Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

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 June 30, 2018 and December 31, 2017, aggregated by the level in the fair value hierarchy within which those measurements fall.



	Fair Value Hierarchy	June 30, 2018		December 31, 2017
		($ in Thousands)
Assets
Investment securities available for sale
U.S. Treasury securities	Level 1	$	996	$	996
Residential mortgage-related securities
FNMA / FHLMC	Level 2	396,709		464,768
GNMA	Level 2	2,210,189		1,913,350
Private-label	Level 2	1,031		1,059
GNMA commercial mortgage-related securities	Level 2	1,348,282		1,513,277
FFELP asset backed securities	Level 2	299,831		145,176
Other equity securities	Level 1	1,613		1,632
Other debt securities	Level 2	3,000		3,188
Total investment securities available for sale	Level 1	2,609		2,628
Total investment securities available for sale	Level 2	4,259,042		4,040,818
Residential loans held for sale	Level 2	143,022		85,544
Interest rate-related instruments	Level 2	62,708		28,494
Foreign currency exchange forwards	Level 2	3,317		2,495
Interest rate products (designated as hedging instruments)	Level 2	2,396		—
Interest rate lock commitments to originate residential mortgage loans held for sale	Level 3	3,287		1,538
Commodity contracts	Level 2	66,894		38,686
Purchased options (time deposit)	Level 2	1,027		1,175
Liabilities
Interest rate-related instruments	Level 2	$	62,141	$	28,035
Foreign currency exchange forwards	Level 2	3,091		2,339
Forward commitments to sell residential mortgage loans	Level 3	919		313
Commodity contracts	Level 2	66,380		37,286
Written options (time deposit)	Level 2	1,027		1,175

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 six months ended June 30, 2018 and the year ended December 31, 2017, 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, 2016	$	200		$	3,114
Total net gains (losses) included in income
Mortgage derivative gain (loss)	—			(1,889		)
Transfer out of level 3 securities^(a)	(200		)	—
Balance December 31, 2017	$	—		$	1,225
Total net gains (losses) included in income
Mortgage derivative gain (loss)	—			1,147
Balance June 30, 2018	$	—		$	2,372

(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 assets 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			Adjustment Recognized in Income
June 30, 2018
Assets
Impaired loans^(a)	Level 3	$	52,972	Provision for credit losses^(b)	$	(12,431	)
Other real estate owned^(c)	Level 2	1,954		Foreclosure / OREO expense, net	(808		)
Mortgage servicing rights	Level 3	84,585		Mortgage banking, net	607

December 31, 2017
Assets
Impaired loans^(a)	Level 3	$	92,534	Provision for credit losses^(b)	$	(32,159	)
Other real estate owned^(c)	Level 2	2,604		Foreclosure / OREO expense, net	(939		)
Mortgage servicing rights	Level 3	64,387		Mortgage banking, net	(175		)


(a)	Represents individually evaluated impaired loans, net of the related allowance for loan losses.

(b)

Represents provision for credit losses on individually evaluated impaired loans.

Schedule of Assumptions for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Table Text Block]

The table below presents information about these inputs and further discussion is found above.



	Valuation Technique	Significant Unobservable Input	Weighted Average Input Applied
June 30, 2018	Valuation Technique	Significant Unobservable Input	Weighted Average Input Applied
Mortgage servicing rights	Discounted cash flow	Discount rate	11%
Mortgage servicing rights	Discounted cash flow	Constant prepayment rate	9%
Impaired Loans	Appraisals / Discounted cash flow	Collateral / Discount factor	24%

Estimated fair values of financial instruments

Fair value estimates are set forth below for the Corporation’s financial instruments.



		June 30, 2018				December 31, 2017
	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
		($ in Thousands)
Financial assets
Cash and due from banks	Level 1	$	396,761	$	396,761	$	483,666	$	483,666
Interest-bearing deposits in other financial institutions	Level 1	71,462		71,462		199,702		199,702
Federal funds sold and securities purchased under agreements to resell	Level 1	3,150		3,150		32,650		32,650
Investment securities held to maturity	Level 2	2,602,247		2,560,943		2,282,853		2,283,574
Investment securities available for sale	Level 1	2,609		2,609		2,628		2,628
Investment securities available for sale	Level 2	4,259,042		4,259,042		4,040,818		4,040,818
FHLB and Federal Reserve Bank stocks	Level 2	249,040		249,040		165,331		165,331
Residential loans held for sale	Level 2	143,022		143,022		85,544		85,544
Loans, net	Level 3	22,724,184		22,282,282		20,519,111		20,314,984
Bank and corporate owned life insurance	Level 2	659,592		659,592		591,057		591,057
Derivatives (trading and other assets)	Level 2	136,342		136,342		70,850		70,850
Derivatives (trading and other assets)	Level 3	3,287		3,287		1,538		1,538
Financial liabilities
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts	Level 3	$	21,088,538	$	21,088,538	$	20,436,893	$	20,436,893
Brokered CDs and other time deposits	Level 2	2,727,776		2,727,776		2,349,069		2,349,069
Short-term funding	Level 2	626,525		626,525		676,282		676,282
Long-term funding	Level 2	4,925,476		4,921,348		3,397,450		3,411,368
Standby letters of credit^(a)	Level 2	2,549		2,549		2,402		2,402
Derivatives (trading and other liabilities)	Level 2	132,639		132,639		68,835		68,835
Derivatives (trading and other liabilities)	Level 3	919		919		313		313

(a)

The commitment on standby letters of credit was $256 million and $235 million at June 30, 2018 and December 31, 2017, respectively. See Note 12 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments.