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Fair Value (Tables)
 9 Months Ended
Sep. 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 September 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 nine months ended September 30, 2019 and the year ended December 31, 2018.

 

 

September 30, 2019

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

U.S. Government agency obligations

 

$

24,697

 

 

$

—

 

 

$

24,697

 

 

$

—

 

Obligations of states and political subdivisions

 

 

35,001

 

 

 

—

 

 

 

35,001

 

 

 

—

 

Mortgage-backed securities

 

 

1,494,007

 

 

 

—

 

 

 

1,494,007

 

 

 

—

 

Securities available for sale

 

 

1,553,705

 

 

 

—

 

 

 

1,553,705

 

 

 

—

 

Loans held for sale

 

 

292,800

 

 

 

—

 

 

 

292,800

 

 

 

—

 

Mortgage servicing rights

 

 

73,016

 

 

 

—

 

 

 

—

 

 

 

73,016

 

Other assets - derivatives

 

 

24,433

 

 

 

438

 

 

 

21,779

 

 

 

2,216

 

Other liabilities - derivatives

 

 

4,864

 

 

 

2,963

 

 

 

1,901

 

 

 

—

 

 

 

 

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 nine months ended September 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)

 

 

(34,011

)

 

 

5,741

 

Additions

 

 

11,431

 

 

 

—

 

Sales

 

 

—

 

 

 

(4,712

)

Balance, September 30, 2019

 

$

73,016

 

 

$

2,216

 

 

 

 

 

 

 

 

 

 

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 September 30, 2019

 

$

(25,126

)

 

$

924

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2018

 

$

84,269

 

 

$

900

 

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

 

 

4,857

 

 

 

3,345

 

Additions

 

 

12,248

 

 

 

—

 

Sales

 

 

—

 

 

 

(3,352

)

Balance, September 30, 2018

 

$

101,374

 

 

$

893

 

 

 

 

 

 

 

 

 

 

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 September 30, 2018

 

$

13,879

 

 

$

247

 

 

(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 September 30, 2019 and December 31, 2018, are as follows ($ in thousands):

 

 

September 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

 

$

486,263

 

 

$

486,263

 

 

$

350,391

 

 

$

350,391

 

Securities held to maturity

 

 

785,422

 

 

 

794,685

 

 

 

909,643

 

 

 

889,733

 

Level 3 Inputs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net LHFI

 

 

9,140,442

 

 

 

9,217,088

 

 

 

8,756,578

 

 

 

8,757,817

 

Net acquired loans

 

 

79,755

 

 

 

79,755

 

 

 

105,701

 

 

 

105,701

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 2 Inputs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

11,254,183

 

 

 

11,259,381

 

 

 

11,364,411

 

 

 

11,365,203

 

Federal funds purchased and securities sold under

   repurchase agreements

 

 

376,712

 

 

 

376,712

 

 

 

50,471

 

 

 

50,471

 

Other borrowings

 

 

76,685

 

 

 

76,663

 

 

 

79,885

 

 

 

79,827

 

Junior subordinated debt securities

 

 

61,856

 

 

 

50,413

 

 

 

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 September 30, 2019 and December 31, 2018 ($ in thousands):

 

 

 

September 30, 2019

 

 

December 31, 2018

 

Fair value of LHFS

 

$

244,703

 

 

$

92,235

 

LHFS contractual principal outstanding

 

 

238,562

 

 

 

89,056

 

Fair value less unpaid principal

 

$

6,141

 

 

$

3,179