Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2022

General Discussion of Derivative Instruments and Hedging Activities [Abstract]

The following table reflects the Company’s derivative positions as of December 31, 2022 for interest rate swaps which qualify as cash flow hedges for accounting purposes:


				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.

Summary of Pre-tax Impact of Terminated Cash Flow Hedged on AOCI

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


	Year Ended December 31,
	2022		2021		2020
	(In thousands)
Unrealized gains on terminated hedges included in AOCI — January 1	$	10,239	$	41,473	$	—
Unrealized gains on terminated hedges arising during the period	—		—		57,362
Reclassification adjustments for amortization of unrealized (gains) into net interest income	(10,193)		(31,234)		(15,889)
Unrealized gains on terminated hedges included in AOCI — December 31	$	46	$	10,239	$	41,473

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:


	As of 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


	As of December 31, 2021
	Number of Positions	Total Notional
	(Dollars in thousands)
Interest rate swaps	494	$	3,009,150
Risk participation agreements	64	238,772
Foreign exchange contracts:
Matched commercial customer book	72	7,922
Foreign currency loan	6	10,830

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 December 31, 2022		Fair Value at December 31, 2021		Balance Sheet Location	Fair Value at December 31, 2022		Fair Value at December 31, 2021
	(In thousands)
Derivatives designated as hedging instruments
Interest rate swaps	Other assets	$	16	$	—	Other liabilities	$	2,417	$	—
Derivatives not designated as hedging instruments
Customer-related positions:
Interest rate swaps	Other assets	$	23,567	$	64,338	Other liabilities	$	78,577	$	17,880
Risk participation agreements	Other assets	78		315		Other liabilities	130		580
Foreign currency exchange contracts — matched customer book	Other assets	198		61		Other liabilities	205		46
Foreign currency exchange contracts — foreign currency loan	Other assets	2		—		Other liabilities	93		87
		$	23,845	$	64,714		$	79,005	$	18,593
Total		$	23,861	$	64,714		$	81,422	$	18,593

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 Statements of Income as well as the effect of the Company’s derivative financial instruments included in other comprehensive income (“OCI”) as follows:


	For the Year Ended December 31,
	2022		2021		2020
	(In thousands)
Derivatives designated as hedges:
Gain in OCI on derivatives	$	(69,010)	$	—	$	46,871
Gain reclassified from OCI into interest income (effective portion)	$	9,580	$	31,234	$	27,131
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:
Gain (loss) recognized in interest rate swap income	$	4,324	$	4,962	$	(3,812)
Gain (loss) recognized in interest rate swap income for risk participation agreements	213		243		(384)
Gain (loss) recognized in other income for foreign currency exchange contracts:
Matched commercial customer book	(22)		1		(28)
Foreign currency loan	(4)		(27)		143
Total gain (loss) for derivatives not designated as hedges	$	4,511	$	5,179	$	(4,081)