ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value Measurements on a Recurring Basis

Fair Value Measurements on a Recurring Basis

(Amounts in thousands)

	June 30, 2012								December 31, 2011
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobserv- able Inputs (Level 3)		Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobserv- able Inputs (Level 3)		Total
Assets:
Securities available-for-sale
U.S. Treasury	$	88,252	$	—	$	—	$	88,252	$	61,521	$	—	$	—	$	61,521
U.S. Agencies		—		—		—		—		—		10,034		—		10,034
Collateralized mortgage obligations		—		305,268		—		305,268		—		356,000		—		356,000
Residential mortgage- backed securities		—		1,034,113		—		1,034,113		—		1,189,213		—		1,189,213
State and municipal		—		197,516		—		197,516		—		166,197		—		166,197
Foreign sovereign debt		—		500		—		500		—		500		—		500
Total securities available-for-sale		88,252		1,537,397		—		1,625,649		61,521		1,721,944		—		1,783,465
Mortgage loans held-for-sale		—		35,342		—		35,342		—		32,049		—		32,049
Capital market derivative assets(1)		—		101,486		1,127		102,613		—		100,849		827		101,676
Other assets(2)		—		286		19		305		—		759		—		759
Total assets	$	88,252	$	1,674,511	$	1,146	$	1,763,909	$	61,521	$	1,855,601	$	827	$	1,917,949
Liabilities:
Capital market derivative liabilities(1)	$	—	$	105,729	$	44	$	105,773	$	—	$	104,108	$	32	$	104,140
Other liabilities(2)		—		291		—		291		—		709		—		709
Total liabilities	$	—	$	106,020	$	44	$	106,064	$	—	$	104,817	$	32	$	104,849

⁽¹⁾  Capital market derivative assets and derivative liabilities include client-related derivatives.

⁽²⁾  Other assets and other liabilities include derivatives designated in hedging relationships, derivatives for commitments to fund certain mortgage loans held-for-sale, end-user foreign exchange derivatives and warrants received from one borrower in connection with a loan restructuring.

Reconciliation of Beginning and Ending Fair Value for Those Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

Reconciliation of Beginning and Ending Fair Value for Those

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

(Amounts in thousands)

	Quarters Ended June 30,
	2012								2011
	Derivative Assets			Warrants		Derivative (Liabilities)			Derivative Assets			Derivative (Liabilities)
Balance at beginning of period	$	1,043		$	—	$	(31	)	$	3,235		$	(10	)
Total gains (losses):
Included in earnings (1)		25			19		162			139			(1	)
Purchases, issuances, sales and settlements:
Issuances		—			—		—			21			—
Settlements		(272	)		—		(175	)		(1,157	)		—
Level 3 transfers in (out), net		331			—					131			—
Balance at end of period	$	1,127		$	19	$	(44	)	$	2,369		$	(11	)
Change in unrealized gains (losses) in earnings relating to assets and liabilities still held at end of period	$	45		$	—	$	161		$	249		$	1

	Six Months Ended June 30,
	2012								2011
	Derivative Assets			Warrants		Derivative (Liabilities)			Derivative Assets			Derivative (Liabilities)
Balance at beginning of period	$	827		$	—	$	(32	)	$	4,654		$	(9	)
Total gains (losses):
Included in earnings (1)		76			19		299			(137	)		28
Purchases, issuances, sales and settlements:
Issuances		—			—		—			42			(30	)
Settlements		(522	)		—		(311	)		(2,511	)		—
Level 3 transfers in (out), net		746			—		—			321			—
Balance at end of period	$	1,127		$	19	$	(44	)	$	2,369		$	(11	)
Change in unrealized gains (losses) in earnings relating to assets and liabilities still held at end of period	$	96		$	—	$	299		$	296		$	(27	)

⁽¹⁾  Amounts disclosed in this line are included in the Consolidated Statements of Income as capital markets products income for derivatives and other income for warrants.

Summary Of The Difference Between Aggregate Fair Value And Aggregate Remaining Principle Balance For Mortgage Loans Held For Sale Elected To Be Carried At Fair Value

	June 30, 2012			December 31, 2011
Aggregate fair value	$	35,342		$	32,049
Difference		(3	)		(120	)
Aggregate unpaid principal balance	$	35,339		$	31,929

⁽¹⁾  The change in fair value is reflected in mortgage banking non-interest income.

Fair Value Measurements on a Nonrecurring Basis

Fair Value Measurements on a Nonrecurring Basis

(Amounts in thousands)

	Fair Value				Losses
	June 30,				For the Six Months  Ended June 30,
Financial Asset	2012		2011		2012		2011
Collateral-dependent impaired loans (1)	$	83,980	$	175,411	$	22,132	$	33,615
Covered assets - OREO (2) (3)		9,934		5,455		859		658
OREO (2)		57,431		40,567		13,729		10,245
Total	$	151,345	$	221,433	$	36,720	$	44,518

⁽¹⁾  Represents the fair value of loans adjusted to the appraised value of the collateral with a write-down in fair value or change in specific reserves during the respective period. These fair value adjustments are recognized as part of the provision for loan losses charged to earnings.

⁽²⁾  Represents the fair value of foreclosed properties that were adjusted subsequent to their initial classification as foreclosed assets. Write-downs are recognized as a component of net foreclosed real estate expense in the Consolidated Statements of Income.

⁽³⁾  The 20% portion of any covered asset OREO write-down not reimbursed by the FDIC is recorded as net foreclosed real estate expense.

Quantitative Information Regarding Level 3 Fair Value Measurements

Financial Instrument	Fair Value of Assets / (Liabilities) at June 30, 2012			Valuation Technique(s)	Unobservable Input	Range			Weighted Average
Watch list derivatives	$	1,199		Discounted cash flow	Loss factors		3.7–15.8	%		6.7	%
Risk participation agreements		(1,177	)(1)	Discounted cash flow	Loss factors		0.0–2.41	%		0.5	%
Collateral-dependent impaired loans		83,980		Sales comparison, income capitalization and/or cost approach	Property specific adjustment		10.0–24.9	%		15.1	%(2)
Warrants		19		Option pricing model	Expected volatility		99.8-137.8	%		120.3	%
					Expected term		1-6 years			2.5 years
OREO	$	57,431		Sales comparison, income capitalization and/or cost approach	Property specific adjustment		0.8-15.0	%		11.9	%(2)

⁽¹⁾  Represents fair value of underlying swap.

⁽²⁾  Weighted average is calculated based on assets with a property specific adjustment.

Financial Instruments

	As of June 30, 2012
	Carrying				Fair Value Measurements Using
	Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	141,563	$	141,563	$	141,563	$	—	$	—
Federal funds sold and other short-term investments		315,378		315,378		—		315,378		—
Loans held-for-sale		35,342		35,342		—		35,342		—
Securities available-for-sale		1,625,649		1,625,649		88,252		1,537,397		—
Securities held-to-maturity		693,277		706,748		—		706,748		—
Non-marketable equity investments		47,702		47,702		—		43,467		4,235
Loans, net of allowance for loan losses and unearned fees		9,261,933		9,119,121		—		—		9,119,121
Covered assets, net of allowance for covered loan losses		223,049		243,600		—		—		243,600
Accrued interest receivable		37,089		37,089		—		—		37,089
Investment in BOLI		51,751		51,751		—		—		51,751
Capital markets derivative assets		102,613		102,613		—		101,486		1,127
Financial Liabilities:
Deposits	$	10,734,530	$	10,745,791	$	—	$	7,852,083	$	2,893,708
Short-term borrowings		335,000		335,212		—		335,212		—
Long-term debt		374,793		353,783		150,660		11,532		191,591
Accrued interest payable		5,855		5,855		—		—		5,855
Capital markets derivative liabilities		105,773		105,773		—		105,729		44

	As of December 31, 2011
	Carrying				Fair Value Measurements Using
	Amount		Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from banks	$	156,131	$	156,131	$	156,131	$	—	$	—
Federal funds sold and other short-term investments		205,610		205,610		—		205,610		—
Loans held-for-sale		32,049		32,049		—		32,049		—
Securities available-for-sale		1,783,465		1,783,465		61,521		1,721,944		—
Securities held-to-maturity		490,143		493,230		—		493,230		—
Non-marketable equity investments		43,604		43,604		—		40,695		2,909
Loans, net of allowance for loan losses and unearned fees		8,816,967		8,465,358		—		—		8,465,358
Covered assets, net of allowance for covered loan losses		280,868		306,976		—		—		306,976
Accrued interest receivable		35,732		35,732		—		—		35,732
Investment in BOLI		50,966		50,966		—		—		50,966
Capital markets derivative assets		101,676		101,676		—		100,849		827
Financial Liabilities:
Deposits	$	10,392,854	$	10,405,158	$	—	$	8,217,765	$	2,187,393
Short-term borrowings		156,000		156,047		—		156,047		—
Long-term debt		379,793		343,121		—		16,893		326,228
Accrued interest payable		5,567		5,567		—		—		5,567
Capital markets derivatives liabilities		104,140		104,140		—		104,108		32