FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2018

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:

TABLE 18.1



(in thousands)	Level 1		Level 2		Level 3		Total
September 30, 2018
Assets Measured at Fair Value
Debt securities available for sale
U.S. government agencies	$	—	$	163,000	$	—	$	163,000
U.S. government-sponsored entities	—		356,267		—		356,267
Residential mortgage-backed securities:
Agency mortgage-backed securities	—		1,483,820		—		1,483,820
Agency collateralized mortgage obligations	—		1,046,481		—		1,046,481
Non-agency collateralized mortgage obligations	—		—		—		—
Commercial mortgage-backed securities	—		226,775		—		226,775
States of the U.S. and political subdivisions	—		20,681		—		20,681
Other debt securities	—		1,870		—		1,870
Total debt securities available for sale	—		3,298,894		—		3,298,894
Loans held for sale	—		24,943		—		24,943
Marketable equity securities
Fixed income mutual fund	—		—		—		—
Financial services industry	—		188		—		188
Total marketable equity securities	—		188		—		188
Derivative financial instruments
Trading	—		17,590		—		17,590
Not for trading	—		385		772		1,157
Total derivative financial instruments	—		17,975		772		18,747
Total assets measured at fair value on a recurring basis	$	—	$	3,342,000	$	772	$	3,342,772
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	70,176	$	—	$	70,176
Not for trading	—		4,844		21		4,865
Total derivative financial instruments	—		75,020		21		75,041
Total liabilities measured at fair value on a recurring basis	$	—	$	75,020	$	21	$	75,041



(in thousands)	Level 1		Level 2		Level 3		Total
December 31, 2017
Assets Measured at Fair Value
Debt securities available for sale
U.S. government-sponsored entities	$	—	$	343,942	$	—	$	343,942
Residential mortgage-backed securities:
Agency mortgage-backed securities	—		1,598,874		—		1,598,874
Agency collateralized mortgage obligations	—		794,957		—		794,957
Non-agency collateralized mortgage obligations	—		1		—		1
States of the U.S. and political subdivisions	—		21,093		—		21,093
Other debt securities	—		4,670		—		4,670
Total debt securities available for sale	—		2,763,537		—		2,763,537
Equity securities available for sale
Fixed income mutual fund	161		—		—		161
Financial services industry	—		864		—		864
Total equity securities available for sale	161		864		—		1,025
Total securities available for sale	161		2,764,401		—		2,764,562
Loans held for sale	—		56,458		—		56,458
Derivative financial instruments
Trading	—		28,453		—		28,453
Not for trading	—		500		1,594		2,094
Total derivative financial instruments	—		28,953		1,594		30,547
Total assets measured at fair value on a recurring basis	$	161	$	2,849,812	$	1,594	$	2,851,567
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	26,953	$	—	$	26,953
Not for trading	—		2,239		5		2,244
Total derivative financial instruments	—		29,192		5		29,197
Total liabilities measured at fair value on a recurring basis	$	—	$	29,192	$	5	$	29,197

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:

TABLE 18.2



(in thousands)	Other Debt Securities			Equity Securities			Residential Non-Agency Collateralized Mortgage Obligations			Interest Rate Lock Commitments			Total
Nine Months Ended September 30, 2018
Balance at beginning of period	$	—		$	—		$	—		$	1,594		$	1,594
Purchases, issuances, sales and settlements:
Purchases	—			—			—			3,814			3,814
Settlements	—			—			—			(4,636		)	(4,636		)
Balance at end of period	$	—		$	—		$	—		$	772		$	772
Year Ended December 31, 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			—			—			1,594			13,642
Sales/redemptions	(12,047		)	—			(874		)	—			(12,921		)
Settlements	—			—			(19		)	(4,569		)	(4,588		)
Transfers from Level 3	—			(578		)	—			—			(578		)
Transfers into Level 3	—			—			—			4,569			4,569
Balance at end of period	$	—		$	—		$	—		$	1,594		$	1,594

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:

TABLE 18.3



(in thousands)	Level 1		Level 2		Level 3		Total
September 30, 2018
Impaired loans	$	—	$	1,440	$	4,858	$	6,298
Other real estate owned	—		—		5,570		5,570
Other assets - SBA servicing asset	—		—		4,305		4,305
December 31, 2017
Impaired loans	$	—	$	2,813	$	1,297	$	4,110
Other real estate owned	—		10,513		10,823		21,336
Loans held for sale - SBA	—		—		36,432		36,432
Other assets - SBA servicing asset	—		—		5,058		5,058

Fair Values of Financial Instruments

The fair values of our financial instruments are as follows:

TABLE 18.4



					Fair Value Measurements
(in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
September 30, 2018
Financial Assets
Cash and cash equivalents	$	437,853	$	437,853	$	437,853	$	—	$	—
Debt securities available for sale	3,298,894		3,298,894		—		3,298,894		—
Debt securities held to maturity	3,206,345		3,032,947		—		3,032,947		—
Net loans and leases, including loans held for sale	21,703,605		21,270,133		—		24,943		21,245,190
Loan servicing rights	39,664		46,021		—		—		46,021
Marketable equity securities	188		188		—		188		—
Derivative assets	18,747		18,747		—		17,975		772
Accrued interest receivable	102,513		102,513		102,513		—		—
Financial Liabilities
Deposits	23,499,986		23,437,161		18,052,235		5,384,926		—
Short-term borrowings	3,679,380		3,679,933		3,679,933		—		—
Long-term borrowings	627,049		618,778		—		—		618,778
Derivative liabilities	75,041		75,041		—		75,020		21
Accrued interest payable	19,159		19,159		19,159		—		—
December 31, 2017
Financial Assets
Cash and cash equivalents	$	479,443	$	479,443	$	479,443	$	—	$	—
Securities available for sale	2,764,562		2,764,562		161		2,764,401		—
Debt securities held to maturity	3,242,268		3,218,379		—		3,218,379		—
Net loans and leases, including loans held for sale	20,916,277		20,661,196		—		56,458		20,604,738
Loan servicing rights	34,111		37,758		—		—		37,758
Derivative assets	30,547		30,547		—		28,953		1,594
Accrued interest receivable	94,254		94,254		94,254		—		—
Financial Liabilities
Deposits	22,399,725		22,359,182		17,779,246		4,579,936		—
Short-term borrowings	3,678,337		3,678,723		3,678,723		—		—
Long-term borrowings	668,173		675,489		—		—		675,489
Derivative liabilities	29,197		29,197		—		29,192		5
Accrued interest payable	12,480		12,480		12,480		—		—