Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Summary of assets measured at fair value on a recurring basis

For assets and liabilities measured at fair value on a recurring basis, quantitative disclosures about the fair value measurements for each major category of assets and liabilities follow:



(Dollars in thousands)	Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
March 31, 2019
Investment securities – carried at fair value:
Government and government-sponsored enterprises	$	—	$	387,390	$	—	$	387,390
State and political subdivisions	—		554,743		—		554,743
Residential mortgage-backed securities	—		202,240		—		202,240
Collateralized mortgage obligations	—		1,802,924		—		1,802,924
Corporate bonds	—		306,147		—		306,147
Trust preferred securities	—		47,610		—		47,610
Total investment securities – carried at fair value	—		3,301,054		—		3,301,054
Loans held-for-sale	—		23,535		—		23,535
Loan servicing rights	—		—		64,701		64,701
Derivative assets:
Customer-initiated derivatives	—		39,398		—		39,398
Interest rate lock commitments	—		1,758		—		1,758
Power Equity CD	—		881		—		881
Risk management derivatives	—		5,322		—		5,322
Total derivatives	—		47,359		—		47,359
Total assets at fair value	$	—	$	3,371,948	$	64,701	$	3,436,649
Derivative liabilities:
Customer-initiated derivatives	—		40,672		—		40,672
Forward contracts related to mortgage loans to be delivered for sale	—		653		—		653
Power Equity CD	—		881		—		881
Risk management derivatives	—		7,292		—		7,292
Total derivatives	—		49,498		—		49,498
Total liabilities at fair value	$	—	$	49,498	$	—	$	49,498

Summary of changes in Level 3 assets measured at fair value on a recurring basis

The following table summarizes the changes in Level 3 assets measured at fair value on a recurring basis.



	Three Months Ended March 31,
	2019			2018
(Dollars in thousands)	Loan servicing rights
Balance, beginning of period	$	71,013		$	63,841
Gains (losses):
Recorded in earnings (realized):
Recorded in "Net gain on sale of loans and other mortgage banking revenue"	(8,445		)	3,029
New originations	2,133			1,967
Balance, end of period	$	64,701		$	68,837

Schedule of aggregate fair value contractual balance and gain (loss) for loans held-for-sale

The aggregate fair value, contractual balance (including accrued interest), and gain or loss for loans held-for-sale carried at fair value option was as follows:



(Dollars in thousands)	March 31, 2019		December 31, 2018
Aggregate fair value	$	23,535	$	85,030
Contractual balance	22,660		82,080
Unrealized gain	875		2,950

Amount of gains (losses) from loans held for sale included in the Consolidated Statements of Income

The total amount of gains from loans held-for-sale included in the Consolidated Statements of Income was as follows:



	Three Months Ended March 31,
(Dollars in thousands)	2019			2018
Interest income⁽¹⁾	$	633		$	376
Change in fair value⁽²⁾	(2,075		)	(700		)
Net gain on sales of loans⁽²⁾	6,150			1,508
Total included in earnings	$	4,708		$	1,184


⁽¹⁾	Included in "Interest and fees on loans" in the Consolidated Statements of Income.


⁽²⁾	Included in "Net gain on sale of loans and other mortgage banking revenue" in the Consolidated Statements of Income

Summary of assets measured at fair value on a nonrecurring basis

For assets measured at fair value on a nonrecurring basis, quantitative disclosures about fair value measurements for each major category of assets follow:



(Dollars in thousands)	Significant Unobservable Inputs (Level 3)
March 31, 2019
Impaired loans	$	62,118
Other real estate and repossessed assets	1,360
Total	$	63,478
December 31, 2018
Impaired loans	$	63,247
Other real estate and repossessed assets	883
Total	$	64,130

Additional information about significant unobservable inputs used in the fair value measurement of financial assets

The following table presents additional information about the significant unobservable inputs used in the fair value measurement of financial assets measured on a nonrecurring basis that were categorized within the Level 3 of the fair value hierarchy:



(Dollars in thousands)	Fair Value at March 31, 2019		Valuation Technique	Significant Unobservable Inputs	Range
Impaired loans	$	62,118	Appraisal of collateral	Discount for type of collateral and age of appraisal	20%-30%
Other real estate and repossessed assets	1,360		Appraisal of property	Discount for type of property and age of appraisal	20%-30%

Summary of carrying amounts and estimated fair values of the financial instruments

A summary of carrying amounts and estimated fair values of the Corporation's financial instruments not recorded at fair value in their entirety on a recurring basis on the Consolidated Statements of Financial Position are disclosed in the table below.



	Level in Fair Value Measurement Hierarchy	March 31, 2019				December 31, 2018
(Dollars in thousands)	Level in Fair Value Measurement Hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Investment securities:
Held-to-maturity	Level 2	$	622,019	$	627,165	$	623,599	$	618,232
Held-to-maturity	Level 3	500		450		500		440
Net loans⁽¹⁾	Level 3	15,213,764		15,084,122		15,159,795		14,907,789
Financial liabilities:
Time deposits	Level 2	$	4,334,669	$	4,315,319	$	4,074,248	$	4,041,212
Collateralized customer deposits	Level 2	413,199		413,075		382,687		382,370
Short-term borrowings	Level 2	1,740,000		1,739,883		2,035,000		2,034,719
Long-term borrowings	Level 2	426,035		424,613		426,002		423,258


⁽¹⁾	Included $62.1 million and $63.2 million of impaired loans recorded at fair value on a nonrecurring basis at March 31, 2019 and December 31, 2018, respectively.