Estimated Fair Values (Tables)

12 Months Ended

Dec. 31, 2016

Estimated Fair Values For Certain Financial Assets And Financial Liabilities

For all other financial assets and financial liabilities, the carrying value is a reasonable estimate of the fair value as of December 31, 2016 and December 31, 2015. The carrying value and fair value for these assets and liabilities are equivalent because they are relatively short term in nature and there is no interest rate or credit risk that would cause the fair value to differ from the carrying value. Cash and due from banks is classified on the fair value hierarchy as Level 1. Overnight investments, income earned not collected, short-term borrowings and accrued interest payable are considered Level 2. Lastly, the receivable from the FDIC for shared-loss agreements is designated as Level 3.



	December 31, 2016				December 31, 2015
(Dollars in thousands)	Carrying value		Fair value		Carrying value		Fair value
Cash and due from banks	$	539,741	$	539,741	$	534,086	$	534,086
Overnight investments	1,872,594		1,872,594		2,063,132		2,063,132
Investment securities available for sale	7,006,580		7,006,580		6,861,293		6,861,293
Investment securities held to maturity	98		104		255		265
Loans held for sale	74,401		74,401		59,766		59,766
Net loans and leases	21,519,083		20,614,548		20,033,774		19,353,325
Receivable from the FDIC for shared-loss agreements	4,172		4,172		4,054		4,054
Income earned not collected	79,839		79,839		70,036		70,036
Federal Home Loan Bank stock	43,495		43,495		37,511		37,511
Mortgage servicing rights	20,415		24,446		19,351		19,495
Deposits	28,161,343		28,135,698		26,930,755		26,164,472
Short-term borrowings	603,487		603,487		594,733		594,733
Long-term obligations	832,942		832,201		704,155		718,102
FDIC shared-loss payable	97,008		100,069		126,453		131,894
Accrued interest payable	3,797		3,797		5,713		5,713
Interest rate swap ⁽¹⁾	—		—		1,429		1,429

⁽¹⁾The interest rate swap agreement expired in June 2016.

Assets And Liabilities Carried At Fair Value On A Recurring Basis

Among BancShares’ assets and liabilities, investment securities available for sale, loans held for sale and interest rate swaps accounted for as cash flow hedges are reported at their fair values on a recurring basis. For assets and liabilities carried at fair value on a recurring basis, the following table provides fair value information as of December 31, 2016 and December 31, 2015.



	December 31, 2016
			Fair value measurements using:
(Dollars in thousands)	Fair value		Level 1		Level 2		Level 3
Assets measured at fair value
Investment securities available for sale
U.S. Treasury	$	1,650,319	$	—	$	1,650,319	$	—
Government agency	40,398		—		40,398		—
Mortgage-backed securities	5,175,425		—		5,175,425		—
Equity securities	83,507		29,145		54,362		—
Corporate bonds	49,562		—		49,562		—
Other	7,369		—		7,369		—
Total investment securities available for sale	$	7,006,580	$	29,145	$	6,977,435	$	—
Loans held for sale	$	74,401	$	—	$	74,401	$	—

	December 31, 2015
			Fair value measurements using:
	Fair value		Level 1		Level 2		Level 3
Assets measured at fair value
Investment securities available for sale
U.S. Treasury	$	1,674,882	$	—	$	1,674,882	$	—
Government agency	498,660		—		498,660		—
Mortgage-backed securities	4,668,198		—		4,668,198		—
Equity securities	8,893		1,668		7,225		—
Corporate bonds	8,500		—		8,500		—
Other	2,160		—		2,160		—
Total investment securities available for sale	$	6,861,293	$	1,668	$	6,859,625	$	—
Loans held for sale	$	59,766	$	—	$	59,766	$	—
Liabilities measured at fair value
Interest rate swaps accounted for as cash flow hedges	$	1,429	$	—	$	1,429	$	—

Fair Value Option

The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for residential real estate loans held for sale measured at fair value as of December 31, 2016 and 2015.



	December 31, 2016
(Dollars in thousands)	Fair Value		Aggregate Unpaid Principal Balance		Difference
Loans held for sale	$	74,401	$	75,893	$	(1,492	)

	December 31, 2015
	Fair Value		Aggregate Unpaid Principal Balance		Difference
Loans held for sale	$	59,766	$	58,890	$	876

No loans held for sale were 90 or more days past due or on nonaccrual status as of December 31, 2016 and 2015.

The changes in fair value for residential real estate loans held for sale for which we elected the fair value option are included in the table below for the years ended December 31, 2016 and 2015.



	Year ended December 31
(Dollars in thousands)	2016			2015
(Losses) gains from fair value changes on loans held for sale	$	(2,368	)	$	176

Assets And Liabilities Carried At Fair Value On A Nonrecurring Basis

For financial assets and liabilities carried at fair value on a nonrecurring basis, the following table provides fair value information as of December 31, 2016 and December 31, 2015.



	December 31, 2016
			Fair value measurements using:
(Dollars in thousands)	Fair value		Level 1		Level 2		Level 3
Impaired loans	$	70,977	$	—	$	—	$	70,977
Other real estate not covered under shared-loss agreements remeasured during current year	44,963		—		—		44,963
Other real estate covered under shared-loss agreements remeasured during current year	439		—		—		439
Mortgage servicing rights	342		—		—		342

	December 31, 2015
			Fair value measurements using:
	Fair value		Level 1		Level 2		Level 3
Impaired loans	$	64,197	$	—	$	—	$	64,197
Other real estate not covered under shared-loss agreements remeasured during current year	44,571		—		—		44,571
Other real estate covered under shared-loss agreements remeasured during current year	4,403		—		—		4,403
Mortgage servicing rights	17,997		—		—		17,997

- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

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