Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2024

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 June 30, 2024, and December 31, 2023, were as follows:

	June 30, 2024					December 31, 2023
(dollars in thousands)	Notional Amount		Fair Value			Notional Amount		Fair Value
Derivatives designated as hedging instruments
Interest Rate Swap Agreements	$	3,000,000	$	(1,873	)	$	3,000,000	$	(48,672	)
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments		8,358		132			5,899		148
Forward Commitments		9,874		33			8,583		(105	)
Interest Rate Swap Agreements
Receive Fixed/Pay Variable Swaps		2,067,071		(151,347	)		2,067,624		(114,701	)
Pay Fixed/Receive Variable Swaps		2,067,071		151,242			2,067,624		114,542
Foreign Exchange Contracts		473		—			745		—
Conversion Rate Swap Agreements 1		81,251	NA				155,196	NA
Makewhole Agreements 2		55,670	NA				—	NA

1 The conversion rate swap agreements were valued at zero as further reductions to the conversion rate were not reasonably estimable.

2 The makewhole agreements were valued at zero as the likelihood of a payment required to the counterparty were not 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 unaudited consolidated statements of condition as of June 30, 2024 and December 31, 2023:

	June 30, 2024					December 31, 2023
	Asset			Liability		Asset			Liability
(dollars in thousands)	Derivatives1			Derivatives1		Derivatives1			Derivatives1
Interest Rate Swap Agreements
Not designated as hedging instruments	$	163,723		$	163,828	$	143,593		$	143,752
Designated as hedging instruments		(1,873	)		—		(48,672	)		—
		161,850			163,828		94,921			143,752
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments		134			2		148			—
Forward Commitments		36			3		—			105
Total Derivatives	$	162,020		$	163,833	$	95,069		$	143,857

1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the unaudited consolidated statements of condition. The Company’s free-standing derivative financial instruments are carried at fair value on the Company’s unaudited 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 unaudited consolidated statements of income for the three and six months ended June 30, 2024 and June 30, 2023:

	Location of
	Net Gains (Losses)	Three Months Ended						Six Months Ended
	Recognized in the	June 30,						June 30,
(dollars in thousands)	Statements of Income	2024			2023			2024			2023
Derivatives designated as hedging instruments
Recognized on Interest Rate Swap Agreements	Interest Income on Investment Securities Available-for-Sale	$	3,082		$	—		$	19,975		$	—
Recognized on Hedged Item	Interest Income on Investment Securities Available-for-Sale		(3,145	)		—			(20,147	)		—
Recognized on Interest Rate Swap Agreements	Interest and Fees on Loans and Leases		4,222			434			26,824			434
Recognized on Hedged Item	Interest and Fees on Loans and Leases		(4,308	)		(435	)		(27,060	)		(435	)
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments	Mortgage Banking		122			274			245			478
Forward Commitments	Mortgage Banking		119			92			215			61
Interest Rate Swap Agreements	Other Noninterest Income		10			(2	)		53			(18	)
Foreign Exchange Contracts	Other Noninterest Income		1,069			802			2,240			1,643
Total		$	1,171		$	1,165		$	2,345		$	2,163

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 June 30, 2024 and December 31, 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)	June 30, 2024		December 31, 2023		June 30, 2024		December 31, 2023
Investment Securities, Available-for-Sale1	$	1,300,113	$	1,320,260	$	113	$	20,260
Loans and Leases2		1,701,327		1,728,386		1,327		28,386

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 June 30, 2024 and December 31, 2023, the fair value of the closed portfolios used in these hedging relationships was $1.8 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 June 30, 2024 and December 31, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $3.1 billion and $3.2 billion, respectively.