XML 95 R34.htm IDEA: XBRL DOCUMENT v2.4.0.8
Fair Value Measurement (Tables)
6 Months Ended
Jun. 30, 2014
Fair Value Disclosures [Abstract]  
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, 2014, December 31, 2013, and June 30, 2013:
 
 
 
 Fair Value by Hierarchy
(In thousands)
June 30, 2014
 
 Level 1
 
 Level 2
 
 Level 3
Recurring fair value measurement
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
Marketable equity securities
$
2,935

 
$
2,935

 
$
—

 
$
—

Non-marketable equity securities
3,281

 
—

 
10

 
3,271

U.S. States and political subdivisions
240,805

 
—

 
240,805

 
—

Residential mortgage-backed securities:
 
 
 
 
 
 
 
U.S. government agencies
1,018,174

 
—

 
1,018,174

 
—

Commercial mortgage-backed securities:
 
 
 
 
 
 
 
U.S. government agencies
85,698

 
—

 
85,698

 
—

Residential collateralized mortgage-backed securities:
 
 
 
 
 
 
 
U.S. government agencies
1,598,031

 
—

 
1,598,031

 
—

Non-agency
8

 
—

 
1

 
7

Commercial collateralized mortgage-backed securities:
 
 
 
 
 
 
 
U.S. government agencies
182,033

 
—

 
182,033

 
—

Corporate debt securities
53,490

 
—

 
—

 
53,490

Asset-backed securities:
 
 
 
 
 
 
 
Collateralized loan obligations
293,965

 
—

 
—

 
293,965

Total available for sale securities
3,478,420

 
2,935

 
3,124,752

 
350,733

Residential loans held for sale
21,632

 
—

 
21,632

 
—

Derivative assets:
 
 
 
 
 
 
 
Interest rate swaps - nondesignated
47,952

 
—

 
47,952

 
—

Mortgage loan commitments
2,491

 
—

 
2,491

 
—

Forward sale contracts
—

 
—

 
—

 
—

Foreign exchange
107

 
—

 
107

 
—

Total derivative assets
50,550

 
—

 
50,550

 
—

       Total fair value of assets (a)
$
3,550,602

 
$
2,935

 
$
3,196,934

 
$
350,733

Derivative liabilities:
 
 
 
 
 
 
 
Interest rate swaps - fair value hedges
$
8,989

 
$
—

 
$
8,989

 
$
—

Interest rate swaps - nondesignated
47,952

 
—

 
47,952

 
—

Forward sales contracts
545

 
—

 
545

 
—

Foreign exchange
48

 
—

 
48

 
—

Credit contracts
10

 
—

 
10

 
—

Total derivative liabilities
57,544

 
—

 
57,544

 
—

True-up liability
12,581

 
—

 
—

 
12,581

     Total fair value of liabilities (a)
$
70,125

 
$
—

 
$
57,544

 
$
12,581

Nonrecurring fair value measurement
 
 
 
 
 
 
 
Mortgage servicing rights (b)
$
21,987

 
$
—

 
$
—

 
$
21,987

Impaired loans (c)
56,006

 
—

 
—

 
56,006

Other property (d)
17,052

 
—

 
—

 
17,052

Other real estate covered by loss share (e)
22,782

 
—

 
—

 
22,782

Total fair value
$
117,827

 
$
—

 
$
—

 
$
117,827

 
 
 
 
 
 
 
 

(a) - There were no transfers between levels 1 and 2 of the fair value hierarchy during the three months ended June 30, 2014.
(b) - MSRs with a recorded investment of $22.2 million were reduced by a specific valuation allowance totaling $0.6 million to a reported carrying value of $21.6 million resulting in recognition of $0.1 million in expense included in loans sales and servicing income in the three months ended June 30, 2014.
(c) - Collateral dependent impaired loans with a recorded investment of $62.2 million were reduced by specific valuation allowance allocations totaling $6.2 million to a reported net carrying value of $56.0 million.
(d) - Amounts do not include assets held at cost at June 30, 2014. During the three months ended June 30, 2014, the re-measurement of foreclosed assets at fair value subsequent to initial recognition resulted in losses of $0.7 million included in noninterest expense.
(e) - Amounts do not include assets held at cost at June 30, 2014. During the three months ended June 30, 2014, 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
(In thousands)
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

 
—

Non-agency
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
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 in recoveries included in loans sales and servicing income in the year ended 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 of $1.0 million included in noninterest expense.

