Fair Value (Tables)

6 Months Ended

Jun. 30, 2011

Schedule of Assets and Liabilities Measured at Fair Value by Class on a Recurring Basis


(In thousands)	June 30, 2011
	Level 1		Level 2		Level 3		Total

ASSETS
Investment securities:
Available-for-sale:
U.S. Treasury, agencies and corporations	$	704,547	$	1,816,524			$	2,521,071
Municipal securities				119,312	$	18,862		138,174
Asset-backed securities:
Trust preferred – banks and insurance				572		1,097,917		1,098,489
Trust preferred – real estate investment trusts						19,131		19,131
Auction rate						91,104		91,104
Other (including ABS CDOs)				8,098		45,376		53,474
Mutual funds and stock		157,378		6,142				163,520

		861,925		1,950,648		1,272,390		4,084,963
Trading account				51,152				51,152
Other noninterest-bearing investments:
Private equity				4,885		136,079		140,964
Other assets:
Derivatives:
Interest rate related and other				18,146				18,146
Interest rate swaps for customers				59,863				59,863
Foreign currency exchange contracts		4,078						4,078

		4,078		78,009				82,087

	$	866,003	$	2,084,694	$	1,408,469	$	4,359,166

LIABILITIES
Securities sold, not yet purchased	$	8,013	$	34,696			$	42,709
Other liabilities:
Derivatives:
Interest rate related and other				235				235
Interest rate swaps for customers				63,460				63,460
Foreign currency exchange contracts		3,319						3,319
Total return swap					$	5,420		5,420

		3,319		63,695		5,420		72,434
Other						442		442

	$	11,332	$	98,391	$	5,862	$	115,585


	June 30, 2010
	Level 1		Level 2		Level 3		Total

ASSETS
Investment securities:
Available-for-sale:
U.S. Treasury, agencies and corporations	$	37,596	$	1,391,355			$	1,428,951
Municipal securities				166,667	$	57,755		224,422
Asset-backed securities:
Trust preferred – banks and insurance				1,686		1,311,398		1,313,084
Trust preferred – real estate investment trusts						23,493		23,493
Auction rate						157,078		157,078
Other (including ABS CDOs)				13,015		71,821		84,836
Mutual funds and stock		177,819		6,765				184,584

		215,415		1,579,488		1,621,545		3,416,448
Trading account				85,707				85,707
Other noninterest-bearing investments:
Private equity				4,794		147,612		152,406
Other assets:
Derivatives:
Interest rate related and other				42,073				42,073
Interest rate swaps for customers				83,645				83,645
Foreign currency exchange contracts		6,128						6,128

		6,128		125,718				131,846

	$	221,543	$	1,795,707	$	1,769,157	$	3,786,407

LIABILITIES
Securities sold, not yet purchased	$	39,796	$	41,715			$	81,511
Other liabilities:
Derivatives:
Interest rate related and other				3,864				3,864
Interest rate swaps for customers				89,178				89,178
Foreign currency exchange contracts		5,855						5,855

		5,855		93,042				98,897
Other					$	470		470

	$	45,651	$	134,757	$	470	$	180,878

Schedule of Inputs and Assumptions Used to Fair Value Certain Asset-Backed Securities

(Dollars in thousands)

Fair value at
June 30,
2011

Valuation
approach

Constant
default
rate ("CDR")

Loss
severity

Prepayment rate

Asset-backed securities:

Trust preferred – predominantly banks

896,944

Income

^{Pool specific3}

100

Pool specific⁷

Trust preferred – predominantly insurance

356,061

Income

^{Pool specific4}

100

4.5% per year

Trust preferred – individual banks

18,493

Market

1,271,498

Trust preferred – real estate
investment trusts

19,131

Income

^{Pool specific5}

22-100

0% per year

Other (including ABS CDOs)

68,666

Income

Collateral specific

⁶

21.5-100

Collateral weighted average life

¹	Includes $1,098.5 million of AFS securities and $173.0 million of HTM securities.

²	Includes $53.5 million of AFS securities and $15.2 million of HTM securities.

³	CDR ranges: yr 1 – 0.01% to 7.20%; yrs 2-5 – 0.03% to 0.44%; yrs 6 to maturity – 0.50% to 0.54%.

⁴	CDR ranges: yr 1 – 0.04% to 3.91%; yrs 2-5 – 0.08% to 0.25%; yrs 6 to maturity – 0.50%.

⁵	CDR ranges: yr 1 – 4.9% to 8.8%; yrs 2-3 – 3.7% to 5.9%; yrs 4-6 – 1.0%; yrs 6 to maturity – 0.50%.

⁶	These are predominantly ABS CDOs whose collateral is rated. CDR and loss severities are built up from the loan level and vary by collateral ratings, asset class, and vintage.

⁷	CPR ranges: yrs 1-3 – 0% to 6.13%; yrs 4-5 – 0% to 18.38%; yrs 6 to maturity – 2.00%.

Schedule of Fair Value of Predominantly Bank Trust Preferred


(Dollars in thousands)
Vintage year	Fair value at June 30, 2011		Percentage of total fair value									Percentage of total fair value by vintage
			Percentage of total fair value
			AAA			A			BBB
2001	$	98,797		9.9	%		1.0	%		0.1	%		11.0	%
2002		234,133		23.5			2.6			—			26.1
2003		296,569		22.1			10.8			0.2			33.1
2004		153,240		7.5			9.6			—			17.1
2005		15,266		1.1			0.6			—			1.7
2006		59,875		3.2			3.0			0.4			6.6
2007		39,064		4.4			—			—			4.4

	$	896,944		71.7	%		27.6	%		0.7	%		100.0	%

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Level 3 Inputs

	Level 3 Instruments
		Three Months Ended June 30, 2011
(In thousands)		Municipal securities			Trust preferred – banks and insurance			Trust preferred – REIT			Auction rate			Other asset-backed			Private equity investments			Derivatives			Other liabilities

Balance at March 31, 2011		$	19,057		$	1,183,999		$	19,714		$	109,244		$	69,487		$	142,547		$	(10,511	)	$	(442	)
Total net gains (losses) included in:
Statement of income:
Accretion of purchase discount on securities available-for-sale			21			1,413						1			34
Dividends and other investment income																		4,858
Equity securities losses, net																		(1,635	)
Fixed income securities gains (losses), net						3,595						875			(6,935	)
Net impairment losses on investment securities						(3,046	)								(2,112	)
Other noninterest expense
Other comprehensive income (loss)			(216	)		(6,852	)		(583	)		(41	)		5,076
Purchases																		9,466
Sales						(71,940	)								(19,310	)		(4,009	)
Redemptions and paydowns						(9,252	)					(18,975	)		(864	)		(15,148	)		5,091

Balance at June 30, 2011		$	18,862		$	1,097,917		$	19,131		$	91,104		$	45,376		$	136,079		$	(5,420	)	$	(442	)


	Level 3 Instruments
	Six Months Ended June 30, 2011
(In thousands)	Municipal securities			Trust preferred – banks and insurance			Trust preferred – REIT			Auction rate			Other asset-backed			Private equity investments			Derivatives			Other liabilities

Balance at December 31, 2010	$	22,289		$	1,241,694		$	19,165		$	109,609		$	69,630		$	141,690		$	(15,925	)	$	(561	)
Total net gains (losses) included in:
Statement of income:
Accretion of purchase discount on securities available-for-sale		190			2,890						9			73
Dividends and other investment income																	5,565
Equity securities losses, net																	(738	)
Fixed income securities gains (losses), net		18			7,063			(3,605	)		882			(6,928	)
Net impairment losses on investment securities					(4,866	)		(1,285	)					(2,112	)
Other noninterest expense																							119
Other comprehensive income (loss)		(515	)		(57,893	)		5,394			(61	)		6,400
Purchases																	12,799
Sales		(895	)		(72,881	)		(538	)		(135	)		(19,310	)		(7,286	)
Redemptions and paydowns		(2,225	)		(18,090	)					(19,200	)		(2,377	)		(15,951	)		10,505

Balance at June 30, 2011	$	18,862		$	1,097,917		$	19,131		$	91,104		$	45,376		$	136,079		$	(5,420	)	$	(442	)


	Level 3 Instruments
	Three Months Ended June 30, 2010
(In thousands)	Municipal securities			Trust preferred – banks and insurance			Trust preferred – REIT			Auction rate		Other asset-backed			Private equity investments			Other liabilities

Balance at March 31, 2010	$	63,206		$	1,351,269		$	23,854		$	156,795	$	57,373		$	161,884		$	(553	)
Total net gains (losses) included in:
Statement of income:
Dividends and other investment income																2,930
Equity securities losses, net																(1,502	)
Fixed income securities gains, net		404			71						38
Net impairment losses on investment securities					(14,634	)		(1,643	)				(1,842	)
Other noninterest expense																			83
Other comprehensive income (loss)		(361	)		(21,846	)		1,282			190		19,172
Purchases, sales, issuances, and settlements, net		(5,494	)		(3,462	)					55		(2,882	)		(15,700	)

Balance at June 30, 2010	$	57,755		$	1,311,398		$	23,493		$	157,078	$	71,821		$	147,612		$	(470	)


	Level 3 Instruments
	Six Months Ended June 30, 2010
(In thousands)	Municipal securities			Trust preferred – banks and insurance			Trust preferred – REIT			Auction rate			Other asset-backed			Private equity investments			Other liabilities

Balance at December 31, 2009	$	64,314		$	1,359,444		$	24,018		$	159,440		$	62,430		$	158,941		$	(522	)
Total net gains (losses) included in:
Statement of income:
Dividends and other investment income																	5,284
Equity securities losses, net																	(4,667	)
Fixed income securities gains, net		433			658						265			355
Net impairment losses on investment securities					(41,860	)		(3,725	)					(3,786	)
Other noninterest expense																				52
Other comprehensive income (loss)		(463	)		(1,960	)		3,150			963			24,723
Purchases, sales, issuances, and settlements, net		(6,529	)		(4,884	)		50			(3,590	)		(11,901	)		(11,946	)

Balance at June 30, 2010	$	57,755		$	1,311,398		$	23,493		$	157,078		$	71,821		$	147,612		$	(470	)

Schedule of Realized Gains (Losses) Using Level 3 Inputs


(In thousands)	Three Months Ended June 30,					Six Months Ended June 30,
	2011			2010		2011			2010
Dividends and other investment income	$	1,619		$	1,290	$	3,250		$	2,194
Equity securities gains, net		—			1,157		—			905
Fixed income securities gains (losses), net		(2,465	)		513		(2,570	)		1,711

Schedule of Assets with Fair Value Changes on Nonrecurring Basis


									Gains (losses) from fair value changes
	Fair value at June 30, 2011								Three months ended			Six months ended
(In thousands)	Level 1		Level 2		Level 3		Total		June 30, 2011

ASSETS
Impaired loans			$	14,555			$	14,555	$	(1,719	)	$	(5,473	)
Other real estate owned				88,192				88,192		(14,182	)		(35,803	)

	$	–	$	102,747	$	–	$	102,747	$	(15,901	)	$	(41,276	)


									Gains (losses) from fair value changes
	Fair value at June 30, 2010								Three months ended			Six months ended
(In thousands)	Level 1		Level 2		Level 3		Total		June 30, 2010

ASSETS
HTM securities adjusted for OTTI					$	3,657	$	3,657	$	(139	)	$	(151	)
Impaired loans			$	287,570				287,570		(21,498	)		(93,145	)
Other real estate owned				144,146				144,146		(51,333	)		(81,307	)

	$	–	$	431,716	$	3,657	$	435,373	$	(72,970	)	$	(174,603	)

Schedule of Carrying Values and Estimated Fair Values of Financial Instruments


	June 30, 2011				June 30, 2010
(In thousands)	Carrying value		Estimated fair value		Carrying value		Estimated fair value
Financial assets:
HTM investment securities	$	829,702	$	762,998	$	852,606	$	802,370
Loans and leases (including loans held for sale), net of allowance		35,744,787		35,426,094		36,628,561		36,328,746

Financial liabilities:
Time deposits		3,775,409		3,811,120		4,664,845		4,718,138
Foreign deposits		1,437,067		1,438,250		1,683,925		1,684,090
Other short-term borrowings		147,945		149,265		218,589		221,776
Long-term debt (less fair value hedges)		1,867,326		2,260,641		1,919,163		2,373,906