Derivative and Hedging Activities

3 Months Ended

Mar. 31, 2026

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 2025 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 $76.9 million and $79.4 million of investment securities as collateral at March 31, 2026, and December 31, 2025, respectively. Cash is often pledged as collateral for derivatives that are not centrally cleared. The Corporation's required cash collateral was $6.0 million at March 31, 2026 and $11.8 million at December 31, 2025. 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 2025 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:

	Mar 31, 2026								Dec 31, 2025
	Asset				Liability				Asset				Liability
(in thousands)	Notional Amount		Fair Value		Notional Amount		Fair Value		Notional Amount		Fair Value		Notional Amount		Fair Value
Designated as hedging instruments:
Interest rate-related instruments(a)	$	1,650,000	$	4,253	$	850,000	$	2,326	$	2,425,000	$	10,517	$	25,000	$	1
Foreign currency exchange forwards	43,857		827		260,905		402		280,159		757		38,384		194
Total designated as hedging instruments			5,080				2,728				11,274				195
Not designated as hedging instruments:
Interest rate-related and other instruments	5,970,070		58,177		6,022,235		101,284		4,775,818		66,787		7,072,274		108,631
Foreign currency exchange forwards	60,812		334		12,197		121		48,904		1,731		43,787		1,517
Mortgage banking(b)	73,415		1,777		146,000		—		39,998		814		107,000		444
Total not designated as hedging instruments			60,288				101,405				69,332				110,592
Gross derivatives before netting			65,368				104,133				80,606				110,787
Less: Legally enforceable master netting agreements			11,708				11,708				12,839				12,839
Less: Cash collateral pledged/received			10,170				3,197				10,343				8,334
Total derivative instruments, after netting			$	43,490			$	89,228			$	57,424			$	89,614

(a) The notional amounts of the interest rate-related instruments designated as hedging instruments include forward starting interest rate swaps. As of March 31, 2026, this includes a swap with an effective date of November 1, 2026 that had a liability notional amount and fair value of $50.0 million and $0.1 million, respectively. As of December 31, 2025, the Corporation did not have any forward starting interest rate-swaps.
(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 March 31, 2026 the fair value of the mortgage derivative asset included $0.8 million of interest rate lock commitments and $0.9 million of forward commitments. Given the fair value position as of December 31, 2025, the fair value of the mortgage derivative asset included $0.8 million of interest rate lock commitments and the derivative liability included $0.4 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)	Mar 31, 2026				Dec 31, 2025
Other long-term funding	$	(299,819)	$	181	$	(301,760)	$	(1,760)
FHLB Advances	(197,673)		2,327		(198,722)		1,278
Total	$	(497,492)	$	2,508	$	(500,482)	$	(482)

(a) Excludes hedged items where only foreign currency risk is the designated hedged risk. At March 31, 2026 and December 31, 2025, the carrying amount excluded for foreign currency denominated loans was $304.8 million and $318.5 million, respectively.

The Corporation terminated its $500.0 million fair value hedge during the fourth quarter of 2019. At March 31, 2026, the amortized cost basis of the closed portfolios which had previously been used in the terminated hedging relationship was $184.8 million and is included in loans on the consolidated balance sheets. This amount includes $0.7 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 Mar 31,
	2026				2025
(in thousands)	Interest Income		Interest (Expense)		Interest Income		Interest (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)	$	604	$	(397)	$	(1,149)	$	(2,219)
The effects of fair value and cash flow hedging: Impact on fair value hedging relationships in Subtopic 815-20
Interest contracts:
Hedged items	(143)		2,990		(32)		(6,997)
Derivatives designated as hedging instruments(a)	746		(3,387)		(1,118)		4,778

(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 Mar 31,
	2026		2025
(in thousands)	Capital Markets, Net		Capital 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	$	2	$	1
The effects of fair value hedging: Impact on fair value hedging relationships in Subtopic 815-20
Foreign currency contracts:
Hedged items	(4,923)		553
Derivatives designated as hedging instruments	4,925		(551)

The following table presents the effect of cash flow hedge accounting on accumulated other comprehensive income (loss):

	Three Months Ended Mar 31,
(in thousands)	2026		2025
Interest rate-related instruments designated as cash flow hedging instruments
Amount of (loss) income recognized in OCI on cash flow hedge derivatives(a)	$	(7,912)	$	7,268
Amount of loss reclassified from accumulated other comprehensive income (loss) into interest income(a)	(746)		1,118

(a) The entirety of gains (losses) recognized in OCI as well as those 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 $1.6 million will be reclassified as a decrease 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 March 31, 2026. The maximum length of time over which the Corporation is hedging its exposure to the variability in future cash flows is 35 months as of March 31, 2026.

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 Mar 31,
(in thousands)		2026		2025
Derivative instruments
Interest rate-related and other instruments — customer and mirror, net	Capital markets, net	$	(30)	$	(48)
Interest rate-related instruments — MSRs hedge	Mortgage banking, net	202		1,466
Foreign currency exchange forwards	Capital markets, net	440		500
Interest rate lock commitments (mortgage)	Mortgage banking, net	962		661
Forward commitments (mortgage)	Mortgage banking, net	444		(837)