Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2011

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Following is a summary of the Corporation’s assets and liabilities measured at fair value on a recurring basis and reported on the consolidated balance sheets at December 31:



	2011
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	47,009	$	—	$	47,009
Available for sale investment securities:
Equity securities	34,586		—		—		34,586
U.S. Government securities	—		334		—		334
U.S. Government sponsored agency securities	—		4,073		—		4,073
State and municipal securities	—		322,018		—		322,018
Corporate debt securities	—		114,017		9,289		123,306
Collateralized mortgage obligations	—		1,001,209		—		1,001,209
Mortgage-backed securities	—		880,097		—		880,097
Auction rate securities	—		—		225,211		225,211
Total available for sale investment securities	34,586		2,321,748		234,500		2,590,834
Other financial assets	13,130		3,901		—		17,031
Total assets	$	47,716	$	2,372,658	$	234,500	$	2,654,874
Other financial liabilities	$	13,130	$	2,734	$	—	$	15,864

	2010
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	83,940	$	—	$	83,940
Available for sale investment securities:
Equity securities	40,070		—		—		40,070
U.S. Government securities	—		1,649		—		1,649
U.S. Government sponsored agency securities	—		5,058		—		5,058
State and municipal securities	—		349,563		—		349,563
Corporate debt securities	—		111,675		13,111		124,786
Collateralized mortgage obligations	—		1,104,058		—		1,104,058
Mortgage-backed securities	—		871,472		—		871,472
Auction rate securities	—		—		260,679		260,679
Total available for sale investment securities	40,070		2,443,475		273,790		2,757,335
Other financial assets	13,582		9,256		—		22,838
Total assets	$	53,652	$	2,536,671	$	273,790	$	2,864,113
Other financial liabilities	$	13,582	$	760	$	—	$	14,342

Schedule of Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis using Level 3 Inputs

The following tables present the changes in the Corporation’s available for sale investment securities measured at fair value on a recurring basis using unobservable inputs (Level 3) for the years ended December 31:



	2011
	Pooled Trust Preferred Securities			Single-issuer Trust Preferred Securities			Auction Rate Securities (ARCs)
	(in thousands)
Balance, December 31, 2010	$	4,528		$	8,583		$	260,679
Transfer from Level 3 to Level 2 (1)	—			(800		)	—
Realized adjustments to fair value (2)	(1,406		)	—			(292		)
Unrealized adjustments to fair value (3)	2,465			28			(4,383		)
Sales (4)	—			—			—
Settlements - maturities	—			(1,650		)
Settlements - calls	(476		)	(1,980		)	(34,844		)
(Premium amortization) discount accretion (5)	(2		)	(1		)	4,051
Balance, December 31, 2011	$	5,109		$	4,180		$	225,211



	2010
	Pooled Trust Preferred Securities			Single-issuer Trust Preferred Securities		Auction Rate Securities (ARCs)
	(in thousands)
Balance, December 31, 2009	$	4,979		$	6,981	$	289,203
Transfer from Level 2 to Level 3	—			650
Realized adjustments to fair value (2)	(11,969		)	—		—
Unrealized adjustments to fair value (3)	11,842			951		(10,850		)
Sales	—			—		(15,266		)
Settlements - calls	(328		)	—		(8,969		)
Discount accretion (4)	4			1		6,561
Balance, December 31, 2010	$	4,528		$	8,583	$	260,679

(1)

During the year ended December 31, 2011, one single-issuer trust preferred security with a fair value of $800,000 as of December 31, 2010 was reclassified as a Level 2 asset. As of December 31, 2011, the fair value of this security was measured by a third-party pricing service using both quoted prices for similar assets and model-based valuation techniques that derived fair value based on market-corroborated data, such as instruments with similar prepayment speeds and default interest rates. As of December 31, 2010, the fair value of this security was determined based on quotes provided by third-party brokers who determined its fair value based predominantly on an internal valuation model.


(2)	For pooled trust preferred securities and ARCs, realized adjustments to fair value represent credit related other-than-temporary impairment charges that were recorded as a reduction to investment securities gains on the consolidated statements of income.


(3)	Pooled trust preferred securities, single-issuer trust preferred securities and ARCs are classified as available for sale investment securities; as such, the unrealized adjustment to fair value was recorded as an unrealized holding gain (loss) and included as a component of available for sale investment securities on the consolidated balance sheet.


(4)	During the year ended December 31, 2011, the Corporation sold one pooled trust preferred security with a par value of $6.4 million and a book value of zero for no gain or loss. This security had a book value of zero as a result of prior year other-than-temporary impairment charges.


(5)	Included as a component of net interest income on the consolidated statements of incom

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis

The following tables present the Corporation’s financial assets measured at fair value on a nonrecurring basis and reported on the Corporation’s consolidated balance sheets at December 31:



	2011
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	216,812	$	216,812
Other financial assets	—		—		63,919		63,919
Total assets	$	—	$	—	$	280,731	$	280,731
Reserve for unfunded commitments	$	—	$	—	$	1,706	$	1,706

	2010
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	—		—		457,678		457,678
Other financial assets	—		—		62,109		62,109
Total assets	$	—	$	—	$	519,787	$	519,787
Reserve for unfunded commitments	$	—	$	—	$	1,227	$	1,227

Details of Book Value and Fair Value of Financial Instruments



	2011				2010
	Book Value		Estimated Fair Value		Book Value		Estimated Fair Value
FINANCIAL ASSETS	(in thousands)
Cash and due from banks	$	292,598	$	292,598	$	198,954	$	198,954
Interest-bearing deposits with other banks	175,336		175,336		33,297		33,297
Loans held for sale (1)	47,009		47,009		83,940		83,940
Securities held to maturity	6,669		6,699		7,751		7,818
Securities available for sale (1)	2,673,298		2,673,298		2,853,733		2,853,733
Loans, net of unearned income (1)	11,968,970		11,992,586		11,933,307		11,909,539
Accrued interest receivable	51,098		51,098		53,841		53,841
Other financial assets (1)	315,952		315,952		282,174		282,174
FINANCIAL LIABILITIES
Demand and savings deposits	$	8,511,789	$	8,511,789	$	7,758,613	$	7,758,613
Time deposits	4,013,950		4,056,247		4,629,968		4,677,494
Short-term borrowings	597,033		597,033		674,077		674,077
Accrued interest payable	25,686		25,686		33,333		33,333
Other financial liabilities (1)	69,816		69,816		80,250		80,250
FHLB advances and long-term debt	1,040,149		982,010		1,119,450		1,077,724


(1)	Description of fair value determinations for these financial instruments, or certain financial instruments within these categories, measured at fair value on the Corporation’s consolidated balance sheets, are disclosed above.

Schedule of Financial Instruments Classified as Predominantly Short-Term Instruments

The following instruments are predominantly short-term:



Assets		Liabilities
Cash and due from banks		Demand and savings deposits
Interest bearing deposits		Short-term borrowings
Federal funds sold		Accrued interest payable
Accrued interest receivable		Other financial liabilities

- Definition

Tabular disclosure of assets and liabilities by class, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). The disclosures that may be required or desired include: (a) the fair value measurements recorded during the period and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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- 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, 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, issuances, 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 (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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