FAIR VALUE MEASUREMENT AND FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of assets (liabilities) measured at fair value on a recurring basis

The following tables present financial assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015:




	Assets (Liabilities) Measured at Fair Value on a Recurring Basis as of June 30, 2016
($ in thousands)	Fair Value Measurements			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Available-for-sale investment securities:
U.S. Treasury securities	$	488,560		$	488,560	$	—		$	—
U.S. government agency and U.S. government sponsored enterprise debt securities	703,929			—		703,929			—
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	308,364			—		308,364			—
Residential mortgage-backed securities	1,058,901			—		1,058,901			—
Municipal securities	153,903			—		153,903			—
Non-agency residential mortgage-backed securities:
Investment grade	55,975			—		55,975			—
Corporate debt securities:
Investment grade	416,864			—		416,864			—
Non-investment grade	8,408			—		8,408			—
Other securities	45,428			36,496		8,932			—
Total available-for-sale investment securities	$	3,240,332		$	525,056	$	2,715,276		$	—

Derivative assets:
Foreign currency forward contracts	$	1,732		$	—	$	1,732		$	—
Interest rate swaps and options	$	157,035		$	—	$	157,035		$	—
Foreign exchange contracts	$	10,078		$	—	$	10,078		$	—

Derivative liabilities:
Interest rate swaps on certificates of deposit	$	(810	)	$	—	$	(810	)	$	—
Interest rate swaps and options	$	(159,776	)	$	—	$	(159,776	)	$	—
Foreign exchange contracts	$	(8,634	)	$	—	$	(8,634	)	$	—
Credit risk participation agreements (“RPAs”)	$	(12	)	$	—	$	(12	)	$	—




	Assets (Liabilities) Measured at Fair Value on a Recurring Basis as of December 31, 2015
($ in thousands)	Fair Value Measurements			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Available-for-sale investment securities:
U.S. Treasury securities	$	998,515		$	998,515	$	—		$	—
U.S. government agency and U.S. government sponsored enterprise debt securities	768,849			—		768,849			—
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	351,662			—		351,662			—
Residential mortgage-backed securities	997,396			—		997,396			—
Municipal securities	175,649			—		175,649			—
Non-agency residential mortgage-backed securities:
Investment grade	62,393			—		62,393			—
Corporate debt securities:
Investment grade	364,713			—		364,713			—
Non-investment grade	9,642			—		9,642			—
Other securities	44,407			35,635		8,772			—
Total available-for-sale investment securities	$	3,773,226		$	1,034,150	$	2,739,076		$	—

Derivative assets:
Foreign currency forward contracts	$	2,365		$	—	$	2,365		$	—
Interest rate swaps and options	$	67,215		$	—	$	67,215		$	—
Foreign exchange contracts	$	10,254		$	—	$	10,254		$	—

Derivative liabilities:
Interest rate swaps on certificates of deposit	$	(5,213	)	$	—	$	(5,213	)	$	—
Interest rate swaps and options	$	(67,325	)	$	—	$	(67,325	)	$	—
Foreign exchange contracts	$	(9,350	)	$	—	$	(9,350	)	$	—
RPAs	$	(4	)	$	—	$	(4	)	$	—

Reconciliation of major asset and liability categories measured at fair value on a recurring using significant unobservable inputs (level3)

The following table presents a reconciliation of the beginning and ending balances for major asset and liability categories measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2015:




($ in thousands)	Three Months Ended June 30,					Six Months Ended June 30,
	2015					2015
	Corporate Debt Securities: Non-Investment Grade		Embedded Derivative Liabilities			Corporate Debt Securities: Non-Investment Grade			Embedded Derivative Liabilities
Beginning balance	$	—	$	(3,412	)	$	6,528		$	(3,392	)
Total gains (losses) for the period:
Included in earnings ⁽¹⁾	—		—			960			(20		)
Included in other comprehensive income ⁽²⁾	—		—			922			—
Sales and settlements:
Sales	—		—			(7,219		)	—
Settlements	—		3,412			(98		)	3,412
Transfers in and/or out of Level 3	—		—			(1,093		)	—
Ending balance	$	—	$	—		$	—		$	—
Change in unrealized losses included in earnings relating to assets and liabilities held for the period	$	—	$	—		$	—		$	—


(1)	Net gains or losses (realized and unrealized) of corporate debt securities and embedded derivative liabilities are included in Net gains on sales of available-for-sale investment securities and Other operating expense, respectively, on the Consolidated Statements of Income.


