Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2011

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 June 30, 2011 (dollars in thousands):

				Range of			Average					Estimated
	Carrying			Contractual			Re-pricing		Discount			Fair
	Value			Yields			(in years)		Rate			Value
Cash and cash equivalents	$	1,110,761										$	1,110,761
Trading securities		99,846											99,846
Investment securities:
Municipal and other tax-exempt		160,870											165,449
Other debt securities		188,713											203,798
Total investment securities		349,583											369,247

Available for sale securities:
U.S. Treasury		1,003											1,003
Municipal and other tax-exempt		70,210											70,210
U.S. agency residential mortgage-backed securities		8,893,789											8,893,789
Private issue residential mortgage-backed securities		513,222											513,222
Other debt securities		5,893											5,893
Perpetual preferred stock		22,694											22,694
Equity securities and mutual funds		60,197											60,197
Total available for sale securities		9,567,008											9,567,008

Mortgage trading securities		553,231											553,231
Residential mortgage loans held for sale		169,609											169,609

Loans:
Commercial		6,178,596			0.25 – 18.00	%		0.60		0.72 – 4.50	%		6,085,941
Commercial real estate		2,183,715			0.38 – 18.00	%		1.18		0.28 – 3.66	%		2,134,950
Residential mortgage		1,867,997			0.38 – 18.00	%		3.32		0.74 – 4.31	%		1,915,710
Consumer		507,236			0.38 – 21.00	%		0.53		1.96 – 3.74	%		507,831
Total loans		10,737,544											10,644,432
Allowance for loan losses		(286,611	)										–
Net loans		10,450,933											10,644,432

Mortgage servicing rights		109,192											109,192
Derivative instruments with positive fair value, net of cash margin		229,887											229,887
Other assets – private equity funds		28,313											28,313
Deposits with no stated maturity		13,951,177											13,951,177
Time deposits		3,634,700			0.01 – 9.64	%		1.91		0.76 – 1.45	%		3,655,527
Other borrowings		2,962,759			0.07 – 6.58	%		0.00		0.07 – 2.65	%		2,962,773
Subordinated debentures		398,788			5.19 – 5.82	%		1.87		3.50	%		412,242
Derivative instruments with negative fair value, net of cash margin		173,917											173,917

				Range of			Average					Estimated
	Carrying			Contractual			Re-pricing		Discount			Fair
	Value			Yields			(in years)		Rate			Value
Cash and cash equivalents	$	1,269,404										$	1,269,404
Trading securities		55,467											55,467

Investment securities:
Municipal and other tax-exempt		184,898											188,577
Other debt securities		154,655											157,528
Total investment securities		339,553											346,105

Available for sale securities:
Municipal and other tax-exempt		72,942											72,942
U.S. agency residential mortgage-backed securities		8,446,908											8,446,908
Privately issued residential mortgage-backed securities		644,210											644,210
Other debt securities		6,401											6,401
Perpetual preferred stock		22,114											22,114
Equity securities and mutual funds		43,046											43,046
Total available for sale securities		9,235,621											9,235,621

Mortgage trading securities		428,021											428,021
Residential mortgage loans held for sale		263,413			–			–		–			263,413

Loans:
Commercial		5,933,996			0.25 –18.00	%		0.57		0.72 – 4.67	%		5,849,443
Commercial real estate		2,277,350			0.38 –18.00	%		1.17		0.29 – 3.81	%		2,221,443
Residential mortgage		1,828,248			0.38 –18.00	%		3.65		0.79 – 4.58	%		1,860,913
Consumer		603,442			0.38 –21.00	%		0.67		1.98 – 3.91	%		605,656
Total loans		10,643,036											10,537,455
Allowance for loan losses		(292,971	)										–
Net loans		10,350,065											10,537,455

Mortgage servicing rights		115,723											115,723
Derivative instruments with positive fair value, net of cash margin		270,445											270,445
Other assets – private equity funds		25,436											25,436
Deposits with no stated maturity		13,669,893											13,669,893
Time deposits		3,509,168			0.01 –9.64	%		1.85		0.82 – 1.56	%		2,979,505
Other borrowings		3,117,358			0.13 –6.58	%		0.02		0.13 – 2.73	%		2,982,460
Subordinated debentures		398,701			5.19 –5.82	%		2.30		3.72	%		413,328
Derivative instruments with negative fair value, net of cash margin		215,420											215,420

				Range of			Average					Estimated
	Carrying			Contractual			Re-pricing		Discount			Fair
	Value			Yields			(in years)		Rate			Value
Cash and cash equivalents	$	852,526										$	852,526
Trading securities		62,159											62,159
Investment securities:
Municipal and other tax-exempt		221,702											227,301
Other debt securities		131,575											136,585
Total investment securities		353,277											363,886

Available for sale securities:
Municipal and other tax-exempt		66,439											66,439
U.S. agency residential mortgage-backed securities		8,223,719											8,223,719
Private issue residential mortgage-backed securities		735,516											735,516
Other debt securities		13,064											13,064
Perpetual preferred stock		19,881											19,881
Equity securities and mutual funds		47,209											47,209
Total available for sale securities		9,105,828											9,105,828

Mortgage trading securities		534,641											534,641
Residential mortgage loans held for sale		227,574											227,574
Loans:
Commercial		6,011,528			0.25 – 18.00	%		0.54		0.72 – 4.61	%		5,915,895
Commercial real estate		2,340,909			0.38 – 18.00			1.08		0.30 – 3.91			2,291,533
Residential mortgage		1,834,246			0.38 – 18.00			3.12		1.16 – 4.17			1,912,579
Consumer		696,034			0.38 – 21.00			0.90		1.92 – 4.16			704,498
Total loans		10,882,717											10,824,505
Allowance for loan losses		(299,489	)										–
Net loans		10,583,228											10,824,505

Mortgage servicing rights		98,942											98,942
Derivative instruments with positive fair value, net of cash margin		334,576											334,576
Other assets – private equity funds		23,834											23,834
Deposits with no stated maturity		12,414,412											12,414,412
Time deposits		3,673,088			0.01 – 9.64			1.54		1.05 – 1.54			3,158,578
Other borrowings		3,970,770			0.14 – 6.58			0.37		0.18 – 2.81			3,834,960
Subordinated debentures		398,617			5.19 – 5.82			2.60		3.88			415,161
Derivative instruments with negative fair value, net of cash margin		299,851											299,851

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 June 30, 2011 (in thousands):

	Total		Quoted Prices in Active Markets for Identical Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs
Assets:
Trading securities	$	$99,846	$	2,327	$	97,519	$	–

Available for sale securities:
U.S. Treasury		1,003		1,003		–		–
Municipal and other tax-exempt		70,210		–		26,552		43,658
U.S. agency residential mortgage-backed securities		8,893,789		–		8,893,789		–
Private issue residential mortgage-backed securities		513,222		–		513,222		–
Other debt securities		5,893		–		–		5,893
Perpetual preferred stock		22,694		–		22,694		–
Equity securities and mutual funds		60,197		41,557		18,640		–
Total available for sale securities		9,567,008		42,560		9,474,897		49,551

Mortgage trading securities		553,231		–		553,231		–
Residential mortgage loans held for sale		169,609		–		169,609		–
Mortgage servicing rights		109,192		–		–		109,192	1
Derivative contracts, net of cash margin2		229,887		–		229,887		–
Other assets – private equity funds		28,313		–		–		28,313

Liabilities:
Derivative contracts, net of cash margin2		173,917		–		173,917		–

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 5, Mortgage Banking Activities.

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

The fair value of financial assets and liabilities that are measured on a recurring basis are as follows as of December 31, 2010 (in thousands):

	Total		Quoted Prices in Active Markets for Identical Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs
Assets:
Trading securities	$	55,467	$	877	$	54,590	$	–

Available for sale securities:
Municipal and other tax-exempt		72,942		–		25,849		47,093
U.S. agency residential mortgage-backed securities		8,446,908		–		8,446,908		–
Privately issued residential mortgage-backed securities		644,210		–		644,210		–
Other debt securities		6,401		–		1		6,400
Perpetual preferred stock		22,114		–		22,114		–
Equity securities and mutual funds		43,046		22,344		20,702		–
Total available for sale securities		9,235,621		22,344		9,159,784		53,493

Mortgage trading securities		428,021		–		428,021		–
Residential mortgage loans held for sale		263,413		–		263,413		–
Mortgage servicing rights		115,723		–		–		115,723	1
Derivative contracts, net of cash margin 2		270,445		–		270,445		–
Other assets – private equity funds		25,436		–		–		25,436

Liabilities:
Certificates of deposit		27,414		–		27,414		–
Derivative contracts, net of cash margin 2		215,420		–		215,420		–

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

The fair value of financial assets and liabilities that are measured on a recurring basis are as follows as of June 30, 2010 (in thousands):

	Total		Quoted Prices in Active Markets for Identical Instruments		Significant Other Observable Inputs		Significant Unobservable Inputs
Assets:
Trading securities	$	62,159	$	4,030	$	58,129	$	–

