Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Fair Value Assets And Liabilities Measured On A Recurring Basis [Table Text Block]

The fair value of financial assets and liabilities that are measured on a recurring basis are as follows as of December 31, 2013 (in thousands):



	Total		Quoted Prices in Active Markets for Identical Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs
Assets:
Trading securities:
U.S. Government agency debentures	$	34,120	$	—	$	34,120	$	—
U.S. agency residential mortgage-backed securities	21,011		—		21,011		—
Municipal and other tax-exempt securities	27,350		—		27,350		—
Other trading securities	9,135		—		9,135		—
Total trading securities	91,616		—		91,616		—
Available for sale securities:
U.S. Treasury	1,042		1,042		—		—
Municipal and other tax-exempt	73,775		—		55,970		17,805
U.S. agency residential mortgage-backed securities	7,716,010		—		7,716,010		—
Privately issued residential mortgage-backed securities	221,099		—		221,099		—
Commercial mortgage-backed securities guaranteed by U.S. government agencies	2,055,804		—		2,055,804		—
Other debt securities	35,241		—		30,529		4,712
Perpetual preferred stock	22,863		—		22,863		—
Equity securities and mutual funds	21,328		—		17,121		4,207
Total available for sale securities	10,147,162		1,042		10,119,396		26,724
Fair value option securities:
U.S. agency residential mortgage-backed securities	157,431		—		157,431		—
Other securities	9,694		—		9,694		—
Total fair value option securities	167,125		—		167,125		—
Residential mortgage loans held for sale	200,546		—		200,546		—
Mortgage servicing rights, net¹	153,333		—		—		153,333
Derivative contracts, net of cash margin²	265,012		2,712		262,300		—
Other assets – private equity funds	27,341		—		—		27,341
Liabilities:
Derivative contracts, net of cash margin²	247,185		—		247,185		—


¹	A reconciliation of the beginning and ending fair value of mortgage servicing rights and disclosures of significant assumptions used to determine fair value are presented in Note 7, Mortgage Banking Activities.


²	See Note 3 for detail of fair value of derivative contracts by contract type. Derivative contracts based on quoted prices in active markets or identical instruments (Level 1) are exchange-traded energy derivative contracts, net of cash margin.

The fair value of financial assets and liabilities that are measured on a recurring basis are as follows as of December 31, 2012 (in thousands):



	Total		Quoted Prices in Active Markets for Identical Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs
Assets:
Trading securities:
U.S. Government agency debentures	$	16,545	$	—	$	16,545	$	—
U.S. agency residential mortgage-backed securities	86,361		—		86,361		—
Municipal and other tax-exempt securities	90,326		—		90,326		—
Other trading securities	20,870		—		20,870		—
Total trading securities	214,102		—		214,102		—
Available for sale securities:
U.S. Treasury	1,002		1,002		—		—
Municipal and other tax-exempt	87,142		—		46,440		40,702
U.S. agency residential mortgage-backed securities	9,889,821		—		9,889,821		—
Privately issued residential mortgage-backed securities	325,163		—		325,163		—
Commercial mortgage-backed securities guaranteed by U.S. government agencies	895,075		—		895,075		—
Other debt securities	36,389		—		30,990		5,399
Perpetual preferred stock	25,072		—		25,072		—
Equity securities and mutual funds	27,557		4,165		21,231		2,161
Total available for sale securities	11,287,221		5,167		11,233,792		48,262
Fair value option securities:
U.S. agency residential mortgage-backed securities	257,040		—		257,040		—
Corporate debt securities	26,486		—		26,486		—
Other securities	770		—		770		—
Total fair value option securities	284,296		—		284,296		—
Residential mortgage loans held for sale	293,762		—		293,762		—
Mortgage servicing rights, net¹	100,812		—		—		100,812
Derivative contracts, net of cash margin²	338,106		11,597		326,509		—
Other assets – private equity funds	28,169		—		—		28,169
Liabilities:
Derivative contracts, net of cash margin ²	283,589		—		283,589		—


¹	A reconciliation of the beginning and ending fair value of mortgage servicing rights and disclosures of significant assumptions used to determine fair value are presented in Note 7, Mortgage Banking Activities.


²	See Note 3 for detail of fair value of derivative contracts by contract type. Derivative contracts based on quoted prices in active markets for identical instruments (Level 1) are exchange-traded energy and agricultural derivative contracts, net of cash margin.

Fair Value Assets Measured On Recurring Basis Significant Unobservable Inputs [Table Text Block]

The following represents the changes related to assets measured at fair value on a recurring basis using significant unobservable inputs (in thousands):



	Available for Sale Securities								Other assets – private equity funds
	Municipal and other tax-exempt			Other debt securities			Equity securities and mutual funds		Other assets – private equity funds
Balance, December 31, 2011	$	42,353		$	5,900		$	—	$	30,902
Transfer to Level 3 from Level 2	—			—			2,161		—
Purchases and capital calls	—			—			—		3,446
Redemptions and distributions	(988		)	(500		)	—		(9,819		)
Gain (loss) recognized in earnings:
Gain (loss) on other assets, net	—			—			—		3,640
Gain on available for sale securities, net	1			—			—		—
Other-than-temporary impairment losses	(642		)	—			—		—
Other comprehensive loss	(22		)	(1		)	—		—
Balance, December 31, 2012	40,702			5,399			2,161		28,169
Transfer to Level 3 from Level 2	—			—			—		—
Purchases and capital calls	—			—			—		1,415
Redemptions and distributions	(19,238		)	(500		)	—		(5,294		)
Gain (loss) recognized in earnings:
Gain on other assets, net	—			—			—		3,051
Gain on available for sale securities, net	1,216			—			—		—
Other-than-temporary impairment losses	(1,369		)	—			—		—
Other comprehensive income (loss)	(3,506		)	(187		)	2,046		—
Balance, December 31, 2013	$	17,805		$	4,712		$	4,207	$	27,341

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

A summary of quantitative information about assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of December 31, 2013 follows (in thousands):

Quantitative Information about Level 3 Recurring Fair Value Measurements

Par

Value

Amortized

Cost

Fair

Value

Valuation Technique(s)

Unobservable Input

Range

(Weighted Average)

Available for sale securities

Municipal and other tax-exempt securities – Investment grade

18,695

18,624

17,805

Discounted cash flows

Interest rate spread

4.97%-5.27% (5.16%)

95.02%-95.50% (95.24%)

Other debt securities

4,900

4,712

Discounted cash flows

Interest rate spread

5.67% (5.67%)

⁴

96.16% (96.16%)

Equity securities and other mutual funds

N/A

2,420

4,207

Publicly announced preliminary purchase price information from acquirer.

Discount for settlement uncertainty.

N/A

⁵

Other assets - private equity funds

N/A

27,341

Net asset value reported by underlying fund

N/A


¹	Discounted cash flows developed using discount rates primarily based on reference to interest rate spreads for comparable securities of similar duration and credit rating as determined by the nationally-recognized rating agencies, adjusted for lack of trading volume


²	Interest rate yields used to value investment grade tax-exempt securities represent a spread of 467 to 518 basis points over average yields for comparable tax-exempt securities.


³	Represents fair value as a percentage of par value.


⁴	Interest rate yields used to value investment grade taxable securities based on comparable short-term taxable securities which are generally yielding less than 1%.


⁵	Fair value of shares of a smaller privately-held financial institution were valued using preliminary announced purchase information by a publicly-traded acquirer.

The fair value of these securities measured at fair value using significant unobservable inputs are sensitive primarily to changes in interest rate spreads. At December 31, 2013, for tax-exempt securities rated investment grade by all nationally-recognized rating agencies, a 100 basis point increase in the spreads over average yields for comparable securities would result in an additional decrease in the fair value of $172 thousand. For taxable securities rated investment grade by all nationally-recognized rating agencies, a 100 basis point increase in the spreads over average yield for comparable securities would result in an additional decrease in the fair value of $36 thousand.

A summary of quantitative information about Recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of December 31, 2012 follows (in thousands):

Quantitative Information about Level 3 Recurring Fair Value Measurements

Par

Value

Amortized

Cost⁶

Fair

Value

Valuation Technique(s)

Unobservable Input

Range

(Weighted Average)

Available for sale securities

Municipal and other tax-exempt securities

Investment grade

28,570

28,473

28,318

Discounted cash flows

Interest rate spread

1.00%-1.50% (1.25%)

98.83%-99.43% (99.12%)

Below investment grade

17,000

12,384

Discounted cash flows

Interest rate spread

7.21%-9.83% (7.82%)

⁴

72.79%-73.00% (72.85%)

Total municipal and other tax-exempt securities

45,570

40,857

40,702

Other debt securities

5,400

5,399

Discounted cash flows

Interest rate spread

1.65%-1.71% (1.70%)

⁵

100% (100%)

Equity securities and other mutual funds

N/A

2,420

2,161

Tangible book value per share of publicly traded financial institutions of similar size, less liquidity discount.

Peer group tangible book per share and liquidity discount

N/A

⁷

Other assets - private equity funds

N/A

28,169

Net asset value reported by underlying fund

N/A


¹	Discounted cash flows developed using discount rates primarily based on reference to interest rate spreads for comparable securities of similar duration and credit rating as determined by the nationally-recognized rating agencies, adjusted for lack of trading volume


²	Interest rate yields used to value investment grade tax-exempt securities represent a spread of 75 to 80 basis points over average yields for comparable tax-exempt securities.


³	Represents fair value as a percentage of par value


⁴	Interest rate yields determined using a spread of 700 basis points over comparable municipal securities of varying durations.


⁵	Interest rate yields used to value investment grade taxable securities based on comparable short-term taxable securities which are generally yielding less than 1%.


⁶	Amortized cost reduced by other-than-temporary impairments recorded in earnings. See Note 2 for additional discussion.


⁷	Fair value of shares of a smaller privately-held financial institution were valued using the tangible book value per share of similarly sized financial institutions within the immediate geographical market with a discount of 20% due to the liquidity of the shares.

A summary of quantitative information about Non-recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of December 31, 2013 follows (in thousands):



Quantitative Information about Level 3 Non-recurring Fair Value Measurements
	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)

Impaired loans	$	4,622	Appraised value, as adjusted	Broker quotes and management's knowledge of industry and collateral.	N/A
Real estate and other repossessed assets	191		Listing value, less cost to sell	Marketability adjustments off appraised value	80%-85% (82%)¹


¹	Marketability adjustments includes consideration of estimated costs to sell which is approximately 15% of the fair value.

A summary of quantitative information about Non-recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of December 31, 2012 follows (in thousands):



Quantitative Information about Level 3 Non-recurring Fair Value Measurements
	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)

Impaired loans	$	3,891	Appraised value, as adjusted	Broker quotes and management's knowledge of industry and collateral.	N/A
Real estate and other repossessed assets	4,421		Listing value, less cost to sell	Marketability adjustments off appraised value	58%-85%(76%)¹


¹	Marketability adjustments includes consideration of estimated costs to sell which is approximately 15% of the fair value. In addition, $345 thousand of real estate and other repossessed assets at December 31, 2012 are based on uncorroborated expert opinions or management's knowledge of the collateral or industry and do not have an independently appraised value.

Fair Value Assets Measured on Nonrecurring Basis [Table Text Block]

The following represents the carrying value of assets measured at fair value on a non-recurring basis and related losses recorded during the year. The carrying value represents only those assets with the balance sheet date for which the fair value was adjusted during the year:



	Carrying Value at December 31, 2013						Fair Value Adjustments for the Year Ended December 31, 2013 Recognized in:
	Quoted Prices in Active Markets for Identical Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs		Gross charge-offs against allowance for loan losses		Net losses and expenses of repossessed assets, net
Impaired loans	$	—	$	8,380	$	4,622	$	6,598	$	—
Real estate and other repossessed assets	—		20,733		191		—		5,489



	Carrying Value at December 31, 2012						Fair Value Adjustments for the Three Months Ended December 31, 2012 Recognized in:
	Quoted Prices in Active Markets for Identical Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs		Gross charge-offs against allowance for loan losses		Net losses and expenses of repossessed assets, net
Impaired loans	$	—	$	21,589	$	3,891	$	11,615	$	—
Real estate and other repossessed assets	—		39,077		4,421		—		15,954

Fair Value of Financial Instruments [Table Text Block]

The following table presents the carrying values and estimated fair values of all financial instruments, including those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or non-recurring (dollars in thousands):



	December 31, 2013
	Carrying Value			Range of Contractual Yields			Average Re-pricing (in years)	Discount Rate			Estimated Fair Value
Cash and due from banks	$	512,931									$	512,931
Interest-bearing cash and cash equivalents	574,282										574,282
Trading securities:
U.S. Government agency obligations	34,120										34,120
U.S. agency residential mortgage-backed securities	21,011										21,011
Municipal and other tax-exempt securities	27,350										27,350
Other trading securities	9,135										9,135
Total trading securities	91,616										91,616
Investment securities:
Municipal and other tax-exempt	440,187										439,870
U.S. agency residential mortgage-backed securities	50,182										51,864
Other debt securities	187,509										195,393
Total investment securities	677,878										687,127
Available for sale securities:
U.S. Treasury	1,042										1,042
Municipal and other tax-exempt	73,775										73,775
U.S. agency residential mortgage-backed securities	7,716,010										7,716,010
Privately issued residential mortgage-backed securities	221,099										221,099
Commercial mortgage-backed securities guaranteed by U.S. government agencies	2,055,804										2,055,804
Other debt securities	35,241										35,241
Perpetual preferred stock	22,863										22,863
Equity securities and mutual funds	21,328										21,328
Total available for sale securities	10,147,162										10,147,162
Fair value option securities:
U.S. agency residential mortgage-backed securities	157,431										157,431
Corporate debt securities	—										—
Other securities	9,694										9,694
Total fair value option securities	167,125										167,125
Residential mortgage loans held for sale	334,250										200,546
Loans:
Commercial	7,943,221			0.04	% -	30.00%	0.49	0.48	% -	4.33%	7,835,325
Commercial real estate	2,415,353			0.38	% -	18.00%	0.78	1.21	% -	3.49%	2,394,443
Residential mortgage	2,052,026			0.38	% -	18.00%	2.63	0.59	% -	4.73%	2,068,690
Consumer	381,664			0.38	% -	21.00%	0.55	1.22	% -	3.75%	375,962
Total loans	12,792,264										12,674,420
Allowance for loan losses	(185,396		)								—
Net loans	12,606,868										12,674,420
Mortgage servicing rights	153,333										153,333
Derivative instruments with positive fair value, net of cash margin	265,012										265,012
Other assets – private equity funds	27,341										27,341
Deposits with no stated maturity	17,573,334										17,573,334
Time deposits	2,695,993			0.01	% -	9.64%	2.12	0.75	% -	1.33%	2,697,290
Other borrowings	2,721,888			0.25	% -	4.78%	0.03	0.08	% -	2.64%	2,693,788
Subordinated debentures	347,802			0.95	% -	5.00%	2.63	2.22%			344,783
Derivative instruments with negative fair value, net of cash margin	247,185										247,185



	December 31, 2012
	Carrying Value			Range of Contractual Yields			Average Re-pricing (in years)	Discount Rate			Estimated Fair Value
Cash and due from banks	$	710,739									$	710,739
Interest-bearing cash and cash equivalents	575,500										575,500
Trading securities:
Obligations of the U.S. government	16,545										16,545
U.S. agency residential mortgage-backed securities	86,361										86,361
Municipal and other tax-exempt securities	90,326										90,326
Other trading securities	20,870										20,870
Total trading securities	214,102										214,102
Investment securities:
Municipal and other tax-exempt	232,700										235,940
U.S. agency residential mortgage-backed securities	82,767										85,943
Other debt securities	184,067										206,575
Total investment securities	499,534										528,458
Available for sale securities:
U.S. Treasury	1,002										1,002
Municipal and other tax-exempt	87,142										87,142
U.S. agency residential mortgage-backed securities	9,889,821										9,889,821
Privately issued residential mortgage-backed securities	325,163										325,163
Commercial mortgage-backed securities guaranteed by U.S. government agencies	895,075										895,075
Other debt securities	36,389										36,389
Perpetual preferred stock	25,072										25,072
Equity securities and mutual funds	27,557										27,557
Total available for sale securities	11,287,221										11,287,221
Fair value option securities:
U.S. agency residential mortgage-backed securities	257,040										257,040
Corporate debt securities	26,486										26,486
Other securities	770										770
Total fair value option securities	284,296										284,296
Residential mortgage loans held for sale	293,762										293,762
Loans:
Commercial	7,641,912			0.21	% -	30.00%	0.69	0.51	% -	3.59%	7,606,505
Commercial real estate	2,228,999			0.21	% -	18.00%	0.92	1.26	% -	3.18%	2,208,217
Residential mortgage	2,045,040			0.38	% -	18.00%	3.34	0.86	% -	3.09%	2,110,773
Consumer	395,505			0.38	% -	21.00%	0.32	1.37	% -	3.60%	388,748
Total loans	12,311,456										12,314,243
Allowance for loan losses	(215,507		)								—
Net loans	12,095,949										12,314,243
Mortgage servicing rights	100,812										100,812
Derivative instruments with positive fair value, net of cash margin	338,106										338,106
Other assets – private equity funds	28,169										28,169
Deposits with no stated maturity	18,211,068										18,211,068
Time deposits	2,967,992			0.01	% -	9.64%	2.15	0.80	% -	1.15%	3,441,610
Other borrowings	2,706,221			0.09	% -	5.25%	—	0.09	% -	2.67%	2,369,224
Subordinated debentures	347,633			1.00	% -	5.00%	3.56	2.40%			411,243
Derivative instruments with negative fair value, net of cash margin	283,589										283,589

- 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.

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- 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.

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