Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2012

Fair Value Assets And Liabilities Measured On A Recurring Basis [Table Text Block]

The fair value of financial assets and liabilities that are measured on a recurring basis are as follows as of December 31, 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	$	16,545	$	—		$	16,545	$	—
U.S. agency residential mortgage-backed securities	86,361		—			86,361		—
Municipal and other tax-exempt securities	90,326		—			90,326		—
Other trading securities	20,870		—			20,870		—
Total trading securities	214,102		—			214,102		—
Available for sale securities:
U.S. Treasury	1,002		1,002			—		—
Municipal and other tax-exempt	87,142		—			46,439		40,702
U.S. agency residential mortgage-backed securities	9,889,821		—			9,889,821		—
Privately issued residential mortgage-backed securities	325,163		—			325,163		—
Commercial mortgage-backed securities guaranteed by U.S. government agencies	895,075		—			895,075		—
Other debt securities	36,389		—			30,990		5,399
Perpetual preferred stock	25,072		—			25,072		—
Equity securities and mutual funds	27,557		4,165			21,231		2,161
Total available for sale securities	11,287,221		5,167			11,233,791		48,262
Fair value option securities:
U.S. agency residential mortgage-backed securities	257,040		—			257,040		—
Corporate debt securities	26,486		—			26,486		—
Other securities	770		—			770		—
Total fair value option securities	284,296		—			284,296		—
Residential mortgage loans held for sale	293,762		—			293,762		—
Mortgage servicing rights¹	100,812		—			—		100,812
Derivative contracts, net of cash margin²	338,106		11,597		³	326,509		—
Other assets – private equity funds	28,169		—			—		28,169
Liabilities:
Derivative contracts, net of cash margin²	283,589		—			283,589		—


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 7, Mortgage Banking Activities.


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


³	Represents exchange-traded 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 7, Mortgage Banking Activities.


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


³	Represents exchange-traded derivative contracts.

Fair Value Assets Measured On Recurring Basis Significant Unobservable Inputs [Table Text Block]

The following represents the changes 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			Equity securities and mutual funds		Other assets – private equity funds
Balance, December 31, 2010	$	47,093		$	6,400		$	—	$	25,436
Purchases and capital calls	7,520			—			—		4,052
Redemptions and distributions	(10,625		)	(500		)	—		(3,903		)
Gain (loss) recognized in earnings:							—
Brokerage and trading revenue	(576		)	—			—		—
Gain (loss) on other assets, net	—			—			—		5,317
Gain on available for sale securities, net	21			—			—		—
Other-than-temporary impairment losses	(1,558		)	—			—		—
Other comprehensive (loss)	478			—			—		—
Balance, December 31, 2011	42,353			5,900			—		30,902
Transfer to Level 3 from Level 2	—			—			2,161		—
Purchases and capital calls	—			—			—		3,446
Redemptions and distributions	(988		)	(500		)	—		(9,819		)
Gain (loss) recognized in earnings:
Gain on other assets, net	—			—			—		3,640
Gain on available for sale securities, net	1			—			—		—
Other-than-temporary impairment losses	(642		)	—			—		—
Other comprehensive (loss)	(22		)	(1		)	—		—
Balance, December 31, 2012	$	40,702		$	5,399		$	2,161	$	28,169

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

A summary of quantitative information about assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) as of December 31, 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

28,570

28,473

28,318

Discounted cash flows

Interest rate spread

1.00%-1.50% (1.25%)

98.83%-99.43% (99.12%)

Below investment grade

17,000

12,384

Discounted cash flows

Interest rate spread

7.21%-9.83% (7.82%)

⁴

72.79%-73.00% (72.85%)

Total municipal and other tax-exempt securities

45,570

40,857

40,702

Other debt securities

5,400

5,399

Discounted cash flows

Interest rate spread

1.65%-1.71% (1.70%)

⁵

100% (100%)

Equity securities and other mutual funds

N/A

2,161

Tangible book value per share of publicly traded financial institutions of similar size, less liquidity discount.

Peer group tangible book per share and liquidity discount

—

⁷

Other assets - private equity funds

N/A

28,169

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.


⁷	Fair value of shares of a smaller privately-held financial institution were valued using the tangible book value per share of similarly sized financial institutions within the immediate geographical market with a discount of 20% due to the liquidity of the shares.

The fair value of these securities measured at fair value using significant unobservable inputs are sensitive primarily to changes in interest rate spreads. At December 31, 2012, for tax-exempt securities rated investment grade by all nationally-recognized rating agencies, a 100 basis point increase in the spreads over average yields for comparable securities would result in an additional decrease in the fair value of $279 thousand. For taxable securities rated investment grade by all nationally-recognized rating agencies, a 100 basis point increase in the spreads over average yield for comparable securities would result in an additional decrease in the fair value of $52 thousand. For municipal and other tax-exempt securities rated below investment grade by at least one of the nationally-recognized rating agencies, a 100 basis point increase in the spread over average yields for comparable securities would result in an additional decrease in the fair value of these securities of $362 thousand.

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% (1.25%)	²
									98.79%-99.60% (99.16%)	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 Non-recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of December 31, 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	$	3,891	Appraised value, as adjusted	Broker quotes and management's knowledge of industry and collateral.	N/A
Real estate and other repossessed assets	4,421		Listing value, less cost to sell	Marketability adjustments off appraised value	56%-85% (80%)¹


¹	Marketability adjustments includes consideration of estimated costs to sell which is approximately 15% of the fair value. In addition, $345 thousand of real estate and other repossessed assets at December 31, 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 Non-recurring Fair Value Measurements based on Significant Unobservable Inputs (Level 3) as of December 31, 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	$	1,447	Appraised value, as adjusted	Broker quotes and management's knowledge of industry and collateral.	N/A
Real estate and other repossessed assets	$	13,100	Listing value, less cost to sell	Marketability adjustments off appraised value	58%-85%(76%)¹


¹	Marketability adjustments includes consideration of estimated costs to sell which is approximately 15% of the fair value. In addition, $2.4 million of real estate and other repossessed assets at December 31, 2011 are based on uncorroborated expert opinions or management's knowledge of the collateral or industry and do not have an independently appraised value.

Fair Value Assets Measured on Nonrecurring Basis [Table Text Block]

The following represents the carrying value of assets measured at fair value on a non-recurring basis and related losses recorded during the year. The carrying value represents only those assets with the balance sheet date for which the fair value was adjusted during the year:



	Carrying Value at December 31, 2012						Fair Value Adjustments for the Year Ended December 31, 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		Net losses and expenses of repossessed assets, net
Impaired loans	$	—	$	21,589	$	3,891	$	11,615	$	—
Real estate and other repossessed assets	—		39,077		4,421		—		15,954



	Carrying Value at December 31, 2011						Fair Value Adjustments for the Year Ended December 31, 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		Net losses and expenses of repossessed assets, net
Impaired loans	$	—	$	52,421	$	1,447	$	13,829	$	—
Real estate and other repossessed assets	—		57,160		13,100		—		14,077

Fair Value of Financial Instruments [Table Text Block]

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 December 31, 2012 (dollars in thousands):



	Carrying Value			Range of Contractual Yields	Average Re-pricing (in years)	Discount Rate	Estimated Fair Value
Cash and cash equivalents	$	1,286,239					$	1,286,239
Trading securities:
U.S. Government agency obligations	16,545						16,545
U.S. agency residential mortgage-backed securities	86,361						86,361
Municipal and other tax-exempt securities	90,326						90,326
Other trading securities	20,870						20,870
Total trading securities	214,102						214,102
Investment securities:
Municipal and other tax-exempt	232,700						235,940
U.S. agency residential mortgage-backed securities	82,767						85,943
Other debt securities	184,067						206,575
Total investment securities	499,534						528,458
Available for sale securities:
U.S. Treasury	1,002						1,002
Municipal and other tax-exempt	87,142						87,142
U.S. agency residential mortgage-backed securities	9,889,821						9,889,821
Privately issued residential mortgage-backed securities	325,163						325,163
Commercial mortgage-backed securities guaranteed by U.S. government agencies	895,075						895,075
Other debt securities	36,389						36,389
Perpetual preferred stock	25,072						25,072
Equity securities and mutual funds	27,557						27,557
Total available for sale securities	11,287,221						11,287,221
Fair value option securities:
U.S. agency residential mortgage-backed securities	257,040						257,040
Corporate debt securities	26,486						26,486
Other securities	770						770
Total fair value option securities	284,296						284,296
Residential mortgage loans held for sale	293,762						293,762
Loans:
Commercial	7,641,912			0.21 - 30.00	0.69	0.51 - 3.59	7,606,505
Commercial real estate	2,228,999			0.21 - 18.00	0.92	1.26 - 3.18	2,208,217
Residential mortgage	2,045,040			0.38 - 18.00	3.34	0.86 - 3.09	2,110,773
Consumer	395,505			0.38 - 21.00	0.32	1.37 - 3.60	388,748
Total loans	12,311,456						12,314,243
Allowance for loan losses	(215,507		)				—
Net loans	12,095,949						12,314,243
Mortgage servicing rights	100,812						100,812
Derivative instruments with positive fair value, net of cash margin	338,106						338,106
Other assets – private equity funds	28,169						28,169
Deposits with no stated maturity	18,211,068						18,211,068
Time deposits	2,967,992			0.01 - 9.64	2.15	0.80 - 1.15	3,037,708
Other borrowings	2,706,221			0.09 - 5.25	—	0.09 - 2.67	2,696,574
Subordinated debentures	347,633			1.00 - 5.00	3.56	2.40%	345,675
Derivative instruments with negative fair value, net of cash margin	283,589						283,589



	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

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

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-Name Statement of Financial Accounting Standard (FAS)

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

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-Number 159

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-Name Statement of Financial Accounting Standard (FAS)

-Number 157

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-Subparagraph a, c(1), c(2), c(3), d

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-Name Statement of Financial Accounting Standard (FAS)

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