Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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 September 30, 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	$	20,355	$	20,355	$	—	$	—
Federal agency - Debt	1,547,300		—		1,547,300		—
Federal agency - MBS	657,935		—		657,935		—
CMOs - Federal agency	4,847,471		—		4,847,471		—
CMOs - Non-agency	64,489		—		64,489		—
State and municipal	425,169		—		378,072		47,097
Other debt securities	308,524		—		290,182		18,342
Equity securities and mutual funds	821		821		—		—
Trading securities	64,749		61,883		2,866		—
Mark-to-market derivatives (1)	70,878		3,068		67,810		—
Total assets at fair value	$	8,007,691	$	86,127	$	7,856,125	$	65,439
Liabilities
Mark-to-market derivatives	$	66,692	$	1,719	$	64,973	$	—
Contingent consideration liability	46,283		—		$	—	46,283
FDIC clawback liability	9,914		—		—		9,914
Other liabilities	393		—		393		—
Total liabilities at fair value (2)	$	123,282	$	1,719	$	65,366	$	56,197
Measured on a Nonrecurring Basis
Assets
Collateral dependent impaired loans (3):
Commercial (4)	$	1,658	$	—	$	—	$	1,658
Commercial real estate mortgages	11,699		—		11,699		—
Residential mortgages	4,382		—		3,924		458
Real estate construction	7,208		—		7,208		—
Equity lines of credit	782		—		—		782
Installment	399		—		399		—
Other real estate owned (5)	55,321		—		49,579		5,742
Private equity and alternative investments	5,982		—		—		5,982
Total assets at fair value	$	87,431	$	—	$	72,809	$	14,622

(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 $110.7 million in the consolidated balance sheets includes $83.6 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	$	52,881	$	1,542	$	51,339	$	—
FDIC clawback liability	8,103		$	—	$	—	$	8,103
Other liabilities	263		—		263		—
Total liabilities at fair value (2)	$	61,247	$	1,542	$	51,602	$	8,103
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 and liabilities measured on a recurring basis

	For the nine months ended September 30, 2012									For the nine months ended September 30, 2011
(in thousands)	Securities Available-for- Sale			Contingent Consideration Liability			FDIC Clawback Liability			Securities Available-for- Sale			FDIC Clawback Liability
Balance, beginning of period	$	19,583		$	—		$	(8,103	)	$	20,982		$	(6,911	)
Total realized/unrealized gains (losses):
Included in earnings	—			—			(1,811		)	—			(1,131		)
Included in other comprehensive income	1,770			—			—			348			—
Additions	—			(45,768		)	—			—			—
Settlements	(3,152		)	—			—			(1,960		)	—
Transfers into Level 3	47,165			—			—			—			—
Other (1)	73			(515		)	—			(20		)	—
Balance, end of period	$	65,439		$	(46,283	)	$	(9,914	)	$	19,350		$	(8,042	)

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

Information About Nonrecurring Level 3 Fair Value Measurements

(in thousands)	Fair Value at September 30, 2012		Valuation Method		Unobservable Inputs
Collateral dependent impaired loans	$	2,898	Market	-	Adjustments to external or internal appraised values (1)
				-	Probability weighting of broker price opinions
				-	Management assumptions regarding market trends or other relevant factors
Other real estate owned	$	5,742	Market	-	Adjustments to external or internal appraised values (1)
				-	Probability weighting of broker price opinions
				-	Management assumptions regarding market trends or other relevant factors
Private equity and alternative investments	$	5,982	Cost Recovery	-	Management’s assumptions regarding recoverability of investment based on fund financial performance, market conditions and other relevant factors

(1)Appraised values may be adjusted to reflect changes in market conditions that have occurred subsequent to the appraisal date, or for revised estimates regarding the timing or cost of the property sale. These adjustments are based on qualitative judgments made by management on a case-by-case basis.

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

	For the three months ended						For the nine months ended
	September 30,						September 30,
(in thousands)	2012			2011			2012			2011
Collateral dependent impaired loans:
Commercial	$	—		$	80		$	(368	)	$	(526	)
Commercial real estate mortgages	306			(1,643		)	(1,630		)	5,811
Residential mortgages	(31		)	(266		)	(1,152		)	(455		)
Real estate construction	130			(10,413		)	(6,623		)	(11,612		)
Equity lines of credit	16			(179		)	(47		)	(689		)
Installment	(101		)	(279		)	(208		)	(4,596		)
Collaterial dependent impaired covered loans:
Commercial	—			(325		)	—			(325		)
Other real estate owned (1)	(4,147		)	(6,585		)	(16,312		)	(32,575		)
Private equity and alternative investments	(2,477		)	(32		)	(2,938		)	(232		)
Total net losses recognized	$	(6,304	)	$	(19,642	)	$	(29,278	)	$	(45,199	)

(1) Net losses on OREO includes $3.6 million and $14.7 million of net losses related to covered OREO for the three and nine months ended September 30, 2012, respectively, and $6.7 million and $29.5 million of net losses for the three and nine months ended September 30, 2011, respectively. A significant portion of net losses on covered OREO is reimbursable by the FDIC.

Schedule of carrying amounts and fair values of financial instruments

	September 30, 2012
	Carrying		Total		Fair Value Measurements Using
(in millions)	Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	235.0	$	235.0	$	235.0	$	—	$	—
Due from banks - interest bearing	335.3		335.3		335.3		—		—
Federal funds sold	19.5		19.5		19.5		—		—
Securities held-to-maturity	1,174.2		1,222.7		—		1,222.7		—
Loans and leases, net of allowance	13,456.2		13,903.0		—		—		13,903.0
Covered loans, net of allowance	1,099.4		1,173.8		—		—		1,173.8
FDIC indemnification asset	161.0		135.3		—		—		135.3
Investment in FHLB and FRB stock	96.1		96.1		—		96.1		—
Financial Liabilities:
Deposits	$	22,512.3	$	22,516.7	$	—	$	21,612.9	$	903.8
Other short-term borrowings	211.7		214.4		—		211.2		3.2
Long-term debt	706.0		773.0		—		697.4		75.6
	December 31, 2011
	Carrying		Total		Fair Value Measurements Using
(in millions)	Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	168.4	$	168.4	$	168.4	$	—	$	—
Due from banks - interest bearing	76.4		76.4		76.4		—		—
Securities held-to-maturity	467.7		473.9		—		473.9		—
Loans and leases, net of allowance	12,046.8		12,400.5		—		—		12,400.5
Covered loans, net of allowance	1,417.3		1,472.6		—		—		1,472.6
FDIC indemnification asset	204.3		184.3		—		—		184.3
Investment in FHLB and FRB stock	107.4		107.4		—		107.4		—
Financial Liabilities:
Deposits	$	20,387.6	$	20,392.3	$	—	$	19,476.2	$	916.1
Federal funds purchased and securities sold under repurchase agreements	50.0		50.0		50.0		—		—
Long-term debt	697.8		718.7		—		718.7		—