Fair Value (Tables)

12 Months Ended

Dec. 31, 2018

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


	Fair Value Measurements as of December 31, 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	$	—	$	389,470	$	—	$	389,470
Government-sponsored enterprises debt securities		—		241,594		—		241,594
Government agency mortgage-backed securities(1)		—		411,536		—		411,536
Government-sponsored enterprises mortgage-backed securities(1)		—		150,847		—		150,847
Collateralized mortgage obligations:
Government agency		—		2,682,449		—		2,682,449
Government-sponsored enterprises		—		602,592		—		602,592
Debt securities issued by states and political subdivisions		—		19,854		—		19,854
Total available-for-sale securities		—		4,498,342		—		4,498,342
Other assets(2)		—		12,336		—		12,336
Liabilities
Other liabilities(3)		—		(12,085)		(2,607)		(14,692)
Total	$	—	$	4,498,593	$	(2,607)	$	4,495,986


	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
Year Ended December 31,
Balance as of January 1,	$	(5,439)	$	(7,460)
Total net losses included in other noninterest income		(173)		(168)
Settlements		3,005		2,189
Balance as of December 31,	$	(2,607)	$	(5,439)
Total net losses included in net income attributable to the change in unrealized gains or losses related to liabilities still held as of December 31,	$	(173)	$	(168)

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


	December 31, 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	$	1,003,637	$	396,836	$	606,801	$	—	$	1,003,637
Loans held for sale		432		—		432		—		432
Loans(1)(2)		12,928,422		—		—		12,664,170		12,664,170

Financial liabilities:
Time deposits(3)	$	3,092,164	$	—	$	3,058,792	$	—	$	3,058,792
Long-term borrowings(4)		600,000		—		602,088		—		602,088


	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 $147.8 million at December 31, 2018 and $165.1 million at December 31, 2017.

⁽²⁾

In connection with the prospective adoption of ASU No. 2016-01, Financial Instruments (Topic 825), Recognition and Measurement of Financial Assets and Financial Liabilities, 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 $14.1 billion at December 31, 2018 and $13.4 billion at December 31, 2017.

Excludes capital lease obligations of $26 thousand at December 31, 2018.

Schedule of assets with fair value adjustments on a nonrecurring basis


(dollars in thousands)	Level 1		Level 2		Level 3
December 31, 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 December 31, 2018
				Significant	Range
(dollars in thousands)	Fair value		Valuation Technique	Unobservable Input	(Weighted Average)
Impaired loans	$	402	Appraisal Value	Appraisal Value	n/m(1)
Visa derivative	$	(2,607)	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)
Visa derivative	$	(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.