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Fair value measurements (Tables)
 3 Months Ended
Mar. 31, 2016
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, 2016 and December 31, 2015 measured at estimated fair value on a recurring basis:

 

     Fair value
measurements at
March 31,
2016		      Level 1(a)      Level 2(a)      Level 3  
     (in thousands)  

Trading account assets

    $ 467,987         69,689         398,298         —     

Investment securities available for sale:

            

U.S. Treasury and federal agencies

      202,192         —           202,192         —     

Obligations of states and political subdivisions

      5,448         —           5,448         —     

Mortgage-backed securities:

            

Government issued or guaranteed

      11,750,062         —           11,750,062         —     

Privately issued

      65         —           —           65   

Collateralized debt obligations

      45,040         —           —           45,040   

Other debt securities

      112,708         —           112,708         —     

Equity securities

      85,132         67,150         17,982         —     
  

 

 

     

 

 

     

 

 

     

 

 

  
     12,200,647         67,150         12,088,392         45,105   
  

 

 

     

 

 

     

 

 

     

 

 

  

Real estate loans held for sale

      396,764         —           396,764         —     

Other assets (b)

      59,028         —           42,099         16,929   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total assets

    $ 13,124,426         136,839         12,925,553         62,034   
  

 

 

     

 

 

     

 

 

     

 

 

  

Trading account liabilities

    $ 295,869         —           295,869         —     

Other liabilities (b)

      5,700         —           5,656         44   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total liabilities

    $ 301,569         —           301,525         44   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

 

     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   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) There were no significant transfers between Level 1 and Level 2 of the fair value hierarchy during the three months ended March 31, 2016 and the year ended December 31, 2015.
(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, 2016 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, 2016

    $ 74       $ 47,393      $ 9,879   

Total gains (losses) realized/unrealized:

        

Included in earnings

      —           —          23,898 (b) 

Included in other comprehensive income

      —           (2,148 )(c)      —     

Settlements

      (9 )       (205 )      —     

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

      —           —          (16,892 )(d) 
  

 

 

     

 

 

    

 

 

  

Balance – March 31, 2016

    $ 65       $  45,040      $ 16,885   
  

 

 

     

 

 

    

 

 

  

Changes in unrealized gains included in earnings related to assets still held at March 31, 2016

    $  —         $ —        $  14,539 (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, 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

      —           —          29,770 (b) 

Included in other comprehensive income

      —           (2,004 )(c)      —     

Settlements

      (8 )       (1,034 )      —     

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

      —           —          (20,887 )(d) 
  

 

 

     

 

 

    

 

 

  

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 (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 losses 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.
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 March 31, 2016 and December 31, 2015:

 

     Fair value at
March 31,
2016		     

Valuation

technique

   

Unobservable

input/assumptions

    Range
(weighted-
average)
     (in thousands)                 

Recurring fair value measurements

            

Privately issued mortgage–backed securities

    $ 65       Two independent pricing quotes    —      —  

Collateralized debt obligations

      45,040       Discounted cash flow    Probability of default    10%-56% (31%)
         Loss severity    100%

Net other assets (liabilities) (a)

      16,885       Discounted cash flow    Commitment expirations    0%-66% (31%)
     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%)

 

(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, 2016  
     Carrying
amount		     Estimated
fair value		     Level 1      Level 2     Level 3  
           (in thousands)        

Financial assets:

            

Cash and cash equivalents

    $ 1,178,175      $ 1,178,175      $ 1,112,933       $ 65,242      $ —     

Interest-bearing deposits at banks

      9,545,181        9,545,181        —           9,545,181        —     

Trading account assets

      467,987        467,987        69,689         398,298        —     

Investment securities

      15,467,320        15,506,052        67,150         15,256,530        182,372   

Loans and leases:

            

Commercial loans and leases

      21,226,577        20,875,827        —           —          20,875,827   

Commercial real estate loans

      29,713,293        29,569,740        —           127,736        29,442,004   

Residential real estate loans

      25,299,638        25,386,240        —           4,590,667        20,795,573   

Consumer loans

      11,632,958        11,553,135        —           —          11,553,135   

Allowance for credit losses

      (962,752 )      —          —           —          —     
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Loans and leases, net

      86,909,714        87,384,942        —           4,718,403        82,666,539   

Accrued interest receivable

      318,486        318,486        —           318,486        —     

Financial liabilities:

            

Noninterest-bearing deposits

    $ (29,709,218 )    $ (29,709,218 )      —         $ (29,709,218 )      —     

Savings and interest-checking deposits

      (51,497,240 )      (51,497,240 )      —           (51,497,240 )      —     

Time deposits

      (12,841,331 )      (12,879,619 )      —           (12,879,619 )      —     

Deposits at Cayman Islands office

      (166,787 )      (166,787 )      —           (166,787 )      —     

Short-term borrowings

      (1,766,826 )      (1,766,826 )      —           (1,766,826 )      —     

Long-term borrowings

      (10,341,035 )      (10,338,217 )      —           (10,338,217 )      —     

Accrued interest payable

      (80,605 )      (80,605 )      —           (80,605 )      —     

Trading account liabilities

      (295,869 )      (295,869 )      —           (295,869 )      —     

Other financial instruments:

            

Commitments to originate real estate loans for sale

    $ 16,885      $ 16,885        —         $ —        $ 16,885   

Commitments to sell real estate loans

      (4,816 )      (4,816 )      —           (4,816 )      —     

Other credit-related commitments

      (118,521 )      (118,521 )      —           —          (118,521 ) 

Interest rate swap agreements used for interest rate risk management

      41,259        41,259        —           41,259        —     

 

     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 and interest-checking deposits

      (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        —