Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2012

Fair Value Assets And Liabilities Measured On A Recurring Basis

The fair value of financial assets and liabilities that are measured on a recurring basis are as follows as of September 30, 2012 (in thousands):



	Total		Quoted Prices in Active Markets for Identical Instruments			Significant Other Observable Inputs		Significant Unobservable Inputs
Assets:
Trading securities:
U.S. Government agency debentures	$	3,100	$	—		$	3,100	$	—
U.S. agency residential mortgage-backed securities	119,835		—			119,835		—
Municipal and other tax-exempt securities	58,150		—			58,150		—
Other trading securities	23,157		—			23,157		—
Total trading securities	204,242		—			204,242		—
Available for sale securities:
U.S. Treasury	1,002		1,002			—		—
Municipal and other tax-exempt	87,969		—			46,690		41,279
U.S. agency residential mortgage-backed securities	10,654,821		—			10,654,821		—
Privately issued residential mortgage-backed securities	331,722		—			331,722		—
Commercial mortgage-backed securities guaranteed by U.S. government agencies	339,095		—			339,095		—
Other debt securities	36,456		—			31,056		5,400
Perpetual preferred stock	25,288		—			25,288		—
Equity securities and mutual funds	30,081		7,837			22,244		—
Total available for sale securities	11,506,434		8,839			11,450,916		46,679
Fair value option securities:
U.S. agency residential mortgage-backed securities	305,445		—			305,445		—
Corporate debt securities	26,442		—			26,442		—
Total fair value option securities	331,887		—			331,887		—
Residential mortgage loans held for sale	325,102		—			325,102		—
Mortgage servicing rights¹	89,653		—			—		89,653
Derivative contracts, net of cash margin²	472,783		8,301		³	464,482		—
Other assets – private equity funds	28,792		—			—		28,792
Liabilities:
Derivative contracts, net of cash margin²	435,497		—			435,497		—


¹	A reconciliation of the beginning and ending fair value of mortgage servicing rights and disclosures of significant assumptions used to determine fair value are presented in Note 6, Mortgage Banking Activities.


²	See Note 3 for detail of fair value of derivative contracts by contract type.


³	Represents exchange-traded energy derivative contracts.

The fair value of financial assets and liabilities that are measured on a recurring basis are as follows as of December 31, 2011 (in thousands):



	Total		Quoted Prices in Active Markets for Identical Instruments			Significant Other Observable Inputs		Significant Unobservable Inputs
Assets:
Trading securities:
U.S. Government agency debentures	$	22,203	$	—		$	22,203	$	—
U.S. agency residential mortgage-backed securities	12,379		—			12,379		—
Municipal and other tax-exempt securities	39,345		—			39,345		—
Other trading securities	2,873		—			2,696		177
Total trading securities	76,800		—			76,623		177
Available for sale securities:
U.S. Treasury	1,006		1,006			—		—
Municipal and other tax-exempt	68,837		—			26,484		42,353
U.S. agency residential mortgage-backed securities	9,588,177		—			9,588,177		—
Privately issued residential mortgage-backed securities	419,166		—			419,166		—
Other debt securities	36,495		—			30,595		5,900
Perpetual preferred stock	18,446		—			18,446		—
Equity securities and mutual funds	47,238		23,596			23,642		—
Total available for sale securities	10,179,365		24,602			10,106,510		48,253
Fair value option securities:
U.S. agency residential mortgage-backed securities	626,109		—			626,109		—
Corporate debt securities	25,117		—			25,117		—
Total fair value option securities	651,226		—			651,226		—
Residential mortgage loans held for sale	188,125		—			188,125		—
Mortgage servicing rights¹	86,783		—			—		86,783
Derivative contracts, net of cash margin ²	293,859		457		³	293,402		—
Other assets – private equity funds	30,902		—			—		30,902
Liabilities:
Derivative contracts, net of cash margin ²	236,522		—			236,522		—


¹	A reconciliation of the beginning and ending fair value of mortgage servicing rights and disclosures of significant assumptions used to determine fair value are presented in Note 6, Mortgage Banking Activities.


²	See Note 3 for detail of fair value of derivative contracts by contract type.


³	Represents exchange-traded agricultural derivative contracts.

The fair value of financial assets and liabilities that are measured on a recurring basis are as follows as of September 30, 2011 (in thousands):



	Total		Quoted Prices in Active Markets for Identical Instruments			Significant Other Observable Inputs		Significant Unobservable Inputs
Assets:
Trading securities:
U.S. Government agency debentures	$	1,839	$	—		$	1,839	$	—
U.S. agency residential mortgage-backed securities	49,501		—			49,501		—
Municipal and other tax-exempt securities	57,431		—			57,431		—
Other trading securities	888		888			—		—
Total trading securities	109,659		888			108,771		—
Available for sale securities:
U.S. Treasury	1,006		1,006			—		—
Municipal and other tax-exempt	70,195		—			26,483		43,712
U.S. agency residential mortgage-backed securities	9,016,877		—			9,016,877		—
Privately issued residential mortgage-backed securities	457,332		—			457,332		—
Other debt securities	5,900		—			—		5,900
Perpetual preferred stock	19,080		—			19,080		—
Equity securities and mutual funds	49,241		29,827			19,414		—
Total available for sale securities	9,619,631		30,833			9,539,186		49,612
Fair value option securities:
U.S. agency residential mortgage-backed securities	672,191		—			672,191		—
Corporate debt securities	—		—			—		—
Total fair value option securities	672,191		—			672,191		—
Residential mortgage loans held for sale	256,397		—			256,397		—
Mortgage servicing rights¹	87,948		—			—		87,948
Derivative contracts, net of cash margin ²	370,616		34,770		³	335,846		—
Other assets – private equity funds	29,113		—			—		29,113
Liabilities:
Derivative contracts, net of cash margin ²	341,822		—			341,822		—


¹	A reconciliation of the beginning and ending fair value of mortgage servicing rights and disclosures of significant assumptions used to determine fair value are presented in Note 6, Mortgage Banking Activities.


²	See Note 3 for detail of fair value of derivative contracts by contract type.

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

A summary of quantitative information about Recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of December 31, 2011 follows (in thousands):



Quantitative Information about Level 3 Recurring Fair Value Measurements


	Par Value		Amortized Cost⁶		Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)

Available for sale securities
Municipal and other tax-exempt securities
Investment grade	$	29,200	$	29,466	$	29,327	Discounted cash flows¹	Interest rate spread	1.00%-1.50% (1.33%)	²
									98.79%-99.60% (99.24%)	³
Below investment grade	17,000		13,026		13,026		Discounted cash flows¹	Interest rate spread	6.25%-9.58% (6.93%)	⁴
									76.45%-76.99% (76.62%)	³
Total municipal and other tax-exempt securities	46,200		42,492		42,353
Other debt securities	5,900		5,900		5,900		Discounted cash flows¹	Interest rate spread	1.60%-1.80% (1.76%)	⁵
									100% (100%)	³

Other assets - private equity funds	N/A		N/A		30,902		Net asset value reported by underlying fund	Net asset value reported by underlying fund	N/A


¹	Discounted cash flows developed using discount rates primarily based on reference to interest rate spreads for comparable securities of similar duration and credit rating as determined by the nationally-recognized rating agencies, adjusted for lack of trading volume


²	Interest rate yields used to value investment grade tax-exempt securities represent a spread of 75 to 80 basis points over average yields for comparable tax-exempt securities.


³	Represents fair value as a percentage of par value


⁴	Interest rate yields determined using a spread of 600 basis points over comparable municipal securities of varying durations.


⁵	Interest rate yields used to value investment grade taxable securities based on comparable short-term taxable securities which are generally yielding less than 1%.


⁶	Amortized cost reduced by other-than-temporary impairments recorded in earnings. See Note 2 for additional discussion.

A summary of quantitative information about assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of September 30, 2012 follows (in thousands):

Quantitative Information about Level 3 Recurring Fair Value Measurements

Par

Value

Amortized

Cost⁶

Fair

Value

Valuation Technique(s)

Unobservable Input

Range

(Weighted Average)

Available for sale securities

Municipal and other tax-exempt securities

Investment grade

29,100

28,999

28,848

Discounted cash flows

Interest rate spread

1.00%-1.50% (1.25%)

98.85%-99.47% (99.13%)

Below investment grade

17,000

13,396

12,431

Discounted cash flows

Interest rate spread

7.20%-9.88% (7.77%)

⁴

73.06%-73.30% (73.13%)

Total municipal and other tax-exempt securities

46,100

42,395

41,279

Other debt securities

5,400

Discounted cash flows

Interest rate spread

1.70%-1.73% (1.71%)

⁵

100% (100%)

Other assets - private equity funds

N/A

28,792

Net asset value reported by underlying fund

N/A


¹	Discounted cash flows developed using discount rates primarily based on reference to interest rate spreads for comparable securities of similar duration and credit rating as determined by the nationally-recognized rating agencies, adjusted for lack of trading volume


²	Interest rate yields used to value investment grade tax-exempt securities represent a spread of 75 to 80 basis points over average yields for comparable tax-exempt securities.


³	Represents fair value as a percentage of par value


⁴	Interest rate yields determined using a spread of 700 basis points over comparable municipal securities of varying durations.


⁵	Interest rate yields used to value investment grade taxable securities based on comparable short-term taxable securities which are generally yielding less than 1%.


⁶	Amortized cost reduced by other-than-temporary impairments recorded in earnings. See Note 2 for additional discussion.

A summary of quantitative information about Non-recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of September 30, 2011 follows (in thousands):



Quantitative Information about Level 3 Non-recurring Fair Value Measurements
	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)

Impaired loans	$	2,086	Appraised value, as adjusted	Adjustments to appraised value	0%-41%(17%)

A summary of quantitative information about Non-recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of September 30, 2012 follows (in thousands):



Quantitative Information about Level 3 Non-recurring Fair Value Measurements
	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)

Impaired loans	$	1,655	Appraised value, as adjusted	Broker quotes and management's knowledge of industry and collateral.	N/A
Real estate and other repossessed assets	6,617		Listing value, less cost to sell	Marketability adjustments off appraised value	68%-100% (85%)¹


¹	$796 thousand of real estate and other repossessed assets at September 30, 2012 are based on uncorroborated expert opinions or management's knowledge of the collateral or industry and do not have an independently appraised value.

A summary of quantitative information about Recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of December 31, 2011 follows (in thousands):



Quantitative Information about Level 3 Recurring Fair Value Measurements


	Par Value		Amortized Cost⁶		Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)

Available for sale securities
Municipal and other tax-exempt securities
Investment grade	$	29,200	$	29,466	$	29,327	Discounted cash flows¹	Interest rate spread	1.00%-1.50% (1.33%)	²
									98.79%-99.60% (99.24%)	³
Below investment grade	17,000		13,026		13,026		Discounted cash flows¹	Interest rate spread	6.25%-9.58% (6.93%)	⁴
									76.45%-76.99% (76.62%)	³
Total municipal and other tax-exempt securities	46,200		42,492		42,353
Other debt securities	5,900		5,900		5,900		Discounted cash flows¹	Interest rate spread	1.60%-1.80% (1.76%)	⁵
									100% (100%)	³

Other assets - private equity funds	N/A		N/A		30,902		Net asset value reported by underlying fund	Net asset value reported by underlying fund	N/A


¹	Discounted cash flows developed using discount rates primarily based on reference to interest rate spreads for comparable securities of similar duration and credit rating as determined by the nationally-recognized rating agencies, adjusted for lack of trading volume


²	Interest rate yields used to value investment grade tax-exempt securities represent a spread of 75 to 80 basis points over average yields for comparable tax-exempt securities.


³	Represents fair value as a percentage of par value


⁴	Interest rate yields determined using a spread of 600 basis points over comparable municipal securities of varying durations.


⁵	Interest rate yields used to value investment grade taxable securities based on comparable short-term taxable securities which are generally yielding less than 1%.


⁶	Amortized cost reduced by other-than-temporary impairments recorded in earnings. See Note 2 for additional discussion.

A summary of quantitative information about Recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of September 30, 2011 follows (in thousands):



Quantitative Information about Level 3 Recurring Fair Value Measurements


	Par Value		Amortized Cost⁶		Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)

Available for sale securities
Municipal and other tax-exempt securities
Investment grade	$	29,750	$	29,643	$	29,532	Discounted cash flows¹	Interest rate spread	1.00%-1.30% (1.21%)	²
									98.99%-98.48% (99.35%)	³
Below investment grade	17,000		14,063		14,180		Discounted cash flows¹	Interest rate spread	6.25%-9.55% (6.66%)	⁴
									83.35%-83.57% (83.41%)	³
Total municipal and other tax-exempt securities	46,750		43,706		43,712
Other debt securities	5,900		5,900		5,900		Discounted cash flows¹	Interest rate spread	1.60%-1.73% (1.70%)	⁵
									100% (100%)	³

Other assets - private equity funds	N/A		N/A		33,415		Net asset value reported by underlying fund	Net asset value reported by underlying fund	N/A


¹	Discounted cash flows developed using discount rates primarily based on reference to interest rate spreads for comparable securities of similar duration and credit rating as determined by the nationally-recognized rating agencies, adjusted for lack of trading volume


²	Interest rate yields used to value investment grade tax-exempt securities represent a spread of 75 to 80 basis points over average yields for comparable tax-exempt securities.


³	Represents fair value as a percentage of par value


⁴	Interest rate yields determined using a spread of 600 basis points over comparable municipal securities of varying durations.


⁵	Interest rate yields used to value investment grade taxable securities based on comparable short-term taxable securities which are generally yielding less than 1%.


⁶	Amortized cost reduced by other-than-temporary impairments recorded in earnings. See Note 2 for additional discussion.

Fair Value Assets Measured On Recurring Basis Significant Unobservable Inputs

The following represents the changes for the three months ended September 30, 2012 related to assets measured at fair value on a recurring basis using significant unobservable inputs (in thousands):



	Available for Sale Securities
	Municipal and other tax-exempt			Other debt securities		Other assets – private equity funds
Balance, June 30, 2012	$	41,662		$	5,388	$	31,492
Purchases and capital calls	—			—		476
Redemptions and distributions	1			—		(3,906		)
Gain (loss) recognized in earnings:
Gain on other assets, net	—			—		730
Gain on available for sale securities, net	—			—		—
Other-than-temporary impairment losses	—			—		—
Other comprehensive gain (loss)	(384		)	12		—
Balance, September 30, 2012	$	41,279		$	5,400	$	28,792

The following represents the changes for the nine months ended September 30, 2012 related to assets measured at fair value on a recurring basis using significant unobservable inputs (in thousands):



	Available for Sale Securities
	Municipal and other tax-exempt			Other debt securities			Other assets – private equity funds
Balance, December 31, 2011	$	42,353		$	5,900		$	30,902
Purchases and capital calls	—			—			2,385
Redemptions and distributions	(462		)	(500		)	(7,072		)
Gain (loss) recognized in earnings:
Gain on other assets, net	—			—			2,577
Gain on available for sale securities, net	1			—			—
Other-than-temporary impairment losses	—			—			—
Other comprehensive (loss)	(613		)	—			—
Balance, September 30, 2012	$	41,279		$	5,400		$	28,792

The following represents the changes for the three months ended September 30, 2012 related to assets measured at fair value on a recurring basis using significant unobservable inputs (in thousands):



	Available for Sale Securities
	Municipal and other tax-exempt			Other debt securities		Other assets – private equity funds
Balance, June 30, 2012	$	41,662		$	5,388	$	31,492
Purchases and capital calls	—			—		476
Redemptions and distributions	1			—		(3,906		)
Gain (loss) recognized in earnings:
Gain on other assets, net	—			—		730
Gain on available for sale securities, net	—			—		—
Other-than-temporary impairment losses	—			—		—
Other comprehensive gain (loss)	(384		)	12		—
Balance, September 30, 2012	$	41,279		$	5,400	$	28,792

The following represents the changes for the nine months ended September 30, 2012 related to assets measured at fair value on a recurring basis using significant unobservable inputs (in thousands):



	Available for Sale Securities
	Municipal and other tax-exempt			Other debt securities			Other assets – private equity funds
Balance, December 31, 2011	$	42,353		$	5,900		$	30,902
Purchases and capital calls	—			—			2,385
Redemptions and distributions	(462		)	(500		)	(7,072		)
Gain (loss) recognized in earnings:
Gain on other assets, net	—			—			2,577
Gain on available for sale securities, net	1			—			—
Other-than-temporary impairment losses	—			—			—
Other comprehensive (loss)	(613		)	—			—
Balance, September 30, 2012	$	41,279		$	5,400		$	28,792

A summary of quantitative information about Recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of December 31, 2011 follows (in thousands):



Quantitative Information about Level 3 Recurring Fair Value Measurements


	Par Value		Amortized Cost⁶		Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)

Available for sale securities
Municipal and other tax-exempt securities
Investment grade	$	29,200	$	29,466	$	29,327	Discounted cash flows¹	Interest rate spread	1.00%-1.50% (1.33%)	²
									98.79%-99.60% (99.24%)	³
Below investment grade	17,000		13,026		13,026		Discounted cash flows¹	Interest rate spread	6.25%-9.58% (6.93%)	⁴
									76.45%-76.99% (76.62%)	³
Total municipal and other tax-exempt securities	46,200		42,492		42,353
Other debt securities	5,900		5,900		5,900		Discounted cash flows¹	Interest rate spread	1.60%-1.80% (1.76%)	⁵
									100% (100%)	³

Other assets - private equity funds	N/A		N/A		30,902		Net asset value reported by underlying fund	Net asset value reported by underlying fund	N/A


¹	Discounted cash flows developed using discount rates primarily based on reference to interest rate spreads for comparable securities of similar duration and credit rating as determined by the nationally-recognized rating agencies, adjusted for lack of trading volume


²	Interest rate yields used to value investment grade tax-exempt securities represent a spread of 75 to 80 basis points over average yields for comparable tax-exempt securities.


³	Represents fair value as a percentage of par value


⁴	Interest rate yields determined using a spread of 600 basis points over comparable municipal securities of varying durations.


