Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2018

Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present the assets and liabilities measured at fair value on a recurring basis:



March 31, 2018	Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Assets:
U.S. Government agencies and sponsored enterprises obligations	$	—	$	90,010	$	—	$	90,010
U.S. Government agencies and sponsored enterprises mortgage-backed securities	—		596,436		—		596,436
State and municipal obligations	—		25,036		—		25,036
Asset-backed securities	—		671,609		—		671,609
Corporate bonds and other debt securities	56,321		741,158		—		797,479
Preferred stocks and other equity securities	12,754		75,722		—		88,476
Derivative assets - Interest rate contracts	—		15,352		—		15,352
Total	$	69,075	$	2,215,323	$	—	$	2,284,398
Liabilities:
Derivative liabilities - Interest rate contracts	$	—	$	16,839	$	—	$	16,839
Total	$	—	$	16,839	$	—	$	16,839



December 31, 2017	Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
Assets:
U.S. Government agencies and sponsored enterprises obligations	$	—	$	42,838	$	—	$	42,838
U.S. Government agencies and sponsored enterprises mortgage-backed securities	—		595,237		—		595,237
State and municipal obligations	—		26,172		—		26,172
Asset-backed securities	—		610,546		—		610,546
Corporate bonds and other debt securities	55,970		699,933		—		755,903
Preferred stocks and other equity securities	12,954		77,153		—		90,107
Derivative assets - Interest rate contracts	—		11,833		—		11,833
Total	$	68,924	$	2,063,712	$	—	$	2,132,636
Liabilities:
Derivative liabilities - Interest rate contracts	$	—	$	11,833	$	—	$	11,833
Total	$	—	$	11,833	$	—	$	11,833

Significant Unobservable Inputs in Fair Value Measurement Level 3 Assets and Liabilities

The following table shows significant unobservable inputs used in the non-recurring fair value measurement of level 3 assets and liabilities:



Level 3 Assets:	March 31, 2018		December 31, 2017		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
(Dollars in thousands)
Impaired loans	$	5,533	$	6,153	Third party appraisals and discounted cash flows	Collateral discounts and discount rates	0% - 100% (8.5%)
Other real estate owned	14,072		14,906		Third party appraisals	Collateral discounts and estimated cost to sell	10	%

Schedule of Carrying Amounts and Estimated Fair Values, as well as the Level within the Fair Value Hierarchy

The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments are as follows:



March 31, 2018	Carrying Value		Fair Value		Level 1		Level 2		Level 3
	(Dollars in thousands)
Financial Assets:
Cash and cash equivalents	$	149,025	$	149,025	$	149,025	$	—	$	—
Available for sale debt securities	2,180,570		2,180,570		56,321		2,124,249		—
Preferred stocks and other equity securities	88,476		88,476		12,754		75,722		—
FHLB and other bank stock	58,184		58,184		—		58,184		—
Loans, net	8,655,179		8,584,396		—		—		8,584,396
Loans held for sale	4,167		4,167		—		4,167		—
Bank-owned life insurance	212,925		212,925		—		212,925		—
Derivative assets	15,352		15,352		—		15,352		—

Financial Liabilities:
Deposits	$	9,486,276	$	9,471,692	$	—	$	9,471,692	$	—
Advances from the FHLB and other borrowings	753,921		744,342		—		744,342		—
Derivative liabilities	16,839		16,839		—		16,839		—



December 31, 2017	Carrying Value		Fair Value		Level 1		Level 2		Level 3
	(Dollars in thousands)
Financial Assets:
Cash and cash equivalents	$	115,921	$	115,921	$	115,921	$	—	$	—
Available for sale debt securities	2,030,696		2,130,696		55,970		1,974,726		—
Preferred stocks and other equity securities	90,107		90,107		12,954		77,153		—
FHLB and other bank stock	56,881		56,881		—		56,881		—
Loans, net	7,930,639		7,877,094		—		—		7,877,094
Loans held for sale	12,736		12,736		—		12,736		—
Bank-owned life insurance	201,069		201,069		—		201,069		—
Derivative assets	11,833		11,833		—		11,833		—

Financial Liabilities:
Deposits	$	8,673,927	$	8,664,125	$	—	$	8,664,125	$	—
Advances from the FHLB and other borrowings	749,113		740,941		—		740,941		—
Derivative liabilities	11,833		11,833		—		11,833		—