XML 71 R52.htm IDEA: XBRL DOCUMENT v3.6.0.2
Fair value measurements (Tables)
 12 Months Ended
Dec. 31, 2016
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

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

 

 

 

Fair Value Measurements at December 31, 2016

 

 

Level 1 (a)

 

 

Level 2 (a)

 

 

Level 3

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trading account assets

 

$

323,867

 

 

$

46,135

 

 

$

277,732

 

 

$

—

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

1,902,544

 

 

 

—

 

 

 

1,902,544

 

 

 

—

 

Obligations of states and political

   subdivisions

 

 

3,641

 

 

 

—

 

 

 

3,641

 

 

 

—

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed

 

 

10,954,861

 

 

 

—

 

 

 

10,954,861

 

 

 

—

 

Privately issued

 

 

44

 

 

 

—

 

 

 

—

 

 

 

44

 

Other debt securities

 

 

118,516

 

 

 

—

 

 

 

118,516

 

 

 

—

 

Equity securities

 

 

352,466

 

 

 

301,711

 

 

 

50,755

 

 

 

—

 

 

 

 

13,332,072

 

 

 

301,711

 

 

 

13,030,317

 

 

 

44

 

Real estate loans held for sale

 

 

1,056,180

 

 

 

—

 

 

 

1,056,180

 

 

 

—

 

Other assets(b)

 

 

58,351

 

 

 

—

 

 

 

50,291

 

 

 

8,060

 

Total assets

 

$

14,770,470

 

 

$

347,846

 

 

$

14,414,520

 

 

$

8,104

 

Trading account liabilities

 

$

174,376

 

 

$

—

 

 

$

174,376

 

 

$

—

 

Other liabilities(b)

 

 

2,481

 

 

 

—

 

 

 

1,746

 

 

 

735

 

Total liabilities

 

$

176,857

 

 

$

—

 

 

$

176,122

 

 

$

735

 

 

 

 

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 years ended December 31, 2016 and 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 year ended December 31, 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

 

 

—

 

 

 

30,041

 

(c)

 

 

110,937

 

(b)

Included in other comprehensive income

 

 

—

 

 

 

(18,268

)

(d)

 

 

—

 

 

Sales

 

 

—

 

 

 

(58,296

)

 

 

 

—

 

 

Settlements

 

 

(30

)

 

 

(870

)

 

 

 

—

 

 

Transfers out of Level 3(a)

 

 

—

 

 

 

—

 

 

 

 

(113,491

)

(e)

Balance — December 31, 2016

 

$

44

 

 

$

—

 

 

 

$

7,325

 

 

Changes in unrealized gains included in

   earnings related to assets still held at

   December 31, 2016

 

$

—

 

 

$

—

 

 

 

$

7,256

 

(b)

 

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the year ended December 31, 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 realized/unrealized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in earnings

 

 

—

 

 

 

—

 

 

 

 

87,061

 

(b)

Included in other comprehensive income

 

 

—

 

 

 

3,254

 

(d)

 

 

—

 

 

Settlements

 

 

(29

)

 

 

(6,177

)

 

 

 

—

 

 

Transfers out of Level 3(a)

 

 

—

 

 

 

—

 

 

 

 

(94,529

)

(e)

Balance — December 31, 2015

 

$

74

 

 

$

47,393

 

 

 

$

9,879

 

 

Changes in unrealized gains included in

   earnings related to assets still held at

   December 31, 2015

 

$

—

 

 

$

—

 

 

 

$

8,850

 

(b)

 

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the year ended December 31, 2014 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, 2014

 

$

1,850

 

 

$

63,083

 

 

 

$

3,941

 

 

Total gains realized/unrealized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Included in earnings

 

 

—

 

 

 

—

 

 

 

 

83,417

 

(b)

Included in other comprehensive income

 

 

271

 

(d)

 

8,209

 

(d)

 

 

—

 

 

Settlements

 

 

(2,018

)

 

 

(20,976

)

 

 

 

—

 

 

Transfers out of Level 3(a)

 

 

—

 

 

 

—

 

 

 

 

(70,011

)

(e)

Balance – December 31, 2014

 

$

103

 

 

$

50,316

 

 

 

$

17,347

 

 

Changes in unrealized gains included in

   earnings related to assets still held at

   December 31, 2014

 

$

—

 

 

$

—

 

 

 

$

18,196

 

(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 gain (loss) on bank investment securities in the consolidated statement of income.

(d)

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

(e)

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 Level 3 assets and liabilities at December 31, 2016 and 2015:

 

 

 

Fair Value at

December 31,

2016

 

 

Valuation

Technique

 

Unobservable

Inputs/Assumptions

 

 

Range

(Weighted-

Average)

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring fair value measurements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Privately issued mortgage-backed

   securities

 

$

44

 

 

Two independent pricing quotes

 

 

—

 

 

 

—

 

Net other assets (liabilities)(a)

 

 

7,325

 

 

Discounted cash flow

 

Commitment expirations

 

 

0%-77% (30%)

 

 

 

Fair Value at

December 31,

2015

 

 

Valuation

Technique

 

Unobservable

Inputs/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:

 

 

 

December 31, 2016

 

 

 

Carrying

Amount

 

 

Estimated

Fair Value

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

 

(In thousands)

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,320,549

 

 

 

1,320,549

 

 

 

1,249,654

 

 

 

70,895

 

 

 

—

 

Interest-bearing deposits at banks

 

 

5,000,638

 

 

 

5,000,638

 

 

 

—

 

 

 

5,000,638

 

 

 

—

 

Trading account assets

 

 

323,867

 

 

 

323,867

 

 

 

46,135

 

 

 

277,732

 

 

 

—

 

Investment securities

 

 

16,250,468

 

 

 

16,244,412

 

 

 

301,711

 

 

 

15,821,176

 

 

 

121,525

 

Loans and leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial loans and leases

 

 

22,610,047

 

 

 

22,239,428

 

 

 

—

 

 

 

—

 

 

 

22,239,428

 

Commercial real estate loans

 

 

33,506,394

 

 

 

33,129,428

 

 

 

—

 

 

 

642,590

 

 

 

32,486,838

 

Residential real estate loans

 

 

22,590,912

 

 

 

22,638,167

 

 

 

—

 

 

 

4,912,488

 

 

 

17,725,679

 

Consumer loans

 

 

12,146,063

 

 

 

12,061,590

 

 

 

—

 

 

 

—

 

 

 

12,061,590

 

Allowance for credit losses

 

 

(988,997

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loans and leases, net

 

 

89,864,419

 

 

 

90,068,613

 

 

 

—

 

 

 

5,555,078

 

 

 

84,513,535

 

Accrued interest receivable

 

 

308,805

 

 

 

308,805

 

 

 

—

 

 

 

308,805

 

 

 

—

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

(32,813,896

)

 

 

(32,813,896

)

 

 

—

 

 

 

(32,813,896

)

 

 

—

 

Savings and interest-checking

   deposits

 

 

(52,346,207

)

 

 

(52,346,207

)

 

 

—

 

 

 

(52,346,207

)

 

 

—

 

Time deposits

 

 

(10,131,846

)

 

 

(10,222,585

)

 

 

—

 

 

 

(10,222,585

)

 

 

—

 

Deposits at Cayman Islands office

 

 

(201,927

)

 

 

(201,927

)

 

 

—

 

 

 

(201,927

)

 

 

—

 

Short-term borrowings

 

 

(163,442

)

 

 

(163,442

)

 

 

—

 

 

 

(163,442

)

 

 

—

 

Long-term borrowings

 

 

(9,493,835

)

 

 

(9,473,844

)

 

 

—

 

 

 

(9,473,844

)

 

 

—

 

Accrued interest payable

 

 

(75,172

)

 

 

(75,172

)

 

 

—

 

 

 

(75,172

)

 

 

—

 

Trading account liabilities

 

 

(174,376

)

 

 

(174,376

)

 

 

—

 

 

 

(174,376

)

 

 

—

 

Other financial instruments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments to originate real

   estate loans for sale

 

$

7,325

 

 

 

7,325

 

 

 

—

 

 

 

—

 

 

 

7,325

 

Commitments to sell real estate

   loans

 

 

36,653

 

 

 

36,653

 

 

 

—

 

 

 

36,653

 

 

 

—

 

Other credit-related commitments

 

 

(136,295

)

 

 

(136,295

)

 

 

—

 

 

 

—

 

 

 

(136,295

)

Interest rate swap agreements used

   for interest rate risk management

 

 

11,892

 

 

 

11,892

 

 

 

—

 

 

 

11,892

 

 

 

—

 

 

 

 

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

 

 

—