Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Derivative Financial Instruments

The tables below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statements of Financial Condition at September 30, 2021 and December 31, 2020 (in thousands):

	At September 30, 2021
	Asset Derivatives			Liability Derivatives
	Consolidated Statements of Financial Condition	Fair  value (1)		Consolidated Statements of Financial Condition	Fair  value (1)
Derivatives not designated as a hedging instrument:
Interest rate products	Other assets	$	71,779	Other liabilities	72,947
Credit contracts	Other assets	107		Other liabilities	40
Total derivatives not designated as a hedging instrument		$	71,886		72,987
Derivatives designated as a hedging instrument:
Interest rate products	Other assets	$	4,337	Other liabilities	4,052
Total derivatives designated as a hedging instrument		$	4,337		4,052

	At December 31, 2020
	Asset Derivatives			Liability Derivatives
	Consolidated Statements of Financial Condition	Fair value (1)		Consolidated Statements of Financial Condition	Fair value (1)
Derivatives not designated as a hedging instrument:
Interest rate products	Other assets	$	107,652	Other liabilities	109,148
Credit contracts	Other assets	97		Other liabilities	—
Total derivatives not designated as a hedging instrument		$	107,749		109,148
Derivatives designated as a hedging instrument:
Interest rate products	Other assets	$	(6,671)	Other liabilities	—
Total derivatives designated as a hedging instrument		$	(6,671)		—

(1) The fair values related to interest rate products in the above derivative financial instruments tables show the value of assets and liabilities, excluding accrued interest receivable and accrued interest payable for the periods ended September 30, 2021 and December 31, 2020.

Effect of the derivative financial instruments on the Income Statement

The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income during the three and nine months ended September 30, 2021 and 2020 (in thousands).

		Gain (loss) recognized in income on derivatives for the three months ended
	Consolidated Statements of Income	September 30, 2021		September 30, 2020
Derivatives not designated as a hedging instrument:
Interest rate products	Other income	$	191	26
Credit contracts	Other income	(19)		460
Total		$	172	486
Derivatives designated as a hedging instrument:
Interest rate products	Interest expense	$	1,030	855
Total		$	1,030	855

		Gain (loss) recognized in income on derivatives for the nine months ended
	Consolidated Statements of Income	September 30, 2021		September 30, 2020
Derivatives not designated as a hedging instrument:
Interest rate products	Other income	$	268	(1,022)
Credit contracts	Other income	28		459
Total		$	296	(563)
Derivatives designated as a hedging instrument:
Interest rate products	Interest expense	$	2,856	875
Total		$	2,856	875

Offsetting Assets

	Fair Values of Derivative Instruments as of September 30, 2021
	Asset Derivatives					Liability Derivatives
	Notional Amount		Consolidated Statements of Financial Condition	Fair  value (2)		Notional Amount		Consolidated Statements of Financial Condition	Fair  value (2)
Derivatives not designated as a hedging instrument:
Interest rate products	$	1,272,593	Other assets	$	72,511	$	1,272,593	Other liabilities	$	73,679
Credit contracts	47,712		Other assets	107		92,950		Other liabilities	40
Total derivatives not designated as a hedging instrument				72,618					73,719
Derivatives designated as a hedging instrument:
Interest rate products	250,000		Other assets	4,301		350,000		Other liabilities	4,493
Total gross derivative amounts recognized on the balance sheet				76,919					78,212
Gross amounts offset on the balance sheet				—					—
Net derivative amounts presented on the balance sheet				$	76,919				$	78,212
Gross amounts not offset on the balance sheet:
Financial instruments - institutional counterparties				$	16,195				$	16,195
Cash collateral - institutional counterparties (1)				—					46,895
Net derivatives not offset				$	60,724				$	15,122

	Fair Values of Derivative Instruments as of December 31, 2020
	Asset Derivatives					Liability Derivatives
	Notional Amount		Consolidated Statements of Financial Condition	Fair  value (2)		Notional Amount		Consolidated Statements of Financial Condition	Fair  value (2)
Derivatives not designated as a hedging instrument:
Interest rate products	$	1,316,163	Other assets	$	108,519	$	1,316,163	Other liabilities	$	109,957
Credit contracts	47,745		Other assets	97		73,954		Other liabilities	58
Total derivatives not designated as a hedging instrument				108,616					110,015
Derivatives designated as a hedging instrument:
Interest rate products	175,000		Other assets	498		425,000		Other liabilities	7,582
Total gross derivative amounts recognized on the balance sheet				109,114					117,597
Gross amounts offset on the balance sheet				—					—
Net derivative amounts presented on the balance sheet				$	109,114				$	117,597
Gross amounts not offset on the balance sheet:
Financial instruments - institutional counterparties				$	928				$	928
Cash collateral - institutional counterparties (1)				—					113,620
Net derivatives not offset				$	108,186				$	3,049

(1) Cash collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The application of the cash collateral cannot reduce the net derivative position below zero. Therefore, excess cash collateral, if any, is not reflected above.

(2) The fair values related to interest rate products in the above net derivative tables show the total value of assets and liabilities, which include accrued interest receivable and accrued interest payable for the periods ended September 30, 2021 and December 31, 2020.

Offsetting Liabilities

	Fair Values of Derivative Instruments as of September 30, 2021
	Asset Derivatives					Liability Derivatives
	Notional Amount		Consolidated Statements of Financial Condition	Fair  value (2)		Notional Amount		Consolidated Statements of Financial Condition	Fair  value (2)
Derivatives not designated as a hedging instrument:
Interest rate products	$	1,272,593	Other assets	$	72,511	$	1,272,593	Other liabilities	$	73,679
Credit contracts	47,712		Other assets	107		92,950		Other liabilities	40
Total derivatives not designated as a hedging instrument				72,618					73,719
Derivatives designated as a hedging instrument:
Interest rate products	250,000		Other assets	4,301		350,000		Other liabilities	4,493
Total gross derivative amounts recognized on the balance sheet				76,919					78,212
Gross amounts offset on the balance sheet				—					—
Net derivative amounts presented on the balance sheet				$	76,919				$	78,212
Gross amounts not offset on the balance sheet:
Financial instruments - institutional counterparties				$	16,195				$	16,195
Cash collateral - institutional counterparties (1)				—					46,895
Net derivatives not offset				$	60,724				$	15,122

	Fair Values of Derivative Instruments as of December 31, 2020
	Asset Derivatives					Liability Derivatives
	Notional Amount		Consolidated Statements of Financial Condition	Fair  value (2)		Notional Amount		Consolidated Statements of Financial Condition	Fair  value (2)
Derivatives not designated as a hedging instrument:
Interest rate products	$	1,316,163	Other assets	$	108,519	$	1,316,163	Other liabilities	$	109,957
Credit contracts	47,745		Other assets	97		73,954		Other liabilities	58
Total derivatives not designated as a hedging instrument				108,616					110,015
Derivatives designated as a hedging instrument:
Interest rate products	175,000		Other assets	498		425,000		Other liabilities	7,582
Total gross derivative amounts recognized on the balance sheet				109,114					117,597
Gross amounts offset on the balance sheet				—					—
Net derivative amounts presented on the balance sheet				$	109,114				$	117,597
Gross amounts not offset on the balance sheet:
Financial instruments - institutional counterparties				$	928				$	928
Cash collateral - institutional counterparties (1)				—					113,620
Net derivatives not offset				$	108,186				$	3,049

(1) Cash collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The application of the cash collateral cannot reduce the net derivative position below zero. Therefore, excess cash collateral, if any, is not reflected above.

(2) The fair values related to interest rate products in the above net derivative tables show the total value of assets and liabilities, which include accrued interest receivable and accrued interest payable for the periods ended September 30, 2021 and December 31, 2020.