Fair Value (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of assets and liabilities measured at fair value on a recurring basis


	Fair Value Measurements as of September 30, 2016
	Quoted Prices in		Significant
	Active Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
(dollars in thousands)	(Level 1)		Inputs (Level 2)		Inputs (Level 3)		Total
Assets
U.S. Treasury securities	$	—	$	308,488	$	—	$	308,488
Government-sponsored enterprises debt securities		—		189,893		—		189,893
Government agency mortgage-backed securities (1)		—		204,958		—		204,958
Government-sponsored enterprises mortgage-backed securities (1)		—		9,000		—		9,000
Non-government asset-backed securities		—		19,494		—		19,494
Collateralized mortgage obligations
Government agency		—		3,543,653		—		3,543,653
Government-sponsored enterprises		—		1,088,210		—		1,088,210
Total available-for-sale securities		—		5,363,696		—		5,363,696
Other assets (2)		—		32,393		—		32,393
Liabilities
Other liabilities (3)		—		(44,703)		(7,926)		(52,629)
Total	$	—	$	5,351,386	$	(7,926)	$	5,343,460


	Fair Value Measurements as of December 31, 2015
	Quoted Prices in		Significant
	Active Markets for		Other		Significant
	Identical Assets		Observable		Unobservable
(dollars in thousands)	(Level 1)		Inputs (Level 2)		Inputs (Level 3)		Total
Assets
U.S. Treasury securities	$	—	$	499,976	$	—	$	499,976
Government-sponsored enterprises debt securities		—		95,824		—		95,824
Government agency mortgage-backed securities (1)		—		55,982		—		55,982
Government-sponsored enterprises mortgage-backed securities (1)		—		10,745		—		10,745
Non-government mortgage-backed securities (1)		—		157		—		157
Non-government asset-backed securities		—		95,310		—		95,310
Collateralized mortgage obligations
Government agency		—		2,239,934		—		2,239,934
Government-sponsored enterprises		—		1,029,337		—		1,029,337
Total available-for-sale securities		—		4,027,265		—		4,027,265
Other assets (2)		—		11,002		—		11,002
Liabilities
Other liabilities (3)		—		(23,122)		—		(23,122)
Total	$	—	$	4,015,145	$	—	$	4,015,145

(1) Backed by residential real estate.

(2) Other assets include investments in derivative assets.

(3) Other liabilities include derivative liabilities.

Summary of changes in Level 3 liabilities measured at fair value on a recurring basis


	Visa
(dollars in thousands)	Derivative
Three Months Ended September 30, 2016
Balance as of July 1, 2016	$	(8,376)
Total net gains included in other noninterest income		6
Settlements		444
Balance as of September 30, 2016	$	(7,926)
Total unrealized net gains included in net income related to liabilities still held as of September 30, 2016	$	6

Nine Months Ended September 30, 2016
Balance as of January 1, 2016	$	—
Total net gains included in other noninterest income		25
Purchases		(8,875)
Settlements		924
Balance as of September 30, 2016	$	(7,926)
Total unrealized net gains included in net income related to liabilities still held as of September 30, 2016	$	25

Schedule of assets and liabilities carried at other than fair value and fair values of off-balance sheet commitments


	September 30, 2016
			Fair Value Measurements
			Quoted Prices in		Significant		Significant
			Active Markets		Other		Unobservable
			for Identical		Observable		Inputs
(dollars in thousands)	Book Value		Assets (Level 1)		Inputs (Level 2)		(Level 3)		Total
Financial assets:
Short-term financial assets	$	1,175,820	$	371,622	$	804,197	$	—	$	1,175,819
Loans (1)		11,209,378		—		—		11,307,808		11,307,808

Financial liabilities:
Deposits	$	16,965,527	$	12,960,384	$	4,009,417	$	—	$	16,969,801
Short-term borrowings		9,151		—		9,131		—		9,131

Off-balance sheet financial instruments:
Commitments to extend credit (2)	$	21,534	$	—	$	—	$	21,534	$	21,534
Standby letters of credit		1,533		—		—		1,533		1,533
Commercial letters of credit		23		—		—		23		23

(1) Excludes financing leases of $187.2 million at September 30, 2016.

(2) There were no lease commitments at September 30, 2016.


	December 31, 2015
			Fair Value Measurements
			Quoted Prices in		Significant		Significant
			Active Markets		Other		Unobservable
			for Identical		Observable		Inputs
(dollars in thousands)	Book Value		Assets (Level 1)		Inputs (Level 2)		(Level 3)		Total
Financial assets:
Short-term financial assets	$	2,650,195	$	300,096	$	2,350,082	$	—	$	2,650,178
Loans (1)		10,523,351		—		—		10,572,261		10,572,261

Financial liabilities:
Deposits	$	16,061,924	$	12,251,923	$	3,801,185	$	—	$	16,053,108
Short-term borrowings		216,151		—		216,057		—		216,057

Off-balance sheet financial instruments:
Commitments to extend credit (2)	$	25,113	$	—	$	—	$	25,113	$	25,113
Standby letters of credit		2,122		—		—		2,122		2,122
Commercial letters of credit		21		—		—		21		21

(1) Excludes financing leases of $198.7 million at December 31, 2015.

(2) Excludes financing lease commitments of $0.1 million at December 31, 2015.

Schedule of assets with fair value adjustments on a nonrecurring basis



(dollars in thousands)	Level 1		Level 2		Level 3
September 30, 2016
Impaired loans	$	—	$	—	$	1,368
December 31, 2015
Impaired loans	$	—	$	—	$	1,250

Schedule of significant unobservable inputs used in fair value measurements for Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis


	Quantitative Information about Level 3 Fair Value Measurements at September 30, 2016
				Significant	Range
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	(Weighted Average)
Impaired loans	$	1,368	Appraisal Value	Appraisal Value	n/m (1)
Other liabilities	$	(7,926)	Discounted Cash Flow	Expected Conversion Factor	1.6483
				Expected Term	4 years
				Growth Rate	15%


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2015
					Range
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	(Weighted Average)
Impaired loans	$	1,250	Appraisal Value	Appraisal Value	n/m (1)

(1) The fair value of these assets is determined based on appraised values of collateral or broker price opinions, the range of which is not meaningful to disclose