Fair Value Measurements (Tables)

9 Months Ended

Sep. 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 September 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	$	35,425	$	35,425	$	—	$	—
Federal agency - Debt	1,002,447		—		1,002,447		—
Federal agency - MBS	197,173		—		197,173		—
CMOs - Federal agency	4,742,584		—		4,742,584		—
CMOs - Non-agency	43,312		—		43,312		—
State and municipal	475,786		—		429,570		46,216
Other debt securities	392,356		—		376,984		15,372
Equity securities and mutual funds	6,047		6,047		—		—
Trading securities	51,451		48,744		2,707		—
Derivatives (1)	44,634		4,213		40,421		—
Total assets at fair value	$	6,991,215	$	94,429	$	6,835,198	$	61,588
Liabilities
Derivatives	$	42,584	$	3,577	$	39,007	$	—
Contingent consideration liability	49,350		—		—		49,350
FDIC clawback liability	11,279		—		—		11,279
Other liabilities	919		—		919		—
Total liabilities at fair value (2)	$	104,132	$	3,577	$	39,926	$	60,629
Redeemable noncontrolling interest	$	39,840	$	—	$	—	$	39,840
Measured on a Nonrecurring Basis
Assets
Collateral dependent impaired loans (3):
Commercial (4)	$	15	$	—	$	—	$	15
Commercial real estate mortgages	1,214		—		—		1,214
Residential mortgages	1,442		—		—		1,442
Other real estate owned (5)	16,383		—		—		16,383
Private equity and alternative investments	919		—		—		919
Total assets at fair value	$	19,973	$	—	$	—	$	19,973

(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		—		—		10,963
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		—		—		44,396
Private equity and alternative investments	6,178		—		—		6,178
Total assets at fair value	$	75,251	$	—	$	—	$	75,251

(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

Level 3 Assets and Liabilities Measured on a Recurring Basis

	For the nine months ended September 30, 2013									For the nine months ended September 30, 2012
(in thousands)	Securities Available-for- Sale			Contingent Consideration Liability			FDIC Clawback Liability			Securities Available-for- Sale			Contingent Consideration Liability			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	—			—			(1,309		)	—			—			(1,811		)
Included in other comprehensive income	(35		)	—			—			1,770			—			—
Additions	—			—			—			—			(45,768		)	—
Settlements	(3,655		)	—			—			(3,152		)	—			—
Transfers into Level 3	—			—			—			47,165			—			—
Other (1)	91			(1,626		)	—			73			(515		)	—
Balance, end of period	$	61,588		$	(49,350	)	$	(11,279	)	$	65,439		$	(46,283	)	$	(9,914	)

(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

Information About Nonrecurring Level 3 Fair Value Measurements

(in thousands)	Fair Value at September 30, 2013		Valuation Method	Unobservable Inputs
Collateral dependent impaired loans	$	2,671	Market	-	Assumptions made in the appraisal process
				-	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	$	16,383	Market	-	Assumptions made in the appraisal process
				-	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	$	919	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 September 30,						For the nine months ended September 30,
(in thousands)	2013			2012			2013			2012
Collateral dependent impaired loans:
Commercial	$	—		$	—		$	—		$	(368	)
Commercial real estate mortgages	(934		)	306			(641		)	(1,630		)
Residential mortgages	(2		)	(31		)	(224		)	(1,152		)
Real estate construction	—			130			—			(6,623		)
Home equity loans and lines of credit	—			16			116			(47		)
Installment	—			(101		)	(138		)	(208		)
Other real estate owned (1)	(364		)	(4,147		)	(5,075		)	(16,312		)
Private equity and alternative investments	(109		)	(2,477		)	(508		)	(2,938		)
Total net losses recognized	$	(1,409	)	$	(6,304	)	$	(6,470	)	$	(29,278	)

(1) Net losses on OREO includes $0.4 million and $5.0 million of net losses related to covered OREO for the three and nine months ended September 30, 2013, respectively, and $3.6 million and $14.7 million of net losses related to covered OREO for the three and nine months ended September 30, 2012. 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, 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	$	301.1	$	301.1	$	301.1	$	—	$	—
Due from banks - interest bearing	1,045.6		1,045.6		1,045.6		—		—
Securities purchased under resale agreements	200.0		197.0		—		197.0		—
Securities held-to-maturity	1,649.5		1,608.1		—		1,608.1		—
Loans and leases, net of allowance	16,270.2		16,719.8		—		—		16,719.8
Covered loans, net of allowance	754.2		802.5		—		—		802.5
FDIC indemnification asset	101.1		84.3		—		—		84.3
Investment in FHLB and FRB stock	71.8		71.8		—		71.8		—
Financial Liabilities:
Deposits	$	25,236.9	$	25,240.0	$	—	$	24,503.0	$	737.0
Other short-term borrowings	2.6		2.6		—		—		2.6
Long-term debt	719.3		778.2		—		693.6		84.6

	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		—		—		14,988.6
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