Fair value measurements (Tables)

3 Months Ended

Mar. 31, 2015

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, 2015 and December 31, 2014 measured at estimated fair value on a recurring basis:

	Fair value measurements at March 31, 2015		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	363,085		48,978		314,107		—
Investment securities available for sale:
U.S. Treasury and federal agencies		163,234		—		163,234		—
Obligations of states and political subdivisions		7,850		—		7,850		—
Mortgage-backed securities:
Government issued or guaranteed		10,265,221		—		10,265,221		—
Privately issued		95		—		—		95
Collateralized debt obligations		47,278		—		—		47,278
Other debt securities		121,273		—		121,273		—
Equity securities		98,549		71,804		26,745		—
		10,703,500		71,804		10,584,323		47,373
Real estate loans held for sale		540,546		—		540,546		—
Other assets (b)		101,383		—		75,088		26,295
Total assets	$	11,708,514		120,782		11,514,064		73,668
Trading account liabilities	$	240,168		—		240,168		—
Other liabilities (b)		12,146		—		12,081		65
Total liabilities	$	252,314		—		252,249		65

	Fair value measurements at December 31, 2014		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	308,175		51,416		256,759		—
Investment securities available for sale:
U.S. Treasury and federal agencies		161,947		—		161,947		—
Obligations of states and political subdivisions		8,198		—		8,198		—
Mortgage-backed securities:
Government issued or guaranteed		8,731,123		—		8,731,123		—
Privately issued		103		—		—		103
Collateralized debt obligations		50,316		—		—		50,316
Other debt securities		121,488		—		121,488		—
Equity securities		83,757		64,841		18,916		—
		9,156,932		64,841		9,041,672		50,419
Real estate loans held for sale		742,249		—		742,249		—
Other assets (b)		92,129		—		74,733		17,396
Total assets	$	10,299,485		116,257		10,115,413		67,815
Trading account liabilities	$	203,464		—		203,464		—
Other liabilities (b)		8,596		—		8,547		49
Total liabilities	$	212,060		—		212,011		49

(a) There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the three months ended March 31, 2015 and the year ended December 31, 2014.

(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, 2015 were as follows:

	Investment securities available for sale						Other assets and other liabilities
	Privately issued mortgage-backed securities			Collateralized debt obligations
	(in thousands)
Balance – January 1, 2015	$	103		$	50,316		$	17,347
Total gains (losses) realized/unrealized:
Included in earnings		—			—			29,770	(a)
Included in other comprehensive income		—			(2,004	) (d)		—
Settlements		(8	)		(1,034	)		—
Transfers in and/or out of Level 3 (b)		—			—			(20,887	) (c)
Balance – March 31, 2015	$	95		$	47,278		$	26,230
Changes in unrealized gains included in earnings related to assets still held at March 31, 2015	$	—		$	—		$	22,636	(a)

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						Other assets and other liabilities
	Privately issued mortgage-backed securities			Collateralized debt obligations
	(in thousands)
Balance – January 1, 2014	$	1,850		$	63,083		$	3,941
Total gains (losses) realized/unrealized:
Included in earnings		—			—			22,383	(a)
Included in other comprehensive income		67	(d)		4,646	(d)		—
Settlements		(1,221	)		(5,961	)		—
Transfers in and/or out of Level 3 (b)		—			—			(13,735	) (c)
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	(a)

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

(b) 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.

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

(d) 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, 2015 and December 31, 2014:

	Fair value at March 31, 2015		Valuation technique	Unobservable input/assumptions		Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	95	Two independent pricing quotes		—	—
Collateralized debt obligations		47,278	Discounted cash flow		Probability of default	12%-57% (45%)
					Loss severity	100%
Net other assets (liabilities) (a)		26,230	Discounted cash flow		Commitment expirations	0%-96% (19%)
	Fair value at December 31, 2014		Valuation technique	Unobservable input/assumptions		Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	103	Two independent pricing quotes		—	—
Collateralized debt obligations		50,316	Discounted cash flow		Probability of default	12%-57% (36%)
					Loss severity	100%
Net other assets (liabilities) (a)		17,347	Discounted cash flow		Commitment expirations	0%-96% (17%)

(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, 2015
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,366,853		$	1,366,853		$	1,311,917	$	54,936		$	—
Interest-bearing deposits at banks		6,291,491			6,291,491			—		6,291,491			—
Trading account assets		363,085			363,085			48,978		314,107			—
Investment securities		14,393,270			14,444,292			71,804		14,162,805			209,683
Loans and leases:
Commercial loans and leases		19,775,494			19,484,920			—		—			19,484,920
Commercial real estate loans		27,845,710			27,746,166			—		117,366			27,628,800
Residential real estate loans		8,504,119			8,609,248			—		5,119,739			3,489,509
Consumer loans		10,973,719			10,880,895			—		—			10,880,895
Allowance for credit losses		(921,373	)		—			—		—			—
Loans and leases, net		66,177,669			66,721,229			—		5,237,105			61,484,124
Accrued interest receivable		244,079			244,079			—		244,079			—
Financial liabilities:
Noninterest-bearing deposits	$	(27,181,120	)	$	(27,181,120	)	$	—	$	(27,181,120	)	$	—
Savings deposits and NOW accounts		(43,288,329	)		(43,288,329	)		—		(43,288,329	)		—
Time deposits		(2,946,126	)		(2,967,329	)		—		(2,967,329	)		—
Deposits at Cayman Islands office		(178,545	)		(178,545	)		—		(178,545	)		—
Short-term borrowings		(193,495	)		(193,495	)		—		(193,495	)		—
Long-term borrowings		(10,509,143	)		(10,641,367	)		—		(10,641,367	)		—
Accrued interest payable		(77,903	)		(77,903	)		—		(77,903	)		—
Trading account liabilities		(240,168	)		(240,168	)		—		(240,168	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	26,230		$	26,230		$	—	$	—		$	26,230
Commitments to sell real estate loans		(9,848	)		(9,848	)		—		(9,848	)		—
Other credit-related commitments		(112,511	)		(112,511	)		—		—			(112,511	)
Interest rate swap agreements used for interest rate risk management		72,855			72,855			—		72,855			—

	December 31, 2014
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,373,357		$	1,373,357		$	1,296,923	$	76,434		$	—
Interest-bearing deposits at banks		6,470,867			6,470,867			—		6,470,867			—
Trading account assets		308,175			308,175			51,416		256,759			—
Investment securities		12,993,542			13,023,956			64,841		12,750,396			208,719
Loans and leases:
Commercial loans and leases		19,461,292			19,188,574			—		—			19,188,574
Commercial real estate loans		27,567,569			27,487,818			—		307,667			27,180,151
Residential real estate loans		8,657,301			8,729,056			—		5,189,086			3,539,970
Consumer loans		10,982,794			10,909,623			—		—			10,909,623
Allowance for credit losses		(919,562	)		—			—		—			—
Loans and leases, net		65,749,394			66,315,071			—		5,496,753			60,818,318
Accrued interest receivable		227,348			227,348			—		227,348			—
Financial liabilities:
Noninterest-bearing deposits	$	(26,947,880	)	$	(26,947,880	)	$	—	$	(26,947,880	)	$	—
Savings deposits and NOW accounts		(43,393,618	)		(43,393,618	)		—		(43,393,618	)		—
Time deposits		(3,063,973	)		(3,086,126	)		—		(3,086,126	)		—
Deposits at Cayman Islands office		(176,582	)		(176,582	)		—		(176,582	)		—
Short-term borrowings		(192,676	)		(192,676	)		—		(192,676	)		—
Long-term borrowings		(9,006,959	)		(9,139,789	)		—		(9,139,789	)		—
Accrued interest payable		(63,372	)		(63,372	)		—		(63,372	)		—
Trading account liabilities		(203,464	)		(203,464	)		—		(203,464	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	17,347		$	17,347		$	—	$	—		$	17,347
Commitments to sell real estate loans		(7,065	)		(7,065	)		—		(7,065	)		—
Other credit-related commitments		(119,079	)		(119,079	)		—		—			(119,079	)
Interest rate swap agreements used for interest rate risk management