Fair Value of Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2016

Fair value measurement of assets and liabilities measured at fair value on a recurring basis

The following tables disclose the fair value measurement of assets and liabilities measured at fair value on a recurring basis:



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Fair Value September 30, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Investment securities, available-for-sale
U.S. government and federal agency	$	41,593	—	41,593	—
U.S. government sponsored enterprises	16,367		—	16,367	—
State and local governments	852,059		—	852,059	—
Corporate bonds	404,413		—	404,413	—
Residential mortgage-backed securities	977,647		—	977,647	—
Total assets measured at fair value on a recurring basis	$	2,292,079	—	2,292,079	—
Interest rate swaps	$	26,526	—	26,526	—
Total liabilities measured at fair value on a recurring basis	$	26,526	—	26,526	—



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Fair Value December 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Investment securities, available-for-sale
U.S. government and federal agency	$	47,451	—	47,451	—
U.S. government sponsored enterprises	93,167		—	93,167	—
State and local governments	885,019		—	885,019	—
Corporate bonds	384,163		—	384,163	—
Residential mortgage-backed securities	1,200,960		—	1,200,960	—
Total assets measured at fair value on a recurring basis	$	2,610,760	—	2,610,760	—
Interest rate swaps	$	19,499	—	19,499	—
Total liabilities measured at fair value on a recurring basis	$	19,499	—	19,499	—

Fair value measurement of assets measured at fair value on a non-recurring basis

The following tables disclose the fair value measurement of assets with a recorded change during the period resulting from re-measuring the assets at fair value on a non-recurring basis:



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Fair Value September 30, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Other real estate owned	$	744	—	—	744
Collateral-dependent impaired loans, net of ALLL	5,381		—	—	5,381
Total assets measured at fair value on a non-recurring basis	$	6,125	—	—	6,125



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Fair Value December 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Other real estate owned	$	7,609	—	—	7,609
Collateral-dependent impaired loans, net of ALLL	12,938		—	—	12,938
Total assets measured at fair value on a non-recurring basis	$	20,547	—	—	20,547

Quantitative information about assets measured at fair value on a non-recurring basis for which Level 3 inputs were used

The following tables present additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized Level 3 inputs to determine fair value:



	Fair Value September 30, 2016		Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	Fair Value September 30, 2016		Valuation Technique	Unobservable Input	Range (Weighted-Average) ¹
Other real estate owned	$	672	Sales comparison approach	Selling costs	8.0% - 10.0% (8.2%)
	72		Combined approach	Selling costs	10.0% - 10.0% (10.0%)
	$	744
Collateral-dependent impaired loans, net of ALLL	$	141	Cost approach	Selling costs	10.0% - 20.0% (10.3%)
	2,276		Sales comparison approach	Selling costs	8.0% - 10.0% (9.6%)
	2,964		Combined approach	Selling costs	10.0% - 10.0% (10.0%)
				Adjustment to comparables	20.0% - 20.0% (20.0%)
	$	5,381



	Fair Value December 31, 2015		Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	Fair Value December 31, 2015		Valuation Technique	Unobservable Input	Range (Weighted-Average) ¹
Other real estate owned	$	4,067	Sales comparison approach	Selling costs	7.0% - 10.0% (7.9%)
	3,542		Combined approach	Selling costs	8.0% - 8.0% (8.0%)
	$	7,609
Collateral-dependent impaired loans, net of ALLL	$	162	Cost approach	Selling costs	0.0% - 20.0% (6.1%)
	9,465		Sales comparison approach	Selling costs	8.0% - 20.0% (8.9%)
				Adjustment to comparables	0.0% - 5.0% (0.0%)
	3,311		Combined approach	Selling costs	10.0% - 10.0% (10.0%)
				Adjustment to comparables	20.0% - 20.0% (20.0%)
	$	12,938

__________

¹The range for selling costs and adjustments to comparables indicate reductions to the fair value.

Carrying amounts and estimated fair values of financial instruments

The following tables present the carrying amounts, estimated fair values and the level within the fair value hierarchy of the Company’s financial instruments:



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Carrying Amount September 30, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	251,413	251,413	—	—
Investment securities, available-for-sale	2,292,079		—	2,292,079	—
Investment securities, held-to-maturity	679,707		—	714,895	—
Loans held for sale	71,069		71,069	—	—
Loans receivable, net of ALLL	5,463,428		—	5,354,017	129,187
Accrued interest receivable	50,138		50,138	—	—
Non-marketable equity securities	20,103		—	20,103	—
Total financial assets	$	8,827,937	372,620	8,381,094	129,187
Financial liabilities
Deposits	$	7,309,319	5,994,226	1,317,757	—
FHLB advances	211,833		—	224,335	—
Repurchase agreements and other borrowed funds	407,199		—	407,199	—
Subordinated debentures	125,956		—	84,084	—
Accrued interest payable	3,439		3,439	—	—
Interest rate swaps	26,526		—	26,526	—
Total financial liabilities	$	8,084,272	5,997,665	2,059,901	—



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Carrying Amount December 31, 2015		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	193,253	193,253	—	—
Investment securities, available-for-sale	2,610,760		—	2,610,760	—
Investment securities, held-to-maturity	702,072		—	729,513	—
Loans held for sale	56,514		56,514	—	—
Loans receivable, net of ALLL	4,948,984		—	4,851,934	132,649
Accrued interest receivable	44,524		44,524	—	—
Non-marketable equity securities	27,495		—	27,495	—
Total financial assets	$	8,583,602	294,291	8,219,702	132,649
Financial liabilities
Deposits	$	6,945,008	5,654,638	1,293,506	—
FHLB advances	394,131		—	401,530	—
Repurchase agreements and other borrowed funds	430,016		—	430,016	—
Subordinated debentures	125,848		—	81,840	—
Accrued interest payable	3,517		3,517	—	—
Interest rate swaps	19,499		—	19,499	—
Total financial liabilities	$	7,918,019	5,658,155	2,226,391	—