⁵	Interest rate yields used to value investment grade taxable securities based on comparable short-term taxable securities which are generally yielding less than 1%.


⁶	Amortized cost reduced by other-than-temporary impairments recorded in earnings. See Note 2 for additional discussion.

A summary of quantitative information about Recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of September 30, 2011 follows (in thousands):



Quantitative Information about Level 3 Recurring Fair Value Measurements


	Par Value		Amortized Cost⁶		Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)

Available for sale securities
Municipal and other tax-exempt securities
Investment grade	$	29,750	$	29,643	$	29,532	Discounted cash flows¹	Interest rate spread	1.00%-1.30% (1.21%)	²
									98.99%-98.48% (99.35%)	³
Below investment grade	17,000		14,063		14,180		Discounted cash flows¹	Interest rate spread	6.25%-9.55% (6.66%)	⁴
									83.35%-83.57% (83.41%)	³
Total municipal and other tax-exempt securities	46,750		43,706		43,712
Other debt securities	5,900		5,900		5,900		Discounted cash flows¹	Interest rate spread	1.60%-1.73% (1.70%)	⁵
									100% (100%)	³

Other assets - private equity funds	N/A		N/A		33,415		Net asset value reported by underlying fund	Net asset value reported by underlying fund	N/A


¹	Discounted cash flows developed using discount rates primarily based on reference to interest rate spreads for comparable securities of similar duration and credit rating as determined by the nationally-recognized rating agencies, adjusted for lack of trading volume


²	Interest rate yields used to value investment grade tax-exempt securities represent a spread of 75 to 80 basis points over average yields for comparable tax-exempt securities.


³	Represents fair value as a percentage of par value


⁴	Interest rate yields determined using a spread of 600 basis points over comparable municipal securities of varying durations.


⁵	Interest rate yields used to value investment grade taxable securities based on comparable short-term taxable securities which are generally yielding less than 1%.


⁶	Amortized cost reduced by other-than-temporary impairments recorded in earnings. See Note 2 for additional discussion.

The following represents the changes for the three months ended September 30, 2011 related to assets measured at fair value on a recurring basis using significant unobservable inputs (in thousands):



	Available for Sale Securities
	Municipal and other tax-exempt			Other debt securities		Other assets – private equity funds
Balance, June 30, 2011	$	43,658		$	5,893	$	28,313
Purchases, and capital calls	—			—		813
Redemptions and distributions	(100		)	—		(714		)
Gain (loss) recognized in earnings
Brokerage and trading revenue	—			—		—
Gain (loss) on other assets, net	—			—		701
Gain on available for sale securities, net	1			—		—
Other-than-temporary impairment losses	—			—		—
Other comprehensive (loss)	153			7		—
Balance, September 30, 2011	$	43,712		$	5,900	$	29,113

The following represents the changes for the nine months ended September 30, 2011 related to assets measured at fair value on a recurring basis using significant unobservable inputs (in thousands):



	Available for Sale Securities
	Municipal and other tax-exempt			Other debt securities			Other assets – private equity funds
Balance, December 31, 2010	$	47,093		$	6,400		$	25,436
Purchases and capital calls	7,520			—			2,465
Redemptions and distributions	(10,075		)	(500		)	(2,899		)
Gain (loss) recognized in earnings
Brokerage and trading revenue	(576		)	—			—
Gain (loss) on other assets, net	—			—			4,111
Gain on available for sale securities, net	19			—			—
Other-than-temporary impairment losses	(521		)	—			—
Other comprehensive (loss)	252			—			—
Balance, September 30, 2011	$	43,712		$	5,900		$	29,113

The following represents the changes for the three months ended September 30, 2011 related to assets measured at fair value on a recurring basis using significant unobservable inputs (in thousands):



	Available for Sale Securities
	Municipal and other tax-exempt			Other debt securities		Other assets – private equity funds
Balance, June 30, 2011	$	43,658		$	5,893	$	28,313
Purchases, and capital calls	—			—		813
Redemptions and distributions	(100		)	—		(714		)
Gain (loss) recognized in earnings
Brokerage and trading revenue	—			—		—
Gain (loss) on other assets, net	—			—		701
Gain on available for sale securities, net	1			—		—
Other-than-temporary impairment losses	—			—		—
Other comprehensive (loss)	153			7		—
Balance, September 30, 2011	$	43,712		$	5,900	$	29,113

The following represents the changes for the nine months ended September 30, 2011 related to assets measured at fair value on a recurring basis using significant unobservable inputs (in thousands):



