Fair Value (Tables)

6 Months Ended

Jun. 30, 2015

Financial assets and liabilities measured at fair value recurring basis

The following tables summarize financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 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 six months ended June 30, 2015 and the year ended December 31, 2014.

	June 30, 2015
	Total		Level 1			Level 2		Level 3
U.S. Government agency obligations	$	107,418	$	-		$	107,418	$	-
Obligations of states and political subdivisions		151,322		-			151,322		-
Mortgage-backed securities		2,159,176		-			2,159,176		-
Asset-backed securities and structured financial products		28,467		-			28,467		-
Securities available for sale		2,446,383		-			2,446,383		-
Loans held for sale		147,539		-			147,539		-
Mortgage servicing rights		71,422		-			-		71,422
Other assets - derivatives		3,992		(309	)		2,680		1,621
Other liabilities - derivatives		1,508		742			766		-

	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 six months ended June 30, 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)		(1,093	)		3,715
Additions		8,157			-
Sales		-			(3,393	)
Balance, June 30, 2015	$	71,422		$	1,621

The amount of total gains (losses) for the period included in earnings that are attributable to the change in unrealized gains or losses still held at June 30, 2015	$	3,708		$	(564	)

Balance, January 1, 2014	$	67,834		$	126
Total net (loss) gain included in Mortgage banking, net (1)		(7,964	)		2,493
Additions		5,179			-
Sales		-			(410	)
Balance, June 30, 2014	$	65,049		$	2,209

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 June 30, 2014	$	(3,761	)	$	(594	)

(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 June 30, 2015 and December 31, 2014, are as follows ($ in thousands):

	June 30, 2015				December 31, 2014
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets:
Level 2 Inputs:
Cash and short-term investments	$	255,050	$	255,050	$	317,858	$	317,858
Securities held to maturity		1,190,161		1,200,217		1,170,685		1,182,846
Level 3 Inputs:
Net LHFI		6,375,907		6,431,470		6,379,853		6,453,618
Net acquired loans		453,770		453,770		537,350		537,350
FDIC indemnification asset		2,632		2,632		6,997		6,997

Financial Liabilities:
Level 2 Inputs:
Deposits		9,792,174		9,797,257		9,698,358		9,702,864
Short-term liabilities		679,206		679,206		868,620		868,620
Long-term FHLB advances		1,204		1,211		1,253		1,263
Subordinated notes		49,953		52,626		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 June 30, 2015 and December 31, 2014 ($ in thousands):

	June 30, 2015		December 31, 2014
Fair value of LHFS	$	128,329	$	91,182
LHFS contractual principal outstanding		126,627		88,106
Fair value less unpaid principal	$	1,702	$	3,076