Fair Value Measurement (Tables)

3 Months Ended

Mar. 31, 2012

The following tables presents the balances of assets and liabilities measured at fair value on a recurring and nonrecurring basis as of March 31, 2012, December 31, 2011 and March 31, 2011:



			Fair Value by Hierarchy
	March 31, 2012		Level 1		Level 2		Level 3
Recurring fair value measurement
Available-for-sale securities:
Money market mutual funds	$	3,308	$	3,308	$	—	$	—
U.S. government agency debentures	35,455		—		35,455		—
U.S. States and political subdivisions	386,525		—		386,525		—
Residential mortgage-backed securities:
U.S. government agencies	1,454,416		—		1,454,416		—
Commercial mortgage-backed securities:
U.S. government agencies	27,663		—		27,663		—
Residential collateralized mortgage-backed securities:
U.S. government agencies	1,251,304		—		1,251,304		—
Non-agency	41,832		—		2		41,830
Commercial collateralized mortgage-backed securities:
U.S. government agencies	147,355		—		147,355		—
Corporate debt securities	143,789		—		97,132		46,657
Total available-for-sale securities	3,491,647		3,308		3,399,852		88,487
Residential loans held for sale	42,447		—		42,447		—
Derivative assets:
Interest rate swaps - fair value hedges	—		—		—		—
Interest rate swaps - nondesignated	56,298		—		56,298		—
Mortgage loan commitments	3,268		—		3,268		—
Forward sale contracts	446		—		446		—
Foreign exchange	103		—		103		—
Total derivative assets	60,115		—		60,115		—
Total fair value of assets (a)	$	3,594,209	$	3,308	$	3,502,414	$	88,487
Derivative liabilities:
Interest rate swaps - fair value hedges	23,786		—		23,786		—
Interest rate swaps - nondesignated	56,298		—		56,298		—
Foreign exchange	90		—		90		—
Total derivative liabilities	80,174		—		80,174		—
True-up liability	11,725		—		—		11,725
Total fair value of liabilities (a)	$	91,899	$	—	$	80,174	$	11,725
Nonrecurring fair value measurement
Mortgage servicing rights (b)	$	18,869	$	—	$	—	$	18,869
Impaired loans (c)	50,854		—		—		50,854
Other property (d)	4,768		—		—		4,768
Other real estate covered by loss share (e)	47,765		—		—		47,765
Total fair value	$	122,256	$	—	$	—	$	122,256

(a) - There were no transfers between levels 1 and 2 of the fair value hierarchy during the quarter ended March 31, 2012.

(b) - Mortgage servicing rights with a recorded investment of $20.9 million were reduced by a specific valuation allowance totaling $2.2 million to a reported carrying value of $18.8 million resulting in recognition of a recovery of $1.3 million in the quarter ended March 31, 2012.

(c) - Collateral dependent impaired loans with a recorded investment of $58.3 million were reduced by specific valuation allowance allocations totaling $7.5 million to a reported net carrying value of $50.9 million.

(d) - Amounts do not include assets held at cost at March 31, 2012. During the quarter ended March 31, 2012, the re-measurement of foreclosed assets at fair value subsequent to initial recognition resulted in losses of $0.9 million included in noninterest expense.

(e) - Amounts do not include assets held at cost at March 31, 2012. During the quarter ended March 31, 2012, the re-measurement of covered foreclosed assets at fair value subsequent to initial recognition resulted in losses $0.6 million included in noninterest expense.



				Fair Value by Hierarchy
	December 31, 2011			Level 1		Level 2			Level 3
Recurring fair value measurement
Available-for-sale securities:
Money market mutual funds	$	3,299		$	3,299	$	—		$	—
U.S. government agency debentures	123,069			—		123,069			—
U.S. States and political subdivisions	357,731			—		357,731			—
Residential mortgage-backed securities:
U.S. government agencies	1,460,343			—		1,460,343			—
Residential collateralized mortgage-backed securities:
U.S. government agencies	1,137,835			—		1,137,835			—
Non-agency	43,307			—		2			43,305
Commercial collateralized mortgage-backed securities:
U.S. government agencies	129,127			—		129,127			—
Corporate debt securities	98,842			—		54,608			44,234
Total available-for-sale securities	3,353,553			3,299		3,262,715			87,539
Residential loans held for sale	30,077			—		30,077			—
Derivative assets:
Interest rate swaps - fair value hedges	—			—		—			—
Interest rate swaps - nondesignated	58,875			—		58,875			—
Mortgage loan commitments	4,959			—		4,959			—
Forward sale contracts	(1,798		)	—		(1,798		)	—
Foreign exchange	20			—		20			—
Total derivative assets	62,056			—		62,056			—
Total fair value of assets (a)	$	3,445,686		$	3,299	$	3,354,848		$	87,539
Derivative liabilities:
Interest rate swaps - fair value hedges	25,889			—		25,889			—
Interest rate swaps - nondesignated	58,875			—		58,875			—
Foreign exchange	18			—		18			—
Other	1,324			—		1,324			—
Total derivative liabilities	86,106			—		86,106			—
True-up liability	11,551			—		—			11,551
Total fair value of liabilities (a)	$	97,657		$	—	$	86,106		$	11,551
Nonrecurring fair value measurement
Mortgage servicing rights (b)	$	17,749		$	—	$	—		$	17,749
Impaired loans (c)	56,739			—		—			56,739
Other property (d)	4,087			—		—			4,087
Other real estate covered by loss share (e)	43,616			—		—			43,616
Total fair value	$	122,191		$	—	$	—		$	122,191

(a) - There were no transfers between levels 1 and 2 of the fair value hierarchy during the quarter ended December 31, 2011.

(b) - Mortgage servicing rights with a recorded investment of $21.2 million were reduced by a specific valuation allowance totaling $3.5 million to a reported carrying value of $17.6 million resulting in the recognition of an impairment charge of $3.5 million in the year ended December 31, 2011.

(c) - Collateral dependent impaired loans with a recorded investment of $64.5 million were reduced by specific valuation allowance allocations totaling $7.7 million to a reported net carrying value of $56.7 million.

(d) Amounts do not include assets held at cost at December 31, 2011. During the year ended December 31, 2011, the re-measurement of foreclosed assets at fair value subsequent to initial recognition resulted in losses of $5.4 million included in noninterest expense.

(e) Amounts do not include assets held at cost at December 31, 2011. During the year ended December 31, 2011, the re-measurement of covered foreclosed assets at fair value subsequent to initial recognition resulted in losses of $3.0 million included in noninterest expense.



				Fair Value by Hierarchy
	March 31, 2011			Level 1		Level 2			Level 3
Recurring fair value measurement
Available-for-sale securities:
Money market mutual funds	$	3,839		$	3,839	$	—		$	—
U.S. government agency debentures	409,391			—		409,391			—
U.S. States and political subdivisions	296,728			—		296,728			—
Residential mortgage-backed securities:
U.S. government agencies	1,512,520			—		1,512,520			—
Residential collateralized mortgage-backed securities:
U.S. government agencies	1,013,356			—		1,013,356			—
Non-agency	77,609			—		3			77,606
Commercial collateralized mortgage-backed securities:
U.S. government agencies	—			—		—			—
Corporate debt securities	49,308			—		—			49,308
Total available-for-sale securities	3,362,751			3,839		3,231,998			126,914
Residential loans held for sale	13,443			—		13,443			—
Derivative assets:
Interest rate swaps - fair value hedges	—			—		—			—
Interest rate swaps - nondesignated	39,108			—		39,108			—
Mortgage loan commitments	1,432			—		1,432			—
Forward sale contracts	(170		)	—		(170		)	—
Foreign exchange	10			—		10			—
Total derivative assets	40,380			—		40,380			—
Total fair value of assets (a)	$	3,416,574		$	3,839	$	3,285,821		$	126,914
Derivative liabilities:
Interest rate swaps - fair value hedges	24,465			—		24,465			—
Interest rate swaps - nondesignated	39,108			—		39,108			—
Foreign exchange	10			—		10			—
Other	340			—		340			—
Total derivative liabilities	63,923			—		63,923			—
True-up liability	11,601			—		11,601			—
Total fair value of liabilities (a)	$	75,524		$	—	$	75,524		$	—
Nonrecurring fair value measurement
Mortgage servicing rights (b)	$	—		$	—	$	—		$	—
Impaired loans (c)	84,212			—		—			84,212
Other property (d)	10,468			—		—			10,468
Other real estate covered by loss share (e)	42,235			—		—			42,235
Total fair value	$	136,915		$	—	$	—		$	136,915

(a) - There were no transfers between levels 1 and 2 of the fair value hierarchy during the quarter ended March 31, 2011.

(b) - Recorded at carrying value of $21.5 million as of March 31, 2011.

(c) - Collateral dependent impaired loans with a recorded investment of $99.7 million were reduced by specific valuation allowance allocations totaling $15.5 million to a reported net carrying value of $84.2 million.

(d) - Amounts do not include assets held at cost at March 31, 2011. During the quarter ended March 31, 2011, the re-measurement of foreclosed assets at fair value subsequent to initial recognition resulted in losses of $2.2 million included in noninterest expense.

(e) Amounts do not include assets held at cost at March 31, 2011. During the quarter ended March 31, 2011, the re-measurement of covered foreclosed assets at fair value subsequent to initial recognition resulted in losses of $0.3 million included in noninterest expense.

Assets measured at fair value on a nonrecurring basis

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized follows:



	Three months ended
	March 31, 2012					March 31, 2011
	Available-for-sale securities			True-up liability		Available-for-sale securities		True-up liability
Balance at beginning of period	$	87,539		$	11,551	$	60,344	$	12,061
(Gains) losses included in earnings	—			174		—		(460		)
Unrealized gains (losses) (a)	2,419			—		2,694		—
Purchases	—			—		63,876		—
Sales	—			—		—		—
Settlements	(1,471		)	—		—		—
Net transfers into (out of) Level 3	—			—		—		—
Balance at ending of period	$	88,487		$	11,725	$	126,914	$	11,601

(a) Reported in other comprehensive income (loss)

Fair Value of Financial Instruments

The carrying amount and estimated fair value of the Corporation’s financial instruments that are carried at either fair value or cost as of March 31, 2012, December 31, 2011 and March 31, 2011 are shown in the tables below.



	March 31, 2012
	Carrying Amount		Fair Value
	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	489,985	$	489,985	$	—	$	489,985	$	—
Available for sale securities	3,491,647		3,491,647		3,308		3,399,852		88,487
Held to maturity securities	100,840		103,865		—		103,865		—
Other securities	140,713		140,713		—		140,713		—
Loans held for sale	42,447		42,447		—		42,447		—
Net noncovered loans	7,759,360		7,496,821		—		—		7,496,821
Net covered loans and loss share receivable	1,337,080		1,337,080		—		—		1,337,080
Accrued interest receivable	45,270		45,270		—		45,270		—
Derivatives	60,115		60,115		—		60,115		—
Financial liabilities:
Deposits	$	11,648,165	$	11,659,976	$	—	$	11,659,976	$	—
Federal funds purchased and securities sold under agreements to repurchase	928,760		928,760		—		928,760		—
Wholesale borrowings	176,611		184,640		—		184,640		—
Accrued interest payable	3,350		3,350		—		3,350		—
Derivatives	80,174		80,174		—		80,174		—



	December 31, 2011
	Carrying Amount		Fair Value
	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	377,319	$	377,319	$	—	$	377,319	$	—
Available for sale securities	3,353,553		3,353,553		3,299		3,262,715		87,539
Held to maturity securities	82,764		85,112		—		85,112		—
Other securities	140,726		140,726		—		140,726		—
Loans held for sale	30,077		30,077		—		30,077		—
Net noncovered loans	7,641,245		7,373,801		—		—		7,373,801
Net covered loans and loss share receivable	1,460,723		1,460,723		—		—		1,460,723
Accrued interest receivable	42,274		42,274		—		42,274		—
Derivatives	62,056		62,056		—		62,056		—
Financial liabilities:
Deposits	$	11,431,609	$	11,445,777	$	—	$	11,445,777	$	—
Federal funds purchased and securities sold under agreements to repurchase	866,265		866,265		—		866,265		—
Wholesale borrowings	203,462		211,623		—		211,623		—
Accrued interest payable	3,915		3,915		—		3,915		—
Derivatives	86,106		86,106		—		86,106		—



	March 31, 2011
	Carrying Amount		Fair Value
	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	638,781	$	638,781	$	—	$	638,781	$	—
Available for sale securities	3,362,751		3,362,751		3,839		3,231,998		126,914
Held to maturity securities	65,923		67,903		—		67,903		—
Other securities	160,818		160,818		—		160,818		—
Loans held for sale	13,443		13,443		—		13,443		—
Net noncovered loans	7,071,534		6,673,608		—		—		6,673,608
Net covered loans and loss share receivable	1,841,850		1,841,850		—		—		1,841,850
Accrued interest receivable	41,418		41,418		—		41,418		—
Derivatives	40,380		40,380		—		40,380		—
Financial liabilities:
Deposits	$	11,395,946	$	11,416,463	$	—	$	11,416,463	$	—
Federal funds purchased and securities sold under agreements to repurchase	952,995		956,975		—		956,975		—
Wholesale borrowings	325,046		328,006		—		328,006		—
Accrued interest payable	5,834		5,834		—		5,834		—
Derivatives	63,923		63,923		—		63,923		—

Summary of Change in fair value carrying amount of residential mortgages

The aggregate fair value, contractual balance and gains on loans held for sale are as follows:



	Quarter ended		Year ended		Quarter ended
	March 31, 2012		December 31, 2011		March 31, 2011
Aggregate fair value	$	42,447	$	30,077	$	13,443
Contractual balance	41,542		28,948		13,008
Gain (a)	905		1,129		434

(a) Included in loan sales and servicing income.

- Definition

Tabular disclosure of assets and liabilities by class, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). The disclosures that may be required or desired include: (a) the fair value measurements recorded during the period and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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