Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2017

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, 2017
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	24,783	$	—	$	24,783
Available for sale investment securities:
Equity securities	22,574		—		—		22,574
U.S. Government sponsored agency securities	—		5,996		—		5,996
State and municipal securities	—		392,624		—		392,624
Corporate debt securities	—		104,705		3,172		107,877
Collateralized mortgage obligations	—		565,886		—		565,886
Mortgage-backed securities	—		1,313,621		—		1,313,621
Auction rate securities	—		—		97,439		97,439
Total available for sale investment securities	22,574		2,382,832		100,611		2,506,017
Other assets	18,170		44,567		—		62,737
Total assets	$	40,744	$	2,452,182	$	100,611	$	2,593,537
Other liabilities	$	18,099	$	41,167	$	—	$	59,266



	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	28,697	$	—	$	28,697
Available for sale investment securities:
Equity securities	24,526		—		—		24,526
U.S. Government sponsored agency securities	—		134		—		134
State and municipal securities	—		391,641		—		391,641
Corporate debt securities	—		106,537		2,872		109,409
Collateralized mortgage obligations	—		593,860		—		593,860
Mortgage-backed securities	—		1,342,401		—		1,342,401
Auction rate securities	—		—		97,256		97,256
Total available for sale investment securities	24,526		2,434,573		100,128		2,559,227
Other assets	17,111		44,481		—		61,592
Total assets	$	41,637	$	2,507,751	$	100,128	$	2,649,516
Other liabilities	$	17,032	$	41,734	$	—	$	58,766

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, 2017
	Pooled Trust Preferred Securities		Single-issuer Trust Preferred Securities			ARCs
	(in thousands)
Balance at December 31, 2016	$	422	$	2,450		$	97,256
Unrealized adjustment to fair value ⁽¹⁾	—		297			86
Discount accretion ⁽²⁾	—		3			97
Balance at March 31, 2017	$	422	$	2,750		$	97,439

	Three months ended March 31, 2016
Balance at December 31, 2015	$	706	$	2,630		$	98,059
Unrealized adjustment to fair value ⁽¹⁾	—		(233		)	(832		)
Discount accretion ⁽²⁾	—		3			99
Balance at March 31, 2016	$	706	$	2,400		$	97,326


(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, 2017
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	131,693	$	131,693
Other financial assets	—		—		49,158		49,158
Total assets	$	—	$	—	$	180,851	$	180,851



	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	132,576	$	132,576
Other financial assets	—		—		50,347		50,347
Total assets	$	—	$	—	$	182,923	$	182,923

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, 2017 and December 31, 2016. In addition, a general description of the methods and assumptions used to estimate such fair values is also provided.



	March 31, 2017				December 31, 2016
	Book Value		Estimated Fair Value		Book Value		Estimated Fair Value
	(in thousands)
FINANCIAL ASSETS
Cash and due from banks	$	93,844	$	93,844	$	118,763	$	118,763
Interest-bearing deposits with other banks	284,750		284,750		233,763		233,763
Federal Reserve Bank and Federal Home Loan Bank stock	65,637		65,637		57,489		57,489
Loans held for sale ⁽¹⁾	24,783		24,783		28,697		28,697
Available for sale investment securities ⁽¹⁾	2,506,017		2,506,017		2,559,227		2,559,227
Net Loans ⁽¹⁾	14,793,101		14,592,018		14,530,593		14,387,454
Accrued interest receivable	46,355		46,355		46,294		46,294
Other financial assets ⁽¹⁾	206,555		206,555		206,132		206,132
FINANCIAL LIABILITIES
Demand and savings deposits	$	12,371,970	$	12,371,970	$	12,259,622	$	12,259,622
Time deposits	2,718,374		2,735,944		2,753,242		2,769,757
Short-term borrowings	453,317		453,317		541,317		541,317
Accrued interest payable	12,506		12,506		9,632		9,632
Other financial liabilities ⁽¹⁾	219,600		219,600		216,080		216,080
Federal Home Loan Bank advances and long-term debt	1,137,909		1,132,282		929,403		928,167


(1)	These financial instruments, or certain financial instruments in 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.