Fair Value (Tables)

9 Months Ended

Sep. 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)
September 30, 2017:
Assets
Derivative financial instruments	$	1,492	$	—	$	1,492	$	—
Loans held for sale		46,321		—		46,321		—
Securities available for sale:
Government-sponsored entities debt		85,951		—		85,951		—
State and municipal obligations		204,294		—		204,294		—
Mortgage-backed securities		1,027,477		—		1,027,477		—
Corporate stocks		2,957		1,732		1,225		—
Total securities available for sale		1,320,679		1,732		1,318,947		—
Mortgage servicing rights		29,937		—		—		29,937
	$	1,398,429	$	1,732	$	1,366,760	$	29,937
Liabilities
Derivative financial instruments	$	1,301	$	—	$	1,301	$	—
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	$	—
September 30, 2016:
Assets
Derivative financial instruments	$	3,091	$	—	$	3,091	$	—
Loans held for sale		57,052		—		57,052		—
Securities available for sale:
Government-sponsored entities debt	$	62,980	$	—	$	62,980	$	—
State and municipal obligations		117,324		—		117,324		—
Mortgage-backed securities		741,277		—		741,277		—
Corporate stocks		3,793		2,568		1,225		—
Total securities available for sale		925,374		2,568		922,806		—
Mortgage servicing rights		23,064		—		—		23,064
	$	1,008,581	$	2,568	$	982,949	$	23,064
Liabilities
Derivative financial instruments	$	1,100	$	—	$	1,100	$	—

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		4,764		—
Changes in fair value due to valuation inputs or assumptions		(1,055)		—
Changes in fair value due to decay		(2,809)		—
Fair value , September 30, 2017	$	29,937	$	—
Fair value, January 1, 2016	$	26,202	$	—
Servicing assets that resulted from transfers of financial assets		4,182		—
Changes in fair value due to valuation inputs or assumptions		(4,305)		—
Changes in fair value due to decay		(3,015)		—
Fair value, September 30, 2016	$	23,064	$	—

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)
September 30, 2017:
OREO	$	13,527	$	—	$	—	$	13,527
Non-acquired impaired loans		5,588		—		—		5,588
December 31, 2016:
OREO	$	18,316	$	—	$	—	$	18,316
Non-acquired impaired loans		6,611		—		—		6,611
September 30, 2016:
OREO	$	22,211	$	—	$	—	$	22,211
Non-acquired impaired loans		4,360		—		—		4,360

Quantitative Information about Level 3 Fair Value Measurements

			Weighted Average
			September 30,		December 31,		September 30,
	Valuation Technique	Unobservable Input	2017		2016		2016
Nonrecurring measurements:
Non-acquired impaired loans	Discounted appraisals	Collateral discounts	3	%	6	%	7	%
OREO	Discounted appraisals	Collateral discounts and estimated costs to sell	23	%	18	%	24	%

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
September 30, 2017
Financial assets:
Cash and cash equivalents	$	403,934	$	403,934	$	403,934	$	—	$	—
Investment securities		1,336,796		1,336,850		14,171		1,322,679		—
Loans held for sale		46,321		46,321		—		46,321		—
Loans, net of allowance for loan losses		8,223,204		8,284,002		—		—		8,284,002
Accrued interest receivable		25,172		25,172		—		5,373		19,799
Mortgage servicing rights		29,937		29,937		—		—		29,937
Interest rate swap - non-designated hedge		200		200		—		200		—
Other derivative financial instruments (mortgage banking related)		1,292		1,292		—		1,292		—
Financial liabilities:
Deposits		9,062,021		8,512,681		—		8,512,681		—
Federal funds purchased and securities sold under agreements to repurchase		291,099		291,099		—		291,099		—
Other borrowings		83,307		85,344		—		85,344		—
Accrued interest payable		1,810		1,810		—		1,810		—
Interest rate swap - non-designated hedge		197		197		—		197		—
Interest rate swap - cash flow hedge		329		329		—		329		—
Other derivative financial instruments (mortgage banking related)		775		775		—		775		—
Off balance sheet financial instruments:
Commitments to extend credit		—		15,968		—		15,968		—
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		—
September 30, 2016
Financial assets:
Cash and cash equivalents	$	507,517	$	507,517	$	507,517	$	—	$	—
Investment securities		941,707		941,932		12,050		929,882		—
Loans held for sale		57,052		57,052		—		57,052		—
Loans, net of allowance for loan losses		6,489,068		6,667,622		—		—		6,667,622
Accrued interest receivable		17,501		17,501		—		3,528		13,973
Mortgage servicing rights		23,064		23,064		—		—		23,064
Other derivative financial instruments (mortgage banking related)		3,091		3,091		—		3,091		—
Financial liabilities:
Deposits		7,247,406		7,015,012		—		7,015,012		—
Federal funds purchased and securities sold under agreements to repurchase		305,268		305,268		—		305,268		—
Other borrowings		55,306		49,781		—		49,781		—
Accrued interest payable		1,384		1,384		—		1,384		—
Interest rate swap - cash flow hedge		655		655		—		655		—
Other derivative financial instruments (mortgage banking related)		444		444		—		444		—
Off balance sheet financial instruments:
Commitments to extend credit		—		45,285		—		45,285		—