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Derivative and Hedging Activities
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Disclosure [Text Block] Derivative and Hedging Activities
The Corporation enters into derivative financial instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest and currency rates as well as other economic conditions.
At inception, the Corporation designates the derivative contract as either a fair value hedge (i.e., a hedge of the fair value of a recognized asset or liability), a cash flow hedge (i.e., a hedge of the variability of cash flows to be received or paid related to a recognized asset or liability), or a non-designated hedge. The hedge accounting methodologies applied for fair value, cash flow, and non-designated hedges are described in the Derivative and Hedging Activities note in the Corporation's 2024 Annual Report on Form 10-K.
The contract or notional amount of a derivative is used to determine, along with the other terms of the derivative, the amounts to be exchanged between the counterparties. The Corporation is exposed to credit risk in the event of nonperformance by counterparties to financial instruments. To mitigate the counterparty risk, contracts generally contain language outlining collateral pledging requirements for each counterparty. For non-centrally cleared derivatives, collateral must be posted when the market value exceeds certain mutually agreed upon threshold limits. Securities and cash are often pledged as collateral. The Corporation pledged $78.5 million and $81.4 million of investment securities as collateral at June 30, 2025, and December 31, 2024, respectively. Cash is often pledged as collateral for derivatives that are not centrally cleared. The Corporation's required cash collateral was $23.1 million at June 30, 2025 and $0.3 million at December 31, 2024. For fair value information and disclosures and for the Corporation's accounting policy for derivative and hedging activities, see the Fair Value Measurements and Summary of Significant Accounting Policies notes in the Corporation's 2024 Annual Report on Form 10-K.
The following table presents the total notional amounts and gross fair values of the Corporation's derivatives, as well as the balance sheet netting adjustments:
 Jun 30, 2025Dec 31, 2024
AssetLiabilityAssetLiability
(in thousands)Notional AmountFair ValueNotional AmountFair ValueNotional AmountFair ValueNotional AmountFair Value
Designated as hedging instruments:
Interest rate-related instruments(a)
$2,350,000 $10,652 $425,000 $170 $1,950,000 $2,960 $1,150,000 $2,976 
Foreign currency exchange forwards37,962 423 333,589 3,108 127,518 2,457 216,665 563 
Total designated as hedging instruments11,076 3,278 5,418 3,539 
Not designated as hedging instruments:
Interest rate-related and other instruments4,746,901 77,258 6,268,703 123,694 3,858,867 88,541 6,992,894 170,928 
Foreign currency exchange forwards71,948 3,078 76,003 2,912 68,028 4,315 74,199 4,106 
Mortgage banking(b)
83,223 1,921 174,013 1,362 28,580 580 85,000 — 
Total not designated as hedging instruments82,257 127,969 93,436 175,034 
Gross derivatives before netting93,333 131,247 98,854 178,573 
Less: Legally enforceable master netting agreements16,720 16,720 12,667 12,667 
Less: Cash collateral pledged/received13,871 5,671 35,190 250 
Total derivative instruments, after netting$62,742 $108,856 $50,997 $165,656 

(a) The notional amounts of the interest rate-related instruments designated as hedging instruments include forward starting interest rate swaps. As of June 30, 2025 such swaps with effective dates of November 1, 2025 to December 1, 2025 had an asset notional amount and fair value of $300.0 million and $3.0 million, respectively, and a liability notional amount and fair value of $25.0 million and $0, respectively. As of December 31, 2024 such swaps with effective dates ranging from February 1, 2025 to March 1, 2025 had an asset notional amount and fair value of $100.0 million and $0.3 million, respectively, and a liability notional amount and fair value of $300.0 million and $1.4 million, respectively.
(b) The mortgage derivative asset includes interest rate lock commitments, while the mortgage derivative liability includes forward commitments. Given the fair value position as of December 31, 2024, the fair value of the mortgage derivative asset included $0.3 million of interest rate lock commitments and $0.3 million of forward commitments.

The following table presents amounts that were recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges:
Line Item in the Consolidated Balance Sheets in Which the Hedged Item is Included
Carrying Amount of the Hedged Assets/(Liabilities)(a)
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)
Carrying Amount of the Hedged Assets/(Liabilities)(a)
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)
(in thousands)Jun 30, 2025Dec 31, 2024
Other long-term funding$(301,354)$(1,354)$(296,004)$3,996 
FHLB advances(598,003)1,997 (592,256)7,744 
Total$(899,357)$643 $(888,260)$11,740 

(a) Excludes hedged items where only foreign currency risk is the designated hedged risk. At June 30, 2025 and December 31, 2024, the carrying amount excluded for foreign currency denominated loans was $371.6 million and $344.2 million, respectively.
The Corporation terminated its $500.0 million fair value hedge during the fourth quarter of 2019. At June 30, 2025, the amortized cost basis of the closed portfolios which had previously been used in the terminated hedging relationship was $205.4 million and is included in loans on the consolidated balance sheets. This amount includes $0.8 million of hedging adjustments on the discontinued hedging relationships, which are not presented in the table above.
The tables below identify the effect of fair value and cash flow hedge accounting on the Corporation's consolidated statements of income:
Location and Amount Recognized on the Consolidated Statements of Income in
Fair Value and Cash Flow Hedging Relationships
Three Months Ended Jun 30,Six Months Ended Jun 30,
2025202420252024
(in thousands)Interest Income Interest (Expense)Interest IncomeInterest (Expense)Interest IncomeInterest (Expense)Interest IncomeInterest (Expense)
Total amounts of income/expense presented on the consolidated statements of income in which the effects of the fair value or cash flow hedges are recorded(a)
$(1,464)$(1,942)$(4,805)$(5,367)$(2,614)$(4,160)$(9,668)$(10,689)
The effects of fair value and cash flow hedging: Impact on fair value hedging relationships in Subtopic 815-20
Interest contracts:
Hedged items (27)(4,099)(36)(431)(58)(11,096)(76)9,779 
Derivatives designated as hedging instruments(a)
(1,437)2,158 (4,769)(4,935)(2,555)6,936 (9,592)(20,468)
(a) Includes net settlements on the derivatives.
Location and Amount Recognized on the Consolidated Statements of Income in
Fair Value Hedging Relationships
Three Months Ended Jun 30,Six Months Ended Jun 30,
2025202420252024
(in thousands)Capital Markets, NetCapital Markets, NetCapital Markets, NetCapital Markets, Net
Total amounts of income/expense presented on the consolidated statements of income in which the effects of the fair value hedges are recorded$— $— $1 $— 
The effects of fair value hedging: Impact on fair value hedging relationships in Subtopic 815-20
Foreign currency contracts:
Hedged items19,542 (4,269)20,095 (13,339)
Derivatives designated as hedging instruments(19,542)4,269 (20,093)13,339 
The following table presents the effect of cash flow hedge accounting on accumulated other comprehensive income (loss):
Three Months Ended Jun 30,Six Months Ended Jun 30,
(in thousands)2025202420252024
Interest rate-related instruments designated as cash flow hedging instruments
Amount of income (loss) recognized in OCI on cash flow hedge derivatives(a)
$1,264 $(6,787)$8,532 $(26,248)
Amount of loss reclassified from accumulated other comprehensive income (loss) into interest income(a)
1,437 4,769 2,555 9,592 
(a) The entirety of gains (losses) recognized in OCI as well as the losses reclassified from accumulated other comprehensive income (loss) into interest income were included components in the assessment of hedge effectiveness.
Amounts reported in accumulated other comprehensive income (loss) related to cash flow hedge derivatives are reclassified to interest income as interest payments are made on the hedged variable interest rate assets. The Corporation estimates that $2.2 million will be reclassified as an increase to interest income over the next 12 months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, or the addition of other hedges subsequent to June 30, 2025. The maximum length of time over which the Corporation is hedging its exposure to the variability in future cash flows is 30 months as of June 30, 2025.
The table below identifies the effect of derivatives not designated as hedging instruments on the Corporation's consolidated statements of income:
Consolidated Statements of Income Category of Gain / (Loss) 
Recognized in Income		Three Months Ended Jun 30,Six Months Ended Jun 30,
(in thousands)2025202420252024
Derivative instruments
Interest rate-related and other instruments — customer and mirror, netCapital markets, net$(42)$13 $(90)$(58)
Interest rate-related instruments — MSRs hedgeMortgage banking, net(308)(1,374)1,158 (4,311)
Foreign currency exchange forwardsCapital markets, net(1,075)(140)(575)605 
Interest rate lock commitments (mortgage)Mortgage banking, net933 100 1,594 327 
Forward commitments (mortgage)Mortgage banking, net(779)127 (1,616)578