Fair Value Measurement and Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2017

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 March 31, 2017 and December 31, 2016:




	Assets (Liabilities) Measured at Fair Value on a Recurring Basis as of March 31, 2017
($ 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	$	700,860		$	700,860	$	—		$	—
U.S. government agency and U.S. government sponsored enterprise debt securities	180,863			—		180,863			—
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	264,522			—		264,522			—
Residential mortgage-backed securities	1,179,755			—		1,179,755			—
Municipal securities	147,069			—		147,069			—
Non-agency residential mortgage-backed securities:
Investment grade	10,730			—		10,730			—
Corporate debt securities:
Investment grade	2,254			—		2,254			—
Non-investment grade	9,184			—		9,184			—
Foreign bonds:
Investment grade	425,868			—		425,868			—
Other securities	40,929			31,075		9,854			—
Total available-for-sale investment securities	$	2,962,034		$	731,935	$	2,230,099		$	—

Derivative assets:
Interest rate swaps and options	$	61,586		$	—	$	61,586		$	—
Foreign exchange contracts	$	8,220		$	—	$	8,220		$	—
Credit risk participation agreements (“RPAs”)	$	3		$	—	$	3		$	—

Derivative liabilities:
Interest rate swaps on certificates of deposit	$	(6,793	)	$	—	$	(6,793	)	$	—
Interest rate swaps and options	$	(60,204	)	$	—	$	(60,204	)	$	—
Foreign exchange contracts	$	(7,357	)	$	—	$	(7,357	)	$	—
RPAs	$	(2	)	$	—	$	(2	)	$	—




	Assets (Liabilities) Measured at Fair Value on a Recurring Basis as of December 31, 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	$	720,479		$	720,479	$	—		$	—
U.S. government agency and U.S. government sponsored enterprise debt securities	274,866			—		274,866			—
U.S. government agency and U.S. government sponsored enterprise mortgage-backed securities:
Commercial mortgage-backed securities	266,799			—		266,799			—
Residential mortgage-backed securities	1,258,747			—		1,258,747			—
Municipal securities	147,654			—		147,654			—
Non-agency residential mortgage-backed securities:
Investment grade	11,477			—		11,477			—
Corporate debt securities:
Investment grade	222,377			—		222,377			—
Non-investment grade	9,173			—		9,173			—
Foreign bonds:
Investment grade	383,894			—		383,894			—
Other securities	40,329			30,991		9,338			—
Total available-for-sale investment securities	$	3,335,795		$	751,470	$	2,584,325		$	—

Derivative assets:
Foreign currency forward contracts	$	4,325		$	—	$	4,325		$	—
Interest rate swaps and options	$	67,578		$	—	$	67,578		$	—
Foreign exchange contracts	$	11,874		$	—	$	11,874		$	—
RPAs	$	3		$	—	$	3		$	—

Derivative liabilities:
Interest rate swaps on certificates of deposit	$	(5,976	)	$	—	$	(5,976	)	$	—
Interest rate swaps and options	$	(65,131	)	$	—	$	(65,131	)	$	—
Foreign exchange contracts	$	(11,213	)	$	—	$	(11,213	)	$	—
RPAs	$	(3	)	$	—	$	(3	)	$	—

Schedule of assets measured at fair value on a nonrecurring basis

The following tables present the carrying amounts of assets included on the Consolidated Balance Sheets that had fair value changes measured on a nonrecurring basis:




	Assets Measured at Fair Value on a Nonrecurring Basis as of March 31, 2017
($ 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”)	$	10,042	$	—	$	—	$	10,042
Commercial and industrial (“C&I”)	47,829		—		—		47,829
Residential	2,522		—		—		2,522
Consumer	610		—		—		610
Total non-PCI impaired loans	$	61,003	$	—	$	—	$	61,003
OREO	$	70	$	—	$	—	$	70




	Assets Measured at Fair Value on a Nonrecurring Basis as of December 31, 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:
CRE	$	14,908	$	—	$	—	$	14,908
C&I	52,172		—		—		52,172
Residential	2,464		—		—		2,464
Consumer	610		—		—		610
Total non-PCI impaired loans	$	70,154	$	—	$	—	$	70,154
OREO	$	345	$	—	$	—	$	345
Loans held-for-sale	$	22,703	$	—	$	22,703	$	—

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

The following table presents the fair value adjustments of assets measured on a nonrecurring basis recognized during the three months ended and which were included on the Consolidated Balance Sheets as of March 31, 2017 and 2016:




	Three Months Ended March 31,
($ in thousands)	2017			2016
Non-PCI impaired loans:
CRE	$	(64	)	$	2,178
C&I	32			(1,935		)
Residential	82			(83		)
Consumer	(1		)	3
Total non-PCI impaired loans	$	49		$	163
OREO	$	(285	)	$	(461	)
Loans held-for-sale	$	—		$	(2,351	)

