mortgage loans held-for-sale	511,566		—		511,566		—
Mortgage servicing rights	6,647		—		—		6,647
Nonqualified deferred compensations assets	5,207		—		5,207		—
Derivative assets	53,666		—		53,666		—
Total	$	1,774,396	$	—	$	1,721,994	$	52,402
Derivative liabilities	$	61,380	$	—	$	61,380	$	—

Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis

The changes in Level 3 assets measured at fair value on a recurring basis during the three and six months ended June 30, 2013 are summarized as follows:



				Equity securities			Mortgage servicing rights
(Dollars in thousands)	Municipal			Equity securities			Mortgage servicing rights
Balance at March 31, 2013	$	32,324		$	24,470		$	7,344
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—			1,292
Other comprehensive income	(302		)	(2,042		)	—
Purchases	660			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	(250		)	—			—
Net transfers into/(out of) Level 3	—			—			—
Balance at June 30, 2013	$	32,432		$	22,428		$	8,636


(1)	Changes in the balance of mortgage servicing rights are recorded as a component of mortgage banking revenue in non-interest income.



				Equity securities		Mortgage servicing rights
(Dollars in thousands)	Municipal			Equity securities		Mortgage servicing rights
Balance at January 1, 2013	$	30,770		$	22,169	$	6,750
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—		1,886
Other comprehensive income	(314		)	259		—
Purchases	2,347			—		—
Issuances	—			—		—
Sales	—			—		—
Settlements	(371		)	—		—
Net transfers into/(out of) Level 3	—			—		—
Balance at June 30, 2013	$	32,432		$	22,428	$	8,636


(1)	Changes in the balance of mortgage servicing rights are recorded as a component of mortgage banking revenue in non-interest income.



				Equity securities			Mortgage servicing rights
(Dollars in thousands)	Municipal			Equity securities			Mortgage servicing rights
Balance at March 31, 2012	$	25,535		$	21,224		$	7,201
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—			(554		)
Other comprehensive income	34			(1,006		)	—
Purchases	—			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	(32		)	—			—
Net transfers into/(out of) Level 3	—			—			—
Balance at June 30, 2012	$	25,537		$	20,218		$	6,647


(1)	Changes in the balance of mortgage servicing rights are recorded as a component of mortgage banking revenue in non-interest income.



				Equity securities		Mortgage servicing rights
(Dollars in thousands)	Municipal			Equity securities		Mortgage servicing rights
Balance at January 1, 2012	$	24,211		$	18,971	$	6,700
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—		(53		)
Other comprehensive income	36			1,247		—
Purchases	3,840			—		—
Issuances	—			—		—
Sales	—			—		—
Settlements	(148		)	—		—
Net transfers out of Level 3 ⁽²⁾	(2,402		)	—		—
Balance at June 30, 2012	$	25,537		$	20,218	$	6,647


(1)	Changes in the balance of mortgage servicing rights are recorded as a component of mortgage banking revenue in non-interest income.


(2)	During the first quarter of 2012, one municipal security was transferred out of Level 3 into Level 2 as observable market information was available that market participants would use in pricing these securities. Transfers out of Level 3 are recognized at the end of the reporting period.

Summary Of Assets Measured At Fair Value On A Nonrecurring Basis

For assets measured at fair value on a nonrecurring basis that were still held in the balance sheet at the end of the period, the following table provides the carrying value of the related individual assets or portfolios at June 30, 2013.



	June 30, 2013								Three Months Ended June 30, 2013 Fair Value Losses Recognized		Six Months Ended June 30, 2013 Fair Value Losses Recognized
(Dollars in thousands)	Total		Level 1		Level 2		Level 3				Six Months Ended June 30, 2013 Fair Value Losses Recognized
Impaired loans—collateral based	$	104,050	$	—	$	—	$	104,050	$	10,678	$	16,050
Other real estate owned ⁽¹⁾	57,025		—		—		57,025		5,379		8,338
Mortgage loans held-for-sale, at lower of cost or market	12,964		—		12,964		—		—		—
Total	$	174,039	$	—	$	12,964	$	161,075	$	16,057	$	24,388


(1)	Fair value losses recognized on other real estate owned include valuation adjustments and charge-offs during the respective period.

