Fair Value (Tables)

9 Months Ended

Sep. 30, 2018

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


	Fair Value Measurements as of September 30, 2018
	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	$	—	$	383,890	$	—	$	383,890
Government-sponsored enterprises debt securities		—		237,217		—		237,217
Government agency mortgage-backed securities(1)		—		419,293		—		419,293
Government-sponsored enterprises mortgage-backed securities(1)		—		154,133		—		154,133
Collateralized mortgage obligations:
Government agency		—		2,753,966		—		2,753,966
Government-sponsored enterprises		—		627,239		—		627,239
Debt securities issued by states and political subdivisions		—		19,563		—		19,563
Total available-for-sale securities		—		4,595,301		—		4,595,301
Other assets(2)		—		2,044		—		2,044
Liabilities
Other liabilities(3)		—		(28,557)		(3,385)		(31,942)
Total	$	—	$	4,568,788	$	(3,385)	$	4,565,403


	Fair Value Measurements as of December 31, 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	$	—	$	392,255	$	—	$	392,255
Government-sponsored enterprises debt securities		—		242,601		—		242,601
Government agency mortgage-backed securities(1)		—		351,390		—		351,390
Government-sponsored enterprises mortgage-backed securities(1)		—		174,741		—		174,741
Collateralized mortgage obligations:
Government agency		—		3,290,474		—		3,290,474
Government-sponsored enterprises		—		762,718		—		762,718
Debt securities issued by states and political subdivisions		—		20,479		—		20,479
Total available-for-sale securities		—		5,234,658		—		5,234,658
Other assets(2)		—		14,682		—		14,682
Liabilities
Other liabilities(3)		—		(15,049)		(5,439)		(20,488)
Total	$	—	$	5,234,291	$	(5,439)	$	5,228,852

⁽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)	2018		2017
Three Months Ended September 30,
Balance as of July 1,	$	(4,114)	$	(6,493)
Total net losses included in other noninterest income		(43)		(41)
Settlements		772		559
Balance as of September 30,	$	(3,385)	$	(5,975)
Total net losses included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of September 30,	$	(43)	$	(41)

Nine Months Ended September 30,
Balance as of January 1,	$	(5,439)	$	(7,460)
Total net losses included in other noninterest income		(123)		(73)
Settlements		2,177		1,558
Balance as of September 30,	$	(3,385)	$	(5,975)
Total net losses included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of September 30,	$	(123)	$	(73)

Summary of estimated fair value of financial instruments not required to be carried at fair value on a recurring basis


	September 30, 2018
			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:
Cash and cash equivalents	$	699,493	$	350,967	$	348,518	$	—	$	699,485
Loans(1)(2)		12,439,150		—		—		12,164,831		12,164,831

Financial liabilities:
Time deposits(3)	$	3,290,499	$	—	$	3,253,036	$	—	$	3,253,036
Short-term borrowings		30,000		—		30,000		—		30,000
Long-term borrowings(4)		400,000		—		400,935		—		400,935


	December 31, 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:
Cash and cash equivalents	$	1,034,644	$	367,084	$	667,560	$	—	$	1,034,644
Loans held for sale		556		—		559		—		559
Loans(1)(2)		12,112,303		—		—		12,426,506		12,426,506

Financial liabilities:
Time deposits(3)	$	4,173,882	$	—	$	4,160,393	$	—	$	4,160,393

⁽¹⁾

Excludes financing leases of $161.3 million at September 30, 2018 and $165.1 million at December 31, 2017.

⁽²⁾

In connection with the prospective adoption of ASU 2016-01 on July 1, 2018, the valuation methodology used to estimate the fair value of loans was changed to conform to an exit price notion. The fair value estimate at December 31, 2017 has not been revised to reflect application of the modified methodology.

⁽³⁾

Excludes deposit liabilities with no defined or contractual maturity of $13.4 billion as of both September 30, 2018 and December 31, 2017.

Excludes capital lease obligations of $26 thousand at September 30, 2018.

Schedule of assets with fair value adjustments on a nonrecurring basis


(dollars in thousands)	Level 1		Level 2		Level 3
September 30, 2018
Impaired loans	$	—	$	—	$	402
December 31, 2017
Impaired loans	$	—	$	—	$	87

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, 2018
				Significant	Range
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	(Weighted Average)
Impaired loans	$	402	Appraisal Value	Appraisal Value	n/m(1)
Other liabilities	$	(3,385)	Discounted Cash Flow	Expected Conversion Rate	1.6298
				Expected Term	4 years
				Growth Rate	15%


	Quantitative Information about Level 3 Fair Value Measurements at December 31, 2017
					Range
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	(Weighted Average)
Impaired loans	$	87	Appraisal Value	Appraisal Value	n/m(1)
Other liabilities	$	(5,439)	Discounted Cash Flow	Expected Conversion Rate	1.6483
				Expected Term	4 years
				Growth Rate	15%

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.