Fair Value (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2014 and 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 years ended December 31, 2014 and 2013.

	December 31, 2014
	Total		Level 1		Level 2		Level 3
U.S. Treasury securities	$	100	$	-	$	100	$	-
U.S. Government agency obligations		112,474		-		112,474		-
Obligations of states and political subdivisions		162,258		-		162,258		-
Mortgage-backed securities		2,068,035		-		2,068,035		-
Asset-backed securities and structured financial products		31,700		-		31,700		-
Securities available for sale		2,374,567		-		2,374,567		-
Loans held for sale		132,196		-		132,196		-
Mortgage servicing rights		64,358		-		-		64,358
Other assets - derivatives		5,527		1,181		3,047		1,299
Other liabilities - derivatives		4,338		490		3,848		-

	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 years ended December 31, 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)		(15,769	)		4,554
Additions		12,293			-
Sales		-			(3,381	)
Balance, December 31, 2014	$	64,358		$	1,299

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 December 31, 2014	$	(7,202	)	$	587

Balance, January 1, 2013	$	47,341		$	2,284
Total net gains included in Mortgage banking, net (1)		2,012			7,754
Additions		18,481			-
Sales		-			(9,912	)
Balance, December 31, 2013	$	67,834		$	126

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 December 31, 2013	$	11,818		$	735

(1)	Total net (losses) gains included in Mortgage banking, net 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 December 31, 2014 and 2013, were as follows ($ in thousands):

	2014				2013
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Financial Assets:
Level 2 Inputs:
Cash and short-term investments	$	317,858	$	317,858	$	353,014	$	353,014
Securities held to maturity		1,170,685		1,182,846		1,168,728		1,150,833
Level 3 Inputs:
Net LHFI		6,379,853		6,453,618		5,732,433		5,787,408
Net acquired loans		537,350		537,350		794,570		794,570
FDIC indemnification asset		6,997		6,997		14,347		14,347

Financial Liabilities:
Level 2 Inputs:
Deposits		9,698,358		9,702,864		9,859,902		9,866,118
Short-term liabilities		868,620		868,620		317,972		317,972
Long-term FHLB advances		1,253		1,263		8,458		8,474
Subordinated notes		49,936		53,504		49,904		53,387
Junior subordinated debt securities		61,856		46,392		61,856		40,206

Fair value and the contractual principal outstanding of the LHFS

The following table provides information about the fair value and the contractual principal outstanding of the LHFS accounted for under the fair value options as of December 31, 2014 ($ in thousands):

	December 31, 2014
Fair value of LHFS	$	91,182
LHFS contractual principal outstanding		88,106
Fair value less unpaid principal	$	3,076

- 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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