Fair Value (Tables)

6 Months Ended

Jun. 30, 2018

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, 2018 and December 31, 2017, 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, 2018 and the year ended December 31, 2017.

	June 30, 2018
	Total		Level 1		Level 2		Level 3
U.S. Government agency obligations	$	36,414	$	—	$	36,414	$	—
Obligations of states and political subdivisions		65,348		—		65,348		—
Mortgage-backed securities		1,872,913		—		1,872,913		—
Securities available for sale		1,974,675		—		1,974,675		—
Loans held for sale		196,217		—		196,217		—
Mortgage servicing rights		97,411		—		—		97,411
Other assets - derivatives		5,575		1,344		2,779		1,452
Other liabilities - derivatives		4,936		373		4,563		—

	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		—

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, 2018 and 2017 are summarized as follows ($ in thousands):

	MSR			Other Assets - Derivatives
Balance, January 1, 2018	$	84,269		$	900
Total net (loss) gain included in Mortgage banking, net (1)		5,423			2,698
Additions		7,719			—
Sales		—			(2,146	)
Balance, June 30, 2018	$	97,411		$	1,452

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, 2018	$	11,264		$	327

Balance, January 1, 2017	$	80,239		$	1,001
Total net (loss) gain included in Mortgage banking, net (1)		(5,108	)		2,577
Additions		7,497			—
Sales		—			(2,580	)
Balance, June 30, 2017	$	82,628		$	998

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, 2017	$	175		$	(572	)

(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 June 30, 2018 and December 31, 2017, are as follows ($ in thousands):

	June 30, 2018				December 31, 2017
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial Assets:
Level 2 Inputs:
Cash and short-term investments	$	387,119	$	387,119	$	336,383	$	336,383
Securities held to maturity		985,845		954,638		1,056,486		1,046,247
Level 3 Inputs:
Net LHFI		8,595,417		8,513,506		8,493,234		8,507,469
Net acquired loans		170,061		170,061		257,438		257,438

Financial Liabilities:
Level 2 Inputs:
Deposits		11,072,435		11,069,067		10,577,512		10,577,858
Short-term liabilities		664,538		664,538		1,440,876		1,440,876
Long-term FHLB advances		913		847		946		946
Junior subordinated debt securities		61,856		52,578		61,856		45,773

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, 2018 and December 31, 2017 ($ in thousands):

	June 30, 2018		December 31, 2017
Fair value of LHFS	$	151,592	$	132,300
LHFS contractual principal outstanding		147,955		129,347
Fair value less unpaid principal	$	3,637	$	2,953