Fair value measurements (Tables)

9 Months Ended

Sep. 30, 2011

Fair value measurements [Abstract]

Assets and liabilities measured at estimated fair value on a recurring basis

The following tables present assets and liabilities at September 30, 2011 and December 31, 2010 measured at estimated fair value on a recurring basis:

	Fair value measurements at September 30, 2011		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	605,557		53,453		552,104		—
Investment securities available for sale:
U.S. Treasury and federal agencies		71,028		—		71,028		—
Obligations of states and political subdivisions		46,792		—		46,792		—
Mortgage-backed securities:
Government issued or guaranteed		3,877,038		—		3,877,038		—
Privately issued residential		1,215,078		—		—		1,215,078
Privately issued commercial		16,829		—		—		16,829
Collateralized debt obligations		51,354		—		—		51,354
Other debt securities		180,853		—		180,853		—
Equity securities		176,906		163,189		13,717		—
		5,635,878		163,189		4,189,428		1,283,261
Real estate loans held for sale		276,623		—		276,623		—
Other assets (b)		157,061		—		149,064		7,997
Total assets	$	6,675,119		216,642		5,167,219		1,291,258
Trading account liabilities	$	458,220		—		458,220		—
Other liabilities (b)		5,583		—		5,523		60
Total liabilities	$	463,803		—		463,743		60

	Fair value measurements at December 31, 2010		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	523,834		53,032		470,802		—
Investment securities available for sale:
U.S. Treasury and federal agencies		63,434		—		63,434		—
Obligations of states and political subdivisions		60,425		—		60,425		—
Mortgage-backed securities:
Government issued or guaranteed		3,306,241		—		3,306,241		—
Privately issued residential		1,435,561		—		—		1,435,561
Privately issued commercial		22,407		—		—		22,407
Collateralized debt obligations		110,756		—		—		110,756
Other debt securities		298,900		—		298,900		—
Equity securities		115,768		106,872		8,896		—
		5,413,492		106,872		3,737,896		1,568,724
Real estate loans held for sale		544,567		—		544,567		—
Other assets (b)		114,666		—		111,839		2,827
Total assets	$	6,596,559		159,904		4,865,104		1,571,551
Trading account liabilities	$	333,222		—		333,222		—
Other liabilities (b)		3,607		—		3,024		583
Total liabilities	$	336,829		—		336,246		583

(a) There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the three months and nine months ended September 30, 2011 and 2010.

(b) Comprised predominantly of interest rate swap agreements used for interest rate risk management (Level 2), commitments to sell real estate loans (Level 2) and commitments to originate real estate loans to be held for sale (Level 3).

Changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended September 30, 2011 were as follows:

	Investment securities available for sale
	Privately issued residential mortgage-backed securities			Privately issued commercial mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance – June 30, 2011	$	1,306,202		$	17,233		$	61,601		$	13,171
Total gains (losses) realized/unrealized:
Included in earnings		(9,642	)(a)		—			—			13,565	(b)
Included in other comprehensive income		(4,030	)		1,581			(9,482	)		—
Settlements		(77,452	)		(1,985	)		(765	)		—
Transfers in and/or out of Level 3 (c)		—			—			—			(18,799	)
Balance – September 30, 2011	$	1,215,078		$	16,829		$	51,354		$	7,937
Changes in unrealized gains (losses) included in earnings related to assets still held at September 30, 2011	$	(9,642	)(a)	$	—		$	—		$	5,926	(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended September 30, 2010 were as follows:

	Investment securities available for sale
	Privately issued residential mortgage-backed securities			Privately issued commercial mortgage-backed securities			Collateralized debt obligations			Other assets and  other liabilities
	(in thousands)
Balance – June 30, 2010	$	1,598,033		$	26,643		$	118,040		$	20,843
Total gains (losses) realized/unrealized:
Included in earnings		(6,675	)(a)		—			(2,857	)(a)		38,399	(b)
Included in other comprehensive income		37,634			(1,369	)		(5,592	)		—
Settlements		(105,624	)		(1,794	)		(249	)		—
Transfers in and/or out of Level 3 (c)		—			—			—			(32,825	)
Balance – September 30, 2010	$	1,523,368		$	23,480		$	109,342		$	26,417
Changes in unrealized gains (losses) included in earnings related to assets still held at September 30, 2010	$	(6,675	)(a)	$	—		$	(2,857	)(a)	$	23,910	(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 2011 were as follows:

	Investment securities available for sale
	Privately issued residential mortgage-backed securities			Privately issued commercial mortgage-backed securities			Collateralized debt obligations			Other assets and  other liabilities
	(in thousands)
Balance – January 1, 2011	$	1,435,561		$	22,407		$	110,756		$	2,244
Total gains (losses) realized/unrealized:
Included in earnings		(41,713	)(a)		—			—			56,809	(b)
Included in other comprehensive income		95,526			99			(2,276	)		—
Purchases		—			—			50,790			—
Sales		—			—			(105,643	)		—
Settlements		(274,296	)		(5,677	)		(2,273	)		—
Transfers in and/or out of Level 3 (c)		—			—			—			(51,116	)
Balance – September 30, 2011	$	1,215,078		$	16,829		$	51,354		$	7,937
Changes in unrealized gains (losses) included in earnings related to assets still held at September 30, 2011	$	(41,713	)(a)	$	—		$	—		$	7,932	(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 2010 were as follows:

	Investment securities available for sale
	Privately issued residential mortgage-backed securities			Privately issued commercial mortgage-backed securities			Collateralized debt obligations			Other debt securities			Other assets and  other liabilities
	(in thousands)
Balance – January 1, 2010	$	2,064,904		$	25,166		$	115,346		$	420		$	(80	)
Total gains (losses) realized/unrealized:
Included in earnings		(41,018	)(a)		—			(5,703	)(a)		—			86,249	(b)
Included in other comprehensive income		152,882			4,725			215			35			—
Settlements		(298,152	)		(6,411	)		(516	)		—			—
Transfers in and/or out of Level 3 (c)		(355,248	)(d)		—			—			(455	)		(59,752	)
Balance – September 30, 2010	$	1,523,368		$	23,480		$	109,342		$	—		$	26,417
Changes in unrealized gains (losses) included in earnings related to assets still held at September 30, 2010	$	(41,018	)(a)	$	—		$	(5,703	)(a)	$	—		$	26,326	(b)

(a) Reported as an other-than-temporary impairment loss in the consolidated statement of income or as gain (loss) on bank investment securities.

(b) Reported as mortgage banking revenues in the consolidated statement of income and includes the fair value of commitment issuances and expirations.

(c) The Company’s policy for transfers between fair value levels is to recognize the transfer as of the actual date of the event or change in circumstances that caused the transfer.

(d) As a result of the Company’s adoption of new accounting rules governing the consolidation of variable interest entities, effective January 1, 2010 the Company derecognized $355 million of available-for-sale investment securities previously classified as Level 3 measurements.

Carrying amounts and estimated fair value for financial instrument assets(liabilities)

The carrying amounts and calculated estimates of fair value for financial instrument assets (liabilities) are presented in the following table:

	September 30, 2011						December 31, 2010
	Carrying amount			Calculated estimate			Carrying amount			Calculated estimate
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,354,057		$	1,354,057		$	933,755		$	933,755
Interest-bearing deposits at banks		2,226,779			2,226,779			101,222			101,222
Trading account assets		605,557			605,557			523,834			523,834
Investment securities		7,173,797			7,109,175			7,150,540			7,051,454
Loans and leases:
Commercial loans and leases		15,218,502			15,013,979			13,390,610			13,135,569
Commercial real estate loans		23,961,306			23,671,716			21,183,161			20,840,346
Residential real estate loans		7,065,451			6,927,276			5,928,056			5,699,028
Consumer loans		12,156,005			11,913,880			11,488,555			11,178,583
Allowance for credit losses		(908,525	)		—			(902,941	)		—
Loans and leases, net		57,492,739			57,526,851			51,087,441			50,853,526
Accrued interest receivable		231,553			231,553			202,182			202,182
Financial liabilities:
Noninterest-bearing deposits	$	(19,637,491	)	$	(19,637,491	)	$	(14,557,568	)	$	(14,557,568	)
Savings deposits and NOW accounts		(32,552,528	)		(32,552,528	)		(27,824,630	)		(27,824,630	)
Time deposits		(6,777,499	)		(6,805,449	)		(5,817,170	)		(5,865,779	)
Deposits at Cayman Islands office		(514,871	)		(514,871	)		(1,605,916	)		(1,605,916	)
Short-term borrowings		(694,398	)		(694,398	)		(947,432	)		(947,432	)
Long-term borrowings		(6,748,857	)		(6,854,853	)		(7,840,151	)		(7,937,397	)
Accrued interest payable		(98,137	)		(98,137	)		(71,954	)		(71,954	)
Trading account liabilities		(458,220	)		(458,220	)		(333,222	)		(333,222	)
Other financial instruments:
Commitments to originate real estate loans for sale	$	7,937		$	7,937		$	2,244		$	2,244
Commitments to sell real estate loans		(5,223	)		(5,223	)		12,178			12,178
Other credit-related commitments		(98,520	)		(98,520	)		(74,426	)		(74,426	)
Interest rate swap agreements used for interest rate risk management		148,764			148,764			96,637			96,637