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Fair Value of Assets and Liabilities (Tables)
 9 Months Ended
Sep. 30, 2017
Fair Value Disclosures [Abstract]  
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, 2017
 
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
$
34,046

 
—

 
34,046

 
—

U.S. government sponsored enterprises
19,267

 
—

 
19,267

 
—

State and local governments
641,973

 
—

 
641,973

 
—

Corporate bonds
249,990

 
—

 
249,990

 
—

Residential mortgage-backed securities
838,929

 
—

 
838,929

 
—

Commercial mortgage-backed securities
102,312

 
—

 
102,312

 
—

Total assets measured at fair value on a recurring basis
$
1,886,517

 
—

 
1,886,517

 
—

Interest rate swaps
$
12,748

 
—

 
12,748

 
—

Total liabilities measured at fair value on a recurring basis
$
12,748

 
—

 
12,748

 
—


 
 
 
Fair Value Measurements
At the End of the Reporting Period Using
(Dollars in thousands)
Fair Value December 31, 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
$
39,407

 
—

 
39,407

 
—

U.S. government sponsored enterprises
19,570

 
—

 
19,570

 
—

State and local governments
786,373

 
—

 
786,373

 
—

Corporate bonds
471,951

 
—

 
471,951

 
—

Residential mortgage-backed securities
1,007,515

 
—

 
1,007,515

 
—

Commercial mortgage-backed securities
100,661

 
—

 
100,661

 
—

Total assets measured at fair value on a recurring basis
$
2,425,477

 
—

 
2,425,477

 
—

Interest rate swaps
$
14,725

 
—

 
14,725

 
—

Total liabilities measured at fair value on a recurring basis
$
14,725

 
—

 
14,725

 
—
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, 2017
 
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
$
1,616

 
—

 
—

 
1,616

Collateral-dependent impaired loans, net of ALLL
6,442

 
—

 
—

 
6,442

Total assets measured at fair value on a non-recurring basis
$
8,058

 
—

 
—

 
8,058


 
 
 
Fair Value Measurements
At the End of the Reporting Period Using
(Dollars in thousands)
Fair Value December 31, 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
$
7,839

 
—

 
—

 
7,839

Collateral-dependent impaired loans, net of ALLL
5,664

 
—

 
—

 
5,664

Total assets measured at fair value on a non-recurring basis
$
13,503

 
—

 
—

 
13,503
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, 2017
 
Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)
 
Valuation Technique
 
Unobservable Input
 
Range (Weighted-Average) 1
Other real estate owned
$
1,616

 
Sales comparison approach
 
Selling costs
 
8.0% - 10.0% (9.3%)
Collateral-dependent impaired loans, net of ALLL
$
17

 
Cost approach
 
Selling costs
 
20.0% - 20.0% (20.0%)
 
3,020

 
Sales comparison approach
 
Selling costs
 
6.0% - 10.0% (9.2%)
 
3,405

 
Combined approach
 
Selling costs
 
10.0% - 10.0% (10.0%)
 
 
 
 
 
Adjustment to comparables
 
20.0% - 20.0% (20.0%)
 
$
6,442

 
 
 
 
 
 

 
Fair Value December 31, 2016
 
Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)
 
Valuation Technique
 
Unobservable Input
 
Range (Weighted-Average) 1
Other real estate owned
$
7,767

 
Sales comparison approach
 
Selling costs
 
6.0% - 10.0% (6.9%)
 
 
 
 
 
Adjustment to comparables
 
0.0% - 10.0% (0.1%)
 
72

 
Combined approach
 
Selling costs
 
10.0% - 10.0% (10.0%)
 
 
 
 
 
Adjustment to comparables
 
10.0% - 10.0% (10.0%)
 
$
7,839

 
 
 
 
 
 
Collateral-dependent impaired loans, net of ALLL
$
110

 
Cost approach
 
Selling costs
 
6.0% - 20.0% (6.6%)
 
1,982

 
Sales comparison approach
 
Selling costs
 
8.0% - 10.0% (9.6%)
 
3,572

 
Combined approach
 
Selling costs
 
10.0% - 10.0% (10.0%)
 
 
 
 
 
Adjustment to comparables
 
20.0% - 20.0% (20.0%)
 
$
5,664

 
 
 
 
 
 
__________
1 The 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, 2017
 
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
$
220,210

 
220,210

 
—

 
—

Investment securities, available-for-sale
1,886,517

 
—

 
1,886,517

 
—

Investment securities, held-to-maturity
655,128

 
—

 
671,198

 
—

Loans held for sale
48,709

 
48,709

 
—

 
—

Loans receivable, net of ALLL
6,379,857

 
—

 
6,172,843

 
118,816

Accrued interest receivable
50,492

 
50,492

 
—

 
—

Non-marketable equity securities
21,890

 
—

 
21,890

 
—

Total financial assets
$
9,262,803

 
319,411

 
8,752,448

 
118,816

Financial liabilities
 
 
 
 
 
 
 
Deposits
$
7,767,154

 
6,735,130

 
1,035,141

 
—

FHLB advances
153,685

 
—

 
153,814

 
—

Repurchase agreements and other borrowed funds
461,839

 
—

 
461,839

 
—

Subordinated debentures
126,099

 
—

 
90,845

 
—

Accrued interest payable
3,154

 
3,154

 
—

 
—

Interest rate swaps
12,748

 
—

 
12,748

 
—

Total financial liabilities
$
8,524,679

 
6,738,284

 
1,754,387

 
—


 
 
 
Fair Value Measurements
At the End of the Reporting Period Using
(Dollars in thousands)
Carrying Amount December 31, 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
$
152,541

 
152,541

 
—

 
—

Investment securities, available-for-sale
2,425,477

 
—

 
2,425,477

 
—

Investment securities, held-to-maturity
675,674

 
—

 
689,089

 
—

Loans held for sale
72,927

 
72,927

 
—

 
—

Loans receivable, net of ALLL
5,554,891

 
—

 
5,380,286

 
123,382

Accrued interest receivable
45,832

 
45,832

 
—

 
—

Non-marketable equity securities
25,550

 
—

 
25,550

 
—

Total financial assets
$
8,952,892

 
271,300

 
8,520,402

 
123,382

Financial liabilities
 
 
 
 
 
 
 
Deposits
$
7,372,279

 
6,090,879

 
1,283,532

 
—

FHLB advances
251,749

 
—

 
257,643

 
—

Repurchase agreements and other borrowed funds
478,090

 
—

 
478,090

 
—

Subordinated debentures
125,991

 
—

 
85,557

 
—

Accrued interest payable
3,584

 
3,584

 
—

 
—

Interest rate swaps
14,725

 
—

 
14,725

 
—

Total financial liabilities
$
8,246,418

 
6,094,463

 
2,119,547

 
—