Fair Values of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2015

Summary Of Balances Of Assets And Liabilities Measured At Fair Value On A Recurring Basis

The following tables present the balances of assets and liabilities measured at fair value on a recurring basis for the periods presented:



	September 30, 2015
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	285,922	$	—	$	285,922	$	—
U.S. Government agencies	645,023		—		645,023		—
Municipal	297,342		—		228,941		68,401
Corporate notes	116,945		—		116,945		—
Mortgage-backed	815,045		—		815,045		—
Equity securities	54,004		—		29,488		24,516
Trading account securities	3,312		—		3,312		—
Mortgage loans held-for-sale	347,005		—		347,005		—
Mortgage servicing rights	7,875		—		—		7,875
Nonqualified deferred compensation assets	8,342		—		8,342		—
Derivative assets	69,034		—		69,034		—
Total	$	2,649,849	$	—	$	2,549,057	$	100,792
Derivative liabilities	$	65,198	$	—	$	65,198	$	—



	December 31, 2014
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	381,805	$	—	$	381,805	$	—
U.S. Government agencies	668,316		—		668,316		—
Municipal	238,529		—		179,576		58,953
Corporate notes	133,579		—		133,579		—
Mortgage-backed	318,710		—		318,710		—
Equity securities	51,139		—		27,428		23,711
Trading account securities	1,206		—		1,206		—
Mortgage loans held-for-sale	351,290		—		351,290		—
Mortgage servicing rights	8,435		—		—		8,435
Nonqualified deferred compensation assets	7,951		—		7,951		—
Derivative assets	47,964		—		47,964		—
Total	$	2,208,924	$	—	$	2,117,825	$	91,099
Derivative liabilities	$	41,180	$	—	$	41,180	$	—



	September 30, 2014
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	378,261	$	—	$	378,261	$	—
U.S. Government agencies	739,752		—		739,752		—
Municipal	187,103		—		136,866		50,237
Corporate notes	134,155		—		134,155		—
Mortgage-backed	291,222		—		291,222		—
Equity securities	52,155		—		28,194		23,961
Trading account securities	6,015		—		6,015		—
Mortgage loans held-for-sale	363,303		—		363,303		—
Mortgage servicing rights	8,137		—		—		8,137
Nonqualified deferred compensation assets	7,927		—		7,927		—
Derivative assets	43,343		—		43,343		—
Total	$	2,211,373	$	—	$	2,129,038	$	82,335
Derivative liabilities	$	35,505	$	—	$	35,505	$	—

Summary Of Changes In Level 3 Assets And Liabilities Measured At Fair Value On A Recurring Basis

The changes in Level 3 assets measured at fair value on a recurring basis during the three and nine months ended September 30, 2015 and 2014 are summarized as follows:



				Equity securities			Mortgage servicing rights
(Dollars in thousands)	Municipal			Equity securities			Mortgage servicing rights
Balance at July 1, 2015	$	58,572		$	24,996		$	8,034
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—			(159		)
Other comprehensive income	223			(480		)	—
Purchases	10,405			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	(799		)	—			—
Net transfers into/(out of) Level 3	—			—			—
Balance at September 30, 2015	$	68,401		$	24,516		$	7,875


(1)	Changes in the balance of mortgage servicing rights are recorded as a component of mortgage banking revenue in non-interest income.



				Equity securities		Mortgage servicing rights
(Dollars in thousands)	Municipal			Equity securities		Mortgage servicing rights
Balance at January 1, 2015	$	58,953		$	23,711	$	8,435
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—		(560		)
Other comprehensive income	(287		)	805		—
Purchases	21,254			—		—
Issuances	—			—		—
Sales	—			—		—
Settlements	(11,519		)	—		—
Net transfers into/(out of) Level 3	—			—		—
Balance at September 30, 2015	$	68,401		$	24,516	$	7,875


(1)	Changes in the balance of mortgage servicing rights are recorded as a component of mortgage banking revenue in non-interest income.



				Equity securities			Mortgage servicing rights
(Dollars in thousands)	Municipal			Equity securities			Mortgage servicing rights
Balance at July 1, 2014	$	38,053		$	24,152		$	8,227
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—			(90		)
Other comprehensive income	(27		)	(191		)	—
Purchases	4,129			—			—
Issuances	—			—			—
Sales	—			—			—
Settlements	(800		)	—			—
Net transfers into/(out of) Level 3⁽²⁾	8,882			—			—
Balance at September 30, 2014	$	50,237		$	23,961		$	8,137


(1)	Changes in the balance of mortgage servicing rights are recorded as a component of mortgage banking revenue in non-interest income.


(2)	Transfers into Level 3 relate to a reclassification of municipal bonds in the current quarter.



				Equity securities		Mortgage servicing rights
(Dollars in thousands)	Municipal			Equity securities		Mortgage servicing rights
Balance at January 1, 2014	$	36,386		$	22,163	$	8,946
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—		(809		)
Other comprehensive income	193			1,798		—
Purchases	9,095			—		—
Issuances	—			—		—
Sales	—			—		—
Settlements	(4,319		)	—		—
Net transfers into/(out of) Level 3⁽²⁾	8,882			—		—
Balance at September 30, 2014	$	50,237		$	23,961	$	8,137


(1)	Changes in the balance of mortgage servicing rights are recorded as a component of mortgage banking revenue in non-interest income.


(2)	Transfers into Level 3 relate to a reclassification of municipal bonds in the current quarter.

Summary Of Assets Measured At Fair Value On A Nonrecurring Basis

For assets measured at fair value on a nonrecurring basis that were still held in the balance sheet at the end of the period, the following table provides the carrying value of the related individual assets or portfolios at September 30, 2015.



	September 30, 2015								Three Months Ended September 30, 2015 Fair Value Losses Recognized, net		Nine Months Ended September 30, 2015 Fair Value Losses Recognized, net
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Impaired loans—collateral based	$	73,819	$	—	$	—	$	73,819	$	5,262	$	11,517
Other real estate owned, including covered other real estate owned ⁽¹⁾	80,524		—		—		80,524		989		4,834
Total	$	154,343	$	—	$	—	$	154,343	$	6,251	$	16,351


(1)	Fair value losses recognized, net on other real estate owned include valuation adjustments and charge-offs during the respective period.

Schedule Of Valuation Techniques And Significant Unobservable Inputs Used To Measure Both Recurring And Non-Recurring

The valuation techniques and significant unobservable inputs used to measure both recurring and non-recurring Level 3 fair value measurements at September 30, 2015 were as follows:

(Dollars in thousands)

Fair Value

Valuation Methodology

Significant Unobservable Input

Range

of Inputs

Weighted

Average

of Inputs

Impact to valuation

from an increased or

higher input value

Measured at fair value on a recurring basis:

Municipal Securities

68,401

Bond pricing

Equivalent rating

BBB-AA+

N/A

Increase

Equity Securities

24,516

Discounted cash flows

Discount rate

2.01%-2.43%

2.22%

Decrease

Mortgage Servicing Rights

7,875

Discounted cash flows

Discount rate

9%-13%

9.15%

Decrease

Constant prepayment rate (CPR)

9%-29%

12.93%

Decrease

Measured at fair value on a non-recurring basis:

Impaired loans—collateral based

73,819

Appraisal value

Appraisal adjustment - cost of sale

10%

10.00%

Decrease

Other real estate owned, including covered other real estate owned

80,524

Appraisal value

Appraisal adjustment - cost of sale

10%

10.00%

Decrease

Summary Of Carrying Amounts And Estimated Fair Values Of Financial Instruments

The table below presents the carrying amounts and estimated fair values of the Company’s financial instruments as of the dates shown:



	At September 30, 2015				At December 31, 2014				At September 30, 2014
	Carrying		Fair		Carrying		Fair		Carrying		Fair
(Dollars in thousands)	Value		Value		Value		Value		Value		Value
Financial Assets:
Cash and cash equivalents	$	250,655	$	250,655	$	230,707	$	230,707	$	287,416	$	287,416
Interest bearing deposits with banks	701,106		701,106		998,437		998,437		620,370		620,370
Available-for-sale securities	2,214,281		2,214,281		1,792,078		1,792,078		1,782,648		1,782,648
Trading account securities	3,312		3,312		1,206		1,206		6,015		6,015
Federal Home Loan Bank and Federal Reserve Bank stock, at cost	90,308		90,308		91,582		91,582		80,951		80,951
Brokerage customer receivables	28,293		28,293		24,221		24,221		26,624		26,624
Mortgage loans held-for-sale, at fair value	347,005		347,005		351,290		351,290		363,303		363,303
Total loans	16,484,820		17,284,375		14,636,107		15,346,266		14,306,664		15,001,394
Mortgage servicing rights	7,875		7,875		8,435		8,435		8,137		8,137
Nonqualified deferred compensation assets	8,342		8,342		7,951		7,951		7,927		7,927
Derivative assets	69,034		69,034		47,964		47,964		43,343		43,343
FDIC indemnification asset	—		—		11,846		11,846		27,359		27,359
Accrued interest receivable and other	192,572		192,572		169,156		169,156		170,517		170,517
Total financial assets	$	20,397,603	$	21,197,158	$	18,370,980	$	19,081,139	$	17,731,274	$	18,426,004
Financial Liabilities
Non-maturity deposits	$	14,092,697	$	14,092,697	$	12,142,034	$	12,142,034	$	11,761,825	$	11,761,825
Deposits with stated maturities	4,135,772		4,137,856		4,139,810		4,143,161		4,303,421		4,303,717
Federal Home Loan Bank advances	451,330		459,154		733,050		738,113		347,500		352,516
Other borrowings	259,978		259,978		196,465		197,883		51,483		51,483
Subordinated notes	140,000		142,953		140,000		143,639		140,000		142,720
Junior subordinated debentures	268,566		268,058		249,493		250,305		249,493		250,452
Derivative liabilities	65,198		65,198		41,180		41,180		35,505		35,505
Accrued interest payable	11,364		11,364		8,001		8,001		8,995		8,995
Total financial liabilities	$	19,424,905	$	19,437,258	$	17,650,033	$	17,664,316	$	16,898,222	$	16,907,213