Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Summary of Derivative Instruments [Abstract]

Schedule of Interest Rate Derivatives

The following table reflects the Company’s derivative positions for interest rate swaps which qualify as cash flow hedges for accounting purposes as of the dates indicated:

As of March 31, 2023
				Weighted Average Rate
	Notional Amount		Weighted Average Maturity	Current Rate Paid		Receive Fixed Swap Rate		Fair Value (1)
	(In thousands)		(In Years)					(In thousands)
Interest rate swaps on loans	$	2,400,000	4.32	4.64	%	3.02	%	$	2,642
Total	$	2,400,000						$	2,642

(1)The fair value included a net accrued interest payable balance of $1.9 million as of March 31, 2023. In addition, the fair value includes netting adjustments which represent the amounts recorded to convert derivative assets and liabilities cleared through the CME from a gross basis to a net basis in accordance with applicable accounting guidance.

As of December 31, 2022
				Weighted Average Rate
	Notional Amount		Weighted Average Maturity	Current Rate Paid		Receive Fixed Swap Rate		Fair Value (1)
	(In thousands)		(In Years)					(In thousands)
Interest rate swaps on loans	$	2,400,000	4.57	4.07	%	3.02	%	$	(2,401)
Total	$	2,400,000						$	(2,401)

(1)The fair value included a net accrued interest payable balance of $1.5 million as of December 31, 2022. In addition, the fair value includes netting adjustments which represent the amounts recorded to convert derivative assets and liabilities cleared through the CME from a gross basis to a net basis in accordance with applicable accounting guidance.

Schedule of Pre-tax Impact of Terminated Cash Flow Hedges on AOCI

The following table presents the pre-tax impact of terminated cash flow hedges on AOCI for the periods indicated:

	For the Three Months Ended March 31,
	2023		2022
	(In thousands)
Unrealized gains on terminated hedges included in AOCI – beginning of respective period	$	46	$	10,239
Unrealized gains on terminated hedges arising during the period	—		—
Reclassification adjustments for amortization of unrealized gains into net income	(46)		(5,298)
Unrealized gains on terminated hedges included in AOCI – end of respective period	$	—	$	4,941

Derivatives Not Designated as Hedging Instruments

The following tables present the Company’s customer-related derivative positions as of the dates indicated below for those derivatives not designated as hedging.

	March 31, 2023
	Number of Positions	Total Notional
	(Dollars in thousands)
Interest rate swaps	382	$	2,387,490
Risk participation agreements	65	245,278
Foreign exchange contracts:
Matched commercial customer book	52	7,578
Foreign currency loan	5	14,898

	December 31, 2022
	Number of Positions	Total Notional
	(Dollars in thousands)
Interest rate swaps	382	$	2,404,003
Risk participation agreements	63	241,029
Foreign exchange contracts:
Matched commercial customer book	32	7,877
Foreign currency loan	5	13,948

Schedule of Derivative Financial Instruments

The table below presents the fair value of the Company’s derivative financial instruments, as well as their classification on the Consolidated Balance Sheets for the periods indicated.

	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	Fair Value at March 31, 2023		Fair Value at December 31, 2022		Balance Sheet Location	Fair Value at March 31, 2023		Fair Value at December 31, 2022
	(In thousands)
Derivatives designated as hedging instruments
Interest rate swaps	Other assets	$	2,648	$	16	Other liabilities	$	6	$	2,417
Derivatives not designated as hedging instruments
Customer-related positions:
Interest rate swaps	Other assets	$	16,996	$	23,567	Other liabilities	$	61,644	$	78,577
Risk participation agreements	Other assets	130		78		Other liabilities	161		130
Foreign currency exchange contracts - matched customer book	Other assets	145		198		Other liabilities	138		205
Foreign currency exchange contracts - foreign currency loan	Other assets	45		2		Other liabilities	—		93
		$	17,316	$	23,845		$	61,943	$	79,005
Total		$	19,964	$	23,861		$	61,949	$	81,422

Schedule of Derivative Financial Instruments On The Consolidated Income Statements

The table below presents the net effect of the Company’s derivative financial instruments on the Consolidated Income Statements as well as the effect of the Company’s derivative financial instruments included in other comprehensive income (“OCI”) as follows:

	Three Months Ended March 31,
	2023		2022
	(In thousands)
Derivatives designated as hedges:
Gain in OCI on derivatives	$	19,747	$	—
(Loss) gain reclassified from OCI into interest income (effective portion)	$	(8,905)	$	5,298
Gain recognized in income on derivatives (ineffective portion and amount excluded from effectiveness test)
Interest income	—		—
Other income	—		—
Total	$	—	$	—
Derivatives not designated as hedges:
Customer-related positions:
(Loss) gain recognized in interest rate swap income	$	(530)	$	2,298
Gain recognized in interest rate swap income for risk participation agreements	21		60
Gain (loss) recognized in other income for foreign currency exchange contracts:
Matched commercial customer book	14		(2)
Foreign currency loan	136		78
Total (loss) gain for derivatives not designated as hedges	$	(359)	$	2,434