Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present assets and liabilities measured at fair value on a recurring basis and reported on the consolidated balance sheets:


	2021
	Level 1		Level 2		Level 3		Total
	(in thousands)
Loans held for sale	$	—	$	35,768	$	—	$	35,768
Available for sale investment securities:

U.S. Government securities	127,618		—		—		127,618

State and municipal securities	—		1,188,670		—		1,188,670
Corporate debt securities	—		386,133		—		386,133
Collateralized mortgage obligations	—		209,359		—		209,359
Residential mortgage-backed securities	—		229,795		—		229,795
Commercial mortgage-backed securities	—		971,148		—		971,148
Auction rate securities	—		—		74,667		74,667
Total available for sale investment securities	127,618		2,985,105		74,667		3,187,390
Other assets:
Investments held in Rabbi Trust	28,619		—		—		28,619
Derivative assets	298		160,945		—		161,243
Total assets	$	156,535	$	3,181,818	$	74,667	$	3,413,020
Other liabilities:
Deferred compensation liabilities	$	28,619	$	—	$	—	$	28,619
Derivative liabilities	291		86,110		—		86,401
Total liabilities	$	28,910	$	86,110	$	—	$	115,020

	2020
	Level 1		Level 2		Level 3		Total
	(in thousands)
Loans held for sale	$	—	$	83,886	$	—	$	83,886
Available for sale investment securities:



State and municipal securities	—		952,613		—		952,613
Corporate debt securities	—		367,145		—		367,145
Collateralized mortgage obligations	—		503,766		—		503,766
Residential mortgage-backed securities	—		377,998		—		377,998
Commercial mortgage-backed securities	—		762,415		—		762,415
Auction rate securities	—		—		98,206		98,206
Total available for sale investment securities	—		2,963,937		98,206		3,062,143
Other assets:
Investments held in Rabbi Trust	24,383		—		—		24,383
Derivative assets	323		338,987		—		339,310
Total assets	$	24,706	$	3,386,810	$	98,206	$	3,509,722
Other liabilities:
Deferred compensation liabilities	$	24,383	$	—	$	—	$	24,383
Derivative liabilities	280		167,505		—		167,785
Total liabilities	$	24,663	$	167,505	$	—	$	192,168

Schedule of Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis using Level 3 Inputs

The following table presents the changes in AFS investment securities measured at fair value on a recurring basis using unobservable inputs (Level 3) for the years ended December 31:


		Single-issuer Trust Preferred Securities		ARCs
	(in thousands)
Balance at December 31, 2019		$	2,400	$	101,926
Sales		(2,160)		—

Unrealized adjustment to fair value (1)		(242)		(3,720)

Discount accretion (2)		2		—
Balance at December 31, 2020		$	—	$	98,206
Sales		—		(24,619)

Unrealized adjustment to fair value (1)		—		1,080

Discount accretion (2)		—		—
Balance at December 31, 2021		$	—	$	74,667

(1)Single-issuer trust preferred securities and ARCs are classified as AFS investment securities; as such, the unrealized adjustment to fair value was recorded as an unrealized holding gain (loss) and included as a component of "AFS at estimated fair value" on the consolidated balance sheets.

(2)Included as a component of "net interest income" on the consolidated statements of income.

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis

The following table presents Level 3 financial instruments measured at fair value on a nonrecurring basis:


	2021		2020
	(in thousands)
Loans, net	$	118,458	$	116,584
OREO	1,817		4,178
MSRs (1)	35,393		28,245
Total assets	$	155,668	$	149,007

(1)Amounts shown are estimated fair value. MSRs are recorded on the Corporation's consolidated balance sheets at lower of amortized cost or fair value. See "Note 7 - Mortgage Servicing Rights" for additional information.

Fair Value Measurement Inputs and Valuation Techniques

Changes in any of those inputs, in isolation, could result in a significantly different fair value measurement, as depicted in the table below:

Significant Input

Scenario Shock

% Change in Valuation

Prepayment Rate

+ 30%

(16)%

Prepayment Rate

- 30%

15%

Discount Rate

- 200 bps

Discount Rate

+ 200 bps

(7)%

Details of Book Value and Fair Value of Financial Instruments

The following table details the book values and the estimated fair values of the Corporation’s financial instruments as of December 31, 2021 and 2020. A general description of the methods and assumptions used to estimate such fair values is also provided.


	2021
			Estimated Fair Value
	Carrying Amount		Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS	(in thousands)
Cash and cash equivalents	$	1,638,614	$	1,638,614	$	—	$	—	$	1,638,614
FRB and FHLB stock	57,635		—		57,635		—		57,635
Loans held for sale	35,768		—		35,768		—		35,768
HTM securities	980,384		—		965,867		—		965,867
AFS securities	3,187,390		127,618		2,985,105		74,667		3,187,390
Net Loans	18,076,349		—		—		17,519,497		17,519,497
Accrued interest receivable	57,451		57,451		—		—		57,451
Other assets	565,491		367,336		160,945		37,210		565,491
FINANCIAL LIABILITIES
Demand and savings deposits	$	19,594,497	$	19,594,497	$	—	$	—	$	19,594,497
Brokered deposits	251,526		231,526		20,603		—		252,129
Time deposits	1,727,476		—		1,730,673		—		1,730,673
Accrued interest payable	7,000		7,000		—		—		7,000
Short-term borrowings	416,764		416,764		—		—		416,764
Long-term borrowings	621,345		—		605,719		—		605,719
Other liabilities	288,862		188,219		86,110		14,533		288,862

	2020
			Estimated Fair Value
	Carrying Amount		Level 1		Level 2		Level 3		Total
FINANCIAL ASSETS	(in thousands)
Cash and cash equivalents	$	1,847,832	$	1,847,832	$	—	$	—	$	1,847,832
FRB and FHLB stock	92,129		—		92,129		—		92,129
Loans held for sale	83,886		—		83,886		—		83,886
HTM securities	278,281		—		296,857		—		296,857
AFS securities	3,062,143		—		2,963,937		98,206		3,062,143
Net Loans	18,623,253		—		—		18,354,532		18,354,532
Accrued interest receivable	72,942		72,942		—		—		72,942
Other assets	650,425		279,015		338,987		32,423		650,425
FINANCIAL LIABILITIES
Demand and savings deposits	$	18,279,358	$	18,279,358	$	—	$	—	$	18,279,358
Brokered deposits	335,185		295,185		41,206		—		336,391
Time deposits	2,224,664		—		2,246,457		—		2,246,457
Accrued interest payable	10,365		10,365		—		—		10,365
Short-term borrowings	630,066		630,066		—		—		630,066
Long-term borrowings	1,296,263		—		1,332,041		—		1,332,041
Other liabilities	338,747		156,869		167,505		14,373		338,747