Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

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

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



	March 31, 2020
	Level 1		Level 2		Level 3		Total
	(in thousands)
Loans held for sale	$	—	$	40,645	$	—	$	40,645
Available for sale investment securities:
State and municipal securities	—		848,084		—		848,084
Corporate debt securities	—		371,318		2,160		373,478
Collateralized mortgage obligations	—		667,652		—		667,652
Residential mortgage-backed securities	—		220,629		—		220,629
Commercial mortgage-backed securities	—		587,325		—		587,325
Auction rate securities	—		—		93,666		93,666
Total available for sale investment securities	—		2,695,008		95,826		2,790,834
Other assets:
Investments held in Rabbi Trust	19,237		—		—		19,237
Derivative assets	536		374,168		—		374,704
Total assets	$	19,773	$	3,109,821	$	95,826	$	3,225,420
Other liabilities:
Deferred compensation liabilities	$	19,237	$	—	$	—	$	19,237
Derivative liabilities	378		184,770		—		185,148
Total liabilities	$	19,615	$	184,770	$	—	$	204,385



	December 31, 2019
	Level 1		Level 2		Level 3		Total
	(in thousands)
Loans held for sale	$	—	$	37,828	$	—	$	37,828
Available for sale investment securities:
State and municipal securities	—		652,927		—		652,927
Corporate debt securities	—		374,957		2,400		377,357
Collateralized mortgage obligations	—		693,718		—		693,718
Residential mortgage-backed securities	—		177,312		—		177,312
Commercial mortgage-backed securities	—		494,297		—		494,297
Auction rate securities	—		—		101,926		101,926
Total available for sale investment securities	—		2,393,211		104,326		2,497,537
Other assets:
Investments held in Rabbi Trust	22,213		—		—		22,213
Derivative assets	230		145,365		—		145,595
Total assets	$	22,443	$	2,576,404	$	104,326	$	2,703,173
Other liabilities:
Deferred compensation liabilities	$	22,213	$	—	$	—	$	22,213
Derivative liabilities	199		76,447		—		76,646
Total liabilities	$	22,412	$	76,447	$	—	$	98,859

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):



	Pooled Trust Preferred Securities			Single-issuer Trust Preferred Securities			ARCs
Three months ended March 31, 2020	(in thousands)
Balance at December 31, 2019	$	—		$	2,400		$	101,926
Unrealized adjustment to fair value ⁽¹⁾	—			(242		)	(8,260		)
Discount accretion ⁽²⁾	—			2			—
Balance at March 31, 2020	$	—		$	2,160		$	93,666

Three months ended March 31, 2019
Balance at December 31, 2018	$	875		$	2,400		$	102,994
Unrealized adjustment to fair value ⁽¹⁾	(105		)	30			(184		)
Balance at March 31, 2019	$	770		$	2,430		$	102,810


(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 at estimated fair value" 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 Level 3 financial assets measured at fair value on a nonrecurring basis:



	March 31, 2020		December 31, 2019
	(in thousands)
Net Loans	$	143,605	$	144,807
OREO	6,593		6,831
MSRs ⁽¹⁾	37,754		45,193
Total assets	$	187,952	$	196,831

Details of Book Value and Fair Value of Financial Instruments

he following tables present the carrying amounts and estimated fair values of the Corporation’s financial instruments as of the periods shown. A general description of the methods and assumptions used to estimate such fair values follows:



	March 31, 2020
			Estimated Fair Value
	Carrying Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	856,360	$	856,360	$	—	$	—	$	856,360
FRB and FHLB stock	118,989		—		118,989		—		118,989
Loans held for sale	40,645		—		40,645		—		40,645
AFS securities	2,790,834		—		2,695,008		95,826		2,790,834
HTM securities	350,606		—		372,273		—		372,273
Net Loans	16,838,895		—		—		16,427,379		16,427,379
Accrued interest receivable	59,365		59,365		—		—		59,365
Other assets	658,025		239,371		374,167		44,487		658,025
FINANCIAL LIABILITIES
Demand and savings deposits	$	14,349,257	$	14,349,257	$	—	$	—	$	14,349,257
Brokered deposits	313,337		273,043		40,294		—		313,337
Time deposits	2,702,432		—		2,730,425		—		2,730,425
Short-term borrowings	1,386,808		1,386,808		—		—		1,386,808
Accrued interest payable	10,890		10,890		—		—		10,890
FHLB advances and long-term debt	1,378,466		—		1,421,214		—		1,421,214
Other liabilities	343,602		139,868		184,771		18,963		343,602

	December 31, 2019
			Estimated Fair Value
	Carrying Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	517,791	$	517,791	$	—	$	—	$	517,791
FRB and FHLB stock	97,422		—		97,422		—		97,422
Loans held for sale	37,828		—		37,828		—		37,828
AFS securities	2,497,537		—		2,393,211		104,326		2,497,537
HTM securities	369,841		—		383,705		—		383,705
Net Loans	16,673,904		—		—		16,485,122		16,485,122
Accrued interest receivable	60,898		60,898		—		—		60,898
Other assets	431,565		234,176		145,365		52,024		431,565
FINANCIAL LIABILITIES
Demand and savings deposits	$	14,327,453	$	14,327,453	$	—	$	—	$	14,327,453
Brokered deposits	264,531		223,982		40,549		—		264,531
Time deposits	2,801,930		—		2,828,988		—		2,828,988
Short-term borrowings	883,241		883,241		—		—		883,241
Accrued interest payable	8,834		8,834		—		—		8,834
FHLB advances and long-term debt	881,769		—		878,385		—		878,385
Other liabilities	221,542		142,508		76,447		2,587		221,542