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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

As of June 30, 2012 and December 31, 2011, assets and liabilities measured at fair value on a recurring basis, including certain loans held for sale for which the Company has elected the fair value option, are as follows:



	Level 1		Level 2			Level 3		Total
June 30, 2012
Financial assets:
Available for sale securities:
Residential CMO securities - agency	$	—	$	77		$	—	$	77
Residential CMO securities - nonagency	—		1,842,331			—		1,842,331
Residential MBS - agency	—		281			—		281
Asset-backed securities	—		7,616			—		7,616
Equity securities	221		—			—		221
Total available for sale securities	221		1,850,305			—		1,850,526
Loans held for sale	—		1,105,985			—		1,105,985
Financial liabilities:
FDIC clawback liability	—		—			46,738		46,738
Derivative financial instruments:
Cash flow hedges (Note 12)	—		(146,541		)	—		(146,541		)
Freestanding derivatives (Note 12)	4,063		(999		)	9,383		12,447



	Level 1			Level 2			Level 3		Total
December 31, 2011
Financial assets:
Available for sale securities:
Residential CMO securities - agency	$	—		$	104		$	—	$	104
Residential CMO securities - nonagency	—			1,895,818			—		1,895,818
Residential MBS - agency	—			338			—		338
Asset-backed securities	—			7,477			—		7,477
Equity securities	185			—			—		185
Total available for sale securities	185			1,903,737			—		1,903,922
Loans held for sale	—			761,818			15,462		777,280
Financial liabilities:
FDIC clawback liability	—			—			43,317		43,317
Derivative financial instruments:
Cash flow hedges (Note 12)	—			(133,897		)	—		(133,897		)
Freestanding derivatives (Note 12)	(6,799		)	(4,830		)	8,540		(3,089		)

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

Changes in assets and liabilities measured at Level 3 fair value on a recurring basis for the three and six months ended June 30, 2012 and 2011 are as follows:



	Loans Held for Sale ⁽¹⁾			FDIC Clawback Liability ⁽²⁾			Freestanding Derivatives ⁽³⁾
Three Months Ended June 30, 2012
Balance, beginning of period	$	—		$	(43,694	)	$	8,814
Total gains (losses) included in earnings for the period	—			(3,044		)	569
Balance, end of period	$	—		$	(46,738	)	$	9,383
Change in unrealized net gains (losses) included in net income related to assets still held as of June 30, 2012	$	—		$	(3,044	)	$	569

Three Months Ended June 30, 2011
Balance, beginning of period	$	15,049		$	(39,628	)	$	221
Purchases	—			—			2,700
Issues	—			—			(2,739		)
Settlements	(60		)	—			35
Total gains (losses) included in earnings for the period	1,117			—			7
Balance, end of period	$	16,106		$	(39,628	)	$	224
Change in unrealized net gains (losses) included in net income related to assets still held as of June 30, 2011	$	1,117		$	—		$	42



	Loans Held for Sale ⁽¹⁾			FDIC Clawback Liability ⁽²⁾			Freestanding Derivatives ⁽³⁾
Six Months Ended June 30, 2012
Balance, beginning of period	$	15,462		$	(43,317	)	$	8,539
Settlements	(623		)	—			—
Transfers out of Level 3	(14,946		)	—			—
Total gains (losses) included in earnings for the period	107			(3,421		)	844
Balance, end of period	$	—		$	(46,738	)	$	9,383
Change in unrealized net gains (losses) included in net income related to assets still held as of June 30, 2012	$	107		$	(3,421	)	$	844

Six Months Ended June 30, 2011
Balance, beginning of period	$	15,136		$	(39,311	)	$	8,949
Purchases	—			—			4,075
Issues	—			—			(4,114		)
Settlements	(137		)	—			38
Total gains (losses) included in earnings for the period	1,107			(317		)	(8,724		)
Balance, end of period	$	16,106		$	(39,628	)	$	224
Change in unrealized net gains (losses) included in net income related to assets still held as of June 30, 2011	$	1,107		$	(317	)	$	(8,439	)


(1)	Net realized and unrealized gains (losses) on loans held for sale are included in gain on sale of loans.


(2)	Changes in fair value of the FDIC clawback liability are recorded in general and administrative expense.


(3)	With the exception of changes in the indemnification assets, net realized and unrealized gains (losses) on freestanding derivatives are included in other noninterest income. Changes in the fair value of the indemnification assets are recorded in general and administrative expense.

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

The characteristics used in estimating the fair value of the MSR portfolio at June 30, 2012 and December 31, 2011 are as follows:



	June 30, 2012			December 31, 2011
Unpaid principal balance	$	45,146,000		$	47,818,000
Gross weighted-average coupon	4.81		%	4.98		%
Weighted-average servicing fee	0.30		%	0.31		%
Expected prepayment speed ⁽¹⁾	13.89		%	12.74		%

(1) The prepayment speed assumptions includes a blend of prepayment speeds that are influenced by mortgage interest rates, the current macroeconomic environment and borrower behaviors and may vary over the expected life of the asset.

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a recurring basis at June 30, 2012:



Level 3 Assets	Fair Value		Valuation Technique	Unobservable Inputs	Significant Unobservable Input Value
FDIC clawback liability	$	46,738	Discounted cash flow	Servicing cost	$6,272	-	$14,219	⁽¹⁾
Indemnification asset	$	9,383	Discounted cash flow	Reinstatement rate	5.96%	-	67.90%	⁽²⁾
				Loss duration (in months)	8	-	45	⁽²⁾
				Loss severity ⁽³⁾	2.37%	-	16.64%	⁽²⁾


(1)	The range represents the sum of the highest and lowest servicing cost values for all tranches that we use in our valuation process. The servicing cost represents 1% of projected unpaid principal balance (UPB) of the underlying loans.


(2)	The range represents the sum of the highest and lowest values for all tranches that we use in our valuation process.

Fair Value, Option, Quantitative Disclosures [Table Text Block]

Following is information on loans held for sale reported under the fair value option at June 30, 2012 and December 31, 2011:



	Total		Nonaccrual
June 30, 2012
Fair value carrying amount	$	1,105,985	$	—
Aggregate unpaid principal balance	1,052,714		—
Fair value carrying amount less aggregate unpaid principal	$	53,271	$	—
December 31, 2011
Fair value carrying amount	$	777,280	$	2,129
Aggregate unpaid principal balance	747,667		2,466
Fair value carrying amount less aggregate unpaid principal	$	29,613	$	(337	)

Differences between the fair value carrying amount and the aggregate unpaid principal balance include changes in fair value recorded at and subsequent to funding, gains and losses on the related loan commitment prior to funding and premiums or discounts on acquired loans.

The net gain from initial measurement of the above loans and subsequent changes in fair value was $111,464 and $176,173 for the three and six months ended June 30, 2012, respectively, and $38,569 and $54,384 for the three and six months ended June 30, 2011, respectively, is included in gain on sale of loans. An immaterial portion of the change in fair value was attributable to changes in instrument-specific credit risk.

Fair Value Measurements, Nonrecurring [Table Text Block]

Certain assets and liabilities are measured at fair value on a non-recurring basis and therefore are not included in the tables above. These measurements primarily result from assets carried at the lower of cost or fair value or from impairment of individual assets. The carrying value of assets measured at fair value on a non-recurring basis and held at June 30, 2012 and December 31, 2011 and related change in fair value are as follows:



	Level 1		Level 2		Level 3		Total		Change in Fair Value
June 30, 2012
Collateral-dependent loans	$	—	$	—	$	29,582	$	29,582	$	1,999
Other real estate owned	—		1,200		19,734		20,934		3,885
Mortgage servicing rights⁽¹⁾	—		—		373,735		373,735		30,135
December 31, 2011
Loans held for sale	$	—	$	13,010	$	—	$	13,010	$	1,385
Collateral-dependent loans	—		—		62,183		62,183		11,831
Other real estate owned	—		—		46,578		46,578		10,389
Mortgage servicing rights ⁽¹⁾	—		—		445,195		445,195		39,455


(1)	The fair value for mortgage servicing rights represents the value of the impaired strata.

Fair Value, by Balance Sheet Grouping [Table Text Block]

The following table presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2012 and December 31, 2011. This table excludes financial instruments with a short-term or without a stated maturity, prevailing market rates and limited credit risk, where carrying amounts approximate fair value. For financial assets such as cash and due from banks, FHLB restricted stock, and other investments, the carrying amount is a reasonable estimate of fair value. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings and money market deposits, the carrying amount is a reasonable estimate of fair value as these liabilities have no stated maturity.



	June 30, 2012
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets:
Investment securities:
Held to maturity	$	190,615	$	196,382	$	—	$	196,382	$	—
Loans held for sale ⁽¹⁾	2,072,612		2,171,991		—		2,171,991		—
Loans held for investment ⁽²⁾	7,030,992		7,111,132		—		—		7,111,132
Financial liabilities:
Time deposits	$	2,894,148	$	2,930,669	$	—	$	2,930,669	$	—
Other borrowings	2,503,636		2,545,991		—		2,545,991		—
Trust preferred securities	103,750		78,274		—		—		78,274



	December 31, 2011
	Carrying Amount		Estimated Fair Value
Financial assets:
Investment securities:
Held to maturity	$	189,518	$	194,350
Loans held for sale	2,725,286		2,811,917
Loans held for investment ⁽²⁾	5,856,781		5,862,053
Financial liabilities:
Deposits	$	10,265,763	$	10,299,977
Other borrowings	1,257,879		1,215,209
Trust preferred securities	103,750		71,597


(1)	The carrying value of loans held for sale excludes $1,105,985 in loans measured at fair value on a recurring basis as of June 30, 2012.


(2)	The carrying value of loans held for investment is net of the allowance for loan loss of $73,233 and $73,999 as of June 30, 2012 and December 31, 2011, respectively. In addition, the carrying values exclude $677,045 and $584,735 of lease financing receivables as of June 30, 2012 and December 31, 2011, respectively.

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

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