FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2018

Balances of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the balances of assets and liabilities measured at fair value on a recurring basis:



(in thousands)	Level 1		Level 2		Level 3		Total
March 31, 2018
Assets Measured at Fair Value
Debt securities available for sale
U.S. government-sponsored entities	$	—	$	358,648	$	—	$	358,648
Residential mortgage-backed securities:
Agency mortgage-backed securities	—		1,671,573		—		1,671,573
Agency collateralized mortgage obligations	—		832,350		—		832,350
Non-agency collateralized mortgage obligations	—		1		—		1
Commercial mortgage-backed securities	—		39,213		—		39,213
States of the U.S. and political subdivisions	—		21,023		—		21,023
Other debt securities	—		4,655		—		4,655
Total debt securities available for sale	—		2,927,463		—		2,927,463
Loans held for sale	—		21,610		—		21,610
Marketable equity securities
Fixed income mutual fund	177		—		—		177
Financial services industry	—		944		—		944
Total marketable equity securities	177		944		—		1,121
Derivative financial instruments
Trading	—		18,683		—		18,683
Not for trading	—		229		1,380		1,609
Total derivative financial instruments	—		18,912		1,380		20,292
Total assets measured at fair value on a recurring basis	$	177	$	2,968,929	$	1,380	$	2,970,486
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	47,930	$	—	$	47,930
Not for trading	—		3,957		5		3,962
Total derivative financial instruments	—		51,887		5		51,892
Total liabilities measured at fair value on a recurring basis	$	—	$	51,887	$	5	$	51,892



(in thousands)	Level 1		Level 2		Level 3		Total
December 31, 2017
Assets Measured at Fair Value
Debt securities available for sale
U.S. government-sponsored entities	$	—	$	343,942	$	—	$	343,942
Residential mortgage-backed securities:
Agency mortgage-backed securities	—		1,598,874		—		1,598,874
Agency collateralized mortgage obligations	—		794,957		—		794,957
Non-agency collateralized mortgage obligations	—		1		—		1
States of the U.S. and political subdivisions	—		21,093		—		21,093
Other debt securities	—		4,670		—		4,670
Total debt securities available for sale	—		2,763,537		—		2,763,537
Equity securities available for sale
Fixed income mutual fund	161		—		—		161
Financial services industry	—		864		—		864
Total equity securities available for sale	161		864		—		1,025
Total securities available for sale	161		2,764,401		—		2,764,562
Loans held for sale	—		56,458		—		56,458
Derivative financial instruments
Trading	—		28,453		—		28,453
Not for trading	—		500		1,594		2,094
Total derivative financial instruments	—		28,953		1,594		30,547
Total assets measured at fair value on a recurring basis	$	161	$	2,849,812	$	1,594	$	2,851,567
Liabilities Measured at Fair Value
Derivative financial instruments
Trading	$	—	$	26,953	$	—	$	26,953
Not for trading	—		2,239		5		2,244
Total derivative financial instruments	—		29,192		5		29,197
Total liabilities measured at fair value on a recurring basis	$	—	$	29,192	$	5	$	29,197

Additional Information about Assets Measured at Fair Value on Recurring Basis

The following table presents additional information about assets measured at fair value on a recurring basis and for which we have utilized Level 3 inputs to determine fair value:



(in thousands)	Other Debt Securities			Equity Securities			Residential Non-Agency Collateralized Mortgage Obligations			Interest Rate Lock Commitments			Total
Three Months Ended March 31, 2018
Balance at beginning of period	$	—		$	—		$	—		$	1,594		$	1,594
Purchases, issuances, sales and settlements:
Purchases	—			—			—			1,380			1,380
Settlements	—			—			—			(1,594		)	(1,594		)
Balance at end of period	$	—		$	—		$	—		$	1,380		$	1,380
Year Ended December 31, 2017
Balance at beginning of period	$	—		$	492		$	894		$	—		$	1,386
Total gains (losses) – realized/unrealized:
Included in earnings	—			—			4			—			4
Included in other comprehensive income	—			86			(6		)	—			80
Accretion included in earnings	(1		)	—			1			—			—
Purchases, issuances, sales and settlements:
Purchases	12,048			—			—			1,594			13,642
Sales/redemptions	(12,047		)	—			(874		)	—			(12,921		)
Settlements	—			—			(19		)	(4,569		)	(4,588		)
Transfers from Level 3	—			(578		)	—			—			(578		)
Transfers into Level 3	—			—			—			4,569			4,569
Balance at end of period	$	—		$	—		$	—		$	1,594		$	1,594

Additional Information about Assets Measured at Fair Value on Non-Recurring Basis

For assets measured at fair value on a non-recurring basis still held at the balance sheet date, the following table provides the hierarchy level and the fair value of the related assets or portfolios:



(in thousands)	Level 1		Level 2		Level 3		Total
March 31, 2018
Impaired loans	$	—	$	2,032	$	1,475	$	3,507
Other real estate owned	—		—		1,621		1,621
Other assets - SBA servicing asset	—		—		5,062		5,062
December 31, 2017
Impaired loans	$	—	$	2,813	$	1,297	$	4,110
Other real estate owned	—		10,513		10,823		21,336
Loans held for sale - SBA	—		—		36,432		36,432
Other assets - SBA servicing asset	—		—		5,058		5,058

Fair Values of Financial Instruments

The fair values of our financial instruments are as follows:



					Fair Value Measurements
(in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
March 31, 2018
Financial Assets
Cash and cash equivalents	$	386,329	$	386,329	$	386,329	$	—	$	—
Debt securities available for sale	2,927,463		2,927,463		—		2,927,463		—
Debt securities held to maturity	3,224,000		3,131,964		—		3,131,964		—
Net loans and leases, including loans held for sale	21,121,132		20,900,639		—		21,610		20,879,029
Loan servicing rights	35,853		41,878		—		—		41,878
Marketable equity securities	1,121		1,121		177		944		—
Derivative assets	20,292		20,292		—		18,912		1,380
Accrued interest receivable	95,082		95,082		95,082		—		—
Financial Liabilities
Deposits	22,497,089		22,441,017		17,755,830		4,685,187		—
Short-term borrowings	3,802,480		3,802,988		3,802,988		—		—
Long-term borrowings	659,890		663,085		—		—		663,085
Derivative liabilities	51,892		51,892		—		51,887		5
Accrued interest payable	12,762		12,762		12,762		—		—
December 31, 2017
Financial Assets
Cash and cash equivalents	$	479,443	$	479,443	$	479,443	$	—	$	—
Securities available for sale	2,764,562		2,764,562		161		2,764,401		—
Debt securities held to maturity	3,242,268		3,218,379		—		3,218,379		—
Net loans and leases, including loans held for sale	20,916,277		20,661,196		—		56,458		20,604,738
Loan servicing rights	34,111		37,758		—		—		37,758
Derivative assets	30,547		30,547		—		28,953		1,594
Accrued interest receivable	94,254		94,254		94,254		—		—
Financial Liabilities
Deposits	22,399,725		22,359,182		17,779,246		4,579,936		—
Short-term borrowings	3,678,337		3,678,723		3,678,723		—		—
Long-term borrowings	668,173		675,489		—		—		675,489
Derivative liabilities	29,197		29,197		—		29,192		5
Accrued interest payable	12,480		12,480		12,480		—		—