Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 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:



	December 31, 2015
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	306,729	$	—	$	306,729	$	—
U.S. Government agencies	70,236		—		70,236		—
Municipal	108,595		—		39,982		68,613
Corporate notes	81,545		—		81,545		—
Mortgage-backed	1,092,597		—		1,092,597		—
Equity securities	56,686		—		31,487		25,199
Trading account securities	448		—		448		—
Mortgage loans held-for-sale	388,038		—		388,038		—
Mortgage servicing rights	9,092		—		—		9,092
Nonqualified deferred compensations assets	8,517		—		8,517		—
Derivative assets	51,298		—		51,298		—
Total	$	2,173,781	$	—	$	2,070,877	$	102,904
Derivative liabilities	$	45,019	$	—	$	45,019	$	—

	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 compensations 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	$	—

Summary of Changes in Level Three 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 year ended December 31, 2015 are summarized as follows:



				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 (losses) gains included in:
Net income ⁽¹⁾	—			—		657
Other comprehensive income	(1,198		)	1,488		—
Purchases	33,998			—		—
Issuances	—			—		—
Sales	—			—		—
Settlements	(23,140		)	—		—
Net transfers into/(out of) Level 3	—			—		—
Balance at December 31, 2015	$	68,613		$	25,199	$	9,092


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

The changes in Level 3 assets measured at fair value on a recurring basis during the year ended December 31, 2014 are summarized as follows:



(Dollars in thousands)	Municipal			Equity securities		Mortgage servicing rights
Balance at January 1, 2014	$	36,386		$	22,163	$	8,946
Total net (losses) gains included in:
Net income ⁽¹⁾	—			—		(1,214		)
Other comprehensive income	202			1,548		—
Purchases	27,437			—		703
Issuances	—			—		—
Sales	—			—		—
Settlements	(13,954		)	—		—
Net transfers into/(out of) of Level 3 ⁽²⁾	8,882			—		—
Balance at December 31, 2014	$	58,953		$	23,711	$	8,435


(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 third quarter of 2014.

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 December 31, 2015.



	December 31, 2015								Twelve Months Ended December 31, 2015 Fair Value Losses Recognized, net
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Impaired loans-collateral based	$	65,626	$	—	$	—	$	65,626	$	14,571
Other real estate owned, including covered other real estate owned ⁽¹⁾	65,328		—		—		65,328		7,154
Total	$	130,954	$	—	$	—	$	130,954	$	21,725


(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 Nonrecurring

The valuation techniques and significant unobservable inputs used to measure both recurring and non-recurring Level 3 fair value measurements at December 31, 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

68,613

Bond pricing

Equivalent rating

BBB-AA+

N/A

Increase

Equity Securities

25,199

Discounted cash flows

Discount rate

1.85%-2.12%

2.01%

Decrease

Mortgage Servicing Rights

9,092

Discounted cash flows

Discount rate

9%-13%

9.13%

Decrease

Constant prepayment rate (CPR)

8%-26%

11.77%

Decrease

Measured at fair value on a non-recurring basis:

Impaired loans—collateral based

65,626

Appraisal value

Appraisal adjustment - cost of sale

10%

10.00%

Decrease

Other real estate owned, including covered other real-estate owned

65,328

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:



	December 31, 2015				December 31, 2014
(Dollars in thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Cash and cash equivalents	$	275,795	$	275,795	$	230,707	$	230,707
Interest bearing deposits with banks	607,782		607,782		998,437		998,437
Available-for-sale securities	1,716,388		1,716,388		1,792,078		1,792,078
Held-to-maturity securities	884,826		878,111		—		—
Trading account securities	448		448		1,206		1,206
Federal Home Loan Bank and Federal Reserve Bank stock, at cost	101,581		101,581		91,582		91,582
Brokerage customer receivables	27,631		27,631		24,221		24,221
Mortgage loans held-for-sale, at fair value	388,038		388,038		351,290		351,290
Total loans	17,266,790		18,106,829		14,636,107		15,346,266
Mortgage servicing rights	9,092		9,092		8,435		8,435
Nonqualified deferred compensation assets	8,517		8,517		7,951		7,951
Derivative assets	51,298		51,298		47,964		47,964
FDIC indemnification asset	—		—		11,846		11,846
Accrued interest receivable and other	193,092		193,092		169,156		169,156
Total financial assets	$	21,531,278	$	22,364,602	$	18,370,980	$	19,081,139
Financial Liabilities
Non-maturity deposits	$	14,634,957	$	14,634,957	$	12,142,034	$	12,142,034
Deposits with stated maturities	4,004,677		3,998,180		4,139,810		4,143,161
Federal Home Loan Bank advances	859,876		863,437		733,050		738,113
Other borrowings	266,019		266,019		196,465		197,883
Subordinated notes	140,000		140,302		140,000		143,639
Junior subordinated debentures	268,566		268,046		249,493		250,305
Derivative liabilities	45,019		45,019		41,180		41,180
Accrued interest payable	7,394		7,394		8,001		8,001
Total financial liabilities	$	20,226,508	$	20,223,354	$	17,650,033	$	17,664,316