Estimated Fair Values (Tables)

9 Months Ended

Sep. 30, 2017

Estimated Fair Values For Certain Financial Assets And Financial Liabilities

For all other financial assets and financial liabilities, the carrying value is a reasonable estimate of the fair value as of September 30, 2017 and December 31, 2016. The carrying value and fair value for these assets and liabilities are equivalent because they are relatively short term in nature and there is no interest rate or credit risk that would cause the fair value to differ from the carrying value. Cash and due from banks is classified on the fair value hierarchy as Level 1. Overnight investments, income earned not collected, short-term borrowings and accrued interest payable are considered Level 2. Lastly, the receivable from the FDIC for shared-loss agreements is designated as Level 3.



(Dollars in thousands)	September 30, 2017				December 31, 2016
	Carrying value		Fair value		Carrying value		Fair value
Cash and due from banks	$	296,386	$	296,386	$	539,741	$	539,741
Overnight investments	2,432,233		2,432,233		1,872,594		1,872,594
Investment securities available for sale	6,992,877		6,992,877		7,006,580		7,006,580
Investment securities held to maturity	78		84		98		104
Loans held for sale	70,803		70,803		74,401		74,401
Net loans and leases	22,917,231		21,941,561		21,519,083		20,614,548
Receivable from the FDIC for shared-loss agreements	4,610		4,610		4,172		4,172
Income earned not collected	90,821		90,821		79,839		79,839
Federal Home Loan Bank stock	52,685		52,685		43,495		43,495
Mortgage servicing rights	22,003		25,597		20,415		24,446
Deposits	29,333,949		29,302,361		28,161,343		28,135,698
Short-term borrowings	679,280		679,280		603,487		603,487
Long-term obligations	866,123		865,876		832,942		832,201
Payable to the FDIC for shared-loss agreements	100,203		102,603		97,008		100,069
Accrued interest payable	4,198		4,198		3,797		3,797

Assets And Liabilities Carried At Fair Value On A Recurring Basis

For assets and liabilities carried at fair value on a recurring basis, the following table provides fair value information as of September 30, 2017 and December 31, 2016.



	September 30, 2017
			Fair value measurements using:
(Dollars in thousands)	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Assets measured at fair value
Investment securities available for sale
U.S. Treasury	$	1,616,324	$	—	$	1,616,324	$	—
Government agency	—		—		—		—
Mortgage-backed securities	5,200,341		—		5,200,341		—
Equity securities	113,650		31,739		81,911		—
Corporate bonds	54,873		—		54,873		—
Other	7,689		—		7,689		—
Total investment securities available for sale	$	6,992,877	$	31,739	$	6,961,138	$	—
Loans held for sale	$	70,803	$	—	$	70,803	$	—

	December 31, 2016
			Fair value measurements using:
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Assets measured at fair value
Investment securities available for sale
U.S. Treasury	$	1,650,319	$	—	$	1,650,319	$	—
Government agency	40,398		—		40,398		—
Mortgage-backed securities	5,175,425		—		5,175,425		—
Equity securities	83,507		29,145		54,362		—
Corporate bonds	49,562		—		49,562		—
Other	7,369		—		7,369		—
Total investment securities available for sale	$	7,006,580	$	29,145	$	6,977,435	$	—
Loans held for sale	$	74,401	$	—	$	74,401	$	—

Fair Value Option

The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for originated residential real estate loans held for sale measured at fair value as of September 30, 2017 and December 31, 2016.



	September 30, 2017
(Dollars in thousands)	Fair Value		Aggregate Unpaid Principal Balance		Difference
Originated loans held for sale	$	70,803	$	68,739	$	2,064

	December 31, 2016
	Fair Value		Aggregate Unpaid Principal Balance		Difference
Originated loans held for sale	$	74,401	$	75,893	$	(1,492	)

No originated loans held for sale were 90 or more days past due or on nonaccrual status as of September 30, 2017 or December 31, 2016.

The changes in fair value for originated residential real estate loans held for sale for which the fair value option was elected are recorded as a component of mortgage income on the Consolidated Statements of Income and are included in the table below for the three and nine months ended September 30, 2017 and 2016.



	Three months ended September 30					Nine months ended September 30
(Dollars in thousands)	2017		2016			2017		2016
Gains (losses) from fair value changes on originated loans held for sale	$	104	$	(51	)	$	3,556	$	1,588

Assets And Liabilities Carried At Fair Value On A Nonrecurring Basis

For financial assets and liabilities carried at fair value on a nonrecurring basis, the following table provides fair value information as of September 30, 2017 and December 31, 2016.



	September 30, 2017
			Fair value measurements using:
(Dollars in thousands)	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Impaired loans	$	71,068	$	—	$	—	$	71,068
Other real estate remeasured during current year	38,533		—		—		38,533

	December 31, 2016
			Fair value measurements using:
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Impaired loans	$	70,977	$	—	$	—	$	70,977
Other real estate remeasured during current year	45,402		—		—		45,402
Mortgage servicing rights	342		—		—		342

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

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