XML 33 R25.htm IDEA: XBRL DOCUMENT v2.4.0.8
FAIR VALUE (Tables)
3 Months Ended
Mar. 31, 2014
FAIR VALUE  
Assets (Liabilities) Measured at Fair Value on Recurring Basis

 

 

 

 

Assets (Liabilities) Measured at Fair Value on a Recurring Basis

 

 

 

as of March 31, 2014

 

 

 

 

 

Quoted Prices in

 

Significant

 

 

 

 

 

Fair Value

 

Active Markets

 

Other

 

Significant

 

 

 

Measurements

 

for Identical

 

Observable

 

Unobservable

 

 

 

March 31,

 

Assets

 

Inputs

 

Inputs

 

 

 

2014

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

 

 

(In thousands)

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

428,253

 

$

428,253

 

$

 

$

 

U.S. Government agency and U.S. Government sponsored enterprise debt securities

 

384,685

 

 

384,685

 

 

U.S. Government agency and U.S. Government sponsored enterprise mortgage-backed securities:

 

 

 

 

 

 

 

 

 

Commercial mortgage-backed securities

 

119,107

 

 

119,107

 

 

Residential mortgage-backed securities

 

824,105

 

 

824,105

 

 

Municipal securities

 

283,897

 

 

283,897

 

 

Other residential mortgage-backed securities:

 

 

 

 

 

 

 

 

 

Investment grade

 

57,007

 

 

57,007

 

 

Other commercial mortgage-backed securities:

 

 

 

 

 

 

 

 

 

Investment grade

 

51,419

 

 

51,419

 

 

Corporate debt securities:

 

 

 

 

 

 

 

 

 

Investment grade

 

209,691

 

 

209,691

 

 

Non-investment grade

 

15,512

 

 

8,795

 

6,717

 

Other securities

 

101,068

 

 

101,068

 

 

Total investment securities available-for-sale

 

$

2,474,744

 

$

428,253

 

$

2,039,774

 

$

6,717

 

Foreign exchange options

 

$

5,915

 

$

 

$

5,915

 

$

 

Interest rate swaps

 

26,293

 

 

26,293

 

 

Foreign exchange contracts

 

4,378

 

 

4,378

 

 

Derivative liabilities

 

(46,778

)

 

(43,380

)

(3,398

)

 

 

 

Assets (Liabilities) Measured at Fair Value on a Recurring Basis

 

 

 

as of December 31, 2013

 

 

 

 

 

Quoted Prices in

 

Significant

 

 

 

 

 

Fair Value

 

Active Markets

 

Other

 

Significant

 

 

 

Measurements

 

for Identical

 

Observable

 

Unobservable

 

 

 

December 31,

 

Assets

 

Inputs

 

Inputs

 

 

 

2013

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

 

 

(In thousands)

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

U.S. Treasury securities

 

$

491,632

 

$

491,632

 

$

 

$

 

U.S. Government agency and U.S. Government sponsored enterprise debt securities

 

394,323

 

 

394,323

 

 

U.S. Government agency and U.S. Government sponsored enterprise mortgage-backed securities:

 

 

 

 

 

 

 

 

 

Commercial mortgage-backed securities

 

178,870

 

 

178,870

 

 

Residential mortgage-backed securities

 

885,237

 

 

885,237

 

 

Municipal securities

 

280,979

 

 

280,979

 

 

Other residential mortgage-backed securities:

 

 

 

 

 

 

 

 

 

Investment grade

 

46,327

 

 

46,327

 

 

Other commercial mortgage-backed securities:

 

 

 

 

 

 

 

 

 

Investment grade

 

51,617

 

 

51,617

 

 

Corporate debt securities:

 

 

 

 

 

 

 

 

 

Investment grade

 

309,995

 

 

309,995

 

 

Non-investment grade

 

15,101

 

 

8,730

 

6,371

 

Other securities

 

79,716

 

 

79,716

 

 

Total investment securities available-for-sale

 

$

2,733,797

 

$

491,632

 

$

2,235,794

 

$

6,371

 

Foreign exchange options

 

$

6,290

 

$

 

$

6,290

 

$

 

Interest rate swaps

 

28,078

 

 

28,078

 

 

Foreign exchange contracts

 

6,181

 

 

6,181

 

 

Derivative liabilities

 

(50,262

)

 

(46,607

)

(3,655

)

Assets Measured at Fair Value on a Non-Recurring Basis

 

 

 

 

Assets Measured at Fair Value on a Non-Recurring Basis

 

 

 

as of and for the Three Months Ended March 31, 2014

 

 

 

 

 

Quoted Prices in

 

Significant

 

 

 

Total Gains

 

 

 

Fair Value

 

Active Markets

 

Other

 

Significant

 

(Losses) for the

 

 

 

Measurements

 

for Identical

 

Observable

 

Unobservable

 

Three Months Ended

 

 

 

March 31,

 

Assets

 

Inputs

 

Inputs

 

March 31,

 

 

 

2014

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

2014

 

 

 

(In thousands)

 

Non-covered loans:

 

 

 

