FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2017

Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis:



(in thousands)	Level 1		Level 2		Level 3		Total
June 30, 2017
Assets Measured at Fair Value
Debt securities available for sale:
U.S. Treasury	$	—	$	29,949	$	—	$	29,949
U.S. government-sponsored entities	—		380,333		—		380,333
Residential mortgage-backed securities:
Agency mortgage-backed securities	—		1,665,507		—		1,665,507
Agency collateralized mortgage obligations	—		474,467		—		474,467
Non-agency collateralized mortgage obligations	—		2		—		2
Commercial mortgage-backed securities	—		315		—		315
States of the U.S. and political subdivisions	—		31,070		—		31,070
Other debt securities	—		9,688		—		9,688
Total debt securities available for sale	—		2,591,331		—		2,591,331
Equity securities available for sale:
Fixed income mutual fund	1,095		102		—		1,197
Financial services industry	—		767		—		767
Insurance services industry	160		—		—		160
Total equity securities available for sale	1,255		869		—		2,124
Total securities available for sale	1,255		2,592,200		—		2,593,455
Loans held for sale	—		121,941		—		121,941
Derivative financial instruments:
Trading	—		37,260		—		37,260
Not for trading	—		1,462		5,437		6,899
Total derivative financial instruments	—		38,722		5,437		44,159
Total assets measured at fair value on a recurring basis	$	1,255	$	2,752,863	$	5,437	$	2,759,555
Liabilities Measured at Fair Value
Derivative financial instruments:
Trading	$	—	$	24,177	$	—	$	24,177
Not for trading	—		1,666		14		1,680
Total derivative financial instruments	—		25,843		14		25,857
Total liabilities measured at fair value on a recurring basis	$	—	$	25,843	$	14	$	25,857



(in thousands)	Level 1		Level 2		Level 3		Total
December 31, 2016
Assets Measured at Fair Value
Debt securities available for sale:
U.S. Treasury	$	—	$	29,953	$	—	$	29,953
U.S. government-sponsored entities	—		365,098		—		365,098
Residential mortgage-backed securities:
Agency mortgage-backed securities	—		1,252,798		—		1,252,798
Agency collateralized mortgage obligations	—		535,974		—		535,974
Non-agency collateralized mortgage obligations	—		3		894		897
Commercial mortgage-backed securities	—		1,291		—		1,291
States of the U.S. and political subdivisions	—		35,849		—		35,849
Other debt securities	—		9,487		—		9,487
Total debt securities available for sale	—		2,230,453		894		2,231,347
Equity securities available for sale:
Financial services industry	—		—		492		492
Insurance services industry	148		—		—		148
Total equity securities available for sale	148		—		492		640
Total securities available for sale	148		2,230,453		1,386		2,231,987
Derivative financial instruments:
Trading	—		44,951		—		44,951
Not for trading	—		9,269		—		9,269
Total derivative financial instruments	—		54,220		—		54,220
Total assets measured at fair value on a recurring basis	$	148	$	2,284,673	$	1,386	$	2,286,207
Liabilities Measured at Fair Value
Derivative financial instruments:
Trading	$	—	$	45,973	$	—	$	45,973
Not for trading	—		1,294		—		1,294
Total derivative financial instruments	—		47,267		—		47,267
Total liabilities measured at fair value on a recurring basis	$	—	$	47,267	$	—	$	47,267

Additional Information about Assets Measured at Fair Value on Recurring Basis

The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value:



(in thousands)	Other Debt Securities			Equity Securities			Residential Non-Agency Collateralized Mortgage Obligations			Interest Rate Lock Commitments			Total
Six Months Ended June 30, 2017
Balance at beginning of period	$	—		$	492		$	894		$	—		$	1,386
Total gains (losses) – realized/unrealized:
Included in earnings	—			—			4			—			4
Included in other comprehensive income	—			86			(6		)	—			80
Accretion included in earnings	(1		)	—			1			—			—
Purchases, issuances, sales and settlements:
Purchases	12,048			—			—			5,437			17,485
Issuances	—			—			—			—			—
Sales/redemptions	(12,047		)	—			(874		)	—			(12,921		)
Settlements	—			—			(19		)	(1,252		)	(1,271		)
Transfers from Level 3	—			(578		)	—			—			(578		)
Transfers into Level 3	—			—			—			1,252			1,252
Balance at end of period	$	—		$	—		$	—		$	5,437		$	5,437
Year Ended December 31, 2016
Balance at beginning of period	$	—		$	439		$	1,184		$	—		$	1,623
Total gains (losses) – realized/unrealized:
Included in earnings	—			—			—			—			—
Included in other comprehensive income	—			53			(7		)	—			46
Accretion included in earnings	—			—			6			—			6
Purchases, issuances, sales and settlements:
Purchases	—			—			—			—			—
Issuances	—			—			—			—			—
Sales/redemptions	—			—			—			—			—
Settlements	—			—			(289		)	—			(289		)
Transfers from Level 3	—			—			—			—			—
Transfers into Level 3	—			—			—			—			—
Balance at end of period	$	—		$	492		$	894		$	—		$	1,386

Additional Information about Assets Measured at Fair Value on Non-Recurring Basis

For assets measured at fair value on a non-recurring basis still held at the balance sheet date, the following table provides the hierarchy level and the fair value of the related assets or portfolios:



(in thousands)	Level 1		Level 2		Level 3		Total
June 30, 2017
Impaired loans	$	—	$	1,864	$	16,744	$	18,608
Other real estate owned	—		935		2,257		3,192
December 31, 2016
Impaired loans	$	—	$	500	$	5,883	$	6,383
Other real estate owned	—		11,017		3,181		14,198

Fair Values of Financial Instruments

The fair values of our financial instruments are as follows:



					Fair Value Measurements
(in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
June 30, 2017
Financial Assets
Cash and cash equivalents	$	522,618	$	522,618	$	522,618	$	—	$	—
Securities available for sale	2,593,455		2,593,455		1,255		2,592,200		—
Securities held to maturity	3,075,634		3,059,223		—		3,059,223		—
Net loans and leases ⁽¹⁾	2,536,327		20,365,723		—		121,941		20,243,782
Loan servicing rights	29,728		32,457		—		—		32,457
Derivative assets	44,159		44,159		—		38,722		5,437
Accrued interest receivable	76,573		76,573		76,573		—		—
Financial Liabilities
Deposits	21,051,707		21,028,916		17,328,420		3,700,496		—
Short-term borrowings	4,425,967		4,426,483		4,426,483		—		—
Long-term borrowings	656,883		658,898		—		—		658,898
Derivative liabilities	25,857		25,857		—		25,843		14
Accrued interest payable	10,561		10,561		10,561		—		—
December 31, 2016
Financial Assets
Cash and cash equivalents	$	371,407	$	371,407	$	371,407	$	—	$	—
Securities available for sale	2,231,987		2,231,987		148		2,230,453		1,386
Securities held to maturity	2,337,342		2,294,777		—		2,293,091		1,686
Net loans and leases ⁽¹⁾	14,750,792		14,464,274		—		—		14,464,274
Loan servicing rights	13,521		17,546		—		—		17,546
Derivative assets	54,220		54,220		—		54,220		—
Accrued interest receivable	58,712		58,712		58,712		—		—
Financial Liabilities
Deposits	16,065,647		16,045,323		13,489,152		2,556,171		—
Short-term borrowings	2,503,010		2,503,277		2,503,277		—		—
Long-term borrowings	539,494		536,088		—		—		536,088
Derivative liabilities	47,267		47,267		—		47,267		—
Accrued interest payable	7,612		7,612		7,612		—		—


(1)	Includes loans held for sale.