Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Summary of Derivative Instruments [Abstract]

The following tables reflect 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, 2024
				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	3.32	5.33	%	3.02	%	$	(1,585)
Total	$	2,400,000						$	(1,585)

(1)The fair value included a net accrued interest payable balance of $2.6 million as of March 31, 2024. In addition, the fair value includes netting adjustments which represent the amounts recorded to convert derivative assets and liabilities cleared through the Chicago Mercantile Exchange, or CME, from a gross basis to a net basis in accordance with applicable accounting guidance.


As of December 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	3.57	5.35	%	3.02	%	$	(883)
Total	$	2,400,000						$	(883)

(1)The fair value included a net accrued interest payable balance of $2.6 million as of December 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.

Schedule of 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, 2024
	Number of Positions	Total Notional
	(Dollars in thousands)
Interest rate swaps	348	$	2,467,266
Risk participation agreements	79	332,188
Foreign exchange contracts:
Matched commercial customer book	286	162,799
Foreign currency loan	16	10,818


	December 31, 2023
	Number of Positions	Total Notional
	(Dollars in thousands)
Interest rate swaps	356	$	2,405,835
Risk participation agreements	78	323,957
Foreign exchange contracts:
Matched commercial customer book	98	87,601
Foreign currency loan	10	10,242

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, 2024		Fair Value at December 31, 2023		Balance Sheet Location	Fair Value at March 31, 2024		Fair Value at December 31, 2023
	(In thousands)
Derivatives designated as hedging instruments
Interest rate swaps	Other assets	$	11	$	10	Other liabilities	$	1,595	$	893
Derivatives not designated as hedging instruments
Customer-related positions:
Interest rate swaps	Other assets	$	20,924	$	19,535	Other liabilities	$	71,181	$	61,217
Risk participation agreements	Other assets	6		151		Other liabilities	3		106
Foreign currency exchange contracts - matched customer book	Other assets	1,340		760		Other liabilities	1,202		672
Foreign currency exchange contracts - foreign currency loan	Other assets	35		—		Other liabilities	—		187
		$	22,305	$	20,446		$	72,386	$	62,182
Total		$	22,316	$	20,456		$	73,981	$	63,075

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:


	For the Three Months Ended March 31,
	2024		2023
	(In thousands)
Derivatives designated as hedges:
(Loss) gain in OCI on derivatives	$	(39,555)	$	19,747
Loss reclassified from OCI into interest income (effective portion)	$	(14,041)	$	(8,905)
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	$	135	$	(530)
(Loss) gain recognized in interest rate swap income for risk participation agreements	(42)		21
Gain recognized in other income for foreign currency exchange contracts:
Matched commercial customer book	50		14
Foreign currency loan	222		136
Total gain (loss) for derivatives not designated as hedges	$	365	$	(359)