Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

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, 2022 and December 31, 2021, aggregated by the level in the fair value hierarchy within which those measurements fall:

($ in Thousands)	Fair Value Hierarchy	Mar 31, 2022		Dec 31, 2021
Assets
Investment securities AFS
U.S. Treasury securities	Level 1	$	116,132	$	122,957
Agency securities	Level 2	14,200		14,897
Obligations of state and political subdivisions (municipal securities)	Level 2	372,401		400,457
Residential mortgage-related securities
FNMA / FHLMC	Level 2	1,894,819		2,691,879
GNMA	Level 2	58,909		67,780
Private-label	Level 2	—		329,724
Commercial mortgage-related securities
FNMA / FHLMC	Level 2	19,786		350,623
GNMA	Level 2	126,760		166,799
Asset backed securities
FFELP	Level 2	168,978		177,325
SBA	Level 2	5,845		6,580
Other debt securities	Level 2	2,973		2,994
Total investment securities AFS	Level 1	$	116,132	$	122,957
Total investment securities AFS	Level 2	2,664,671		4,209,058
Equity securities with readily determinable fair values	Level 1	5,025		4,810
Residential loans held for sale	Level 2	91,582		136,638
Mortgage servicing rights, net(a)	Level 3	67,015		N/A
Interest rate-related instruments(b)	Level 2	31,728		83,626
Foreign currency exchange forwards(b)	Level 2	1,986		5,490
Commodity contracts(b)	Level 2	—		1,264
Interest rate lock commitments to originate residential mortgage loans held for sale	Level 3	—		2,617
Forward commitments on residential mortgage loans	Level 3	4,796		30
Liabilities
Interest rate-related instruments(b)	Level 2	$	112,029	$	26,231
Foreign currency exchange forwards(b)	Level 2	1,815		5,441
Commodity contracts(b)	Level 2	—		1,248
Interest rate lock commitments to originate residential mortgage loans held for sale	Level 3	224		—
Forward commitments on TBA securities	Level 3	9		—

(a) MSRs at December 31, 2021 were carried at LOCOM. On January 1, 2022, the Corporation made the irrevocable election to account for MSRs at fair value on a recurring basis.
(b) 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, 2022 and the year ended December 31, 2021, 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 on residential mortgage loans and TBA securities		Total
Balance December 31, 2020	$	9,624	$	2,046	$	7,579
New production	53,686		(3,281)		56,966
Closed loans / settlements	(53,477)		3,740		(57,217)
Other	(7,216)		(2,535)		(4,680)
Mortgage derivative (loss)	(7,007)		(2,076)		(4,932)
Balance December 31, 2021	$	2,617	$	(30)	$	2,647
New production	$	5,002	$	(887)	$	5,890
Closed loans / settlements	(455)		9,099		(9,554)
Other	(7,389)		(12,969)		5,580
Mortgage derivative gain (loss)	(2,842)		(4,757)		1,916
Balance March 31, 2022	$	(224)	$	(4,787)	$	4,563

Equity securities without readily determinable fair value

The following table presents the carrying value of equity securities without readily determinable fair values as of March 31, 2022 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, 2022:

($ in Thousands)
Equity securities without readily determinable fair values
Carrying value as of December 31, 2021	$	13,542
Additions	1
Sales	(8)
Carrying value as of March 31, 2022	$	13,535
Cumulative upward carrying value changes between January 1, 2018 and March 31, 2022	$	13,444
Cumulative downward carrying value changes/impairment between January 1, 2018 and March 31, 2022	$	—

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
($ in Thousands)	Fair Value Hierarchy	Fair Value			Adjustment Recognized on the Consolidated Statements of Income(c)
March 31, 2022
Assets
Individually evaluated loans(a)	Level 3	$	43,882	Provision for credit losses	$	(397)
OREO(b)	Level 2	985		Other noninterest expense / provision for credit losses(d)	102
December 31, 2021
Assets
Individually evaluated loans(a)	Level 3	$	69,917	Provision for credit losses	$	(3,045)
OREO(b)	Level 2	21,299		Other noninterest expense / provision for credit losses(d)	7,345
Mortgage servicing rights(e)	Level 3	57,259		Mortgage banking, net	16,186

(a) Includes probable TDRs which are individually analyzed, net of the related ACLL.
(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) Includes the full year impact on the consolidated statements of income
(d) 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.
(e) MSRs at December 31, 2021 were carried at LOCOM. On January 1, 2022, the Corporation made the irrevocable election to account for MSRs at fair value on a recurring basis.

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, 2022	Valuation Technique	Significant Unobservable Input	Range of Inputs			Weighted Average Input Applied
Individually evaluated loans	Appraisals / Discounted cash flow	Collateral / Discount factor	21%	-	21%	21%

Estimated fair values of financial instruments

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

		Mar 31, 2022				Dec 31, 2021
($ in Thousands)	Fair Value Hierarchy Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets
Cash and due from banks	Level 1	$	334,138	$	334,138	$	343,831	$	343,831
Interest-bearing deposits in other financial institutions	Level 1	166,929		166,929		681,684		681,684
Investment securities AFS	Level 1	116,132		116,132		122,957		122,957
Investment securities AFS	Level 2	2,664,671		2,664,671		4,209,058		4,209,058
Investment securities HTM, net	Level 1	998		964		1,000		1,001
Investment securities HTM, net	Level 2	3,938,857		3,763,872		2,237,947		2,347,608
Equity securities with readily determinable fair values	Level 1	5,025		5,025		4,810		4,810
Equity securities without readily determinable fair values	Level 3	13,535		13,535		13,542		13,542
FHLB and Federal Reserve Bank stocks	Level 2	168,281		168,281		168,281		168,281
Residential loans held for sale	Level 2	91,582		91,582		136,638		136,638
Loans, net	Level 3	24,252,867		23,485,798		23,944,934		23,980,330
Bank and corporate owned life insurance	Level 2	679,538		679,538		680,021		680,021
Mortgage servicing rights, net(a)	Level 3	67,015		67,015		54,862		57,259
Derivatives (other assets)(b)	Level 2	33,715		33,715		90,379		90,379
Interest rate lock commitments to originate residential mortgage loans held for sale (other assets)	Level 3	—		—		2,617		2,617
Forward commitments to sell residential mortgage loans (other assets)	Level 3	4,796		4,796		30		30
Financial liabilities
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts	Level 3	$	27,116,495	$	27,116,495	$	27,119,167	$	27,119,167
Time deposits(c)	Level 2	1,288,913		1,288,913		1,347,262		1,347,262
Short-term funding	Level 2	399,361		399,270		354,262		354,248
FHLB advances	Level 2	1,537,948		1,546,821		1,621,047		1,680,814
Other long-term funding	Level 2	249,797		254,355		249,324		265,545
Standby letters of credit(d)	Level 2	2,473		2,473		2,367		2,367
Derivatives (accrued expenses and other liabilities)(b)	Level 2	113,844		113,844		32,921		32,921
Interest rate lock commitments to originate residential mortgage loans held for sale (accrued expenses and other liabilities)	Level 3	224		224		—		—
Forward commitments on TBA securities (accrued expenses and other liabilities)	Level 3	9		9		—		—

(a) MSRs at December 31, 2021 were carried at LOCOM. On January 1, 2022, the Corporation made the irrevocable election to account for MSRs at fair value.
(b) 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.
(c) When the estimated fair value is less than the carrying value, the carrying value is reported as the fair value.
(d) The commitment on standby letters of credit was $257 million at March 31, 2022 and $248 million at December 31, 2021. See Note 12 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments.