Fair Value Measurement (Tables)

9 Months Ended

Sep. 30, 2014

Schedule Of Carrying Value And Fair Value Of Financial Instruments Not Recorded At Fair Value

The following table presents estimated fair values of the Company's financial instruments as of September 30, 2014 and December 31, 2013, whether or not recognized or recorded at fair value in the Condensed Consolidated Balance Sheets:



(in thousands)		September 30, 2014				December 31, 2013
		Carrying		Fair		Carrying		Fair
	Level	Value		Value		Value		Value
FINANCIAL ASSETS:
Cash and cash equivalents	1	$	1,443,710	$	1,443,710	$	790,423	$	790,423
Trading securities	1,2	9,727		9,727		5,958		5,958
Securities available for sale	2	2,400,061		2,400,061		1,790,978		1,790,978
Securities held to maturity	3	5,356		5,692		5,563		5,874
Loans held for sale	2	265,800		265,800		104,664		104,664
Non-covered loans and leases, net	3	14,868,004		14,845,248		7,269,089		7,250,596
Covered loans, net	3	275,562		309,804		363,992		409,555
Restricted equity securities	1	120,759		120,759		30,685		30,685
Residential mortgage servicing rights	3	118,725		118,725		47,765		47,765
Bank owned life insurance assets	1	293,511		293,511		96,938		96,938
FDIC indemnification asset	3	7,811		2,978		23,174		6,001
Derivatives	2,3	21,389		21,389		17,921		17,921
Visa Class B common stock	3	—		40,414		—		41,700
FINANCIAL LIABILITIES:
Deposits	1,2	$	16,727,610	$	16,728,741	$	9,117,660	$	9,125,832
Securities sold under agreements to repurchase	2	339,367		339,367		224,882		224,882
Term debt	2	1,057,140		1,079,457		251,494		270,004
Junior subordinated debentures, at fair value	3	247,528		247,528		87,274		87,274
Junior subordinated debentures, at amortized cost	3	101,657		73,321		101,899		72,009
Derivatives	2	21,286		21,286		14,562		14,562

Schedule Of Fair Value Assets And Liabilities Measured On Recurring Basis

Fair Value of Assets and Liabilities Measured on a Recurring Basis

The following tables present information about the Company's assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013:



(in thousands)	September 30, 2014
Description	Total		Level 1		Level 2		Level 3
FINANCIAL ASSETS:
Trading securities
Obligations of states and political subdivisions	$	219	$	—	$	219	$	—
Equity securities	4,918		4,918		—		—
Other investments securities(1)	4,590		—		4,590		—
Available for sale securities
U.S. Treasury and agencies	230		—		230		—
Obligations of states and political subdivisions	341,246		—		341,246		—
Residential mortgage-backed securities and collateralized mortgage obligations	2,056,532		—		2,056,532		—
Investments in mutual funds and other equity securities	2,053		—		2,053		—
Loans held for sale, at fair value	265,800				265,800
Residential mortgage servicing rights, at fair value	118,725		—		—		118,725
Derivatives
Interest rate lock commitments	2,180		—		—		2,180
Interest rate forward sales commitments	246		—		246		—
Interest rate swaps	18,963		—		18,963		—
Total assets measured at fair value	$	2,815,702	$	4,918	$	2,689,879	$	120,905
FINANCIAL LIABILITIES:
Junior subordinated debentures, at fair value	$	247,528	$	—	$	—	$	247,528
Derivatives
Interest rate lock commitments	—		—		—		—
Interest rate forward sales commitments	1,010		—		1,010		—
Interest rate swaps	20,276		—		20,276		—
Total liabilities measured at fair value	$	268,814	$	—	$	21,286	$	247,528



(in thousands)	December 31, 2013
Description	Total		Level 1		Level 2		Level 3
FINANCIAL ASSETS:
Trading securities
Obligations of states and political subdivisions	$	2,366	$	—	$	2,366	$	—
Equity securities	3,498		3,498		—		—
Other investments securities(1)	94		—		94		—
Available for sale securities
U.S. Treasury and agencies	268		—		268		—
Obligations of states and political subdivisions	235,205		—		235,205		—
Residential mortgage-backed securities and collateralized mortgage obligations	1,553,541		—		1,553,541		—
Investments in mutual funds and other equity securities	1,964		—		1,964		—
Loans held for sale, at fair value	104,664				104,664
Residential mortgage servicing rights, at fair value	47,765		—		—		47,765
Derivatives
Interest rate lock commitments	706		—		—		706
Interest rate forward sales commitments	1,250		—		1,250		—
Interest rate swaps	15,965		—		15,965		—
Total assets measured at fair value	$	1,967,286	$	3,498	$	1,915,317	$	48,471
FINANCIAL LIABILITIES:
Junior subordinated debentures, at fair value	$	87,274	$	—	$	—	$	87,274
Derivatives
Interest rate lock commitments	—		—		—		—
Interest rate forward sales commitments	6		—		6		—
Interest rate swaps	14,556		—		14,556		—
Total liabilities measured at fair value	$	101,836	$	—	$	14,562	$	87,274


(1)	Principally represents U.S. Treasury and agencies or residential mortga

Schedule of a Description of the Valuation Technique, Unobservable Input, and Qualitative Information for the Company's Assets and Liabilities Classfied as Level 3

The following table provides a description of the valuation technique, unobservable input, and qualitative information about the unobservable inputs for the Company's assets and liabilities classified as Level 3 and measured at fair value on a recurring basis at September 30, 2014:



Financial Instrument	Valuation Technique	Unobservable Input	Weighted Average (Range)
Residential mortgage servicing rights	Discounted cash flow
		Constant Prepayment Rate	11.52%
		Discount Rate	9.16%
Interest rate lock commitment	Internal Pricing Model
		Pull-through rate	76.6%
Junior subordinated debentures	Discounted cash flow
		Credit Spread	6.18%

Schedule Of Reconciliation Of Assets And Liabilities Measured At Fair Value Using Significant Unobservable Inputs (Level 3) On A Recurring Basis

The following table provides a reconciliation of assets and liabilities measured at fair value using significant unobservable inputs (Level 3) on a recurring basis during the three and nine months ended September 30, 2014 and 2013.



(in thousands)
Three Months Ended September 30,	Beginning Balance		Change included in earnings			Purchases and issuances		Sales and settlements			Ending Balance		Net change in unrealized gains or (losses) relating to items held at end of period
2014
Residential mortgage servicing rights	$	114,192	$	(4,280	)	$	8,813	$	—		$	118,725	$	(3,554	)
Interest rate lock commitment, net	4,405		3,250			1,929		(7,404		)	2,180		2,180
Junior subordinated debentures, at fair value	246,077		3,745			—		(2,294		)	247,528		3,745

2013
Residential mortgage servicing rights	$	38,192	$	(411	)	$	4,072	$	—		$	41,853	$	746
Interest rate lock commitment, net	638		(638		)	17,695		(14,687		)	3,008		3,008
Junior subordinated debentures, at fair value	86,159		1,533			—		(974		)	86,718		1,533



(in thousands)
Nine Months Ended September 30,	Beginning Balance		Change included in earnings			Purchases and issuances		Sales and settlements			Ending Balance		Net change in unrealized gains or (losses) relating to items held at end of period
2014
Residential mortgage servicing rights	$	47,765	$	(8,393	)	$	79,353	$	—		$	118,725	$	(6,424	)
Interest rate lock commitment, net	706		(868		)	18,106		(15,764		)	2,180		2,180
Junior subordinated debentures, at fair value	87,274		8,512			156,840		(5,098		)	247,528		8,512

2013
Residential mortgage servicing rights	$	27,428	$	(757	)	$	15,182	$	—		$	41,853	$	(755	)
Interest rate lock commitment, net	1,478		(1,478		)	52,192		(49,184		)	3,008		3,008
Junior subordinated debentures, at fair value	85,081		4,563			—		(2,926		)	86,718		4,563

Fair Value Assets And Liabilities Measured On Nonrecurring Basis



(in thousands)	September 30, 2014
	Total		Level 1		Level 2		Level 3
Non-covered loans and leases	$	17,549	$	—	$	—	$	17,549
Non-covered other real estate owned	—		—		—		—
Covered other real estate owned	234		—		—		234
	$	17,783	$	—	$	—	$	17,783



(in thousands)	December 31, 2013
	Total		Level 1		Level 2		Level 3
Non-covered loans and leases	$	20,421	$	—	$	—	$	20,421
Non-covered other real estate owned	1,986		—		—		1,986
Covered other real estate owned	2,770		—		—		2,770
	$	25,177	$	—	$	—	$	25,177

Losses Resulting From Nonrecurring Fair Value Adjustments

The following table presents the losses resulting from nonrecurring fair value adjustments for the three and nine months ended September 30, 2014 and 2013:



(in thousands)	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2014		2013		2014		2013
Non-covered loans and leases	$	2,326	$	5,663	$	7,585	$	18,126
Non-covered other real estate owned	49		11		164		448
Covered other real estate owned	41		24		41		704
Total loss from nonrecurring measurements	$	2,416	$	5,698	$	7,790	$	19,278

Fair Value Option

The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held for sale accounted for under the fair value option as of September 30, 2014 and December 31, 2013:

(in thousands)

September 30, 2014

December 31, 2013

Fair Value

Aggregate

Less Aggregate

Aggregate

Less Aggregate

Unpaid

Fair

Principal

Fair

Principal

Value

Balance

Value

Balance

Loans held for sale

265,800

256,037

9,763

104,664

101,795

2,869

- 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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- 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.

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