Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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:



	June 30, 2017
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	33,364	$	—	$	33,364
Available for sale investment securities:
Equity securities	21,455		—		—		21,455
U.S. Government sponsored agency securities	—		6,054		—		6,054
State and municipal securities	—		401,636		—		401,636
Corporate debt securities	—		85,795		3,197		88,992
Collateralized mortgage obligations	—		538,507		—		538,507
Residential mortgage-backed securities	—		1,213,065		—		1,213,065
Commercial mortgage-backed securities	—		121,067		—		121,067
Auction rate securities	—		—		97,923		97,923
Total available for sale investment securities	21,455		2,366,124		101,120		2,488,699
Other assets	18,533		49,717		—		68,250
Total assets	$	39,988	$	2,449,205	$	101,120	$	2,590,313
Other liabilities	$	18,438	$	43,338	$	—	$	61,776



	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
Residential mortgage-backed securities	—		1,317,838		—		1,317,838
Commercial mortgage-backed securities	—		24,563		—		24,563
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 June 30, 2017
	Pooled Trust Preferred Securities		Single-issuer Trust Preferred Securities			ARCs
	(in thousands)
Balance at March 31, 2017	$	422	$	2,750		$	97,439
Unrealized adjustment to fair value ⁽¹⁾	—		22			386
Discount accretion ⁽²⁾	—		3			98
Balance at June 30, 2017	$	422	$	2,775		$	97,923

	Three months ended June 30, 2016
Balance at March 31, 2016	$	706	$	2,400		$	97,326
Unrealized adjustment to fair value ⁽¹⁾	—		22			482
Discount accretion ⁽²⁾	—		3			78
Balance at June 30, 2016	$	706	$	2,425		$	97,886

	Six months ended June 30, 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⁾	—		319			472
Discount accretion ⁽²⁾	—		6			195
Balance at June 30, 2017	$	422	$	2,775		$	97,923

	Six months ended June 30, 2016
Balance at December 31, 2015	$	706	$	2,630		$	98,059
Unrealized adjustment to fair value ⁽¹⁾	—		(211		)	(350		)
Discount accretion ⁽²⁾	—		6			177
Balance at June 30, 2016	$	706	$	2,425		$	97,886


(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:



	June 30, 2017
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	144,256	$	144,256
Other financial assets	—		—		49,613		49,613
Total assets	$	—	$	—	$	193,869	$	193,869



	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 June 30, 2017 and December 31, 2016. In addition, a general description of the methods and assumptions used to estimate such fair values is also provided.



	June 30, 2017				December 31, 2016
	Book Value		Estimated Fair Value		Book Value		Estimated Fair Value
	(in thousands)
FINANCIAL ASSETS
Cash and due from banks	$	94,938	$	94,938	$	118,763	$	118,763
Interest-bearing deposits with other banks	322,514		322,514		233,763		233,763
Federal Reserve Bank and Federal Home Loan Bank stock	70,328		70,328		57,489		57,489
Loans held for sale ⁽¹⁾	62,354		62,354		28,697		28,697
Available for sale investment securities ⁽¹⁾	2,488,699		2,488,699		2,559,227		2,559,227
Net Loans ⁽¹⁾	15,174,275		15,007,961		14,530,593		14,387,454
Accrued interest receivable	47,603		47,603		46,294		46,294
Other financial assets ⁽¹⁾	212,773		212,773		206,132		206,132
FINANCIAL LIABILITIES
Demand and savings deposits	$	12,610,951	$	12,610,951	$	12,259,622	$	12,259,622
Time deposits	2,746,410		2,758,807		2,753,242		2,769,757
Short-term borrowings	694,859		694,859		541,317		541,317
Accrued interest payable	7,804		7,804		9,632		9,632
Other financial liabilities ⁽¹⁾	252,537		252,537		216,080		216,080
Federal Home Loan Bank advances and other long-term debt	1,037,961		1,035,711		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.