Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

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

The following tables summarizes the Corporation’s assets and liabilities measured at fair value on a recurring basis and reported on the consolidated balance sheets as of December 31:



	2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	28,697	$	—	$	28,697
Available for sale investment securities:
Equity securities	24,526		—		—		24,526
U.S. Government sponsored agency securities	—		134		—		134
State and municipal securities	—		391,641		—		391,641
Corporate debt securities	—		106,537		2,872		109,409
Collateralized mortgage obligations	—		593,860		—		593,860
Mortgage-backed securities	—		1,342,401		—		1,342,401
Auction rate securities	—		—		97,256		97,256
Total available for sale investment securities	24,526		2,434,573		100,128		2,559,227
Other assets	17,111		44,481		—		61,592
Total assets	$	41,637	$	2,507,751	$	100,128	$	2,649,516
Other liabilities	$	17,032	$	41,734	$	—	$	58,766

	2015
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	16,886	$	—	$	16,886
Available for sale investment securities:
Equity securities	21,514		—		—		21,514
U.S. Government sponsored agency securities	—		25,136		—		25,136
State and municipal securities	—		262,765		—		262,765
Corporate debt securities	—		93,619		3,336		96,955
Collateralized mortgage obligations	—		821,509		—		821,509
Mortgage-backed securities	—		1,158,835		—		1,158,835
Auction rate securities	—		—		98,059		98,059
Total available for sale investment securities	21,514		2,361,864		101,395		2,484,773
Other assets	16,129		34,465		—		50,594
Total assets	$	37,643	$	2,413,215	$	101,395	$	2,552,253
Other liabilities	$	15,914	$	33,010	$	—	$	48,924

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 available for sale investment securities measured at fair value on a recurring basis using unobservable inputs (Level 3) for the years ended December 31:



	Pooled Trust Preferred Securities			Single-issuer Trust Preferred Securities			ARCs
	(in thousands)
Balance as of December 31, 2014	$	4,088		$	3,820		$	100,941
Unrealized adjustments to fair value ⁽¹⁾	366			(230		)	(903		)
Sales	(3,633		)	—			—
Settlements - calls	(117		)	(970		)	(2,446		)
Discount accretion ⁽²⁾	2			10			467
Balance as of December 31, 2015	706			2,630			98,059
Unrealized adjustments to fair value ⁽¹⁾	(286		)	(190		)	(1,246		)
Discount accretion ⁽²⁾	2			10			443
Balance as of December 31, 2016	$	422		$	2,450		$	97,256


(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 sheets.


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

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis

The following table presents the Corporation's financial assets measured at fair value on a nonrecurring basis and reported on the consolidated balance sheets at December 31:



	2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	132,576	$	132,576
Other financial assets	—		—		50,347		50,347
Total assets	$	—	$	—	$	182,923	$	182,923

	2015
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	138,491	$	138,491
Other financial assets	—		—		52,043		52,043
Total assets	$	—	$	—	$	190,534	$	190,534

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 the estimated fair values of the Corporation’s financial instruments as of December 31, 2016 and 2015. A general description of the methods and assumptions used to estimate such fair values is also provided.



	2016				2015
	Book Value		Estimated Fair Value		Book Value		Estimated Fair Value
	(in thousands)
FINANCIAL ASSETS
Cash and due from banks	$	118,763	$	118,763	$	101,120	$	101,120
Interest-bearing deposits with other banks	233,763		233,763		230,300		230,300
Federal Reserve Bank and FHLB stock	57,489		57,489		62,216		62,216
Loans held for sale (1)	28,697		28,697		16,886		16,886
Securities available for sale (1)	2,559,227		2,559,227		2,484,773		2,484,773
Net Loans (1)	14,530,593		14,387,454		13,669,548		13,540,903
Accrued interest receivable	46,294		46,294		42,767		42,767
Other financial assets (1)	206,132		206,132		166,920		166,920
FINANCIAL LIABILITIES
Demand and savings deposits	$	12,259,622	$	12,259,622	$	11,267,367	$	11,267,367
Time deposits	2,753,242		2,769,757		2,864,950		2,862,868
Short-term borrowings	541,317		541,317		497,663		497,663
Accrued interest payable	9,632		9,632		10,724		10,724
Other financial liabilities (1)	216,080		216,080		190,927		190,927
FHLB advances and long-term debt	929,403		928,167		949,542		959,315


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