Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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:



	September 30, 2015
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	26,937	$	—	$	26,937
Available for sale investment securities:
Equity securities	23,532		—		—		23,532
U.S. Government sponsored agency securities	—		48,551		—		48,551
State and municipal securities	—		240,236		—		240,236
Corporate debt securities	—		96,761		3,180		99,941
Collateralized mortgage obligations	—		874,299		—		874,299
Mortgage-backed securities	—		1,051,905		—		1,051,905
Auction rate securities	—		—		97,873		97,873
Total available for sale investments	23,532		2,311,752		101,053		2,436,337
Other assets	16,253		39,787		—		56,040
Total assets	$	39,785	$	2,378,476	$	101,053	$	2,519,314
Other liabilities	$	15,982	$	39,027	$	—	$	55,009



	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 September 30, 2015
	Pooled Trust Preferred Securities			Single-issuer Trust Preferred Securities			ARCs
	(in thousands)
Balance at June 30, 2015	$	530		$	3,820		$	98,606
Unrealized adjustment to fair value (1)	—			(203		)	(890		)
Settlements - calls	—			(970		)	—
Discount accretion (2)	—			3			157
Balance at September 30, 2015	$	530		$	2,650		$	97,873

	Three months ended September 30, 2014
Balance at June 30, 2014	$	4,275		$	3,820		$	146,931
Realized adjustment to fair value (3)	(18		)	—			—
Unrealized adjustment to fair value (1)	230			47			1,280
Discount accretion (2)	—			2			262
Balance at September 30, 2014	$	4,487		$	3,869		$	148,473

	Nine months ended September 30, 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	(3,633		)	—			—
Unrealized adjustment to fair value (1)	190			(207		)	(978		)
Settlements - calls	(117		)	(970		)	(2,446		)
Discount accretion (2)	2			7			356
Balance at September 30, 2015	$	530		$	2,650		$	97,873

	Nine months ended September 30, 2014
Balance at December 31, 2013	$	5,306		$	3,781		$	159,274
Sales	(1,394		)	—			(11,912		)
Realized adjustment to fair value (3)	(18		)	—			—
Unrealized adjustment to fair value (1)	789			83			1,528
Settlements - calls	(200		)	—			(1,081		)
Discount accretion (2)	4			5			664
Balance at September 30, 2014	$	4,487		$	3,869		$	148,473


(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.


(3)	Realized adjustments to fair value represent credit related other-than-temporary impairment charges and gains on sales of investment securities, both included as components of investment securities gains 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:



	September 30, 2015
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	145,518	$	145,518
Other financial assets	—		—		51,794		51,794
Total assets	$	—	$	—	$	197,312	$	197,312



	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 September 30, 2015 and December 31, 2014. In addition, a general description of the methods and assumptions used to estimate such fair values is also provided.



	September 30, 2015				December 31, 2014
	Book Value		Estimated Fair Value		Book Value		Estimated Fair Value
	(in thousands)
FINANCIAL ASSETS
Cash and due from banks	$	93,803	$	93,803	$	105,702	$	105,702
Interest-bearing deposits with other banks	510,943		510,943		358,130		358,130
Federal Reserve Bank and Federal Home Loan Bank stock	68,977		68,977		64,953		64,953
Loans held for sale (1)	26,937		26,937		17,522		17,522
Available for sale investment securities (1)	2,436,337		2,436,337		2,323,371		2,323,371
Loans, net of unearned income (1)	13,536,361		13,428,016		13,111,716		13,030,543
Accrued interest receivable	42,846		42,846		41,818		41,818
Other financial assets (1)	174,835		174,835		169,764		169,764
FINANCIAL LIABILITIES
Demand and savings deposits	$	11,148,667	$	11,148,667	$	10,296,055	$	10,296,055
Time deposits	2,935,727		2,944,618		3,071,451		3,069,883
Short-term borrowings	431,631		431,631		329,719		329,719
Accrued interest payable	14,727		14,727		18,045		18,045
Other financial liabilities (1)	192,281		192,281		172,786		172,786
Federal Home Loan Bank advances and long-term debt	979,433		1,002,761		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.