Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2024

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, 2024
				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	2.33	5.32	%	3.67	%	$	6,695
				Current Rate Paid		Receive Fixed Swap Rate
Interest rate swaps on loans	800,000		2.40	5.33	%	2.70	%	(34,008)
				Current Rate Paid		Receive Fixed Swap Rate Cap - Floor
Interest rate collars on loans	300,000		1.47	5.43	%	3.09% - 2.01%		(4,679)
Total	$	1,500,000						$	(31,992)
December 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	$	400,000	2.58	5.34	%	3.67	%	$	1,901
	Notional Amount		Average Maturity	Current Rate Paid		Receive Fixed Swap Rate		Fair Value
Interest rate swaps on loans	850,000		2.50	5.36	%	2.72	%	(27,350)
				Current Rate Paid		Receive Fixed Swap Rate Cap - Floor
Interest rate collars on loans	350,000		1.48	5.45	%	3.09% - 2.12%		(4,714)
Total	$	1,600,000						$	(30,163)

Summary of customer related derivative positions, not designated as hedging

The following tables reflect 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, 2024
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	276	$	134,253	$	237,171	$	235,290	$	247,638	$	910,248	$	1,764,600	$	(110,626)
Pay fixed, receive variable	276	134,253		237,171		235,290		247,638		910,248		1,764,600		110,519
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	24	85,312		—		—		—		—		85,312		(463)
Buys U.S. currency, sells foreign currency	24	85,312		—		—		—		—		85,312		502
Risk participation agreements
Participation out	17	24,063		—		—		34,491		92,158		150,712		111
Participation in	12	—		—		36,275		—		15,639		51,914		(24)
		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, 2023
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	281	$	80,682	$	252,260	$	223,928	$	230,513	$	997,108	$	1,784,491	$	(88,415)
Pay fixed, receive variable	281	80,682		252,260		223,928		230,513		997,108		1,784,491		88,280
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	22	65,586		12,957		—		—		—		78,543		2,197
Buys U.S. currency, sells foreign currency	22	65,586		12,957		—		—		—		78,543		(2,160)
Risk participation agreements
Participation out	17	—		24,193		—		13,119		114,027		151,339		200
Participation in	8	—		—		13,016		18,989		15,725		47,730		(44)

(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 2024			December 31 2023			March 31 2024			December 31 2023
	(Dollars in thousands)
Derivatives designated as hedges
Interest rate derivatives	$	6,695	(3)	$	1,927		$	38,687	(4)	$	32,090	(4)
Derivatives not designated as hedges
Customer Related Positions
Loan level derivatives	111,146		(3)	99,416		(3)	111,252		(4)	99,551		(4)
Foreign exchange contracts	1,304			2,220			1,265			2,183
Risk participation agreements	111			200			24			44
Mortgage Derivatives
Interest rate lock commitments	357			168			85			—
Forward sale loan commitments	129			17			—			—
Total derivatives not designated as hedges	113,047			102,021			112,711			101,778
Total	119,742			103,948			151,398			133,868
Netting Adjustments (5)	(57,796)			(48,253)			32,323			25,360
Net Derivatives on the Balance Sheet	61,946			55,695			119,075			108,508
Financial instruments (6)	6,220			12,018			6,220			12,018
Cash collateral pledged (received)	(26,969)			(17,076)			—			—
Net Derivative Amounts	$	28,757		$	26,601		$	112,855		$	96,490

(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)Approximately $426,000 and $3.2 million of accrued interest receivable is included in the fair value of interest rate and loan level derivative assets, respectively, at March 31, 2024, in comparison to accrued interest receivable of approximately $316,000 and $3.0 million, respectively, at December 31, 2023.

(4)Approximately $1.8 million and $3.2 million of accrued interest payable is included in the fair value of interest rate and loan level derivative liabilities, respectively, at March 31, 2024, in comparison to accrued interest payable of approximately $1.9 million and $3.0 million, respectively, at December 31, 2023.

(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
	2024		2023
	(Dollars in thousands)
Derivatives designated as hedges
(Loss) gain in OCI on derivatives (effective portion), net of tax	$	(1,488)	$	10,163
Loss reclassified from OCI into interest income or interest expense (effective portion)	$	(5,856)	$	(6,239)
Derivatives not designated as hedges
Changes in fair value of customer related positions
Other income	$	35	$	272
Other expense	(72)		(77)
Changes in fair value of mortgage derivatives
Mortgage banking income	131		(46)
Total	$	94	$	149