Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2012

The following tables presents the balances of assets and liabilities measured at fair value on a recurring and nonrecurring basis as of June 30, 2012, December 31, 2011 and June 30, 2011:



				Fair Value by Hierarchy
	June 30, 2012			Level 1		Level 2			Level 3
Recurring fair value measurement
Available-for-sale securities:
Money market mutual funds	$	3,340		$	3,340	$	—		$	—
U.S. government agency debentures	35,297			—		35,297			—
U.S. States and political subdivisions	265,124			—		265,124			—
Residential mortgage-backed securities:
U.S. government agencies	1,382,813			—		1,382,813			—
Commercial mortgage-backed securities:
U.S. government agencies	38,428			—		38,428			—
Residential collateralized mortgage-backed securities:
U.S. government agencies	1,277,378			—		1,277,378			—
Non-agency	13			—		2			11
Commercial collateralized mortgage-backed securities:
U.S. government agencies	68,545			—		68,545			—
Corporate debt securities	145,427			—		97,342			48,085
Total available-for-sale securities	3,216,365			3,340		3,164,929			48,096
Residential loans held for sale	19,018					19,018
Derivative assets:
Interest rate swaps - fair value hedges	—			—		—			—
Interest rate swaps - nondesignated	61,319			—		61,319			—
Mortgage loan commitments	5,248			—		5,248			—
Forward sale contracts	(1,201		)	—		(1,201		)	—
Foreign exchange	52			—		52			—
Total derivative assets	65,418			—		65,418			—
Total fair value of assets (a)	$	3,300,801		$	3,340	$	3,249,365		$	48,096
Derivative liabilities:
Interest rate swaps - fair value hedges	23,229			—		23,229			—
Interest rate swaps - nondesignated	61,319			—		61,319			—
Foreign exchange	54			—		54			—
Total derivative liabilities	84,602			—		84,602			—
True-up liability	11,820			—		—			11,820
Total fair value of liabilities (a)	$	96,422		$	—	$	84,602		$	11,820
Nonrecurring fair value measurement
Mortgage servicing rights (b)	$	17,913		$	—	$	—		$	17,913
Impaired loans (c)	62,094			—		—			62,094
Other property (d)	10,839			—		—			10,839
Other real estate covered by loss share (e)	51,557			—		—			51,557
Total fair value	$	142,403		$	—	$	—		$	142,403

(a) - There were no transfers between levels 1 and 2 of the fair value hierarchy during the quarter ended June 30, 2012.

(b) - Mortgage servicing rights with a recorded investment of $21.3 million were reduced by a specific valuation allowance totaling $3.5 million to a reported carrying value of $17.8 million resulting in recognition of $1.3 million in expense included in loans sales and servicing income in the quarter ended June 30, 2012.

(c) - Collateral dependent impaired loans with a recorded investment of $73.4 million were reduced by specific valuation allowance allocations totaling $11.3 million to a reported net carrying value of $62.1 million.

(d) - Amounts do not include assets held at cost at June 30, 2012. During the quarter ended June 30, 2012, the re-measurement of foreclosed assets at fair value subsequent to initial recognition resulted in losses of $0.4 million included in noninterest expense.

(e) - Amounts do not include assets held at cost at June 30, 2012. During the quarter ended June 30, 2012, the re-measurement of covered foreclosed assets at fair value subsequent to initial recognition resulted in losses $0.7 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
	June 30, 2011		Level 1		Level 2		Level 3
Recurring fair value measurement
Available-for-sale securities:
Money market mutual funds	$	3,752	$	3,752	$	—	$	—
U.S. government agency debentures	371,244		—		371,244		—
U.S. States and political subdivisions	309,785		—		309,785		—
Residential mortgage-backed securities:
U.S. government agencies	1,588,971		—		1,588,971		—
Residential collateralized mortgage-backed securities:
U.S. government agencies	1,079,950		—		1,079,947		3
Non-agency	93,847		—		3		93,844
Commercial collateralized mortgage-backed securities:
U.S. government agencies	—		—		—		—
Corporate debt securities	50,723		—		—		50,723
Total available-for-sale securities	3,498,272		3,752		3,349,950		144,570
Residential loans held for sale	22,951		—		22,951		—
Derivative assets:
Interest rate swaps - fair value hedges	—		—		—		—
Interest rate swaps - nondesignated	46,246		—		46,246		—
Mortgage loan commitments	1,539		—		1,539		—
Forward sale contracts	5		—		5		—
Foreign exchange	19		—		19		—
Total derivative assets	47,809		—		47,809		—
Total fair value of assets (a)	$	3,569,032	$	3,752	$	3,420,710	$	144,570
Derivative liabilities:
Interest rate swaps - fair value hedges	25,772		—		25,772		—
Interest rate swaps - nondesignated	46,246		—		46,246		—
Foreign exchange	19		—		19		—
Other	—		—		—		—
Total derivative liabilities	72,037		—		72,037		—
True-up liability	12,196		—		—		12,196
Total fair value of liabilities (a)	$	84,233	$	—	$	72,037	$	12,196
Nonrecurring fair value measurement
Mortgage servicing rights (b)	$	20,766	$	—	$	—	$	20,766
Impaired loans (c)	72,289		—		—		72,289
Other property (d)	8,916		—		—		8,916
Other real estate covered by loss share (e)	34,376		—		—		34,376
Total fair value	$	136,347	$	—	$	—	$	136,347

(a) - There were no transfers between levels 1 and 2 of the fair value hierarchy during the quarter ended June 30, 2011.

(b) - Recorded at carrying value of $20.7 million as of June 30, 2011.

(c) - Collateral dependent impaired loans with a recorded investment of $86.5 million were reduced by specific valuation allowance allocations totaling $14.2 million to a reported net carrying value of $72.3 million.

(d) - Amounts do not include assets held at cost at June 30, 2011. During the quarter ended June 30, 2011, 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 June 30, 2011. During the quarter ended June 30, 2011, the re-measurement of covered foreclosed assets at fair value subsequent to initial recognition resulted in losses of $0.7 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										Six Months Ended
	June 30, 2012					June 30, 2011					June 30, 2012					June 30, 2011
	Available-for-sale securities			True-up liability		Available-for-sale securities			True-up liability		Available-for-sale securities			True-up liability		Available-for-sale securities		True-up liability
Balance at beginning of period	$	88,487		$	11,725	$	126,914		$	11,601	$	87,539		$	11,551	$	60,344	$	12,061
(Gains) losses included in earnings (a)	—			95		—			595		—			269		—		135
Unrealized gains (losses) (b)	1,323			—		(2,344		)	—		3,742			—		350		—
Purchases	—			—		20,000			—		—			—		83,876		—
Sales	(40,520		)	—		—			—		(40,520		)	—		—		—
Settlements	(1,194		)	—		—			—		(2,665		)	—		—		—
Net transfers into (out of) Level 3	—			—		—			—		—			—		—		—
Balance at ending of period	$	48,096		$	11,820	$	144,570		$	12,196	$	48,096		$	11,820	$	144,570	$	12,196

(a) Reported in other

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 June 30, 2012, December 31, 2011 and June 30, 2011 are shown in the tables below.



	June 30, 2012
	Carrying Amount		Fair Value
	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	337,935	$	337,935	$	—	$	337,935	$	—
Available for sale securities	3,216,365		3,216,365		3,340		3,164,929		48,096
Held to maturity securities	352,221		355,120		—		355,120		—
Other securities	140,742		140,742		—		140,742		—
Loans held for sale	19,018		19,018		—		19,018		—
Net noncovered loans	7,996,079		7,677,176		—		—		7,677,176
Net covered loans and loss share receivable	1,229,282		1,229,282		—		—		1,229,282
Accrued interest receivable	43,727		43,727		—		43,727		—
Derivatives	65,418		65,418		—		65,418		—
Financial liabilities:
Deposits	$	11,615,841	$	11,625,406	$	—	$	11,625,406	$	—
Federal funds purchased and securities sold under agreements to repurchase	896,910		896,910		—		896,910		—
Wholesale borrowings	178,135		186,458		—		186,458		—
Accrued interest payable	3,266		3,266		—		3,266		—
Derivatives	84,602		84,602		—		84,602		—



	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		—



	June 30, 2011
	Carrying Amount		Fair Value
	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	224,078	$	224,078	$	—	$	224,078	$	—
Available for sale securities	3,498,272		3,498,272		3,752		3,349,950		144,570
Held to maturity securities	80,857		82,905		—		82,905		—
Other securities	160,805		160,805		—		160,805		—
Loans held for sale	22,951		22,951		—		22,951		—
Net noncovered loans	7,299,032		6,929,941		—		—		6,929,941
Net covered loans and loss share receivable	1,721,747		1,721,747		—		—		1,721,747
Accrued interest receivable	42,276		42,276		—		42,276		—
Derivatives	47,809		47,809		—		47,809		—
Financial liabilities:
Deposits	$	11,340,939	$	11,359,102	$	—	$	11,359,102	$	—
Federal funds purchased and securities sold under agreements to repurchase	809,570		814,030		—		814,030		—
Wholesale borrowings	325,133		328,808		—		328,808		—
Accrued interest payable	5,851		5,851		—		5,851		—
Derivatives	72,037		72,037		—		72,037		—

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
	June 30, 2012		December 31, 2011		June 30, 2011
Aggregate fair value	$	19,018	$	30,077	$	22,951
Contractual balance	18,267		28,948		22,419
Gain (a)	751		1,129		532

(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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