	Available for Sale Securities
	Municipal and other tax-exempt			Other debt securities			Other assets – private equity funds
Balance, December 31, 2010	$	47,093		$	6,400		$	25,436
Purchases and capital calls	7,520			—			2,465
Redemptions and distributions	(10,075		)	(500		)	(2,899		)
Gain (loss) recognized in earnings
Brokerage and trading revenue	(576		)	—			—
Gain (loss) on other assets, net	—			—			4,111
Gain on available for sale securities, net	19			—			—
Other-than-temporary impairment losses	(521		)	—			—
Other comprehensive (loss)	252			—			—
Balance, September 30, 2011	$	43,712		$	5,900		$	29,113

Fair Value Assets Measured on Nonrecurring Basis

The following represents the carrying value of assets measured at fair value on a non-recurring basis (and related losses) during the period. The carrying value represents only those assets with a balance at September 30, 2011 for which the fair value was adjusted during the nine months ended September 30, 2011:



	Carrying Value at September 30, 2011						Fair Value Adjustments for the Three Months Ended September 30, 2011 Recognized in:						Fair Value Adjustments for the Nine Months Ended September 30, 2011 Recognized in:
	Quoted Prices in Active Markets for Identical Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs		Gross charge-offs against allowance for loan losses		Gross charge-offs against accrual for recourse loans		Net losses and expenses of repossessed assets, net		Gross charge-offs against allowance for loan losses		Gross charge-offs against accrual for recourse loans		Net losses and expenses of repossessed assets, net
Impaired loans	$	—	$	13,605	$	2,086	$	3,734	$	305	$	—	$	4,090	$	305	$	—
Real estate and other repossessed assets	—		24,968		—		—		—		4,052		—		—		11,683

The following represents the carrying value of assets measured at fair value on a non-recurring basis (and related losses) during the period. The carrying value represents only those assets with a balance at June 30, 2012 for which the fair value was adjusted during the nine months ended September 30, 2012:



	Carrying Value at September 30, 2012						Fair Value Adjustments for the three months ended September 30, 2012 Recognized in:						Fair Value Adjustments for the nine months ended September 30, 2012 Recognized in:
	Quoted Prices in Active Markets for Identical Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs		Gross charge-offs against allowance for loan losses		Gross charge-offs against accrual for recourse loans		Net losses and expenses of repossessed assets, net		Gross charge-offs against allowance for loan losses		Gross charge-offs against accrual for recourse loans		Net losses and expenses of repossessed assets, net
Impaired loans	$	—	$	25,521	$	1,655	$	3,915	$	199	$	—	$	10,797	$	394	$	—
Goodwill	—		—
Real estate and other repossessed assets	—		38,386		6,617		—		—		4,398		—		—		11,068

The fair value of collateral-dependent impaired loans and real estate and other repossessed assets and the related fair value adjustments are generally based on unadjusted third-party appraisals. Our appraisal review policies require appraised values to be supported by observed inputs derived principally from or corroborated by observable market data. Appraisals that are not based on observable inputs or that require significant adjustments or fair value measurements that are not based on third-party appraisals are considered to be based on significant unobservable inputs. Non-recurring fair value measurements of collateral-dependent impaired loans and real estate and other repossessed assets based on significant unobservable inputs are generally due to estimate of current fair values between appraisal dates. Significant unobservable inputs include listing prices for the same or comparable assets, uncorroborated expert opinions or management's knowledge of the collateral or industry. These inputs are developed by asset management and workout professional and approved by senior Credit Administration executives.

Fair Value of Financial Instruments

e following represents the carrying value of assets measured at fair value on a non-recurring basis (and related losses) during the period. The carrying value represents only those assets with a balance at June 30, 2012 for which the fair value was adjusted during the nine months ended September 30, 2012:



	Carrying Value at September 30, 2012						Fair Value Adjustments for the three months ended September 30, 2012 Recognized in:						Fair Value Adjustments for the nine months ended September 30, 2012 Recognized in:
	Quoted Prices in Active Markets for Identical Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs		Gross charge-offs against allowance for loan losses		Gross charge-offs against accrual for recourse loans		Net losses and expenses of repossessed assets, net		Gross charge-offs against allowance for loan losses		Gross charge-offs against accrual for recourse loans		Net losses and expenses of repossessed assets, net
Impaired loans	$	—	$	25,521	$	1,655	$	3,915	$	199	$	—	$	10,797	$	394	$	—
Goodwill	—		—
Real estate and other repossessed assets	—		38,386		6,617		—		—		4,398		—		—		11,068

A summary of quantitative information about Non-recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of September 30, 2012 follows (in thousands):



Quantitative Information about Level 3 Non-recurring Fair Value Measurements
	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)

Impaired loans	$	1,655	Appraised value, as adjusted	Broker quotes and management's knowledge of industry and collateral.	N/A
Real estate and other repossessed assets	6,617		Listing value, less cost to sell	Marketability adjustments off appraised value	68%-100% (85%)¹


¹	$796 thousand of real estate and other repossessed assets at September 30, 2012 are based on uncorroborated expert opinions or management's knowledge of the collateral or industry and do not have an independently appraised value.



