Estimated Fair Values (Tables)

12 Months Ended

Dec. 31, 2018

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 December 31, 2018 and 2017. 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.

The table presents the carrying values and estimated fair values for financial instruments as of December 31, 2018 and 2017.



	December 31, 2018				December 31, 2017
(Dollars in thousands)	Carrying value		Fair value		Carrying value		Fair value
Cash and due from banks	$	327,440	$	327,440	$	336,150	$	336,150
Overnight investments	797,406		797,406		1,387,927		1,387,927
Investment securities available for sale	4,557,110		4,557,110		7,180,180		7,180,180
Investment securities held to maturity	2,184,653		2,201,502		76		81
Marketable equity securities	92,599		92,599		—		—
Loans held for sale	45,505		45,505		51,179		51,179
Net loans and leases	25,299,564		24,845,060		23,374,932		22,257,803
Income earned not collected	109,903		109,903		95,249		95,249
Federal Home Loan Bank stock	25,304		25,304		52,685		52,685
Mortgage and other servicing rights	24,066		29,532		21,945		26,170
Deposits	30,672,460		30,623,214		29,266,275		29,230,768
Short-term borrowings	572,287		572,287		693,807		693,807
Long-term obligations	319,867		332,678		870,240		852,112
Payable to the FDIC for shared-loss agreements	105,618		105,846		101,342		102,684
Accrued interest payable	3,712		3,712		3,952		3,952

Assets And Liabilities Carried At Fair Value On A Recurring Basis

Among BancShares’ assets and liabilities, investment securities available for sale, marketable equity securities and loans held for sale are reported at their fair values 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 December 31, 2018 and December 31, 2017.



	December 31, 2018
			Fair value measurements using:
(Dollars in thousands)	Fair value		Level 1		Level 2		Level 3
Assets measured at fair value
Investment securities available for sale
U.S. Treasury	$	1,247,710	$	—	$	1,247,710	$	—
Government agency	256,835		—		256,835		—
Mortgage-backed securities	2,909,339		—		2,909,339		—
Corporate bonds	139,101		—		—		139,101
Other	4,125		—		—		4,125
Total investment securities available for sale	$	4,557,110	$	—	$	4,413,884	$	143,226
Marketable equity securities	$	92,599	$	17,887	$	74,712	—
Loans held for sale	$	45,505	$	—	$	45,505	$	—

	December 31, 2017
			Fair value measurements using:
	Fair value		Level 1		Level 2		Level 3
Assets measured at fair value
Investment securities available for sale
U.S. Treasury	$	1,657,864	$	—	$	1,657,864	$	—
Government agency	8,670		—		8,670		—
Mortgage-backed securities	5,340,756		—		5,340,756		—
Marketable equity securities	105,208		19,341		85,867		—
Corporate bonds	59,963		—		59,963		—
Other	7,719		—		7,719		—
Total investment securities available for sale	$	7,180,180	$	19,341	$	7,160,839	$	—
Loans held for sale	$	51,179	$	—	$	51,179	$	—

Fair Value of Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table summarizes activity for Level 3 assets:



	December 31, 2018
(Dollars in thousands)	Corporate bonds			Other
Balance at January 1, 2018	$	—		$	—
Transfers in	59,653			5,618
Amounts included in net income	169			22
Unrealized net (losses) gains included in other comprehensive income	(1,043		)	122
Acquisition	82,727			—
Sales / Calls	(2,405		)	(1,637		)
Balance at December 31, 2018	$	139,101		$	4,125

Fair Value Level 3 Significant Unobservable Input Assumptions

The following table presents quantitative information about Level 3 fair value measurements for fair value on a recurring basis at December 31, 2018.



(Dollars in thousands)			December 31, 2018
Level 3 assets	Valuation technique	Significant unobservable input	Fair Value
Corporate bonds	Indicative bid provided by broker	Multiple factors, including but not limited to, current operations, financial condition, cash flows, and recently executed financing transactions related to the company	$	139,101
Other	Indicative bid provided by broker	Multiple factors, including but not limited to, current operations, financial condition, cash flows, and recently executed financing transactions related to the company	4,125

Fair Value Option

The following table summarizes the difference between the aggregate fair value and the unpaid principal balance for residential real estate originated for sale measured at fair value as of December 31, 2018 and 2017.



	December 31, 2018
(Dollars in thousands)	Fair Value		Unpaid Principal Balance		Difference
Originated loans held for sale	$	45,505	$	44,073	$	1,432

	December 31, 2017
	Fair Value		Unpaid Principal Balance		Difference
Originated loans held for sale	$	51,179	$	49,796	$	1,383

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 December 31, 2018 and December 31, 2017.



	December 31, 2018
			Fair value measurements using:
(Dollars in thousands)	Fair value		Level 1		Level 2		Level 3
Impaired loans	$	105,994	$	—	$	—	$	105,994
Other real estate remeasured during current year	35,344		—		—		35,344

	December 31, 2017
			Fair value measurements using:
	Fair value		Level 1		Level 2		Level 3
Impaired loans	$	72,539	$	—	$	—	$	72,539
Other real estate remeasured during current year	40,167		—		—		40,167