Fair Values of Assets and Liabilities (Tables)

9 Months Ended

Sep. 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:



	September 30, 2013
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	210,902	$	—	$	210,902	$	—
U.S. Government agencies	912,689		—		912,689		—
Municipal	150,647		—		117,959		32,688
Corporate notes and other	139,181		—		139,181		—
Mortgage-backed	319,193		—		319,193		—
Equity securities	49,271		—		28,829		20,442
Trading account securities	259		—		259		—
Mortgage loans held-for-sale	329,186		—		329,186		—
Mortgage servicing rights	8,608		—		—		8,608
Nonqualified deferred compensations assets	6,801		—		6,801		—
Derivative assets	57,573		—		57,573		—
Total	$	2,184,310	$	—	$	2,122,572	$	61,738
Derivative liabilities	$	49,300	$	—	$	49,300	$	—



	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	$	—



	September 30, 2012
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	25,256	$	—	$	25,256	$	—
U.S. Government agencies	628,184		—		628,184		—
Municipal	99,384		—		63,629		35,755
Corporate notes and other	156,989		—		156,989		—
Mortgage-backed	306,238		—		306,238		—
Equity securities	40,717		—		18,462		22,255
Trading account securities	635		—		635		—
Mortgage loans held-for-sale	548,300		—		548,300		—
Mortgage servicing rights	6,276		—		—		6,276
Nonqualified deferred compensations assets	5,438		—		5,438		—
Derivative assets	65,990		—		65,990		—
Total	$	1,883,407	$	—	$	1,819,121	$	64,286
Derivative liabilities	$	79,977	$	—	$	79,977	$	—

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 nine months ended September 30, 2013 and 2012 are summarized as follows:



				Equity securities			Mortgage servicing rights
(Dollars in thousands)	Municipal			Equity securities			Mortgage servicing rights
Balance at June 30, 2013	$	32,432		$	22,428		$	8,636
Total net gains (losses) included in:
Net loss ⁽¹⁾	—			—			(28		)
Other comprehensive loss	(2		)	(1,986		)	—
Purchases	6,225			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	(5,967		)	—			—
Net transfers into/(out of) Level 3	—			—			—
Balance at September 30, 2013	$	32,688		$	20,442		$	8,608


(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⁾	—			—			1,858
Other comprehensive loss	(316		)	(1,727		)	—
Purchases	8,572			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	(6,338		)	—			—
Net transfers into/(out of) Level 3	—			—			—
Balance at September 30, 2013	$	32,688		$	20,442		$	8,608


(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 June 30, 2012	$	25,537	$	20,218	$	6,647
Total net gains (losses) included in:
Net loss ⁽¹⁾	—		—		(371		)
Other comprehensive income	14		2,037		—
Purchases	10,204		—		—
Issuances	—		—		—
Sales	—		—		—
Settlements	—		—		—
Net transfers into/(out of) Level 3	—		—		—
Balance at September 30, 2012	$	35,755	$	22,255	$	6,276


(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 loss ⁽¹⁾	—			—		(424		)
Other comprehensive income	50			3,284		—
Purchases	14,044			—		—
Issuances	—			—		—
Sales	—			—		—
Settlements	(148		)	—		—
Net transfers out of Level 3 ⁽²⁾	(2,402		)	—		—
Balance at September 30, 2012	$	35,755		$	22,255	$	6,276


(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 September 30, 2013.



	September 30, 2013								Three Months Ended September 30, 2013 Fair Value Losses Recognized		Nine Months Ended September 30, 2013 Fair Value Losses Recognized
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Impaired loans—collateral based	$	97,093	$	—	$	—	$	97,093	$	8,380	$	24,430
Other real estate owned, including covered other real estate owned ⁽¹⁾	142,287		—		—		142,287		2,269		8,403
Mortgage loans held-for-sale, at lower of cost or market	5,159		—		5,159		—		—		—
Total	$	244,539	$	—	$	5,159	$	239,380	$	10,649	$	32,833


(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 September 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

32,688

Bond pricing

Equivalent rating

BBB-AA+

N/A

Increase

Other Equity Securities

20,442

Discounted cash flows

Discount rate

1.83%-2.71%

2.28%

Decrease

Mortgage Servicing Rights

8,608

Discounted cash flows

Discount rate

10%-13.5%

10.17%

Decrease

Constant prepayment rate (CPR)

11%-17%

13.55%

Decrease

Measured at fair value on a non-recurring basis:

Impaired loans—collateral based

97,093

Appraisal value

N/A

Other real estate owned, including covered other real estate owned

142,287

Appraisal value

Property specific impairment adjustment

0%-48%

1.87%

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 September 30, 2013				At December 31, 2012				At September 30, 2012
	Carrying		Fair		Carrying		Fair		Carrying		Fair
(Dollars in thousands)	Value		Value		Value		Value		Value		Value
Financial Assets:
Cash and cash equivalents	$	330,637	$	330,637	$	315,028	$	315,028	$	212,814	$	212,814
Interest bearing deposits with banks	681,834		681,834		1,035,743		1,035,743		934,430		934,430
Available-for-sale securities	1,781,883		1,781,883		1,796,076		1,796,076		1,256,768		1,256,768
Trading account securities	259		259		583		583		635		635
Brokerage customer receivables	29,253		29,253		24,864		24,864		30,633		30,633
Federal Home Loan Bank and Federal Reserve Bank stock, at cost	76,755		76,755		79,564		79,564		80,687		80,687
Mortgage loans held-for-sale, at fair value	329,186		329,186		385,033		385,033		548,300		548,300
Mortgage loans held-for-sale, at lower of cost or market	5,159		5,218		27,167		27,568		21,685		22,042
Total loans	12,997,027		13,576,959		12,389,030		13,053,101		12,147,425		12,835,354
Mortgage servicing rights	8,608		8,608		6,750		6,750		6,276		6,276
Nonqualified deferred compensation assets	6,801		6,801		5,532		5,532		5,438		5,438
Derivative assets	57,573		57,573		53,906		53,906		65,990		65,990
FDIC indemnification asset	100,313		100,313		208,160		208,160		238,305		238,305
Accrued interest receivable and other	165,209		165,209		157,157		157,157		157,923		157,923
Total financial assets	$	16,570,497	$	17,150,488	$	16,484,593	$	17,149,065	$	15,707,309	$	16,395,595
Financial Liabilities
Non-maturity deposits	$	10,386,493	10,386,493		$	9,447,633	$	9,447,633	$	8,736,432	$	8,736,432
Deposits with stated maturities	4,260,953		4,272,459		4,980,911		5,013,757		5,111,533		5,149,824
Notes payable	1,546		1,546		2,093		2,093		2,275		2,275
Federal Home Loan Bank advances	387,852		393,602		414,122		425,431		414,211		427,006
Subordinated notes	10,000		10,000		15,000		15,000		15,000		15,000
Other borrowings	246,870		246,870		274,411		274,411		377,229		377,229
Junior subordinated debentures	249,493		250,751		249,493		250,428		249,493		250,385
Derivative liabilities	49,300		49,300		57,751		57,751		79,977		79,977
Accrued interest payable and other	7,758		7,758		11,589		11,589		11,133		11,133
Total financial liabilities	$	15,600,265	$	15,618,779	$	15,453,003	$	15,498,093	$	14,997,283	$	15,049,261

- 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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