Fair value measurements (Tables)

6 Months Ended

Jun. 30, 2011

Fair value measurements (Tables) [Abstract]

Assets and liabilities measured at estimated fair value on a recurring basis


	Fair value
	measurements at
	June 30,
	2011		Level 1 (a)		Level 2 (a)		Level 3
			(in thousands)
Trading account assets	$	502,986		57,523		445,463		—
Investment securities available for sale:
U.S. Treasury and federal agencies		112,953		—		112,953		—
Obligations of states and political subdivisions		67,491		—		67,491		—
Mortgage-backed securities:
Government issued or guaranteed		3,023,018		—		3,023,018		—
Privately issued residential		1,306,202		—		—		1,306,202
Privately issued commercial		17,233		—		—		17,233
Collateralized debt obligations		61,601		—		—		61,601
Other debt securities		195,536		—		195,536		—
Equity securities		106,455		84,676		21,779		—

		4,890,489		84,676		3,420,777		1,385,036


Real estate loans held for sale		414,643		—		414,643		—
Other assets (b)		122,230		—		108,672		13,558

Total assets	$	5,930,348		142,199		4,389,555		1,398,594


Trading account liabilities	$	366,483		—		366,483		—
Other liabilities (b)		7,021		—		6,634		387

Total liabilities	$	373,504		—		373,117		387


	Fair value
	measurements at
	December 31,
	2010		Level 1 (a)		Level 2 (a)		Level 3
			(in thousands)
Trading account assets	$	523,834		53,032		470,802		—
Investment securities available for sale:
U.S. Treasury and federal agencies		63,434		—		63,434		—
Obligations of states and political subdivisions		60,425		—		60,425		—
Mortgage-backed securities:
Government issued or guaranteed		3,306,241		—		3,306,241		—
Privately issued residential		1,435,561		—		—		1,435,561
Privately issued commercial		22,407		—		—		22,407
Collateralized debt obligations		110,756		—		—		110,756
Other debt securities		298,900		—		298,900		—
Equity securities		115,768		106,872		8,896		—

		5,413,492		106,872		3,737,896		1,568,724


Real estate loans held for sale		544,567		—		544,567		—
Other assets (b)		114,666		—		111,839		2,827

Total assets	$	6,596,559		159,904		4,865,104		1,571,551


Trading account liabilities	$	333,222		—		333,222		—
Other liabilities (b)		3,607		—		3,024		583

Total liabilities	$	336,829		—		336,246		583


(a)		There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the three months and six months ended June 30, 2011 and 2010.

(b)		Comprised predominantly of interest rate swap agreements used for interest rate risk management (Level 2), commitments to sell real estate loans (Level 2) and commitments to originate real estate loans to be held for sale (Level 3).

Changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis


	Investment securities available for sale
	Privately issued			Privately issued
	residential			commercial			Collateralized			Other assets
	mortgage-backed			mortgage-backed			debt			and other
	securities			securities			obligations			liabilities
				(in thousands)
Balance — March 31, 2011	$	1,391,878		$	20,467		$	114,265		$	16,147

Total gains (losses) realized/unrealized:
Included in earnings		(24,530	)(a)		—			—			22,800	(b)
Included in other comprehensive income		38,471			(1,400	)		3,372			—
Purchases		—			—			50,790			—
Sales		—			—			(105,643	)		—
Settlements		(99,617	)		(1,834	)		(1,183	)		—
Transfers in and/or out of Level 3 (c)		—			—			—			(25,776	)


Balance — June 30, 2011	$	1,306,202		$	17,233		$	61,601		$	13,171


Changes in unrealized gains (losses) included in earnings related to assets still held at June 30, 2011	$	(24,530	)(a)	$	—		$	—		$	10,252	(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended June 30, 2010 were as follows:


	Investment securities available for sale
	Privately issued			Privately issued
	residential			commercial			Collateralized			Other			Other assets
	mortgage-backed			mortgage-backed			debt			debt			and other
	securities			securities			obligations			securities			liabilities
				(in thousands)
Balance — March 31, 2010	$	1,664,341		$	25,125		$	125,755		$	455		$	8,171

Total gains (losses) realized/unrealized:
Included in earnings		(7,896	)(a)		—			(2,491	)(a)		—			29,828	(b)
Included in other comprehensive income		40,794			4,021			(5,088	)		—			—
Settlements		(99,206	)		(2,503	)		(136	)		—			—
Transfers in and/or out of Level 3 (c)		—			—			—			(455	)		(17,156	)


Balance — June 30, 2010	$	1,598,033		$	26,643		$	118,040		$	—		$	20,843


Changes in unrealized gains (losses) included in earnings related to assets still held at June 30, 2010	$	(7,896	)(a)	$	—		$	(2,491	)(a)	$	—		$	20,097	(b)


	Investment securities available for sale
	Privately issued			Privately issued
	residential			commercial			Collateralized			Other assets
	mortgage-backed			mortgage-backed			debt			and other
	securities			securities			obligations			liabilities
				(in thousands)
Balance — January 1, 2011	$	1,435,561		$	22,407		$	110,756		$	2,244

Total gains (losses) realized/unrealized:
Included in earnings		(32,071	)(a)		—			—			43,244	(b)
Included in other comprehensive income		99,556			(1,482	)		7,206			—
Purchases		—			—			50,790			—
Sales		—			—			(105,643	)		—
Settlements		(196,844	)		(3,692	)		(1,508	)		—
Transfers in and/or out of Level 3 (c)		—			—			—			(32,317	)


