Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2014

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, 2014		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	$	46,765	$	46,765	$	—	$	—
Federal agency - Debt	1,326,728		—		1,326,728		—
Federal agency - MBS	106,976		—		106,976		—
CMOs - Federal agency	3,559,078		—		3,559,078		—
CMOs - Non-agency	25,282		—		25,282		—
State and municipal	381,993		—		378,469		3,524
Other debt securities	177,042		—		177,042		—
Equity securities and mutual funds	5,312		5,312		—		—
Trading securities	125,910		122,145		3,765		—
Derivative assets (1)	39,580		4,814		34,086		680
Contingent consideration asset (1)	2,930		—		—		2,930
Total assets at fair value	$	5,797,596	$	179,036	$	5,611,426	$	7,134
Liabilities
Derivative liabilities	$	39,463	$	5,735	$	33,728	$	—
Contingent consideration liability	34,493		—		—		34,493
FDIC clawback liability	14,524		—		—		14,524
Other liabilities	901		—		901		—
Total liabilities at fair value (2)	$	89,381	$	5,735	$	34,629	$	49,017
Redeemable noncontrolling interest	$	47,222	$	—	$	—	$	47,222
Measured on a Nonrecurring Basis
Assets
Other real estate owned (3)	$	8,101	$	—	$	—	$	8,101
Total assets at fair value	$	8,101	$	—	$	—	$	8,101

(1) Reported in Other assets in the consolidated balance sheets.

(2) Reported in Other liabilities in the consolidated balance sheets.

(3) Includes covered OREO.

			Fair Value Measurements at Reporting Date Using
(in thousands)	Balance as of December 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	$	35,335	$	35,335	$	—	$	—
Federal agency - Debt	1,410,536		—		1,410,536		—
Federal agency - MBS	157,226		—		157,226		—
CMOs - Federal agency	3,997,298		—		3,997,298		—
CMOs - Non-agency	37,462		—		37,462		—
State and municipal	415,995		—		412,362		3,633
Other debt securities	178,822		—		178,822		—
Equity securities and mutual funds	8,443		8,443		—		—
Trading securities	82,357		80,659		1,698		—
Derivative assets (1)	34,613		3,487		31,126		—
Total assets at fair value	$	6,358,087	$	127,924	$	6,226,530	$	3,633
Liabilities
Derivative liabilities	$	32,970	$	3,333	$	29,637	$	—
Contingent consideration liability	49,900		—		—		49,900
FDIC clawback liability	11,967		—		—		11,967
Other liabilities	1,044		—		1,044		—
Total liabilities at fair value (2)	$	95,881	$	3,333	$	30,681	$	61,867
Redeemable noncontrolling interest	$	39,768	$	—	$	—	$	39,768
Measured on a Nonrecurring Basis
Assets
Collateral dependent impaired loans (3):
Commercial real estate mortgages	$	1,220	$	—	$	—	$	1,220
Residential mortgages	1,300		—		—		1,300
Other real estate owned (4)	18,251		—		—		18,251
Private equity and alternative investments	895		—		—		895
Total assets at fair value	$	21,666	$	—	$	—	$	21,666

(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.

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

	For the nine months ended September 30, 2014
(in thousands)	Securities Available-for- Sale			Contingent Consideration Asset		Equity Warrants			Contingent Consideration Liability			FDIC Clawback Liability
Balance, beginning of period	$	3,633		$	—	$	—		$	(49,900	)	$	(11,967	)
Total realized/unrealized gains (losses):
Included in earnings	—			—		78			—			(2,557		)
Included in other comprehensive income	(9		)	—		—			—			—
Additions	—			2,930		631			—			—
Settlements	(100		)	—		(29		)	17,266			—
Other (1)	—			—		—			(1,859		)	—
Balance, end of period	$	3,524		$	2,930	$	680		$	(34,493	)	$	(14,524	)

	For the nine months ended September 30, 2013
(in thousands)	Securities Available-for- Sale			Contingent Consideration Liability			FDIC Clawback Liability
Balance, beginning of period	$	65,187		$	(47,724	)	$	(9,970	)
Total realized/unrealized gains (losses):
Included in earnings	—			—			(1,309		)
Included in other comprehensive income	(35		)	—			—
Settlements	(3,655		)	—			—
Other (1)	91			(1,626		)	—
Balance, end of period	$	61,588		$	(49,350	)	$	(11,279	)

(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 and valuation adjustment related to the contingent consideration liability.

Information About Nonrecurring Level 3 Fair Value Measurements

(in thousands)	Fair Value at September 30, 2014		Valuation Method	Unobservable Inputs
Other real estate owned	$	8,101	Third-party appraisal	- Fair values are primarily based on unadjusted appraised values.

Schedule of total gains and losses 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)	2014			2013			2014			2013
Collateral dependent impaired loans:
Commercial real estate mortgages	$	—		$	(934	)	$	(5	)	$	(641	)
Residential mortgages	7			(2		)	81			(224		)
Home equity loans and lines of credit	—			—			—			116
Installment	—			—			—			(138		)
Other real estate owned (1)	(283		)	(364		)	784			(5,075		)
Private equity and alternative investments	—			(109		)	—			(508		)
Total net gains (losses) recognized	$	(276	)	$	(1,409	)	$	860		$	(6,470	)

(1) Net gains and losses on OREO include amounts related to covered OREO, a significant portion of which is payable to or reimbursable by the FDIC.

Schedule of carrying amounts and fair values of financial instruments

	September 30, 2014
	Carrying		Total		Fair Value Measurements Using
(in millions)	Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	503.6	$	503.6	$	503.6	$	—	$	—
Due from banks - interest bearing	625.2		625.2		625.2		—		—
Securities purchased under resale agreements	200.0		199.3		—		199.3		—
Securities held-to-maturity	3,450.6		3,462.0		—		3,462.0		—
Loans and leases, net of allowance	19,035.3		19,612.6		—		—		19,612.6
Covered loans, net of allowance	543.3		590.3		—		—		590.3
FDIC indemnification asset	59.9		48.3		—		—		48.3
Investment in FHLB and FRB stock	58.4		58.4		—		58.4		—
Financial Liabilities:
Deposits	$	27,956.0	$	27,957.8	$	—	$	27,361.6	$	596.2
Short-term borrowings	4.6		4.6		—		—		4.6
Long-term debt	631.4		697.1		—		605.5		91.6

	December 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	$	183.2	$	183.2	$	183.2	$	—	$	—
Due from banks - interest bearing	552.7		552.7		552.7		—		—
Securities purchased under resale agreements	200.0		200.5		—		200.5		—
Securities held-to-maturity	2,957.8		2,883.9		—		2,883.9		—
Loans and leases, net of allowance	16,867.9		17,362.9		—		—		17,362.9
Covered loans, net of allowance	701.0		739.5		—		—		739.5
FDIC indemnification asset	89.2		74.3		—		—		74.3
Investment in FHLB and FRB stock	64.4		64.4		—		64.4		—
Financial Liabilities:
Deposits	$	25,679.4	$	25,682.2	$	—	$	24,990.8	$	691.4
Short-term borrowings	3.9		3.9		—		—		3.9
Long-term debt	736.0		788.9		—		697.8		91.1