Fair Value (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017 and 2016, 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, 2017 and 2016.

	December 31, 2017
	Total		Level 1			Level 2		Level 3
U.S. Government agency obligations	$	45,285	$	—		$	45,285	$	—
Obligations of states and political subdivisions		79,229		—			79,229		—
Mortgage-backed securities		2,114,121		—			2,114,121		—
Securities available for sale		2,238,635		—			2,238,635		—
Loans held for sale		180,512		—			180,512		—
Mortgage servicing rights		84,269		—			—		84,269
Other assets - derivatives		1,516		(1,013	)		1,629		900
Other liabilities - derivatives		2,678		616			2,062		—

	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	)		—

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, 2017 and 2016 are summarized as follows ($ in thousands):

	MSR			Other Assets - Derivatives
Balance, January 1, 2017	$	80,239		$	1,001
Total net (loss) gain included in Mortgage banking, net (1)		(11,830	)		4,165
Additions		15,860			—
Sales		—			(4,266	)
Balance, December 31, 2017	$	84,269		$	900

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, 2017	$	(1,050	)	$	(1,569	)

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 gains (losses) 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

(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, 2017 and 2016 were as follows ($ in thousands):

	December 31, 2017				December 31, 2016
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets:
Level 2 Inputs:
Cash and short-term investments	$	336,383	$	336,383	$	328,206	$	328,206
Securities held to maturity		1,056,486		1,046,247		1,158,643		1,157,046
Level 3 Inputs:
Net LHFI		8,493,234		8,507,469		7,779,948		7,825,009
Net acquired loans		257,438		257,438		260,850		260,850

Financial Liabilities:
Level 2 Inputs:
Deposits		10,577,512		10,577,858		10,056,012		10,059,794
Short-term liabilities		1,440,876		1,440,876		1,309,595		1,309,595
Long-term FHLB advances		946		946		251,049		251,050
Junior subordinated debt securities		61,856		45,773		61,856		41,057

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, 2017 and 2016 ($ in thousands):

	December 31,
	2017		2016
Fair value of LHFS	$	132,300	$	132,002
LHFS contractual principal outstanding		129,347		132,047
Fair value less unpaid principal	$	2,953	$	(45	)