Available for sale securities:
Municipal and other tax-exempt		66,439		–		26,613		39,826
U.S. agency residential mortgage-backed securities		8,223,719		–		8,223,719		–
Privately issued residential mortgage-backed securities		735,516		–		735,516		–
Other debt securities		13,064		–		29		13,035
Perpetual preferred stock		19,881		–		19,881		–
Equity securities and mutual funds		47,209		22,728		24,481		–
Total available for sale securities		9,105,828		22,728		9,030,239		52,861

Mortgage trading securities		534,641		–		534,641		–
Residential mortgage loans held for sale		227,574		–		227,574		–
Mortgage servicing rights		98,942		–		–		98,984	1
Derivative contracts, net of cash margin 2		334,576		16,991		317,585		–
Other assets – private equity funds		23,834		–		–		23,834

Liabilities:
Certificates of deposit		27,957		–		27,957		–
Derivative contracts, net of cash margin 2		299,851		–		299,851		–

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

Fair Value Assets Measured On Recurring Basis Significant Unobservable Inputs

The following represents the changes for the three months ended June 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, March 31, 2011	$	43,767		$	5,899		$	25,046
Purchases and capital calls		–			–			746
Redemptions and distributions		–			–			(783	)
Gain (loss) recognized in earnings:
Gain on other assets, net		–			–			3,304
Other-than-temporary impairment losses		(521	)		–			–
Other comprehensive gain (loss)		412			(6	)		–
Balance, June 30, 2011	$	43,658		$	5,893		$	28,313

The following represents the changes for the six months ended June 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			–			1,652
Redemptions and distributions		(9,975	)		(500	)		(2,185	)
Gain (loss) recognized in earnings:
Brokerage and trading revenue		(576	)		–			–
Gain on other assets, net		–			–			3,410
Gain on securities, net		18			–			–
Other-than-temporary impairment losses		(521	)		–			–
Other comprehensive (loss)		99			(7	)		–
Balance, June 30, 2011	$	43,658		$	5,893		$	28,313

The following represents the changes for the three months ended June 30, 2010 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 at March 31, 2010	$	38,004		$	17,150		$	22,825
Purchases, sales, issuances and settlements, net		1,775			(4,250	)		663
Gain (loss) recognized in earnings
Brokerage and trading revenue		(11	)		–			–
Gain (loss) on other assets, net		–			–			346
Gain on securities, net		–			–			–
Other comprehensive (loss)		58			135			–
Balance June 30, 2010	$	39,826		$	13,035		$	23,834

The following represents the changes for the six months ended June 30, 2010 related to assets measured at fair value on a recurring basis using significant unobservable inputs (in thousands):

				Available for Sale Securities
	Trading Securities			Municipal and other tax-exempt			Other debt securities			Other assets – private equity funds

Balance, December 31, 2009	$	9,800		$	36,598		$	17,116		$	22,917
Purchases, sales, issuances and settlements, net		(9,800	)		4,133			(4,200	)		1
Gain (loss) recognized in earnings
Brokerage and trading revenue		–			(80	)		–			–
Gain (loss) on other assets, net		–			–			–			916
Gain on securities, net		–			–			–			–
Other comprehensive (loss)		–			(825	)		119			–
Balance, June 30, 2010	$	–		$	39,826		$	13,035		$	23,834

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 adjusted to fair value during the three months ended June 30, 2011:

Carrying Value at June 30, 2011

Fair Value Adjustments for the Three Months

Ended June 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 allowance for recourse loans

Net losses and expenses of repossessed assets, net

Impaired loans

–

17,949

–

4,071

146

–

Real estate and other repossessed assets

–

50,885

–

4,127

	Carrying Value at June 30, 2010						Fair Value Adjustments for the Three Months Ended June 30, 2010 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	$	–	$	55,893	$	–	$	28,243	$	–
Real estate and other repossessed assets		–		28,778		6,736		–		11,623

- Definition

Tabular disclosure of assets and liabilities by class, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). The disclosures that may be required or desired include: (a) the fair value measurements recorded during the period and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ 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, 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, issuances, 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 Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13433-108611

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 14
-Subparagraph a
-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 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15
-Subparagraph b-d
-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 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13476-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 10
-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 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13467-108611

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 18
-Subparagraph c(2), d, e, f
-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 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32
-Subparagraph a, c(1), c(2), c(3), d
-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 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 19
-Subparagraph a, b, c(1), d(1)
-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.

+ Details