Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative instruments in statement of financial condition and statements of income related to cumulative basis adjustment for fair value hedges

The following amounts were recorded on the consolidated statement of financial condition related to cumulative basis adjustment for fair value hedges as of the dates indicated:

Line Item in the Statement of Financial Position in Which the Hedged Item is Included	Carrying Amount of the Hedged Assets				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets
(Dollars in thousands)	June 30, 2022		December 31, 2021		June 30, 2022		December 31, 2021
Loans held for investment (1)	$	1,148,913	$	1,194,702	$	(51,087)	$	(5,298)
Total	$	1,148,913	$	1,194,702	$	(51,087)	$	(5,298)

______________________________

(1) These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At June 30, 2022 and December 31, 2021, the amortized cost basis of the closed portfolios used in these hedging relationships was $3.35 billion and $3.61 billion, respectively, the cumulative basis adjustments associated with these hedging relationships was $(51.1) million and $(5.3) million, respectively; and the amounts of the designated hedged items were $1.20 billion and $1.20 billion, respectively.

The following table presents the effect of fair value hedge accounting on the consolidated statements of income:

		Three Months Ended						Six Months Ended
(Dollars in thousands)	Location of Gain (Loss) Recognized in Income on Derivative Instruments	June 30, 2022		March 31, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Gain (loss) on fair value hedging relationships:
Hedged items	Interest Income	$	(11,866)	$	(33,924)	$	—	$	(45,790)	$	—
Derivatives designated as hedging instruments	Interest Income	12,082		32,257		—		44,339		—

Schedule of derivative instruments

The following tables summarize the Company's derivative instruments included in other assets and other liabilities in the consolidated statements of financial condition:

	June 30, 2022
	Derivative Assets				Derivative Liabilities
(Dollars in thousands)	Notional		Fair Value		Notional		Fair Value
Derivative instruments designated as hedging instruments:
Fair value hedge - interest rate swap contracts	$	1,200,000	$	51,273	$	—	$	—
Total derivative designated as hedging instruments	1,200,000		51,273		—		—
Derivative instruments not designated as hedging instruments:
Interest rate swaps contracts	119,149		7,982		119,149		7,984
Equity warrants	—		1,906		—		—
Total derivative not designated as hedging instruments	119,149		9,888		119,149		7,984
Total derivatives	$	1,319,149	61,161		$	119,149	7,984
Netting Adjustments - Cleared Positions (1)			53,649				—
Total derivatives in the Balance Sheet			$	7,512			$	7,984

______________________________

(1) Netting adjustments represents the variation margin payments that are considered legal settlements of derivative exposure and applied to net the fair value of the respective derivative contracts in accordance with the applicable accounting guidance on the settle-to-market rule for cleared derivatives.

	December 31, 2021
	Derivative Assets				Derivative Liabilities
(Dollars in thousands)	Notional		Fair Value		Notional		Fair Value
Derivative instruments designated as hedging instruments:
Fair value hedge - interest rate swap contracts	$	1,100,000	$	4,874	$	100,000	$	33
Total derivative designated as hedging instruments	1,100,000		4,874		100,000		33
Derivative instruments not designated as hedging instruments:
Interest rate swaps contracts	132,056		5,226		132,056		5,230
Equity warrants	—		1,889		—		—
Total derivative not designated as hedging instruments	132,056		7,115		132,056		5,230
Total derivatives	$	1,232,056	$	11,989	$	232,056	$	5,263

The following table summarizes the effect of the derivatives not designated as hedging instruments in the consolidated statements of income.

(Dollars in thousands)		Three Months Ended						Six Months Ended
Derivatives Not Designated as Hedging Instruments:	Location of Gain (Loss) Recognized in Income on Derivative Instruments	June 30, 2022		March 31, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Interest rate products	Other income	$	2	$	1	$	1	$	3	$	8
Equity warrants	Other income	(2)		19		(8)		17		(11)
Total		$	—	$	20	$	(7)	$	20	$	(3)