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Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
The Corporation uses derivatives to manage its exposure to certain market risks, including interest rate and foreign currency risks, and to assist customers with their risk management objectives. Certain of the Corporation's outstanding derivative contracts are designated as hedges, and none are entered into for speculative purposes. The Corporation enters into derivative contracts that are intended to economically hedge certain of its risks, even if hedge accounting does not apply or the Corporation elects not to apply hedge accounting.

For additional information on our derivative accounting policies see "Note 1 - Summary of Significant Accounting Policies" under the heading "Derivative Financial Instruments" in our Annual Report on Form 10-K for the year ended December 31, 2024.
The following table presents a summary of the notional amounts and fair values of derivative financial instruments:

 September 30, 2025December 31, 2024
 Notional
Amount		Asset
(Liability)
Fair Value		Notional
Amount		Asset
(Liability)
Fair Value
 (dollars in thousands)
Interest Rate Locks with Customers
Positive fair values$188,054 $753 $171,933 $389 
Negative fair values1,803 (3)3,888 (58)
Forward Commitments
Positive fair values— — 51,250 363 
Negative fair values63,750 (490)— — 
Interest Rate Derivatives with Customers(1)
Positive fair values1,918,631 42,131 767,905 8,480 
Negative fair values2,921,400 (134,590)3,976,294 (239,058)
Interest Rate Derivatives with Dealer Counterparties
Positive fair values 2,921,400 78,589 3,976,294 150,480 
Negative fair values1,918,631 (42,501)767,905 (10,734)
Interest Rate Derivatives used in Cash Flow Hedges
Positive fair values
2,450,000 7,147 2,500,000 227 
Negative fair values
350,000 (49)1,400,000 (2,971)
Foreign Exchange Contracts with Customers
Positive fair values2,955 29 28,327 1,619 
Negative fair values16,700 (965)693 (27)
Foreign Exchange Contracts with Correspondent Banks
Positive fair values18,930 1,150 4,059 63 
Negative fair values1,154 (5)32,406 (1,569)
(1) Fair values are net of a valuation allowance of $366.3 thousand as of September 30, 2025 and December 31, 2024.
The following table presents the effect of cash flow hedge accounting on AOCI:

Amount of Gain (Loss) Recognized in OCI on Derivative Amount of Gain (Loss) Recognized in OCI Included ComponentAmount of Gain (Loss) Recognized in OCI Excluded ComponentLocation of Gain (Loss) Recognized from AOCI into IncomeAmount of Gain (Loss) Reclassified from AOCI into Income Amount of Gain (Loss) Reclassified from AOCI into Income Included ComponentAmount of Gain (Loss) Reclassified from AOCI into Income Excluded Component
(dollars in thousands)
Three months ended September 30, 2025
Interest Rate Products$(1,807)$(1,807)$— Interest Income$(5,568)$(5,568)$— 
Interest Rate Products1,434 1,434 — Interest Expense(361)(361)— 
Total$(373)$(373)$— $(5,929)$(5,929)$— 
Three months ended September 30, 2024
Interest Rate Products$2,247 $2,247 $— Interest Income$(7,109)$(7,109)$— 
Interest Rate Products(10,811)(10,811)— Interest Expense1,965 1,965 — 
Total$(8,564)$(8,564)$— $(5,144)$(5,144)$— 
Nine months ended September 30, 2025
Interest Rate Products$1,450 $1,450 $— Interest Income$(15,106)$(15,106)$— 
Interest Rate Products514 514 — Interest Expense(481)(481)— 
Total$1,964 $1,964 $— $(15,587)$(15,587)$— 
Nine months ended September 30, 2024
Interest Rate Products$(3,794)$(3,794)$— Interest Income$(21,174)$(21,174)$— 
Interest Rate Products3,702 3,702 — Interest Expense6,015 6,015 — 
Total$(92)$(92)$— $(15,159)$(15,159)$— 
The following table presents the effect of fair value and cash flow hedge accounting on the income statement:

Consolidated Statements of Income Classification
20252024
Interest IncomeInterest ExpenseInterest IncomeInterest Expense
(dollars in thousands)
Three months ended September 30
Total amounts of income line items presented in the Consolidated Statements of Income in which the effects of fair value or cash flow hedges are recorded$(5,568)$(361)$(7,109)$1,965 
The effects of fair value and cash flow hedging:
Amount of (loss) gain reclassified from AOCI into income(5,568)(361)(7,109)1,965 
Interest rate derivatives:
Amount of (loss) gain reclassified from AOCI into income as a result of a forecasted transaction that is no longer probable of occurring— — — — 
Amount of (loss) gain reclassified from AOCI into income - included component(5,568)(361)(7,109)1,965 
Amount of (loss) gain reclassified from AOCI into income - excluded component— — — — 
Nine months ended September 30
Total amounts of income line items presented in the Consolidated Statements of Income in which the effects of fair value or cash flow hedges are recorded$(15,106)$(481)$(21,174)$6,015 
The effects of fair value and cash flow hedging:
Amount of (loss) gain reclassified from AOCI into income(15,106)(481)(21,174)6,015 
Interest rate derivatives:
Amount of (loss) gain reclassified from AOCI into income as a result of a forecasted transaction that is no longer probable of occurring— — — — 
Amount of (loss) gain reclassified from AOCI into income - included component(15,106)(481)(21,174)6,015 
Amount of (loss) gain reclassified from AOCI into income - excluded component— — — — 

During the next twelve months, the Corporation estimates that an additional $6.4 million will be reclassified as a decrease to net interest income.
The following table presents the fair value gains (losses) on derivative financial instruments:

Consolidated Statements of Income ClassificationThree months ended September 30Nine months ended September 30
 2025202420252024
(dollars in thousands)
Mortgage banking derivatives(1)
Mortgage banking income$(298)$(320)$(432)$801 
Interest rate derivativesOther income138 (138)269 149 
Foreign exchange contractsOther income(20)48 122 170 
Net fair value gains (losses) on derivative financial instruments$(180)$(410)$(41)$1,120 
(1) Includes interest rate locks with customers and forward commitments.

The Corporation has elected to measure mortgage loans held for sale at fair value. The following table presents mortgage loans held for sale and the impact of the fair value election on the Consolidated Financial Statements:

September 30,
2025		December 31,
2024
 (dollars in thousands)
Amortized cost(1)
$19,451 $25,316 
Fair value19,875 25,618 
(1) Cost basis of mortgage loans held for sale represents the unpaid principal balance.

Losses related to changes in fair values of mortgage loans held for sale were $0.1 million for the three months ended September 30, 2025 compared to $0.2 million for the three months ended September 30, 2024. Gains related to changes in fair values of mortgage loans held for sale were $0.1 million for the nine months ended September 30, 2025 compared to nominal losses for the nine months ended September 30, 2024. Gains and losses are recorded on the Consolidated Statements of Income as adjustments to mortgage banking income.
Balance Sheet Offsetting

The fair values of interest rate derivative agreements and foreign exchange contracts the Corporation enters into with customers and dealer counterparties may be eligible for offset on the Consolidated Balance Sheets if they are subject to master netting arrangements or similar agreements. The Corporation has elected to net its financial assets and liabilities designated as interest rate derivatives when offsetting is permitted. The following table presents the Corporation's financial instruments that are eligible for offset, and the effects of offsetting, on the Consolidated Balance Sheets:

Gross AmountsGross Amounts Not Offset
Recognized on the Consolidated
on the Balance Sheets
ConsolidatedFinancialCashNet
Balance Sheets
Instruments(1)
Collateral(2)
Amount
(dollars in thousands)
September 30, 2025
Interest rate derivative assets$127,867 $(19,549)$— $108,318 
Foreign exchange derivative assets with correspondent banks1,150 (1,150)— — 
Total $129,017 $(20,699)$— $108,318 
Interest rate derivative liabilities$177,140 $(26,647)$(55,423)$95,070 
Foreign exchange derivative liabilities with correspondent banks5 (1,150)— (1,145)
Total$177,145 $(27,797)$(55,423)$93,925 
December 31, 2024
Interest rate derivative assets$159,187 $(12,739)$— $146,448 
Foreign exchange derivative assets with correspondent banks63 (63)— — 
Total$159,250 $(12,802)$— $146,448 
Interest rate derivative liabilities$252,763 $(9,995)$(94,339)$148,429 
Foreign exchange derivative liabilities with correspondent banks1,569 (63)— 1,506 
Total$254,332 $(10,058)$(94,339)$149,935 
(1) For interest rate derivative assets, amounts represent any derivative liability fair values that could be offset in the event of counterparty or customer default.
For interest rate derivative liabilities, amounts represent any derivative asset fair values that could be offset in the event of counterparty or customer default.
(2) Amounts represent cash collateral received from the counterparty or posted by the Corporation on interest rate derivative transactions and foreign exchange
contracts with financial institution counterparties. Interest rate derivatives with customers are collateralized by the same collateral securing the underlying
loans to those borrowers. Cash and securities collateral amounts are included in the table only to the extent of the net derivative fair values.

Cash Flow Hedge Terminations

In January 2023, the Corporation terminated interest rate derivatives designated as cash flow hedges with a combined notional amount of $1.0 billion. As the hedged transaction continues to be probable, the unrealized losses that have been recorded in AOCI are recognized as a reduction to interest income, including fees, when the previously forecasted hedged item affects earnings in future periods. During the nine months ended September 30, 2025, $9.7 million of these unrealized losses have been reclassified as a reduction of interest income on loans, including fees, on the Consolidated Statements of Income. During the year ended December 31, 2024, $27.9 million of these unrealized losses have been reclassified as a reduction of interest income on loans, including fees, on the Consolidated Statements of Income.