Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2012

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



				Fair Value by Hierarchy
	September 30, 2012			Level 1		Level 2			Level 3
Recurring fair value measurement
Available-for-sale securities:
Money market mutual funds	$	3,245		$	3,245	$	—		$	—
U.S. government agency debentures	35,137			—		35,137			—
U.S. States and political subdivisions	258,418			—		258,418			—
Residential mortgage-backed securities:
U.S. government agencies	1,277,831			—		1,277,831			—
Commercial mortgage-backed securities:
U.S. government agencies	15,667			—		15,667			—
Residential collateralized mortgage-backed securities:
U.S. government agencies	1,205,525			—		1,205,525			—
Non-agency	12			—		1			11
Commercial collateralized mortgage-backed securities:
U.S. government agencies	68,665			—		68,665			—
Corporate debt securities	47,493			—		—			47,493
Total available-for-sale securities	2,911,993			3,245		2,861,244			47,504
Residential loans held for sale	17,540			—		17,540			—
Derivative assets:
Interest rate swaps - fair value hedges	—			—		—			—
Interest rate swaps - nondesignated	62,796			—		62,796			—
Mortgage loan commitments	7,394			—		7,394			—
Forward sale contracts	(2,223		)	—		(2,223		)	—
Foreign exchange	80			—		80			—
Total derivative assets	68,047			—		68,047			—
Total fair value of assets (a)	$	2,997,580		$	3,245	$	2,946,831		$	47,504
Derivative liabilities:
Interest rate swaps - fair value hedges	22,071			—		22,071			—
Interest rate swaps - nondesignated	62,796			—		62,796			—
Foreign exchange	71			—		71			—
Total derivative liabilities	84,938			—		84,938			—
True-up liability	12,642			—		—			12,642
Total fair value of liabilities (a)	$	97,580		$	—	$	84,938		$	12,642
Nonrecurring fair value measurement
Mortgage servicing rights (b)	$	17,294		$	—	$	—		$	17,294
Impaired loans (c)	44,010			—		—			44,010
Other property (d)	6,333			—		—			6,333
Other real estate covered by loss share (e)	14,695			—		—			14,695
Total fair value	$	82,332		$	—	$	—		$	82,332

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

(b) - MSRs with a recorded investment of $21.3 million were reduced by a specific valuation allowance totaling $4.1 million to a reported carrying value of $17.3 million resulting in recognition of $0.6 million in expense included in loans sales and servicing income in the quarter ended September 30, 2012.

(c) - Collateral dependent impaired loans with a recorded investment of $52.5 million were reduced by specific valuation allowance allocations totaling $8.5 million to a reported net carrying value of $44.0 million.

(d) - Amounts do not include assets held at cost at September 30, 2012. During the quarter ended September 30, 2012, the re-measurement of foreclosed assets at fair value subsequent to initial recognition resulted in losses of $0.1 million included in noninterest expense.

(e) - Amounts do not include assets held at cost at September 30, 2012. During the quarter ended September 30, 2012, the re-measurement of covered foreclosed assets at fair value subsequent to initial recognition resulted in losses $0.2 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			—		65			—
Total derivative assets	62,056			—		62,101			—
Total fair value of assets (a)	$	3,445,686		$	3,299	$	3,354,893		$	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			—		62			—
Other	1,324			—		1,324			—
Total derivative liabilities	86,106			—		86,150			—
True-up liability	11,551			—		—			11,551
Total fair value of liabilities (a)	$	97,657		$	—	$	86,150		$	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)	18,707			—		—			18,707
Total fair value	$	97,282		$	—	$	—		$	97,282

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

(b) - MSRs 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
	September 30, 2011			Level 1		Level 2			Level 3
Recurring fair value measurement
Available-for-sale securities:
Money market mutual funds	$	3,715		$	3,715	$	—		$	—
U.S. government agency debentures	203,718			—		203,718			—
U.S. States and political subdivisions	314,441			—		314,441			—
Residential mortgage-backed securities:
U.S. government agencies	1,481,222			—		1,481,222			—
Residential collateralized mortgage-backed securities:
U.S. government agencies	1,103,906			—		1,103,906			—
Non-agency	44,857			—		3			44,854
Commercial collateralized mortgage-backed securities:
U.S. government agencies	—			—		—			—
Corporate debt securities	46,187			—		—			46,187
Total available-for-sale securities	3,198,046			3,715		3,103,290			91,041
Residential loans held for sale	39,340			—		39,340			—
Derivative assets:
Interest rate swaps - fair value hedges	—			—		—			—
Interest rate swaps - nondesignated	61,299			—		61,299			—
Mortgage loan commitments	5,525			—		5,525			—
Forward sale contracts	(1,591		)	—		(1,591		)	—
Foreign exchange	85			—		85			—
Total derivative assets	65,318			—		65,318			—
Total fair value of assets (a)	$	3,302,704		$	3,715	$	3,207,948		$	91,041
Derivative liabilities:
Interest rate swaps - fair value hedges	28,278			—		28,278			—
Interest rate swaps - nondesignated	61,299			—		61,299			—
Foreign exchange	80			—		80			—
Other	—			—		—			—
Total derivative liabilities	89,657			—		89,657			—
True-up liability	11,913			—		—			11,913
Total fair value of liabilities (a)	$	101,570		$	—	$	89,657		$	11,913
Nonrecurring fair value measurement
Mortgage servicing rights (b)	$	16,866		$	—	$	—		$	16,866
Impaired loans (c)	59,155			—		—			59,155
Other property (d)	8,648			—		—			8,648
Other real estate covered by loss share (e)	29,350			—		—			29,350
Total fair value	$	114,019		$	—	$	—		$	114,019

