Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2025

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 March 31, 2025, and December 31, 2024 were as follows:

	March 31, 2025					December 31, 2024
(dollars in thousands)	Notional Amount		Fair Value			Notional Amount		Fair Value
Derivatives designated as hedging instruments
Interest Rate Swap Agreements 1	$	2,000,000	$	(9,006	)	$	2,000,000	$	2,738
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments		2,470		58			1,534		34
Forward Commitments		4,836		(15	)		3,517		6
Interest Rate Swap Agreements
Receive Fixed/Pay Variable Swaps		2,192,824		(100,625	)		2,123,665		(136,218	)
Pay Fixed/Receive Variable Swaps		2,192,824		100,513			2,123,665		136,125
Conversion Rate Swap Agreements 2		106,672	NA				96,466	NA
Makewhole Agreements 3		72,647	NA				65,763	NA

1.As of March 31, 2025 and December 31, 2024, the amounts presented in the table above exclude forward starting swaps with a notional value of $300 million and a fair value of $2.4 million and $4.7 million, respectively. These swaps are scheduled to begin between August 2025 and March 2026.

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

3.The makewhole agreements were valued at zero as the likelihood of a payment required to the buyer was 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 March 31, 2025 and December 31, 2024:

	March 31, 2025				December 31, 2024
(dollars in thousands)	Asset Derivatives 1		Liability Derivatives 1		Asset Derivatives 1		Liability Derivatives 1
Interest Rate Swap Agreements
Not designated as hedging instruments	$	120,021	$	120,133	$	146,923	$	147,016
Designated as hedging instruments		5,604		12,177		14,507		7,039
		125,625		132,310		161,430		154,055
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments		58		—		34		—
Forward Commitments		—		15		9		3
Total Derivatives	$	125,683	$	132,325	$	161,473	$	154,058

1.Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the unaudited consolidated statements of condition. Derivatives are recognized on the Company's unaudited consolidated statements of condition at fair value.

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 months ended March 31, 2025 and 2024:

	Location of Net Gains (Losses)	Three Months Ended March 31,
(dollars in thousands)	Recognized in the Statements of Income	2025			2024
Derivatives designated as hedging instruments
Recognized on Interest Rate Swap Agreements	Interest Income on Investment Securities Available-for-Sale	$	(5,662	)	$	16,893
Recognized on Hedged Item	Interest Income on Investment Securities Available-for-Sale		5,673			(17,002	)
Net Cash Settlements	Interest Income on Investment Securities Available-for-Sale		(1,868	)		2,722
Recognized on Interest Rate Swap Agreements	Interest and Fees on Loans and Leases		(8,379	)		22,603
Recognized on Hedged Item	Interest and Fees on Loans and Leases		8,372			(22,751	)
Net Cash Settlements	Interest and Fees on Loans and Leases		1,533			3,348
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments	Mortgage Banking		200			123
Forward Commitments	Mortgage Banking		(35	)		96
Interest Rate Swap Agreements	Other Noninterest Income		(18	)		44
Conversion Rate Swap Agreement	Investment Securities Gains (Losses), Net		(578	)		—
Total		$	(762	)	$	6,076

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 unaudited consolidated statements of condition related to the cumulative basis adjustment for fair value hedges as of March 31, 2025 and December 31, 2024:

Line Item in the Unaudited Consolidated Statements 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)	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024
Investment Securities, Available-for-Sale 1	$	1,005,268	$	999,594	$	5,268	$	(406	)
Loans and Leases 2		1,301,042		1,292,670		1,042		(7,330	)

1 These amounts were included in the fair value of closed portfolios of investment securities, AFS 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 March 31, 2025 and December 31, 2024, the fair value of the closed portfolios used in these hedging relationships was $1.6 billion and $1.7 billion, respectively.

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 March 31, 2025 and December 31, 2024, the amortized cost basis of the closed portfolios used in these hedging relationships was $2.9 billion and $3.0 billion, respectively.