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Fair Value (Tables)
 6 Months Ended
Jun. 30, 2019
Fair Value Disclosures [Abstract]  
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, 2019 and December 31, 2018, 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, 2019 and the year ended December 31, 2018.

 

 

June 30, 2019

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

U.S. Government agency obligations

 

$

26,646

 

 

$

—

 

 

$

26,646

 

 

$

—

 

Obligations of states and political subdivisions

 

 

38,698

 

 

 

—

 

 

 

38,698

 

 

 

—

 

Mortgage-backed securities

 

 

1,578,381

 

 

 

—

 

 

 

1,578,381

 

 

 

—

 

Securities available for sale

 

 

1,643,725

 

 

 

—

 

 

 

1,643,725

 

 

 

—

 

Loans held for sale

 

 

240,380

 

 

 

—

 

 

 

240,380

 

 

 

—

 

Mortgage servicing rights

 

 

79,283

 

 

 

—

 

 

 

—

 

 

 

79,283

 

Other assets - derivatives

 

 

22,301

 

 

 

4,817

 

 

 

14,939

 

 

 

2,545

 

Other liabilities - derivatives

 

 

4,933

 

 

 

1,129

 

 

 

3,804

 

 

 

—

 

 

 

 

December 31, 2018

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

U.S. Government agency obligations

 

$

30,335

 

 

$

—

 

 

$

30,335

 

 

$

—

 

Obligations of states and political subdivisions

 

 

50,676

 

 

 

—

 

 

 

50,676

 

 

 

—

 

Mortgage-backed securities

 

 

1,730,802

 

 

 

—

 

 

 

1,730,802

 

 

 

—

 

Securities available for sale

 

 

1,811,813

 

 

 

—

 

 

 

1,811,813

 

 

 

—

 

Loans held for sale

 

 

153,799

 

 

 

—

 

 

 

153,799

 

 

 

—

 

Mortgage servicing rights

 

 

95,596

 

 

 

—

 

 

 

—

 

 

 

95,596

 

Other assets - derivatives

 

 

12,347

 

 

 

5,006

 

 

 

6,154

 

 

 

1,187

 

Other liabilities - derivatives

 

 

4,213

 

 

 

66

 

 

 

4,147

 

 

 

—

 
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, 2019 and 2018 are summarized as follows ($ in thousands):

 

 

MSR

 

 

Other Assets -

Derivatives

 

Balance, January 1, 2019

 

$

95,596

 

 

$

1,187

 

Total net (loss) gain included in Mortgage banking, net (1)

 

 

(22,388

)

 

 

3,889

 

Additions

 

 

6,075

 

 

 

—

 

Sales

 

 

—

 

 

 

(2,531

)

Balance, June 30, 2019

 

$

79,283

 

 

$

2,545

 

 

 

 

 

 

 

 

 

 

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, 2019

 

$

(17,072

)

 

$

678

 

 

 

 

 

 

 

 

 

 

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

 

 

(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, 2019 and December 31, 2018, are as follows ($ in thousands):

 

 

June 30, 2019

 

 

December 31, 2018

 

 

 

Carrying

Value

 

 

Estimated

Fair Value

 

 

Carrying

Value

 

 

Estimated

Fair Value

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 2 Inputs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and short-term investments

 

$

479,912

 

 

$

479,912

 

 

$

350,391

 

 

$

350,391

 

Securities held to maturity

 

 

825,536

 

 

 

832,361

 

 

 

909,643

 

 

 

889,733

 

Level 3 Inputs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net LHFI

 

 

9,036,360

 

 

 

9,143,712

 

 

 

8,756,578

 

 

 

8,757,817

 

Net acquired loans

 

 

86,486

 

 

 

86,486

 

 

 

105,701

 

 

 

105,701

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 2 Inputs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

11,566,629

 

 

 

11,568,709

 

 

 

11,364,411

 

 

 

11,365,203

 

Federal funds purchased and securities sold under

   repurchase agreements

 

 

51,800

 

 

 

51,800

 

 

 

50,471

 

 

 

50,471

 

Other borrowings

 

 

79,012

 

 

 

78,983

 

 

 

79,885

 

 

 

79,827

 

Junior subordinated debt securities

 

 

61,856

 

 

 

51,340

 

 

 

61,856

 

 

 

53,196

 

 
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 LHFS accounted for under the fair value option as of June 30, 2019 and December 31, 2018 ($ in thousands):

 

 

 

June 30, 2019

 

 

December 31, 2018

 

Fair value of LHFS

 

$

190,589

 

 

$

92,235

 

LHFS contractual principal outstanding

 

 

184,455

 

 

 

89,056

 

Fair value less unpaid principal

 

$

6,134

 

 

$

3,179