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Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 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
June 30, 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

 

$

30,285

 

$

30,285

 

$

 

$

 

Federal agency - Debt

 

980,025

 

 

980,025

 

 

Federal agency - MBS

 

438,182

 

 

438,182

 

 

CMOs - Federal agency

 

4,728,613

 

 

4,728,613

 

 

CMOs - Non-agency

 

45,327

 

 

45,327

 

 

State and municipal

 

466,760

 

 

420,594

 

46,166

 

Other debt securities

 

350,244

 

 

334,571

 

15,673

 

Equity securities and mutual funds

 

5,135

 

5,135

 

 

 

Trading securities

 

48,655

 

38,411

 

10,244

 

 

Derivatives (1)

 

40,066

 

1,963

 

38,103

 

 

Total assets at fair value

 

$

7,133,292

 

$

75,794

 

$

6,995,659

 

$

61,839

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Derivatives

 

$

38,771

 

$

2,490

 

$

36,281

 

$

 

Contingent consideration liability

 

48,800

 

 

 

48,800

 

FDIC clawback liability

 

11,053

 

 

 

11,053

 

Other liabilities

 

319

 

 

319

 

 

Total liabilities at fair value (2)

 

$

98,943

 

$

2,490

 

$

36,600

 

$

59,853

 

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interest

 

$

39,943

 

$

 

$

 

$

39,943

 

 

 

 

 

 

 

 

 

 

 

Measured on a Nonrecurring Basis

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

Collateral dependent impaired loans (3):

 

 

 

 

 

 

 

 

 

Commercial (4)

 

$

17

 

$

 

$

 

$

17

 

Commercial real estate mortgages

 

7,300

 

 

 

7,300

 

Residential mortgages

 

1,457

 

 

 

1,457

 

Other real estate owned (5)

 

19,525

 

 

16,494

 

3,031

 

Private equity and alternative investments

 

686

 

 

 

686

 

Total assets at fair value

 

$

28,985

 

$

 

$

16,494

 

$

12,491

 

 

 

(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.

 

 

 

 

 

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

 

 

Derivatives (1)

 

67,496

 

218

 

67,278

 

 

Total assets at fair value

 

$

9,388,544

 

$

135,326

 

$

9,188,031

 

$

65,187

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

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 six months ended
June 30, 2013

 

For the six months ended
June 30, 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

 

 

 

(1,083

)

 

(1,114

)

Included in other comprehensive income

 

233

 

 

 

1,221

 

 

Settlements

 

(3,655

)

 

 

(1,664

)

 

Transfers into Level 3

 

 

 

 

47,165

 

 

Other (1)

 

74

 

(1,076

)

 

46

 

 

Balance, end of period

 

$

61,839

 

$

(48,800

)

$

(11,053

)

$

66,351

 

$

(9,217

)

 

 

(1) Other rollforward activity consists of amortization of premiums and accretion of discounts recognized on the initial purchase of 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
June 30, 2013

 

Valuation
Method

 

Unobservable Inputs

 

Collateral dependent impaired loans

 

$

8,774

 

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

 

$

3,031

 

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
June 30,

 

For the six months ended
June 30,

 

(in thousands)

 

2013

 

2012

 

2013

 

2012

 

Collateral dependent impaired loans:

 

 

 

 

 

 

 

 

 

Commercial

 

$

 

$

 

$

 

$

(367

)

Commercial real estate mortgages

 

148

 

(1,572

)

293

 

(1,937

)

Residential mortgages

 

(230

)

(540

)

(221

)

(1,122

)

Real estate construction

 

 

(281

)

 

(6,753

)

Home equity loans and lines of credit

 

 

(115

)

116

 

(62

)

Installment

 

 

 

(138

)

(107

)

Other real estate owned (1)

 

(1,857

)

(3,700

)

(4,711

)

(12,165

)

Private equity and alternative investments

 

 

(333

)

(399

)

(460

)

Total net losses recognized

 

$

(1,939

)

$

(6,541

)

$

(5,060

)

$

(22,973

)

 

 

(1)

Net losses on OREO includes $1.9 million and $4.7 million of net losses related to covered OREO for the three and six months ended June 30, 2013, respectively, and $3.5 million and $11.0 million of net losses for the three and six months ended June 30, 2012, 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

 

 

 

 

June 30, 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

 

$

146.3

 

$

146.3

 

$

146.3

 

$

 

$

 

Due from banks - interest bearing

 

156.2

 

156.2

 

156.2

 

 

 

Federal funds sold and securities purchased under resale agreements

 

200.0

 

194.6

 

 

194.6

 

 

Securities held-to-maturity

 

1,504.0

 

1,466.6

 

 

1,466.6

 

 

Loans and leases, net of allowance

 

15,529.3

 

15,926.6

 

 

 

15,926.6

 

Covered loans, net of allowance

 

843.6

 

893.6

 

 

 

893.6

 

FDIC indemnification asset

 

117.3

 

96.6

 

 

 

96.6

 

Investment in FHLB and FRB stock

 

78.0

 

78.0

 

 

78.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

23,651.8

 

$

23,655.4

 

$

 

$

22,779.3

 

$

876.1

 

Other short-term borrowings

 

2.7

 

2.7

 

 

 

2.7

 

Long-term debt

 

706.5

 

769.0

 

 

693.9

 

75.1

 

 

 

 

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