Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2013

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, 2013		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	$	30,370	$	30,370	$	—	$	—
Federal agency - Debt	1,114,603		—		1,114,603		—
Federal agency - MBS	645,480		—		645,480		—
CMOs - Federal agency	5,139,231		—		5,139,231		—
CMOs - Non-agency	50,776		—		50,776		—
State and municipal	445,170		—		398,960		46,210
Other debt securities	309,392		—		294,117		15,275
Equity securities and mutual funds	3,029		3,029		—		—
Trading securities	53,526		50,783		2,743		—
Mark-to-market derivatives (1)	59,055		382		58,673		—
Total assets at fair value	$	7,850,632	$	84,564	$	7,704,583	$	61,485
Liabilities
Mark-to-market derivatives	$	57,862	$	—	$	57,862	$	—
Contingent consideration liability	48,273		—		—		48,273
FDIC clawback liability	10,765		—		—		10,765
Other liabilities	344		—		344		—
Total liabilities at fair value (2)	$	117,244	$	—	$	58,206	$	59,038
Redeemable noncontrolling interest	$	41,113	—		—		$	41,113
Measured on a Nonrecurring Basis
Assets
Collateral dependent impaired loans (3):
Commercial real estate mortgages	$	7,300	$	—	$	—	$	7,300
Other real estate owned (4)	13,337		—		11,218		2,119
Private equity and alternative investments	686		—		—		686
Total assets at fair value	$	21,323	$	—	$	11,218	$	10,105

(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 covered OREO.

			Fair Value Measurements at Reporting Date Using
(in thousands)	Balance as of December 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	$	20,397	$	20,397	$	—	$	—
Federal agency - Debt	2,349,202		—		2,349,202		—
Federal agency - MBS	693,032		—		693,032		—
CMOs - Federal agency	5,318,253		—		5,318,253		—
CMOs - Non-agency	61,513		—		61,513		—
State and municipal	454,474		—		407,429		47,045
Other debt securities	307,417		—		289,275		18,142
Equity securities and mutual funds	1,701		1,701		—		—
Trading securities	115,059		113,010		2,049		—
Mark-to-market derivatives (1)	67,496		218		67,278		—
Total assets at fair value	$	9,388,544	$	135,326	$	9,188,031	$	65,187
Liabilities
Mark-to-market derivatives	$	64,432	$	—	$	64,432	$	—
Contingent consideration liability	47,724		—		—		47,724
FDIC clawback liability	9,970		—		—		9,970
Other liabilities	368		—		368		—
Total liabilities at fair value (2)	$	122,494	$	—	$	64,800	$	57,694
Redeemable noncontrolling interest	$	41,112	$	—	$	—	$	41,112
Measured on a Nonrecurring Basis
Assets
Collateral dependent impaired loans (3):
Commercial (4)	$	2,655	$	—	$	—	$	2,655
Commercial real estate mortgages	10,963		—		3,950		7,013
Residential mortgages	1,811		—		—		1,811
Real estate construction	7,918		—		—		7,918
Home equity loans and lines of credit	780		—		—		780
Installment	550		—		550		—
Other real estate owned (5)	44,396		—		34,624		9,772
Private equity and alternative investments	6,178		—		—		6,178
Total assets at fair value	$	75,251	$	—	$	39,124	$	36,127

(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) Includes covered OREO.

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

	For the three months ended March 31, 2013									For the three months ended March 31, 2012
(in thousands)	Securities Available-for- Sale			Contingent Consideration Liability			FDIC Clawback Liability			Securities Available-for- Sale			FDIC Clawback Liability
Balance, beginning of period	$	65,187		$	(47,724	)	$	(9,970	)	$	19,583		$	(8,103	)
Total realized/unrealized gains (losses):
Included in earnings	—			—			(795		)	—			(616		)
Included in other comprehensive income	(199		)	—			—			964			—
Settlements	(3,555		)	—			—			(1,562		)	—
Other (1)	52			(549		)	—			24			—
Balance, end of period	$	61,485		$	(48,273	)	$	(10,765	)	$	19,009		$	(8,719	)

(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 March 31, 2013		Valuation Method	Unobservable Inputs
Collateral dependent impaired loans	$	7,300	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	$	2,119	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	$	686	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 March 31,
(in thousands)	2013			2012
Collateral dependent impaired loans:
Commercial	$	—		$	(368	)
Commercial real estate mortgages	145			(365		)
Residential mortgages	9			(582		)
Real estate construction	—			(6,472		)
Home equity loans and lines of credit	116			54
Installment	(138		)	(107		)
Other real estate owned (1)	(2,853		)	(8,465		)
Private equity and alternative investments	(399		)	(127		)
Total net losses recognized	$	(3,120	)	$	(16,432	)

(1) Net losses on OREO includes $2.8 million and $7.6 million of net losses related to covered OREO for the three months ended March 31, 2013 and 2012, respectively, a significant portion of which is reimbursable by the FDIC.

Schedule of carrying amounts and fair values of financial instruments

	March 31, 2013
	Carrying		Total		Fair Value Measurements Using
(in millions)	Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	144.3	$	144.3	$	144.3	$	—	$	—
Due from banks - interest bearing	123.1		123.1		123.1		—		—
Federal funds sold and securities purchased under resale agreements	219.5		219.5		19.5		200.0		—
Securities held-to-maturity	1,400.9		1,434.8		—		1,434.8		—
Loans and leases, net of allowance	14,934.6		15,416.9		—		—		15,416.9
Covered loans, net of allowance	909.6		975.1		—		—		975.1
FDIC indemnification asset	142.9		118.8		—		—		118.8
Investment in FHLB and FRB stock	84.1		84.1		—		84.1		—
Financial Liabilities:
Deposits	$	22,937.6	$	22,941.7	$	—	$	22,063.4	$	878.3
Federal funds purchased and securities sold under repurchase agreements	703.6		703.6		703.6		—		—
Other short-term borrowings	103.2		103.2		100.0		—		3.2
Long-term debt	703.0		785.2		—		713.1		72.1

	December 31, 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	$	152.0	$	152.0	$	152.0	$	—	$	—
Due from banks - interest bearing	246.3		246.3		246.3		—		—
Federal funds sold	17.1		17.1		17.1		—		—
Securities held-to-maturity	1,398.4		1,446.6		—		1,446.6		—
Loans and leases, net of allowance	14,540.4		14,988.6		—		4.5		14,984.1
Covered loans, net of allowance	986.2		1,055.0		—		—		1,055.0
FDIC indemnification asset	150.0		123.9		—		—		123.9
Investment in FHLB and FRB stock	90.0		90.0		—		90.0		—
Financial Liabilities:
Deposits	$	23,502.4	$	23,506.9	$	—	$	22,734.5	$	772.4
Federal funds purchased and securities sold under repurchase agreements	1,214.2		1,214.2		1,214.2		—		—
Other short-term borrowings	209.6		210.7				207.6		3.1
Long-term debt	706.1		774.8		—		698.9		75.9