Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The tables below present the Corporation’s financial instruments measured at fair value on a recurring basis and carrying amounts and estimated fair values of certain financial instruments as of June 30, 2024 and December 31, 2023, aggregated by the level in the fair value hierarchy within which those measurements fall:


	Jun 30, 2024
($ in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and due from banks	$	470,818	$	470,818	$	470,818	$	—	$	—
Interest-bearing deposits in other financial institutions	484,677		484,677		484,677		—		—
Federal funds sold and securities purchased under agreements to resell	3,600		3,600		3,600		—		—
AFS investment securities:
U.S. Treasury securities	35,638		35,638		35,638		—		—

Obligations of state and political subdivisions (municipal securities)	78,507		78,507		—		78,507		—
Residential mortgage-related securities:
FNMA / FHLMC	1,064,318		1,064,318		—		1,064,318		—
GNMA	2,440,808		2,440,808		—		2,440,808		—

Commercial mortgage-related securities:
FNMA / FHLMC	17,283		17,283		—		17,283		—
GNMA	149,799		149,799		—		149,799		—
Asset backed securities:
FFELP	122,765		122,765		—		122,765		—
SBA	640		640		—		640		—
Other debt securities	2,973		2,973		—		2,973		—
Total AFS investment securities	3,912,730		3,912,730		35,638		3,877,092		—

HTM investment securities:
U.S. Treasury securities	1,000		978		978		—		—
Obligations of state and political subdivisions (municipal securities), net	1,668,410		1,497,587		—		1,497,587		—
Residential mortgage-related securities:
FNMA / FHLMC	916,966		753,657		—		753,657		—
GNMA	46,392		42,536		—		42,536		—
Private-label	335,148		273,892		—		273,892		—
Commercial mortgage-related securities:
FNMA / FHLMC	776,717		630,783		—		630,783		—
GNMA	54,403		47,436		—		47,436		—
Total HTM investment securities, net	3,799,035		3,246,868		978		3,245,890		—

Equity securities:
Equity securities	10,444		10,444		10,382		—		62
Equity securities at NAV	12,500		12,500
Total equity securities	22,944		22,944

FHLB and Federal Reserve Bank stocks	212,102		212,102		—		212,102		—
Residential loans held for sale	83,795		83,795		—		83,795		—

Loans, net	29,208,547		27,884,450		—		—		27,884,450
Bank and corporate owned life insurance	683,451		683,451		—		683,451		—
Mortgage servicing rights, net	85,640		85,640		—		—		85,640
Interest rate-related instruments designated as hedging instruments(a)	3,036		3,036		—		3,036		—
Foreign currency exchange forwards designated as hedging instruments(a)	136		136		—		136		—
Interest rate-related and other instruments not designated as hedging instruments(a)	106,277		106,277		—		106,277		—
Foreign currency exchange forwards not designated as hedging instruments(a)	2,700		2,700		—		2,700		—
Interest rate lock commitments to originate residential mortgage loans held for sale	766		766		—		—		766

Total selected assets at fair value	$	39,080,255	$	37,203,991	$	1,006,092	$	8,214,480	$	27,970,919

(a) Figures are presented gross before netting. See Note 9 and Note 10 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.


	Jun 30, 2024
($ in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Liabilities
Deposits:
Noninterest-bearing demand	$	5,815,045	$	5,815,045	$	—	$	—	$	5,815,045
Savings	5,157,103		5,157,103		—		—		5,157,103
Interest-bearing demand	8,284,017		8,284,017		—		—		8,284,017
Money market	6,294,895		6,294,895		—		—		6,294,895
Brokered CDs(a)	4,061,578		4,061,578		—		4,061,578		—
Other time deposits(a)	3,078,401		3,078,401		—		3,078,401		—
Total deposits	32,691,039		32,691,039		—		7,139,979		25,551,061
Short-term funding:
Federal funds purchased and securities sold under agreements to repurchase	359,539		359,532		—		359,532		—
BTFP funding	500,000		497,973		—		497,973		—
Total short-term funding	859,539		857,505		—		857,505		—