	Carrying Value at September 30, 2011						Fair Value Adjustments for the Three Months Ended September 30, 2011 Recognized in:						Fair Value Adjustments for the Nine Months Ended September 30, 2011 Recognized in:
	Quoted Prices in Active Markets for Identical Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs		Gross charge-offs against allowance for loan losses		Gross charge-offs against accrual for recourse loans		Net losses and expenses of repossessed assets, net		Gross charge-offs against allowance for loan losses		Gross charge-offs against accrual for recourse loans		Net losses and expenses of repossessed assets, net
Impaired loans	$	—	$	13,605	$	2,086	$	3,734	$	305	$	—	$	4,090	$	305	$	—
Real estate and other repossessed assets	—		24,968		—		—		—		4,052		—		—		11,683

A summary of quantitative information about Non-recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of September 30, 2011 follows (in thousands):



Quantitative Information about Level 3 Non-recurring Fair Value Measurements
	Fair Value		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)

Impaired loans	$	2,086	Appraised value, as adjusted	Adjustments to appraised value	0%-41%(17%)

Fair Value of Financial Instruments

The following table presents the carrying values and estimated fair values of all financial instruments, including those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis as of September 30, 2012 (dollars in thousands):



	Carrying Value			Range of Contractual Yields	Average Re-pricing (in years)	Discount Rate		Estimated Fair Value
Cash and cash equivalents	$	615,494						$	615,494
Trading securities:
Obligations of the U.S. government	3,100							3,100
U.S. agency residential mortgage-backed securities	119,835							119,835
Municipal and other tax-exempt securities	58,150							58,150
Other trading securities	23,157							23,157
Total trading securities	204,242							204,242
Investment securities:
Municipal and other tax-exempt	155,144							159,464
U.S. agency residential mortgage-backed securities	91,911							95,128
Other debt securities	185,059							205,766
Total investment securities	432,114							460,358
Available for sale securities:
U.S. Treasury	1,002							1,002
Municipal and other tax-exempt	87,969							87,969
U.S. agency residential mortgage-backed securities	10,654,821							10,654,821
Privately issued residential mortgage-backed securities	331,722							331,722
Commercial mortgage-backed securities guaranteed by U.S. government agencies	339,095							339,095
Other debt securities	36,456							36,456
Perpetual preferred stock	25,288							25,288
Equity securities and mutual funds	30,081							30,081
Total available for sale securities	11,506,434							11,506,434
Fair value option securities:
U.S. agency residential mortgage-backed securities	305,445							305,445
Corporate debt securities	26,442							26,442
Total fair value option securities	331,887							331,887
Residential mortgage loans held for sale	325,102							325,102
Loans:
Commercial	7,273,217			0.25 - 30.00	0.64	0.58 - 3.50		7,232,761
Commercial real estate	2,165,526			0.38 - 18.00	0.93	1.30 - 3.17		2,142,239
Residential mortgage	2,018,980			0.38 - 18.00	3.31	0.99 - 3.17		2,084,251
Consumer	374,644			0.38 - 21.00	0.32	1.43 - 3.69		368,546
Total loans	11,832,367							11,827,797
Allowance for loan losses	(233,756		)					—
Net loans	11,598,611							11,827,797
Mortgage servicing rights	89,653							89,653
Derivative instruments with positive fair value, net of cash margin	472,783							472,783
Other assets – private equity funds	28,791							28,791
Deposits with no stated maturity	16,120,541							16,120,541
Time deposits	3,022,326			0.01 - 9.64	2.14	0.85 - 1.15		3,099,183
Other borrowings	3,429,575			0.09 - 5.25	—	0.09 - 2.67		3,420,135
Subordinated debentures	347,592			1.12 - 5.00	3.79	2.26	%	345,852
Derivative instruments with negative fair value, net of cash margin	435,497							435,497



	Carrying Value			Range of Contractual Yields	Average Re-pricing (in years)	Discount Rate		Estimated Fair Value
Cash and cash equivalents	$	986,365						$	986,365
Trading securities:
Obligations of the U.S. government	22,203							22,203
U.S. agency residential mortgage-backed securities	12,379							12,379
Municipal and other tax-exempt securities	39,345							39,345
Other trading securities	2,873							2,873
Total trading securities	76,800							76,800
Investment securities:
Municipal and other tax-exempt	128,697							133,670
U.S. agency residential mortgage-backed securities	121,704							120,536
Other debt securities	188,835							208,451
Total investment securities	439,236							462,657
Available for sale securities:
U.S. Treasury	1,006							1,006
Municipal and other tax-exempt	68,837							68,837
U.S. agency residential mortgage-backed securities	9,588,177							9,588,177
Privately issued residential mortgage-backed securities	419,166							419,166
Other debt securities	36,495							36,495
Perpetual preferred stock	18,446							18,446
Equity securities and mutual funds	47,238							47,238
Total available for sale securities	10,179,365							10,179,365
Fair value option securities:
U.S. agency residential mortgage-backed securities	626,109							626,109
Corporate debt securities	25,117							25,117
Total fair value option securities	651,226							651,226
Residential mortgage loans held for sale	188,125							188,125
Loans:
Commercial	6,571,454			0.25 - 30.00%	0.57	0.63 - 3.85%		6,517,795
Commercial real estate	2,279,909			0.38 - 18.00%	1.26	0.28 - 3.51%		2,267,375
Residential mortgage	1,970,461			0.38 - 18.00%	3.26	1.14 - 3.70%		2,034,898
Consumer	447,919			0.38 - 21.00%	0.42	1.88 - 3.88%		436,490
Total loans	11,269,743							11,256,558
Allowance for loan losses	(253,481		)					—
Net loans	11,016,262							11,256,558
Mortgage servicing rights	86,783							86,783
Derivative instruments with positive fair value, net of cash margin	293,859							293,859
Other assets – private equity funds	30,902							30,902
Deposits with no stated maturity	15,380,598							15,380,598
Time deposits	3,381,982			0.01 - 9.64%	2.07	1.02 - 1.43%		3,441,610
Other borrowings	2,370,867			0.25 - 6.58%	—	0.04 - 2.76%		2,369,224
Subordinated debentures	398,881			5.19 - 5.82%	1.44	3.29	%	411,243
Derivative instruments with negative fair value, net of cash margin	236,522							236,522



	Carrying Value			Range of Contractual Yields	Average Re-pricing (in years)	Discount Rate		Estimated Fair Value
Cash and cash equivalents	$	972,881						$	972,881
Trading securities:
Obligations of the U.S. government	1,839							1,839
U.S. agency residential mortgage-backed securities	49,501							49,501
Municipal and other tax-exempt securities	57,431							57,431
Other trading securities	888							888
Total trading securities	109,659							109,659
Investment securities:
Municipal and other tax-exempt	133,394							138,461
U.S. agency residential mortgage-backed securities	130,668							130,614
Other debt securities	188,590							214,159
Total investment securities	452,652							483,234
Available for sale securities:
U.S. Treasury	1,006							1,006
Municipal and other tax-exempt	70,195							70,195
U.S. agency residential mortgage-backed securities	9,016,877							9,016,877
Privately issued residential mortgage-backed securities	457,332							457,332
Other debt securities	5,900							5,900
Perpetual preferred stock	19,080							19,080
Equity securities and mutual funds	49,241							49,241
Total available for sale securities	9,619,631							9,619,631
Fair value option securities:
U.S. agency residential mortgage-backed securities	672,191							672,191
Corporate debt securities	—							—
Total fair value option securities	672,191							672,191
Residential mortgage loans held for sale	256,397							256,397
Loans:
Commercial	6,475,689			0.25 - 30.00%	0.56	0.64 - 3.81%		6,406,679
Commercial real estate	2,259,902			0.38 - 18.00%	1.23	0.28 - 3.39%		2,227,367
Residential mortgage	1,911,896			0.38 - 18.00%	3.24	0.88 - 3.78%		1,984,949
Consumer	477,082			0.38 - 21.00%	0.48	1.90 - 3.68%		477,058
Total loans	11,124,569							11,096,053
Allowance for loan losses	(271,456		)					—
Net loans	10,853,113							11,096,053
Mortgage servicing rights	87,948							87,948
Derivative instruments with positive fair value, net of cash margin	370,616							370,616
Other assets – private equity funds	29,113							29,113
Deposits with no stated maturity	14,884,552							14,884,552
Time deposits	3,554,470			0.01 - 9.64%	2.02	0.87 - 1.28%		3,620,327
Other borrowings	2,605,737			0.25 - 6.58%	—	0.06 - 2.70%		2,605,739
Subordinated debentures	398,834			5.19 - 5.82%	1.67	3.24	%	413,701
Derivative instruments with negative fair value, net of cash margin	341,822							341,822

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

+ References+ Details

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 14

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

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-Subparagraph c(2), d, e, f

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

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-Subparagraph b-d

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

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Reference 11: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

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+ Details