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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        —