Estimated Fair Values (Tables)

6 Months Ended

Jun. 30, 2015

Estimated Fair Values For Certain Financial Assets And Financial Liabilities

For all other financial assets and financial liabilities, the carrying value is a reasonable estimate of the fair value as of June 30, 2015 and December 31, 2014. The carrying value and fair value for these assets and liabilities are equivalent because they are relatively short term in nature and there is no interest rate or credit risk that would cause the fair value to differ from the carrying value.



(Dollars in thousands)	June 30, 2015				December 31, 2014
	Carrying value		Fair value		Carrying value		Fair value
Cash and due from banks	$	514,404	$	514,404	$	604,182	$	604,182
Overnight investments	1,703,341		1,703,341		1,724,919		1,724,919
Investment securities available for sale	7,350,194		7,350,194		7,171,917		7,171,917
Investment securities held to maturity	351		365		518		544
Loans held for sale	85,040		85,040		63,696		63,696
Net loans and leases	19,311,868		18,755,676		18,564,999		18,046,497
Receivable from the FDIC for loss share agreements ⁽¹⁾	5,808		5,808		28,701		18,218
Income earned not collected	66,729		66,729		57,254		57,254
Federal Home Loan Bank stock	27,736		27,736		39,113		39,113
Preferred stock and other acquired financial assets	3,016		3,061		13,689		14,708
Mortgage servicing rights	18,162		20,078		16,688		16,736
Deposits	26,511,896		25,915,474		25,678,577		25,164,683
Short-term borrowings	723,225		723,225		987,184		987,184
Long-term obligations	475,568		493,715		351,320		367,732
Payable to the FDIC for loss share agreements	122,038		128,049		116,535		122,168
Accrued interest payable	5,835		5,835		8,194		8,194
Interest rate swap	3,052		3,052		4,337		4,337

⁽¹⁾ At June 30, 2015, the carrying value of the FDIC receivable approximates the fair value due to the short term nature of the majority of loss share agreements. At December 31, 2014, the fair value of the FDIC receivable is estimated based on discounted future cash flows using current discount rates and excludes receivable related to accretable yield to be amortized in prospective periods.

Assets And Liabilities Carried At Fair Value On A Recurring Basis

For assets and liabilities carried at fair value on a recurring basis, the following table provides fair value information as of June 30, 2015 and December 31, 2014.



	June 30, 2015
			Fair value measurements using:
(Dollars in thousands)	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Assets measured at fair value
Investment securities available for sale
U.S. Treasury	$	2,206,859	$	—	$	2,206,859	$	—
Government agency	776,244		—		776,244		—
Mortgage-backed securities	4,367,091		—		4,367,091		—
Total investment securities available for sale	7,350,194		—		7,350,194		—
Loans held for sale	85,040		—		85,040		—
Liabilities measured at fair value
Interest rate swaps accounted for as cash flow hedges	$	3,052	$	—	$	3,052	$	—

	December 31, 2014
			Fair value measurements using:
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Assets measured at fair value
Investment securities available for sale
U.S. Treasury	$	2,629,670	$	—	$	2,629,670	$	—
Government agency	908,817		—		908,817		—
Mortgage-backed securities	3,633,304		—		3,633,304		—
Municipal securities	126		—		126		—
Total investment securities available for sale	7,171,917		—		7,171,917		—
Loans held for sale	63,696		—		63,696		—
Liabilities measured at fair value
Interest rate swaps accounted for as cash flow hedges	$	4,337	$	—	$	4,337	$	—

Fair Value Option

The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for residential real estate loans held for sale measured at fair value as of June 30, 2015 and December 31, 2014.



	June 30, 2015
(Dollars in thousands)	Fair Value		Aggregate Unpaid Principal Balance		Difference
Loans held for sale	$	85,040	$	84,257	$	783

	December 31, 2014
	Fair Value		Aggregate Unpaid Principal Balance		Difference
Loans held for sale	$	63,696	$	62,996	$	700

No loans held for sale were 90 or more days past due or on nonaccrual status as of June 30, 2015 or December 31, 2014.

The changes in fair value for residential real estate loans held for sale for which we elected the fair value option are included in the table below for the three and six months ended June 30, 2015.



	Three months ended June 30, 2015			Six months ended June 30, 2015
(Dollars in thousands)	Gains(Losses) From Fair Value Changes			Gains(Losses) From Fair Value Changes
Loans held for sale	$	(461	)	$	(31	)

Assets And Liabilities Carried At Fair Value On A Nonrecurring Basis

For financial assets and liabilities carried at fair value on a nonrecurring basis, the following table provides fair value information as of June 30, 2015 and December 31, 2014.



	June 30, 2015
			Fair value measurements using:
(Dollars in thousands)	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Impaired loans	$	70,446	$	—	$	—	$	70,446
Other real estate not covered under loss share agreements remeasured during current year	22,644		—		—		22,644
Other real estate covered under loss share agreements remeasured during current year	3,749		—		—		3,749
Mortgage servicing rights	221		—		—		221

	December 31, 2014
			Fair value measurements using:
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Impaired loans	$	73,170	$	—	$	—	$	73,170
Other real estate not covered under loss share agreements remeasured during current year	40,714		—		—		40,714
Other real estate covered under loss share agreements remeasured during current year	17,664		—		—		17,664
Mortgage servicing rights	13,562		—		—		13,562

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

+ References + Details