Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

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

The following tables present assets and liabilities measured at fair value on a recurring basis and reported on the consolidated balance sheets:



	June 30, 2019
	Level 1		Level 2		Level 3		Total
	(in thousands)
Loans held for sale	$	—	$	45,754	$	—	$	45,754
Available for sale investment securities:
State and municipal securities	—		316,334		—		316,334
Corporate debt securities	—		195,052		2,370		197,422
Collateralized mortgage obligations	—		899,117		—		899,117
Residential mortgage-backed securities	—		329,275		—		329,275
Commercial mortgage-backed securities	—		440,281		—		440,281
Auction rate securities	—		—		103,365		103,365
Total available for sale investment securities	—		2,180,059		105,735		2,285,794
Other assets:
Investments held in Rabbi Trust	20,811		—		—		20,811
Derivative assets	541		140,353		—		140,894
Total assets	$	21,352	$	2,366,166	$	105,735	$	2,493,253
Other liabilities:
Deferred compensation liabilities	20,811		—		—		20,811
Derivative liabilities	475		77,883		—		78,358
Total liabilities	$	21,286	$	77,883	$	—	$	99,169



	December 31, 2018
	Level 1		Level 2		Level 3		Total
	(in thousands)
Loans held for sale	$	—	$	27,099	$	—	$	27,099
Available for sale investment securities:
U.S. Government sponsored agency securities	—		31,632		—		31,632
State and municipal securities	—		279,095		—		279,095
Corporate debt securities	—		106,258		3,275		109,533
Collateralized mortgage obligations	—		832,080		—		832,080
Residential mortgage-backed securities	—		463,344		—		463,344
Commercial mortgage-backed securities	—		261,616		—		261,616
Auction rate securities	—		—		102,994		102,994
Total available for sale investment securities	—		1,974,025		106,269		2,080,294
Other assets:
Investments held in Rabbi Trust	18,415		—		—		18,415
Derivative assets	392		62,552		—		62,944
Total assets	$	18,807	$	2,063,676	$	106,269	$	2,188,752
Other liabilities:
Deferred compensation liabilities	$	18,415	$	—	$	—	$	18,415
Derivative liabilities	381		48,185		—		48,566
Total liabilities	$	18,796	$	48,185	$	—	$	66,981

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):



	Pooled Trust Preferred Securities			Single-issuer Trust Preferred Securities			ARCs
Three months ended June 30, 2019	(in thousands)
Balance at March 31, 2019	$	770		$	2,430		$	102,810
Sales	(770		)	—			—
Unrealized adjustment to fair value ⁽¹⁾	—			(60		)	555
Balance at June 30, 2019	$	—		$	2,370		$	103,365

Three months ended June 30, 2018
Balance at March 31, 2018	$	865		$	3,095		$	103,049
Unrealized adjustment to fair value ⁽¹⁾	10			102			73
Discount accretion ⁽²⁾	—			3			—
Balance at June 30, 2018	$	875		$	3,200		$	103,122

Six months ended June 30, 2019
Balance at December 31, 2018	$	875		$	2,400		$	102,994
Sales	(770		)	—			—
Unrealized adjustment to fair value ⁽¹⁾	(105		)	(30		)	371
Balance at June 30, 2019	$	—		$	2,370		$	103,365

Six months ended June 30, 2018
Balance at December 31, 2017	$	707		$	3,050		$	98,668
Unrealized adjustment to fair value ⁽¹⁾	168			144			4,454
Discount accretion ⁽²⁾	—			6			—
Balance at June 30, 2018	$	875		$	3,200		$	103,122


(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 at estimated fair value" 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:



	June 30, 2019		December 31, 2018
	(in thousands)
Net loans and leases	$	152,451	$	149,846
OREO	7,241		10,518
MSRs	44,916		50,204
Total assets	$	204,608	$	210,568

Details of Book Value and Fair Value of Financial Instruments

he following table presents the carrying amounts and estimated fair values of the Corporation’s financial instruments as of June 30, 2019 and December 31, 2018. A general description of the methods and assumptions used to estimate such fair values follows:



	June 30, 2019
			Estimated Fair Value
	Carrying Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	498,811	$	498,811	$	—	$	—	$	498,811
FRB and FHLB stock	97,248		—		97,248		—		97,248
Loans held for sale	45,754		—		45,754		—		45,754
Available for sale investment securities	2,285,794		—		2,180,059		105,735		2,285,794
Held to maturity investment securities	567,564		589,728		—		—		589,728
Net Loans and Leases	16,198,225		—		—		16,019,233		16,019,233
Accrued interest receivable	62,984		62,984		—		—		62,984
Other financial assets	318,776		132,356		140,353		46,067		318,776
FINANCIAL LIABILITIES
Demand and savings deposits	$	13,249,017	$	13,249,017	$	—	$	—	$	13,249,017
Brokered deposits	246,116		206,116		40,292		—		246,408
Time deposits	2,893,762		—		2,894,290		—		2,894,290
Short-term borrowings	1,188,390		1,188,390		—		—		1,188,390
Accrued interest payable	9,218		9,218		—		—		9,218
Other financial liabilities	249,381		164,790		77,883		6,708		249,381
FHLB advances and long-term debt	987,416		—		986,336		—		986,336

	December 31, 2018
			Estimated Fair Value
	Carrying Amount		Level 1		Level 2		Level 3		Total
	(in thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	445,687	$	445,687	$	—	$	—	$	445,687
FRB and FHLB stock	79,283		—		79,283		—		79,283
Loans held for sale	27,099		—		27,099		—		27,099
Available for sale investment securities	2,080,294		—		1,974,025		106,269		2,080,294
Held to maturity investment securities	606,679		611,419		—		—		611,419
Net Loans and Leases	16,005,263		—		—		15,446,895		15,446,895
Accrued interest receivable	58,879		58,879		—		—		58,879
Other financial assets	235,782		124,138		62,552		49,092		235,782
FINANCIAL LIABILITIES
Demand and savings deposits	$	13,478,016	$	13,478,016	$	—	$	—	$	13,478,016
Brokered deposits	176,239		176,239		—		—		176,239
Time deposits	2,721,904		—		2,712,296		—		2,712,296
Short-term borrowings	754,777		754,777		—		—		754,777
Accrued interest payable	10,529		10,529		—		—		10,529
Other financial liabilities	218,061		161,003		48,185		8,873		218,061
FHLB advances and long-term debt	992,279		—		970,985		—		970,985