Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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:



	June 30, 2018
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	35,898	$	—	$	35,898
Available for sale investment securities:
U.S. Government sponsored agency securities	—		26,526		—		26,526
State and municipal securities	—		407,696		—		407,696
Corporate debt securities	—		87,795		4,075		91,870
Collateralized mortgage obligations	—		724,322		—		724,322
Residential mortgage-backed securities	—		1,000,964		—		1,000,964
Commercial mortgage-backed securities	—		238,783		—		238,783
Auction rate securities	—		—		103,122		103,122
Total available for sale investment securities	—		2,486,086		107,197		2,593,283
Investments held in Rabbi Trust	19,510		—		—		19,510
Other assets	639		57,851		—		58,490
Total assets	$	20,149	$	2,579,835	$	107,197	$	2,707,181
Other liabilities	$	20,034	$	62,673	$	—	$	82,707



	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
Investments held in Rabbi Trust	18,982		—		—		18,982
Other assets	469		44,539		—		45,008
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 June 30, 2018
	Pooled Trust Preferred Securities		Single-issuer Trust Preferred Securities		ARCs
	(in thousands)
Balance at March 31, 2018	$	865	$	3,095	$	103,049
Unrealized adjustment to fair value ⁽¹⁾	10		102		73
Discount accretion ⁽²⁾	—		3		—
Balance at June 30, 2018	$	875	$	3,200	$	103,122

	Three months ended June 30, 2017
Balance at March 31, 2017	$	422	$	2,750	$	97,439
Unrealized adjustment to fair value ⁽¹⁾	—		22		386
Discount accretion ⁽²⁾	—		3		98
Balance at June 30, 2017	$	422	$	2,775	$	97,923

	Six months ended June 30, 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⁾	168		144		4,454
Discount accretion ⁽²⁾	—		6		—
Balance at June 30, 2018	$	875	$	3,200	$	103,122

	Six months ended June 30, 2017
Balance at December 31, 2016	$	422	$	2,450	$	97,256
Unrealized adjustment to fair value ⁽¹⁾	—		319		472
Discount accretion ⁽²⁾	—		6		195
Balance at June 30, 2017	$	422	$	2,775	$	97,923


(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:



	June 30, 2018		December 31, 2017
	(in thousands)
Net loans	$	141,072	$	149,608
OREO	11,181		9,823
MSRs	37,894		37,663
Total assets	$	190,147	$	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 June 30, 2018 and December 31, 2017. In addition, a general description of the methods and assumptions used to estimate such fair values is also provided.



	June 30, 2018
	Amortized Cost		Level 1		Level 2		Level 3		Estimated Fair Value
	(in thousands)
FINANCIAL ASSETS
Cash and due from banks	$	99,742	$	99,742	$	—	$	—	$	99,742
Interest-bearing deposits with other banks	298,087		298,087		—		—		298,087
Federal Reserve Bank and Federal Home Loan Bank stock	66,715		—		66,715		—		66,715
Loans held for sale	35,898		—		35,898		—		35,898
Available for sale investment securities	2,593,283		—		2,486,086		107,197		2,593,283
Net Loans	15,636,919		—		—		14,996,906		14,996,906
Accrued interest receivable	55,208		55,208		—		—		55,208
Other financial assets	229,475		122,547		57,851		49,077		229,475
FINANCIAL LIABILITIES
Demand and savings deposits	$	12,776,849	$	12,776,849	$	—	$	—	$	12,776,849
Brokered deposits	161,447		161,447		—		—		161,447
Time deposits	2,661,503		—		2,656,421		—		2,656,421
Short-term borrowings	983,833		983,833		—		—		983,833
Accrued interest payable	8,293		8,293		—		—		8,293
Other financial liabilities	251,170		188,497		62,673		—		251,170
Federal Home Loan Bank advances and long-term debt	991,948		—		964,318		—		964,318

	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