Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

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

ollowing tables present summaries of the Corporation’s assets and liabilities measured at fair value on a recurring basis and reported on the consolidated balance sheets:

	March 31, 2013
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	63,045	$	—	$	63,045
Available for sale investment securities:
Equity securities	49,420		—		—		49,420
U.S. Government securities	—		325		—		325
U.S. Government sponsored agency securities	—		894		—		894
State and municipal securities	—		295,193		—		295,193
Corporate debt securities	—		103,318		11,726		115,044
Collateralized mortgage obligations	—		1,305,799		—		1,305,799
Mortgage-backed securities	—		816,063		—		816,063
Auction rate securities	—		—		154,639		154,639
Total available for sale investments	49,420		2,521,592		166,365		2,737,377
Other assets	15,863		11,503		—		27,366
Total assets	$	65,283	$	2,596,140	$	166,365	$	2,827,788
Other liabilities	$	15,249	$	7,052	$	—	$	22,301

	December 31, 2012
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	67,899	$	—	$	67,899
Available for sale investment securities:
Equity securities	50,873		—		—		50,873
U.S. Government securities	—		325		—		325
U.S. Government sponsored agency securities	—		2,397		—		2,397
State and municipal securities	—		315,519		—		315,519
Corporate debt securities	—		102,555		10,287		112,842
Collateralized mortgage obligations	—		1,211,119		—		1,211,119
Mortgage-backed securities	—		879,621		—		879,621
Auction rate securities	—		—		149,339		149,339
Total available for sale investments	50,873		2,511,536		159,626		2,722,035
Other assets	15,259		14,710		—		29,969
Total assets	$	66,132	$	2,594,145	$	159,626	$	2,819,903
Other liabilities	$	15,524	$	8,161	$	—	$	23,685

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

The following table presents 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 three months ended March 31:

	2013
	Pooled Trust Preferred Securities			Single-issuer Trust Preferred Securities		ARC Investments
	(in thousands)
Balance at December 31, 2012	$	6,927		$	3,360	$	149,339
Unrealized adjustment to fair value (1)	1,429			7		5,360
Settlements - calls	—			—		(342		)
Discount accretion (2)	—			3		282
Balance at March 31, 2013	$	8,356		$	3,370	$	154,639
	2012
Balance at December 31, 2011	$	5,109		$	4,180	$	225,211
Unrealized adjustment to fair value (1)	177			178		(2,164		)
Settlements - calls	(223		)	—		(317		)
(Premium amortization) discount accretion (2)	(1		)	2		1,147
Balance at March 31, 2012	$	5,062		$	4,360	$	223,877

(1) 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.

(2) Included as a component of net interest income on the consolidated statements of income.

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis

Certain financial assets are not measured at fair value on an ongoing basis but are subject to fair value measurement in certain circumstances, such as upon their acquisition or when there is evidence of impairment. The following table presents the Corporation’s financial assets measured at fair value on a nonrecurring basis and reported on the Corporation’s consolidated balance sheets:

	March 31, 2013
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	182,433	$	182,433
Other financial assets	—		—		61,146		61,146
Total assets	$	—	$	—	$	243,579	$	243,579

	December 31, 2012
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	191,165	$	191,165
Other financial assets	—		—		62,203		62,203
Total assets	$	—	$	—	$	253,368	$	253,368

Details of Book Value and Fair Value of Financial Instruments

As required by FASB ASC Section 825-10-50, the following table details the book values and estimated fair values of the Corporation’s financial instruments as of March 31, 2013 and December 31, 2012. In addition, a general description of the methods and assumptions used to estimate such fair values is also provided.

Fair values of financial instruments are significantly affected by the assumptions used, principally the timing of future cash flows and discount rates. Because assumptions are inherently subjective in nature, the estimated fair values cannot be substantiated by comparison to independent market quotes and, in many cases, the estimated fair values could not necessarily be realized in an immediate sale or settlement of the instrument. The aggregate fair value amounts presented do not necessarily represent management’s estimate of the underlying value of the Corporation.

	March 31, 2013				December 31, 2012
	Book Value		Estimated Fair Value		Book Value		Estimated Fair Value
	(in thousands)
FINANCIAL ASSETS
Cash and due from banks	$	174,479	$	174,479	$	256,300	$	256,300
Interest-bearing deposits with other banks	97,202		97,202		173,257		173,257
Loans held for sale (1)	63,045		63,045		67,899		67,899
Securities held to maturity	257		279		292		319
Securities available for sale (1)	2,811,847		2,811,847		2,793,725		2,793,725
Loans, net of unearned income (1)	12,377,288		12,345,838		12,146,971		12,129,971
Accrued interest receivable	47,485		47,485		45,786		45,786
Other financial assets (1)	260,857		260,857		201,069		201,069
FINANCIAL LIABILITIES
Demand and savings deposits	$	9,120,164	$	9,120,164	$	9,100,825	$	9,100,825
Time deposits	3,268,296		3,291,037		3,383,338		3,413,060
Short-term borrowings	1,126,966		1,126,966		868,399		868,399
Accrued interest payable	21,393		21,393		19,330		19,330
Other financial liabilities (1)	69,219		69,219		58,255		58,255
Federal Home Loan Bank advances and long-term debt	889,211		843,624		894,253		853,547

(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
Accrued interest receivable	Accrued interest payable