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 March 31, 2017 and December 31, 2016:




($ in thousands)	March 31, 2017
($ in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	2,434,643	$	2,434,643	$	—	$	—	$	2,434,643
Interest-bearing deposits with banks	$	249,849	$	—	$	249,849	$	—	$	249,849
Resale agreements ⁽¹⁾	$	1,650,000	$	—	$	1,628,839	$	—	$	1,628,839
Held-to-maturity investment security	$	132,497	$	—	$	—	$	133,656	$	133,656
Loans held-for-sale	$	28,931	$	—	$	28,931	$	—	$	28,931
Loans held-for-investment, net	$	26,198,198	$	—	$	—	$	25,825,039	$	25,825,039
Restricted equity securities	$	73,019	$	—	$	73,019	$	—	$	73,019
Accrued interest receivable	$	102,067	$	—	$	102,067	$	—	$	102,067
Financial liabilities:
Customer deposits:
Demand, interest checking, savings and money market deposits	$	24,700,811	$	—	$	24,700,811	$	—	$	24,700,811
Time deposits	$	5,842,164	$	—	$	5,837,924	$	—	$	5,837,924
Short-term borrowings	$	42,023	$	—	$	42,023	$	—	$	42,023
FHLB advances	$	322,196	$	—	$	336,619	$	—	$	336,619
Repurchase agreements ⁽¹⁾	$	200,000	$	—	$	260,545	$	—	$	260,545
Long-term debt	$	181,388	$	—	$	182,502	$	—	$	182,502
Accrued interest payable	$	9,626	$	—	$	9,626	$	—	$	9,626


(1)	Resale and repurchase agreements are reported net pursuant to ASC 210-20-45, Balance Sheet Offsetting. As of March 31, 2017, $250.0 million out of $450.0 million of repurchase agreements was eligible for netting against resale agreements.




($ in thousands)	December 31, 2016
($ in thousands)	Carrying Amount		Level 1		Level 2		Level 3		Estimated Fair Value
Financial assets:
Cash and cash equivalents	$	1,878,503	$	1,878,503	$	—	$	—	$	1,878,503
Interest-bearing deposits with banks	$	323,148	$	—	$	323,148	$	—	$	323,148
Resale agreements ⁽¹⁾	$	2,000,000	$	—	$	1,980,457	$	—	$	1,980,457
Held-to-maturity investment security	$	143,971	$	—	$	—	$	144,593	$	144,593
Loans held-for-sale	$	23,076	$	—	$	23,076	$	—	$	23,076
Loans held-for-investment, net	$	25,242,619	$	—	$	—	$	24,915,143	$	24,915,143
Restricted equity securities	$	72,775	$	—	$	72,775	$	—	$	72,775
Accrued interest receivable	$	100,524	$	—	$	100,524	$	—	$	100,524
Financial liabilities:
Customer deposits:
Demand, interest checking, savings and money market deposits	$	24,275,714	$	—	$	24,275,714	$	—	$	24,275,714
Time deposits	$	5,615,269	$	—	$	5,611,746	$	—	$	5,611,746
Short-term borrowings	$	60,050	$	—	$	60,050	$	—	$	60,050
FHLB advances	$	321,643	$	—	$	334,859	$	—	$	334,859
Repurchase agreements ⁽¹⁾	$	350,000	$	—	$	411,368	$	—	$	411,368
Long-term debt	$	186,327	$	—	$	186,670	$	—	$	186,670
Accrued interest payable	$	9,440	$	—	$	9,440	$	—	$	9,440


(1)	Resale and repurchase agreements are reported net pursuant to ASC 210-20-45, Balance Sheet Offsetting. As of December 31, 2016, $100.0 million out of $450.0 million of repurchase agreements was eligible for netting against resale agreements.

Fair Value, Measurements, Nonrecurring

Quantitative information

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

The following table presents the quantitative information about the significant unobservable inputs used in the valuation of assets measured on a nonrecurring basis classified as Level 3 as of March 31, 2017 and December 31, 2016:




($ in thousands)	Fair Value Measurements (Level 3)		Valuation Technique(s)	Unobservable Input(s)	Range of Inputs	Weighted Average
March 31, 2017
Non-PCI impaired loans	$	31,453	Discounted cash flow	Discount	0% — 74%	11%
	$	29,550	Market comparables	Discount ⁽¹⁾	0% — 100%	7%
OREO	$	70	Appraisal	Selling cost	8%	8%
December 31, 2016
Non-PCI impaired loans	$	31,835	Discounted cash flow	Discount	0% — 62%	7%
	$	38,319	Market comparables	Discount ⁽¹⁾	0% — 100%	18%
OREO	$	345	Appraisal	Selling cost	8%	8%


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