Balance — June 30, 2011	$	1,306,202		$	17,233		$	61,601		$	13,171


Changes in unrealized gains (losses) included in earnings related to assets still held at June 30, 2011	$	(32,071	)(a)	$	—		$	—		$	13,139	(b)


	Investment securities available for sale
	Privately issued			Privately issued
	residential			commercial			Collateralized						Other assets
	mortgage-backed			mortgage-backed			debt			Other			and other
	securities			securities			obligations			debt securities			liabilities
	(in thousands)
Balance – January 1, 2010	$	2,064,904		$	25,166		$	115,346		$	420		$	(80	)

Total gains (losses) realized/unrealized:
Included in earnings		(34,343	)(a)		—			(2,846	)(a)		—			47,850	(b)
Included in other comprehensive income		115,248			6,094			5,807			35			—
Settlements		(192,528	)		(4,617	)		(267	)		—			—
Transfers in and/or out of Level 3 (c)		(355,248	)(d)		—			—			(455	)		(26,927	)


Balance – June 30, 2010	$	1,598,033		$	26,643		$	118,040		$	—		$	20,843


Changes in unrealized gains (losses) included in earnings related to assets still held at June 30, 2010	$	(34,343	)(a)	$	—		$	(2,846	)(a)	$	—		$	20,598	(b)


(a)		Reported as an other-than-temporary impairment loss in the consolidated statement of income or as gain (loss) on bank investment securities.

(b)		Reported as mortgage banking revenues in the consolidated statement of income and includes the fair value of commitment issuances and expirations.

(c)		The Company’s policy for transfers between fair value levels is to recognize the transfer as of the actual date of the event or change in circumstances that caused the transfer.

(d)		As a result of the Company’s adoption of new accounting rules governing the consolidation of variable interest entities, effective January 1, 2010 the Company derecognized $355 million of available-for-sale investment securities previously classified as Level 3 measurements.

Carrying amounts and estimated fair value for financial instrument assets(liabilities)


	June 30, 2011						December 31, 2010
	Carrying			Calculated			Carrying			Calculated
	amount			estimate			amount			estimate
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,332,915		$	1,332,915		$	933,755		$	933,755
Interest-bearing deposits at banks		2,275,450			2,275,450			101,222			101,222
Trading account assets		502,986			502,986			523,834			523,834
Agreements to resell securities		380,000			380,000			—			—
Investment securities		6,492,265			6,416,075			7,150,540			7,051,454
Loans and leases:
Commercial loans and leases		15,040,892			14,827,062			13,390,610			13,135,569
Commercial real estate loans		24,263,726			23,979,139			21,183,161			20,840,346
Residential real estate loans		6,970,921			6,809,347			5,928,056			5,699,028
Consumer loans		12,265,690			11,962,056			11,488,555			11,178,583
Allowance for credit losses		(907,589	)		—			(902,941	)		—

Loans and leases, net		57,633,640			57,577,604			51,087,441			50,853,526
Accrued interest receivable		212,357			212,357			202,182			202,182

Financial liabilities:
Noninterest-bearing deposits	$	(18,598,828	)	$	(18,598,828	)	$	(14,557,568	)	$	(14,557,568	)
Savings deposits and NOW accounts		(32,400,035	)		(32,400,035	)		(27,824,630	)		(27,824,630	)
Time deposits		(7,678,799	)		(7,713,421	)		(5,817,170	)		(5,865,779	)
Deposits at Cayman Islands office		(551,553	)		(551,553	)		(1,605,916	)		(1,605,916	)
Short-term borrowings		(567,144	)		(567,144	)		(947,432	)		(947,432	)
Long-term borrowings		(7,128,916	)		(7,280,296	)		(7,840,151	)		(7,937,397	)
Accrued interest payable		(89,182	)		(89,182	)		(71,954	)		(71,954	)
Trading account liabilities		(366,483	)		(366,483	)		(333,222	)		(333,222	)

Other financial instruments:
Commitments to originate real estate loans for sale	$	13,171		$	13,171		$	2,244		$	2,244
Commitments to sell real estate loans		(4,139	)		(4,139	)		12,178			12,178
Other credit-related commitments		(99,959	)		(99,959	)		(74,426	)		(74,426	)
Interest rate swap agreements used for interest rate risk management		106,177			106,177			96,637			96,637

- Definition

This item represents certain of the disclosures concerning 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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- Definition

This element represents the disclosure related to the fair value measurement of assets and liabilities which includes [financial] instruments measured at fair value that are classified in stockholders' equity. Such assets and liabilities may be measured on a recurring or nonrecurring basis. The disclosures which may be required or desired include: (1) for assets and liabilities measured on a recurring basis, disclosure may include: (a) the fair value measurements at the reporting date; (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); (c) for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), 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); (ii) purchases, sales, issuances, and settlements (net); (iii) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs); (d) the amount of the total gains or losses for the period in subparagraph (c) (i) above included in earnings (or changes in net assets) that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of income (or activities); (e) the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period and (2) for assets and liabilities that are measured at fair value on a nonrecurring basis (for example, impaired assets) disclosure may include, in addition to (a) above: (a) the reasons for the fair value measurements recorded; (b) the same as (b) above; (c) for fair value measurements using significant unobservable inputs (Level 3), a description of the inputs and the information used to develop the inputs; and (d) the valuation technique(s) used to measure fair value and a discussion of changes, if any, in the valuation technique(s) used to measure similar assets and/or liabilities in prior periods.

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