Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes

The following tables reflect the Company's derivative positions at the dates indicated below for interest rate swaps which qualify as cash flow hedges for accounting purposes:

March 31, 2023
				Weighted Average Rate
	Notional Amount		Average Maturity	Current Rate Received		Pay Fixed Swap Rate		Fair Value
	(in thousands)		(in years)					(in thousands)
Interest rate swaps on borrowings	$	300,000	3.48	4.87	%	3.57	%	$	(202)
				Current Rate Paid		Receive Fixed Swap Rate
Interest rate swaps on loans	$	1,050,000	2.73	4.68	%	2.66	%	$	(30,615)
				Current Rate Paid		Receive Fixed Swap Rate Cap - Floor
Interest rate collars on loans	400,000		2.03	4.67	%	3.09% - 2.19%		(7,619)
Total	$	1,750,000						$	(38,436)
December 31, 2022
				Weighted Average Rate
	Notional Amount		Average Maturity	Current Rate Paid		Receive Fixed Swap Rate		Fair Value
	(in thousands)		(in years)					(in thousands)
Interest rate swaps on loans	1,050,000		2.97	4.24	%	2.66	%	(42,005)
				Current Rate Paid		Receive Fixed Swap Rate Cap - Floor
Interest rate collars on loans	400,000		2.27	4.22	%	3.09% - 2.19%		(10,239)
Total	$	1,450,000						$	(52,244)

Summary of customer related derivative positions, not designated as hedging

The following table reflects the Company’s customer related derivative positions at the dates indicated below for those derivatives not designated as hedging:

		Notional Amount Maturing
	Number of  Positions  (1)	Less than 1 year		Less than 2 years		Less than 3 years		Less than 4 years		Thereafter		Total		Fair Value
	March 31, 2023
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	276	$	58,387	$	143,725	$	229,318	$	210,340	$	1,009,526	$	1,651,296	$	(88,936)
Pay fixed, receive variable	276	58,387		143,725		229,318		210,340		1,009,526		1,651,296		88,935
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	40	105,637		8,830		—		—		—		114,467		1,558
Buys U.S. currency, sells foreign currency	40	105,637		8,830		—		—		—		114,467		(1,489)
Risk participation agreements
Participation out	18	2,585		24,538		—		—		128,132		155,255		365
Participation in	6	27,142		—		—		17,558		8,168		52,868		(20)
		Notional Amount Maturing
	Number of  Positions  (1)	Less than 1 year		Less than 2 years		Less than 3 years		Less than 4 years		Thereafter		Total		Fair Value
	December 31, 2022
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	283	$	80,531	$	96,613	$	256,924	$	193,096	$	1,016,312	$	1,643,476	$	(118,930)
Pay fixed, receive variable	283	80,531		96,613		256,924		193,096		1,016,312		1,643,476		118,928
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	49	124,982		13,363		—		—		—		138,345		306
Buys U.S. currency, sells foreign currency	49	124,982		13,363		—		—		—		138,345		(232)
Risk participation agreements
Participation out	13	2,595		—		24,538		—		95,514		122,647		161
Participation in	6	27,365		—		—		—		25,849		53,214		(15)

(1)The Company may enter into one dealer swap agreement which offsets multiple commercial borrower swap agreements.

Fair value of derivative financial instruments as well as their classification on the balance sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheet and the potential effect of netting arrangements on its financial position, at the dates indicated:

	Asset Derivatives (1)						Liability Derivatives (2)
	Fair Value at			Fair Value at			Fair Value at			Fair Value at
	March 31 2023			December 31 2022			March 31 2023			December 31 2022
	(Dollars in thousands)
Derivatives designated as hedges
Interest rate derivatives	$	416	(3)	$	—		$	38,852	(4)	$	52,244	(4)
Derivatives not designated as hedges
Customer Related Positions
Loan level derivatives	100,821		(3)	123,372		(3)	100,822		(4)	123,374		(4)
Foreign exchange contracts	3,259			4,352			3,190			4,278
Risk participation agreements	365			161			20			15
Mortgage Derivatives
Interest rate lock commitments	32			43			—			—
Forward sale loan commitments	—			30			5			—
Total derivatives not designated as hedges	104,477			127,958			104,037			127,667
Total	104,893			127,958			142,889			179,911
Netting Adjustments (5)	(48,117)			(57,784)			24,686			33,245
Net Derivatives on the Balance Sheet	56,776			70,174			118,203			146,666
Financial instruments (6)	19,358			20,019			19,358			20,019
Cash collateral pledged (received)	—			—			—			—
Net Derivative Amounts	$	37,418		$	50,155		$	98,845		$	126,647

(1)All asset derivatives are reflected in other assets on the balance sheet.

(2)All liability derivatives are reflected in other liabilities on the balance sheet.

(3)As of March 31, 2023, approximately $30,000 of accrued interest payable is included in the fair value of interest rate derivative assets and approximately $2.5 million of accrued interest receivable is included in the fair value of loan level derivative assets. Accrued interest receivable of approximately $2.2 million is included in the fair value of loan level derivative assets at December 31, 2022.

(4)Approximately $1.6 million and $2.5 million of accrued interest payable is included in the fair value of interest rate and loan level derivative liabilities, respectively, at March 31, 2023, in comparison to accrued interest payable of approximately $1.3 million and $2.2 million, respectively, at December 31, 2022.

(5)Netting adjustments represent the amounts recorded to convert derivative assets and liabilities cleared through CME from a gross basis to a net basis, inclusive of the variation margin payments, in accordance with applicable accounting guidance.

(6)Reflects offsetting derivative positions with the same counterparty that are not netted on the balance sheet.

Effect of derivative financial instruments included in OCI and current earnings

The table below presents the effect of the Company’s derivative financial instruments included in OCI and current earnings for the periods indicated:

	Three Months Ended
	March 31
	2023		2022
	(Dollars in thousands)
Derivatives designated as hedges
Gain (loss) in OCI on derivatives (effective portion), net of tax	$	10,163	$	(17,950)
(Loss) gain reclassified from OCI into interest income or interest expense (effective portion)	$	(6,239)	$	4,505
Derivatives not designated as hedges
Changes in fair value of customer related positions
Other income	$	272	$	89
Other expense	(77)		(83)
Changes in fair value of mortgage derivatives
Mortgage banking income	(46)		(419)
Total	$	149	$	(413)