Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present summaries of the Corporation’s assets and liabilities measured at fair value on a recurring basis and reported on the consolidated balance sheets:



	June 30, 2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	34,330	$	—	$	34,330
Available for sale investment securities:
Equity securities	20,689		—		—		20,689
U.S. Government sponsored agency securities	—		146		—		146
State and municipal securities	—		345,347		—		345,347
Corporate debt securities	—		88,416		3,131		91,547
Collateralized mortgage obligations	—		706,346		—		706,346
Mortgage-backed securities	—		1,267,763		—		1,267,763
Auction rate securities	—		—		97,886		97,886
Total available for sale investment securities	20,689		2,408,018		101,017		2,529,724
Other assets	16,873		85,911		—		102,784
Total assets	$	37,562	$	2,528,259	$	101,017	$	2,666,838
Other liabilities	$	16,541	$	84,722	$	—	$	101,263



	December 31, 2015
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	16,886	$	—	$	16,886
Available for sale investment securities:
Equity securities	21,514		—		—		21,514
U.S. Government sponsored agency securities	—		25,136		—		25,136
State and municipal securities	—		262,765		—		262,765
Corporate debt securities	—		93,619		3,336		96,955
Collateralized mortgage obligations	—		821,509		—		821,509
Mortgage-backed securities	—		1,158,835		—		1,158,835
Auction rate securities	—		—		98,059		98,059
Total available for sale investment securities	21,514		2,361,864		101,395		2,484,773
Other assets	16,129		34,465		—		50,594
Total assets	$	37,643	$	2,413,215	$	101,395	$	2,552,253
Other liabilities	$	15,914	$	33,010	$	—	$	48,924

Schedule of Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis using Level 3 Inputs

The following table presents the changes in the Corporation’s available for sale investment securities measured at fair value on a recurring basis using unobservable inputs (Level 3):



	Three months ended June 30, 2016
	Pooled Trust Preferred Securities			Single-issuer Trust Preferred Securities			ARCs
	(in thousands)
Balance at March 31, 2016	$	706		$	2,400		$	97,326
Unrealized adjustment to fair value ⁽¹⁾	—			22			482
Discount accretion ⁽²⁾	—			3			78
Balance at June 30, 2016	$	706		$	2,425		$	97,886

	Three months ended June 30, 2015
Balance at March 31, 2015	$	1,084		$	3,820		$	98,932
Sales	(554		)	—			—
Unrealized adjustment to fair value ⁽¹⁾	—			(2		)	(420		)
Discount accretion ⁽²⁾	—			2			94
Balance at June 30, 2015	$	530		$	3,820		$	98,606

	Six months ended June 30, 2016
	Pooled Trust Preferred Securities			Single-issuer Trust Preferred Securities			ARCs
	(in thousands)
Balance at December 31, 2015	$	706		$	2,630		$	98,059
Unrealized adjustment to fair value ⁽¹⁾	—			(211		)	(350		)
Discount accretion ⁽²⁾	—			6			177
Balance at June 30, 2016	$	706		$	2,425		$	97,886

	Six months ended June 30, 2015
Balance at December 31, 2014	$	4,088		$	3,820		$	100,941
Sales	(3,633		)	—			—
Unrealized adjustment to fair value ⁽¹⁾	190			(4		)	(88		)
Settlements - calls	(117		)	—			(2,446		)
Discount accretion ⁽²⁾	2			4			199
Balance at June 30, 2015	$	530		$	3,820		$	98,606


(1)	Pooled trust preferred securities, single-issuer trust preferred securities and ARCs are classified as available for sale investment securities; as such, the unrealized adjustment to fair value was recorded as an unrealized holding gain (loss) and included as a component of available for sale investment securities on the consolidated balance sheets.


(2)	Included as a component of net interest income on the consolidated statements of income.

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis

The following table presents the Corporation’s financial assets measured at fair value on a nonrecurring basis and reported on the Corporation’s consolidated balance sheets:



	June 30, 2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	128,174	$	128,174
Other financial assets	—		—		50,071		50,071
Total assets	$	—	$	—	$	178,245	$	178,245



	December 31, 2015
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	138,491	$	138,491
Other financial assets	—		—		52,043		52,043
Total assets	$	—	$	—	$	190,534	$	190,534

Details of Book Value and Fair Value of Financial Instruments

As required by FASB ASC Section 825-10-50, the following table details the book values and estimated fair values of the Corporation’s financial instruments as of June 30, 2016 and December 31, 2015. In addition, a general description of the methods and assumptions used to estimate such fair values is also provided.



	June 30, 2016				December 31, 2015
	Book Value		Estimated Fair Value		Book Value		Estimated Fair Value
	(in thousands)
FINANCIAL ASSETS
Cash and due from banks	$	84,647	$	84,647	$	101,120	$	101,120
Interest-bearing deposits with other banks	348,232		348,232		230,300		230,300
Federal Reserve Bank and Federal Home Loan Bank stock	59,854		59,854		62,216		62,216
Loans held for sale ⁽¹⁾	34,330		34,330		16,886		16,886
Available for sale investment securities ⁽¹⁾	2,529,724		2,529,724		2,484,773		2,484,773
Net Loans ⁽¹⁾	13,992,613		13,950,868		13,669,548		13,540,903
Accrued interest receivable	43,316		43,316		42,767		42,767
Other financial assets ⁽¹⁾	226,808		226,808		166,920		166,920
FINANCIAL LIABILITIES
Demand and savings deposits	$	11,469,919	$	11,469,919	$	11,267,367	$	11,267,367
Time deposits	2,822,645		2,973,640		2,864,950		2,862,868
Short-term borrowings	722,214		722,214		497,663		497,663
Accrued interest payable	8,336		8,336		10,724		10,724
Other financial liabilities ⁽¹⁾	274,104		274,104		190,927		190,927
Federal Home Loan Bank advances and long-term debt	965,552		993,194		949,542		959,315


(1)	These financial instruments, or certain financial instruments in these categories, are measured at fair value on the Corporation’s consolidated balance sheets. Descriptions of the fair value determinations for these financial instruments are disclosed above.