Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Assets and liabilities measured on recurring basis at fair value

The table below presents the Corporation’s financial instruments measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018, aggregated by the level in the fair value hierarchy within which those measurements fall:

	Fair Value Hierarchy	March 31, 2019		December 31, 2018
		($ in Thousands)
Assets
Investment securities available for sale
U.S. Treasury securities	Level 1	$	—	$	999
Residential mortgage-related securities
FNMA / FHLMC	Level 2	242,074		295,252
GNMA	Level 2	2,038,100		2,128,531
Private-label	Level 2	878		1,003
Commercial mortgage-related securities
FNMA / FHLMC	Level 2	20,655		—
GNMA	Level 2	1,247,782		1,220,797
FFELP asset backed securities	Level 2	276,899		297,360
Other debt securities	Level 2	3,000		3,000
Total investment securities available for sale	Level 1	—		999
Total investment securities available for sale	Level 2	3,829,388		3,945,943
Equity securities with readily determinable fair values	Level 1	1,609		1,568
Residential loans held for sale	Level 2	81,392		64,321
Commercial loans held for sale	Level 2	15,467		14,943
Interest rate-related instruments	Level 2	54,479		52,796
Foreign currency exchange forwards	Level 2	1,737		721
Interest rate lock commitments to originate residential mortgage loans held for sale	Level 3	3,032		2,208
Commodity contracts	Level 2	21,705		35,426
Purchased options (time deposit)	Level 2	156		109
Liabilities
Interest rate-related instruments	Level 2	$	55,008	$	52,653
Foreign currency exchange forwards	Level 2	1,665		675
Forward commitments to sell residential mortgage loans	Level 3	1,825		2,072
Commodity contracts	Level 2	21,186		34,340
Written options (time deposit)	Level 2	156		109
Interest rate products (designated as hedging instruments)	Level 2	128		40

Assets and liabilities measured at fair value using significant unobservable inputs (level 3)

The table below presents a rollforward of the consolidated balance sheets amounts for the three months ended March 31, 2019 and the year ended December 31, 2018, for financial instruments measured on a recurring basis and classified within Level 3 of the fair value hierarchy:

	Derivative Financial Instruments
	($ in Thousands)
Balance December 31, 2017	$	1,225
Total net gains (losses) included in income
Mortgage derivative gain (loss)	(1,085		)
Balance December 31, 2018	$	140
Total net gains (losses) included in income
Mortgage derivative gain (loss)	1,072
Balance March 31, 2019	$	1,211

Assets and liabilities measured on nonrecurring basis at fair value

The table below presents the Corporation’s assets measured at fair value on a nonrecurring basis, aggregated by the level in the fair value hierarchy within which those measurements fall:

				Consolidated Statements of Income Category of Adjustment  Recognized in Income	Adjustment Recognized in the Consolidated Statements of Income
($ in Thousands)	Fair Value Hierarchy	Fair Value
March 31, 2019
Assets
Impaired loans(a)	Level 3	$	52,831	Provision for credit losses(b)	$	(18,529	)
Other real estate owned(c)	Level 2	183		Foreclosure / OREO expense, net	(148		)
Mortgage servicing rights	Level 3	73,858		Mortgage banking, net	(121		)
December 31, 2018
Assets
Impaired loans(a)	Level 3	$	26,191	Provision for credit losses(b)	$	(14,521	)
Other real estate owned(c)	Level 2	2,200		Foreclosure / OREO expense, net	(1,545		)
Mortgage servicing rights	Level 3	81,012		Mortgage banking, net	545

(a) Represents individually evaluated impaired loans, net of the related allowance for loan losses.

(b) Represents provision for credit losses on individually evaluated impaired loans.

(c) If the fair value of the collateral exceeds the carrying amount of the asset, no charge off or adjustment is necessary, the asset is not considered to be carried at fair value, and is therefore not included in the table.

Schedule of assumptions for fair value as of balance sheet date of assets or liabilities that relate to transferor's continuing involvement

The table below presents information about these inputs and further discussion is found above:

	Valuation Technique	Significant Unobservable Input	Weighted Average Input Applied
March 31, 2019
Mortgage servicing rights	Discounted cash flow	Discount rate	11%
Mortgage servicing rights	Discounted cash flow	Constant prepayment rate	12%
Impaired Loans	Appraisals / Discounted cash flow	Collateral / Discount factor	27%

Estimated fair values of financial instruments

Fair value estimates are set forth below for the Corporation’s financial instruments:

		March 31, 2019				December 31, 2018
	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
		($ in Thousands)
Financial assets
Cash and due from banks	Level 1	$	334,095	$	334,095	$	507,187	$	507,187
Interest-bearing deposits in other financial institutions	Level 1	270,843		270,843		221,226		221,226
Federal funds sold and securities purchased under agreements to resell	Level 1	41,405		41,405		148,285		148,285
Investment securities held to maturity	Level 1	999		1,007		—		—
Investment securities held to maturity	Level 2	2,845,690		2,867,864		2,740,511		2,710,271
Investment securities available for sale	Level 1	—		—		999		999
Investment securities available for sale	Level 2	3,829,388		3,829,388		3,945,943		3,945,943
Equity securities with readily determinable fair values	Level 1	1,609		1,609		1,568		1,568
FHLB and Federal Reserve Bank stocks	Level 2	216,940		216,940		250,534		250,534
Residential loans held for sale	Level 2	81,392		81,392		64,321		64,321
Commercial loans held for sale	Level 2	15,467		15,467		14,943		14,943
Loans, net	Level 3	22,913,278		22,626,091		22,702,406		22,317,395
Bank and corporate owned life insurance	Level 2	665,976		665,976		663,203		663,203
Derivatives (trading assets)	Level 2	77,920		77,920		88,943		88,943
Derivatives (other assets)	Level 2	156		156		109		109
Interest rate lock commitments to originate residential mortgage loans held for sale	Level 3	3,032		3,032		2,208		2,208
Financial liabilities
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts	Level 3	$	21,781,392	$	21,781,392	$	22,081,992	$	22,081,992
Brokered CDs and other time deposits(a)	Level 2	3,751,665		3,751,665		2,815,401		2,815,401
Short-term funding(b)	Level 2	179,117		179,117		1,057,074		1,057,074
Long-term funding	Level 2	3,720,776		3,761,004		3,469,982		3,492,174
Standby letters of credit(c)	Level 2	2,478		2,478		2,482		2,482
Derivatives (trading liabilities)	Level 2	77,859		77,859		87,668		87,668
Derivatives (other liabilities)	Level 2	284		284		149		149
Forward commitments to sell residential mortgage loans	Level 3	1,825		1,825		2,072		2,072

(a) When the estimated fair value is less than the carrying value, the carrying value is reported as the fair value.

(b) The carrying amount is a reasonable estimate of fair value for existing short-term funding.

(c) The commitment on standby letters of credit was $256 million at both March 31, 2019 and December 31, 2018. See Note 12 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments.