Fair value measurements (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

The following tables present assets and liabilities at March 31, 2014 and December 31, 2013 measured at estimated fair value on a recurring basis:

	Fair value measurements at March 31, 2014		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	314,807		49,473		265,334		—
Investment securities available for sale:
U.S. Treasury and federal agencies		42,647		—		42,647		—
Obligations of states and political subdivisions		10,383		—		10,383		—
Mortgage-backed securities:
Government issued or guaranteed		5,801,091		—		5,801,091		—
Privately issued		696		—		—		696
Collateralized debt obligations		61,768		—		—		61,768
Other debt securities		122,249		—		122,249		—
Equity securities		152,737		80,580		72,157		—
		6,191,571		80,580		6,048,527		62,464
Real estate loans held for sale		330,004		—		330,004		—
Other assets (b)		112,704		—		98,826		13,878
Total assets	$	6,949,086		130,053		6,742,691		76,342
Trading account liabilities	$	216,366		—		216,366		—
Other liabilities (b)		4,344		—		3,055		1,289
Total liabilities	$	220,710		—		219,421		1,289

	Fair value measurements at December 31, 2013		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	376,131		51,386		324,745		—
Investment securities available for sale:
U.S. Treasury and federal agencies		37,776		—		37,776		—
Obligations of states and political subdivisions		10,811		—		10,811		—
Mortgage-backed securities:
Government issued or guaranteed		4,165,086		—		4,165,086		—
Privately issued		1,850		—		—		1,850
Collateralized debt obligations		63,083		—		—		63,083
Other debt securities		120,085		—		120,085		—
Equity securities		133,095		82,450		50,645		—
		4,531,786		82,450		4,384,403		64,933
Real estate loans held for sale		468,650		—		468,650		—
Other assets (b)		123,568		—		115,952		7,616
Total assets	$	5,500,135		133,836		5,293,750		72,549
Trading account liabilities	$	249,797		—		249,797		—
Other liabilities (b)		4,392		—		717		3,675
Total liabilities	$	254,189		—		250,514		3,675

(a) There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the three months ended March 31, 2014 and the year ended December 31, 2013.

(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 Recurring Basis

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended March 31, 2014 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance – January 1, 2014	$	1,850		$	63,083		$	3,941
Total gains (losses) realized/unrealized:
Included in earnings		—			—			22,383	(b)
Included in other comprehensive income		67	(e)		4,646	(e)		—
Settlements		(1,221	)		(5,961	)		—
Transfers in and/or out of Level 3 (c)		—			—			(13,735	)(d)
Balance – March 31, 2014	$	696		$	61,768		$	12,589
Changes in unrealized gains included in earnings related to assets still held at March 31, 2014	$	—		$	—		$	15,050	(b)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended March 31, 2013 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance – January 1, 2013	$	1,023,886		$	61,869		$	47,859
Total gains (losses) realized/unrealized:
Included in earnings		(9,800	)(a)		—			43,312	(b)
Included in other comprehensive income		26,381	(e)		740	(e)		—
Settlements		(47,220	)		(891	)		—
Transfers in and/or out of Level 3 (c)		—			—			(55,052	)(d)
Balance – March 31, 2013	$	993,247		$	61,718		$	36,119
Changes in unrealized gains (losses) included in earnings related to assets still held at March 31, 2013	$	(9,800	)(a)	$	—		$	31,398	(b)

(a) Reported as an other-than-temporary impairment loss in the consolidated statement of income.

(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) Transfers out of Level 3 consist of interest rate locks transferred to closed loans.

(e) Reported as net unrealized gains on investment securities in the consolidated statement of comprehensive income.

Quantitative Information Related to Significant Unobservable Inputs

The following tables present quantitative information about the significant unobservable inputs used in the fair value measurements for Level 3 assets and liabilities at March 31, 2014 and December 31, 2013:

	Fair value at March 31, 2014		Valuation technique	Unobservable input/assumptions	Range (weighted- average)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	696	Two independent pricing quotes	—		—
Collateralized debt obligations		61,768	Discounted cash flow	Probability of default		16%-54% (37	%)
				Loss severity		100%
Net other assets (liabilities) (a)		12,589	Discounted cash flow	Commitment expirations		0%-90% (17	%)

	Fair value at December 31, 2013		Valuation technique	Unobservable input/assumptions	Range (weighted- average)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	1,850	Two independent pricing quotes	—		—
Collateralized debt obligations		63,083	Discounted cash flow	Probability of default		17%-55% (39	%)
				Loss severity		100%
Net other assets (liabilities) (a)		3,941	Discounted cash flow	Commitment expirations		0%-90% (20	%)

(a) Other Level 3 assets (liabilities) consist of commitments to originate real estate loans.

Carrying Amounts and Estimated Fair Value for Financial Instrument Assets (Liabilities)

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

	March 31, 2014
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,763,118		$	1,763,118		$	1,689,900	$	73,218		$	—
Interest-bearing deposits at banks		3,299,185			3,299,185			—		3,299,185			—
Trading account assets		314,807			314,807			49,473		265,334			—
Investment securities		10,364,249			10,305,030			80,580		9,997,771			226,679
Loans and leases:
Commercial loans and leases		18,896,070			18,584,218			—		—			18,584,218
Commercial real estate loans		26,104,086			25,970,001			—		38,305			25,931,696
Residential real estate loans		8,774,095			8,733,704			—		5,285,649			3,448,055
Consumer loans		10,360,827			10,271,804			—		—			10,271,804
Allowance for credit losses		(916,768	)		—			—		—			—
Loans and leases, net		63,218,310			63,559,727			—		5,323,954			58,235,773
Accrued interest receivable		242,009			242,009			—		242,009			—
Financial liabilities:
Noninterest-bearing deposits	$	(25,244,200	)	$	(25,244,200	)	$	—	$	(25,244,200	)	$	—
Savings deposits and NOW accounts		(39,804,771	)		(39,804,771	)		—		(39,804,771	)		—
Time deposits		(3,402,515	)		(3,420,917	)		—		(3,420,917	)		—
Deposits at Cayman Islands office		(247,880	)		(247,880	)		—		(247,880	)		—
Short-term borrowings		(230,209	)		(230,209	)		—		(230,209	)		—
Long-term borrowings		(6,251,197	)		(6,388,067	)		—		(6,388,067	)		—
Accrued interest payable		(59,685	)		(59,685	)		—		(59,685	)		—
Trading account liabilities		(216,366	)		(216,366	)		—		(216,366	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	12,589		$	12,589		$	—	$	—		$	12,589
Commitments to sell real estate loans		1,055			1,055			—		1,055			—
Other credit-related commitments		(114,641	)		(114,641	)		—		—			(114,641	)
Interest rate swap agreements used for interest rate risk management		94,716			94,716			—		94,716			—

	December 31, 2013
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,672,934		$	1,672,934		$	1,596,877	$	76,057		$	—
Interest-bearing deposits at banks		1,651,138			1,651,138			—		1,651,138			—
Trading account assets		376,131			376,131			51,386		324,745			—
Investment securities		8,796,497			8,690,494			82,450		8,384,106			223,938
Loans and leases:
Commercial loans and leases		18,705,216			18,457,288			—		—			18,457,288
Commercial real estate loans		26,148,208			26,018,195			—		67,505			25,950,690
Residential real estate loans		8,928,221			8,867,872			—		5,432,207			3,435,665
Consumer loans		10,291,514			10,201,087			—		—			10,201,087
Allowance for credit losses		(916,676	)		—			—		—			—
Loans and leases, net		63,156,483			63,544,442			—		5,499,712			58,044,730
Accrued interest receivable		222,558			222,558			—		222,558			—
Financial liabilities:
Noninterest-bearing deposits	$	(24,661,007	)	$	(24,661,007	)	$	—	$	(24,661,007	)	$	—
Savings deposits and NOW accounts		(38,611,021	)		(38,611,021	)		—		(38,611,021	)		—
Time deposits		(3,523,838	)		(3,542,789	)		—		(3,542,789	)		—
Deposits at Cayman Islands office		(322,746	)		(322,746	)		—		(322,746	)		—
Short-term borrowings		(260,455	)		(260,455	)		—		(260,455	)		—
Long-term borrowings		(5,108,870	)		(5,244,902	)		—		(5,244,902	)		—
Accrued interest payable		(43,419	)		(43,419	)		—		(43,419	)		—
Trading account liabilities		(249,797	)		(249,797	)		—		(249,797	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	3,941		$	3,941		$	—	$	—		$	3,941
Commitments to sell real estate loans		12,360			12,360			—		12,360			—
Other credit-related commitments		(118,886	)		(118,886	)		—		—			(118,886	)
Interest rate swap agreements used for interest rate risk management		102,875			102,875			—		102,875			—