Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

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

The following 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:



	September 30, 2017
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	23,049	$	—	$	23,049
Available for sale investment securities:
Equity securities	13,059		—		—		13,059
U.S. Government sponsored agency securities	—		6,015		—		6,015
State and municipal securities	—		413,913		—		413,913
Corporate debt securities	—		89,755		3,222		92,977
Collateralized mortgage obligations	—		593,678		—		593,678
Residential mortgage-backed securities	—		1,182,086		—		1,182,086
Commercial mortgage-backed securities	—		161,632		—		161,632
Auction rate securities	—		—		98,156		98,156
Total available for sale investment securities	13,059		2,447,079		101,378		2,561,516
Other assets	18,742		49,041		—		67,783
Total assets	$	31,801	$	2,519,169	$	101,378	$	2,652,348
Other liabilities	$	18,607	$	41,569	$	—	$	60,176



	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
Residential mortgage-backed securities	—		1,317,838		—		1,317,838
Commercial mortgage-backed securities	—		24,563		—		24,563
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

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):



	Three months ended September 30, 2017
	Pooled Trust Preferred Securities		Single-issuer Trust Preferred Securities			ARCs
	(in thousands)
Balance at June 30, 2017	$	422	$	2,775		$	97,923
Unrealized adjustment to fair value ⁽¹⁾	—		(28		)	233
Discount accretion ⁽²⁾	—		3			—
Balance at September 30, 2017	$	422	$	2,750		$	98,156

	Three months ended September 30, 2016
Balance at June 30, 2016	$	706	$	2,425		$	97,886
Unrealized adjustment to fair value ⁽¹⁾	—		7			(318		)
Discount accretion ⁽²⁾	—		3			158
Balance at September 30, 2016	$	706	$	2,435		$	97,726

	Nine months ended September 30, 2017
	Pooled Trust Preferred Securities		Single-issuer Trust Preferred Securities			ARCs
	(in thousands)
Balance at December 31, 2016	$	422	$	2,450		$	97,256
Unrealized adjustment to fair value ⁽¹⁾	—		291			705
Discount accretion ⁽²⁾	—		9			195
Balance at September 30, 2017	$	422	$	2,750		$	98,156

	Nine months ended September 30, 2016
Balance at December 31, 2015	$	706	$	2,630		$	98,059
Unrealized adjustment to fair value ⁽¹⁾	—		(204		)	(668		)
Discount accretion ⁽²⁾	—		9			335
Balance at September 30, 2016	$	706	$	2,435		$	97,726


(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 Level 3 financial assets measured at fair value on a nonrecurring basis and reported on the Corporation’s consolidated balance sheets:



	September 30, 2017		December 31, 2016
	(in thousands)
Net loans	$	140,779	$	132,576
OREO	10,542		12,815
MSRs	37,874		37,532
Total assets	$	189,195	$	182,923

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 September 30, 2017 and December 31, 2016. In addition, a general description of the methods and assumptions used to estimate such fair values is also provided.



	September 30, 2017				December 31, 2016
	Book Value		Estimated Fair Value		Book Value		Estimated Fair Value
	(in thousands)
FINANCIAL ASSETS
Cash and due from banks	$	99,803	$	99,803	$	118,763	$	118,763
Interest-bearing deposits with other banks	582,845		582,845		233,763		233,763
Federal Reserve Bank and Federal Home Loan Bank stock	62,951		62,951		57,489		57,489
Loans held for sale ⁽¹⁾	23,049		23,049		28,697		28,697
Available for sale investment securities ⁽¹⁾	2,561,516		2,561,516		2,559,227		2,559,227
Net Loans ⁽¹⁾	15,314,654		15,086,654		14,530,593		14,387,454
Accrued interest receivable	50,082		50,082		46,294		46,294
Other financial assets ⁽¹⁾	219,434		219,434		206,132		206,132
FINANCIAL LIABILITIES
Demand and savings deposits	$	13,274,319	$	13,274,319	$	12,259,622	$	12,259,622
Brokered Deposits	109,936		109,936		—		—
Time deposits	2,757,525		2,759,913		2,753,242		2,769,757
Short-term borrowings	298,751		298,751		541,317		541,317
Accrued interest payable	10,568		10,568		9,632		9,632
Other financial liabilities ⁽¹⁾	234,160		234,160		216,080		216,080
Federal Home Loan Bank advances and other long-term debt	1,038,159		1,035,053		929,403		928,167


(1)	These financial instruments, or certain financial instruments in 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.