Fair Value (Tables)

3 Months Ended

Mar. 31, 2020

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)
March 31, 2020:
Assets
Derivative financial instruments	$	61,153	$	—	$	61,153	$	—
Loans held for sale		71,719		—		71,719		—
Securities available for sale:
Government-sponsored entities debt		4,921		—		4,921		—
State and municipal obligations		221,604		—		221,604		—
Mortgage-backed securities		1,744,670		—		1,744,670		—
Total securities available for sale		1,971,195		—		1,971,195		—
Mortgage servicing rights		26,365		—		—		26,365
	$	2,130,432	$	—	$	2,104,067	$	26,365
Liabilities
Derivative financial instruments	$	97,861	$	—	$	97,861	$	—
December 31, 2019:
Assets
Derivative financial instruments	$	16,252	$	—	$	16,252	$	—
Loans held for sale		59,363		—		59,363		—
Securities available for sale:
Government-sponsored entities debt		25,941		—		25,941		—
State and municipal obligations		208,415		—		208,415		—
Mortgage-backed securities		1,721,691		—		1,721,691		—
Total securities available for sale		1,956,047		—		1,956,047		—
Mortgage servicing rights		30,525		—		—		30,525
	$	2,062,187	$	—	$	2,031,662	$	30,525
Liabilities
Derivative financial instruments	$	31,273	$	—	$	31,273	$	—
March 31, 2019:
Assets
Derivative financial instruments	$	8,727	$	—	$	8,727	$	—
Loans held for sale		33,297		—		33,297		—
Securities available for sale:
Government-sponsored entities debt		65,704		—		65,704		—
State and municipal obligations		193,418		—		193,418		—
Mortgage-backed securities		1,207,127		—		1,207,127		—
Total securities available for sale		1,466,249		—		1,466,249		—
Mortgage servicing rights		32,415		—		—		32,415
	$	1,540,688	$	—	$	1,508,273	$	32,415
Liabilities
Derivative financial instruments	$	10,330	$	—	$	10,330	$	—

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, 2020	$	30,525	$	—
Servicing assets that resulted from transfers of financial assets		1,963		—
Changes in fair value due to valuation inputs or assumptions		(4,919)		—
Changes in fair value due to decay		(1,204)		—
Fair value , March 31, 2020	$	26,365	$	—
Fair value, January 1, 2019	$	34,727	$	—
Servicing assets that resulted from transfers of financial assets		931		—
Changes in fair value due to valuation inputs or assumptions		(2,357)		—
Changes in fair value due to decay		(886)		—
Fair value, March 31, 2019	$	32,415	$	—

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)
March 31, 2020:
OREO	$	12,844	$	—	$	—	$	12,844
Impaired loans		12,264		—		—		12,264
December 31, 2019:
OREO	$	11,964	$	—	$	—	$	11,964
Non-acquired impaired loans		15,444		—		—		15,444
March 31, 2019:
OREO	$	11,297	$	—	$	—	$	11,297
Non-acquired impaired loans		1,839		—		—		1,839

Quantitative Information about Level 3 Fair Value Measurements

			Weighted Average
			March 31,		December 31,		March 31,
	Valuation Technique	Unobservable Input	2020		2019		2019
Nonrecurring measurements:
Impaired loans	Discounted appraisals and discounted cash flows	Collateral discounts	4	%	2	%	3	%
OREO	Discounted appraisals	Collateral discounts and estimated costs to sell	29	%	31	%	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
March 31, 2020
Financial assets:
Cash and cash equivalents	$	1,262,836	$	1,262,836	$	1,262,836	$	—	$	—
Investment securities		2,034,189		2,034,189		62,994		1,971,195		—
Loans held for sale		71,719		71,719		—		71,719		—
Loans, net of allowance for loan losses		11,362,105		11,338,975		—		—		11,338,975
Accrued interest receivable		37,696		37,696		—		7,752		29,944
Mortgage servicing rights		26,365		26,365		—		—		26,365
Interest rate swap - non-designated hedge		51,244		51,244		—		51,244		—
Other derivative financial instruments (mortgage banking related)		9,909		9,909		—		9,909		—
Financial liabilities:
Deposits		12,344,547		11,911,840		—		11,911,840		—
Federal funds purchased and securities sold under agreements to repurchase		325,723		325,723		—		325,723		—
Other borrowings		1,316,100		1,318,621		—		1,318,621		—
Accrued interest payable		4,063		4,063		—		4,063		—
Interest rate swap - non-designated hedge		54,836		54,836		—		54,836		—
Interest rate swap - cash flow hedge		43,025		43,025		—		43,025		—
Off balance sheet financial instruments:
Commitments to extend credit		—		(6,109)		—		(6,109)		—
December 31, 2019
Financial assets:
Cash and cash equivalents	$	688,704	$	688,704	$	688,704	$	—	$	—
Investment securities		2,005,171		2,005,171		49,124		1,956,047		—
Loans held for sale		59,363		59,363		—		59,363		—
Loans, net of allowance for loan losses		11,313,113		11,452,003		—		—		11,452,003
Accrued interest receivable		36,774		36,774		—		8,500		28,274
Mortgage servicing rights		30,525		30,525		—		—		30,525
Interest rate swap - non-designated hedge		15,350		15,350		—		15,350		—
Other derivative financial instruments (mortgage banking related)		902		902		—		902		—
Financial liabilities:
Deposits		12,177,096		11,406,477		—		11,406,477		—
Federal funds purchased and securities sold under agreements to repurchase		298,741		298,741		—		298,741		—
Other borrowings		815,936		818,210		—		818,210		—
Accrued interest payable		4,916		4,916		—		4,916		—
Interest rate swap - non-designated hedge		16,693		16,693		—		16,693		—
Interest rate swap - cash flow hedge		13,791		13,791		—		13,791		—
Other derivative financial instruments (mortgage banking related)		789		789		—		789		—
Off balance sheet financial instruments:
Commitments to extend credit		—		36,031		—		36,031		—
March 31, 2019
Financial assets:
Cash and cash equivalents	$	949,591	$	949,591	$	949,591	$	—	$	—
Investment securities		1,506,873		1,506,873		40,624		1,466,249		—
Loans held for sale		33,297		33,297		—		33,297		—
Loans, net of allowance for loan losses		11,089,600		11,005,731		—		—		11,005,731
Accrued interest receivable		36,965		36,965		524		5,891		30,550
Mortgage servicing rights		32,415		32,415		—		—		32,415
Interest rate swap - non-designated hedge		6,672		6,672		—		6,672		—
Interest rate swap - cash flow hedge		217		217		—		217		—
Other derivative financial instruments (mortgage banking related)		1,838		1,838		—		1,838		—
Financial liabilities:
Deposits		11,918,971		10,956,761		—		10,956,761		—
Federal funds purchased and securities sold under agreements to repurchase		276,891		276,891		—		276,891		—
Other borrowings		616,250		619,140		—		619,140		—
Accrued interest payable		5,688		5,688		—		5,688		—
Interest rate swap - cash flow hedge		2,927		2,927		—		2,927		—
Interest rate swap - non-designated hedge		7,403		7,403		—		7,403		—
Off balance sheet financial instruments:
Commitments to extend credit		—		(21,189)		—		(21,189)		—