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

(b) - MSRs were recorded at carrying value of $16.8 million as of September 30, 2011.

(c) - Collateral dependent impaired loans with a recorded investment of $66.2 million were reduced by specific valuation allowance allocations totaling $7.1 million to a reported net carrying value of $59.2 million.

(d) - Amounts do not include assets held at cost at September 30, 2011. During the quarter ended September 30, 2011, the re-measurement of foreclosed assets at fair value subsequent to initial recognition resulted in losses of $1.0 million included in noninterest expense.

(e) Amounts do not include assets held at cost at September 30, 2011. During the quarter ended September 30, 2011, the re-measurement of covered foreclosed assets at fair value subsequent to initial recognition resulted in losses of $1.1 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											Nine Months Ended
	September 30, 2012					September 30, 2011						September 30, 2012					September 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	$	48,096		$	11,820	$	144,570		$	12,196		$	87,539		$	11,551	$	60,344		$	12,061
(Gains) losses included in earnings (a)	—			822		—			(283		)	—			1,091		—			(148		)
Unrealized gains (losses) (b)	(605		)	—		(4,549		)	—			3,137			—		(4,199		)	—
Purchases	—			—		—			—			—			—		83,876			—
Sales	—			—		(44,924		)	—			(40,520		)	—		(44,924		)	—
Settlements	13			—		(4,056		)	—			(2,652		)	—		(4,056		)	—
Net transfers into (out of) Level 3	—			—		—			—			—			—		—			—
Balance at ending of period	$	47,504		$	12,642	$	91,041		$	11,913		$	47,504		$	12,642	$	91,041		$	11,913

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



	September 30, 2012
	Carrying Amount		Fair Value
	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	238,417	$	238,417	$	—	$	238,417	$	—
Available for sale securities	2,911,993		2,911,993		3,245		2,861,244		47,504
Held to maturity securities	620,631		631,237		—		631,237		—
Other securities	140,730		140,730		—		140,730		—
Loans held for sale	17,540		17,540		—		17,540		—
Net noncovered loans	8,217,478		7,898,195		—		—		7,898,195
Net covered loans and loss share receivable	1,131,285		1,131,285		—		—		1,131,285
Accrued interest receivable	43,901		43,901		—		43,901		—
Derivatives	68,047		68,047		—		68,047		—
Financial liabilities:
Deposits	$	11,532,426	$	11,540,681	$	—	$	11,540,681	$	—
Federal funds purchased and securities sold under agreements to repurchase	963,455		963,455		—		963,455		—
Wholesale borrowings	178,083		187,230		—		187,230		—
Accrued interest payable	2,798		2,798		—		2,798		—
Derivatives	84,938		84,938		—		84,938		—



	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		62,101		—		62,101		—
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		86,150		—		86,150		—



	September 30, 2011
	Carrying Amount		Fair Value
	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	318,945	$	318,945	$	—	$	318,945	$	—
Available for sale securities	3,198,046		3,198,046		3,715		3,103,290		91,041
Held to maturity securities	92,214		94,921		—		94,921		—
Other securities	160,793		160,793		—		160,793		—
Loans held for sale	39,340		39,340		—		39,340		—
Net noncovered loans	7,522,385		7,148,775		—		—		7,148,775
Net covered loans and loss share receivable	1,612,615		1,612,615		—		—		1,612,615
Accrued interest receivable	41,199		41,199		—		41,199		—
Derivatives	65,318		65,318		—		65,318		—
Financial liabilities:
Deposits	$	11,396,121	$	11,412,576	$	—	$	11,412,576	$	—
Federal funds purchased and securities sold under agreements to repurchase	987,030		991,304		—		991,304		—
Wholesale borrowings	248,006		256,069		—		256,069		—
Accrued interest payable	4,627		4,627		—		4,627		—
Derivatives	89,657		89,657		—		89,657		—

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
	September 30, 2012		December 31, 2011		September 30, 2011
Aggregate fair value	$	17,540	$	30,077	$	39,340
Contractual balance	16,635		28,948		37,786
Gain (a)	905		1,129		1,554

(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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