Fair Value (Tables)

6 Months Ended

Jun. 30, 2018

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, 2018:
Assets
Derivative financial instruments	$	8,848	$	—	$	8,848	$	—
Loans held for sale		36,968		—		36,968		—
Securities available for sale:
Government-sponsored entities debt		47,613		—		47,613		—
State and municipal obligations		223,816		—		223,816		—
Mortgage-backed securities		1,306,570		—		1,306,570		—
Corporate securities		—		—		—		—
Total securities available for sale		1,577,999		—		1,577,999		—
Mortgage servicing rights		35,107		—		—		35,107
	$	1,658,922	$	—	$	1,623,815	$	35,107
Liabilities
Derivative financial instruments	$	8,097	$	—	$	8,097	$	—
December 31, 2017:
Assets
Derivative financial instruments	$	3,306	$	—	$	3,306	$	—
Loans held for sale		70,890		—		70,890		—
Securities available for sale:
Government-sponsored entities debt		85,509		—		85,509		—
State and municipal obligations		220,437		—		220,437		—
Mortgage-backed securities		1,340,687		—		1,340,687		—
Corporate securities		1,560		—		1,560		—
Total securities available for sale		1,648,193		—		1,648,193		—
Mortgage servicing rights		31,119		—		—		31,119
	$	1,753,508	$	—	$	1,722,389	$	31,119
Liabilities
Derivative financial instruments	$	3,248	$	—	$	3,248	$	—
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 securities		2,584		2,584		—		—
Total securities available for sale		1,340,427		2,584		1,337,843		—
Mortgage servicing rights		29,930		—		—		29,930
	$	1,438,308	$	2,584	$	1,405,794	$	29,930
Liabilities
Derivative financial instruments	$	592	$	—	$	592	$	—

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, 2018	$	31,119	$	—
Servicing assets that resulted from transfers of financial assets		3,112		—
Changes in fair value due to valuation inputs or assumptions		2,945		—
Changes in fair value due to decay		(2,069)		—
Fair value , June 30, 2018	$	35,107	$	—
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	$	—

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, 2018:
OREO	$	17,222	$	—	$	—	$	17,222
Non-acquired impaired loans		5,909		—		—		5,909
December 31, 2017:
OREO	$	11,203	$	—	$	—	$	11,203
Non-acquired impaired loans		10,495		—		—		10,495
June 30, 2017:
OREO	$	14,430	$	—	$	—	$	14,430
Non-acquired impaired loans		3,754		—		—		3,754

Quantitative Information about Level 3 Fair Value Measurements

			Weighted Average
			June 30,		December 31,		June 30,
	Valuation Technique	Unobservable Input	2018		2017		2017
Nonrecurring measurements:
Non-acquired impaired loans	Discounted appraisals	Collateral discounts	3	%	3	%	5	%
OREO	Discounted appraisals	Collateral discounts and estimated costs to sell	17	%	21	%	25	%

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, 2018
Financial assets:
Cash and cash equivalents	$	396,849	$	396,849	$	396,849	$	—	$	—
Investment securities		1,597,727		1,597,731		19,229		1,578,502		—
Loans held for sale		36,968		36,968		—		36,968		—
Loans, net of allowance for loan losses (1)		10,778,068		10,547,778		—		—		10,547,778
Accrued interest receivable		33,751		33,751		—		7,333		26,418
Mortgage servicing rights		35,107		35,107		—		—		35,107
Interest rate swap - non-designated hedge		7,750		7,750		—		7,750		—
Other derivative financial instruments (mortgage banking related)		1,098		1,098		—		1,098		—
Financial liabilities:
Deposits		11,638,289		10,675,705		—		10,675,705		—
Federal funds purchased and securities sold under agreements to repurchase		331,969		331,969		—		331,969		—
Other borrowings		115,754		119,221		—		119,221		—
Accrued interest payable		3,882		3,882		—		3,882		—
Interest rate swap - non-designated hedge		7,981		7,981		—		7,981		—
Interest rate swap - cash flow hedge		116		116		—		116		—
Off balance sheet financial instruments:
Commitments to extend credit		—		(62,060)		—		(62,060)		—
December 31, 2017
Financial assets:
Cash and cash equivalents	$	377,627	$	377,627	$	377,627	$	—	$	—
Investment securities		1,673,769		1,673,796		23,047		1,650,749		—
Loans held for sale		70,890		70,890		—		70,890		—
Loans, net of allowance for loan losses (1)		10,575,417		10,724,264		—		—		10,724,264
Accrued interest receivable		32,727		32,727		—		7,051		25,676
Mortgage servicing rights		31,119		31,119		—		—		31,119
Interest rate swap - non-designated hedge		2,367		2,367		—		2,367		—
Other derivative financial instruments (mortgage banking related)		939		939		—		939		—
Financial liabilities:
Deposits		11,532,766		10,796,380		—		10,796,380		—
Federal funds purchased and securities sold under agreements to repurchase		286,857		286,857		—		286,857		—
Other borrowings		216,385		219,421		—		219,421		—
Accrued interest payable		2,789		2,789		—		2,789		—
Interest rate swap - non-designated hedge		2,750		2,750		—		2,750		—
Interest rate swap - cash flow hedge		246		246		—		246		—
Other derivative financial instruments (mortgage banking related)		252		252		—		252		—
Off balance sheet financial instruments:
Commitments to extend credit		—		41,319		—		41,319		—
June 30, 2017
Financial assets:
Cash and cash equivalents	$	431,890	$	431,890	$	431,890	$	—	$	—
Investment securities		1,358,894		1,358,976		14,301		1,344,675		—
Loans held for sale		65,995		65,995		—		65,995		—
Loans, net of allowance for loan losses (1)		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 - cash flow hedge		389		389		—		389		—
Interest rate swap - non-designated hedge		203		203		—		203		—
Off balance sheet financial instruments:
Commitments to extend credit		—		17,200		—		17,200		—
(1) - Loans, net of allowance for loan losses is being valued using a different method at June 30, 2018 from December 31, 2017 and June 30, 2017.  See page 45 for explanation of change in method.