Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2018

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:



	March 31, 2018
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	23,450	$	—	$	23,450
Available for sale investment securities:
U.S. Government sponsored agency securities	—		20,962		—		20,962
State and municipal securities	—		406,099		—		406,099
Corporate debt securities	—		97,995		3,960		101,955
Collateralized mortgage obligations	—		679,700		—		679,700
Residential mortgage-backed securities	—		1,054,166		—		1,054,166
Commercial mortgage-backed securities	—		226,892		—		226,892
Auction rate securities	—		—		103,049		103,049
Total available for sale investment securities	—		2,485,814		107,009		2,592,823
Other assets	19,505		48,304		—		67,809
Total assets	$	19,505	$	2,557,568	$	107,009	$	2,684,082
Other liabilities	$	19,307	$	51,251	$	—	$	70,558



	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

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 March 31, 2018
	Pooled Trust Preferred Securities		Single-issuer Trust Preferred Securities		ARCs
	(in thousands)
Balance at December 31, 2017	$	707	$	3,050	$	98,668
Unrealized adjustment to fair value ⁽¹⁾	158		42		4,381
Discount accretion ⁽²⁾	—		3		—
Balance at March 31, 2018	$	865	$	3,095	$	103,049

	Three months ended March 31, 2017
Balance at December 31, 2016	$	422	$	2,450	$	97,256
Unrealized adjustment to fair value ⁽¹⁾	—		297		86
Discount accretion ⁽²⁾	—		3		97
Balance at March 31, 2017	$	422	$	2,750	$	97,439


(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 Level 3 financial assets measured at fair value on a nonrecurring basis and reported on the Corporation’s consolidated balance sheets:



	March 31, 2018		December 31, 2017
	(in thousands)
Net loans	$	154,305	$	149,608
OREO	10,744		9,823
MSRs	37,748		37,663
Total assets	$	202,797	$	197,094

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 March 31, 2018 and December 31, 2017. In addition, a general description of the methods and assumptions used to estimate such fair values is also provided.



	March 31, 2018
	Amortized Cost		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
FINANCIAL ASSETS
Cash and due from banks	$	100,151	$	100,151	$	—	$	—	$	100,151
Interest-bearing deposits with other banks	210,906		210,906		—		—		210,906
Federal Reserve Bank and Federal Home Loan Bank stock	56,900		—		56,900		—		56,900
Loans held for sale	23,450		—		23,450		—		23,450
Available for sale investment securities	2,592,823		—		2,485,814		107,009		2,592,823
Net Loans	15,533,067		—		—		14,933,445		14,933,445
Accrued interest receivable	53,060		53,060		—		—		53,060
Other financial assets	216,952		120,156		48,304		48,492		216,952
FINANCIAL LIABILITIES
Demand and savings deposits	$	12,763,521	$	12,763,521	$	—	$	—	$	12,763,521
Brokered deposits	64,195		64,195		—		—		64,195
Time deposits	2,649,387		—		2,647,498		—		2,647,498
Short-term borrowings	937,852		937,852		—		—		937,852
Accrued interest payable	9,681		9,681		—		—		9,681
Other financial liabilities	209,483		158,232		51,251		—		209,483
Federal Home Loan Bank advances and long-term debt	938,499		—		914,763		—		914,763

	December 31, 2017
	Book Value		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
FINANCIAL ASSETS
Cash and due from banks	$	108,291	$	108,291	$	—	$	—	$	108,291
Interest-bearing deposits with other banks	293,805		293,805		—		—		293,805
Federal Reserve Bank and Federal Home Loan Bank stock	60,761		—		60,761		—		60,761
Loans held for sale	31,530		—		31,530		—		31,530
Available for sale investment securities	2,547,956		918		2,444,613		102,425		2,547,956
Net Loans	15,598,337		—		—		15,380,974		15,380,974
Accrued interest receivable	52,910		52,910		—		—		52,910
Other financial assets	215,464		123,439		44,539		47,486		215,464
FINANCIAL LIABILITIES
Demand and savings deposits	$	13,042,147	$	13,042,147	$	—	$	—	$	13,042,147
Brokered deposits	90,473		90,473		—		—		90,473
Time deposits	2,664,912		—		2,664,912		—		2,664,912
Short-term borrowings	617,524		617,524		—		—		617,524
Accrued interest payable	9,317		9,317		—		—		9,317
Other financial liabilities	227,569		188,555		39,014		—		227,569
Federal Home Loan Bank advances and long-term debt	1,038,346		—		1,038,346		—		1,038,346