Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value of Financial Assets and Liabilities Measured on Recurring Basis

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of the periods presented, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
	(Dollars in thousands)
September 30, 2015
Securities available for sale:
U.S. Treasury	$	281,297	$	—	$	—	$	281,297
U.S. federal agencies		—		134,486		—		134,486
Mortgage-backed securities		—		7,073		15,457		22,530
States and political subdivisions		—		51,326		—		51,326
Other securities		—		3,455		6,431		9,886
Derivative assets		—		2,357		—		2,357
Derivative liabilities		—		1,335		—		1,335
Loans held for sale		—		12,406		—		12,406
Mortgage servicing intangibles		—		—		350		350

December 31, 2014
Securities available for sale:
U.S. Treasury	$	248,993	$	—	$	—	$	248,993
U.S. federal agencies		—		172,449		—		172,449
Mortgage-backed securities		—		9,425		17,032		26,457
States and political subdivisions		—		53,373		—		53,373
Other securities		—		3,491		11,427		14,918
Derivative assets		—		6,124		—		6,124
Derivative liabilities		—		4,756		—		4,756
Loans held for sale		—		9,433		—		9,433
Mortgage servicing intangibles		—		—		450		450

Changes in Level 3 Assets Measured at Estimated Fair Value on Recurring Basis

The changes in Level 3 assets measured at estimated fair value on a recurring basis during the periods presented were as follows:

	Nine Months Ended September 30
	2015			2014
	(Dollars in thousands)
Balance at the beginning of the year	$	28,909		$	32,002
Purchases, issuances and settlements		(1,070	)		(1,518	)
Sales		(8,593	)		(813	)
Gains included in earnings		7,021			673
Total unrealized (losses) gains		(4,029	)		156
Balance at the end of the period	$	22,238		$	30,500

Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes assets measured at fair value on a nonrecurring basis and the related losses recognized during the period:

	Total Fair Value Level 3		Losses
	(Dollars in thousands)
As of and for the Year-to-date Period Ended September 30, 2015
Impaired loans (less specific allowance)	$	44,559	$	—
Foreclosed assets		213		—
Other real estate owned		7,650		30

As of and for the Year-to-date Period Ended December 31, 2014
Impaired loans (less specific allowance)	$	33,797	$	—
Foreclosed assets		220		—
Other real estate owned		7,859		730

Estimated Fair Values of Financial Instruments

The estimated fair values of the Company’s financial instruments that are reported at amortized cost in the Company’s consolidated balance sheets, segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value, are as follows:

	September 30,				December 31,
	2015				2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(Dollars in thousands)
FINANCIAL ASSETS
Level 2 inputs:
Cash and cash equivalents	$	1,655,061	$	1,655,061	$	1,913,895	$	1,913,895
Securities held for investment		8,333		8,398		8,593		8,671
Level 3 inputs:
Loans, net of allowance for loan losses		3,918,699		3,965,439		3,810,509		3,847,791
FINANCIAL LIABILITIES
Level 2 inputs:
Deposits		5,698,591		5,750,163		5,904,704		5,945,502
Short-term borrowings		3,777		3,777		3,982		3,982
Junior subordinated debentures		26,804		28,123		26,804		31,200
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS
Loan commitments				1,708				1,640
Letters of credit				475				478