Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Summary of assets measured at fair value on a recurring basis

s and liabilities measured at fair value on a recurring basis, quantitative disclosures about the fair value measurements for each major category of assets and liabilities follow:



(Dollars in thousands)	Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
December 31, 2017
Investment securities — available-for-sale:
Government sponsored agencies	$	—	$	202,916	$	—	$	202,916
State and political subdivisions	—		345,970		—		345,970
Mortgage-backed securities	—		150,131		—		150,131
Collateralized mortgage obligations	—		1,033,845		—		1,033,845
Corporate bonds	—		192,794		—		192,794
Preferred stock and trust preferred securities	—		37,890		—		37,890
Total investment securities — available-for-sale	—		1,963,546		—		1,963,546
Loans held-for-sale	—		52,133		—		52,133
Loan servicing rights	—		—		63,841		63,841
Derivative assets:
Customer-initiated derivatives	—		9,376		—		9,376
Interest rate lock commitments	—		1,222		—		1,222
Power Equity CD	—		2,184		—		2,184
Risk management derivatives	—		5,899		—		5,899
Total derivatives	—		18,681		—		18,681
Total assets at fair value	$	—	$	2,034,360	$	63,841	$	2,098,201
Derivative liabilities:
Customer-initiated derivatives	$	—	$	10,139	$	—	$	10,139
Forward contracts related to mortgage loans to be delivered for sale	—		34		—		34
Power Equity CD	—		2,184		—		2,184
Total derivatives	—		12,357		—		12,357
Total liabilities at fair value	$	—	$	12,357	$	—	$	12,357



(Dollars in thousands)	Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
December 31, 2016
Investment securities — available-for-sale:
U.S. Treasury securities	$	5,793	$	—	$	—	$	5,793
Government sponsored agencies	—		215,011		—		215,011
State and political subdivisions	—		300,088		—		300,088
Residential mortgage-backed securities	—		272,282		—		272,282
Collateralized mortgage obligations	—		320,025		—		320,025
Corporate bonds	—		89,474		—		89,474
Preferred stock and trust preferred securities	—		32,291		—		32,291
Total investment securities — available-for-sale	5,793		1,229,171		—		1,234,964
Loans held-for-sale	—		81,830		—		81,830
Loan servicing rights	—		—		48,085		48,085
Derivative assets:
Customer-initiated derivatives	—		4,406		—		4,406
Forward contracts related to mortgage loans to be delivered for sale	—		635		—		635
Interest rate lock commitments	—		956		—		956
Power Equity CD	—		2,218		—		2,218
Total derivatives	—		8,215		—		8,215
Total assets at fair value	$	5,793	$	1,319,216	$	48,085	$	1,373,094
Derivative liabilities:
Customer-initiated derivatives	—		4,141		—		4,141
Power Equity CD	—		2,218		—		2,218
Total derivatives	—		6,359		—		6,359
Total liabilities at fair value	$	—	$	6,359	$	—	$	6,359

There

Summary of changes in Level 3 assets measured at fair value on a recurring basis

wing table summarizes the changes in Level 3 assets measured at fair value on a recurring basis.



	Year Ended December 31,
	2017			2016
(Dollars in thousands)	Loan servicing rights
Balance, beginning of period	$	48,085		$	—
Additions due to acquisition	—			42,462
Transfer in based on new accounting policy election⁽¹⁾	15,891			—
Gains (losses):
Recorded in earnings (realized):
Recorded in "Net gain on sale of loans and other mortgage banking revenue"	(8,880		)	4,593
New originations	8,745			1,030
Balance, end of period	$	63,841		$	48,085


⁽¹⁾	Refe

Schedule of aggregate fair value contractual balance and gain (loss) for loans held-for-sale

gate fair value, contractual balance (including accrued interest), and gain or loss for loans held-for-sale carried at fair value option was as follows:



