Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2012

Fair Value Measurements

Summary of assets and liabilities measured at fair value by level

			Fair Value Measurements at Reporting Date Using
(in thousands)	Balance as of March 31, 2012		Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3
Measured on a Recurring Basis
Assets
Securities available-for-sale:
U.S. Treasury	$	19,202	$	19,202	$	—	$	—
Federal agency - Debt	1,051,348		—		1,051,348		—
Federal agency - MBS	720,590		—		720,590		—
CMOs - Federal agency	4,400,318		—		4,400,318		—
CMOs - Non-agency	68,587		—		68,587		—
State and municipal	395,723		—		395,723		—
Other debt securities	181,792		—		162,783		19,009
Equity securities and mutual funds	1,150		1,150		—		—
Trading securities	82,589		80,527		2,062		—
Mark-to-market derivatives (1)	57,891		3,239		54,652		—
Total assets at fair value	$	6,979,190	$	104,118	$	6,856,063	$	19,009
Liabilities
Mark-to-market derivatives (2)	$	49,384	$	1,574	$	47,810	$	—
Other liabilities	290		—		290		—
Total liabilities at fair value	$	49,674	$	1,574	$	48,100	$	—
Measured on a Nonrecurring Basis
Assets
Collateral dependent impaired loans (3):
Commercial (4)	$	1,878	$	—	$	—	$	1,878
Commercial real estate mortgages	3,170		—		3,170		—
Residential mortgages	5,988		—		5,525		463
Real estate construction	14,300		—		7,500		6,800
Equity lines of credit	904		—		—		904
Installment	550		—		550		—
Other real estate owned (5)	27,347		—		23,269		4,078
Private equity and alternative investments	258		—		—		258
Total assets at fair value	$	54,395	$	—	$	40,014	$	14,381

(1)	Reported in Other assets in the consolidated balance sheets.
(2)	Reported in Other liabilities in the consolidated balance sheets.
(3)	Impaired loans for which fair value was calculated using the collateral valuation method.
(4)	Includes lease financing.
(5)	Other real estate owned balance of $107.5 million in the consolidated balance sheets includes $78.5 million of covered OREO and is net of estimated disposal costs.

			Fair Value Measurements at Reporting Date Using
(in thousands)	Balance as of December 31, 2011		Quoted Prices in Active Markets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3
Measured on a Recurring Basis
Assets
Securities available-for-sale:
U.S. Treasury	$	19,182	$	19,182	$	—	$	—
Federal agency - Debt	1,973,862		—		1,973,862		—
Federal agency - MBS	681,044		—		681,044		—
CMOs - Federal agency	4,326,907		—		4,326,907		—
CMOs - Non-agency	69,001		—		69,001		—
State and municipal	401,604		—		401,604		—
Other debt securities	99,074		—		79,491		19,583
Equity securities and mutual funds	1,227		1,227		—		—
Trading securities	61,975		61,922		53		—
Mark-to-market derivatives (1)	62,230		2,552		59,678		—
Total assets at fair value	$	7,696,106	$	84,883	$	7,591,640	$	19,583
Liabilities
Mark-to-market derivatives (2)	$	52,881	$	1,542	$	51,339	$	—
Other liabilities	263		—		263		—
Total liabilities at fair value	$	53,144	$	1,542	$	51,602	$	—
Measured on a Nonrecurring Basis
Assets
Collateral dependent impaired loans (3):
Commercial (4)	$	2,484	$	—	$	—	$	2,484
Commercial real estate mortgages	6,830		—		6,830		—
Residential mortgages	5,555		—		5,084		471
Real estate construction	18,528		—		9,680		8,848
Equity lines of credit	3,471		—		2,588		883
Installment	675		—		675		—
Collateral dependent impaired covered loans (3):
Commercial	422		—		—		422
Other real estate owned (5)	66,837		—		56,898		9,939
Private equity and alternative investments	6,558		—		—		6,558
Total assets at fair value	$	111,360	$	—	$	81,755	$	29,605

(1)	Reported in Other assets in the consolidated balance sheets.
(2)	Reported in Other liabilities in the consolidated balance sheets.
(3)	Impaired loans for which fair value was calculated using the collateral valuation method.
(4)	Includes lease financing.
(5)	Other real estate owned balance of $129.3 million in the consolidated balance sheets includes $98.6 million of covered OREO and is net of estimated disposal costs.

