Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2017

Fair value measurement of assets and liabilities measured at fair value on a recurring basis

The following tables disclose the fair value measurement of assets and liabilities measured at fair value on a recurring basis:



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Fair Value June 30, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Investment securities, available-for-sale
U.S. government and federal agency	$	35,611	—	35,611	—
U.S. government sponsored enterprises	19,274		—	19,274	—
State and local governments	667,903		—	667,903	—
Corporate bonds	422,369		—	422,369	—
Residential mortgage-backed securities	896,364		—	896,364	—
Commercial mortgage-backed securities	100,951		—	100,951	—
Total assets measured at fair value on a recurring basis	$	2,142,472	—	2,142,472	—
Interest rate swaps	$	13,975	—	13,975	—
Total liabilities measured at fair value on a recurring basis	$	13,975	—	13,975	—



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Fair Value December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Investment securities, available-for-sale
U.S. government and federal agency	$	39,407	—	39,407	—
U.S. government sponsored enterprises	19,570		—	19,570	—
State and local governments	786,373		—	786,373	—
Corporate bonds	471,951		—	471,951	—
Residential mortgage-backed securities	1,007,515		—	1,007,515	—
Commercial mortgage-backed securities	100,661		—	100,661	—
Total assets measured at fair value on a recurring basis	$	2,425,477	—	2,425,477	—
Interest rate swaps	$	14,725	—	14,725	—
Total liabilities measured at fair value on a recurring basis	$	14,725	—	14,725	—

Fair value measurement of assets measured at fair value on a non-recurring basis

The following tables disclose the fair value measurement of assets with a recorded change during the period resulting from re-measuring the assets at fair value on a non-recurring basis:



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Fair Value June 30, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Other real estate owned	$	785	—	—	785
Collateral-dependent impaired loans, net of ALLL	8,107		—	—	8,107
Total assets measured at fair value on a non-recurring basis	$	8,892	—	—	8,892



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Fair Value December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Other real estate owned	$	7,839	—	—	7,839
Collateral-dependent impaired loans, net of ALLL	5,664		—	—	5,664
Total assets measured at fair value on a non-recurring basis	$	13,503	—	—	13,503

Quantitative information about assets measured at fair value on a non-recurring basis for which Level 3 inputs were used

The following tables present additional quantitative information about assets measured at fair value on a non-recurring basis and for which the Company has utilized Level 3 inputs to determine fair value:



	Fair Value June 30, 2017		Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	Fair Value June 30, 2017		Valuation Technique	Unobservable Input	Range (Weighted-Average) ¹
Other real estate owned	$	785	Sales comparison approach	Selling costs	8.0% - 10.0% (8.9%)
Collateral-dependent impaired loans, net of ALLL	$	5	Cost approach	Selling costs	20.0% - 20.0% (20.0%)
	2,198		Sales comparison approach	Selling costs	8.0% - 15.0% (9.8%)
	5,904		Combined approach	Selling costs	10.0% - 10.0% (10.0%)
				Adjustment to comparables	20.0% - 20.0% (20.0%)
	$	8,107



	Fair Value December 31, 2016		Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)	Fair Value December 31, 2016		Valuation Technique	Unobservable Input	Range (Weighted-Average) ¹
Other real estate owned	$	7,767	Sales comparison approach	Selling costs	6.0% - 10.0% (6.9%)
				Adjustment to comparables	0.0% - 10.0% (0.1%)
	72		Combined approach	Selling costs	10.0% - 10.0% (10.0%)
				Adjustment to comparables	10.0% - 10.0% (10.0%)
	$	7,839
Collateral-dependent impaired loans, net of ALLL	$	110	Cost approach	Selling costs	6.0% - 20.0% (6.6%)
	1,982		Sales comparison approach	Selling costs	8.0% - 10.0% (9.6%)
	3,572		Combined approach	Selling costs	10.0% - 10.0% (10.0%)
				Adjustment to comparables	20.0% - 20.0% (20.0%)
	$	5,664

__________

¹The range for selling costs and adjustments to comparables indicate reductions to the fair value.

Carrying amounts and estimated fair values of financial instruments

The following tables present the carrying amounts, estimated fair values and the level within the fair value hierarchy of the Company’s financial instruments:



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Carrying Amount June 30, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	237,590	237,590	—	—
Investment securities, available-for-sale	2,142,472		—	2,142,472	—
Investment securities, held-to-maturity	659,347		—	678,495	—
Loans held for sale	37,726		37,726	—	—
Loans receivable, net of ALLL	6,215,885		—	6,001,018	123,335
Accrued interest receivable	46,921		46,921	—	—
Non-marketable equity securities	23,995		—	23,995	—
Total financial assets	$	9,363,936	322,237	8,845,980	123,335
Financial liabilities
Deposits	$	7,797,963	6,620,121	1,179,662	—
FHLB advances	211,505		—	217,225	—
Repurchase agreements and other borrowed funds	456,867		—	456,867	—
Subordinated debentures	126,063		—	90,807	—
Accrued interest payable	3,535		3,535	—	—
Interest rate swaps	13,975		—	13,975	—
Total financial liabilities	$	8,609,908	6,623,656	1,958,536	—



			Fair Value Measurements At the End of the Reporting Period Using
(Dollars in thousands)	Carrying Amount December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Financial assets
Cash and cash equivalents	$	152,541	152,541	—	—
Investment securities, available-for-sale	2,425,477		—	2,425,477	—
Investment securities, held-to-maturity	675,674		—	689,089	—
Loans held for sale	72,927		72,927	—	—
Loans receivable, net of ALLL	5,554,891		—	5,380,286	123,382
Accrued interest receivable	45,832		45,832	—	—
Non-marketable equity securities	25,550		—	25,550	—
Total financial assets	$	8,952,892	271,300	8,520,402	123,382
Financial liabilities
Deposits	$	7,372,279	6,090,879	1,283,532	—
FHLB advances	251,749		—	257,643	—
Repurchase agreements and other borrowed funds	478,090		—	478,090	—
Subordinated debentures	125,991		—	85,557	—
Accrued interest payable	3,584		3,584	—	—
Interest rate swaps	14,725		—	14,725	—
Total financial liabilities	$	8,246,418	6,094,463	2,119,547	—