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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 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 September 30, 2019 and December 31, 2018, aggregated by the level in the fair value hierarchy within which those measurements fall:
 ($ in Thousands)
Fair Value Hierarchy
 
September 30, 2019
 
December 31, 2018
Assets
 
 
 
 
 
Investment securities available for sale
 
 
 
 
 
U.S. Treasury securities
 Level 1
 
$
—

 
$
999

Obligations of state and political subdivisions (municipal securities)
Level 2
 
553,418

 
—

Residential mortgage-related securities
 
 
 
 
 
FNMA / FHLMC
 Level 2
 
143,009

 
295,252

GNMA
 Level 2
 
1,080,584

 
2,128,531

Private-label
 Level 2
 
758

 
1,003

Commercial mortgage-related securities
 
 
 
 
 
FNMA / FHLMC
Level 2
 
21,791

 
—

GNMA
 Level 2
 
1,363,948

 
1,220,797

FFELP asset backed securities
 Level 2
 
269,789

 
297,360

Other debt securities
 Level 2
 
2,993

 
3,000

Total investment securities available for sale
 Level 1
 
$
—

 
$
999

Total investment securities available for sale
 Level 2
 
$
3,436,289

 
$
3,945,943

Equity securities with readily determinable fair values
 Level 1
 
1,652

 
1,568

Residential loans held for sale
 Level 2
 
137,655

 
64,321

Interest rate-related instruments(a)
 Level 2
 
100,376

 
52,796

Foreign currency exchange forwards(a)
 Level 2
 
3,153

 
721

Commodity contracts(a)
 Level 2
 
25,388

 
35,426

Purchased options (time deposit)
 Level 2
 
13

 
109

Interest rate products (designated as hedging instruments)
Level 2
 
114

 
—

Interest rate lock commitments to originate residential mortgage loans held for sale
 Level 3
 
2,017

 
2,208

Liabilities
 
 
 
 
 
Interest rate-related instruments(a)
 Level 2
 
$
17,586

 
$
52,653

Foreign currency exchange forwards(a)
 Level 2
 
2,823

 
675

Commodity contracts(a)
 Level 2
 
24,758

 
34,340

Written options (time deposit)
 Level 2
 
13

 
109

Interest rate products (designated as hedging instruments)
Level 2
 
—

 
40

Forward commitments to sell residential mortgage loans
 Level 3
 
590

 
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 nine months ended September 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:
($ in Thousands)
Derivative Financial
Instruments
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)
1,292

Balance September 30, 2019
$
1,428
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 September 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 September 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 September 30, 2019
$
13,444

 
 
Cumulative upward carrying value changes between January 1, 2018 and September 30, 2019
$
13,444

Cumulative downward carrying value changes/impairment between January 1, 2018 and September 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
September 30, 2019
 
 
 
 
 
 
Assets
 
 
 
 
Impaired loans(a)
Level 3
 
$
51,501

Provision for credit losses(b)
 
$
(60,627
)
OREO(c)
Level 2
 
2,413

Other noninterest expense
 
(1,453
)
Mortgage servicing rights
Level 3
 
70,241

Mortgage banking, net
 
(177
)
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
)
OREO(c)
Level 2
 
2,200

Other noninterest expense
 
(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
September 30, 2019
Mortgage servicing rights
Discounted cash flow
 
Discount rate
 
9%
Mortgage servicing rights
Discounted cash flow
 
Constant prepayment rate
 
13%
Impaired Loans
Appraisals / Discounted cash flow
 
Collateral / Discount factor
 
48%
Estimated fair values of financial instruments
Fair value estimates are set forth below for the Corporation’s financial instruments:
 
 
 
September 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
 
$
523,435

 
$
523,435

 
$
507,187

 
$
507,187

Interest-bearing deposits in other financial institutions
 Level 1
 
236,010

 
236,010

 
221,226

 
221,226

Federal funds sold and securities purchased under agreements to resell
 Level 1
 
100

 
100

 
148,285

 
148,285

Investment securities held to maturity
Level 1
 
999

 
1,019

 
—

 
—

Investment securities held to maturity
Level 2
 
2,199,420

 
2,280,265

 
2,740,511

 
2,710,271

Investment securities available for sale
 Level 1
 
—

 
—

 
999

 
999

Investment securities available for sale
Level 2
 
3,436,289

 
3,436,289

 
3,945,943

 
3,945,943

Equity securities with readily determinable fair values
Level 1
 
1,652

 
1,652

 
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
 
207,443

 
207,443

 
250,534

 
250,534

Residential loans held for sale
Level 2
 
137,655

 
137,655

 
64,321

 
64,321

Commercial loans held for sale
Level 2
 
11,597

 
11,597

 
14,943

 
14,943

Loans, net
Level 3
 
22,540,285

 
22,422,568

 
22,702,406

 
22,317,395

Bank and corporate owned life insurance
Level 2
 
670,739

 
670,739

 
663,203

 
663,203

Derivatives (other assets)(a)
Level 2
 
129,044

 
129,044

 
89,052

 
89,052

Interest rate lock commitments to originate residential mortgage loans held for sale (other assets)
Level 3
 
2,017

 
2,017

 
2,208

 
2,208

Financial liabilities
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts
Level 3
 
$
21,512,804

 
$
21,512,804

 
$
22,081,992

 
$
22,081,992

Brokered CDs and other time deposits(b)
Level 2
 
2,909,759

 
2,910,112

 
2,815,401

 
2,815,401

Short-term funding(c)
Level 2
 
108,444

 
108,444

 
157,074

 
157,074

Long-term funding
Level 2
 
796,799

 
842,196

 
795,611

 
826,612

FHLB advances
Level 2
 
2,877,727

 
2,938,923

 
3,574,371

 
3,565,572

Standby letters of credit(d)
Level 2
 
2,715

 
2,715

 
2,482

 
2,482

Derivatives (accrued expenses and other liabilities)(a)
Level 2
 
45,180

 
45,180

 
87,817

 
87,817

Forward commitments to sell residential mortgage loans (accrued expenses and other liabilities)
 Level 3
 
590

 
590

 
2,072

 
2,072


(a) Figures are presented gross before netting. See Note 10 Derivative and Hedging Activities and Note 11 Balance Sheet Offsetting for information relating to the impact of netting derivative assets and derivative liabilities as well as the impact from offsetting cash collateral paid to the same derivative counterparty where there is a legally enforceable master netting agreement in place.
(b) When the estimated fair value is less than the carrying value, the carrying value is reported as the fair value.
(c) The carrying amount is a reasonable estimate of fair value for existing short-term funding.
(d) The commitment on standby letters of credit was $272 million at September 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.