Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2012

Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2012 and 2011, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
2012
Securities available for sale:
U.S. Treasury	$	3,057,921	$	-	$	-	$	3,057,921
Residential mortgage-backed securities		-		2,518,003		-		2,518,003
States and political subdivisions		-		591,483		-		591,483
Other		-		35,892		-		35,892
Trading account securities:
U.S. Treasury		14,038		-		-		14,038
States and political subdivisions		-		16,036		-		16,036
Derivative assets:
Interest rate swaps, caps and floors		-		60,511		355		60,866
Commodity and foreign exchange derivatives		3		1,903		-		1,906
Derivative liabilities:
Interest rate swaps, caps and floors		-		72,533		-		72,533
Commodity and foreign exchange derivatives		-		1,808		-		1,808
2011
Securities available for sale:
U.S. Treasury	$	2,056,732	$	-	$	-	$	2,056,732
U.S. government agencies/corporations		-		250,884		-		250,884
Residential mortgage-backed securities		-		3,289,270		-		3,289,270
States and political subdivisions		-		2,154,813		-		2,154,813
Other		-		38,001		-		38,001
Trading account securities:
U.S. Treasury		13,609		-		-		13,609
Derivative assets:
Interest rate swaps, caps and floors		-		60,498		689		61,187
Commodity and foreign exchange derivatives		7		23,304		-		23,311
Derivative liabilities:
Interest rate swaps, caps and floors		-		77,626		-		77,626
Commodity and foreign exchange derivatives		-		23,139		-		23,139

Beginning and Ending Balances of Derivative Assets Measured at Fair Value on a Recurring Basis

The following table reconciles the beginning and ending balances of derivative assets, which consist of interest rate swaps sold to loan customers, measured at fair value on a recurring basis using significant unobservable (Level 3) inputs during the reported periods.

	2012			2011			2010
Balance, beginning of period	$	689		$	1,090		$	945
Transfers into (out of) Level 3		(284	)		457			-
Cash settlements		(368	)		(1,496	)		(462	)
Realized gains included in other non-interest income		202			562			761
Realized gains (losses) included in other non-interest expense		116			76			(154	)
Balance, end of period	$	355		$	689		$	1,090

Impaired Loans Remeasured and Reported at Fair Value of Underlying Collateral

The following table presents impaired loans that were remeasured and reported at fair value through a specific valuation allowance allocation of the allowance for loan losses based upon the fair value of the underlying collateral:

	2012						2011						2010
	Level 2			Level 3			Level 2			Level 3			Level 2			Level 3
Carrying value of impaired loans before allocations	$	18,319		$	15,754		$	4,158		$	2,310		$	18,020		$	5,458
Specific valuation allowance allocations		(3,634	)		(2,911	)		(1,361	)		(1,528	)		(7,311	)		(3,722	)
Fair value	$	14,685		$	12,843		$	2,797		$	782		$	10,709		$	1,736

Foreclosed Assets Remeasured and Reported at Fair Value

The following table presents foreclosed assets that were remeasured and reported at fair value:

	2012			2011			2010
Foreclosed assets remeasured at initial recognition:
Carrying value of foreclosed assets prior to remeasurement	$	9,428		$	24,682		$	22,585
Charge-offs recognized in the allowance for loan losses		(1,611	)		(3,556	)		(3,067	)
Fair value	$	7,817		$	21,126		$	19,518
Foreclosed assets remeasured subsequent to initial recognition:
Carrying value of foreclosed assets prior to remeasurement	$	12,126		$	7,667		$	8,025
Write-downs included in other non-interest expense		(2,093	)		(2,792	)		(2,302	)
Fair value	$	10,033		$	4,875		$	5,723

Estimated Fair Values of Financial Instruments

The estimated fair values of financial instruments that are reported at amortized cost in the Corporation’s consolidated balance sheets, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value, were as follows:

	December 31, 2012				December 31, 2011
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial assets:
Level 2 inputs:
Cash and cash equivalents	$	3,524,979	$	3,524,979	$	2,907,592	$	2,907,592
Securities held to maturity		2,956,381		2,996,944		365,996		404,461
Cash surrender value of life insurance policies		138,005		138,005		133,967		133,967
Accrued interest receivable		82,529		82,529		78,869		78,869
Level 3 inputs:
Loans, net		9,119,395		9,212,159		7,884,982		7,951,742
Financial liabilities:
Level 2 inputs:
Deposits		19,497,366		19,498,518		16,756,748		16,757,708
Federal funds purchased and repurchase agreements		561,061		561,061		722,202		722,202
Junior subordinated deferrable interest debentures		123,712		123,712		123,712		123,712
Subordinated notes payable and other borrowings		100,007		89,596		100,026		100,101
Accrued interest payable		1,804		1,804		4,431		4,431