Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The tables below present the Corporation’s financial instruments measured at fair value on a recurring basis and carrying amounts and estimated fair values of certain financial instruments as of March 31, 2024 and December 31, 2023, aggregated by the level in the fair value hierarchy within which those measurements fall:


	Mar 31, 2024
($ in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and due from banks	$	429,859	$	429,859	$	429,859	$	—	$	—
Interest-bearing deposits in other financial institutions	420,114		420,114		420,114		—		—
Federal funds sold and securities purchased under agreements to resell	1,610		1,610		1,610		—		—
AFS investment securities:
U.S. Treasury securities	35,558		35,558		35,558		—		—

Obligations of state and political subdivisions (municipal securities)	80,830		80,830		—		80,830		—
Residential mortgage-related securities:
FNMA / FHLMC	1,090,998		1,090,998		—		1,090,998		—
GNMA	2,214,513		2,214,513		—		2,214,513		—

Commercial mortgage-related securities:
FNMA / FHLMC	17,008		17,008		—		17,008		—
GNMA	152,232		152,232		—		152,232		—
Asset backed securities:
FFELP	129,154		129,154		—		129,154		—
SBA	890		890		—		890		—
Other debt securities	2,965		2,965		—		2,965		—
Total AFS investment securities	3,724,148		3,724,148		35,558		3,688,590		—

HTM investment securities:
U.S. Treasury securities	999		969		969		—		—
Obligations of state and political subdivisions (municipal securities), net	1,676,199		1,523,658		—		1,523,658		—
Residential mortgage-related securities:
FNMA / FHLMC	930,148		771,944		—		771,944		—
GNMA	48,043		44,457		—		44,457		—
Private-label	341,153		281,069		—		281,069		—
Commercial mortgage-related securities:
FNMA / FHLMC	779,310		628,928		—		628,928		—
GNMA	57,114		50,183		—		50,183		—
Total HTM investment securities, net	3,832,967		3,301,209		969		3,300,239		—

Equity securities:
Equity securities	7,071		7,071		6,966		—		105
Equity securities at NAV	12,500		12,500
Total equity securities	19,571		19,571

FHLB and Federal Reserve Bank stocks	173,968		173,968		—		173,968		—
Residential loans held for sale	52,414		52,414		—		52,414		—

Loans, net	29,138,257		27,739,448		—		—		27,739,448
Bank and corporate owned life insurance	685,089		685,089		—		685,089		—
Mortgage servicing rights, net	85,226		85,226		—		—		85,226
Interest rate-related instruments designated as hedging instruments(a)	2,164		2,164		—		2,164		—
Foreign currency exchange forwards designated as hedging instruments(a)	624		624		—		624		—
Interest rate-related and other instruments not designated as hedging instruments(a)	113,337		113,337		—		113,337		—
Foreign currency exchange forwards not designated as hedging instruments(a)	5,276		5,276		—		5,276		—
Interest rate lock commitments to originate residential mortgage loans held for sale	666		666		—		—		666

Total selected assets at fair value	$	38,685,290	$	36,754,723	$	895,077	$	8,021,701	$	27,825,445

(a) Figures are presented gross before netting. See Note 9 and Note 10 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.


	Mar 31, 2024
($ in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Liabilities
Deposits:
Noninterest-bearing demand	$	6,254,135	$	6,254,135	$	—	$	—	$	6,254,135
Savings	5,124,639		5,124,639		—		—		5,124,639
Interest-bearing demand	8,747,127		8,747,127		—		—		8,747,127
Money market	6,721,674		6,721,674		—		—		6,721,674
Brokered CDs(a)	3,931,230		3,931,230		—		3,931,230		—
Other time deposits(a)	2,934,352		2,934,352		—		2,934,352		—
Total deposits	33,713,158		33,713,158		—		6,865,582		26,847,575
Short-term funding:
Federal funds purchased and securities sold under agreements to repurchase	265,671		265,661		—		265,661		—
BTFP funding	500,000		497,959		—		497,959		—
Total short-term funding	765,671		763,620		—		763,620		—

FHLB advances	1,333,411		1,320,280		—		1,320,280		—
Other long-term funding	536,055		517,009		—		517,009		—
Standby letters of credit(b)	2,347		2,347		—		2,347		—
Interest rate-related instruments designated as hedging instruments(c)	10,685		10,685		—		10,685		—
Foreign currency exchange forwards designated as hedging instruments(c)	230		230		—		230		—
Interest rate-related and other instruments not designated as hedging instruments(c)	222,303		222,303		—		222,303		—
Foreign currency exchange forwards not designated as hedging instruments(c)	4,956		4,956		—		4,956		—

Forward commitments to sell residential mortgage loans	222		222		—		—		222
Total selected liabilities at fair value	$	36,589,039	$	36,554,811	$	—	$	9,707,013	$	26,847,797

(a) When the estimated fair value is less than the carrying value, the carrying value is reported as the fair value.
(b) The commitment on standby letters of credit was $230 million at March 31, 2024. See Note 11 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments.
(c) Figures are presented gross before netting. See Note 9 and Note 10 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.


	Dec 31, 2023
($ in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Cash and due from banks	$	484,384	$	484,384	$	484,384	$	—	$	—
Interest-bearing deposits in other financial institutions	425,089		425,089		425,089		—		—
Federal funds sold and securities purchased under agreements to resell	14,350		14,350		14,350		—		—
AFS investment securities:
U.S. Treasury securities	35,902		35,902		35,902		—		—

Obligations of state and political subdivisions (municipal securities)	91,817		91,817		—		91,817		—
Residential mortgage-related securities:
FNMA / FHLMC	1,120,794		1,120,794		—		1,120,794		—
GNMA	2,042,675		2,042,675		—		2,042,675		—

Commercial mortgage-related securities:
FNMA / FHLMC	16,937		16,937		—		16,937		—
GNMA	154,793		154,793		—		154,793		—
Asset backed securities:
FFELP	133,975		133,975		—		133,975		—
SBA	1,051		1,051		—		1,051		—
Other debt securities	2,950		2,950		—		2,950		—
Total AFS investment securities	3,600,892		3,600,892		35,902		3,564,990		—

HTM investment securities:
U.S. Treasury securities	999		963		963		—		—
Obligations of state and political subdivisions (municipal securities), net	1,682,398		1,553,984		—		1,553,984		—
Residential mortgage-related securities:
FNMA / FHLMC	941,973		804,393		—		804,393		—
GNMA	48,979		46,170		—		46,170		—
Private-label	345,083		289,507		—		289,507		—
Commercial mortgage-related securities:
FNMA / FHLMC	780,995		632,914		—		632,914		—
GNMA	59,733		52,619		—		52,619		—
Total HTM investment securities, net	3,860,160		3,380,550		963		3,379,586		—

Equity securities:
Equity securities	31,651		31,651		6,883		—		24,769
Equity securities at NAV	10,000		10,000
Total equity securities	41,651		41,651

FHLB and Federal Reserve Bank stocks	229,171		229,171		—		229,171		—
Residential loans held for sale	33,011		33,011		—		33,011		—
Commercial loans held for sale	90,303		90,303		—		90,303		—
Loans, net	28,865,124		27,371,086		—		—		27,371,086
Bank and corporate owned life insurance	682,649		682,649		—		682,649		—
Mortgage servicing rights, net	84,390		84,390		—		—		84,390
Interest rate-related instruments designated as hedging instruments(a)	8,075		8,075		—		8,075		—
Foreign currency exchange forwards designated as hedging instruments(a)	632		632		—		632		—
Interest rate-related and other instruments not designated as hedging instruments(a)	111,623		111,623		—		111,623		—
Foreign currency exchange forwards not designated as hedging instruments(a)	2,954		2,954		—		2,954		—
Interest rate lock commitments to originate residential mortgage loans held for sale	439		439		—		—		439

Total selected assets at fair value	$	38,534,897	$	36,561,249	$	967,570	$	8,102,995	$	27,480,684


	Dec 31, 2023
($ in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Liabilities
Deposits:
Noninterest-bearing demand	$	6,119,956	$	6,119,956	$	—	$	—	$	6,119,956
Savings	4,835,701		4,835,701		—		—		4,835,701
Interest-bearing demand	8,843,967		8,843,967		—		—		8,843,967
Money market	6,330,453		6,330,453		—		—		6,330,453
Brokered CDs(a)	4,447,479		4,447,479		—		4,447,479		—
Other time deposits(a)	2,868,494		2,868,494		—		2,868,494		—
Total deposits	33,446,049		33,446,049		—		7,315,973		26,130,076

Federal funds purchased and securities sold under agreements to repurchase	326,780		326,757		—		326,757		—



FHLB advances	1,940,194		1,944,600		—		1,944,600		—
Other long-term funding	541,269		534,983		—		534,983		—
Standby letters of credit(b)	2,157		2,157		—		2,157		—
Interest rate-related instruments designated as hedging instruments(c)	930		930		—		930		—
Foreign currency exchange forwards designated as hedging instruments(c)	2,946		2,946		—		2,946		—
Interest rate-related and other instruments not designated as hedging instruments(c)	195,662		195,662		—		195,662		—
Foreign currency exchange forwards not designated as hedging instruments(c)	2,746		2,746		—		2,746		—

Forward commitments to sell residential mortgage loans	673		673		—		—		673
Total selected liabilities at fair value	$	36,459,407	$	36,457,504	$	—	$	10,326,755	$	26,130,749

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

(b) The commitment on standby letters of credit was $212 million at December 31, 2023. See Note 11 for additional information on the standby letters of credit and for information on the fair value of lending-related commitments.

(c) Figures are presented gross before netting. See Note 9 and Note 10 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, 2024 and the year ended December 31, 2023, 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, 2022	$	86	$	46	$	40
New production	6,557		(1,816)		8,373
Closed loans / settlements	(4,171)		2,494		(6,665)
Other	(2,033)		(51)		(1,982)
Change in mortgage derivative	352		627		(274)

Balance December 31, 2023	$	439	$	673	$	(234)
New production	$	1,820	$	(590)	$	2,409
Closed loans / settlements	(1,546)		188		(1,734)
Other	(46)		(49)		3
Change in mortgage derivative	227		(451)		678

Balance March 31, 2024	$	666	$	222	$	444

Equity Securities without Readily Determinable Fair Value [Table Text Block]

The following table presents a rollforward of the fair value of Level 3 equity securities, for the three months ended March 31, 2024 and the year ended December 31, 2023, that are measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes:


($ in thousands)
Fair value as of December 31, 2022	$	19,225
Gains recognized in investment securities gains, net	5,861

Purchases	11
Sales	(329)

Fair value as of December 31, 2023	$	24,769

Gains recognized in investment securities gains, net	$	4,054
Purchases	8
Sales	(28,725)

Fair value as of March 31, 2024	$	105

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)

March 31, 2024

Assets

Individually evaluated loans

Level 3

67,625

Provision for credit losses

22,305

OREO(b)

Level 2

102

Other noninterest expense / provision for credit losses(c)

December 31, 2023

Assets

Individually evaluated loans

Level 3

47,221

Provision for credit losses

45,709

OREO(b)

Level 2

3,139

Other noninterest expense / provision for credit losses(c)

2,532

Equity securities without readily determinable fair values

Level 3

24,671

Investment securities gains (losses), net

5,785

(a) Includes the YTD impact on the consolidated statements of income.

(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) 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.

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:


March 31, 2024	Valuation Technique	Significant Unobservable Input	Range of Inputs			Weighted Average Input Applied
Mortgage servicing rights	Discounted cash flow	Option adjusted spread	5%	-	8%	5%
Mortgage servicing rights	Discounted cash flow	Constant prepayment rate	—%	-	100%	6%
Individually evaluated loans	Appraisals / Discounted cash flow	Collateral / Discount factor	11%	-	56%	52%
Interest rate lock commitments to originate residential mortgage loans held for sale	Discounted cash flow	Closing Ratio	25%	-	100%	86%