(2)	Unrealized gains or losses on available-for-sale investment securities are reported in Other comprehensive income, net of tax, on the Consolidated Statements of Comprehensive Income.

Schedule of assets measured at fair value on a nonrecurring basis

The following tables present the carrying amounts of all assets that were still held as of June 30, 2016 and December 31, 2015 for which a nonrecurring fair value measurement was recorded:




	Assets Measured at Fair Value on a Nonrecurring Basis as of June 30, 2016
($ in thousands)	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Non-PCI impaired loans:
Commercial real estate (“CRE”)	$	21,443	$	—	$	—	$	21,443
Commercial and industrial (“C&I”)	50,362		—		—		50,362
Residential	15,957		—		—		15,957
Consumer	1,531		—		—		1,531
Total non-PCI impaired loans	$	89,293	$	—	$	—	$	89,293
OREO	$	3,647	$	—	$	—	$	3,647
Loans held for sale	$	27,895	$	—	$	27,895	$	—




	Assets Measured at Fair Value on a Nonrecurring Basis as of December 31, 2015
($ in thousands)	Fair Value Measurements		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Non-PCI impaired loans:
CRE	$	17,252	$	—	$	—	$	17,252
C&I	35,558		—		—		35,558
Residential	16,472		—		—		16,472
Consumer	1,180		—		—		1,180
Total non-PCI impaired loans	$	70,462	$	—	$	—	$	70,462
OREO	$	4,929	$	—	$	—	$	4,929
Loans held for sale	$	29,238	$	—	$	29,238	$	—

Schedule of fair value adjustments of certain assets measured on a nonrecurring basis recognized

The following table presents fair value adjustments of certain assets measured on a nonrecurring basis recognized during the three and six months ended and still held as of June 30, 2016 and 2015:




	Three Months Ended June 30,						Six Months Ended June 30,
($ in thousands)	2016			2015			2016			2015
Non-PCI impaired loans:
CRE	$	(261	)	$	(445	)	$	1,908		$	(905	)
C&I	(4,693		)	(6,454		)	(9,149		)	(9,303		)
Residential	(4		)	(216		)	27			(341		)
Consumer	(2		)	(1		)	14			(1		)
Total non-PCI impaired loans	$	(4,960	)	$	(7,116	)	$	(7,200	)	$	(10,550	)
OREO	$	(1,073	)	$	(200	)	$	(1,529	)	$	(258	)
Loans held for sale	$	—		$	(517	)	$	(2,351	)	$	(517	)

Schedule of the carrying and fair values per the fair value hierarchy of certain financial instruments

The following tables present the carrying and fair values per the fair value hierarchy of certain financial instruments, excluding those measured at fair value on a recurring basis, as of June 30, 2016 and December 31, 2015:




($ in thousands)	June 30, 2016
($ in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	1,592,796	$	1,592,796	$	—	$	—	$	1,592,796
Short-term investments	$	229,979	$	—	$	229,979	$	—	$	229,979
Resale agreements ⁽¹⁾	$	1,850,000	$	—	$	1,850,427	$	—	$	1,850,427
Held-to-maturity investment security	$	159,208	$	—	$	—	$	158,279	$	158,279
Loans held for sale	$	51,290	$	—	$	51,290	$	—	$	51,290
Loans receivable, net	$	23,969,599	$	—	$	—	$	23,928,765	$	23,928,765
Investment in FHLB stock	$	18,158	$	—	$	18,158	$	—	$	18,158
Investment in Federal Reserve Bank stock	$	55,216	$	—	$	55,216	$	—	$	55,216
Accrued interest receivable	$	86,503	$	—	$	86,503	$	—	$	86,503
Financial liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	$	22,484,884	$	—	$	22,484,884	$	—	$	22,484,884
Time deposits	$	5,732,359	$	—	$	5,736,110	$	—	$	5,736,110
Short-term borrowings	$	29,499	$	—	$	29,499	$	—	$	29,499
FHLB advances	$	320,526	$	—	$	332,595	$	—	$	332,595
Repurchase agreements ⁽¹⁾	$	200,000	$	—	$	268,353	$	—	$	268,353
Accrued interest payable	$	8,053	$	—	$	8,053	$	—	$	8,053
Long-term debt	$	196,204	$	—	$	196,826	$	—	$	196,826


(1)	Resale and repurchase agreements are reported net pursuant to ASC 210-20-45, Balance Sheet Offsetting. As of June 30, 2016, $250.0 million out of $450.0 million of repurchase agreements was eligible for netting against resale agreements.




	December 31, 2015
($ in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	1,360,887	$	1,360,887	$	—	$	—	$	1,360,887
Short-term investments	$	299,916	$	—	$	299,916	$	—	$	299,916
Resale agreements ⁽¹⁾	$	1,600,000	$	—	$	1,533,961	$	—	$	1,533,961
Loans held for sale	$	31,958	$	—	$	31,958	$	—	$	31,958
Loans receivable, net	$	23,378,789	$	—	$	—	$	23,000,817	$	23,000,817
Investment in FHLB stock	$	28,770	$	—	$	28,770	$	—	$	28,770
Investment in Federal Reserve Bank stock	$	54,932	$	—	$	54,932	$	—	$	54,932
Accrued interest receivable	$	89,243	$	—	$	89,243	$	—	$	89,243
Financial liabilities:
Customer deposit accounts:
Demand, savings and money market deposits	$	20,859,086	$	—	$	20,859,086	$	—	$	20,859,086
Time deposits	$	6,616,895	$	—	$	6,606,942	$	—	$	6,606,942
FHLB advances	$	1,019,424	$	—	$	1,032,000	$	—	$	1,032,000
Accrued interest payable	$	8,848	$	—	$	8,848	$	—	$	8,848
Long-term debt	$	206,084	$	—	$	186,593	$	—	$	186,593


(1)	Resale and repurchase agreements are reported net pursuant to ASC 210-20-45, Balance Sheet Offsetting. As of December 31, 2015, the carrying amount of $450.0 million of repurchase agreements was eligible for netting against resale agreements, resulting in no repurchase agreements’ balances reported.

Fair Value, Measurements, Nonrecurring

Quantitative information

Schedule of quantitative information about significant unobservable inputs used in the valuation of assets and liabilities classified as Level 3

The following table presents quantitative information about significant unobservable inputs used in the valuation of assets measured on a nonrecurring basis classified as Level 3 as of June 30, 2016 and December 31, 2015:




($ in thousands)	Fair Value Measurements (Level 3)		Valuation Technique(s)	Unobservable Input(s)	Range of Inputs	Weighted Average
June 30, 2016
Non-PCI impaired loans	$	48,169	Discounted cash flow	Discount rate	0% — 84%	20%
	$	41,124	Market comparables	Discount rate ⁽¹⁾	0% — 100%	18%
OREO	$	3,647	Appraisal	Selling cost	8%	8%
December 31, 2015
Non-PCI impaired loans	$	27,522	Discounted cash flow	Discount rate	0% — 87%	30%
	$	42,940	Market comparables	Discount rate ⁽¹⁾	0% — 100%	17%
OREO	$	4,929	Appraisal	Selling cost	8%	8%


(1)	Discount rate is adjusted for factors such as liquidation cost of collateral and selling cost.