Fair Value Measurements

6 Months Ended

Jun. 30, 2025

Fair value represents the estimated price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date under current market conditions (i.e., an exit price concept).

The valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis are described in the Fair Value Measurements note in the Corporation’s 2024 Annual Report on Form 10-K.

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, aggregated by the level in the fair value hierarchy within which those measurements fall:


	Jun 30, 2025
(in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and due from banks	$	521,167	$	521,167	$	521,167	$	—	$	—
Interest-bearing deposits in other financial institutions	738,938		738,938		738,938		—		—
Federal funds sold and securities purchased under agreements to resell	—		—		—		—		—
AFS investment securities:


Obligations of state and political subdivisions (municipal securities)	2,993		2,993		—		2,993		—
Residential mortgage-related securities:
FNMA / FHLMC	119,914		119,914		—		119,914		—
GNMA	4,682,415		4,682,415		—		4,682,415		—

Commercial mortgage-related securities:
FNMA / FHLMC	16,937		16,937		—		16,937		—
GNMA	110,386		110,386		—		110,386		—
Asset backed securities:
FFELP	100,489		100,489		—		100,489		—
SBA	377		377		—		377		—
Other debt securities	2,998		2,998		—		2,998		—
Total AFS investment securities	5,036,508		5,036,508		—		5,036,508		—

HTM investment securities:
U.S. Treasury securities	994		1,013		1,013		—		—
Obligations of state and political subdivisions (municipal securities), net	1,642,962		1,441,910		—		1,441,910		—
Residential mortgage-related securities:
FNMA / FHLMC	854,777		707,296		—		707,296		—
GNMA	42,028		39,136		—		39,136		—
Private-label	313,439		262,536		—		262,536		—
Commercial mortgage-related securities:
FNMA / FHLMC	768,503		644,422		—		644,422		—
GNMA	49,399		43,959		—		43,959		—
Total HTM investment securities, net	3,672,101		3,140,272		1,013		3,139,259		—

Equity securities:
Equity securities	10,912		10,912		10,853		—		59
Equity securities at NAV	15,000		15,000
Total equity securities	25,912		25,912

FHLB and Federal Reserve Bank stocks	278,356		278,356		—		278,356		—
Residential loans held for sale	96,804		96,804		—		96,804		—
Commercial loans held for sale	8,406		8,406		—		8,406		—
Loans, net	30,252,521		29,483,667		—		—		29,483,667
Bank and corporate owned life insurance	691,470		691,470		—		691,470		—
Mortgage servicing rights, net	85,245		85,245		—		—		85,245
Interest rate-related instruments designated as hedging instruments(a)	10,652		10,652		—		10,652		—
Foreign currency exchange forwards designated as hedging instruments(a)	423		423		—		423		—
Interest rate-related and other instruments not designated as hedging instruments(a)	77,258		77,258		—		77,258		—
Foreign currency exchange forwards not designated as hedging instruments(a)	3,078		3,078		—		3,078		—
Interest rate lock commitments to originate residential mortgage loans held for sale	1,921		1,921		—		—		1,921

Total selected assets at fair value	$	41,500,762	$	40,200,079	$	1,271,971	$	9,342,216	$	29,570,892

(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, 2025
(in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Liabilities
Deposits:
Noninterest-bearing demand	$	5,782,487	$	5,782,487	$	—	$	—	$	5,782,487
Savings	5,291,674		5,291,674		—		—		5,291,674
Interest-bearing demand	8,579,678		8,579,678		—		—		8,579,678
Money market	6,619,323		6,619,323		—		—		6,619,323
Brokered CDs(a)	4,072,048		4,072,048		—		4,072,048		—
Other time deposits(a)	3,802,356		3,802,356		—		3,802,356		—
Total deposits	34,147,565		34,147,565		—		7,874,404		26,273,162


Federal funds purchased and securities sold under agreements to repurchase	75,585		75,586		—		75,586		—



FHLB advances	3,879,489		3,881,930		—		3,881,930		—
Other long-term funding	593,530		596,673		—		596,673		—
Standby letters of credit(b)	2,386		2,386		—		2,386		—
Interest rate-related instruments designated as hedging instruments(c)	170		170		—		170		—
Foreign currency exchange forwards designated as hedging instruments(c)	3,108		3,108		—		3,108		—
Interest rate-related and other instruments not designated as hedging instruments(c)	123,694		123,694		—		123,694		—
Foreign currency exchange forwards not designated as hedging instruments(c)	2,912		2,912		—		2,912		—

Forward commitments to sell residential mortgage loans	1,362		1,362		—		—		1,362
Total selected liabilities at fair value	$	38,829,803	$	38,835,388	$	—	$	12,560,864	$	26,274,524

(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 $238.0 million at June 30, 2025. 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, 2024
(in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and due from banks	$	544,059	$	544,059	$	544,059	$	—	$	—
Interest-bearing deposits in other financial institutions	453,590		453,590		453,590		—		—
Federal funds sold and securities purchased under agreements to resell	21,955		21,955		21,955		—		—
AFS investment securities:


Obligations of state and political subdivisions (municipal securities)	3,005		3,005		—		3,005		—
Residential mortgage-related securities:
FNMA / FHLMC	110,928		110,928		—		110,928		—
GNMA	4,227,727		4,227,727		—		4,227,727		—

Commercial mortgage-related securities:
FNMA / FHLMC	17,000		17,000		—		17,000		—
GNMA	111,475		111,475		—		111,475		—
Asset backed securities:
FFELP	107,839		107,839		—		107,839		—
SBA	471		471		—		471		—
Other debt securities	2,989		2,989		—		2,989		—
Total AFS investment securities	4,581,434		4,581,434		—		4,581,434		—

HTM investment securities:
U.S. Treasury securities	1,000		999		999		—		—
Obligations of state and political subdivisions (municipal securities), net	1,659,662		1,486,582		—		1,486,582		—
Residential mortgage-related securities:
FNMA / FHLMC	885,476		721,946		—		721,946		—
GNMA	43,693		39,927		—		39,927		—
Private-label	324,182		266,353		—		266,353		—
Commercial mortgage-related securities:
FNMA / FHLMC	772,456		623,595		—		623,595		—
GNMA	52,219		46,032		—		46,032		—
Total HTM investment securities, net	3,738,687		3,185,434		999		3,184,435		—

Equity securities:
Equity securities	10,742		10,742		10,670		—		72
Equity securities at NAV	12,500		12,500
Total equity securities	23,242		23,242

FHLB and Federal Reserve Bank stocks	179,665		179,665		—		179,665		—
Residential loans held for sale	646,687		646,687		—		646,687		—
Commercial loans held for sale	32,634		32,634		—		32,634		—
Loans, net	29,373,557		28,327,115		—		—		28,327,115
Bank and corporate owned life insurance	689,000		689,000		—		689,000		—
Mortgage servicing rights, net	87,683		87,683		—		—		87,683
Interest rate-related instruments designated as hedging instruments(a)	2,960		2,960		—		2,960		—
Foreign currency exchange forwards designated as hedging instruments(a)	2,457		2,457		—		2,457		—
Interest rate-related and other instruments not designated as hedging instruments(a)	88,541		88,541		—		88,541		—
Foreign currency exchange forwards not designated as hedging instruments(a)	4,315		4,315		—		4,315		—
Interest rate lock commitments to originate residential mortgage loans held for sale	327		327		—		—		327
Forward commitments to sell residential mortgage loans	254		254		—		—		254
Total selected assets at fair value	$	40,471,048	$	38,871,352	$	1,031,273	$	9,412,129	$	28,415,450


	Dec 31, 2024
(in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Liabilities
Deposits:
Noninterest-bearing demand	$	5,775,657	$	5,775,657	$	—	$	—	$	5,775,657
Savings	5,133,295		5,133,295		—		—		5,133,295
Interest-bearing demand	9,124,741		9,124,741		—		—		9,124,741
Money market	6,637,915		6,637,915		—		—		6,637,915
Brokered CDs(a)	4,276,309		4,276,309		—		4,276,309		—
Other time deposits(a)	3,700,518		3,700,518		—		3,700,518		—
Total deposits	34,648,434		34,648,434		—		7,976,827		26,671,607

Federal funds purchased and securities sold under agreements to repurchase	470,369		470,370		—		470,370		—



FHLB advances	1,853,807		1,852,685		—		1,852,685		—
Other long-term funding	837,635		823,991		—		823,991		—
Standby letters of credit(b)	2,546		2,546		—		2,546		—
Interest rate-related instruments designated as hedging instruments(c)	2,976		2,976		—		2,976		—
Foreign currency exchange forwards designated as hedging instruments(c)	563		563		—		563		—
Interest rate-related and other instruments not designated as hedging instruments(c)	170,928		170,928		—		170,928		—
Foreign currency exchange forwards not designated as hedging instruments(c)	4,106		4,106		—		4,106		—


Total selected liabilities at fair value	$	37,991,364	$	37,976,599	$	—	$	11,304,992	$	26,671,607

(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 $253.7 million at December 31, 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.

The table below presents a rollforward of the consolidated balance sheets amounts 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, 2023	$	439	$	673	$	(234)
New production	11,771		(4,000)		15,771
Closed loans / settlements	(8,816)		3,512		(12,328)
Other	(3,068)		(438)		(2,630)
Change in mortgage derivative	(113)		(927)		814

Balance December 31, 2024	327		(254)		580
New production	6,409		(1,716)		8,125
Closed loans / settlements	(5,300)		1,755		(7,055)
Other	486		1,577		(1,092)
Change in mortgage derivative	1,594		1,616		(21)

Balance June 30, 2025	$	1,921	$	1,362	$	559

The following table presents a rollforward of the fair value of Level 3 equity securities 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, 2023	$	24,769
Gains recognized in investment securities gains, net	4,054

Purchases	22
Sales	(28,772)

Fair value as of December 31, 2024	$	72


Purchases	10
Sales	(23)

Fair value as of June 30, 2025	$	59

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, 2025

Assets

Individually evaluated loans

Level 3

16,913

Provision for credit losses

1,559

OREO(a)

Level 2

8,802

Other noninterest expense / provision for credit losses(b)

7,046

Dec 31, 2024

Assets

Individually evaluated loans

Level 3

31,483

Provision for credit losses

17,454

OREO(a)

Level 2

276

Other noninterest expense / provision for credit losses(b)

1,067

(a) 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.

(b) 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.

The table below presents the unobservable inputs that are readily quantifiable pertaining to Level 3 measurements:


Jun 30, 2025	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	1%	-	100%	7%
Individually evaluated loans	Appraisals	Collateral	46%	-	80%	76%
Individually evaluated loans	Discounted cash flow	Discount factor	45%		45%	45%
Interest rate lock commitments to originate residential mortgage loans held for sale	Discounted cash flow	Closing ratio	52%	-	100%	90%

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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+ Details