Fair value measurements (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

The following tables present assets and liabilities at September 30, 2016 and December 31, 2015 measured at estimated fair value on a recurring basis:

	Fair value measurements at September 30, 2016		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	488,588		50,699		437,889		—
Investment securities available for sale:
U.S. Treasury and federal agencies		726,401		—		726,401		—
Obligations of states and political subdivisions		5,015		—		5,015		—
Mortgage-backed securities:
Government issued or guaranteed		10,930,662		—		10,930,662		—
Privately issued		51		—		—		51
Other debt securities		118,226		—		118,226		—
Equity securities		82,212		62,546		19,666		—
		11,862,567		62,546		11,799,970		51
Real estate loans held for sale		704,984		—		704,984		—
Other assets (b)		51,919		—		22,068		29,851
Total assets	$	13,108,058		113,245		12,964,911		29,902
Trading account liabilities	$	292,713		—		292,713		—
Other liabilities (b)		12,434		—		12,383		51
Total liabilities	$	305,147		—		305,096		51

	Fair value measurements at December 31, 2015		Level 1(a)		Level 2(a)		Level 3
	(in thousands)
Trading account assets	$	273,783		56,763		217,020		—
Investment securities available for sale:
U.S. Treasury and federal agencies		299,997		—		299,997		—
Obligations of states and political subdivisions		6,028		—		6,028		—
Mortgage-backed securities:
Government issued or guaranteed		11,686,628		—		11,686,628		—
Privately issued		74		—		—		74
Collateralized debt obligations		47,393		—		—		47,393
Other debt securities		118,880		—		118,880		—
Equity securities		83,671		65,178		18,493		—
		12,242,671		65,178		12,130,026		47,467
Real estate loans held for sale		392,036		—		392,036		—
Other assets (b)		56,551		—		46,269		10,282
Total assets	$	12,965,041		121,941		12,785,351		57,749
Trading account liabilities	$	160,745		—		160,745		—
Other liabilities (b)		1,905		—		1,502		403
Total liabilities	$	162,650		—		162,247		403

(a) There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the nine months ended September 30, 2016 and the year ended December 31, 2015.

(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 Recurring Basis

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended September 30, 2016 were as follows:

	Investment securities available forsale
	Privately issued mortgage-backed securities			Collateralized debt obligations				Other assets and other liabilities
	(in thousands)
Balance - June 30, 2016	$	57			43,305				21,383
Total gains (losses) realized/unrealized:
Included in earnings		—			28,475				45,534		(b)
Included in other comprehensive income		—			(15,050	)	(c)		—
Sales		—			(56,730	)			—
Settlements		(6	)		—				—
Transfers in and/or out of Level 3 (a)		—			—				(37,117	)	(d)
Balance - September 30, 2016	$	51			—				29,800
Changes in unrealized gains included in earnings     related to assets still held at September 30, 2016	$	—			—				27,663		(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended September 30, 2015 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations				Other assets and other liabilities
	(in thousands)
Balance - June 30, 2015	$	88			50,483				11,206
Total gains (losses) realized/unrealized:
Included in earnings		—			—			21,709			(b)
Included in other comprehensive income		—			(472	)	(c)		—
Settlements		(6	)		(135	)			—
Transfers in and/or out of Level 3 (a)		—			—				(15,268	)	(d)
Balance - September 30, 2015	$	82			49,876				17,647
Changes in unrealized gains included in earnings     related to assets still held at September 30, 2015	$	—			—				15,488		(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 2016 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations				Other assets and other liabilities
	(in thousands)
Balance – January 1, 2016	$	74			47,393				9,879
Total gains (losses) realized/unrealized:
Included in earnings		—			28,475				104,862		(b)
Included in other comprehensive income		—			(18,268	)	(c)		—
Sales		—			(56,730	)			—
Settlements		(23	)		(870	)			—
Transfers in and/or out of Level 3 (a)		—			—				(84,941	)	(d)
Balance – September 30, 2016	$	51			—				29,800
Changes in unrealized gains included in earnings     related to assets still held at September 30, 2016	$	—			—				29,288		(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 2015 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations				Other assets and other liabilities
	(in thousands)
Balance - January 1, 2015	$	103			50,316				17,347
Total gains (losses) realized/unrealized:
Included in earnings		—			—			67,611			(b)
Included in other comprehensive income		—		5,153			(c)		—
Settlements		(21	)		(5,593	)			—
Transfers in and/or out of Level 3 (a)		—			—				(67,311	)	(d)
Balance - September 30, 2015	$	82			49,876				17,647
Changes in unrealized gains included in earnings     related to assets still held at September 30, 2015	$	—			—				15,965		(b)

(a) 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.

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

(c) Reported as net unrealized gains (losses) on investment securities in the consolidated statement of comprehensive income.

(d) Transfers out of Level 3 consist of interest rate locks transferred to closed loans.

Quantitative Information Related to Significant Unobservable Inputs

The following tables present quantitative information about significant unobservable inputs used in the fair value measurements for certain Level 3 assets and liabilities at September 30, 2016 and December 31, 2015:

	Fair value at September 30, 2016		Valuation technique	Unobservable input/assumptions		Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage-backed securities	$	51	Two independent pricing quotes		—		—
Net other assets (liabilities) (a)		29,800	Discounted cash flow	Commitment expirations		0%-92% (26%)

	Fair value at December 31, 2015		Valuation technique	Unobservable input/assumptions		Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage-backed securities	$	74	Two independent pricing quotes		—		—
Collateralized debt obligations		47,393	Discounted cash flow	Probability of default		10%-56% (31%)
				Loss severity			100%
Net other assets (liabilities) (a)		9,879	Discounted cash flow	Commitment expirations		0%-60% (39%)

(a) Other Level 3 assets (liabilities) consist of commitments to originate real estate loans.

Carrying Amounts and Estimated Fair Value for Financial Instrument Assets (Liabilities)

The carrying amounts and estimated fair value for financial instrument assets (liabilities) are presented in the following table:

	September 30, 2016
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,332,202			1,332,202			1,258,882		73,320			—
Interest-bearing deposits at banks		10,777,636			10,777,636			—		10,777,636			—
Trading account assets		488,588			488,588			50,699		437,889			—
Investment securities		14,733,574			14,779,721			62,546		14,591,141			126,034
Loans and leases:
Commercial loans and leases		21,917,163			21,563,190			—		—			21,563,190
Commercial real estate loans		32,078,762			31,944,341			—		290,347			31,653,994
Residential real estate loans		23,584,420			23,780,993			—		4,607,044			19,173,949
Consumer loans		12,066,147			12,009,873			—		—			12,009,873
Allowance for credit losses		(976,121	)		—			—		—			—
Loans and leases, net		88,670,371			89,298,397			—		4,897,391			84,401,006
Accrued interest receivable		311,414			311,414			—		311,414			—
Financial liabilities:
Noninterest-bearing deposits	$	(33,127,627	)		(33,127,627	)		—		(33,127,627	)		—
Savings and interest-checking deposits		(53,065,030	)		(53,065,030	)		—		(53,065,030	)		—
Time deposits		(11,721,005	)		(11,829,119	)		—		(11,829,119	)		—
Deposits at Cayman Islands office		(223,183	)		(223,183	)		—		(223,183	)		—
Short-term borrowings		(213,846	)		(213,846	)		—		(213,846	)		—
Long-term borrowings		(10,211,160	)		(10,277,155	)		—		(10,277,155	)		—
Accrued interest payable		(76,230	)		(76,230	)		—		(76,230	)		—
Trading account liabilities		(292,713	)		(292,713	)		—		(292,713	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	29,800			29,800			—		—			29,800
Commitments to sell real estate loans		(11,375	)		(11,375	)		—		(11,375	)		—
Other credit-related commitments		(124,499	)		(124,499	)		—		—			(124,499	)
Interest rate swap agreements used for interest     rate risk management		21,060			21,060			—		21,060			—

	December 31, 2015
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
				(in thousands)
Financial assets:
Cash and cash equivalents	$	1,368,040			1,368,040			1,276,678		91,362			—
Interest-bearing deposits at banks		7,594,350			7,594,350			—		7,594,350			—
Trading account assets		273,783			273,783			56,763		217,020			—
Investment securities		15,656,439			15,660,877			65,178		15,406,404			189,295
Loans and leases:
Commercial loans and leases		20,422,338			20,146,201			—		—			20,146,201
Commercial real estate loans		29,197,311			29,044,244			—		38,774			29,005,470
Residential real estate loans		26,270,103			26,267,771			—		4,727,816			21,539,955
Consumer loans		11,599,747			11,550,270			—		—			11,550,270
Allowance for credit losses		(955,992	)		—			—		—			—
Loans and leases, net		86,533,507			87,008,486			—		4,766,590			82,241,896
Accrued interest receivable		306,496			306,496			—		306,496			—
Financial liabilities:
Noninterest-bearing deposits	$	(29,110,635	)		(29,110,635	)		—		(29,110,635	)		—
Savings and interest-checking deposits		(49,566,644	)		(49,566,644	)		—		(49,566,644	)		—
Time deposits		(13,110,392	)		(13,135,042	)		—		(13,135,042	)		—
Deposits at Cayman Islands office		(170,170	)		(170,170	)		—		(170,170	)		—
Short-term borrowings		(2,132,182	)		(2,132,182	)		—		(2,132,182	)		—
Long-term borrowings		(10,653,858	)		(10,639,556	)		—		(10,639,556	)		—
Accrued interest payable		(85,145	)		(85,145	)		—		(85,145	)		—
Trading account liabilities		(160,745	)		(160,745	)		—		(160,745	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	9,879			9,879			—		—			9,879
Commitments to sell real estate loans		875			875			—		875			—
Other credit-related commitments		(122,334	)		(122,334	)		—		—			(122,334	)
Interest rate swap agreements used for interest rate risk management		43,892			43,892			—		43,892			—