 
 
 
 Fair Value by Hierarchy
(In thousands)
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
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 - 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

 
—

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 recovery of a previously recognized expense of $0.8 million 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 of $0.6 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, 2014 and 2013 are summarized as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
(In thousands)
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
$
349,425

 
$
11,983

 
$
51,234

 
$
12,783

 
$
347,610

 
$
11,463

 
$
49,661

 
$
12,259

Fair value of assets acquired
—

 
—

 
3,271

 
—

 
—

 
—

 
3,271

 
—

(Gains) losses included in earnings (a)
—

 
598

 
—

 
(1,846
)
 
—

 
1,118

 
—

 
(1,322
)
Unrealized gains (losses) (b)
1,253

 
—

 
(1,923
)
 
—

 
3,021

 
—

 
(363
)
 
—

Purchases
—

 
—

 
159,916

 
—

 
—

 
—

 
159,916

 
—

Settlements
55

 
—

 
14

 
—

 
102

 
—

 
27

 
—

Balance at ending of period
$
350,733

 
$
12,581

 
$
212,512

 
$
10,937

 
$
350,733

 
$
12,581

 
$
212,512

 
$
10,937

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a) Reported in "Other expense"
(b) Reported in "Other comprehensive income (loss)"

Summary of Change in fair value carrying amount of residential mortgages
The aggregate fair value, contractual balance and gain or loss on loans held for sale was as follows:
(In thousands)
June 30, 2014
 
December 31, 2013
 
June 30, 2013
Aggregate fair value carrying amount
$
21,632

 
$
11,622

 
$
22,855

Aggregate unpaid principal / contractual balance
20,886

 
11,438

 
23,220

Carrying amount over aggregate unpaid principal (a)
$
746

 
$
184

 
$
(365
)
 
 
 
 
 
 
(a) These changes are included in "Loan sales and servicing income" in the Consolidated Statements of Income.

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, 2014, December 31, 2013, and June 30, 2013 are shown in the tables below.
 
June 30, 2014
 
Carrying
Amount
 
Fair Value
(In thousands)
 
Total
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
642,570

 
$
642,570

 
$
642,570

 
$
—

 
$
—

Available-for-sale securities
3,478,420

 
3,478,420

 
2,935

 
3,124,752

 
350,733

Held-to-maturity securities
3,052,118

 
3,001,866

 
—

 
3,001,866

 
—

Other securities
148,433

 
148,433

 
—

 
148,433

 
—

Loans held for sale
21,632

 
21,632

 
—

 
21,632

 
—

Net originated loans
11,375,243

 
11,458,318

 
—

 
—

 
11,458,318

Net acquired loans
3,018,810

 
3,166,228

 
—

 
—

 
3,166,228

Net covered loans and loss share receivable
433,538

 
433,538

 
—

 
—

 
433,538

Accrued interest receivable
63,172

 
63,172

 
—

 
63,172

 
—

       Derivatives
50,550

 
50,550

 
—

 
50,550

 
—

Financial liabilities:
 
 
 
 
 
 
 
 
 
Deposits
$
19,298,396

 
$
19,300,842

 
$
—

 
$
19,300,842

 
$
—

Federal funds purchased and securities sold under agreements to repurchase
1,218,855

 
1,218,855

 
—

 
1,218,855

 
—

Wholesale borrowings
649,021

 
652,615

 
—

 
652,615

 
—

Long-term debt
324,433

 
335,757

 
—

 
335,757

 
—

Accrued interest payable
8,311

 
8,311

 
—

 
8,311

 
—

Derivatives
57,544

 
57,544

 
—

 
57,544

 
—

 
 
 
 
 
 
 
 
 
 


 
December 31, 2013
 
Carrying
Amount
 
Fair Value
(In thousands)
 
Total
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
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

 
—

 
 
 
 
 
 
 
 
 
 

 
June 30, 2013
 
Carrying
Amount
 
Fair Value
(In thousands)
 
Total
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
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
4,250,362

 
4,250,362

 
 
 
 
 
4,250,362

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

 
—