Fair Value (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value

Schedule of recorded amount of assets and liabilities measured at fair value on a recurring basis

			Quoted Prices
			In Active		Significant
			Markets		Other		Significant
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2017:
Assets
Derivative financial instruments	$	1,956	$	—	$	1,956	$	—
Loans held for sale		65,995		—		65,995		—
Securities available for sale:
Government-sponsored entities debt		75,952		—		75,952		—
State and municipal obligations		193,294		—		193,294		—
Mortgage-backed securities		1,068,597		—		1,068,597		—
Corporate stocks		3,809		2,584		1,225		—
Total securities available for sale		1,341,652		2,584		1,339,068		—
Mortgage servicing rights		29,930		—		—		29,930
	$	1,439,533	$	2,584	$	1,407,019	$	29,930
Liabilities
Derivative financial instruments	$	592	$	—	$	592	$	—
December 31, 2016:
Assets
Derivative financial instruments	$	2,606	$	—	$	2,606	$	—
Loans held for sale		50,572		—		50,572		—
Securities available for sale:
Government-sponsored entities debt		84,642		—		84,642		—
State and municipal obligations		107,402		—		107,402		—
Mortgage-backed securities		803,577		—		803,577		—
Corporate stocks		3,784		2,559		1,225		—
Total securities available for sale		999,405		2,559		996,846		—
Mortgage servicing rights		29,037		—		—		29,037
	$	1,081,620	$	2,559	$	1,050,024	$	29,037
Liabilities
Derivative financial instruments	$	730	$	—	$	730	$	—
June 30, 2016:
Assets
Derivative financial instruments	$	3,257	$	—	$	3,257	$	—
Loans held for sale		48,926		—		48,926		—
Securities available for sale:
Government-sponsored entities debt	$	103,092	$	—	$	103,092	$	—
State and municipal obligations		123,894		—		123,894		—
Mortgage-backed securities		758,881		—		758,881		—
Corporate stocks		3,743		2,518		1,225		—
Total securities available for sale		989,610		2,518		987,092		—
Mortgage servicing rights		22,350		—		—		22,350
	$	1,064,143	$	2,518	$	1,039,275	$	22,350
Liabilities
Derivative financial instruments	$	2,213	$	—	$	2,213	$	—

Schedule of reconciliation of the beginning and ending balances of Level 3 assets and liabilities recorded at fair value on a recurring basis

(Dollars in thousands)	Assets		Liabilities
Fair value, January 1, 2017	$	29,037	$	—
Servicing assets that resulted from transfers of financial assets		3,096		—
Changes in fair value due to valuation inputs or assumptions		(371)		—
Changes in fair value due to decay		(1,832)		—
Fair value , June 30, 2017	$	29,930	$	—
Fair value, January 1, 2016	$	26,202	$	—
Servicing assets that resulted from transfers of financial assets		2,393		—
Changes in fair value due to valuation inputs or assumptions		(4,476)		—
Changes in fair value due to decay		(1,769)		—
Fair value, June 30, 2016	$	22,350	$	—

Schedule of amounts of assets and liabilities measured at fair value on a nonrecurring basis

			Quoted Prices
			In Active		Significant
			Markets		Other		Significant
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2017:
OREO	$	14,430	$	—	$	—	$	14,430
Non-acquired impaired loans		3,754		—		—		3,754
December 31, 2016:
OREO	$	18,316	$	—	$	—	$	18,316
Non-acquired impaired loans		6,611		—		—		6,611
June 30, 2016:
OREO	$	22,427	$	—	$	—	$	22,427
Non-acquired impaired loans		3,515		—		—		3,515

Quantitative Information about Level 3 Fair Value Measurements

			Weighted Average
			June 30,		December 31,		June 30,
	Valuation Technique	Unobservable Input	2017		2016		2016
Nonrecurring measurements:
Non-acquired impaired loans	Discounted appraisals	Collateral discounts	5	%	6	%	6	%
OREO	Discounted appraisals	Collateral discounts and estimated costs to sell	25	%	18	%	17	%

