Fair Value (Tables)

9 Months Ended

Sep. 30, 2014

Financial assets and liabilities measured at fair value recurring basis

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value ($ in thousands). There were no transfers between fair value levels for the nine months ended September 30, 2014 and the year ended December 31, 2013.

	September 30, 2014
	Total		Level 1			Level 2		Level 3
U.S. Treasury securities	$	100	$	-		$	100	$	-
U.S. Government agency obligations		113,790		-			113,790		-
Obligations of states and political subdivisions		165,463		-			165,463		-
Mortgage-backed securities		2,051,027		-			2,051,027		-
Asset-backed securities and structured financial products		33,515		-			33,515		-
Securities available for sale		2,363,895		-			2,363,895		-
Loans held for sale		135,562		-			135,562		-
Mortgage servicing rights		67,090		-			-		67,090
Other assets - derivatives		5,034		(500	)		4,194		1,340
Other liabilities - derivatives		3,746		181			3,565		-

	December 31, 2013
	Total		Level 1			Level 2		Level 3
U.S. Treasury securities	$	502	$	-		$	502	$	-
U.S. Government agency obligations		169,472		-			169,472		-
Obligations of states and political subdivisions		171,738		-			171,738		-
Mortgage-backed securities		1,788,505		-			1,788,505		-
Asset-backed securities and structured financial products		63,937		-			63,937		-
Securities available for sale		2,194,154		-			2,194,154		-
Loans held for sale		149,169		-			149,169		-
Mortgage servicing rights		67,834		-			-		67,834
Other assets - derivatives		4,994		(2,579	)		7,447		126
Other liabilities - derivatives		3,298		581			2,717		-

Changes in level 3 assets measured at fair value on a recurring basis

The changes in Level 3 assets measured at fair value on a recurring basis for the periods ended September 30, 2014 and 2013 are summarized as follows ($ in thousands):

	MSR			Other Assets - Derivatives
Balance, January 1, 2014	$	67,834		$	126
Total net (losses) gains included in Mortgage banking, net (1)		(9,628	)		3,508
Additions		8,884			-
Sales		-			(2,294	)
Balance, September 30, 2014	$	67,090		$	1,340

The amount of total (losses) gains for the period included in earnings that are attributable to the change in unrealized gains or losses still held at September 30, 2014	$	(3,060	)	$	807

Balance, January 1, 2013	$	47,341		$	2,284
Total net gains included in Mortgage banking, net (1)		258			7,558
Additions		15,551			-
Sales		-			(7,795	)
Balance, September 30, 2013	$	63,150		$	2,047

The amount of total gains for the period included in earnings that are attributable to the change in unrealized gains or losses still held at September 30, 2013	$	7,881		$	954

(1) Total net (losses) gains included in net income relating to MSR includes changes in fair value due to market changes and due to runoff.

Carrying amounts and estimated fair values of financial instruments

The carrying amounts and estimated fair values of financial instruments at September 30, 2014 and December 31, 2013, are as follows ($ in thousands):

	September 30, 2014				December 31, 2013
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets:
Level 2 Inputs:
Cash and short-term investments	$	241,510	$	241,510	$	353,014	$	353,014
Securities held to maturity		1,169,640		1,170,213		1,168,728		1,150,833
Level 3 Inputs:
Net LHFI		6,263,517		6,348,938		5,732,433		5,787,408
Net acquired loans		580,200		580,200		794,570		794,570
FDIC indemnification asset		8,154		8,154		14,347		14,347

Financial Liabilities:
Level 2 Inputs:
Deposits		9,513,225		9,518,584		9,859,902		9,866,118
Short-term liabilities		924,517		924,517		317,972		317,972
Long-term FHLB advances		8,003		8,014		8,458		8,474
Subordinated notes		49,928		53,665		49,904		53,387
Junior subordinated debt securities		61,856		46,392		61,856		40,206

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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