FHLB advances	2,673,046		2,672,221		—		2,672,221		—
Other long-term funding	536,113		530,211		—		530,211		—
Standby letters of credit(b)	2,536		2,536		—		2,536		—
Interest rate-related instruments designated as hedging instruments(c)	12,880		12,880		—		12,880		—
Foreign currency exchange forwards designated as hedging instruments(c)	337		337		—		337		—
Interest rate-related and other instruments not designated as hedging instruments(c)	207,471		207,471		—		207,471		—
Foreign currency exchange forwards not designated as hedging instruments(c)	2,514		2,514		—		2,514		—

Forward commitments to sell residential mortgage loans	95		95		—		—		95
Total selected liabilities at fair value	$	36,985,572	$	36,976,810	$	—	$	11,425,654	$	25,551,156

(a) When the estimated fair value is less than the carrying value, the carrying value is reported as the fair value.
(b) The commitment on standby letters of credit was $252 million at June 30, 2024. See Note 11 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments.
(c) Figures are presented gross before netting. See Note 9 and Note 10 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.


	Dec 31, 2023
($ in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and due from banks	$	484,384	$	484,384	$	484,384	$	—	$	—
Interest-bearing deposits in other financial institutions	425,089		425,089		425,089		—		—
Federal funds sold and securities purchased under agreements to resell	14,350		14,350		14,350		—		—
AFS investment securities:
U.S. Treasury securities	35,902		35,902		35,902		—		—

Obligations of state and political subdivisions (municipal securities)	91,817		91,817		—		91,817		—
Residential mortgage-related securities:
FNMA / FHLMC	1,120,794		1,120,794		—		1,120,794		—
GNMA	2,042,675		2,042,675		—		2,042,675		—

Commercial mortgage-related securities:
FNMA / FHLMC	16,937		16,937		—		16,937		—
GNMA	154,793		154,793		—		154,793		—
Asset backed securities:
FFELP	133,975		133,975		—		133,975		—
SBA	1,051		1,051		—		1,051		—
Other debt securities	2,950		2,950		—		2,950		—
Total AFS investment securities	3,600,892		3,600,892		35,902		3,564,990		—

HTM investment securities:
U.S. Treasury securities	999		963		963		—		—
Obligations of state and political subdivisions (municipal securities), net	1,682,398		1,553,984		—		1,553,984		—
Residential mortgage-related securities:
FNMA / FHLMC	941,973		804,393		—		804,393		—
GNMA	48,979		46,170		—		46,170		—
Private-label	345,083		289,507		—		289,507		—
Commercial mortgage-related securities:
FNMA / FHLMC	780,995		632,914		—		632,914		—
GNMA	59,733		52,619		—		52,619		—
Total HTM investment securities, net	3,860,160		3,380,550		963		3,379,586		—

Equity securities:
Equity securities	31,651		31,651		6,883		—		24,769
Equity securities at NAV	10,000		10,000
Total equity securities	41,651		41,651

FHLB and Federal Reserve Bank stocks	229,171		229,171		—		229,171		—
Residential loans held for sale	33,011		33,011		—		33,011		—
Commercial loans held for sale	90,303		90,303		—		90,303		—
Loans, net	28,865,124		27,371,086		—		—		27,371,086
Bank and corporate owned life insurance	682,649		682,649		—		682,649		—
Mortgage servicing rights, net	84,390		84,390		—		—		84,390
Interest rate-related instruments designated as hedging instruments(a)	8,075		8,075		—		8,075		—
Foreign currency exchange forwards designated as hedging instruments(a)	632		632		—		632		—
Interest rate-related and other instruments not designated as hedging instruments(a)	111,623		111,623		—		111,623		—
Foreign currency exchange forwards not designated as hedging instruments(a)	2,954		2,954		—		2,954		—
Interest rate lock commitments to originate residential mortgage loans held for sale	439		439		—		—		439

Total selected assets at fair value	$	38,534,897	$	36,561,249	$	967,570	$	8,102,995	$	27,480,684