 

 

 

 

 

 

 

 

Total residential

 

$

17,132

 

$

 

$

 

$

17,132

 

$

(365

)

Total commercial real estate

 

25,888

 

 

 

25,888

 

(464

)

Total commercial and industrial

 

13,272

 

 

 

13,272

 

(6,530

)

Total consumer

 

 

 

 

 

 

Total non-covered loans

 

$

56,292

 

$

 

$

 

$

56,292

 

$

(7,359

)

Non-covered OREO

 

$

745

 

$

 

$

 

$

745

 

$

(74

)

Covered OREO (1)

 

$

899

 

$

 

$

 

$

899

 

$

(452

)

 

 

 

Assets Measured at Fair Value on a Non-Recurring Basis

 

 

 

as of and for the Three Months Ended March 31, 2013

 

 

 

 

 

Quoted Prices in

 

Significant

 

 

 

Total Gains

 

 

 

Fair Value

 

Active Markets

 

Other

 

Significant

 

(Losses) for the

 

 

 

Measurements

 

for Identical

 

Observable

 

Unobservable

 

Three Months Ended

 

 

 

March 31,

 

Assets

 

Inputs

 

Inputs

 

March 31,

 

 

 

2013

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

2013

 

 

 

(In thousands)

Non-covered loans:

 

 

 

 

 

 

 

 

 

 

 

Total residential

 

$

12,969

 

$

 

$

 

$

12,969

 

$

(440

)

Total commercial real estate

 

23,382

 

 

 

23,382

 

(2,115

)

Total commercial and industrial

 

2,566

 

 

 

2,566

 

(2,258

)

Total consumer

 

665

 

 

 

665

 

(116

)

Total non-covered loans

 

$

39,582

 

$

 

$

 

$

39,582

 

$

(4,929

)

Non-covered OREO

 

$

13,227

 

$

 

$

 

$

13,227

 

$

(1,385

)

Covered OREO (1)

 

$

3,720

 

$

 

$

 

$

3,720

 

$

(126

)

 

(1)             Covered OREO results from the WFIB and UCB FDIC-assisted acquisitions for which the Company entered into shared-loss agreements with the FDIC whereby the FDIC will reimburse the Company for 80% of eligible losses. As such, the Company’s liability for losses is 20% of the $452 thousand in losses, or $90 thousand, and 20% of the $126 thousand in losses, or $25 thousand, for the three months ended March 31, 2014 and 2013, respectively.

Reconciliation of assets and liabilities measured at fair value using significant unobservable inputs

 

 

 

 

Investment Securities
Available-for-Sale

 

 

 

 

 

Corporate Debt
Securities

 

 

 

 

 

Non-Investment Grade

 

Derivatives Payable

 

 

 

(In thousands)

 

Opening balance, January 1, 2014

 

$

6,371

 

$

(3,655

)

Total gains or (losses) for the period: (1)

 

 

 

 

 

Included in earnings

 

 

257

 

Included in other comprehensive income (unrealized) (2)

 

434

 

 

Purchases, issues, sales, settlements (3)

 

 

 

 

 

Purchases

 

 

 

Issues

 

 

 

Sales

 

 

 

Settlements

 

(88

)

 

Transfer from investment grade to non-investment grade

 

 

 

Transfers in and/or out of Level 3

 

 

 

Closing balance, March 31, 2014

 

$

6,717

 

$

(3,398

)

Changes in unrealized losses included in earnings relating to assets and liabilities held at the end of March 31, 2014

 

$

 

$

(257

)

 

 

 

Investment Securities
Available-for-Sale

 

 

 

 

 

Corporate Debt
Securities

 

 

 

 

 

Non-Investment Grade

 

Derivatives Payable

 

 

 

(In thousands)

 

Opening balance, January 1, 2013

 

$

4,800

 

$

(3,052

)

Total gains or (losses) for the period: (1)

 

 

 

 

 

Included in earnings

 

 

(181

)

Included in other comprehensive income (unrealized) (2)

 

549

 

 

Purchases, issues, sales, settlements (3)

 

 

 

 

 

Purchases

 

 

 

Issues

 

 

 

Sales

 

 

 

Settlements

 

(65

)

 

Transfer from investment grade to non-investment grade

 

 

 

Transfers in and/or out of Level 3

 

 

 

Closing balance, March 31, 2013

 

$

5,284

 

$

(3,233

)

Changes in unrealized losses included in earnings relating to assets and liabilities held at the end of March 31, 2013

 

$

 

$

181

 

 

(1)             Total gains or losses represent the total realized and unrealized gains and losses recorded for Level 3 assets and liabilities. Realized gains or losses are reported in the condensed consolidated statements of income.

 

(2)             Unrealized gains or losses on investment securities are reported in accumulated other comprehensive income (loss), net of tax, in the condensed consolidated statements of comprehensive income.

 

(3)             Purchases, issuances, sales, and settlements represent Level 3 assets and liabilities that were either purchased, issued, sold, or settled during the period. The amounts are recorded at their end of period fair values.

