Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

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 December 31, 2021 and 2020, aggregated by the level in the fair value hierarchy within which those measurements fall:

($ in Thousands)	Fair Value Hierarchy	December 31, 2021		December 31, 2020
Assets
Investment securities AFS
U.S. Treasury securities	Level 1	$	122,957	$	26,531
Agency securities	Level 2	14,897		25,038
Obligations of state and political subdivisions (municipal securities)	Level 2	400,457		450,662
Residential mortgage-related securities
FNMA / FHLMC	Level 2	2,691,879		1,461,241
GNMA	Level 2	67,780		235,537
Private-label	Level 2	329,724		—
Commercial mortgage-related securities
FNMA / FHLMC	Level 2	350,623		22,904
GNMA	Level 2	166,799		524,756
Asset backed securities
FFELP	Level 2	177,325		327,189
SBA	Level 2	6,580		8,584
Other debt securities	Level 2	2,994		3,000
Total investment securities AFS	Level 1	$	122,957	$	26,531
Total investment securities AFS	Level 2	4,209,058		3,058,910
Equity securities with readily determinable fair values	Level 1	4,810		1,661
Residential loans held for sale	Level 2	136,638		129,158
Interest rate-related instruments(a)	Level 2	83,626		192,518
Foreign currency exchange forwards(a)	Level 2	5,490		4,909
Commodity contracts(a)	Level 2	1,264		12,486
Interest rate lock commitments to originate residential mortgage loans held for sale	Level 3	2,617		9,624
Forward commitments to sell residential mortgage loans	Level 3	30		—
Liabilities
Interest rate-related instruments(a)	Level 2	$	26,231	$	25,680
Foreign currency exchange forwards(a)	Level 2	5,441		4,836
Commodity contracts(a)	Level 2	1,248		11,155
Forward commitments to sell residential mortgage loans	Level 3	—		2,046

(a) Figures presented gross before netting. See Note 14 and Note 15 for information relating to the impact of offsetting derivative assets and liabilities and cash collateral with the same counterparty where there is a legally enforceable master netting agreement in place.

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 years ended December 31, 2021 and 2020, for the Corporation's mortgage derivatives measured on a recurring basis and classified within Level 3 of the fair value hierarchy:

($ in Thousands)	Interest rate lock commitments to originate residential mortgage loans held for sale		Forward commitments to sell residential mortgage loans		Total
Balance December 31, 2019	$	2,527	$	710	$	1,817
New production	72,659		(3,505)		76,164
Closed loans / settlements	(76,001)		(12,587)		(63,414)
Other	10,439		17,427		(6,988)
Mortgage derivative gain	7,097		1,335		5,762
Balance December 31, 2020	$	9,624	$	2,046	$	7,579
New production	$	53,686	$	(3,281)	$	56,966
Closed loans / settlements	(53,477)		3,740		(57,217)
Other	(7,216)		(2,535)		(4,680)
Mortgage derivative (loss)	(7,007)		(2,076)		(4,932)
Balance December 31, 2021	$	2,617	$	(30)	$	2,647

Equity Securities without Readily Determinable Fair Value

Also shown are the cumulative upward and downward adjustments for the Corporation's equity securities without readily determinable fair values as of December 31, 2021:

($ in Thousands)
Equity securities without readily determinable fair values
Carrying value as of December 31, 2020	$	13,444
Additions	264
Sales	(33)
Donations	(134)
Carrying value as of December 31, 2021	$	13,542
Cumulative upward carrying value changes between January 1, 2018 and December 31, 2021	$	13,444
Cumulative downward carrying value changes between January 1, 2018 and December 31, 2021	$	—

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:

($ in Thousands)	Fair Value Hierarchy	Fair Value		Consolidated Statements of Income Category of Adjustment Recognized in Income	Adjustment Recognized on the Consolidated Statements of Income(c)
December 31, 2021
Assets
Individually evaluated loans(a)	Level 3	$	69,917	Provision for credit losses	$	(3,045)
OREO(b)	Level 2	21,299		Other noninterest expense / provision for credit losses(d)	7,345
Mortgage servicing rights	Level 3	57,259		Mortgage banking, net	16,186
December 31, 2020
Assets
Individually evaluated loans(a)	Level 3	$	138,752	Provision for credit losses	$	97,519
OREO(b)	Level 2	6,125		Other noninterest expense	3,747
Mortgage servicing rights	Level 3	41,990		Mortgage banking, net	(17,704)

(a) Includes probable TDRs which are individually analyzed, net of the related ACLL.

