Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Of Assets And Liabilities Measured On Recurring Basis

A summary of fair values for assets and liabilities measured at fair value on a recurring basis is as follows:



	At June 30, 2013
(In thousands)	Carrying Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets held at fair value:
Available for sale securities:
U.S. Treasury Bills	$	200	$	200	$	—	$	—
Agency CMOs	1,003,897		—		1,003,897		—
Agency MBS	1,338,192		—		1,338,192		—
CMBS	440,136		—		440,136		—
CLOs	278,008		—		278,008		—
Pooled trust preferred securities	30,215		—		—		30,215
Single issuer trust preferred securities	44,875		—		44,875		—
Corporate debt	112,671		—		112,671		—
Equity securities	9,166		8,891		275		—
Total available for sale securities	3,257,360		9,091		3,218,054		30,215
Derivative instruments:
Interest rate swaps	37,298		—		37,298		—
Fed Fund futures contracts	141		141		—		—
Mortgage banking derivatives	5,084		—		5,084		—
Investments held in Rabbi Trust	5,604		5,604		—		—
Investments in private equity funds	1,357		—		—		1,357
Total financial assets held at fair value	$	3,306,844	$	14,836	$	3,260,436	$	31,572
Financial liabilities held at fair value:
Derivative instruments:
Interest rate swaps	$	24,433	$	—	$	24,433	$	—
Total financial liabilities held at fair value	$	24,433	$	—	$	24,433	$	—



	At December 31, 2012
(In thousands)	Carrying Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets held at fair value:
Available for sale securities:
U.S. Treasury Bills	$	200	$	200	$	—	$	—
Agency CMOs	1,310,006		—		1,310,006		—
Agency MBS	1,142,280		—		1,142,280		—
CMBS	398,031		—		398,031		—
CLOs	88,540		—		—		88,540
Pooled trust preferred securities	26,207		—		—		26,207
Single issuer trust preferred securities	44,415		—		44,415		—
Corporate debt	118,199		—		118,199		—
Equity securities	8,282		8,082		200		—
Total available for sale securities	3,136,160		8,282		3,013,131		114,747
Derivative instruments:
Interest rate swaps	50,969		—		50,969		—
Mortgage banking derivatives	2,898		—		2,898		—
Investments held in Rabbi Trust	5,741		5,741		—		—
Investments in private equity funds	1,533		—		—		1,533
Total financial assets held at fair value	$	3,197,301	$	14,023	$	3,066,998	$	116,280
Financial liabilities held at fair value:
Derivative instruments:
Interest rate swaps	$	43,172	$	—	$	43,172	$	—
Fed Fund futures contracts	125		125		—		—
Visa swap	4		—		4		—
Total financial liabilities held at fair value	$	43,301	$	125	$	43,176	$	—

Schedule Of Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following table presents the changes in Level 3 assets and liabilities that are measured at fair value on a recurring basis:



	Three months ended June 30,						Six months ended June 30,
(In thousands)	2013			2012			2013			2012
Level 3, beginning of period	$	280,582		$	32,062		$	116,280		$	32,814
Transfers out of Level 3 ^{(1) (2)}	(248,844		)	—			(248,844		)	(975		)
Change in unrealized loss included in other comprehensive income	1,643			(434		)	7,000			692
Unrealized loss included in net income	(20		)	98			(285		)	(622		)
Purchases/capital calls	109			—			159,412			126
Accretion/amortization	146			22			188			16
Calls/paydowns	(2,044		)	(772		)	(2,179		)	(1,075		)
Level 3, end of period	$	31,572		$	30,976		$	31,572		$	30,976

(1)

As of April 1, 2013, the CLO portfolio was transferred from Level 3 to Level 2 based on having more observable inputs in determining fair value. In prior quarters, the CLO portfolio was priced using average non-binding broker quotes. During the current quarter, the Company engaged a third-party pricing vendor to provide monthly fair value measurements. This methodology used is a combination of matrix pricing, observed market activity and metrics. Pricing inputs such as credit spreads are observable and market corroborated and, therefore, the CLO portfolio qualifies for Level 2 categorization. The market for these CLO's is an active market and there is ample price transparency.


(2)	As of January 1, 2012, auction rate preferred securities were transferred from Level 3 to Level 2. These securities are considered to be Level 2 based upon observable market activity at full par value for recent transactions.

Schedule Of Quantitative Inputs And Assumptions For Items Categorized In Level 3 Of The Fair Value Hierarchy

The following table presents information about quantitative inputs and assumptions for items categorized in Level 3 of the fair value hierarchy:



	At June 30, 2013
(Dollars in thousands)	Fair Value		Valuation Methodology	Unobservable Inputs	Range of Inputs (Weighted Average)
Pooled trust preferred securities	$	30,215	Discounted cash flow	Discount rate	5.91 - 9.01% (8.21%)
				Credit spread	246-556 bps (476 bps)

Schedule Of Valuation Methodology And Unobservable Inputs

The table below presents the valuation methodology and unobservable inputs for Level 3 assets measured at fair value on a non-recurring basis:



	At June 30, 2013
(Dollars in thousands)	Fair Value		Valuation Methodology	Unobservable Inputs	Range of Inputs
Impaired Loans	$	42,194	Real Estate Appraisals	Discount for dated appraisal	0% - 30%
				Discount for costs to sell	3.0% - 8.0%
Other Real Estate	$	3,050	Appraisals	Discount for costs to sell	8%
				Discount for appraisal type	25% - 30%
Mortgage Servicing Rights	$	23,384	Discounted cash flow	Constant prepayment rate	6.0% - 25.6%
				Discount Rates	3.9% - 6.7%

Summary Of Estimated Fair Values Of Significant Financial Instruments

A summary of estimated fair values of significant financial instruments consisted of the following:



	At June 30, 2013
(In thousands)	Carrying Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Securities available for sale	$	3,257,360	$	9,091	$	3,218,054	$	30,215
Securities held-to-maturity	3,129,864		—		3,174,148		—
Loans held for sale	81,161		—		—		81,161
Loans and leases, net	12,082,851		—		—		12,183,704
Mortgage servicing assets (a)	18,764		—		—		23,384
Investments in private equity funds	12,587		—		—		12,587
Derivative instruments	37,439		141		37,298		—
Investments held in Rabbi Trust	5,604		5,604		—		—
Liabilities
Deposits other than time deposits	12,494,979		—		12,494,979		—
Time deposits	2,340,596		—		2,364,139		—
Securities sold under agreements to repurchase and other borrowings	1,213,349		—		1,247,264		—
Federal Home Loan Bank advances (b)	1,627,516		—		1,636,387		—
Long-term debt (c)	229,928		—		221,146		—
Derivative instruments	24,433		—		24,433		—



	At December 31, 2012
(In thousands)	Carrying Balance		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Securities available for sale	$	3,136,160	$	8,282	$	3,013,131	$	114,747
Securities held-to-maturity	3,107,529		—		3,264,718		—
Loans held for sale	107,633		—		—		107,633
Loans and leases, net	11,851,567		—		—		12,005,555
Mortgage servicing assets (a)	14,027		—		—		15,881
Investments in private equity funds	11,623		—		—		11,623
Derivative instruments	50,969		—		50,969		—
Investments held in Rabbi Trust	5,741		5,741		—		—
Liabilities
Deposits other than time deposits	11,985,683		—		11,985,683		—
Time deposits	2,545,152		—		2,584,921		—
Securities sold under agreements to repurchase and other borrowings	1,076,160		—		1,134,614		—
Federal Home Loan Bank advances (b)	1,827,612		—		1,843,615		—
Long-term debt (c)	334,276		—		298,807		—
Derivative instruments	43,301		125		43,176		—


(a)	The carrying amount of mortgage servicing assets is net of $0.5 million and $1.8 million reserves at June 30, 2013 and December 31, 2012, respectively. The estimated fair value does not include such adjustments.


(b)	The carrying amount of FHLB advances is net of $73 thousand and $85 thousand in unamortized premiums at June 30, 2013 and December 31, 2012, respectively. The estimated fair value does not include such adjustments.


(c)	The carrying amount of long-term debt is net of $2.7 million and $4.4 million in hedge accounting adjustments and discounts at June 30, 2013 and December 31, 2012, respectively. The estimated fair value does not include such adjustments.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details