Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2013

Recurring and Nonrecurring Fair Value Measurements

The following tables present the balance of assets and liabilities measured at fair value on a recurring and nonrecurring basis as of June 30, 2013, December 31, 2012 and June 30, 2012:



			Fair Value by Hierarchy
	June 30, 2013		Level 1		Level 2		Level 3
Recurring fair value measurement
Available-for-sale securities:
Marketable equity securities	$	3,213	$	3,213	$	—	$	—
Non-marketable equity securities	3,281		—		10		3,271
U.S. States and political subdivisions	277,934		—		277,934		—
Residential mortgage-backed securities:
U.S. government agencies	1,075,928		—		1,075,928		—
Commercial mortgage-backed securities:
U.S. government agencies	56,497		—		56,497		—
Residential collateralized mortgage-backed securities:
U.S. government agencies	1,566,728		—		1,566,728		—
Non-agency	10		—		2		8
Commercial collateralized mortgage-backed securities:
U.S. government agencies	106,568		—		106,568		—
Corporate debt securities	51,138		—		—		51,138
Asset-backed securities:
Collateralized loan obligations, non-agency issued	158,095		—		—		158,095
Total available for sale securities	3,299,392		3,213		3,083,667		212,512
Residential loans held for sale	22,855		—		22,855		—
Derivative assets:
Interest rate swaps - fair value hedges	—		—		—		—
Interest rate swaps - nondesignated	47,804		—		47,804		—
Mortgage loan commitments	779		—		779		—
Forward sale contracts	4,458		—		4,458		—
Foreign exchange	117		—		117		—
Total derivative assets	53,158		—		53,158		—
Total fair value of assets (a)	$	3,375,405	$	3,213	$	3,159,680	$	212,512
Derivative liabilities:
Interest rate swaps - fair value hedges	$	14,319	$	—	$	14,319	$	—
Interest rate swaps - nondesignated	47,804		—		47,804		—
Foreign exchange	94		—		94		—
Other	—		—		—		—
Total derivative liabilities	62,217		—		62,217		—
True-up liability	10,937		—		—		10,937
Total fair value of liabilities (a)	$	73,154	$	—	$	62,217	$	10,937
Nonrecurring fair value measurement
Mortgage servicing rights (b)	$	22,529	$	—	$	—	$	22,529
Impaired loans (c)	52,606		—		—		52,606
Other property (d)	16,825		—		—		16,825
Other real estate covered by loss share (e)	18,338		—		—		18,338
Total fair value	$	110,298	$	—	$	—	$	110,298

(a) - There were no transfers between levels 1 and 2 of the fair value hierarchy during the three months ended June 30, 2013.

(b) - MSRs with a recorded investment of $22.6 million were reduced by a specific valuation allowance totaling $0.5 million to a reported carrying value of $22.1 million resulting in recognition of $0.8 million in recoveries included in loans sales and servicing income in the three months ended June 30, 2013.

(c) - Collateral dependent impaired loans with a recorded investment of $58.1 million were reduced by specific valuation allowance allocations totaling $5.5 million to a reported net carrying value of $52.6 million.

(d) - Amounts do not include assets held at cost at June 30, 2013. During the three months ended June 30, 2013, the re-measurement of foreclosed assets at fair value subsequent to initial recognition resulted in losses of $0.3 million included in noninterest expense.

(e) - Amounts do not include assets held at cost at June 30, 2013. During the three months ended June 30, 2013, 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, 2012		Level 1		Level 2		Level 3
Recurring fair value measurement
Available-for-sale securities:
Marketable equity securities	$	3,241	$	3,241	$	—	$	—
U.S. States and political subdivisions	268,204		—		268,204		—
Residential mortgage-backed securities:
U.S. government agencies	1,107,063		—		1,107,063		—
Commercial mortgage-backed securities:
U.S. government agencies	52,036		—		52,036		—
Residential collateralized mortgage-backed securities:
U.S. government agencies	1,329,421		—		1,329,421		—
Non-agency	11		—		2		9
Commercial collateralized mortgage-backed securities:
U.S. government agencies	111,343		—		111,343		—
Corporate debt securities	49,652		—		—		49,652
Total available-for-sale securities	2,920,971		3,241		2,868,069		49,661
Residential loans held for sale	23,683		—		23,683		—
Derivative assets:
Interest rate swaps - fair value hedges	—		—		—		—
Interest rate swaps - nondesignated	58,769		—		58,769		—
Mortgage loan commitments	4,400		—		4,400		—
Forward sale contracts	—		—		—		—
Foreign exchange	62		—		62		—
Total derivative assets	63,231		—		63,231		—
Total fair value of assets (a)	$	3,007,885	$	3,241	$	2,954,983	$	49,661
Derivative liabilities:
Interest rate swaps - fair value hedges	$	19,080	$	—	$	19,080	$	—
Interest rate swaps - nondesignated	58,769		—		58,769		—
Forward sale contracts	62		—		62		—
Foreign exchange	57		—		57		—
Other	—		—		—		—
Total derivative liabilities	77,968		—		77,968		—
True-up liability	12,259		—		—		12,259
Total fair value of liabilities (a)	$	90,227	$	—	$	77,968	$	12,259
Nonrecurring fair value measurement
Mortgage servicing rights (b)	$	18,833	$	—	$	—	$	18,833
Impaired loans (c)	54,491		—		—		54,491
Other property (d)	7,540		—		—		7,540
Other real estate covered by loss share (e)	12,631		—		—		12,631
Total fair value	$	93,495	$	—	$	—	$	93,495

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

(b) - MSRs with a recorded investment of $21.3 million were reduced by a specific valuation allowance totaling $2.6 million to a reported carrying value of $18.8 million resulting in the recognition of an impairment charge of $1.0 million in the year ended December 31, 2012.

(c) - Collateral dependent impaired loans with a recorded investment of $57.8 million were reduced by specific valuation allowance allocations totaling $3.3 million to a reported net carrying value of $54.5 million.

(d) Amounts do not include assets held at cost at December 31, 2012. During the year ended December 31, 2012, 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 December 31, 2012. During the year ended December 31, 2012, the re-measurement of covered foreclosed assets at fair value subsequent to initial recognition resulted in losses of $1.7 million included in noninterest expense.



			Fair Value by Hierarchy
	June 30, 2012		Level 1		Level 2		Level 3
Recurring fair value measurement
Available-for-sale securities:
Marketable equity securities	$	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	—		—		—		—
Foreign exchange	52		—		52		—
Total derivative assets	66,619		—		66,619		—
Total fair value of assets (a)	$	3,302,002	$	3,340	$	3,250,566	$	48,096
Derivative liabilities:
Interest rate swaps - fair value hedges	23,229		—		23,229		—
Interest rate swaps - nondesignated	61,319		—		61,319		—
Forward sale contracts	1,201		—		1,201		—
Foreign exchange	54		—		54		—
Other	—		—		—		—
Total derivative liabilities	85,803		—		85,803		—
True-up liability	11,820		—		—		11,820
Total fair value of liabilities (a)	$	97,623	$	—	$	85,803	$	11,820
Nonrecurring fair value measurement
Mortgage servicing rights (b)	$	17,913	$	—	$	—	$	17,913
Impaired loans (c)	73,110		—		—		73,110
Other property (d)	10,839		—		—		10,839
Other real estate covered by loss share (e)	51,557		—		—		51,557
Total fair value	$	153,419	$	—	$	—	$	153,419

(a) - There were no transfers between levels 1 and 2 of the fair value hierarchy during the three months 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 a recovery of $1.3 million in the three months ended June 30, 2012.

(c) - Collateral dependent impaired loans with a recorded investment of $82.2 million were reduced by specific valuation allowance allocations totaling $9.1 million to a reported net carrying value of $73.1 million.

(d) - Amounts do not include assets held at cost at June 30, 2012. During the three months 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 three months ended June 30, 2012, 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.