	December 31,
(Dollars in thousands)	2017		2016
Aggregate fair value	$	52,133	$	81,830
Contractual balance	50,597		81,009
Unrealized gain (loss)	1,536		821

The to

Amount of gains (losses) from loans held for sale included in the Consolidated Statements of Income

amount of gains (losses) from loans held-for-sale included in the Consolidated Statements of Income was as follows:



	Year Ended December 31,
(Dollars in thousands)	2017		2016		2015
Interest income⁽¹⁾	$	2,540	$	1,606	$	83
Change in fair value⁽²⁾	715		39		(61		)
Net gain on sales of loans⁽²⁾	31,734		15,686		6,354
Total included in earnings	$	34,989	$	17,331	$	6,376


⁽¹⁾	Included in "Interest and fees on loans" in the Consolidated Statements of Income.


⁽²⁾	Included in "Net gain on sale of loans and other mortgage banking revenue" in the Consolidated Statements of Income.

Assets

Summary of assets measured at fair value on a nonrecurring basis

s measured at fair value on a nonrecurring basis, quantitative disclosures about fair value measurements for each major category of assets follow:



(Dollars in thousands)	Significant Unobservable Inputs (Level 3)		Total
December 31, 2017
Impaired loans	$	70,619	$	70,619
Other real estate and repossessed assets	2,899		2,899
Total	$	73,518	$	73,518
December 31, 2016
Impaired loans	$	62,184	$	62,184
Other real estate and repossessed assets	1,386		1,386
Loan servicing rights	2		2
Total	$	63,572	$	63,572

There w

Additional information about significant unobservable inputs used in the fair value measurement of financial assets

wing table presents additional information about the significant unobservable inputs used in the fair value measurement of financial assets measured on a nonrecurring basis that were categorized within the Level 3 of the fair value hierarchy:



(Dollars in thousands)	Fair Value at December 31, 2017		Valuation Technique	Significant Unobservable Inputs	Range
Impaired loans	$	70,619	Appraisal of collateral	Discount for type of collateral and age of appraisal	20%-30%
Other real estate and repossessed assets	2,899		Appraisal of property	Discount for type of property and age of appraisal	20%-30%

Disclosu

Summary of carrying amounts and estimated fair values of the financial instruments

of carrying amounts and estimated fair values of the Corporation's financial instruments not recorded at fair value in their entirety on a recurring basis on the Consolidated Statements of Financial Position was as follows:



		December 31,
	Level in Fair Value Measurement Hierarchy	2017				2016
(Dollars in thousands)	Level in Fair Value Measurement Hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Cash and cash equivalents	Level 1	$	455,991	$	455,991	$	474,402	$	474,402
Investment securities:
Held-to-maturity	Level 2	676,593		662,516		622,927		608,221
Held-to-maturity	Level 3	500		390		500		310
Nonmarketable equity securities	Level 2	180,091		180,091		97,350		97,350
Net loans⁽¹⁾	Level 3	14,063,380		14,114,545		12,912,511		13,069,315
Interest receivable	Level 2	50,710		50,710		42,235		42,235
Bank-owned life insurance	Level 2	147,584		147,584		143,718		143,718
Financial liabilities:
Deposits:
Deposits without defined maturities	Level 2	$	10,425,596	$	10,425,596	$	9,862,755	$	9,862,755
Time deposits	Level 2	3,217,207		3,225,847		3,010,367		3,010,048
Total deposits		13,642,803		13,651,443		12,873,122		12,872,803
Interest payable	Level 2	6,329		6,329		5,415		5,415
Securities sold under agreements to repurchase with customers	Level 2	415,236		415,236		343,047		343,047
Short-term borrowings	Level 2	2,000,000		1,999,137		825,000		825,000
Long-term borrowings	Level 2	372,882		367,984		597,847		591,227


⁽¹⁾	Included $70.6 million and $62.2 million of impaired loans recorded at fair value on a nonrecurring basis at December 31, 2017 and 2016, respectively.