Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present summaries of the Corporation’s assets and liabilities measured at fair value on a recurring basis and reported on the consolidated balance sheets:



	March 31, 2015
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	34,124	$	—	$	34,124
Available for sale investment securities:
Equity securities	40,608		—		—		40,608
U.S. Government sponsored agency securities	—		203		—		203
State and municipal securities	—		224,342		—		224,342
Corporate debt securities	—		92,778		4,904		97,682
Collateralized mortgage obligations	—		867,876		—		867,876
Mortgage-backed securities	—		930,159		—		930,159
Auction rate securities	—		—		98,932		98,932
Total available for sale investments	40,608		2,115,358		103,836		2,259,802
Other assets	19,198		31,657		—		50,855
Total assets	$	59,806	$	2,181,139	$	103,836	$	2,344,781
Other liabilities	$	19,009	$	29,760	$	—	$	48,769



	December 31, 2014
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	17,522	$	—	$	17,522
Available for sale investment securities:
Equity securities	47,623		—		—		47,623
U.S. Government securities	—		200		—		200
U.S. Government sponsored agency securities	—		214		—		214
State and municipal securities	—		245,215		—		245,215
Corporate debt securities	—		90,126		7,908		98,034
Collateralized mortgage obligations	—		902,313		—		902,313
Mortgage-backed securities	—		928,831		—		928,831
Auction rate securities	—		—		100,941		100,941
Total available for sale investments	47,623		2,166,899		108,849		2,323,371
Other assets	17,682		21,305		—		38,987
Total assets	$	65,305	$	2,205,726	$	108,849	$	2,379,880
Other liabilities	$	17,737	$	21,084	$	—	$	38,821

Schedule of Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis using Level 3 Inputs

The following table presents the changes in the Corporation’s available for sale investment securities measured at fair value on a recurring basis using unobservable inputs (Level 3):



	Three months ended March 31, 2015
	Pooled Trust Preferred Securities			Single-issuer Trust Preferred Securities			ARCs
	(in thousands)
Balance at December 31, 2014	$	4,088		$	3,820		$	100,941
Sales	(3,079		)	—			—
Unrealized adjustment to fair value (1)	190			(2		)	332
Settlements - calls	(117		)	—			(2,446		)
Discount accretion (2)	2			2			105
Balance at March 31, 2015	$	1,084		$	3,820		$	98,932

	Three months ended March 31, 2014
Balance at December 31, 2013	$	5,306		$	3,781		$	159,274
Sales	—			—			(11,912		)
Unrealized adjustment to fair value (1)	521			38			124
Settlements - calls	(172		)	—			—
Discount accretion (2)	4			1			227
Balance at March 31, 2014	$	5,659		$	3,820		$	147,713


(1)	Pooled trust preferred securities, single-issuer trust preferred securities and ARCs are classified as available for sale investment securities; as such, the unrealized adjustment to fair value was recorded as an unrealized holding gain (loss) and included as a component of available for sale investment securities on the consolidated balance sheets.


(2)	Included as a component of net interest income on the consolidated statements of income.

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis

The following table presents the Corporation’s financial assets measured at fair value on a nonrecurring basis and reported on the Corporation’s consolidated balance sheets:



	March 31, 2015
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	148,698	$	148,698
Other financial assets	—		—		56,054		56,054
Total assets	$	—	$	—	$	204,752	$	204,752



	December 31, 2014
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	127,834	$	127,834
Other financial assets	—		—		54,170		54,170
Total assets	$	—	$	—	$	182,004	$	182,004

Details of Book Value and Fair Value of Financial Instruments

As required by FASB ASC Section 825-10-50, the following table details the book values and estimated fair values of the Corporation’s financial instruments as of March 31, 2015 and December 31, 2014. In addition, a general description of the methods and assumptions used to estimate such fair values is also provided.



	March 31, 2015				December 31, 2014
	Book Value		Estimated Fair Value		Book Value		Estimated Fair Value
	(in thousands)
FINANCIAL ASSETS
Cash and due from banks	$	91,870	$	91,870	$	105,702	$	105,702
Interest-bearing deposits with other banks	637,973		637,973		358,130		358,130
Federal Reserve Bank and Federal Home Loan Bank stock	65,694		65,694		64,953		64,953
Loans held for sale (1)	34,124		34,124		17,522		17,522
Available for sale investment securities (1)	2,259,802		2,259,802		2,323,371		2,323,371
Loans, net of unearned income (1)	13,115,505		13,078,115		13,111,716		13,030,543
Accrued interest receivable	42,216		42,216		41,818		41,818
Other financial assets (1)	178,496		178,496		169,764		169,764
FINANCIAL LIABILITIES
Demand and savings deposits	$	10,467,077	$	10,467,077	$	10,296,055	$	10,296,055
Time deposits	3,047,420		3,058,030		3,071,451		3,069,883
Short-term borrowings	410,105		410,105		329,719		329,719
Accrued interest payable	18,357		18,357		18,045		18,045
Other financial liabilities (1)	193,924		193,924		172,786		172,786
Federal Home Loan Bank advances and long-term debt	1,094,517		1,104,738		1,139,413		1,142,980


(1)	These financial instruments, or certain financial instruments within these categories, are measured at fair value on the Corporation’s consolidated balance sheets. Descriptions of the fair value determinations for these financial instruments are disclosed above.

- 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, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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