Fair Value (Tables)

12 Months Ended

Dec. 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 December 31, 2016 and 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 years ended December 31, 2016 and 2015.

	December 31, 2016
	Total		Level 1			Level 2			Level 3
U.S. Government agency obligations	$	56,039	$	—		$	56,039		$	—
Obligations of states and political subdivisions		115,373		—			115,373			—
Mortgage-backed securities		2,185,270		—			2,185,270			—
Securities available for sale		2,356,682		—			2,356,682			—
Loans held for sale		175,927		—			175,927			—
Mortgage servicing rights		80,239		—			—			80,239
Other assets - derivatives		2,518		(524	)		2,041			1,001
Other liabilities - derivatives		412		1,174			(762	)		—

	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 years ended December 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)		(10,513	)		10,128
Additions		16,745			—
Sales		—			(10,240	)
Balance, December 31, 2016	$	80,239		$	1,001

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, 2016	$	(407	)	$	753

Balance, January 1, 2015	$	64,358		$	1,299
Total net (loss) gain included in Mortgage banking, net (1)		(7,949	)		6,900
Additions		17,598			—
Sales		—			(7,086	)
Balance, December 31, 2015	$	74,007		$	1,113

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 December 31, 2015	$	1,578		$	(419	)

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

	December 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	$	328,206	$	328,206	$	278,001	$	278,001
Securities held to maturity		1,158,643		1,157,046		1,187,818		1,195,367
Level 3 Inputs:
Net LHFI		7,779,948		7,825,009		7,023,766		7,136,105
Net acquired loans		260,850		260,850		378,419		378,419
FDIC indemnification asset		—		—		738		738

Financial Liabilities:
Level 2 Inputs:
Deposits		10,056,012		10,059,794		9,588,230		9,592,531
Short-term liabilities		1,309,595		1,309,595		853,659		853,659
Long-term FHLB advances		251,049		251,050		501,155		501,160
Subordinated notes		—		—		49,969		51,405
Junior subordinated debt securities		61,856		41,057		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 December 31, 2016 and 2015 ($ in thousands):

	December 31,
	2016			2015
Fair value of LHFS	$	132,002		$	124,165
LHFS contractual principal outstanding		132,047			121,608
Fair value less unpaid principal	$	(45	)	$	2,557