FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2013

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:


	Level 1		Level 2		Level 3		Total
September 30, 2013
Assets measured at fair value
Available for sale debt securities
U.S. government-sponsored entities	$	—	$	332,152	$	—	$	332,152
Residential mortgage-backed securities
Agency mortgage-backed securities		—		227,638		—		227,638
Agency collateralized mortgage obligations		—		489,047		—		489,047
Non-agency collateralized mortgage obligations		—		19		1,827		1,846
States of the U.S. and political subdivisions		—		17,875		—		17,875
Collateralized debt obligations		—		—		28,704		28,704
Other debt securities		—		16,128		—		16,128

		—		1,082,859		30,531		1,113,390

Available for sale equity securities
Financial services industry		686		1,020		398		2,104
Insurance services industry		64		—		—		64

		750		1,020		398		2,168

		750		1,083,879		30,929		1,115,558
Derivative financial instruments
Trading		—		37,655		—		37,655
Not for trading		—		387		—		387

		—		38,042		—		38,042

	$	750	$	1,121,921	$	30,929	$	1,153,600


Liabilities measured at fair value
Derivative financial instruments
Trading		—	$	37,495		—	$	37,495
Not for trading		—		6,977		—		6,977

		—	$	44,472		—	$	44,472

December 31, 2012
Assets measured at fair value
Available for sale debt securities
U.S. government-sponsored entities	$	—	$	354,457	$	—	$	354,457
Residential mortgage-backed securities
Agency mortgage-backed securities		—		275,150		—		275,150
Agency collateralized mortgage obligations		—		469,547		—		469,547
Non-agency collateralized mortgage obligations		—		24		2,705		2,729
States of the U.S. and political subdivisions		—		24,824		—		24,824
Collateralized debt obligations		—		—		22,456		22,456
Other debt securities		—		14,621		6,892		21,513

		—		1,138,623		32,053		1,170,676

Available for sale equity securities
Financial services industry		351		1,099		512		1,962
Insurance services industry		45		—		—		45

		396		1,099		512		2,007

		396		1,139,722		32,565		1,172,683
Derivative financial instruments
Trading		—		58,008		—		58,008
Not for trading		—		—		—		—

		—		58,008		—		58,008

	$	396	$	1,197,730	$	32,565	$	1,230,691


Liabilities measured at fair value
Derivative financial instruments
Trading		—	$	58,150		—	$	58,150
Not for trading		—		—		—		—

		—	$	58,150		—	$	58,150

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 the Corporation has utilized Level 3 inputs to determine fair value:


	Pooled Trust Preferred Collateralized Debt Obligations			Other Debt Securities			Equity Securities			Residential Non-Agency Collateralized Mortgage Obligations			Total
Nine Months Ended September 30, 2013
Balance at beginning of period	$	22,456		$	6,892		$	512		$	2,705		$	32,565
Total gains (losses) – realized/unrealized:
Included in earnings		—			78			—			—			78
Included in other comprehensive income		4,561			21			6			(21	)		4,567
Accretion included in earnings		2,311			4			—			11			2,326
Purchases, issuances, sales and settlements:
Purchases		—			—			—			—			—
Issuances		29			—			—			—			29
Sales/redemptions		—			(1,033	)		—			—			(1,033	)
Settlements		(653	)		—			—			(868	)		(1,521	)
Transfers from Level 3		—			(5,962	)		(120	)		—			(6,082	)
Transfers into Level 3		—			—			—			—			—

Balance at end of period	$	28,704		$	—		$	398		$	1,827		$	30,929

Year Ended December 31, 2012
Balance at beginning of period	$	5,998		$	5,197		$	408		$	—		$	11,603
Total gains (losses) – realized/unrealized:
Included in earnings		—			—			—			—			—
Included in other comprehensive income		917			732			104			49			1,802
Accretion included in earnings		2,515			9			—			20			2,544
Purchases, issuances, sales and settlements:
Purchases		16,569			954			—			4,230			21,753
Issuances		46			—			—			—			46
Sales/redemptions		(2,542	)		—			—			—			(2,542	)
Settlements		(1,047	)		—			—			(1,594	)		(2,641	)
Transfers from Level 3		—			—			—			—			—
Transfers into Level 3		—			—			—			—			—

Balance at end of period	$	22,456		$	6,892		$	512		$	2,705		$	32,565

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

fair value adjustments were previously described. 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:


	Level 1		Level 2		Level 3		Total
September 30, 2013
Impaired loans		—	$	3,880	$	9,242	$	13,122
Other real estate owned		—		4,751		4,634		9,385
December 31, 2012
Impaired loans		—	$	14,325	$	3,171	$	17,496
Other real estate owned		—		5,771		13,540		19,311
Investment security, held-to-maturity:
Non-agency CMO		—		—		3,636		3,636

Fair Values of Corporation's Financial Instruments

The fair values of the Corporation’s financial instruments are as follows:


					Fair Value Measurements
	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
September 30, 2013
Financial Assets
Cash and cash equivalents	$	283,509	$	283,509	$	283,509	$	—	$	—
Securities available for sale		1,115,558		1,115,558		750		1,083,879		30,929
Securities held to maturity		1,180,992		1,181,652		—		1,174,282		7,370
Net loans, including loans held for sale		8,734,958		8,597,123		—		—		8,597,123
Bank owned life insurance		263,781		268,641		268,641		—		—
Derivative assets		38,042		38,042		—		38,042		—
Accrued interest receivable		33,025		33,025		33,025		—		—
Financial Liabilities
Deposits		9,723,371		9,736,492		7,375,322		2,361,170		—
Short-term borrowings		1,166,180		1,166,180		1,166,180		—		—
Long-term debt		91,807		94,670		—		—		94,670
Junior subordinated debt		194,213		190,150		—		—		190,150
Derivative liabilities		44,472		44,472		—		44,472		—
Accrued interest payable		6,368		6,368		6,368		—		—
December 31, 2012
Financial Assets
Cash and cash equivalents	$	239,044	$	239,044	$	239,044	$	—	$	—
Securities available for sale		1,172,683		1,172,683		396		1,139,722		32,565
Securities held to maturity		1,106,563		1,143,213		—		1,128,524		14,689
Net loans, including loans held for sale		8,061,096		7,996,554		—		—		7,966,554
Bank owned life insurance		246,088		257,060		257,060		—		—
Derivative assets		58,008		58,008		—		58,008		—
Accrued interest receivable		30,210		30,210		30,210		—		—
Financial Liabilities
Deposits		9,082,174		9,117,757		6,546,316		2,571,441		—
Short-term borrowings		1,083,138		1,083,138		1,083,138		—		—
Long-term debt		89,425		92,329		—		—		92,329
Junior subordinated debt		204,019		172,246		—		—		172,246
Derivative liabilities		58,150		58,150		—		58,150		—
Accrued interest payable		9,054		9,054		9,054		—		—

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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