Carrying amounts and fair values of financial instruments

 

 

 

 

March 31, 2014

 

December 31, 2013

 

 

 

Carrying

 

Estimated

 

Carrying

 

Estimated

 

 

 

Amount

 

Fair Value

 

Amount

 

Fair Value

 

 

 

(In thousands)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,884,855

 

$

1,884,855

 

$

895,820

 

$

895,820

 

Short-term investments

 

323,266

 

323,266

 

257,473

 

257,473

 

Securities purchased under resale agreements

 

1,200,000

 

1,186,314

 

1,300,000

 

1,279,406

 

Investment securities available-for-sale

 

2,474,744

 

2,474,744

 

2,733,797

 

2,733,797

 

Loans held for sale

 

577,353

 

592,769

 

204,970

 

212,469

 

Loans receivable, net

 

19,082,250

 

18,494,494

 

17,600,613

 

16,741,674

 

Investment in Federal Home Loan Bank stock

 

52,110

 

52,110

 

62,330

 

62,330

 

Investment in Federal Reserve Bank stock

 

50,370

 

50,370

 

48,333

 

48,333

 

Accrued interest receivable

 

102,802

 

102,802

 

116,314

 

116,314

 

Foreign exchange options

 

5,915

 

5,915

 

6,290

 

6,290

 

Interest rate swaps

 

26,293

 

26,293

 

28,078

 

28,078

 

Foreign exchange contracts

 

4,378

 

4,378

 

6,181

 

6,181

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

Customer deposit accounts:

 

 

 

 

 

 

 

 

 

Demand, savings and money market deposits

 

16,444,764

 

16,444,764

 

14,588,570

 

14,588,570

 

Time deposits

 

6,383,293

 

6,355,318

 

5,824,348

 

5,791,659

 

Federal Home Loan Bank advances

 

315,620

 

333,835

 

315,092

 

308,521

 

Securities sold under repurchase agreements

 

1,005,316

 

1,134,817

 

995,000

 

1,134,774

 

Accrued interest payable

 

11,582

 

11,582

 

11,178

 

11,178

 

Long-term debt

 

240,675

 

205,012

 

226,868

 

184,415

 

Derivative liabilities

 

46,778

 

46,778

 

50,262

 

50,262

 

Schedule fair value hierarchy for the estimated fair values of financial instruments

 

 

 

 

March 31, 2014

 

 

 

Estimated

 

 

 

 

 

 

 

 

 

Fair Value

 

 

 

 

 

 

 

 

 

Measurements

 

Level 1

 

Level 2

 

Level 3

 

 

 

(In thousands)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,884,855

 

$

1,884,855

 

$

 

$

 

Short-term investments

 

323,266

 

 

323,266

 

 

Securities purchased under resale agreements

 

1,186,314

 

 

1,186,314

 

 

Loans held for sale

 

592,769

 

 

592,769

 

 

Loans receivable, net

 

18,494,494

 

 

 

18,494,494

 

Investment in Federal Home Loan Bank stock

 

52,110

 

 

52,110

 

 

Investment in Federal Reserve Bank stock

 

50,370

 

 

50,370

 

 

Accrued interest receivable

 

102,802

 

 

102,802

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

Customer deposit accounts:

 

 

 

 

 

 

 

 

 

Demand, savings and money market deposits

 

16,444,764

 

 

16,444,764

 

 

Time deposits

 

6,355,318

 

 

 

6,355,318

 

Federal Home Loan Bank advances

 

333,835

 

 

333,835

 

 

Securities sold under repurchase agreements

 

1,134,817

 

 

1,134,817

 

 

Accrued interest payable

 

11,582

 

 

11,582

 

 

Long-term debt

 

205,012

 

 

205,012

 

 

 

 

 

December 31, 2013

 

 

 

Estimated

 

 

 

 

 

 

 

 

 

Fair Value

 

 

 

 

 

 

 

 

 

Measurements

 

Level 1

 

Level 2

 

Level 3

 

 

 

(In thousands)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

895,820

 

$

895,820

 

$

 

$

 

Short-term investments

 

257,473

 

 

257,473

 

 

Securities purchased under resale agreements

 

1,279,406

 

 

1,279,406

 

 

Loans held for sale

 

212,469

 

 

212,469

 

 

Loans receivable, net

 

16,741,674

 

 

 

16,741,674

 

Investment in Federal Home Loan Bank stock

 

62,330

 

 

62,330

 

 

Investment in Federal Reserve Bank stock

 

48,333

 

 

48,333

 

 

Accrued interest receivable

 

116,314

 

 

116,314

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

Customer deposit accounts:

 

 

 

 

 

 

 

 

 

Demand, savings and money market deposits

 

14,588,570

 

 

14,588,570

 

 

Time deposits

 

5,791,659

 

 

 

5,791,659

 

Federal Home Loan Bank advances

 

308,521

 

 

308,521

 

 

Securities sold under repurchase agreements

 

1,134,774

 

 

1,134,774

 

 

Accrued interest payable

 

11,178

 

 

11,178

 

 

Long-term debt

 

184,415

 

 

184,415