Estimated Fair Values (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017 and 2016. 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, 2017				December 31, 2016
(Dollars in thousands)	Carrying value		Fair value		Carrying value		Fair value
Cash and due from banks	$	336,150	$	336,150	$	539,741	$	539,741
Overnight investments	1,387,927		1,387,927		1,872,594		1,872,594
Investment securities available for sale	7,180,180		7,180,180		7,006,580		7,006,580
Investment securities held to maturity	76		81		98		104
Loans held for sale	51,179		51,179		74,401		74,401
Net loans and leases	23,374,932		22,257,803		21,519,083		20,614,548
Receivable from the FDIC for shared-loss agreements	2,223		2,223		4,172		4,172
Income earned not collected	95,249		95,249		79,839		79,839
Federal Home Loan Bank stock	52,685		52,685		43,495		43,495
Mortgage servicing rights	21,945		26,170		20,415		24,446
Deposits	29,266,275		29,230,768		28,161,343		28,135,698
Short-term borrowings	693,807		693,807		603,487		603,487
Long-term obligations	870,240		852,112		832,942		832,201
Payable to the FDIC for shared-loss agreements	101,342		102,684		97,008		100,069
Accrued interest payable	3,952		3,952		3,797		3,797

Assets And Liabilities Carried At Fair Value On A Recurring Basis

Among BancShares’ assets and liabilities, investment securities available for sale and loans held for sale 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, 2017 and December 31, 2016.



	December 31, 2017
			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	$	1,657,864	$	—	$	1,657,864	$	—
Mortgage-backed securities	5,349,426		—		5,349,426		—
Equity securities	105,208		19,341		85,867		—
Corporate bonds	59,963		—		59,963		—
Other	7,719		—		7,719		—
Total investment securities available for sale	$	7,180,180	$	19,341	$	7,160,839	$	—
Loans held for sale	$	51,179	$	—	$	51,179	$	—

	December 31, 2016
			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	$	1,650,319	$	—	$	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	$	—

Fair Value Option

The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for residential real estate originated for sale measured at fair value as of December 31, 2017 and 2016.



	December 31, 2017
(Dollars in thousands)	Fair Value		Aggregate Unpaid Principal Balance		Difference
Originated loans held for sale	$	51,179	$	49,796	$	1,383

	December 31, 2016
	Fair Value		Aggregate Unpaid Principal Balance		Difference
Originated loans held for sale	$	74,401	$	75,893	$	(1,492	)

No originated loans held for sale were 90 or more days past due or on nonaccrual status as of December 31, 2017 and 2016.

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, 2017 and December 31, 2016.



	December 31, 2017
			Fair value measurements using:
(Dollars in thousands)	Fair value		Level 1		Level 2		Level 3
Impaired loans	$	72,539	$	—	$	—	$	72,539
Other real estate remeasured during current year	40,167		—		—		40,167

	December 31, 2016
			Fair value measurements using:
	Fair value		Level 1		Level 2		Level 3
Impaired loans	$	70,977	$	—	$	—	$	70,977
Other real estate remeasured during current year	45,402		—		—		45,402
Mortgage servicing rights	342		—		—		342

- 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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