	Dec 31, 2023
($ in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Liabilities
Deposits:
Noninterest-bearing demand	$	6,119,956	$	6,119,956	$	—	$	—	$	6,119,956
Savings	4,835,701		4,835,701		—		—		4,835,701
Interest-bearing demand	8,843,967		8,843,967		—		—		8,843,967
Money market	6,330,453		6,330,453		—		—		6,330,453
Brokered CDs(a)	4,447,479		4,447,479		—		4,447,479		—
Other time deposits(a)	2,868,494		2,868,494		—		2,868,494		—
Total deposits	33,446,049		33,446,049		—		7,315,973		26,130,076

Federal funds purchased and securities sold under agreements to repurchase	326,780		326,757		—		326,757		—



FHLB advances	1,940,194		1,944,600		—		1,944,600		—
Other long-term funding	541,269		534,983		—		534,983		—
Standby letters of credit(b)	2,157		2,157		—		2,157		—
Interest rate-related instruments designated as hedging instruments(c)	930		930		—		930		—
Foreign currency exchange forwards designated as hedging instruments(c)	2,946		2,946		—		2,946		—
Interest rate-related and other instruments not designated as hedging instruments(c)	195,662		195,662		—		195,662		—
Foreign currency exchange forwards not designated as hedging instruments(c)	2,746		2,746		—		2,746		—

Forward commitments to sell residential mortgage loans	673		673		—		—		673
Total selected liabilities at fair value	$	36,459,407	$	36,457,504	$	—	$	10,326,755	$	26,130,749

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

(b) The commitment on standby letters of credit was $212 million at December 31, 2023. See Note 11 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments.

(c) Figures are presented gross before netting. See Note 9 and Note 10 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 six months ended June 30, 2024 and the year ended December 31, 2023, 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, 2022	$	86	$	46	$	40
New production	6,557		(1,816)		8,373
Closed loans / settlements	(4,171)		2,494		(6,665)
Other	(2,033)		(51)		(1,982)
Change in mortgage derivative	352		627		(274)

Balance December 31, 2023	$	439	$	673	$	(234)
New production	$	6,153	$	(1,414)	$	7,567
Closed loans / settlements	(3,857)		1,028		(4,885)
Other	(1,969)		(192)		(1,777)
Change in mortgage derivative	327		(578)		905

Balance June 30, 2024	$	766	$	95	$	671

Equity Securities without Readily Determinable Fair Value [Table Text Block]

The following table presents a rollforward of the fair value of Level 3 equity securities, for the six months ended June 30, 2024 and the year ended December 31, 2023, that are measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes:


($ in thousands)
Fair value as of December 31, 2022	$	19,225
Gains recognized in investment securities gains, net	5,861

Purchases	11
Sales	(329)

Fair value as of December 31, 2023	$	24,769

Gains recognized in investment securities gains, net	$	4,054
Purchases	12
Sales	(28,772)

Fair value as of June 30, 2024	$	62

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(a)

Jun 30, 2024

Assets

Individually evaluated loans

Level 3

53,881

Provision for credit losses

22,095

OREO(b)

Level 2

192

Other noninterest expense / provision for credit losses(c)

263

Dec 31, 2024

Assets

Individually evaluated loans

Level 3

47,221

Provision for credit losses

45,709

OREO(b)

Level 2

3,139

Other noninterest expense / provision for credit losses(c)

2,532

Equity securities without readily determinable fair values

Level 3

24,671

Investment securities gains (losses), net

5,785

(a) Includes the YTD impact on the consolidated statements of income.

(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) 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 the unobservable inputs that are readily quantifiable pertaining to Level 3 measurements:


Jun 30, 2024	Valuation Technique	Significant Unobservable Input	Range of Inputs			Weighted Average Input Applied
Mortgage servicing rights	Discounted cash flow	Option adjusted spread	5%	-	8%	5%
Mortgage servicing rights	Discounted cash flow	Constant prepayment rate	—%	-	100%	6%
Individually evaluated loans	Appraisals / Discounted cash flow	Collateral / Discount factor	—%	-	81%	56%
Interest rate lock commitments to originate residential mortgage loans held for sale	Discounted cash flow	Closing Ratio	35%	-	100%	87%

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details