Summary of changes in Level 3 assets and liabilities measured at fair value

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three and six months ended June 30, 2013 and 2012 are summarized as follows:



	Three Months Ended											Six Months Ended
	June 30, 2013						June 30, 2012					June 30, 2013						June 30, 2012
	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	$	51,234		$	12,783		$	88,487		$	11,725	$	49,661		$	12,259		$	87,539		$	11,551
Fair value of assets acquired	3,271			—			—			—		3,271			—			—			—
(Gains) losses included in earnings (a)	—			(1,846		)	—			95		—			(1,322		)	—			269
Unrealized gains (losses) (b)	(1,923		)	—			1,323			—		(363		)	—			3,742			—
Purchases	159,916			—			—			—		159,916			—			—			—
Sales	—			—			(40,520		)	—		—			—			(40,520		)	—
Settlements	14			—			(1,194		)	—		27			—			(2,665		)	—
Net transfers into (out of) Level 3	—			—			—			—		—			—			—			—
Balance at ending of period	$	212,512		$	10,937		$	48,096		$	11,820	$	212,512		$	10,937		$	48,096		$	11,820

(a) Reported in other expense

(b) Reported in other comprehensive income (loss)

Summary of Change in fair value carrying amount of residential mortgages

Interest income on loans held for sale is accrued on the principal outstanding primarily using the “simple-interest” method. None of these loans were 90 days or more past due, nor were any on nonaccrual as of June 30, 2013, December 31, 2012 and June 30, 2012. The aggregate fair value, contractual balance and gain or loss on loans held for sale was as follows:



	June 30, 2013			December 31, 2012		June 30, 2012
Aggregate fair value carrying amount	$	22,855		$	23,683	$	19,018
Aggregate unpaid principal / contractual balance	23,220			22,765		18,267
Carrying amount over aggregate unpaid principal (a)	$	(365	)	$	918	$	751

(a) These changes are included in loan sales and servicing income in the Consolidated Statements of Comprehensive Income.

Fair Value of Financial Instruments



	June 30, 2013
	Carrying Amount		Fair Value
	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	909,490	$	909,490	$	—	$	909,490	$	—
Available-for-sale securities	3,299,392		3,299,392		3,213		3,083,667		212,512
Held-to-maturity securities	2,551,860		2,487,071		—		2,487,071		—
Other securities	267,565		267,565		—		267,565		—
Loans held for sale	22,855		22,855		—		22,855		—
Net originated loans	9,033,980		8,984,845		—		—		8,984,845
Net acquired loans	4,258,892		4,258,892		—		—		4,258,892
Net covered loans and loss share receivable	711,367		711,367		—		—		711,367
Accrued interest receivable	48,635		48,635		—		48,635		—
Derivatives	53,158		53,158		—		53,158		—
Financial liabilities:
Deposits	$	19,119,722	$	19,125,843	$	—	$	19,125,843	$	—
Federal funds purchased and securities sold under agreements to repurchase	844,871		844,871		—		844,871		—
Wholesale borrowings	201,337		205,210		—		205,210		—
Long-term debt	324,422		322,322		—		322,322		—
Accrued interest payable	9,066		9,066		—		9,066		—
Derivatives	62,217		62,217		—		62,217		—



	December 31, 2012
	Carrying Amount		Fair Value
	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	258,014	$	258,014	$	—	$	258,014	$	—
Available-for-sale securities	2,920,971		2,920,971		3,241		2,868,069		49,661
Held-to-maturity securities	622,121		630,799		—		630,799		—
Other securities	140,717		140,717		—		140,717		—
Loans held for sale	23,683		23,683		—		23,683		—
Net originated loans	8,632,717		8,604,872		—		—		8,604,872
Net covered loans and loss share receivable	975,870		975,870		—		—		975,870
Accrued interest receivable	40,389		40,389		—		40,389		—
Derivatives	63,231		63,231		—		63,231		—
Financial liabilities:
Deposits	$	11,759,425	$	11,765,873	$	—	$	11,765,873	$	—
Federal funds purchased and securities sold under agreements to repurchase	1,104,525		1,104,525		—		1,104,525		—
Wholesale borrowings	136,883		143,029		—		143,029		—
Accrued interest payable	2,515		2,515		—		2,515		—
Derivatives	77,968		77,968		—		77,968		—



	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 originated 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	66,619		66,619		—		66,619		—
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	85,803		85,803		—		85,803		—

- Definition

Tabular disclosure related to assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a recurring and/or nonrecurring basis in periods after initial recognition. Disclosures include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3) as well as transfers between levels 1 and 2.

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-Name Statement of Financial Accounting Standard (FAS)

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+ Details

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details

- 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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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

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-Subparagraph b-d

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-Subparagraph c(2), d, e, f

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-Subparagraph a, b, c(1), d(1)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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