Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2016

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, 2016
Securities available for sale:
U.S. Treasury	$	206,123	$	—	$	—	$	206,123
U.S. federal agencies		—		192,648		—		192,648
Mortgage-backed securities		—		5,469		14,816		20,285
States and political subdivisions		—		43,704		—		43,704
Other securities		—		—		6,424		6,424
Derivative assets		—		1,017		—		1,017
Derivative liabilities		—		665		—		665
Loans held for sale		—		9,685		—		9,685

December 31, 2015
Securities available for sale:
U.S. Treasury	$	329,696	$	—	$	—	$	329,696
U.S. federal agencies		—		131,896		—		131,896
Mortgage-backed securities		—		7,039		14,816		21,855
States and political subdivisions		—		50,920		—		50,920
Other securities		—		3,485		6,308		9,793
Derivative assets		—		1,946		—		1,946
Derivative liabilities		—		989		—		989
Loans held for sale		—		13,725		—		13,725

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,
	2016			2015
	(Dollars in thousands)
Balance at the beginning of the year	$	21,124		$	28,459
Purchases		763			609
Settlements		(7	)		(1,679	)
Sales		(426	)		(8,593	)
(Losses) gains included in earnings		(111	)		7,121
Total unrealized losses		(103	)		(4,029	)
Balance at the end of the period	$	21,240		$	21,888

Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes assets measured at fair value on a nonrecurring basis. The fair value represents end of period values, which approximate fair value measurements that occurred on various measurement dates throughout the period. The related losses represent the amounts recognized during the period regardless of whether the asset is still held at period end:

	Total Fair Value Level 3		Losses
	(Dollars in thousands)
As of and for the Year-to-date Period Ended September 30, 2016
Impaired loans (less specific allowance)	$	29,459	$	—
Foreclosed assets		1,117		2
Other real estate owned		3,034		146

As of and for the Year-to-date Period Ended December 31, 2015
Impaired loans (less specific allowance)	$	44,399	$	—
Foreclosed assets		1,097		—
Other real estate owned		4,604		128

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,
	2016				2015
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
	(Dollars in thousands)
FINANCIAL ASSETS
Level 2 inputs:
Cash and cash equivalents	$	1,706,656	$	1,706,656	$	1,598,177	$	1,598,177
Securities held for investment		3,943		3,990		8,289		8,350
Level 3 inputs:
Securities held for investment		611		611		500		500
Loans, net of allowance for loan losses		4,259,766		4,325,916		4,190,382		4,222,153
FINANCIAL LIABILITIES
Level 2 inputs:
Deposits		6,024,949		6,085,613		5,973,538		6,028,012
Short-term borrowings		4,000		4,000		500		500
Junior subordinated debentures		31,959		34,757		31,959		33,793
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS
Loan commitments				1,824				1,681
Letters of credit				428				464