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Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2017
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured on Recurring Basis at Fair Value
The table below presents the Corporation’s financial instruments measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016, aggregated by the level in the fair value hierarchy within which those measurements fall.
 
Fair Value Hierarchy
 
March 31, 2017
 
December 31, 2016
 
 
 
($ in Thousands)
Assets:
 
 
 
 
 
Investment securities available for sale:
 
 
 
 
 
U.S. Treasury securities
 Level 1
 
$
1,005

 
$
1,000

Residential mortgage-related securities:
 
 
 
 
 
FNMA / FHLMC
 Level 2
 
590,419

 
639,930

GNMA
 Level 2
 
2,039,826

 
2,004,475

Private-label
 Level 2
 
1,102

 
1,121

GNMA commercial mortgage-related securities
 Level 2
 
1,663,337

 
2,028,898

Other securities (debt and equity)
 Level 1
 
1,601

 
1,602

Other securities (debt and equity)
 Level 2
 
3,200

 
3,000

Other securities (debt and equity) 
 Level 3
 
—

 
200

Total investment securities available for sale
 Level 1
 
2,606

 
2,602

Total investment securities available for sale
 Level 2
 
4,297,884

 
4,677,424

Total investment securities available for sale
 Level 3
 
—

 
200

Residential loans held for sale (a)
 Level 2
 
34,051

 
—

Interest rate-related instruments
 Level 2
 
31,841

 
33,671

Foreign currency exchange forwards
 Level 2
 
812

 
2,002

Interest rate lock commitments to originate residential mortgage loans held for sale
 Level 3
 
1,803

 
206

Forward commitments to sell residential mortgage loans
 Level 3
 
—

 
2,908

Commodity contracts
 Level 2
 
16,653

 
16,725

Purchased options (time deposit)
 Level 2
 
2,290

 
2,576

Liabilities:
 
 
 
 
 
Interest rate-related instruments
 Level 2
 
$
31,113

 
$
33,188

Foreign currency exchange forwards
 Level 2
 
774

 
1,943

Forward commitments to sell residential mortgage loans
 Level 3
 
373

 
—

Commodity contracts
 Level 2
 
15,674

 
15,972

Written options (time deposit)
 Level 2
 
2,290

 
2,576


(a)
Effective January 1, 2017, residential loans originated for sale are accounted for under the fair value option. Prior periods have not been restated. For more information on this accounting policy change, please refer to Note 3 to the Notes to the Consolidated Financial Statements.
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 three months ended March 31, 2017 and the year ended December 31, 2016, 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, 2015
$
200

 
$
1,361

Total net gains included in income:
 
 
 
Mortgage derivative gain
—

 
1,753

Balance December 31, 2016
$
200

 
$
3,114

Total net losses included in income:
 
 
 
Mortgage derivative loss
—

 
(1,684
)
Transfer out of level 3 securities(a)
(200
)
 
—

Balance March 31, 2017
$
—

 
$
1,430


(a) During the first quarter of 2017, the $200,000 level 3 investment security was transferred to level 2 based upon new pricing information.

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, aggregated by the level in the fair value hierarchy within which those measurements fall.
 
 
Income Statement Category of
Adjustment Recognized in Income
Adjustment Recognized in Income
($ in Thousands)
Fair Value Hierarchy
 
Fair Value
March 31, 2017
 
 
 
 
 
Assets:
 
 
 
Commercial loans held for sale (a)
Level 2
 
$
2,901

Provision for credit losses
$
—

Impaired loans (c)
Level 3
 
93,552

Provision for credit losses
(25,785
)
Other real estate owned
Level 2
 
921

Foreclosure / OREO expense, net
(583
)
Mortgage servicing rights
Level 3
 
68,037

Mortgage banking, net
(217
)
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
Assets:
 
 
 
 
 
Commercial loans held for sale
Level 2
 
$
12,474

Provision for credit losses
$
(559
)
Residential loans held for sale (b)
Level 2
 
108,010

Mortgage banking, net
(3,760
)
Impaired loans (c)
Level 3
 
79,270

Provision for credit losses
(75,194
)
Other real estate owned
Level 2
 
9,752

Foreclosure / OREO expense, net
(1,091
)
Mortgage servicing rights
Level 3
 
73,149

Mortgage banking, net
200


(a)
Commercial loans held for sale are carried at the lower of cost or estimated fair value. At March 31, 2017, the estimated fair value exceeded the cost and therefore there was no adjustment recognized in Income.
(b)
Effective January 1, 2017, residential loans originated for sale are accounted for under the fair value option. Prior periods have not been restated. For more information on this accounting policy change, please refer to Note 3 to the Notes to the Consolidated Financial Statements.
(c)
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.
 
 
 
March 31, 2017
 
December 31, 2016
 
Fair Value Hierarchy Level
 
Carrying Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
 
 
 
 
 
 
($ in Thousands)
Financial assets:
 
 
 
 
 
 
 
 
 
Cash and due from banks
 Level 1
 
$
332,601

 
$
332,601

 
$
446,558

 
$
446,558

Interest-bearing deposits in other financial institutions
 Level 1
 
337,167

 
337,167

 
149,175

 
149,175

Federal funds sold and securities purchased under agreements to resell
 Level 1
 
19,700

 
19,700

 
46,500

 
46,500

Investment securities held to maturity
Level 2
 
1,554,843

 
1,550,322

 
1,273,536

 
1,264,674

Investment securities available for sale
 Level 1
 
2,606

 
2,606

 
2,602

 
2,602

Investment securities available for sale
Level 2
 
4,297,884

 
4,297,884

 
4,677,424

 
4,677,424

Investment securities available for sale
Level 3
 
—

 
—

 
200

 
200

FHLB and Federal Reserve Bank stocks
Level 2
 
139,273

 
139,273

 
140,001

 
140,001

Commercial loans held for sale
Level 2
 
2,901

 
2,901

 
12,474

 
12,474

Residential loans held for sale
Level 2
 
34,051

 
34,051

 
108,010

 
108,010

Loans, net
Level 3
 
19,865,011

 
19,752,810

 
19,776,381

 
19,680,317

Bank owned life insurance
Level 2
 
587,600

 
587,600

 
585,290

 
585,290

Derivatives (trading and other assets)
Level 2
 
51,596

 
51,596

 
54,974

 
54,974

Derivatives (trading and other assets)
Level 3
 
1,803

 
1,803

 
3,114

 
3,114

Financial liabilities:
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts
Level 3
 
$
20,213,126

 
$
20,213,126

 
$
20,282,321

 
$
20,282,321

Brokered CDs and other time deposits
Level 2
 
1,614,909

 
1,614,909

 
1,606,127

 
1,606,127

Short-term funding
Level 2
 
1,080,867

 
1,080,867

 
1,092,035

 
1,092,035

Long-term funding
Level 2
 
2,761,955

 
2,790,093

 
2,761,795

 
2,791,841

Standby letters of credit (a)
Level 2
 
2,648

 
2,648

 
2,566

 
2,566

Derivatives (trading and other liabilities)
Level 2
 
49,851

 
49,851

 
53,679

 
53,679

Derivatives (trading and other liabilities)
 Level 3
 
373

 
373

 
—

 
—

(a)
The commitment on standby letters of credit was $269 million and $260 million at March 31, 2017 and December 31, 2016, respectively. See Note 12 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments.