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Fair Value of Assets & Liabilities (Tables)
9 Months Ended
Sep. 30, 2018
Fair Value Disclosures [Abstract]  
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis
The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of September 30, 2018: 
 
 
September 30, 2018
(Dollars in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
Trading securities—fixed income:
 
 
 
 
 
 
 
 
U.S. treasuries
 
$
—

 
$
121,490

 
$
—

 
$
121,490

Government agency issued MBS
 
—

 
235,403

 
—

 
235,403

Government agency issued CMO
 
—

 
568,344

 
—

 
568,344

Other U.S. government agencies
 
—

 
43,642

 
—

 
43,642

States and municipalities
 
—

 
54,669

 
—

 
54,669

Corporates and other debt
 
—

 
866,128

 
—

 
866,128

Equity, mutual funds, and other
 
—

 
39,723

 
—

 
39,723

Total trading securities—fixed income
 
—

 
1,929,399

 
—

 
1,929,399

Trading securities—mortgage banking
 
—

 
—

 
1,592

 
1,592

Loans held-for-sale (elected fair value)
 
—

 
182

 
16,236

 
16,418

Securities available-for-sale:
 
 
 
 
 
 
 
 
U.S. treasuries
 
—

 
98

 
—

 
98

Government agency issued MBS
 
—

 
2,414,877

 
—

 
2,414,877

Government agency issued CMO
 
—

 
1,991,184

 
—

 
1,991,184

Other U.S. government agencies
 
—

 
113,088

 
—

 
113,088

States and municipalities
 
—

 
23,701

 
—

 
23,701

Corporates and other debt
 
—

 
55,074

 
—

 
55,074

Interest-only strips (elected fair value)
 
—

 
—

 
10,361

 
10,361

Total securities available-for-sale
 
—

 
4,598,022

 
10,361

 
4,608,383

Other assets:
 
 
 
 
 
 
 
 
Deferred compensation mutual funds
 
40,912

 
—

 
—

 
40,912

Equity, mutual funds, and other
 
22,141

 
—

 
—

 
22,141

Derivatives, forwards and futures
 
20,013

 
—

 
—

 
20,013

Derivatives, interest rate contracts
 
—

 
34,333

 
—

 
34,333

Derivatives, other
 
—

 
130

 
—

 
130

Total other assets
 
83,066

 
34,463

 
—

 
117,529

Total assets
 
$
83,066

 
$
6,562,066

 
$
28,189

 
$
6,673,321

Trading liabilities—fixed income:
 
 
 
 
 
 
 
 
U.S. treasuries
 
$
—

 
$
574,897

 
$
—

 
$
574,897

States and municipalities
 
—

 
110

 
—

 
110

Corporates and other debt
 
—

 
164,687

 
—

 
164,687

Total trading liabilities—fixed income
 
—

 
739,694

 
—

 
739,694

Other liabilities:
 
 
 
 
 
 
 
 
Derivatives, forwards and futures
 
18,770

 
—

 
—

 
18,770

Derivatives, interest rate contracts
 
—

 
117,236

 
—

 
117,236

Derivatives, other
 
—

 
106

 
34,212

 
34,318

Total other liabilities
 
18,770

 
117,342

 
34,212

 
170,324

Total liabilities
 
$
18,770

 
$
857,036

 
$
34,212

 
$
910,018


The following table presents the balance of assets and liabilities measured at fair value on a recurring basis as of December 31, 2017: 
 
 
December 31, 2017
(Dollars in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
Trading securities—fixed income:
 
 
 
 
 
 
 
 
U.S. treasuries
 
$
—

 
$
128,995

 
$
—

 
$
128,995

Government agency issued MBS
 
—

 
227,038

 
—

 
227,038

Government agency issued CMO
 
—

 
275,014

 
—

 
275,014

Other U.S. government agencies
 
—

 
54,699

 
—

 
54,699

States and municipalities
 
—

 
34,573

 
—

 
34,573

Corporates and other debt
 
—

 
693,877

 
—

 
693,877

Equity, mutual funds, and other
 
—

 
(2
)
 
—

 
(2
)
Total trading securities—fixed income
 
—

 
1,414,194

 
—

 
1,414,194

Trading securities—mortgage banking
 
—

 
—

 
2,151

 
2,151

Loans held-for-sale
 
—

 
1,955

 
18,926

 
20,881

Securities available-for-sale:
 
 
 
 
 
 
 
 
U.S. treasuries
 
—

 
99

 
—

 
99

Government agency issued MBS
 
—

 
2,577,376

 
—

 
2,577,376

Government agency issued CMO
 
—

 
2,269,858

 
—

 
2,269,858

Corporates and other debt
 
—

 
55,782

 
—

 
55,782

Interest-only strips
 
—

 
—

 
1,270

 
1,270

Equity, mutual funds, and other
 
27,017

 
—

 
—

 
27,017

Total securities available-for-sale
 
27,017

 
4,903,115

 
1,270

 
4,931,402

Other assets:
 
 
 
 
 
 
 
 
Deferred compensation assets
 
39,822

 
—

 
—

 
39,822

Derivatives, forwards and futures
 
10,161

 
—

 
—

 
10,161

Derivatives, interest rate contracts
 
—

 
71,473

 
—

 
71,473

Total other assets
 
49,983

 
71,473

 
—

 
121,456

Total assets
 
$
77,000

 
$
6,390,737

 
$
22,347

 
$
6,490,084

Trading liabilities—fixed income:
 
 
 
 
 
 
 
 
U.S. treasuries
 
$
—

 
$
506,679

 
$
—

 
$
506,679

Corporates and other debt
 
—

 
131,836

 
—

 
131,836

Total trading liabilities—fixed income
 
—

 
638,515

 
—

 
638,515

Other liabilities:
 
 
 
 
 
 
 
 
Derivatives, forwards and futures
 
9,535

 
—

 
—

 
9,535

Derivatives, interest rate contracts
 
—

 
69,842

 
—

 
69,842

Derivatives, other
 
—

 
39

 
5,645

 
5,684

Total other liabilities
 
9,535

 
69,881

 
5,645

 
85,061

Total liabilities
 
$
9,535

 
$
708,396

 
$
5,645

 
$
723,576

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 for the three months ended September 30, 2018 and 2017, on a recurring basis are summarized as follows: 
 
 
Three Months Ended September 30, 2018
 
 
(Dollars in thousands)
 
Trading
securities
 
 
 
Interest- only strips- AFS
 
 
 
Loans held-
for-sale
 
 
 
Net  derivative
liabilities
 
 
Balance on July 1, 2018
 
$
1,724

 
 
 
$
5,787

 
 
 
$
16,718

 
 
 
$
(9,425
)
 
 
Total net gains/(losses) included in:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
33

 
 
 
(456
)
 
 
 
277

 
 
 
(529
)
 
 
Purchases
 
—

 
 
 
—

 
 
 
—

 
 
 
(28,100
)
 
(e)
Sales
 
—

 
 
 
(2,034
)
 
 
 
—

 
 
 
—

 
 
Settlements
 
(165
)
 
 
 
—

 
 
 
(759
)
 
 
 
3,842

 
 
Net transfers into/(out of) Level 3
 
—

 
 
 
7,064

 
(b)
 
—

 
(d)
 
—

 
 
Balance on September 30, 2018
 
$
1,592

 
 
 
$
10,361

 
 
 
$
16,236

 
 
 
$
(34,212
)
 
 
Net unrealized gains/(losses) included in net income
 
$
(3
)
 
(a)
 
$
(215
)
 
(c)
 
$
277

 
(a)
 
$
(530
)
 
(f) 
 
 
 
Three Months Ended September 30, 2017
 
 
(Dollars in thousands)
 
Trading
securities
 
 
 
Interest-only strips-AFS
 
 
 
Loans  held-for-sale
 
 
 
Net  derivative
liabilities
 
 
Balance on July 1, 2017
 
$
2,464

 
 
 
$
1,163

 
 
 
$
20,587

 
 
 
$
(5,700
)
 
 
Total net gains/(losses) included in:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
92

 
 
 
(160
)
 
 
 
390

 
 
 
(129
)
 
 
Purchases
 
—

 
 
 
—

 
 
 
43

 
 
 
—

 
 
Settlements
 
(251
)
 
 
 
—

 
 
 
(939
)
 
 
 
299

 
 
Net transfers into/(out of) Level 3
 
—

 
 
 
2,120

 
(b)
 
—

 
(d) 
 
—

 
 
Balance on September 30, 2017
 
$
2,305

 
 
 
$
3,123

 
 
 
$
20,081

 
 
 
$
(5,530
)
 
 
Net unrealized gains/(losses) included in net income
 
$
62

 
(a) 
 
$
(72
)
 
(c)
 
$
390

 
(a) 
 
$
(129
)
 
(f) 
(a)
Primarily included in mortgage banking income on the Consolidated Condensed Statements of Income.
(b)
Transfers into interest-only strips - AFS level 3 measured on a recurring basis reflect movements from loans held-for-sale (Level 2 nonrecurring).
(c)
Primarily included in fixed income on the Consolidated Condensed Statements of Income.
(d)
Transfers out of loans held-for-sale level 3 measured on a recurring basis generally reflect movements into OREO (level 3 nonrecurring).
(e)
Increase related to newly executed Visa-related derivatives, see Note 14- Derivatives for additional discussion.
(f)
Included in Other expense.







Changes in Recurring Level 3 Fair Value Measurements
The changes in Level 3 assets and liabilities measured at fair value for the nine months ended September 30, 2018 and 2017, on a recurring basis are summarized as follows: 
 
 
Nine Months Ended September 30, 2018
 
 
(Dollars in thousands)
 
Trading
securities
 
 
 
Interest- only strips- AFS
 
 
 
Loans held-
for-sale
 
 
 
Net  derivative
liabilities
 
 
Balance on January 1, 2018
 
$
2,151

 
 
 
$
1,270

 
 
 
$
18,926

 
 
 
$
(5,645
)
 
 
Total net gains/(losses) included in:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
173

 
 
 
840

 
 
 
986

 
 
 
(4,904
)
 
 
Purchases
 
—

 
 
 
—

 
 
 
62

 
 
 
(28,100
)
 
(e)
Sales
 
—

 
 
 
(11,227
)
 
 
 
—

 
 
 
—

 
 
Settlements
 
(732
)
 
 
 
—

 
 
 
(3,382
)
 
 
 
4,437

 
 
Net transfers into/(out of) Level 3
 
—

 
 
 
19,478

 
(b)
 
(356
)
 
(d)
 
—

 
 
Balance on September 30, 2018
 
$
1,592

 
 
 
$
10,361

 
 
 
$
16,236

 
 
 
$
(34,212
)
 
 
Net unrealized gains/(losses) included in net income
 
$
59

 
(a)
 
$
(279
)
 
(c)
 
$
986

 
(a)
 
$
(4,904
)
 
(f) 
 
 
 
Nine Months Ended September 30, 2017
 
 
(Dollars in thousands)
 
Trading
securities
 
 
 
Interest-only-strips- AFS
 
 
 
Loans held-
for-sale
 
 
 
Net  derivative
liabilities
 
 
Balance on January 1, 2017
 
$
2,573

 
 
 
$
—

 
 
 
$
21,924

 
 
 
$
(6,245
)
 
 
Total net gains/(losses) included in:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income
 
380

 
 
 
107

 
 
 
1,722

 
 
 
(179
)
 
 
Purchases
 
—

 
 
 
1,413

 
 
 
118

 
 
 
—

 
 
Sales
 
—

 
 
 
(3,291
)
 
 
 
—

 
 
 
—

 
 
Settlements
 
(648
)
 
 
 
—

 
 
 
(3,340
)
 
 
 
894

 
 
Net transfers into/(out of) Level 3
 
—

 
 
 
4,894

 
(b) 
 
(343
)
 
(d)
 
—

 
 
Balance on September 30, 2017
 
$
2,305

 
 
 
$
3,123

 
 
 
$
20,081

 
 
 
$
(5,530
)
 
 
Net unrealized gains/(losses) included in net income
 
$
264

 
(a) 
 
$
(122
)
 
(c)
 
$
1,722

 
(a)
 
$
(179
)
 
(f) 
(a)
Primarily included in mortgage banking income on the Consolidated Condensed Statements of Income.
(b)
Transfers into interest-only strips - AFS level 3 measured on a recurring basis reflect movements from loans held-for-sale (Level 2 nonrecurring).
(c)
Primarily included in fixed income on the Consolidated Condensed Statements of Income.
(d)
Transfers out of loans held-for-sale level 3 measured on a recurring basis generally reflect movements into OREO (level 3 nonrecurring).
(e)
Increase related to newly executed Visa-related derivatives, see Note 14- Derivatives for additional discussion.
(f)
Included in Other expense.
Nonrecurring Fair Value Measurements
For assets measured at fair value on a nonrecurring basis which were still held on the balance sheet at September 30, 2018, and December 31, 2017, respectively, the following tables provide the level of valuation assumptions used to determine each adjustment and the related carrying value.
 
 
 
Carrying value at September 30, 2018
(Dollars in thousands)
 
Level 1
 
Level 2
 
Level 3
 
Total
Loans held-for-sale—SBAs and USDA
 
$
—

 
$
618,142

 
$
1,018

 
$
619,160

Loans held-for-sale—first mortgages
 
—

 
—

 
542

 
542

Loans, net of unearned income (a)
 
—

 
—

 
26,995

 
26,995

OREO (b)
 
—

 
—

 
25,726

 
25,726

Other assets (c)
 
—

 
—

 
23,329

 
23,329

 
 
 
Carrying value at December 31, 2017
(Dollars in thousands) 
 
Level 1
 
Level 2
 
Level 3
 
Total
Loans held-for-sale—SBAs and USDA
 
$
—

 
$
465,504

 
$
1,473

 
$
466,977

Loans held-for-sale—first mortgages
 
—

 
—

 
618

 
618

Loans, net of unearned income (a)
 
—

 
—

 
26,666

 
26,666

OREO (b)
 
—

 
—

 
39,566

 
39,566

Other assets (c)
 
—

 
—

 
26,521

 
26,521

 
(a)
Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell.
(b)
Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government insured mortgages.
(c)
Represents tax credit investments accounted for under the equity method.
Gains/(losses) on Nonrecurring Fair Value Measurements
For assets measured on a nonrecurring basis which were still held on the consolidated balance sheet at period end, the following table provides information about the fair value adjustments recorded during the three and nine months ended September 30, 2018 and 2017:
 
 
 
Net gains/(losses)
Three Months Ended September 30
 
Net gains/(losses)
Nine months ended September 30
(Dollars in thousands)
 
2018
 
2017
 
2018
 
2017
Loans held-for-sale—SBAs and USDA
 
$
(1,213
)
 
$
(86
)
 
$
(2,464
)
 
$
(1,259
)
Loans held-for-sale—first mortgages
 
3

 
6

 
7

 
22

Loans, net of unearned income (a)
 
363

 
(2,388
)
 
1,020

 
(1,456
)
OREO (b)
 
(776
)
 
(41
)
 
(2,198
)
 
(662
)
Other assets (c)
 
(1,370
)
 
(762
)
 
(3,586
)
 
(2,646
)
 
 
$
(2,993
)
 
$
(3,271
)
 
$
(7,221
)
 
$
(6,001
)

(a)
Write-downs on these loans are recognized as part of provision for loan losses.
(b)
Represents losses of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government insured mortgages.
(c)
Represents tax credit investments accounted for under the equity method.
Schedule Of Unobservable Inputs Utilized In Determining The Fair Value Of Level 3 Recurring And Non-Recurring Measurements
The following tables provide information regarding the unobservable inputs utilized in determining the fair value of level 3 recurring and non-recurring measurements as of September 30, 2018 and December 31, 2017: 
(Dollars in thousands)
Level 3 Class
 
Fair Value at
September 30, 2018
 
Valuation Techniques
 
Unobservable Input
 
Values Utilized
Available-for-sale- securities SBA-interest only strips
 
$
10,361

 
Discounted cash flow
 
Constant prepayment rate
 
11%
 
 
 
 
 
 
Bond equivalent yield
 
13%- 18%
Loans held-for-sale - residential real estate
 
16,778

 
Discounted cash flow
 
Prepayment speeds - First mortgage
 
2% - 11%
 
 
 
 
 
 
Prepayment speeds - HELOC
 
5% - 12%
 
 
 
 
 
 
Foreclosure losses
 
50% - 70%
 
 
 
 
 
 
Loss severity trends - First mortgage
 
2% - 25% of UPB
 
 
 
 
 
 
Loss severity trends - HELOC
 
50% - 100% of UPB
Loans held-for-sale- unguaranteed interest in SBA loans
 
1,018

 
Discounted cash flow
 
Constant prepayment rate
 
8% - 12%
 
 
 
 
 
 
Bond equivalent yield
 
9%
Derivative liabilities, other
 
34,212

 
Discounted cash flow
 
Visa covered litigation resolution amount
 
$5.2 billion - $5.8 billion
 
 
 
 
 
 
Probability of resolution scenarios
 
20% - 30%
 
 
 
 
 
 
Time until resolution
 
24- 48 months
Loans, net of unearned
income (a)
 
26,995

 
Appraisals from comparable properties
 
Marketability adjustments for specific properties
 
0% - 10% of appraisal
 
 
 
 
Other collateral valuations
 
Borrowing base certificates adjustment
 
20% - 50% of gross value
 
 
 
 
 
 
Financial Statements/Auction values adjustment
 
0% - 25% of reported value
OREO (b)
 
25,726

 
Appraisals from comparable properties
 
Adjustment for value changes since appraisal
 
0% - 10% of appraisal
Other assets (c)
 
23,329

 
Discounted cash flow
 
Adjustments to current sales yields for specific properties
 
0% - 15% adjustment to yield
 
 
 
 
Appraisals from comparable properties
 
Marketability adjustments for specific properties
 
0% - 25% of appraisal
 
(a)
Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.
(b)
Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government insured mortgages.
(c)
Represents tax credit investments accounted for under the equity method.
(Dollars in thousands)
 
 
 
 
 
 
 
 
Level 3 Class
 
Fair Value at
December 31, 2017
 
Valuation Techniques
 
Unobservable Input
 
Values Utilized
Available-for-sale- securities SBA-interest only strips
 
$
1,270

 
Discounted cash flow
 
Constant prepayment rate
 
10% - 11%
 
 
 
 
 
 
Bond equivalent yield
 
17%
Loans held-for-sale - residential real estate
 
19,544

 
Discounted cash flow
 
Prepayment speeds - First mortgage
 
2% - 12%
 
 
 
 
 
 
Prepayment speeds - HELOC
 
5% - 12%
 
 
 
 
 
 
Foreclosure losses
 
50% - 70%

 

 

 
Loss severity trends - First mortgage
 
5% - 30% of UPB
 
 
 
 
 
 
Loss severity trends - HELOC
 
15% - 100% of UPB
Loans held-for-sale- unguaranteed interest in SBA loans
 
1,473

 
Discounted cash flow
 
Constant prepayment rate
 
8% - 12%

 


 

 
Bond equivalent yield
 
9% - 10%
Derivative liabilities, other
 
5,645

 
Discounted cash flow
 
Visa covered litigation resolution amount
 
$4.4 billion - $5.2 billion
 
 
 
 
 
 
Probability of resolution scenarios
 
10% - 30%
 
 
 
 
 
 
Time until resolution
 
18 - 48 months
Loans, net of unearned
income (a)
 
26,666

 
Appraisals from comparable properties

 
Marketability adjustments for specific properties
 
0% - 10% of appraisal
 
 
 
 
Other collateral valuations
 
Borrowing base certificates adjustment
 
20% - 50% of gross value
 
 
 
 
 
 
Financial Statements/Auction values adjustment
 
0% - 25% of reported value
OREO (b)
 
39,566

 
Appraisals from comparable properties
 
Adjustment for value changes since appraisal
 
0% - 10% of appraisal
Other assets (c)
 
26,521

 
Discounted cash flow
 
Adjustments to current sales yields for specific properties
 
0% - 15% adjustment to yield
 
 
 
 
Appraisals from comparable properties
 
Marketability adjustments for specific properties
 
0% - 25% of appraisal
 
(a)
Represents carrying value of loans for which adjustments are required to be based on the appraised value of the collateral less estimated costs to sell. Write-downs on these loans are recognized as part of provision for loan losses.
(b)
Represents the fair value of foreclosed properties that were measured subsequent to their initial classification as OREO. Balance excludes OREO related to government insured mortgages.
(c)
Represents tax credit investments accounted for under the equity method.
Summary Of Differences Between The Fair Value Carrying Amount Of Mortgages Held-For-Sale And Aggregate Unpaid Principal Amount
The following tables reflect the differences between the fair value carrying amount of residential real estate loans held-for-sale measured at fair value in accordance with management’s election and the aggregate unpaid principal amount FHN is contractually entitled to receive at maturity.
 
 
 
September 30, 2018
(Dollars in thousands)
 
Fair value
carrying
amount
 
Aggregate
unpaid
principal
 
Fair value carrying amount
less aggregate unpaid
principal
Residential real estate loans held-for-sale reported at fair value:
 
 
 
 
 
 
Total loans
 
$
16,418

 
$
23,897

 
$
(7,479
)
Nonaccrual loans
 
4,483

 
8,360

 
(3,877
)
Loans 90 days or more past due and still accruing
 
—

 
—

 
—

 
 
December 31, 2017
(Dollars in thousands)
 
Fair value
carrying
amount
 
Aggregate
unpaid
principal
 
Fair value carrying amount
less aggregate unpaid
principal
Residential real estate loans held-for-sale reported at fair value:
 
 
 
 
 
 
Total loans
 
$
20,881

 
$
29,755

 
$
(8,874
)
Nonaccrual loans
 
5,783

 
10,881

 
(5,098
)
Loans 90 days or more past due and still accruing
 
—

 
—

 
—

Changes In Fair Value Of Assets And Liabilities Which Fair Value Option Included In Current Period Earnings
Assets and liabilities accounted for under the fair value election are initially measured at fair value with subsequent changes in fair value recognized in earnings. Such changes in the fair value of assets and liabilities for which FHN elected the fair value option are included in current period earnings with classification in the income statement line item reflected in the following table:
 
 
Three Months Ended
September 30
 
Nine months ended
September 30
(Dollars in thousands)
2018
 
2017
 
2018
 
2017
Changes in fair value included in net income:
 
 
 
 
 
 
 
Mortgage banking noninterest income
 
 
 
 
 
 
 
Loans held-for-sale
$
277

 
$
390

 
$
986

 
$
1,722

Summary Of Book Value And Estimated Fair Value Of Financial Instruments
The following table summarizes the book value and estimated fair value of financial instruments recorded in the Consolidated Condensed Statements of Condition as of September 30, 2018:
 
 
September 30, 2018
 
 
Book
Value
 
Fair Value
(Dollars in thousands) 
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
Loans, net of unearned income and allowance for loan losses
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
Commercial, financial and industrial
 
$
15,943,831

 
$
—

 
$
—

 
$
15,941,049

 
$
15,941,049

Commercial real estate
 
4,203,121

 
—

 
—

 
4,198,110

 
4,198,110

Consumer:
 
 
 
 
 
 
 
 
 
 
Consumer real estate
 
6,164,646

 
—

 
—

 
6,114,607

 
6,114,607

Permanent mortgage
 
333,574

 
—

 
—

 
338,736

 
338,736

Credit card & other
 
519,083

 
—

 
—

 
520,074

 
520,074

Total loans, net of unearned income and allowance for loan losses
 
27,164,255

 
—

 
—

 
27,112,576

 
27,112,576

Short-term financial assets:
 
 
 
 
 
 
 
 
 
 
Interest-bearing cash
 
531,681

 
531,681

 
—

 
—

 
531,681

Federal funds sold
 
113,722

 
—

 
113,722

 
—

 
113,722

Securities purchased under agreements to resell
 
687,437

 
—

 
687,437

 
—

 
687,437

Total short-term financial assets
 
1,332,840

 
531,681

 
801,159

 
—

 
1,332,840

Trading securities (a)
 
1,930,991

 
—

 
1,929,399

 
1,592

 
1,930,991

Loans held-for-sale
 
 
 
 
 
 
 
 
 
 
Mortgage loans (elected fair value) (a)
 
16,418

 
—

 
182

 
16,236

 
16,418

USDA & SBA loans- LOCOM
 
619,160

 
—

 
623,863

 
1,023

 
624,886

Other consumer loans- LOCOM
 
28,843

 
—

 
6,704

 
22,139

 
28,843

Mortgage loans- LOCOM
 
61,230

 
—

 
—

 
61,230

 
61,230

Total loans held-for-sale
 
725,651

 
—

 
630,749

 
100,628

 
731,377

Securities available-for-sale (a)
 
4,608,383

 
—

 
4,598,022

 
10,361

 
4,608,383

Securities held-to-maturity
 
10,000

 
—

 
—

 
9,756

 
9,756

Derivative assets (a)
 
54,476

 
20,013

 
34,463

 
—

 
54,476

Other assets:
 
 
 
 
 
 
 
 
 
 
Tax credit investments
 
139,983

 
—

 
—

 
136,984

 
136,984

Deferred compensation mutual funds
 
40,912

 
40,912

 
—

 
—

 
40,912

Equity, mutual funds, and other (b)
 
240,667

 
22,141

 
—

 
218,526

 
240,667

Total other assets
 
421,562

 
63,053

 
—

 
355,510

 
418,563

Total assets
 
$
36,248,158

 
$
614,747

 
$
7,993,792

 
$
27,590,423

 
$
36,198,962

Liabilities:
 
 
 
 
 
 
 
 
 
 
Defined maturity deposits
 
$
4,056,184

 
$
—

 
$
4,024,544

 
$
—

 
$
4,024,544

Trading liabilities (a)
 
739,694

 
—

 
739,694

 
—

 
739,694

Short-term financial liabilities:
 
 
 
 
 
 
 
 
 
 
Federal funds purchased
 
437,474

 
—

 
437,474

 
—

 
437,474

Securities sold under agreements to repurchase
 
678,510

 
—

 
678,510

 
—

 
678,510

Other short-term borrowings
 
1,069,912

 
—

 
1,069,912

 
—

 
1,069,912

Total short-term financial liabilities
 
2,185,896

 
—

 
2,185,896

 
—

 
2,185,896

Term borrowings:
 
 
 
 
 
 
 
 
 
 
Real estate investment trust-preferred
 
46,151

 
—

 
—

 
47,470

 
47,470

Term borrowings—new market tax credit investment
 
18,000

 
—

 
—

 
17,915

 
17,915

Secured borrowings
 
16,621

 
—

 
—

 
16,499

 
16,499

Junior subordinated debentures
 
177,974

 
—

 
—

 
177,974

 
177,974

Other long term borrowings
 
941,388

 
—

 
957,647

 
—

 
957,647

Total term borrowings
 
1,200,134

 
—

 
957,647

 
259,858

 
1,217,505

Derivative liabilities (a)
 
170,324

 
18,770

 
117,342

 
34,212

 
170,324

Total liabilities
 
$
8,352,232

 
$
18,770

 
$
8,025,123

 
$
294,070

 
$
8,337,963

 

(a)
Classes are detailed in the recurring and nonrecurring measurement tables.
(b)
Level 1 primarily consists of mutual funds with readily determinable fair values. Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $130.7 million.
The following table summarizes the book value and estimated fair value of financial instruments recorded in the Consolidated Statements of Condition as of December 31, 2017: 
 
 
December 31, 2017
 
 
Book
Value
 
Fair Value
(Dollars in thousands)
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Assets:
 
 
 
 
 
 
 
 
 
 
Loans, net of unearned income and allowance for loan losses
 
 
 
 
 
 
 
 
 
 
Commercial:
 
 
 
 
 
 
 
 
 
 
Commercial, financial and industrial
 
$
15,959,062

 
$
—

 
$
—

 
$
15,990,991

 
$
15,990,991

Commercial real estate
 
4,186,268

 
—

 
—

 
4,215,367

 
4,215,367

Consumer:
 
 
 
 
 
 
 
 
 
 
Consumer real estate
 
6,330,384

 
—

 
—

 
6,320,308

 
6,320,308

Permanent mortgage
 
383,742

 
—

 
—

 
388,396

 
388,396

Credit card & other
 
609,918

 
—

 
—

 
607,955

 
607,955

Total loans, net of unearned income and allowance for loan losses
 
27,469,374

 
—

 
—

 
27,523,017

 
27,523,017

Short-term financial assets:
 
 
 
 
 
 
 
 
 
 
Interest-bearing cash
 
1,185,600

 
1,185,600

 
—

 
—

 
1,185,600

Federal funds sold
 
87,364

 
—

 
87,364

 
—

 
87,364

Securities purchased under agreements to resell
 
725,609

 
—

 
725,609

 
—

 
725,609

Total short-term financial assets
 
1,998,573

 
1,185,600

 
812,973

 
—

 
1,998,573

Trading securities (a)
 
1,416,345

 
—

 
1,414,194

 
2,151

 
1,416,345

Loans held-for-sale
 
 
 
 
 
 
 
 
 
 
Mortgage loans
 
88,173

 
—

 
6,902

 
81,271

 
88,173

USDA & SBA loans
 
466,977

 
—

 
467,227

 
1,510

 
468,737

Other consumer loans
 
144,227

 
—

 
9,965

 
134,262

 
144,227

Securities available-for-sale (a) (b)
 
5,170,255

 
27,017

 
4,903,115

 
240,123

 
5,170,255

Securities held-to-maturity
 
10,000

 
—

 
—

 
9,901

 
9,901

Derivative assets (a)
 
81,634

 
10,161

 
71,473

 
—

 
81,634

Other assets:
 
 
 
 
 
 
 
 
 
 
Tax credit investments
 
119,317

 
—

 
—

 
112,292

 
112,292

Deferred compensation assets
 
39,822

 
39,822

 
—

 
—

 
39,822

Total other assets
 
159,139

 
39,822

 
—

 
112,292

 
152,114

Nonearning assets:
 
 
 
 
 
 
 
 
 
 
Cash & due from banks
 
639,073

 
639,073

 
—

 
—

 
639,073

Fixed income receivables
 
68,693

 
—

 
68,693

 
—

 
68,693

Accrued interest receivable
 
97,239

 
—

 
97,239

 
—

 
97,239

Total nonearning assets
 
805,005

 
639,073

 
165,932

 
—

 
805,005

Total assets
 
$
37,809,702

 
$
1,901,673

 
$
7,851,781

 
$
28,104,527

 
$
37,857,981

Liabilities:
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
Defined maturity
 
$
3,322,921

 
$
—

 
$
3,293,650

 
$
—

 
$
3,293,650

Undefined maturity
 
27,297,441

 
—

 
27,297,431

 
—

 
27,297,431

Total deposits
 
30,620,362

 
—

 
30,591,081

 
—

 
30,591,081

Trading liabilities (a)
 
638,515

 
—

 
638,515

 
—

 
638,515

Short-term financial liabilities:
 
 
 
 
 
 
 
 
 
 
Federal funds purchased
 
399,820

 
—

 
399,820

 
—

 
399,820

Securities sold under agreements to repurchase
 
656,602

 
—

 
656,602

 
—

 
656,602

Other short-term borrowings
 
2,626,213

 
—

 
2,626,213

 
—

 
2,626,213

Total short-term financial liabilities
 
3,682,635

 
—

 
3,682,635

 
—

 
3,682,635

Term borrowings:
 
 
 
 
 
 
 
 
 
 
Real estate investment trust-preferred
 
46,100

 
—

 
—

 
48,880

 
48,880

Term borrowings—new market tax credit investment
 
18,000

 
—

 
—

 
17,930

 
17,930

Secured borrowings
 
18,642

 
—

 
—

 
18,305

 
18,305

Junior subordinated debentures
 
187,281

 
—

 
—

 
187,281

 
187,281

Other long term borrowings
 
948,074

 
—

 
966,292

 
—

 
966,292

Total term borrowings
 
1,218,097

 
—

 
966,292

 
272,396

 
1,238,688

Derivative liabilities (a)
 
85,061

 
9,535

 
69,881

 
5,645

 
85,061

Other noninterest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
Fixed income payables
 
48,996

 
—

 
48,996

 
—

 
48,996

Accrued interest payable
 
16,270

 
—

 
16,270

 
—

 
16,270

Total other noninterest-bearing liabilities
 
65,266

 
—

 
65,266

 
—

 
65,266

Total liabilities
 
$
36,309,936

 
$
9,535

 
$
36,013,670

 
$
278,041

 
$
36,301,246


(a)
Classes are detailed in the recurring and nonrecurring measurement tables.
(b)
Level 3 includes restricted investments in FHLB-Cincinnati stock of $87.9 million and FRB stock of $134.6 million.
The following table presents the contractual amount and fair value of unfunded loan commitments and standby and other commitments as of September 30, 2018 and December 31, 2017:
 
 
Contractual Amount
 
Fair Value
(Dollars in thousands)
 
September 30, 2018
 
December 31, 2017
 
September 30, 2018
 
December 31, 2017
Unfunded Commitments:
 
 
 
 
 
 
 
 
Loan commitments
 
$
10,829,303

 
$
10,678,485

 
$
2,871

 
$
2,617

Standby and other commitments
 
450,745

 
420,728

 
4,981

 
5,274