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Fair value measurements (Tables)
 6 Months Ended
Jun. 30, 2016
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Estimated Fair Value on Recurring Basis

The following tables present assets and liabilities at June 30, 2016 and December 31, 2015 measured at estimated fair value on a recurring basis:

 

     Fair value
measurements at
June 30,
2016		      Level 1 (a)      Level 2 (a)      Level 3  
     (in thousands)  

Trading account assets

    $ 506,131         62,167         443,964         —     

Investment securities available for sale:

            

U.S. Treasury and federal agencies

      400,348         —           400,348         —     

Obligations of states and political subdivisions

      5,241         —           5,241         —     

Mortgage-backed securities:

            

Government issued or guaranteed

      11,267,278         —           11,267,278         —     

Privately issued

      57         —           —           57   

Collateralized debt obligations

      43,305         —           —           43,305   

Other debt securities

      114,771         —           114,771         —     

Equity securities

      87,974         59,647         28,327         —     
  

 

 

     

 

 

     

 

 

     

 

 

  
     11,918,974         59,647         11,815,965         43,362   
  

 

 

     

 

 

     

 

 

     

 

 

  

Real estate loans held for sale

      602,019         —           602,019         —     

Other assets (b)

      55,442         —           34,011         21,431   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total assets

    $ 13,082,566         121,814         12,895,959         64,793   
  

 

 

     

 

 

     

 

 

     

 

 

  

Trading account liabilities

    $ 352,541         —           352,541         —     

Other liabilities (b)

      16,313         —           16,265         48   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total liabilities

    $ 368,854         —           368,806         48   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

     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 six months ended June 30, 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 June 30, 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 – March 31, 2016

    $ 65         45,040        16,885   

Total gains (losses) realized/unrealized:

        

Included in earnings

      —           —          35,430 (b) 

Included in other comprehensive income

      —           (1,070 )(c)      —     

Sales

      —           —          —     

Settlements

      (8 )       (665 )      —     

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

      —           —          (30,932 )(d) 
  

 

 

     

 

 

    

 

 

  

Balance – June 30, 2016

    $ 57         43,305        21,383   
  

 

 

     

 

 

    

 

 

  

Changes in unrealized gains included in earnings related to assets still held at June 30, 2016

    $ —           —          19,882 (b) 
  

 

 

     

 

 

    

 

 

  

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the three months ended June 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 – March 31, 2015

    $ 95         47,278        26,230   

Total gains realized/unrealized:

        

Included in earnings

      —           —          16,132 (b) 

Included in other comprehensive income

      —           7,629 (c)      —     

Sales

      —           —          —     

Settlements

      (7 )       (4,424 )      —     

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

      —           —          (31,156 )(d) 
  

 

 

     

 

 

    

 

 

  

Balance – June 30, 2015

    $ 88         50,483        11,206   
  

 

 

     

 

 

    

 

 

  

Changes in unrealized gains included in earnings related to assets still held at June 30, 2015

    $ —           —          6,330 (b) 
  

 

 

     

 

 

    

 

 

  

 

The changes in Level 3 assets and liabilities measured at estimated fair value on a recurring basis during the six months ended June 30, 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

      —           —          59,328 (b) 

Included in other comprehensive income

      —           (3,218 )(c)      —     

Settlements

      (17 )       (870 )      —     

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

      —           —          (47,824 )(d) 
  

 

 

     

 

 

    

 

 

  

Balance – June 30, 2016

    $ 57         43,305        21,383   
  

 

 

     

 

 

    

 

 

  

Changes in unrealized gains included in earnings related to assets still held at June 30, 2016

    $ —           —          20,661 (b) 
  

 

 

     

 

 

    

 

 

  

 

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

        

Included in earnings

      —           —          45,902 (b) 

Included in other comprehensive income

      —           5,625 (c)      —     

Settlements

      (15 )       (5,458 )      —     

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

      —           —          (52,043 )(d) 
  

 

 

     

 

 

    

 

 

  

Balance – June 30, 2015

    $ 88         50,483        11,206   
  

 

 

     

 

 

    

 

 

  

Changes in unrealized gains included in earnings related to assets still held at June 30, 2015

    $ —           —          8,763 (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 (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 June 30, 2016 and December 31, 2015:

 

     Fair value at
June 30, 2016		      Valuation
technique		      Unobservable
input/assumptions		      Range
(weighted-
average)		  
     (in thousands)                       

Recurring fair value measurements

            

Privately issued mortgage–backed securities

    $ 57        
 
 
 		 Two
independent
pricing
quotes		   
  
  
  		      —           —     

Collateralized debt obligations

      43,305        
 		 Discounted
cash flow		   
  		     
 		 Probability
of default		   
  		      10%-55% (30%)   
           Loss severity         100%   

Net other assets (liabilities)(a)

      21,383        
 		 Discounted
cash flow		   
  		     
 		 Commitment
expirations		   
  		      0%-93% (36%)   
     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:

 

     June 30, 2016  
     Carrying
amount		     Estimated
fair value		     Level 1      Level 2     Level 3  
     (in thousands)  

Financial assets:

            

Cash and cash equivalents

    $ 1,284,442        1,284,442        1,216,801         67,641        —     

Interest-bearing deposits at banks

      8,474,839        8,474,839        —           8,474,839        —     

Trading account assets

      506,131        506,131        62,167         443,964        —     

Investment securities

      14,963,084        15,011,922        59,647         14,779,939        172,336   

Loans and leases:

            

Commercial loans and leases

      21,469,242        21,119,041        —           —          21,119,041   

Commercial real estate loans

      30,711,230        30,553,720        —           227,929        30,325,791   

Residential real estate loans

      24,530,249        24,738,004        —           4,673,968        20,064,036   

Consumer loans

      11,811,277        11,713,181        —           —          11,713,181   

Allowance for credit losses

      (970,496 )      —          —           —          —     
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Loans and leases, net

      87,551,502        88,123,946        —           4,901,897        83,222,049   

Accrued interest receivable

      299,158        299,158        —           299,158        —     

Financial liabilities:

            

Noninterest-bearing deposits

    $ (30,700,066 )      (30,700,066 )      —           (30,700,066 )      —     

Savings and interest-checking deposits

      (51,126,237 )      (51,126,237 )      —           (51,126,237 )      —     

Time deposits

      (12,630,277 )      (12,677,606 )      —           (12,677,606 )      —     

Deposits at Cayman Islands office

      (193,523 )      (193,523 )      —           (193,523 )      —     

Short-term borrowings

      (407,123 )      (407,123 )      —           (407,123 )      —     

Long-term borrowings

      (10,328,751 )      (10,382,523 )      —           (10,382,523 )      —     

Accrued interest payable

      (80,165 )      (80,165 )      —           (80,165 )      —     

Trading account liabilities

      (352,541 )      (352,541 )      —           (352,541 )      —     

Other financial instruments:

            

Commitments to originate real estate loans for sale

    $ 21,383        21,383        —           —          21,383   

Commitments to sell real estate loans

      (15,902 )      (15,902 )      —           (15,902 )      —     

Other credit-related commitments

      (125,630 )      (125,630 )      —           —          (125,630 ) 

Interest rate swap agreements used for interest rate risk management

      33,648        33,648        —           33,648        —     

 

     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        —