Schedule Of Valuation Techniques And Significant Unobservable Inputs Used To Measure Both Recurring And Non-Recurring

The valuation techniques and significant unobservable inputs used to measure both recurring and non-recurring Level 3 fair value measurements at June 30, 2013 were as follows:

(Dollars in thousands)

Fair Value

Valuation Methodology

Significant Unobservable Input

Range

of Inputs

Weighted

Average

of Inputs

Impact to valuation

from an increased or

higher input value

Measured at fair value on a recurring basis:

Municipal Securities

32,432

Bond pricing

Equivalent rating

BBB-AAA

N/A

Increase

Other Equity Securities

22,428

Discounted cash flows

Discount rate

1.15%-1.97%

1.61%

Decrease

Mortgage Servicing Rights

8,636

Discounted cash flows

Discount rate

10%-13.5%

10.18%

Decrease

Constant prepayment rate (CPR)

11%-17%

13.50%

Decrease

Measured at fair value on a non-recurring basis:

Impaired loans—collateral based

104,050

Appraisal value

N/A

Other real estate owned

57,025

Appraisal value

Property specific impairment adjustment

0%-61%

7.48%

Decrease

Summary Of Carrying Amounts And Estimated Fair Values Of Financial Instruments

The carrying amounts and estimated fair values of the Company’s financial instruments as of the dates shown:



	At June 30, 2013				At December 31, 2012				At June 30, 2012
	Carrying		Fair		Carrying		Fair		Carrying		Fair
(Dollars in thousands)	Value		Value		Value		Value		Value		Value
Financial Assets:
Cash and cash equivalents	$	233,299	$	233,299	$	315,028	$	315,028	$	191,756	$	191,756
Interest bearing deposits with banks	440,656		440,656		1,035,743		1,035,743		1,117,888		1,117,888
Available-for-sale securities	1,843,824		1,843,824		1,796,076		1,796,076		1,196,702		1,196,702
Trading account securities	659		659		583		583		608		608
Brokerage customer receivables	26,214		26,214		24,864		24,864		31,448		31,448
Federal Home Loan Bank and Federal Reserve Bank stock, at cost	79,354		79,354		79,564		79,564		92,792		92,792
Mortgage loans held-for-sale, at fair value	525,027		525,027		385,033		385,033		511,566		511,566
Mortgage loans held-for-sale, at lower of cost or market	12,964		13,113		27,167		27,568		14,538		14,752
Total loans	12,971,494		13,613,298		12,389,030		13,053,101		11,816,904		12,510,167
Mortgage servicing rights	8,636		8,636		6,750		6,750		6,647		6,647
Nonqualified deferred compensation assets	6,793		6,793		5,532		5,532		5,207		5,207
Derivative assets	60,554		60,554		53,906		53,906		53,666		53,666
FDIC indemnification asset	137,681		137,681		208,160		208,160		222,568		222,568
Accrued interest receivable and other	163,703		163,703		157,157		157,157		146,360		146,360
Total financial assets	$	16,510,858	$	17,152,811	$	16,484,593	$	17,149,065	$	15,408,650	$	16,102,127
Financial Liabilities
Non-maturity deposits	$	10,023,533	10,023,533		$	9,447,633	$	9,447,633	$	8,076,439	$	8,076,439
Deposits with stated maturities	4,342,321		4,359,361		4,980,911		5,013,757		4,981,142		5,010,700
Notes payable	1,729		1,729		2,093		2,093		2,457		2,457
Federal Home Loan Bank advances	585,942		591,183		414,122		425,431		564,301		574,231
Subordinated notes	10,000		10,000		15,000		15,000		15,000		15,000
Other borrowings	252,776		252,776		274,411		274,411		375,523		375,523
Secured borrowings - owed to securitization investors	—		—		—		—		360,825		361,918
Junior subordinated debentures	249,493		250,597		249,493		250,428		249,493		250,402
Derivative liabilities	37,654		37,654		57,751		57,751		61,380		61,380
Accrued interest payable and other	11,293		11,293		11,589		11,589		12,398		12,398
Total financial liabilities	$	15,514,741	$	15,538,126	$	15,453,003	$	15,498,093	$	14,698,958	$	14,740,448

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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