Fair Value (Tables)

6 Months Ended

Jun. 30, 2017

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


	Fair Value Measurements as of June 30, 2017
	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	$	—	$	396,842	$	—	$	396,842
Government-sponsored enterprises debt securities		—		245,318		—		245,318
Government agency mortgage-backed securities (1)		—		168,798		—		168,798
Government-sponsored enterprises mortgage-backed securities (1)		—		191,617		—		191,617
Non-government asset-backed securities		—		3,801		—		3,801
Collateralized mortgage obligations:
Government agency		—		3,309,319		—		3,309,319
Government-sponsored enterprises		—		811,174		—		811,174
Total available-for-sale securities		—		5,126,869		—		5,126,869
Other assets (2)		—		19,660		—		19,660
Liabilities
Other liabilities (3)		—		(19,084)		(6,493)		(25,577)
Total	$	—	$	5,127,445	$	(6,493)	$	5,120,952


	Fair Value Measurements as of December 31, 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	$	—	$	392,473	$	—	$	392,473
Government-sponsored enterprises debt securities		—		242,667		—		242,667
Government agency mortgage-backed securities (1)		—		185,663		—		185,663
Government-sponsored enterprises mortgage-backed securities (1)		—		204,385		—		204,385
Non-government asset-backed securities		—		12,583		—		12,583
Collateralized mortgage obligations:
Government agency		—		3,351,822		—		3,351,822
Government-sponsored enterprises		—		687,921		—		687,921
Total available-for-sale securities		—		5,077,514		—		5,077,514
Other assets (2)		—		15,982		—		15,982
Liabilities
Other liabilities (3)		—		(23,742)		(7,460)		(31,202)
Total	$	—	$	5,069,754	$	(7,460)	$	5,062,294

⁽¹⁾

Backed by residential real estate.

⁽²⁾

Other assets include derivative assets.

⁽³⁾

Other liabilities include derivative liabilities.

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


	Visa Derivative
(dollars in thousands)	2017		2016
Three Months Ended June 30,
Balance as of April 1,	$	(6,987)	$	(8,828)
Total net (losses) gains included in other noninterest income		(35)		19
Settlements		529		433
Balance as of June 30,	$	(6,493)	$	(8,376)
Total net (losses) gains included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of June 30,	$	(35)	$	19

Six Months Ended June 30,
Balance as of January 1,	$	(7,460)	$	—
Total net (losses) gains included in other noninterest income		(32)		19
Purchases		—		(8,875)
Settlements		999		480
Balance as of June 30,	$	(6,493)	$	(8,376)
Total net (losses) gains included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of June 30,	$	(32)	$	19

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


	June 30, 2017
			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	$	1,227,765	$	355,752	$	872,012	$	—	$	1,227,764
Loans (1)		11,881,716		—		—		11,860,477		11,860,477

Financial liabilities:
Deposits	$	17,452,262	$	13,384,203	$	4,064,576	$	—	$	17,448,779

Off-balance sheet financial instruments:
Commitments to extend credit (2)	$	18,578	$	—	$	—	$	18,578	$	18,578
Standby letters of credit		1,077		—		—		1,077		1,077
Commercial letters of credit		18		—		—		18		18

⁽¹⁾

Excludes financing leases of $180.7 million at June 30, 2017.

⁽²⁾

There were no lease commitments at June 30, 2017.


	December 31, 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	$	1,052,058	$	253,827	$	798,226	$	—	$	1,052,053
Loans (1)		11,340,338		—		—		11,306,675		11,306,675

Financial liabilities:
Deposits	$	16,794,532	$	13,055,935	$	3,730,945	$	—	$	16,786,880
Short-term borrowings		9,151		—		9,109		—		9,109

Off-balance sheet financial instruments:
Commitments to extend credit (2)	$	20,677	$	—	$	—	$	20,677	$	20,677
Standby letters of credit		876		—		—		876		876
Commercial letters of credit		17		—		—		17		17

⁽¹⁾

Excludes financing leases of $180.0 million at December 31, 2016.

⁽²⁾

There were no lease commitments at December 31, 2016.

Schedule of assets with fair value adjustments on a nonrecurring basis



(dollars in thousands)	Level 1		Level 2		Level 3
June 30, 2017
Impaired loans	$	—	$	—	$	—
December 31, 2016
Impaired loans	$	—	$	—	$	1,567

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 June 30, 2017
				Significant	Range
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	(Weighted Average)
Other liabilities	$	(6,493)	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, 2016
					Range
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	(Weighted Average)
Impaired loans	$	1,567	Appraisal Value	Appraisal Value	n/m (1)
Other liabilities	$	(7,460)	Discounted Cash Flow	Expected Conversion Factor	1.6483
				Expected Term	4 years
				Growth Rate	15%

⁽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.