Fair Value Measurements (Tables)

12 Months Ended

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

($ in Thousands)	Fair Value Hierarchy	December 31, 2022		December 31, 2021
Assets
AFS Investment securities
U.S. Treasury securities	Level 1	$	109,378	$	122,957
Agency securities	Level 2	13,532		14,897
Obligations of state and political subdivisions (municipal securities)	Level 2	230,714		400,457
Residential mortgage-related securities
FNMA / FHLMC	Level 2	1,604,610		2,691,879
GNMA	Level 2	497,596		67,780
Private-label	Level 2	—		329,724
Commercial mortgage-related securities
FNMA / FHLMC	Level 2	17,142		350,623
GNMA	Level 2	110,462		166,799
Asset backed securities
FFELP	Level 2	151,191		177,325
SBA	Level 2	4,477		6,580
Other debt securities	Level 2	2,922		2,994
Total AFS investment securities	Level 1	$	109,378	$	122,957
Total AFS investment securities	Level 2	2,632,647		4,209,058
Equity securities with readily determinable fair values	Level 1	5,991		4,810
Residential loans held for sale	Level 2	20,383		136,638
Mortgage servicing rights, net(a)	Level 3	77,351		N/A
Interest rate-related instruments designated as hedging instruments(b)	Level 2	4,349		—
Interest rate-related and other instruments not designated as hedging instruments(b)	Level 2	62,401		83,626
Foreign currency exchange forwards(b)	Level 2	1,922		5,490
Commodity contracts(b)	Level 2	—		1,264
Interest rate lock commitments to originate residential mortgage loans held for sale	Level 3	86		2,617
Forward commitments to sell residential mortgage loans	Level 3	—		30
Liabilities
Interest rate-related instruments designated as hedging instruments(b)	Level 2	$	1,260	$	—
Interest rate-related and other instruments not designated as hedging instruments(b)	Level 2	251,398		26,231
Foreign currency exchange forwards(b)	Level 2	1,801		5,441
Commodity contracts(b)	Level 2	—		1,248
Forward commitments to sell residential mortgage loans	Level 3	46		—

(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 14 and Note 15 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 years ended December 31, 2022 and 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 to sell residential mortgage loans		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)
Change in mortgage derivative	(7,007)		(2,075)		(4,932)
Balance December 31, 2021	$	2,617	$	(30)	$	2,647
New production	$	10,442	$	(2,028)	$	12,470
Closed loans / settlements	(913)		24,766		(25,679)
Other	(12,060)		(22,662)		10,603
Change in mortgage derivative	(2,531)		76		(2,607)
Balance December 31, 2022	$	86	$	46	$	40

Equity Securities without Readily Determinable Fair Value

Also shown are the cumulative upward and downward adjustments for the Corporation's equity securities without readily determinable fair values as of December 31, 2022:

($ in Thousands)
Equity securities without readily determinable fair values
Carrying value as of December 31, 2021	$	13,542
Carrying value changes	5,690
Additions	5
Sales	(12)
Carrying value as of December 31, 2022	$	19,225
Cumulative upward carrying value changes between January 1, 2018 and December 31, 2022	$	19,134
Cumulative downward carrying value changes between January 1, 2018 and December 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:

($ 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)
December 31, 2022
Assets
Individually evaluated loans(b)	Level 3	$	23,584	Provision for credit losses	$	4,405
OREO(c)	Level 2	2,196		Other noninterest expense / provision for credit losses(d)	971
Equity securities without readily determinable fair values	Level 3	19,134		Investment securities gains (losses), net	5,690
December 31, 2021
Assets
Individually evaluated loans(b)	Level 3	$	69,917	Provision for credit losses	$	(3,045)
OREO(c)	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 the full year impact on the consolidated statements of income.

(b) Includes probable TDRs which are individually analyzed, net of the related ACLL, of which there were none at December 31, 2022.

(c) 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.

(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 the unobservable inputs that are readily quantifiable pertaining to Level 3 measurements:

December 31, 2022	Valuation Technique	Significant Unobservable Input	Range of Inputs			Weighted Average Input Applied
Mortgage servicing rights	Discounted cash flow	Option adjusted spread	6%	-	9%	7%
Mortgage servicing rights	Discounted cash flow	Constant prepayment rate	—%	-	100%	5%
Individually evaluated loans	Appraisals / Discounted cash flow	Collateral / Discount factor	22%	-	51%	31%
Interest rate lock commitments to originate residential mortgage loans held for sale	Discounted cash flow	Closing ratio	31%	-	100%	83%

Estimated fair values of financial instruments

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

		December 31, 2022				December 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	$	436,952	$	436,952	$	343,831	$	343,831
Interest-bearing deposits in other financial institutions	Level 1	156,693		156,693		681,684		681,684
Federal funds sold and securities purchased under agreements to resell	Level 1	27,810		27,810		—		—
AFS investment securities	Level 1	109,378		109,378		122,957		122,957
AFS investment securities	Level 2	2,632,647		2,632,647		4,209,058		4,209,058
HTM investment securities, net	Level 1	999		936		1,000		1,001
HTM investment securities, net	Level 2	3,959,399		3,400,028		2,237,947		2,347,608
Equity securities with readily determinable fair values	Level 1	5,991		5,991		4,810		4,810
Equity securities without readily determinable fair values	Level 3	19,225		19,225		13,542		13,542
FHLB and Federal Reserve Bank stocks	Level 2	295,496		295,496		168,281		168,281
Residential loans held for sale	Level 2	20,383		20,383		136,638		136,638
Loans, net	Level 3	28,486,849		27,481,426		23,944,934		23,980,330
Bank and corporate owned life insurance	Level 2	676,530		676,530		680,021		680,021
Mortgage servicing rights, net(a)	Level 3	77,351		77,351		54,862		57,259
Derivatives (other assets)(b)	Level 2	68,672		68,672		90,379		90,379
Interest rate lock commitments to originate residential mortgage loans held for sale (other assets)	Level 3	86		86		2,617		2,617
Forward commitments on residential mortgage loans (other assets)	Level 3	—		—		30		30
Financial liabilities
Noninterest-bearing demand, savings, interest-bearing demand, and money market accounts	Level 3	$	27,705,996	$	27,705,996	$	27,119,167	$	27,119,167
Brokered CDs and other time deposits(c)	Level 2	1,930,158		1,930,158		1,347,262		1,347,262
Short-term funding	Level 2	605,937		605,205		354,262		354,248
FHLB advances	Level 2	4,319,861		4,322,264		1,621,047		1,680,814
Other long-term funding	Level 2	248,071		242,151		249,324		265,545
Standby letters of credit(d)	Level 2	2,881		2,881		2,367		2,367
Derivatives (accrued expenses and other liabilities)(b)	Level 2	254,459		254,459		32,921		32,921
Forward commitments on residential mortgage loans (accrued expenses and other liabilities)	Level 3	46		46		—		—

(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 14 and Note 15 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 $271 million and $231 million at December 31, 2022 and 2021, respectively. See Note 16 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments.