Fair value measurements (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

The following tables present assets and liabilities at September 30, 2015 and December 31, 2014 measured at estimated fair value on a recurring basis:

	Fair value measurements at September 30, 2015		Level 1 (a)		Level 2 (a)		Level 3
	(in thousands)
Trading account assets	$	340,710		48,006		292,704		—
Investment securities available for sale:
U.S. Treasury and federal agencies		199,394		—		199,394		—
Obligations of states and political subdivisions		6,296		—		6,296		—
Mortgage-backed securities:
Government issued or guaranteed		10,714,048		—		10,714,048		—
Privately issued		82		—		—		82
Collateralized debt obligations		49,876		—		—		49,876
Other debt securities		120,468		—		120,468		—
Equity securities		69,345		40,370		28,975		—
		11,159,509		40,370		11,069,181		49,958
Real estate loans held for sale		493,453		—		493,453		—
Other assets (b)		79,539		—		61,707		17,832
Total assets	$	12,073,211		88,376		11,917,045		67,790
Trading account liabilities	$	233,006		—		233,006		—
Other liabilities (b)		9,489		—		9,304		185
Total liabilities	$	242,495		—		242,310		185
	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 nine months ended September 30, 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 September 30, 2015 were as follows:

	Investment securities available for sale
	Privately issued mortgage-backed securities			Collateralized debt obligations			Other assets and other liabilities
	(in thousands)
Balance – June 30, 2015	$	88		$	50,483		$	11,206
Total gains (losses) realized/unrealized:
Included in earnings		—			—			21,709	(a)
Included in other comprehensive income		—			(472	)(d)		—
Settlements		(6	)		(135	)		—
Transfers in and/or out of Level 3 (b)		—			—			(15,268	)(c)
Balance – September 30, 2015	$	82		$	49,876		$	17,647
Changes in unrealized gains included in earnings related to assets still held at September 30, 2015	$	—		$	—		$	15,488	(a)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended September 30, 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 – June 30, 2014	$	119		$	56,200		$	22,023
Total gains (losses) realized/unrealized:
Included in earnings		—			—			9,657	(a)
Included in other comprehensive income		—			2,201	(d)		—
Settlements		(7	)		(3,593	)		—
Transfers in and/or out of Level 3 (b)		—			—			(15,188	)(c)
Balance – September 30, 2014	$	112		$	54,808		$	16,492
Changes in unrealized gains included in earnings related to assets still held at September 30, 2014	$	—		$	—		$	12,421	(a)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 2015 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, 2015	$	103		$	50,316		$	17,347
Total gains (losses) realized/unrealized:
Included in earnings		—			—			67,611	(a)
Included in other comprehensive income		—			5,153	(d)		—
Settlements		(21	)		(5,593	)		—
Transfers in and/or out of Level 3 (b)		—			—			(67,311	)(c)
Balance – September 30, 2015	$	82		$	49,876		$	17,647
Changes in unrealized gains included in earnings related to assets still held at September 30, 2015	$	—		$	—		$	15,965	(a)

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the nine months ended September 30, 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		—			—			63,557	(a)
Included in other comprehensive income		272	(d)		11,333	(d)		—
Settlements		(2,010	)		(19,608	)		—
Transfers in and/or out of Level 3 (b)		—			—			(51,006	)(c)
Balance – September 30, 2014	$	112		$	54,808		$	16,492
Changes in unrealized gains included in earnings related to assets still held at September 30, 2014	$	—		$	—		$	17,773	(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 (losses) on investment securities in the consolidated statement of comprehensive income.

Quantitative Information Related to Significant Unobservable Inputs

The following tables present quantitative information about significant unobservable inputs used in the fair value measurements for Level 3 assets and liabilities at September 30, 2015 and December 31, 2014:

	Fair value at September 30, 2015		Valuation technique		Unobservable input/assumptions		Range (weighted- average)
	(in thousands)
Recurring fair value measurements
Privately issued mortgage–backed securities	$	82		Two independent pricing quotes		—		—
Collateralized debt obligations		49,876		Discounted cash flow		Probability of default		12%-57% (33%)
						Loss severity		100%
Net other assets (liabilities)(a)		17,647		Discounted cash flow		Commitment expirations		0%-66% (38%)
	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:

	September 30, 2015
	Carrying amount			Estimated fair value			Level 1		Level 2			Level 3
	(in thousands)
Financial assets:
Cash and cash equivalents	$	1,249,704		$	1,249,704		$	1,193,831	$	55,873		$	—
Interest-bearing deposits at banks		4,713,266			4,713,266			—		4,713,266			—
Trading account assets		340,710			340,710			48,006		292,704			—
Investment securities		14,494,539			14,521,740			40,370		14,283,075			198,295
Loans and leases:
Commercial loans and leases		20,233,177			19,920,031			—		—			19,920,031
Commercial real estate loans		28,720,537			28,633,973			—		71,357			28,562,616
Residential real estate loans		8,211,062			8,302,630			—		4,918,613			3,384,017
Consumer loans		11,375,472			11,280,973			—		—			11,280,973
Allowance for credit losses		(933,798	)		—			—		—			—
Loans and leases, net		67,606,450			68,137,607			—		4,989,970			63,147,637
Accrued interest receivable		242,935			242,935			—		242,935			—
Financial liabilities:
Noninterest-bearing deposits	$	(28,189,330	)	$	(28,189,330	)	$	—	$	(28,189,330	)	$	—
Savings deposits and NOW accounts		(41,757,661	)		(41,757,661	)		—		(41,757,661	)		—
Time deposits		(2,791,367	)		(2,810,224	)		—		(2,810,224	)		—
Deposits at Cayman Islands office		(206,185	)		(206,185	)		—		(206,185	)		—
Short-term borrowings		(173,783	)		(173,783	)		—		(173,783	)		—
Long-term borrowings		(10,174,289	)		(10,219,180	)		—		(10,219,180	)		—
Accrued interest payable		(73,475	)		(73,475	)		—		(73,475	)		—
Trading account liabilities		(233,006	)		(233,006	)		—		(233,006	)		—
Other financial instruments:
Commitments to originate real estate loans for sale	$	17,647		$	17,647		$	—	$	—		$	17,647
Commitments to sell real estate loans		(8,379	)		(8,379	)		—		(8,379	)		—
Other credit-related commitments		(118,656	)		(118,656	)		—		—			(118,656	)
Interest rate swap agreements used for interest rate risk management		60,782			60,782			—		60,782			—

	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		73,251			73,251			—		73,251			—