Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 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 at December 31, 2013 and 2012:



			Fair Value by Hierarchy
	December 31, 2013		Level 1		Level 2		Level 3
Recurring fair value measurement
Available-for-sale securities:
Marketable equity securities	$	3,036	$	3,036	$	—	$	—
Nonmarketable equity securities	3,281		—		10		3,271
U.S. States and political subdivisions	262,367		—		262,367		—
Residential mortgage-backed securities:
U.S. government agencies	969,922		—		969,922		—
Commercial mortgage-backed securities:
U.S. government agencies	69,567		—		69,567		—
Residential collateralized mortgage-backed securities:
U.S. government agencies	1,518,393		—		1,518,393		—
Nonagency	9		—		—		9
Commercial collateralized mortgage-backed securities:
U.S. government agencies	102,268		—		102,268		—
Corporate debt securities	50,644		—		—		50,644
Asset-backed securities:
Collateralized loan obligations, nonagency issued	293,687		—		—		293,687
Total available-for-sale securities	3,273,174		3,036		2,922,527		347,611
Residential loans held for sale	11,622		—		11,622		—
Derivative assets:
Interest rate swaps - nondesignated	46,577		—		46,577		—
Mortgage loan commitments	891		—		891		—
Forward sale contracts	384		—		384		—
Foreign exchange	50		—		50		—
Total derivative assets	47,902		—		47,902		—
Total fair value of assets (a)	$	3,332,698	$	3,036	$	2,982,051	$	347,611
Derivative liabilities:
Interest rate swaps - fair value hedges	11,574		—		11,574		—
Interest rate swaps - nondesignated	46,577		—		46,577		—
Foreign exchange	50		—		50		—
Total derivative liabilities	58,201		—		58,201		—
True-up liability	11,463		—		—		11,463
Total fair value of liabilities (a)	$	69,664	$	—	$	58,201	$	11,463
Nonrecurring fair value measurement
Mortgage servicing rights (b)	$	23,041	$	—	$	—	$	23,041
Impaired loans (c)	47,870		—		—		47,870
Other property (d)	10,018		—		—		10,018
Other real estate covered by loss share (e)	8,754		—		—		8,754
Total fair value	$	89,683	$	—	$	—	$	89,683

(a) - There were no transfers between levels 1, 2, or 3 of the fair value hierarchy during the year ended December 31, 2013.

(b) - MSRs with a recorded investment of $22.8 million were reduced by a specific valuation allowance totaling $0.3 million to a reported carrying value of $22.5 million resulting in a recovery of previously recognized expense of $2.3 million included in loans sales and servicing income in the year ended December 31, 2013.

(c) - Collateral dependent impaired loans with a recorded investment of $52.6 million were reduced by specific valuation allowance allocations totaling $4.8 million to a reported net carrying value of $47.9 million.

(d) - Amounts do not include assets held at cost at December 31, 2013. During the year ended December 31, 2013, the re-measurement of foreclosed assets at fair value subsequent to initial recognition resulted in losses of $1.4 million included in noninterest expense.

(e) - Amounts do not include assets held at cost at December 31, 2013. During the year ended December 31, 2013, the re-measurement of covered foreclosed assets at fair value subsequent to initial recognition resulted in losses $1.0 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		—
Nonagency	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 - nondesignated	58,769		—		58,769		—
Mortgage loan commitments	4,400		—		4,400		—
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		—
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 1,2, or 3 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 recovery of previously recognized expense of $1.0 million included in loan sales and servicing income 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, Assets Measured on a Recurring Basis, Unobservable Inputs

The changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2013 and 2012 are summarized as follows:



	Year Ended
	December 31, 2013						December 31, 2012
	Available-for-sale securities			True-up liability			Available-for-sale securities			True-up liability
Balance at beginning of period	$	49,661		$	12,259		$	87,539		$	11,551
Fair value of assets acquired	3,271			—			—			—
(Gains) losses included in earnings (a)	—			(796		)	—			708
Unrealized gains (losses) (b)	(2,635		)	—			5,282			—
Purchases	297,231			—			—			—
Sales	—			—			(40,520		)	—
Settlements	82			—			(2,640		)	—
Net transfers into (out of) Level 3	—			—			—			—
Balance at ending of period	$	347,610		$	11,463		$	49,661		$	12,259

(a) Reported in noninterest expense

(b) Reported in other comprehensive income (loss)

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 December 31, 2013 and 2012. The aggregate fair value, contractual balance and gain or loss on loans held for sale was as follows:



	December 31, 2013		December 31, 2012
Aggregate fair value carrying amount	$	11,622	$	23,683
Aggregate unpaid principal / contractual balance	11,438		22,765
Carrying amount over aggregate unpaid principal (a)	$	184	$	918

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

Fair Value, by Balance Sheet Groupings

The carrying amount and estimated fair value of the Corporation’s financial instruments that are carried at either fair value or cost as of December 31, 2013 and 2012 are shown in the tables below.



	December 31, 2013
	Carrying Amount		Fair Value
	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial assets:
Cash and due from banks	$	917,822	$	917,822	$	917,822	$	—	$	—
Available-for-sale securities	3,273,174		3,273,174		3,036		2,922,527		347,611
Held-to-maturity securities	2,935,688		2,824,240		—		2,824,240		—
Other securities	180,803		180,803		—		180,803		—
Loans held for sale	11,622		11,622		—		11,622		—
Net originated loans	10,116,903		10,017,722		—		—		10,017,722
Net acquired loans	3,494,874		3,627,275		—		—		3,627,275
Net covered loans and loss share receivable	547,943		547,943		—		—		547,943
Accrued interest receivable	52,929		52,929		—		52,929		—
Derivatives	47,902		47,902		—		47,902		—
Financial liabilities:
Deposits	$	19,533,601	$	19,532,368	$	—	$	19,532,368	$	—
Federal funds purchased and securities sold under agreements to repurchase	851,535		851,535		—		851,535		—
Wholesale borrowings	200,600		204,124		—		204,124		—
Long-term debt	324,428		319,711		—		319,711		—
Accrued interest payable	9,339		9,339		—		9,339		—
Derivatives	58,201		58,201		—		58,201		—



	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 noncovered 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		—

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References+ 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, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details