Estimated Fair Values (Tables)

12 Months Ended

Dec. 31, 2019

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, 2019 and 2018. 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 and accrued interest payable are considered Level 2.

The table presents the carrying values and estimated fair values for financial instruments as of December 31, 2019 and 2018.



	December 31, 2019				December 31, 2018
(Dollars in thousands)	Carrying value		Fair value		Carrying value		Fair value
Cash and due from banks	$	376,719	$	376,719	$	327,440	$	327,440
Overnight investments	1,107,844		1,107,844		797,406		797,406
Investment securities available for sale	7,059,674		7,059,674		4,557,110		4,557,110
Investment securities held to maturity	30,996		30,996		2,184,653		2,201,502
Investment in marketable equity securities	82,333		82,333		92,599		92,599
Loans held for sale	67,869		67,869		45,505		45,505
Net loans and leases	28,656,355		28,878,550		25,299,564		24,845,060
Income earned not collected	123,154		123,154		109,903		109,903
Federal Home Loan Bank stock	43,039		43,039		25,304		25,304
Mortgage and other servicing rights	24,891		26,927		24,066		27,435
Deposits	34,431,236		34,435,789		30,672,460		30,623,214
Securities sold under customer repurchase agreements	442,956		442,956		543,936		543,936
Federal Home Loan Bank borrowings	572,185		577,362		193,556		195,374
Subordinated debentures	163,412		173,685		140,741		151,670
Other borrowings	148,318		149,232		13,921		13,985
FDIC shared-loss payable	112,395		114,252		105,618		105,846
Accrued interest payable	18,124		18,124		3,712		3,712

Assets And Liabilities Carried At Fair Value On A Recurring Basis

Among BancShares’ assets and liabilities, investment securities available for sale, marketable equity securities 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, 2019 and 2018.



	December 31, 2019
			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	$	409,999	$	—	$	409,999	$	—
Government agency	682,772		—		682,772		—
Residential mortgage-backed securities	5,267,090		—		5,267,090		—
Commercial mortgage-backed securities	380,020		—		380,020		—
Corporate bonds	201,566		—		131,881		69,685
State, county and municipal	118,227		—		118,227		—
Total investment securities available for sale	$	7,059,674	$	—	$	6,989,989	$	69,685
Marketable equity securities	$	82,333	$	29,458	$	52,875	—
Loans held for sale	67,869		—		67,869		—

	December 31, 2018
			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	$	1,247,710	$	—	$	1,247,710	$	—
Government agency	256,835		—		256,835		—
Residential mortgage-backed securities	2,909,339		—		2,909,339		—
Corporate bonds	143,226		—		—		143,226
Total investment securities available for sale	$	4,557,110	$	—	$	4,413,884	$	143,226
Marketable equity securities	$	92,599	$	17,887	$	74,712	$	—
Loans held for sale	45,505		—		45,505		—

Fair Value of Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table summarizes activity for Level 3 assets:



	December 31, 2019
(Dollars in thousands)	Corporate bonds
Balance at January 1, 2019	$	143,226
Purchases⁽¹⁾	35,993
Unrealized net gains included in other comprehensive income	3,891
Amounts included in net income	174
Transfers out	(112,599		)
Sales / Calls	(1,000		)
Balance at December 31, 2019	$	69,685
⁽¹⁾Includes Corporate bonds of $500 thousand acquired in Entegra transaction.

Fair Value Level 3 Significant Unobservable Input Assumptions

The following table presents quantitative information about Level 3 fair value measurements for fair value on a recurring basis at December 31, 2019.



(Dollars in thousands)			December 31, 2019
Level 3 assets	Valuation technique	Significant unobservable input	Fair Value
Corporate bonds	Indicative bid provided by broker	Multiple factors, including but not limited to, current operations, financial condition, cash flows, and recently executed financing transactions related to the issuer	$	69,685

Fair Value Option

The following table summarizes the difference between the aggregate fair value and the unpaid principal balance for residential real estate loans originated for sale measured at fair value as of December 31, 2019 and 2018.



	December 31, 2019
(Dollars in thousands)	Fair Value		Unpaid Principal Balance		Difference
Originated loans held for sale	$	67,869	$	65,697	$	2,172

	December 31, 2018
	Fair Value		Unpaid Principal Balance		Difference
Originated loans held for sale	$	45,505	$	44,073	$	1,432

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, 2019 and December 31, 2018.



	December 31, 2019
			Fair value measurements using:
(Dollars in thousands)	Fair value		Level 1		Level 2		Level 3
Impaired loans	132,336		—		—		132,336
Other real estate remeasured during current year	38,310		—		—		38,310
Mortgage servicing rights	3,757		—		—		3,757

	December 31, 2018
			Fair value measurements using:
	Fair value		Level 1		Level 2		Level 3
Impaired loans	$	105,994	$	—	$	—	$	105,994
Other real estate remeasured during current year	35,344		—		—		35,344