Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 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:

June 30, 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	2.08	5.33	%	3.67	%	$	6,920
				Current Rate Paid		Receive Fixed Swap Rate
Interest rate swaps on loans	800,000		2.16	5.34	%	2.70	%	(32,298)
				Current Rate Paid		Receive Fixed Swap Rate Cap - Floor
Interest rate collars on loans	200,000		1.93	5.45	%	3.40% - 2.09%		(3,812)
Total	$	1,400,000						$	(29,190)
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
				Current Rate Paid		Receive Fixed Swap Rate
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
	June 30, 2024
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	275	$	141,753	$	274,409	$	242,867	$	192,030	$	909,490	$	1,760,549	$	(109,344)
Pay fixed, receive variable	275	141,753		274,409		242,867		192,030		909,490		1,760,549		109,251
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	21	83,970		—		—		—		—		83,970		(1,519)
Buys U.S. currency, sells foreign currency	21	83,970		—		—		—		—		83,970		1,559
Risk participation agreements
Participation out	17	23,932		—		—		34,372		91,790		150,094		88
Participation in	12	—		13,016		23,141		—		15,554		51,711		(18)
		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
	June 30 2024			December 31 2023			June 30 2024			December 31 2023
	(Dollars in thousands)
Derivatives designated as hedges
Interest rate derivatives	$	6,920	(3)	$	1,927	(3)	$	36,110	(4)	$	32,090	(4)
Derivatives not designated as hedges
Customer Related Positions
Loan level derivatives	110,610		(3)	99,416		(3)	110,703		(4)	99,551		(4)
Foreign exchange contracts	1,561			2,220			1,521			2,183
Risk participation agreements	88			200			18			44
Mortgage Derivatives
Interest rate lock commitments	417			168			14			—
Forward sale loan commitments	39			17			—			—
Forward sale hedge commitments	111			—			—			—
Total derivatives not designated as hedges	112,826			102,021			112,256			101,778
Total	119,746			103,948			148,366			133,868
Netting Adjustments (5)	(56,755)			(48,253)			31,341			25,360
Net Derivatives on the Balance Sheet	62,991			55,695			117,025			108,508
Financial instruments (6)	5,280			12,018			5,280			12,018
Cash collateral pledged (received)	(28,463)			(17,076)			—			—
Net Derivative Amounts	$	29,248		$	26,601		$	111,745		$	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 $372,000 and $2.8 million of accrued interest receivable is included in the fair value of interest rate and loan level derivative assets, respectively, at June 30, 2024, in comparison to accrued interest receivable of approximately $316,000 and $3.0 million, respectively, at December 31, 2023.

(4)Approximately $1.3 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, 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				Six Months Ended
	June 30				June 30
	2024		2023		2024		2023
	(Dollars in thousands)
Derivatives designated as hedges
Gain (loss) in OCI on derivatives (effective portion), net of tax	$	1,735	$	(5,448)	$	247	$	4,715
Loss reclassified from OCI into interest income or interest expense (effective portion)	$	(5,030)	$	(7,020)	$	(10,886)	$	(13,259)
Derivatives not designated as hedges
Changes in fair value of customer related positions
Other income	$	31	$	98	$	66	$	370
Other expense	(33)		(208)		(105)		(285)
Changes in fair value of mortgage derivatives
Mortgage banking income	237		198		368		152
Total	$	235	$	88	$	329	$	237