Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2019 and December 31, 2018, aggregated by the level in the fair value hierarchy within which those measurements fall:

	Fair Value Hierarchy	June 30, 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	183,722		295,252
GNMA	Level 2	1,331,633		2,128,531
Private-label	Level 2	814		1,003
Commercial mortgage-related securities
FNMA / FHLMC	Level 2	21,102		—
GNMA	Level 2	1,470,048		1,220,797
FFELP asset backed securities	Level 2	273,137		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	3,283,456		3,945,943
Equity securities with readily determinable fair values	Level 1	1,621		1,568
Residential loans held for sale	Level 2	129,303		64,321
Interest rate-related instruments	Level 2	77,264		52,796
Foreign currency exchange forwards	Level 2	2,683		721
Commodity contracts	Level 2	22,498		35,426
Purchased options (time deposit)	Level 2	126		109
Interest rate products (designated as hedging instruments)	Level 2	69		—
Interest rate lock commitments to originate residential mortgage loans held for sale	Level 3	4,869		2,208
Liabilities
Interest rate-related instruments	Level 2	$	15,013	$	52,653
Foreign currency exchange forwards	Level 2	2,425		675
Commodity contracts	Level 2	22,076		34,340
Written options (time deposit)	Level 2	126		109
Interest rate products (designated as hedging instruments)	Level 2	—		40
Forward commitments to sell residential mortgage loans	Level 3	1,903		2,072

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 six months ended June 30, 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)	2,830
Balance June 30, 2019	$	2,969

Equity securities without readily determinable fair value

The following table presents the carrying value of equity securities without readily determinable fair values still held as of June 30, 2019 that are measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes. These securities are included in the nonrecurring fair value tables when applicable price changes are observable. Also shown are the cumulative upward and downward adjustments for the Corporation's equity securities without readily determinable fair values as of June 30, 2019:

	($ in Thousands)
Equity securities without readily determinable fair values
Carrying value as of December 31, 2018	$	—
Upward carrying value changes	13,444
Carrying value as of June 30, 2019	$	13,444
Cumulative upward carrying value changes between January 1, 2018 and June 30, 2019	$	13,444
Cumulative downward carrying value changes/impairment between January 1, 2018 and June 30, 2019	$	—

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
June 30, 2019
Assets
Impaired loans(a)	Level 3	$	74,931	Provision for credit losses(b)	$	(42,735	)
Other real estate owned(c)	Level 2	519		Foreclosure / OREO expense, net	(1,115		)
Mortgage servicing rights	Level 3	69,839		Mortgage banking, net	(146		)
Equity securities	Level 3	13,444		Investment securities gains (losses), net	13,444
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
June 30, 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	34%

Estimated fair values of financial instruments

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

		June 30, 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	$	382,985	$	382,985	$	507,187	$	507,187
Interest-bearing deposits in other financial institutions	Level 1	172,708		172,708		221,226		221,226
Federal funds sold and securities purchased under agreements to resell	Level 1	1,385		1,385		148,285		148,285
Investment securities held to maturity	Level 1	999		1,019		—		—
Investment securities held to maturity	Level 2	2,805,066		2,873,739		2,740,511		2,710,271
Investment securities available for sale	Level 1	—		—		999		999
Investment securities available for sale	Level 2	3,283,456		3,283,456		3,945,943		3,945,943
Equity securities with readily determinable fair values	Level 1	1,621		1,621		1,568		1,568
Equity securities without readily determinable fair values	Level 3	13,444		13,444		—		—
FHLB and Federal Reserve Bank stocks	Level 2	202,758		202,758		250,534		250,534
Residential loans held for sale	Level 2	129,303		129,303		64,321		64,321
Commercial loans held for sale	Level 2	11,000		11,000		14,943		14,943
Loans, net	Level 3	23,016,308		22,767,412		22,702,406		22,317,395
Bank and corporate owned life insurance	Level 2	668,638		668,638		663,203		663,203
Derivatives (other assets)	Level 2	102,641		102,641		89,052		89,052
Interest rate lock commitments to originate residential mortgage loans held for sale	Level 3	4,869		4,869		2,208		2,208
Financial liabilities
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts	Level 3	$	21,906,970	$	21,906,970	$	22,081,992	$	22,081,992
Brokered CDs and other time deposits(a)	Level 2	3,367,252		3,373,332		2,815,401		2,815,401
Short-term funding(b)	Level 2	111,983		111,983		157,074		157,074
Long-term funding	Level 2	796,403		840,323		795,611		826,612
FHLB advances	Level 2	2,742,941		2,781,103		3,574,371		3,565,572
Standby letters of credit(c)	Level 2	2,693		2,693		2,482		2,482
Derivatives (other liabilities)	Level 2	39,641		39,641		87,817		87,817
Forward commitments to sell residential mortgage loans	Level 3	1,903		1,903		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 $265 million at June 30, 2019 and $256 million at 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.