Schedule of estimated fair value, and related carrying amount, of the Company's financial instruments

	Carrying		Fair
(Dollars in thousands)	Amount		Value		Level 1		Level 2		Level 3
June 30, 2017
Financial assets:
Cash and cash equivalents	$	431,890	$	431,890	$	431,890	$	—	$	—
Investment securities		1,358,894		1,358,976		15,660		1,343,316		—
Loans held for sale		65,995		65,995		—		65,995		—
Loans, net of allowance for loan losses		8,140,706		8,216,793		—		—		8,216,793
Accrued interest receivable		23,469		23,469		—		5,454		18,015
Mortgage servicing rights		29,930		29,930		—		—		29,930
Interest rate swap - non-designated hedge		208		208		—		208		—
Other derivative financial instruments (mortgage banking related)		1,748		1,748		—		1,748		—
Financial liabilities:
Deposits		9,031,654		8,481,700		—		8,481,700		—
Federal funds purchased and securities sold under agreements to repurchase		334,018		334,018		—		334,018		—
Other borrowings		98,147		100,723		—		100,723		—
Accrued interest payable		1,502		1,502		—		1,502		—
Interest rate swap - non-designated hedge		203		203		—		203		—
Interest rate swap - cash flow hedge		389		389		—		389		—
Off balance sheet financial instruments:
Commitments to extend credit		—		17,200		—		17,200		—
December 31, 2016
Financial assets:
Cash and cash equivalents	$	374,448	$	374,448	$	374,448	$	—	$	—
Investment securities		1,014,981		1,015,137		12,041		1,003,096		—
Loans held for sale		50,572		50,572		—		50,572		—
Loans, net of allowance for loan losses		6,643,326		6,649,575		—		—		6,649,575
Accrued interest receivable		18,618		18,618		—		3,642		14,976
Mortgage servicing rights		29,037		29,037		—		—		29,037
Interest rate swap - non-designated hedge		203		203		—		203		—
Other derivative financial instruments (mortgage banking related)		2,403		2,403		—		2,403		—
Financial liabilities:
Deposits		7,334,423		6,935,867		—		6,935,867		—
Federal funds purchased and securities sold under agreements to repurchase		313,773		313,773		—		313,773		—
Other borrowings		55,358		54,379		—		54,379		—
Accrued interest payable		1,359		1,359		—		1,359		—
Interest rate swap - non-designated hedge		181		181		—		181		—
Interest rate swap - cash flow hedge		498		498		—		498		—
Other derivative financial instruments (mortgage banking related)		51		51		—		51		—
Off balance sheet financial instruments:
Commitments to extend credit		—		1,587		—		1,587		—
June 30, 2016
Financial assets:
Cash and cash equivalents	$	481,912	$	481,912	$	481,912	$	—	$	—
Investment securities		1,007,060		1,007,370		12,047		995,323		—
Loans held for sale		48,926		48,926		—		48,926		—
Loans, net of allowance for loan losses		6,380,657		6,591,596		—		—		6,591,596
Accrued interest receivable		18,191		18,191		—		3,941		14,250
Mortgage servicing rights		22,350		22,350		—		—		22,350
Other derivative financial instruments (mortgage banking related)		3,257		3,257		—		3,257		—
Financial liabilities:
Deposits		7,163,926		6,980,410		—		6,980,410		—
Federal funds purchased and securities sold under agreements to repurchase		341,064		341,064		—		341,064		—
Other borrowings		55,254		49,499		—		49,499		—
Accrued interest payable		1,649		1,649		—		1,649		—
Interest rate swap - cash flow hedge		776		776		—		776		—
Other derivative financial instruments (mortgage banking related)		1,437		1,437		—		1,437		—
Off balance sheet financial instruments:
Commitments to extend credit		—		53,838		—		53,838		—