Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

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

The following tables summarizes the Corporation’s assets and liabilities measured at fair value on a recurring basis and reported on the consolidated balance sheets as of December 31:



	2017
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	31,530	$	—	$	31,530
Available for sale investment securities:
Equity securities	918		—		—		918
U.S. Government sponsored agency securities	—		5,938		—		5,938
State and municipal securities	—		408,949		—		408,949
Corporate debt securities	—		93,552		3,757		97,309
Collateralized mortgage obligations	—		602,623		—		602,623
Residential mortgage-backed securities	—		1,120,796		—		1,120,796
Commercial mortgage-backed securities	—		212,755		—		212,755
Auction rate securities	—		—		98,668		98,668
Total available for sale investment securities	918		2,444,613		102,425		2,547,956
Other assets	19,451		44,539		—		63,990
Total assets	$	20,369	$	2,520,682	$	102,425	$	2,643,476
Other liabilities	$	19,357	$	39,014	$	—	$	58,371

	2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	28,697	$	—	$	28,697
Available for sale investment securities:
Equity securities	24,526		—		—		24,526
U.S. Government sponsored agency securities	—		134		—		134
State and municipal securities	—		391,641		—		391,641
Corporate debt securities	—		106,537		2,872		109,409
Collateralized mortgage obligations	—		593,860		—		593,860
Residential mortgage-backed securities	—		1,317,838		—		1,317,838
Commercial mortgage-backed securities	—		24,563		—		24,563
Auction rate securities	—		—		97,256		97,256
Total available for sale investment securities	24,526		2,434,573		100,128		2,559,227
Other assets	17,111		44,481		—		61,592
Total assets	$	41,637	$	2,507,751	$	100,128	$	2,649,516
Other liabilities	$	17,032	$	41,734	$	—	$	58,766

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 available for sale investment securities measured at fair value on a recurring basis using unobservable inputs (Level 3) for the years ended December 31:



	Pooled Trust Preferred Securities			Single-issuer Trust Preferred Securities			Auction Rate Securities
	(in thousands)
Balance as of December 31, 2015	$	706		$	2,630		$	98,059
Unrealized adjustments to fair value ⁽¹⁾	(286		)	(190		)	(1,246		)
Discount accretion ⁽²⁾	2			10			443
Balance as of December 31, 2016	422			2,450			97,256
Unrealized adjustments to fair value ⁽¹⁾	285			588			1,217
Discount accretion ⁽²⁾	—			12			195
Balance as of December 31, 2017	$	707		$	3,050		$	98,668


(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 assets measured at fair value on a nonrecurring basis and reported on the consolidated balance sheets at December 31:



	2017			2016
	(in thousands)
Net loans		$	149,608	$	132,576
OREO		9,823		12,815
MSRs		37,663		37,532
Total assets		$	197,094	$	182,923

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 the estimated fair values of the Corporation’s financial instruments as of December 31, 2017 and 2016. A general description of the methods and assumptions used to estimate such fair values is also provided.



	2017				2016
	Book Value		Estimated Fair Value		Book Value		Estimated Fair Value
	(in thousands)
FINANCIAL ASSETS
Cash and due from banks ⁽¹⁾	$	108,291	$	108,291	$	118,763	$	118,763
Interest-bearing deposits with other banks ⁽¹⁾	293,805		293,805		233,763		233,763
FRB and FHLB stock ⁽²⁾	60,761		60,761		57,489		57,489
Loans held for sale ⁽³⁾	31,530		31,530		28,697		28,697
Available for sale investment securities ⁽²⁾	2,547,956		2,547,956		2,559,227		2,559,227
Net Loans ⁽⁴⁾	15,598,337		15,380,974		14,530,593		14,387,454
Accrued interest receivable ⁽¹⁾	52,910		52,910		46,294		46,294
Other financial assets ⁽¹⁾	215,464		215,464		206,132		206,132
FINANCIAL LIABILITIES
Demand and savings deposits ⁽¹⁾	$	13,042,147	$	13,042,147	$	12,259,622	$	12,259,622
Brokered deposits ⁽¹⁾	90,473		90,473		—		—
Time deposits⁽⁵⁾	2,664,912		2,673,359		2,753,242		2,769,757
Short-term borrowings ⁽¹⁾	617,524		617,524		541,317		541,317
Accrued interest payable ⁽¹⁾	9,317		9,317		9,632		9,632
Other financial liabilities ⁽³⁾	227,569		227,569		216,080		216,080
FHLB advances and long-term debt ⁽⁵⁾	1,038,346		1,025,640		929,403		928,167


(1)	Short-term financial instrument, defined as those with remaining maturities of 90 days or less and excluding those recorded at fair value on the consolidated balance sheets. Book value is considered to be a reasonable estimate of fair value.


(2)	Restricted investments, carried at cost on the consolidated balance sheets.


(3)	These financial instruments, or certain financial instruments within these categories, are measured at fair value on the consolidated balance sheets. Descriptions of the fair value determinations for these financial instruments are disclosed above.


(4)	Fair value measured using unobservable inputs (level 3). Includes impaired loans, which are measured on a nonrecurring basis.


(5)	Fair value measured using observable inputs (level 2).