(b) 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.

(c) Includes the full year impact on the consolidated statements of income.

(d) When a property's value is written down at the time it is transferred to OREO, the charge off is booked to the provision for credit losses. When a property is already in OREO and subsequently written down, the charge off is booked to other noninterest expense.

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:

December 31, 2021	Valuation Technique	Significant Unobservable Input	Range of Inputs			Weighted Average Input Applied
Mortgage servicing rights	Discounted cash flow	Discount rate	9%	-	13%	9%
Mortgage servicing rights	Discounted cash flow	Constant prepayment rate	8%	-	39%	12%
Individually evaluated loans	Appraisals / Discounted cash flow	Collateral / Discount factor	33%	-	61%	38%

Estimated fair values of financial instruments

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

		December 31, 2021				December 31, 2020
($ in Thousands)	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Cash and due from banks	Level 1	$	343,831	$	343,831	$	416,154	$	416,154
Interest-bearing deposits in other financial institutions	Level 1	681,684		681,684		298,759		298,759
Federal funds sold and securities purchased under agreements to resell	Level 1	—		—		1,135		1,135
Investment securities AFS	Level 1	122,957		122,957		26,531		26,531
Investment securities AFS	Level 2	4,209,058		4,209,058		3,058,910		3,058,910
Investment securities HTM, net	Level 1	1,000		1,001		999		1,024
Investment securities HTM, net	Level 2	2,237,947		2,347,608		1,877,939		2,027,852
Equity securities with readily determinable fair values	Level 1	4,810		4,810		1,661		1,661
Equity securities without readily determinable fair values	Level 3	13,542		13,542		13,444		13,444
FHLB and Federal Reserve Bank stocks	Level 2	168,281		168,281		168,280		168,280
Residential loans held for sale	Level 2	136,638		136,638		129,158		129,158
Loans, net	Level 3	23,944,934		23,980,330		24,068,022		24,012,738
Bank and corporate owned life insurance	Level 2	680,021		680,021		679,647		679,647
Derivatives (other assets)(a)	Level 2	90,379		90,379		209,913		209,913
Interest rate lock commitments to originate residential mortgage loans held for sale (other assets)	Level 3	2,617		2,617		9,624		9,624
Forward commitments to sell residential mortgage loans (other assets)	Level 3	30		30		—		—
Financial liabilities
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts	Level 3	$	27,119,167	$	27,119,167	$	24,725,451	$	24,725,451
Brokered CDs and other time deposits(b)	Level 2	1,347,262		1,347,262		1,757,030		1,766,200
Short-term funding	Level 2	354,262		354,248		252,317		252,303
FHLB advances	Level 2	1,621,047		1,680,814		1,632,723		1,760,727
Other long-term funding	Level 2	249,324		265,545		549,465		578,233
Standby letters of credit(c)	Level 2	2,367		2,367		2,731		2,731
Derivatives (accrued expenses and other liabilities)(a)	Level 2	32,921		32,921		41,671		41,671
Forward commitments to sell residential mortgage loans (accrued expenses and other liabilities)	Level 3	—		—		2,046		2,046

(a) Figures presented gross before netting. See Note 14 and Note 15 for information relating to the impact of offsetting derivative assets and liabilities and cash collateral with the same 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 commitment on standby letters of credit was $248 million and $279 million at December 31, 2021 and 2020, respectively. See Note 16 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments.