Fair Value (Tables)

3 Months Ended

Mar. 31, 2016

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 March 31, 2016 and December 31, 2015, 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, 2016 and the year ended December 31, 2015.

	March 31, 2016
	Total		Level 1		Level 2		Level 3
U.S. Government agency obligations	$	64,100	$	—	$	64,100	$	—
Obligations of states and political subdivisions		135,655		—		135,655		—
Mortgage-backed securities		2,168,365		—		2,168,365		—
Securities available for sale		2,368,120		—		2,368,120		—
Loans held for sale		191,028		—		191,028		—
Mortgage servicing rights		68,208		—		—		68,208
Other assets - derivatives		8,591		699		4,608		3,284
Other liabilities - derivatives		8,353		151		8,202		—

	December 31, 2015
	Total		Level 1			Level 2		Level 3
U.S. Government agency obligations	$	68,416	$	—		$	68,416	$	—
Obligations of states and political subdivisions		138,609		—			138,609		—
Mortgage-backed securities		2,113,440		—			2,113,440		—
Asset-backed securities and structured financial products		24,957		—			24,957		—
Securities available for sale		2,345,422		—			2,345,422		—
Loans held for sale		160,189		—			160,189		—
Mortgage servicing rights		74,007		—			—		74,007
Other assets - derivatives		3,611		(149	)		2,647		1,113
Other liabilities - derivatives		3,929		1,220			2,709		—

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, 2016 and 2015 are summarized as follows ($ in thousands):

	MSR			Other Assets - Derivatives
Balance, January 1, 2016	$	74,007		$	1,113
Total net (loss) gain included in Mortgage banking, net (1)		(8,871	)		3,097
Additions		3,072			—
Sales		—			(926	)
Balance, March 31, 2016	$	68,208		$	3,284

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 March 31, 2016	$	(6,866	)	$	398

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	)

(1)	Total net (loss) gain included in Mortgage banking, net relating to the 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, 2016 and December 31, 2015, are as follows ($ in thousands):

	March 31, 2016				December 31, 2015
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets:
Level 2 Inputs:
Cash and short-term investments	$	228,498	$	228,498	$	278,001	$	278,001
Securities held to maturity		1,168,203		1,199,213		1,187,818		1,195,367
Level 3 Inputs:
Net LHFI		7,198,354		7,337,520		7,023,766		7,136,105
Net acquired loans		351,220		351,220		378,419		378,419
FDIC indemnification asset		506		506		738		738

Financial Liabilities:
Level 2 Inputs:
Deposits		9,633,643		9,638,119		9,588,230		9,592,531
Short-term liabilities		877,821		877,821		853,659		853,659
Long-term FHLB advances		501,124		507,128		501,155		501,160
Subordinated notes		49,977		51,279		49,969		51,405
Junior subordinated debt securities		61,856		43,299		61,856		49,021

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, 2016 and December 31, 2015 ($ in thousands):

	March 31, 2016		December 31, 2015
Fair value of LHFS	$	156,170	$	124,165
LHFS contractual principal outstanding		150,264		121,608
Fair value less unpaid principal	$	5,906	$	2,557