Fair Value Measurements (Tables)

9 Months Ended

Sep. 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:



	September 30, 2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	27,836	$	—	$	27,836
Available for sale investment securities:
Equity securities	22,483		—		—		22,483
U.S. Government sponsored agency securities	—		140		—		140
State and municipal securities	—		401,572		—		401,572
Corporate debt securities	—		104,100		3,141		107,241
Collateralized mortgage obligations	—		652,359		—		652,359
Mortgage-backed securities	—		1,226,547		—		1,226,547
Auction rate securities	—		—		97,726		97,726
Total available for sale investment securities	22,483		2,384,718		100,867		2,508,068
Other assets	16,903		84,152		—		101,055
Total assets	$	39,386	$	2,496,706	$	100,867	$	2,636,959
Other liabilities	$	16,800	$	81,815	$	—	$	98,615



	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 September 30, 2016
	Pooled Trust Preferred Securities			Single-issuer Trust Preferred Securities			ARCs
	(in thousands)
Balance at June 30, 2016	$	706		$	2,425		$	97,886
Unrealized adjustment to fair value ⁽¹⁾	—			7			(318		)
Discount accretion ⁽²⁾	—			3			158
Balance at September 30, 2016	$	706		$	2,435		$	97,726

	Three months ended September 30, 2015
Balance at June 30, 2015	$	530		$	3,820		$	98,606
Unrealized adjustment to fair value ⁽¹⁾	—			(203		)	(890		)
Settlements - calls	—			(970		)	—
Discount accretion ⁽²⁾	—			3			157
Balance at September 30, 2015	$	530		$	2,650		$	97,873

	Nine months ended September 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⁾	—			(204		)	(668		)
Discount accretion ⁽²⁾	—			9			335
Balance at September 30, 2016	$	706		$	2,435		$	97,726

	Nine months ended September 30, 2015
Balance at December 31, 2014	$	4,088		$	3,820		$	100,941
Sales	(3,633		)	—			—
Unrealized adjustment to fair value ⁽¹⁾	190			(207		)	(978		)
Settlements - calls	(117		)	(970		)	(2,446		)
Discount accretion ⁽²⁾	2			7			356
Balance at September 30, 2015	$	530		$	2,650		$	97,873


(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:



	September 30, 2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	140,732	$	140,732
Other financial assets	—		—		48,288		48,288
Total assets	$	—	$	—	$	189,020	$	189,020



	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 September 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.



	September 30, 2016				December 31, 2015
	Book Value		Estimated Fair Value		Book Value		Estimated Fair Value
	(in thousands)
FINANCIAL ASSETS
Cash and due from banks	$	86,497	$	86,497	$	101,120	$	101,120
Interest-bearing deposits with other banks	368,031		368,031		230,300		230,300
Federal Reserve Bank and Federal Home Loan Bank stock	60,935		60,935		62,216		62,216
Loans held for sale ⁽¹⁾	27,836		27,836		16,886		16,886
Available for sale investment securities ⁽¹⁾	2,508,068		2,508,068		2,484,773		2,484,773
Net Loans ⁽¹⁾	14,228,712		14,155,453		13,669,548		13,540,903
Accrued interest receivable	43,600		43,600		42,767		42,767
Other financial assets ⁽¹⁾	227,310		227,310		166,920		166,920
FINANCIAL LIABILITIES
Demand and savings deposits	$	12,148,162	$	12,148,162	$	11,267,367	$	11,267,367
Time deposits	2,804,317		2,824,653		2,864,950		2,862,868
Short-term borrowings	264,042		264,042		497,663		497,663
Accrued interest payable	13,645		13,645		10,724		10,724
Other financial liabilities ⁽¹⁾	263,489		263,489		190,927		190,927
Federal Home Loan Bank advances and long-term debt	965,286		986,323		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.