Fair Value (Tables)

6 Months Ended

Jun. 30, 2019

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, 2019:
Assets
Derivative financial instruments	$	17,587	$	—	$	17,587	$	—
Loans held for sale		47,796		—		47,796		—
Securities available for sale:
Government-sponsored entities debt		66,529		—		66,529		—
State and municipal obligations		182,146		—		182,146		—
Mortgage-backed securities		1,468,601		—		1,468,601		—
Total securities available for sale		1,717,276		—		1,717,276		—
Mortgage servicing rights		30,332		—		—		30,332
	$	1,812,991	$	—	$	1,782,659	$	30,332
Liabilities
Derivative financial instruments	$	30,286	$	—	$	30,286	$	—
December 31, 2018:
Assets
Derivative financial instruments	$	5,090	$	—	$	5,090	$	—
Loans held for sale		22,925		—		22,925		—
Securities available for sale:
Government-sponsored entities debt		48,251		—		48,251		—
State and municipal obligations		200,768		—		200,768		—
Mortgage-backed securities		1,268,048		—		1,268,048		—
Total securities available for sale		1,517,067		—		1,517,067		—
Mortgage servicing rights		34,727		—		—		34,727
	$	1,579,809	$	—	$	1,545,082	$	34,727
Liabilities
Derivative financial instruments	$	4,421	$	—	$	4,421	$	—
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		—
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	$	—

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, 2019	$	34,727	$	—
Servicing assets that resulted from transfers of financial assets		2,558		—
Changes in fair value due to valuation inputs or assumptions		(4,924)		—
Changes in fair value due to decay		(2,029)		—
Fair value , June 30, 2019	$	30,332	$	—
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	$	—

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, 2019:
OREO	$	14,506	$	—	$	—	$	14,506
Non-acquired impaired loans		4,946		—		—		4,946
December 31, 2018:
OREO	$	11,410	$	—	$	—	$	11,410
Non-acquired impaired loans		13,164		—		—		13,164
June 30, 2018:
OREO	$	17,222	$	—	$	—	$	17,222
Non-acquired impaired loans		5,909		—		—		5,909

Quantitative Information about Level 3 Fair Value Measurements

			Weighted Average
			June 30,		December 31,		June 30,
	Valuation Technique	Unobservable Input	2019		2018		2018
Nonrecurring measurements:
Non-acquired impaired loans	Discounted appraisals	Collateral discounts	3	%	3	%	3	%
OREO	Discounted appraisals	Collateral discounts and estimated costs to sell	22	%	23	%	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, 2019
Financial assets:
Cash and cash equivalents	$	851,971	$	851,971	$	851,971	$	—	$	—
Investment securities		1,766,400		1,766,400		49,124		1,717,276		—
Loans held for sale		47,796		47,796		—		47,796		—
Loans, net of allowance for loan losses		11,167,979		11,278,624		—		—		11,278,624
Accrued interest receivable		38,650		38,650		—		7,880		30,770
Mortgage servicing rights		30,332		30,332		—		—		30,332
Interest rate swap - non-designated hedge		14,561		14,561		—		14,561		—
Other derivative financial instruments (mortgage banking related)		3,026		3,026		—		3,026		—
Financial liabilities:
Deposits		11,922,280		11,124,796		—		11,124,796		—
Federal funds purchased and securities sold under agreements to repurchase		298,029		298,029		—		298,029		—
Other borrowings		816,414		819,306		—		819,306		—
Accrued interest payable		6,168		6,168		—		6,168		—
Interest rate swap - non-designated hedge		15,952		15,952		—		15,952		—
Interest rate swap - cash flow hedge		14,334		14,334		—		14,334		—
Other derivative financial instruments (mortgage banking related)		—		—		—		—		—
Off balance sheet financial instruments:
Commitments to extend credit		—		27,579		—		27,579		—
December 31, 2018
Financial assets:
Cash and cash equivalents	$	408,983	$	408,983	$	408,983	$	—	$	—
Investment securities		1,542,671		1,542,671		25,604		1,517,067		—
Loans held for sale		22,925		22,925		—		22,925		—
Loans, net of allowance for loan losses		10,962,037		10,613,571		—		—		10,613,571
Accrued interest receivable		35,997		35,997		—		6,908		29,089
Mortgage servicing rights		34,727		34,727		—		—		34,727
Interest rate swap - non-designated hedge		3,824		3,824		—		3,824		—
Other derivative financial instruments (mortgage banking related)		1,267		1,267		—		1,267		—
Financial liabilities:
Deposits		11,646,933		10,561,394		—		10,561,394		—
Federal funds purchased and securities sold under agreements to repurchase		270,649		270,649		—		270,649		—
Other borrowings		266,084		269,134		—		269,134		—
Accrued interest payable		4,719		4,719		—		4,719		—
Interest rate swap - non-designated hedge		4,373		4,373		—		4,373		—
Interest rate swap - cash flow hedge		48		48		—		48		—
Off balance sheet financial instruments:
Commitments to extend credit		—		(88,424)		—		(88,424)		—
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		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 - cash flow hedge		116		116		—		116		—
Interest rate swap - non-designated hedge		7,981		7,981		—		7,981		—
Off balance sheet financial instruments:
Commitments to extend credit		—		(62,060)		—		(62,060)		—