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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2016
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 September 30, 2016 and December 31, 2015, 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
 
Fair Value Hierarchy
 
September 30, 2016
 
December 31, 2015
 
 
 
($ in Thousands)
Assets:
 
 
 
 
 
Investment securities available for sale:
 
 
 
 
 
U.S. Treasury securities
Level 1
 
$
1,001

 
$
997

Residential mortgage-related securities:
 
 
 
 
 
FNMA / FHLMC
Level 2
 
912,860

 
1,414,626

GNMA
Level 2
 
1,811,529

 
1,590,003

Private-label
Level 2
 
1,200

 
1,709

GNMA commercial mortgage-related securities
Level 2
 
2,114,669

 
1,955,310

Other securities (debt and equity)
Level 1
 
1,629

 
1,569

Other securities (debt and equity)
Level 2
 
3,000

 
3,000

Other securities (debt and equity)
Level 3
 
200

 
200

Total investment securities available for sale
Level 1
 
2,630

 
2,566

Total investment securities available for sale
Level 2
 
4,843,258

 
4,964,648

Total investment securities available for sale
Level 3
 
200

 
200

Interest rate-related instruments
Level 2
 
47,504

 
29,391

Foreign currency exchange forwards
Level 2
 
1,063

 
1,532

Interest rate lock commitments to originate residential mortgage loans held for sale
Level 3
 
3,726

 
958

Forward commitments to sell residential mortgage loans
Level 3
 
—

 
403

Commodity contracts
Level 2
 
12,213

 
1,269

Purchased options (time deposit)
Level 2
 
2,455

 
2,715

Liabilities:
 
 
 
 
 
Interest rate-related instruments
Level 2
 
$
49,887

 
$
30,886

Foreign currency exchange forwards
Level 2
 
1,014

 
1,398

Forward commitments to sell residential mortgage loans
Level 3
 
1,868

 
—

Commodity contracts
Level 2
 
11,400

 
1,146

Written options (time deposit)
Level 2
 
2,455

 
2,715
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 nine months ended September 30, 2016 and the year ended December 31, 2015, 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, 2014
$
200

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

 
1,849

Balance December 31, 2015
$
200

 
$
1,361

Total net gains included in income:
 
 
 
Mortgage derivative gain
—

 
497

Balance September 30, 2016
$
200

 
$
1,858
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 September 30, 2016 and December 31, 2015, 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
 
 
Income Statement Category of
Adjustment Recognized in Income
Adjustment Recognized in Income
($ in Thousands)
Fair Value Hierarchy
 
Fair Value
September 30, 2016
 
 
 
 
 
Assets:
 
 
 
Commercial loans held for sale
Level 2
 
$
16,912

Provision for credit losses
$
(451
)
Mortgage loans held for sale (1)
Level 2
 
214,298

Mortgage banking, net
—

Impaired loans (2)
Level 3
 
47,554

Provision for credit losses
(53,866
)
Mortgage servicing rights
Level 3
 
58,937

Mortgage banking, net
(2,486
)
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
Assets:
 
 
 
 
 
Mortgage loans held for sale
Level 2
 
$
124,915

Mortgage banking, net
$
(155
)
Impaired loans (2)
Level 3
 
41,891

Provision for credit losses
(7,796
)
Mortgage servicing rights
Level 3
 
70,686

Mortgage banking, net
425


(1)
Loans held for sale are carried at the lower of cost or estimated fair value. At September 30, 2016, the estimated fair value exceeded the cost and therefore there was no adjustment recognized in the Consolidated Statements of Income.
(2)
Represents individually evaluated impaired loans, net of the related allowance for loan losses.
Estimated fair values of financial instruments
Fair value estimates, methods, and assumptions are set forth below for the Corporation’s financial instruments.
 
 
 
September 30, 2016
 
December 31, 2015
 
Fair Value Hierarchy Level
 
Carrying Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
 
 
 
 
 
 
($ in Thousands)
Financial assets:
 
 
 
 
 
 
 
 
 
Cash and due from banks
Level 1
 
$
356,047

 
$
356,047

 
$
374,921

 
$
374,921

Interest-bearing deposits in other financial institutions
Level 1
 
240,010

 
240,010

 
79,764

 
79,764

Federal funds sold and securities purchased under agreements to resell
Level 1
 
14,250

 
14,250

 
19,000

 
19,000

Investment securities held to maturity
Level 2
 
1,253,494

 
1,287,830

 
1,168,230

 
1,184,442

Investment securities available for sale
Level 1
 
2,630

 
2,630

 
2,566

 
2,566

Investment securities available for sale
Level 2
 
4,843,258

 
4,843,258

 
4,964,648

 
4,964,648

Investment securities available for sale
Level 3
 
200

 
200

 
200

 
200

FHLB and Federal Reserve Bank stocks
Level 2
 
140,215

 
140,215

 
147,240

 
147,240

Loans held for sale
Level 2
 
230,795

 
231,210

 
124,915

 
124,915

Loans, net
Level 3
 
19,574,465

 
19,588,911

 
18,440,079

 
18,389,832

Bank owned life insurance
Level 2
 
584,088

 
584,088

 
583,019

 
583,019

Derivatives (trading and other assets)
Level 2
 
63,235

 
63,235

 
34,907

 
34,907

Derivatives (trading and other assets)
Level 3
 
3,726

 
3,726

 
1,361

 
1,361

Financial liabilities:
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts
Level 3
 
$
20,221,611

 
$
20,221,611

 
$
19,444,863

 
$
19,444,863

Brokered CDs and other time deposits
Level 2
 
1,526,101

 
1,530,993

 
1,562,802

 
1,564,464

Short-term funding
Level 2
 
1,240,093

 
1,240,093

 
834,416

 
834,416

Long-term funding
Level 2
 
2,761,635

 
2,820,062

 
2,676,164

 
2,728,112

Standby letters of credit (1)
Level 2
 
2,619

 
2,619

 
2,954

 
2,954

Derivatives (trading and other liabilities)
Level 2
 
64,756

 
64,756

 
36,145

 
36,145

Derivatives (trading and other liabilities)
Level 3
 
1,868

 
1,868

 
—

 
—


(1)
The commitment on standby letters of credit was $265 million and $297 million at September 30, 2016 and December 31, 2015, respectively. See Note 12 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments.