Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Assets and liabilities measured on recurring basis at fair value

The table below presents the Corporation’s financial instruments measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019, aggregated by the level in the fair value hierarchy within which those measurements fall:

($ in Thousands)	Fair Value Hierarchy	March 31, 2020		December 31, 2019
Assets
Investment securities available for sale
U.S. government SBA agency securities	Level 2	$	10,238	$	—
Obligations of state and political subdivisions (municipal securities)	Level 2	508,636		546,160
Residential mortgage-related securities
FNMA / FHLMC	Level 2	104,485		132,660
GNMA	Level 2	823,787		985,139
Commercial mortgage-related securities
FNMA / FHLMC	Level 2	22,773		21,728
GNMA	Level 2	1,114,443		1,310,207
FFELP asset backed securities	Level 2	341,424		263,693
Other debt securities	Level 2	3,000		3,000
Total investment securities available for sale	Level 2	2,928,787		3,262,586
Equity securities with readily determinable fair values	Level 1	1,618		1,646
Residential loans held for sale	Level 2	366,330		136,280
Interest rate-related instruments(a)	Level 2	220,445		77,024
Foreign currency exchange forwards(a)	Level 2	9,272		4,226
Commodity contracts(a)	Level 2	69,241		20,528
Interest rate lock commitments to originate residential mortgage loans held for sale	Level 3	12,454		2,527
Liabilities
Interest rate-related instruments(a)	Level 2	$	30,449	$	13,073
Foreign currency exchange forwards(a)	Level 2	9,215		4,048
Commodity contracts(a)	Level 2	67,592		19,624
Forward commitments to sell residential mortgage loans	Level 3	10,972		710

(a) Figures are presented gross before netting. See Note 10 and Note 11 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 three months ended March 31, 2020 and the year ended December 31, 2019, for the Corporation's mortgage derivatives measured on a recurring basis and classified within Level 3 of the fair value hierarchy:

($ in Thousands)	Derivative Financial Instruments
Balance December 31, 2018	$	140
Total net gains (losses) included in income
Mortgage derivative gain (loss)	1,681
Balance December 31, 2019	$	1,817
Total net gains (losses) included in income
Mortgage derivative gain (loss)	(334)
Balance March 31, 2020	$	1,482

Equity securities without readily determinable fair value

The following table presents the carrying value of equity securities without readily determinable fair values still held as of March 31, 2020 that are measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes. These securities are included in the nonrecurring fair value tables when applicable price changes are observable. Also shown are the cumulative upward and downward adjustments for the Corporation's equity securities without readily determinable fair values as of March 31, 2020:

($ in Thousands)
Equity securities without readily determinable fair values
Carrying value as of December 31, 2019	$	13,444
Carrying value changes	—
Carrying value as of March 31, 2020	$	13,444
Cumulative upward carrying value changes between January 1, 2018 and March 31, 2020	$	13,444
Cumulative downward carrying value changes/impairment between January 1, 2018 and March 31, 2020	$	—

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:

				Consolidated Statements of Income Category of Adjustment  Recognized in Income	Adjustment Recognized on the Consolidated Statements of Income
($ in Thousands)	Fair Value Hierarchy	Fair Value
March 31, 2020
Assets
Individually evaluated loans(a)	Level 3	$	103,108	Provision for credit losses	$	(23,840)
OREO(b)	Level 2	1,382		Other noninterest expense	(806)
Mortgage servicing rights	Level 3	58,311		Mortgage banking, net	(9,098)
Equity securities	Level 3	13,444		Investment securities gains (losses), net	—
December 31, 2019
Assets
Impaired loans(c)	Level 3	$	45,792	Provision for credit losses(d)	$	(66,172)
OREO(b)	Level 2	3,565		Other noninterest expense	(1,860)
Mortgage servicing rights	Level 3	72,532		Mortgage banking, net	(63)
Equity securities	Level 3	13,444		Investment securities gains (losses), net	13,444

(a) Includes probable TDRs which are individually analyzed, net of the related allowance for loan losses.

(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) Represents individually evaluated impaired loans, net of the related allowance for loan losses.

(d) Represents provision for credit losses on individually evaluated impaired loans.

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 information about these inputs and further discussion is found above:

March 31, 2020	Valuation Technique	Significant Unobservable Input	Range of Inputs			Weighted Average Input Applied
Mortgage servicing rights	Discounted cash flow	Discount rate	9%	-	14%	9%
Mortgage servicing rights	Discounted cash flow	Constant prepayment rate	7%	-	31%	15%
Individually evaluated loans	Appraisals / Discounted cash flow	Collateral / Discount factor	5%	-	67%	44%

Estimated fair values of financial instruments

Fair value estimates are set forth below for the Corporation’s financial instruments:

		March 31, 2020				December 31, 2019
	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
($ in Thousands)
Financial assets
Cash and due from banks	Level 1	$	480,337	$	480,337	$	373,380	$	373,380
Interest-bearing deposits in other financial institutions	Level 1	176,440		176,440		207,624		207,624
Federal funds sold and securities purchased under agreements to resell	Level 1	22,455		22,455		7,740		7,740
Investment securities held to maturity, net	Level 1	999		1,041		999		1,018
Investment securities held to maturity, net	Level 2	2,148,373		2,246,451		2,204,084		2,275,447
Investment securities available for sale	Level 2	2,928,787		2,928,787		3,262,586		3,262,586
Equity securities with readily determinable fair values	Level 1	1,618		1,618		1,646		1,646
Equity securities without readily determinable fair values	Level 3	13,444		13,444		13,444		13,444
FHLB and Federal Reserve Bank stocks	Level 2	222,922		222,922		227,347		227,347
Residential loans held for sale	Level 2	366,330		366,330		136,280		136,280
Commercial loans held for sale	Level 2	—		—		15,000		15,000
Loans, net	Level 3	24,027,841		24,072,251		22,620,068		22,399,621
Bank and corporate owned life insurance	Level 2	674,026		674,026		671,948		671,948
Derivatives (other assets)(a)	Level 2	298,958		298,958		101,778		101,778
Interest rate lock commitments to originate residential mortgage loans held for sale (other assets)	Level 3	12,454		12,454		2,527		2,527
Financial liabilities
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts	Level 3	$	23,028,235	$	23,028,235	$	21,156,261	$	21,156,261
Brokered CDs and other time deposits(b)	Level 2	2,633,345		2,650,937		2,622,803		2,622,803
Short-term funding(c)	Level 2	166,654		166,654		465,113		465,113
Long-term funding	Level 2	549,644		606,233		549,343		588,774
FHLB advances	Level 2	3,214,194		3,394,222		3,180,967		3,207,793
Standby letters of credit(d)	Level 2	2,644		2,644		2,710		2,710
Derivatives (accrued expenses and other liabilities)(a)	Level 2	107,255		107,255		36,745		36,745
Forward commitments to sell residential mortgage loans (accrued expenses and other liabilities)	Level 3	10,972		10,972		710		710

(a) Figures are presented gross before netting. See Note 10 and Note 11 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.

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

(c) The carrying amount is a reasonable estimate of fair value for existing short-term funding.

(d) The commitment on standby letters of credit was $265 million at March 31, 2020 and $278 million at December 31, 2019. See Note 12 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments.