Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 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 June 30, 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	3.07	5.34	%	3.02	%	$	(231)
Total	$	2,400,000						$	(231)

(1)The fair value included a net accrued interest payable balance of $2.5 million as of June 30, 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:


	June 30, 2024
	Number of Positions	Total Notional
	(Dollars in thousands)
Interest rate swaps	346	$	2,409,950
Risk participation agreements	78	314,187
Foreign exchange contracts:
Matched commercial customer book	328	112,771
Foreign currency loan	8	7,970


	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 June 30, 2024		Fair Value at December 31, 2023		Balance Sheet Location	Fair Value at June 30, 2024		Fair Value at December 31, 2023
	(In thousands)
Derivatives designated as hedging instruments
Interest rate swaps	Other assets	$	10	$	10	Other liabilities	$	241	$	893
Derivatives not designated as hedging instruments
Customer-related positions:
Interest rate swaps	Other assets	$	19,240	$	19,535	Other liabilities	$	67,944	$	61,217
Risk participation agreements	Other assets	5		151		Other liabilities	2		106
Foreign currency exchange contracts - matched customer book	Other assets	616		760		Other liabilities	626		672
Foreign currency exchange contracts - foreign currency loan	Other assets	38		—		Other liabilities	14		187
		$	19,899	$	20,446		$	68,586	$	62,182
Total		$	19,909	$	20,456		$	68,827	$	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:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
	(In thousands)
Derivatives designated as hedges:
Loss in OCI on derivatives	$	(11,996)	$	(56,892)	$	(51,551)	$	(37,146)
Loss reclassified from OCI into interest income (effective portion)	$	(14,062)	$	(11,928)	$	(28,103)	$	(20,834)
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	$	373	$	390	$	508	$	(140)
Gain (loss) recognized in interest rate swap income for risk participation agreements	—		8		(42)		29
(Loss) gain recognized in other income for foreign currency exchange contracts:
Matched commercial customer book	(148)		6		(98)		20
Foreign currency loan	(11)		(288)		211		(152)
Net gain (loss) for derivatives not designated as hedges	$	214	$	116	$	579	$	(243)