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Fair value measurements (Tables)
12 Months Ended
Dec. 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 December 31, 2015 and 2014 measured at estimated fair value on a recurring basis:

 

     Fair Value
Measurements at
December 31,
2015
     Level 1(a)      Level 2(a)      Level 3  
     (In thousands)  

Trading account assets

   $ 273,783       $ 56,763       $ 217,020       $   

Investment securities available for sale:

           

U.S. Treasury and federal agencies

     299,997                 299,997           

Obligations of states and political subdivisions

     6,028                 6,028           

Mortgage-backed securities:

           

Government issued or guaranteed

     11,686,628                 11,686,628           

Privately issued

     74                         74   

Collateralized debt obligations

     47,393                         47,393   

Other debt securities

     118,880                 118,880           

Equity securities

     83,671         65,178         18,493           
  

 

 

    

 

 

    

 

 

    

 

 

 
     12,242,671         65,178         12,130,026         47,467   
  

 

 

    

 

 

    

 

 

    

 

 

 

Real estate loans held for sale

     392,036                 392,036           

Other assets(b)

     56,551                 46,269         10,282   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

   $ 12,965,041       $ 121,941       $ 12,785,351       $ 57,749   
  

 

 

    

 

 

    

 

 

    

 

 

 

Trading account liabilities

   $ 160,745               $ 160,745       $   

Other liabilities(b)

     1,905                 1,502         403   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

   $ 162,650               $ 162,247       $ 403   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     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 years ended December 31, 2015 and 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 year ended December 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 realized/unrealized:

       

Included in earnings

                    87,061 (b) 

Included in other comprehensive income

             3,254 (c)        

Settlements

     (29      (6,177       

Transfers in and/or out of Level 3(a)

                    (94,529 )(d) 
  

 

 

    

 

 

   

 

 

 

Balance — December 31, 2015

   $ 74       $ 47,393      $ 9,879   
  

 

 

    

 

 

   

 

 

 

Changes in unrealized gains included in earnings related to assets still held at December 31, 2015

   $       $      $ 8,850 (b) 
  

 

 

    

 

 

   

 

 

 

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the year ended December 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 realized/unrealized:

      

Included in earnings

                   83,417 (b) 

Included in other comprehensive income

     271 (c)      8,209 (c)        

Settlements

     (2,018     (20,976       

Transfers in and/or out of Level 3(a)

                   (70,011 )(d) 
  

 

 

   

 

 

   

 

 

 

Balance — December 31, 2014

   $ 103      $ 50,316      $ 17,347   
  

 

 

   

 

 

   

 

 

 

Changes in unrealized gains included in earnings related to assets still held at December 31, 2014

   $      $      $ 18,196 (b) 
  

 

 

   

 

 

   

 

 

 

 

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the year ended December 31, 2013 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, 2013

   $ 1,023,886      $ 61,869      $ 47,859   

Total gains (losses) realized/unrealized:

      

Included in earnings

     (56,102 )(e)             97,845 (b) 

Included in other comprehensive income

     116,359 (c)      4,508 (c)        

Sales

     (978,608              

Settlements

     (103,685     (3,294       

Transfers in and/or out of Level 3(a)

                   (141,763 )(d) 
  

 

 

   

 

 

   

 

 

 

Balance — December 31, 2013

   $ 1,850      $ 63,083      $ 3,941   
  

 

 

   

 

 

   

 

 

 

Changes in unrealized gains included in earnings related to assets still held at December 31, 2013

   $      $      $ 3,431 (b) 
  

 

 

   

 

 

   

 

 

 

 

 

(a) 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.

 

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

 

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

 

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

 

(e) Reported as an OTTI impairment loss or as gain (loss) on bank investment securities in the consolidated statement of 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 December 31, 2015 and 2014:

 

     Fair Value at
December 31,
2015
    

Valuation

Technique

  

Unobservable

Input/Assumptions

   Range
(Weighted-
Average)
     (In thousands)                 

Recurring fair value measurements:

           

Privately issued mortgage– backed securities

   $ 74       Two independent pricing quotes      

Collateralized debt obligations

     47,393       Discounted cash flow    Probability of default    10%-56% (31%)
         Loss severity    100%

Net other assets (liabilities)(a)

     9,879       Discounted cash flow    Commitment expirations    0%-60% (39%)

 

     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:

 

    December 31, 2015  
    Carrying
Amount
    Estimated
Fair Value
    Level 1     Level 2     Level 3  
    (In thousands)  

Financial assets:

         

Cash and cash equivalents

  $ 1,368,040      $ 1,368,040      $ 1,276,678      $ 91,362      $   

Interest-bearing deposits at banks

    7,594,350        7,594,350               7,594,350          

Trading account assets

    273,783        273,783        56,763        217,020          

Investment securities

    15,656,439        15,660,877        65,178        15,406,404        189,295   

Loans and leases:

         

Commercial loans and leases

    20,422,338        20,146,201                      20,146,201   

Commercial real estate loans

    29,197,311        29,044,244               38,774        29,005,470   

Residential real estate loans

    26,270,103        26,267,771               4,727,816        21,539,955   

Consumer loans

    11,599,747        11,550,270                      11,550,270   

Allowance for credit losses

    (955,992                            
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loans and leases, net

    86,533,507        87,008,486               4,766,590        82,241,896   

Accrued interest receivable

    306,496        306,496               306,496          

Financial liabilities:

         

Noninterest-bearing deposits

  $ (29,110,635   $ (29,110,635          $ (29,110,635       

Savings deposits and interest-checking accounts

    (49,566,644     (49,566,644            (49,566,644       

Time deposits

    (13,110,392     (13,135,042            (13,135,042       

Deposits at Cayman Islands office

    (170,170     (170,170            (170,170       

Short-term borrowings

    (2,132,182     (2,132,182            (2,132,182       

Long-term borrowings

    (10,653,858     (10,639,556            (10,639,556       

Accrued interest payable

    (85,145     (85,145            (85,145       

Trading account liabilities

    (160,745     (160,745            (160,745       

Other financial instruments:

         

Commitments to originate real estate loans for sale

  $ 9,879      $ 9,879             $      $ 9,879   

Commitments to sell real estate loans

    875        875               875          

Other credit-related commitments

    (122,334     (122,334                   (122,334

Interest rate swap agreements used for interest rate risk management

    43,892        43,892               43,892          

 

    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 interest-checking 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