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Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2015
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured on Recurring Basis at Fair Value
The table below presents the Corporation’s investment securities available for sale and derivative financial instruments measured at fair value on a recurring basis as of December 31, 2015 and 2014, aggregated by the level in the fair value hierarchy within which those measurements fall.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
 
December 31, 2015
 
Fair Value Measurements Using
 
Level 1
 
Level 2
 
Level 3
 
($ in Thousands)
Assets:
 
 
 
 
 
 
 
Investment securities available for sale:
 
 
 
 
 
 
 
U.S. Treasury securities
$
997

 
$
997

 
$

 
$

Residential mortgage-related securities:
 
 
 
 
 
 
 
FNMA / FHLMC
1,414,626

 

 
1,414,626

 

GNMA
1,590,003

 

 
1,590,003

 

Private-label
1,709

 

 
1,709

 

GNMA commercial mortgage-related securities
1,955,310

 

 
1,955,310

 

Other securities (debt and equity)
4,769

 
1,569

 
3,000

 
200

Total investment securities available for sale
$
4,967,414

 
$
2,566

 
$
4,964,648

 
$
200

Derivatives (trading and other assets)
$
36,268

 
$

 
$
34,907

 
$
1,361

Liabilities:
 
 
 
 
 
 
 
Derivatives (trading and other liabilities)
$
36,145

 
$

 
$
36,145

 
$

 
December 31, 2014
 
Fair Value Measurements Using
 
Level 1
 
Level 2
 
Level 3
 
($ in Thousands)
Assets:
 
 
 
 
 
 
 
Investment securities available for sale:
 
 
 
 
 
 
 
U.S. Treasury securities
$
998

 
$
998

 
$

 
$

Municipal securities
582,679

 

 
582,679

 

Residential mortgage-related securities:
 
 
 
 
 
 
 
FNMA / FHLMC
3,563,457

 

 
3,563,457

 

GNMA
167,332

 

 
167,332

 

Private-label
2,294

 

 
2,294

 

GNMA commercial mortgage-related securities
1,073,893

 

 
1,073,893

 

Other securities (debt and equity)
6,159

 
2,959

 
3,000

 
200

Total investment securities available for sale
$
5,396,812

 
$
3,957

 
$
5,392,655

 
$
200

Derivatives (trading and other assets)
$
43,164

 
$

 
$
41,217

 
$
1,947

Liabilities:
 
 
 
 
 
 
 
Derivatives (trading and other liabilities)
$
45,818

 
$

 
$
43,383

 
$
2,435

Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)
The table below presents a rollforward of the balance sheet amounts for the years ended December 31, 2015 and 2014, for financial instruments measured on a recurring basis and classified within Level 3 of the fair value hierarchy.
 
Investment Securities
Available for Sale
 
Derivative Financial
Instruments
 
($ in Thousands)
Balance December 31, 2013
$
299

 
$
1,717

Total net losses included in income:
 
 
 
Mortgage derivative loss

 
(2,205
)
Sale of investment securities
(99
)
 

Balance December 31, 2014
$
200

 
$
(488
)
Total net gains included in income:
 
 
 
Mortgage derivative gain

 
1,849

Balance December 31, 2015
$
200

 
$
1,361

Assets and Liabilities Measured on Nonrecurring Basis at Fair Value
The table below presents the Corporation’s loans held for sale, impaired loans, and mortgage servicing rights measured at fair value on a nonrecurring basis as of December 31, 2015 and 2014, aggregated by the level in the fair value hierarchy within which those measurements fall.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
 
December 31, 2015
 
Fair Value Measurements Using
Income Statement Category of
Adjustment Recognized in Income
Adjustment Recognized in Income
 
Level 1
 
Level 2
 
Level 3
 
($ in Thousands)
 
 
Assets:
 
 
 
Loans held for sale
$
124,915

 
$

 
$
124,915

 
$

Mortgage banking, net
$
(155
)
Impaired loans(1)
41,891

 

 

 
41,891

Provision for credit losses
(7,796
)
Mortgage servicing rights
70,686

 

 

 
70,686

Mortgage banking, net
425

 
December 31, 2014
 
Fair Value Measurements Using
Income Statement Category of
Adjustment Recognized in Income
Adjustment Recognized in Income
 
Level 1
 
Level 2
 
Level 3
 
($ in Thousands)
 
 
Assets:
 
 
 
Loans held for sale
$
156,423

 
$

 
$
156,423

 
$

Mortgage banking, net
$

Impaired loans(1)
53,832

 

 

 
53,832

Provision for credit losses
(17,272
)
Mortgage servicing rights
66,342

 

 

 
66,342

Mortgage banking, net
(321
)

(1)
Represents individually evaluated impaired loans, net of the related allowance for loan losses.
Estimated fair values of financial instruments
The estimated fair values of the Corporation’s financial instruments were as follows.
 
December 31, 2015
 
Carrying
Amount
 
Fair Value
 
Fair Value Measurements Using
 
Level 1
 
Level 2
 
Level 3
 
($ in Thousands)
Financial assets:
 
 
 
 
 
 
 
 
 
Cash and due from banks
$
374,921

 
$
374,921

 
$
374,921

 
$

 
$

Interest-bearing deposits in other financial institutions
79,764

 
79,764

 
79,764

 

 

Federal funds sold and securities purchased under agreements to resell
19,000

 
19,000

 
19,000

 

 

Investment securities held to maturity
1,168,230

 
1,184,442

 

 
1,184,442

 

Investment securities available for sale
4,967,414

 
4,967,414

 
2,566

 
4,964,648

 
200

FHLB and Federal Reserve Bank stocks
147,240

 
147,240

 

 
147,240

 

Loans held for sale
124,915

 
124,915

 

 
124,915

 

Loans, net
18,440,079

 
18,389,832

 

 

 
18,389,832

Bank owned life insurance
583,019

 
583,019

 

 
583,019

 

Interest rate-related instruments
29,391

 
29,391

 

 
29,391

 

Foreign currency exchange forwards
1,532

 
1,532

 

 
1,532

 

Interest rate lock commitments to originate residential mortgage loans held for sale
958

 
958

 

 

 
958

Forward commitments to sell residential mortgage loans
403

 
403

 

 

 
403

Purchased options (time deposit)
2,715

 
2,715

 

 
2,715

 

Commodity contracts
1,269

 
1,269

 

 
1,269

 

Financial liabilities:
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts
$
19,444,863

 
$
19,444,863

 
$

 
$

 
$
19,444,863

Brokered CDs and other time deposits
1,562,802

 
1,564,464

 

 
1,564,464

 

Short-term funding
834,416

 
834,416

 

 
834,416

 

Long-term funding
2,679,350

 
2,728,112

 

 
2,728,112

 

Interest rate-related instruments
30,886

 
30,886

 

 
30,886

 

Foreign currency exchange forwards
1,398

 
1,398

 

 
1,398

 

Commodity contracts
1,146

 
1,146

 

 
1,146

 

Standby letters of credit (1)
2,954

 
2,954

 

 
2,954

 

Written options (time deposit)
2,715

 
2,715

 

 
2,715

 

 
December 31, 2014
 
Carrying
Amount
 
Fair Value
 
Fair Value Measurements Using
 
Level 1
 
Level 2
 
Level 3
 
($ in Thousands)
Financial assets:
 
 
 
 
 
 
 
 
 
Cash and due from banks
$
444,113

 
$
444,113

 
$
444,113

 
$

 
$

Interest-bearing deposits in other financial institutions
571,924

 
571,924

 
571,924

 

 

Federal funds sold and securities purchased under agreements to resell
16,030

 
16,030

 
16,030

 

 

Investment securities held to maturity
404,455

 
413,067

 

 
413,067

 

Investment securities available for sale
5,396,812

 
5,396,812

 
3,957

 
5,392,655

 
200

FHLB and Federal Reserve Bank stocks
189,107

 
189,107

 

 
189,107

 

Loans held for sale
154,935

 
156,423

 

 
156,423

 

Loans, net
17,327,544

 
17,427,647

 

 

 
17,427,647

Bank owned life insurance
574,154

 
574,154

 

 
574,154

 

Interest rate-related instruments
33,023

 
33,023

 

 
33,023

 

Foreign currency exchange forwards
2,140

 
2,140

 

 
2,140

 

Interest rate lock commitments to originate residential mortgage loans held for sale
1,947

 
1,947

 

 

 
1,947

Purchased options (time deposit)
6,054

 
6,054

 

 
6,054

 

Financial liabilities:
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts
$
17,192,049

 
$
17,192,049

 
$

 
$

 
$
17,192,049

Brokered CDs and other time deposits
1,571,455

 
1,571,455

 

 
1,571,455

 

Short-term funding
1,068,288

 
1,068,288

 

 
1,068,288

 

Long-term funding
3,930,117

 
3,975,605

 

 
3,975,605

 

Interest rate-related instruments
35,372

 
35,372

 

 
35,372

 

Foreign currency exchange forwards
1,957

 
1,957

 

 
1,957

 

Standby letters of credit(1)
3,542

 
3,542

 

 
3,542

 

Forward commitments to sell residential mortgage loans
2,435

 
2,435

 


 

 
2,435

Written options (time deposit)
6,054

 
6,054

 

 
6,054

 


(1)
The commitment on standby letters of credit was $297 million and $353 million at December 31, 2015 and 2014, respectively. See Note 16 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments.