Fair Values of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2017

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:



	June 30, 2017
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	119,081	$	—	$	119,081	$	—
U.S. Government agencies	157,510		—		153,400		4,110
Municipal	124,120		—		46,779		77,341
Corporate notes	60,598		—		60,598		—
Mortgage-backed	1,153,290		—		1,153,290		—
Equity securities	35,037		—		35,037		—
Trading account securities	1,987		—		1,987		—
Mortgage loans held-for-sale	382,837		—		382,837		—
Loans held-for-investment	30,173		—		—		30,173
MSRs	27,307		—		—		27,307
Nonqualified deferred compensation assets	10,556		—		10,556		—
Derivative assets	49,703		—		48,656		1,047
Total	$	2,152,199	$	—	$	2,012,221	$	139,978
Derivative liabilities	$	37,651	$	—	$	37,651	$	—



	December 31, 2016
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	141,983	$	—	$	141,983	$	—
U.S. Government agencies	189,152		—		189,152		—
Municipal	131,809		—		52,183		79,626
Corporate notes	65,391		—		65,391		—
Mortgage-backed	1,161,084		—		1,161,084		—
Equity securities	35,248		—		35,248		—
Trading account securities	1,989		—		1,989		—
Mortgage loans held-for-sale	418,374		—		418,374		—
Loans held-for-investment	22,137		—		—		22,137
MSRs	19,103		—		—		19,103
Nonqualified deferred compensation assets	9,228		—		9,228		—
Derivative assets	56,394		—		54,103		2,291
Total	$	2,251,892	$	—	$	2,128,735	$	123,157
Derivative liabilities	$	39,839	$	—	$	39,839	$	—



	June 30, 2016
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Available-for-sale securities
U.S. Treasury	$	122,330	$	—	$	122,330	$	—
U.S. Government agencies	69,916		—		69,916		—
Municipal	111,640		—		41,828		69,812
Corporate notes	69,690		—		69,690		—
Mortgage-backed	207,508		—		207,508		—
Equity securities	56,579		—		31,392		25,187
Trading account securities	3,613		—		3,613		—
Mortgage loans held-for-sale	554,256		—		554,256		—
Loans held-for-investment	16,294		—		16,294		—
MSRs	13,382		—		—		13,382
Nonqualified deferred compensation assets	9,076		—		9,076		—
Derivative assets	101,052		—		91,321		9,731
Total	$	1,335,336	$	—	$	1,217,224	$	118,112
Derivative liabilities	$	100,912	$	—	$	100,912	$	—

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 six months ended June 30, 2017 and 2016 are summarized as follows:



				Equity securities		U.S. Government Agencies			Loans held-for- investment			Mortgage servicing rights		Derivative Assets
(Dollars in thousands)	Municipal			Equity securities		U.S. Government Agencies			Loans held-for- investment			Mortgage servicing rights		Derivative Assets
Balance at April 1, 2017	$	79,745		$	—	$	4,283		$	28,548		$	21,596	$	3,582
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—		—			1,304			5,711		(2,535		)
Other comprehensive income (loss)	2,572			—		(173		)	—			—		—
Purchases	3,293			—		—			—			—		—
Issuances	—			—		—			—			—		—
Sales	—			—		—			—			—		—
Settlements	(8,269		)	—		—			(2,159		)	—		—
Net transfers into/(out of) Level 3	—			—		—			2,480			—		—
Balance at June 30, 2017	$	77,341		$	—	$	4,110		$	30,173		$	27,307	$	1,047


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



				Equity securities		U.S. Government Agencies			Loans held-for- investment			Mortgage servicing rights		Derivative Assets
(Dollars in thousands)	Municipal			Equity securities		U.S. Government Agencies			Loans held-for- investment			Mortgage servicing rights		Derivative Assets
Balance at January 1, 2017	$	79,626		$	—	$	—		$	22,137		$	19,103	$	2,291
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—		—			1,192			8,204		(1,244		)
Other comprehensive income (loss)	3,029			—		(173		)	—			—		—
Purchases	10,879			—		—			—			—		—
Issuances	—			—		—			—			—		—
Sales	—			—		—			—			—		—
Settlements	(16,193		)	—		—			(5,491		)	—		—
Net transfers into/(out of) Level 3	—			—		4,283			12,335			—		—
Balance at June 30, 2017	$	77,341		$	—	$	4,110		$	30,173		$	27,307	$	1,047



				Equity securities		U.S. Government Agencies		Loans held-for- investment		Mortgage servicing rights		Derivative Assets
(Dollars in thousands)	Municipal			Equity securities		U.S. Government Agencies		Loans held-for- investment		Mortgage servicing rights		Derivative Assets
Balance at April 1, 2016	$	70,242		$	24,054	$	—	$	—	$	10,128	$	9,917
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—		—		—		3,254		(186		)
Other comprehensive income	113			1,133		—		—		—		—
Purchases	1,003			—		—		—		—		—
Issuances	—			—		—		—		—		—
Sales	—			—		—		—		—		—
Settlements	(1,546		)	—		—		—		—		—
Net transfers into/(out of) Level 3	—			—		—		—		—		—
Balance at June 30, 2016	$	69,812		$	25,187	$	—	$	—	$	13,382	$	9,731



				Equity securities			U.S. Government Agencies		Loans held-for- investment		Mortgage servicing rights		Derivative Assets
(Dollars in thousands)	Municipal			Equity securities			U.S. Government Agencies		Loans held-for- investment		Mortgage servicing rights		Derivative Assets
Balance at January 1, 2016	$	68,613		$	25,199		$	—	$	—	$	9,092	$	7,021
Total net gains (losses) included in:
Net income ⁽¹⁾	—			—			—		—		4,290		2,710
Other comprehensive income (loss)	100			(12		)	—		—		—		—
Purchases	4,274			—			—		—		—		—
Issuances	—			—			—		—		—		—
Sales	—			—			—		—		—		—
Settlements	(3,175		)	—			—		—		—		—
Net transfers into/(out of) Level 3	—			—			—		—		—		—
Balance at June 30, 2016	$	69,812		$	25,187		$	—	$	—	$	13,382	$	9,731


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

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 June 30, 2017.



	June 30, 2017								Three Months Ended June 30, 2017 Fair Value Losses Recognized, net		Six Months Ended June 30, 2017 Fair Value Losses Recognized, net
(Dollars in thousands)	Total		Level 1		Level 2		Level 3
Impaired loans—collateral based	$	57,259	$	—	$	—	$	57,259	$	4,609	$	6,330
Other real estate owned, including covered other real estate owned ⁽¹⁾	42,617		—		—		42,617		265		1,270
Total	$	99,876	$	—	$	—	$	99,876	$	4,874	$	7,600


(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 June 30, 2017 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

77,341

Bond pricing

Equivalent rating

BBB-AA+

N/A

Increase

U.S. Government agencies

4,110

Bond pricing

Equivalent rating

AAA

Increase

Loans held-for-investment

30,173

Discounted cash flows

Discount rate

3%-4%

3.70%

Decrease

Credit loss rate

0%-3%

0.89%

Decrease

Constant prepayment rate (CPR)

9.42%

Decrease

MSRs

27,307

Discounted cash flows

Discount rate

9%-16%

9.81%

Decrease

Constant prepayment rate (CPR)

0%-34%

9.64%

Decrease

Cost of servicing

$65-$75

Decrease

Cost of servicing - delinquent

$200-$1,000

422

Decrease

Derivatives

1,047

Discounted cash flows

Pull-through rate

40%-100%

89.79%

Increase

Measured at fair value on a non-recurring basis:

Impaired loans—collateral based

57,259

Appraisal value

Appraisal adjustment - cost of sale

10%

10.00%

Decrease

Other real estate owned, including covered other real estate owned

42,617

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 June 30, 2017				At December 31, 2016				At June 30, 2016
	Carrying		Fair		Carrying		Fair		Carrying		Fair
(Dollars in thousands)	Value		Value		Value		Value		Value		Value
Financial Assets:
Cash and cash equivalents	$	296,161	$	296,161	$	270,045	$	270,045	$	271,575	$	271,575
Interest bearing deposits with banks	1,011,635		1,011,635		980,457		980,457		693,269		693,269
Available-for-sale securities	1,649,636		1,649,636		1,724,667		1,724,667		637,663		637,663
Held-to-maturity securities	793,376		787,489		635,705		607,602		992,211		1,010,179
Trading account securities	1,987		1,987		1,989		1,989		3,613		3,613
FHLB and FRB stock, at cost	80,812		80,812		133,494		133,494		121,319		121,319
Brokerage customer receivables	23,281		23,281		25,181		25,181		26,866		26,866
Mortgage loans held-for-sale, at fair value	382,837		382,837		418,374		418,374		554,256		554,256
Loans held-for-investment, at fair value	30,173		30,173		22,137		22,137		16,294		16,294
Loans held-for-investment, at amortized cost	20,763,278		21,921,002		19,739,180		20,755,320		18,263,609		19,212,397
MSRs	27,307		27,307		19,103		19,103		13,382		13,382
Nonqualified deferred compensation assets	10,556		10,556		9,228		9,228		9,076		9,076
Derivative assets	49,703		49,703		56,394		56,394		101,052		101,052
Accrued interest receivable and other	215,291		215,291		204,513		204,513		198,017		198,017
Total financial assets	$	25,336,033	$	26,487,870	$	24,240,467	$	25,228,504	$	21,902,202	$	22,868,958
Financial Liabilities
Non-maturity deposits	$	18,086,300	$	18,086,300	$	17,383,729	$	17,383,729	$	15,958,500	$	15,958,500
Deposits with stated maturities	4,519,392		4,503,645		4,274,903		4,263,576		4,083,250		4,086,350
FHLB advances	318,270		316,799		153,831		157,051		588,055		597,568
Other borrowings	277,710		277,710		262,486		262,486		252,611		252,611
Subordinated notes	139,029		143,126		138,971		135,268		138,915		141,858
Junior subordinated debentures	253,566		253,330		253,566		254,384		253,566		254,143
Derivative liabilities	37,651		37,651		39,839		39,839		100,912		100,912
FDIC indemnification liability	15,375		15,375		16,701		16,701		11,729		11,729
Accrued interest payable	6,460		6,460		6,421		6,421		6,175		6,175
Total financial liabilities	$	23,653,753	$	23,640,396	$	22,530,447	$	22,519,455	$	21,393,713	$	21,409,846