Schedule of reconciliation of Level 3 assets measured on a recurring basis

	March 31, 2012			March 31, 2011
(in thousands)	Securities Available- for-Sale			Securities Available- for-Sale
Balance, beginning of period	$	19,583		$	20,982
Total realized/unrealized gains (losses):
Included in other comprehensive income	964			1,690
Settlements	(1,562		)	(1,707		)
Other (1)	24			(53		)
Balance, end of period	$	19,009		$	20,912

(1) Other rollforward activity consists of amortization of premiums and accretion of discounts recognized on the initial purchase of the securities available-for-sale.

Information About Nonrecurring Level 3 Fair Value Measurements

(in thousands)	Fair Value at March 31, 2012		Valuation Method	Unobservable Inputs
Collateral dependent impaired loans	$	10,045	Market	- Adjustments to external or internal appraised values - Probability weighting of broker price opinions - Management assumptions regarding market trends or other relevant factors
Other real estate owned	$	4,078	Market	- Adjustments to external or internal appraised values
				- Probability weighting of broker price opinions
				- Management assumptions regarding market trends or other relevant factors
Private equity and alternative investments	$	258	Cost Recovery	- Management’s assumptions regarding recoverability of investment based on fund financial performance, market conditions and other relevant factors

Schedule of total (losses) gains for assets measured at fair value on a nonrecurring basis

	For the three months ended March 31,
(in thousands)	2012			2011
Collateral dependent impaired loans:
Commercial	$	(368	)	$	(606	)
Commercial real estate mortgages	(365		)	7,114
Residential mortgages	(582		)	(142		)
Real estate construction	(6,472		)	2,217
Equity lines of credit	54			36
Installment	(107		)	(4,514		)
Other real estate owned (1)	(8,465		)	(9,122		)
Private equity and alternative investments	(127		)	—
Total net losses recognized	$	(16,432	)	$	(5,017	)

(1) Net losses on OREO includes $7.6 million and $8.2 million of net losses related to covered OREO for the three months ended March 31, 2012 and 2011, respectively, a significant portion of which is reimbursable by the FDIC.

Schedule of carrying amounts and fair values of financial instruments

		March 31, 2012				December 31, 2011
	Fair Value	Carrying		Fair		Carrying		Fair
(in millions)	Level	Amount		Value		Amount		Value
Financial Assets:
Cash and due from banks	1	$	210.8	$	210.8	$	168.4	$	168.4
Due from banks - interest bearing	1	101.4		101.4		76.4		76.4
Federal funds sold	1	156.0		156.0		—		—
Securities available-for-sale	1,2,3	6,838.7		6,838.7		7,571.9		7,571.9
Securities held-to-maturity	2	996.6		996.5		467.7		473.9
Trading securities	1,2	82.6		82.6		62.0		62.0
Loans and leases, net of allowance	3	12,481.8		12,909.0		12,046.8		12,400.5
Covered loans, net of allowance	3	1,335.7		1,388.7		1,417.3		1,472.6
FDIC indemnification asset	3	185.4		163.0		204.3		184.3
Investment in FHLB and FRB stock	1	103.8		103.8		107.4		107.4
Derivative assets	1,2	57.9		57.9		62.2		62.2
Financial Liabilities:
Deposits	1,3	$	20,787.7	$	20,791.8	$	20,387.6	$	20,392.3
Federal funds purchased and securities sold under repurchase agreements	1	10.0		10.0		50.0		50.0
Other short-term borrowings	2	212.8		219.0		—		—
Long-term debt	2	482.0		505.6		697.8		718.7
Derivative liabilities	1,2	49.4		49.4		52.9		52.9
FDIC clawback liability	3	8.7		8.7		8.1		8.1