Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of the Notional Amount and Fair Value of the Derivative Financial Instruments

The notional amount and fair value of the Company’s derivative financial instruments as of September 30, 2023, and December 31, 2022, were as follows:

	September 30, 2023					December 31, 2022
(dollars in thousands)	Notional Amount		Fair Value			Notional Amount		Fair Value
Derivatives designated as hedging instruments
Interest Rate Swap Agreements	$	2,000,000	$	8,216		$	—	$	—
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments		11,764		113			3,860		58
Forward Commitments		11,376		68			3,256		6
Interest Rate Swap Agreements
Receive Fixed/Pay Variable Swaps		2,005,276		(200,915	)		1,821,433		(160,914	)
Pay Fixed/Receive Variable Swaps		2,005,276		200,855			1,821,433		38,785
Foreign Exchange Contracts		620		—			52,065		1,745
Conversion Rate Swap Agreement 1		137,110		—			124,752	NA

1The conversion rate swap agreements were valued at zero as further reductions to the conversion rate were deemed neither probable nor reasonably estimable.

Derivative Financial Instruments, their Fair Values, and Balance Sheet Location

The following table presents the Company’s derivative financial instruments, their fair values, and their location in the consolidated statements of condition as of September 30, 2023, and December 31, 2022:

	September 30, 2023				December 31, 2022
	Asset		Liability		Asset		Liability
(dollars in thousands)	Derivatives		Derivatives		Derivatives		Derivatives
Derivatives designated as hedging instruments
Interest Rate Swap Agreements	$	8,216	$	—	$	—	$	—
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments		142		29		64		6
Forward Commitments		71		3		10		4
Interest Rate Swap Agreements		202,305		202,365		45,831		167,960
Foreign Exchange Contracts		—		—		1,812		67
Total	$	210,734	$	202,397	$	47,717	$	168,037

1Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the consolidated statements of condition. The Company’s free-standing derivative financial instruments are required to be carried at their fair value on the Company’s consolidated statements of condition.

Derivative Financial Instruments and the Amount and Location of the Net Gains or Losses Recognized in the Statements of Income

The following table presents the Company’s derivative financial instruments and the amount and location of the net gains or losses recognized in the consolidated statements of income for the three and nine months ended September 30, 2023, and September 30, 2022:

	Location of
	Net Gains (Losses)	Three Months Ended					Nine Months Ended
	Recognized in the	September 30,					September 30,
(dollars in thousands)	Statements of Income	2023			2022		2023			2022
Derivatives designated as hedging instruments
Recognized on Interest Rate Swap Agreements	Interest Income on Investment Securities Available-for-Sale	$	4,954		$	—	$	4,954		$	—
Recognized on Hedged Item	Interest Income on Investment Securities Available-for-Sale		(5,035	)				(5,035	)	$	—
Recognized on Interest Rate Swap Agreements	Interest and Fees on Loans and Leases		2,828			—		3,262			—
Recognized on Hedged Item	Interest and Fees on Loans and Leases		(2,885	)		—		(3,321	)		—
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments	Mortgage Banking		75			1		553			(1,012	)
Forward Commitments	Mortgage Banking		199			289		260			2,510
Interest Rate Swap Agreements	Other Noninterest Income		21			35		3			52
Foreign Exchange Contracts	Other Noninterest Income		816			430		2,460			936
Conversion Rate Swap Agreement	Investment Securities Gains (Losses), Net		(798	)		—		(1,362	)		—
Total		$	175		$	755	$	1,774		$	2,486

Schedule of derivative instruments in statement of financial position related to cumulative basis adjustment for fair value hedges

The following amounts were recorded on the consolidated statement of financial condition related to the cumulative basis adjustment for fair value hedges as of September 30, 2023:

Derivative Financial Instruments
Designated as Hedging Instruments
Line Item in the Consolidated Statement of Condition	Carrying Amount of the Hedged Assets		Cumulative Amount of Fair Value Hedging Adjustment Included In the Carrying Amount of the Hedged Assets
(dollars in thousands)	September 30, 2023		September 30, 2023
Investment Securities, Available-for-Sale1	$	994,965	$	(5,035	)
Loans and Leases2		996,679		(3,321	)

1 These amounts were included in the fair value of closed portfolios of investment securities, available-for-sale used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. As of September 30, 2023, the fair value of the closed portfolios used in these hedging relationships was $1.9 billion.

2 These amounts were included in the amortized cost basis of closed portfolios of loans used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. As of September 30, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $3.2 billion.