Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 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:

June 30, 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	$	400,000	3.09	5.05	%	3.67	%	$	7,298
				Current Rate Paid		Receive Fixed Swap Rate
Interest rate swaps on loans	$	1,050,000	2.48	5.18	%	2.66	%	$	(43,497)
				Current Rate Paid		Receive Fixed Swap Rate Cap - Floor
Interest rate collars on loans	400,000		1.78	5.18	%	3.09% - 2.19%		(9,951)
Total	$	1,850,000						$	(46,150)
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
	June 30, 2023
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	283	$	73,452	$	157,031	$	245,369	$	247,733	$	976,983	$	1,700,568	$	(117,280)
Pay fixed, receive variable	283	73,452		157,031		245,369		247,733		976,983		1,700,568		117,282
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	31	77,550		24,092		—		—		—		101,642		1,932
Buys U.S. currency, sells foreign currency	31	77,550		24,092		—		—		—		101,642		(1,876)
Risk participation agreements
Participation out	17	—		24,452		—		—		128,075		152,527		257
Participation in	7	10,646		—		—		19,166		8,133		37,945		(12)
		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
	June 30 2023			December 31 2022			June 30 2023			December 31 2022
	(Dollars in thousands)
Derivatives designated as hedges
Interest rate derivatives	$	7,298	(3)	$	—		$	53,448	(4)	$	52,244	(4)
Derivatives not designated as hedges
Customer Related Positions
Loan level derivatives	121,395		(3)	123,372		(3)	121,393		(4)	123,374		(4)
Foreign exchange contracts	2,756			4,352			2,700			4,278
Risk participation agreements	257			161			12			15
Mortgage Derivatives
Interest rate lock commitments	28			43			—			—
Forward sale loan commitments	197			30			—			—
Total derivatives not designated as hedges	124,633			127,958			124,105			127,667
Total	131,931			127,958			177,553			179,911
Netting Adjustments (5)	(62,834)			(57,784)			37,827			33,245
Net Derivatives on the Balance Sheet	69,097			70,174			139,726			146,666
Financial instruments (6)	16,965			20,019			16,965			20,019
Cash collateral pledged (received)	—			—			—			—
Net Derivative Amounts	$	52,132		$	50,155		$	122,761		$	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 June 30, 2023, approximately $323,000 and $2.8 million of accrued interest receivable is included in the fair value of interest rate and loan level derivative assets, respectively. 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 $2.1 million and $2.8 million of accrued interest payable is included in the fair value of interest rate and loan level derivative liabilities, respectively, at June 30, 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				Six Months Ended
	June 30				June 30
	2023		2022		2023		2022
	(Dollars in thousands)
Derivatives designated as hedges
(Loss) gain in OCI on derivatives (effective portion), net of tax	$	(5,448)	$	(7,649)	$	4,715	$	(25,599)
(Loss) gain reclassified from OCI into interest income or interest expense (effective portion)	$	(7,020)	$	3,515	$	(13,259)	$	8,020
Derivatives not designated as hedges
Changes in fair value of customer related positions
Other income	$	98	$	32	$	370	$	121
Other expense	(208)		(89)		(285)		(172)
Changes in fair value of mortgage derivatives
Mortgage banking income	198		(225)		152		(644)
Total	$	88	$	(282)	$	237	$	(695)