Fair Value (Tables)

3 Months Ended

Mar. 31, 2015

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 March 31, 2015 and December 31, 2014, 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 three months ended March 31, 2015 and the year ended December 31, 2014.

	March 31, 2015
	Total		Level 1		Level 2		Level 3
U.S. Government agency obligations	$	111,191	$	-	$	111,191	$	-
Obligations of states and political subdivisions		160,154		-		160,154		-
Mortgage-backed securities		2,080,016		-		2,080,016		-
Asset-backed securities and structured financial products		30,098		-		30,098		-
Securities available for sale		2,381,459		-		2,381,459		-
Loans held for sale		150,365		-		150,365		-
Mortgage servicing rights		62,903		-		-		62,903
Other assets - derivatives		7,814		1,908		3,318		2,588
Other liabilities - derivatives		6,326		917		5,409		-

	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		-

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 three months ended March 31, 2015 and 2014 are summarized as follows ($ in thousands):

	MSR			Other Assets - Derivatives
Balance, January 1, 2015	$	64,358		$	1,299
Total net (loss) gain included in Mortgage banking, net (1)		(4,581	)		2,410
Additions		3,126			-
Sales		-			(1,121	)
Balance, March 31, 2015	$	62,903		$	2,588

The amount of total losses for the period included in earnings that are attributable to the change in unrealized gains or losses still held at March 31, 2015	$	(2,368	)	$	(34	)

Balance, January 1, 2014	$	67,834		$	126
Total net (loss) gain included in Mortgage banking, net (1)		(2,535	)		802
Additions		2,315			-
Sales		-			(112	)
Balance, March 31, 2014	$	67,614		$	816

The amount of total losses for the period included in earnings that are attributable to the change in unrealized gains or losses still held at March 31, 2014	$	(723	)	$	(96	)

(1)	Total net (loss) gain included in Mortgage banking, net relating to MSR includes changes in fair value due to market changes and due to run-off.

Carrying amounts and estimated fair values of financial instruments

The carrying amounts and estimated fair values of financial instruments at March 31, 2015 and December 31, 2014, are as follows ($ in thousands):

	March 31, 2015				December 31, 2014
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets:
Level 2 Inputs:
Cash and short-term investments	$	335,244	$	335,244	$	317,858	$	317,858
Securities held to maturity		1,184,554		1,212,505		1,170,685		1,182,846
Level 3 Inputs:
Net LHFI		6,342,555		6,411,826		6,379,853		6,453,618
Net acquired loans		486,606		486,606		537,350		537,350
FDIC indemnification asset		4,743		4,743		6,997		6,997

Financial Liabilities:
Level 2 Inputs:
Deposits		9,906,990		9,911,477		9,698,358		9,702,864
Short-term liabilities		573,757		573,757		868,620		868,620
Long-term FHLB advances		1,222		1,231		1,253		1,263
Subordinated notes		49,944		53,063		49,936		53,504
Junior subordinated debt securities		61,856		46,392		61,856		46,392

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 option as of March 31, 2015 and December 31, 2014 ($ in thousands):

	March 31, 2015		December 31, 2014
Fair value of LHFS	$	133,754	$	91,182
LHFS contractual principal outstanding		129,595		88,106
Fair value less unpaid principal	$	4,159	$	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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