Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2025

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 information about 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, 2025
				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	1.08	4.31	%	3.67	%	$	614
				Current Rate Paid		Receive Fixed Swap Rate
Interest rate swaps on loans	650,000		1.50	4.31	%	2.75	%	(11,967)
				Current Rate Paid		Receive Fixed Swap Rate Cap - Floor
Interest rate collars on loans	150,000		1.45	4.42	%	3.94% - 2.33%		(566)
Total	$	1,200,000						$	(11,919)
December 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	1.58	4.56	%	3.67	%	$	2,724
				Current Rate Paid		Receive Fixed Swap Rate
Interest rate swaps on loans	750,000		1.77	4.57	%	2.78	%	(21,205)
				Current Rate Paid		Receive Fixed Swap Rate Cap - Floor
Interest rate collars on loans	150,000		1.94	4.70	%	3.94% - 2.33%		(1,529)
Total	$	1,300,000						$	(20,010)

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, 2025
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	265	$	229,274	$	215,479	$	256,675	$	206,320	$	801,128	$	1,708,876	$	(50,387)
Pay fixed, receive variable	265	229,274		215,479		256,675		206,320		801,128		1,708,876		50,345
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	32	86,133		10,120		—		—		—		96,253		7,365
Buys U.S. currency, sells foreign currency	32	86,133		10,120		—		—		—		96,253		(7,316)
Risk participation agreements
Participation out	17	—		—		48,124		12,626		82,032		142,782		89
Participation in	11	—		22,609		—		15,064		—		37,673		(13)
		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, 2024
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	276	$	261,222	$	225,043	$	252,911	$	208,762	$	869,095	$	1,817,033	$	(92,913)
Pay fixed, receive variable	276	261,222		225,043		252,911		208,762		869,095		1,817,033		92,875
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	34	112,156		12,120		—		—		—		124,276		(5,363)
Buys U.S. currency, sells foreign currency	34	112,156		12,120		—		—		—		124,276		5,424
Risk participation agreements
Participation out	18	23,672		—		27,140		21,256		91,053		163,121		56
Participation in	12	—		13,016		22,904		15,334		—		51,254		(12)

(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 2025			December 31 2024			June 30 2025			December 31 2024
	(Dollars in thousands)
Derivatives designated as hedges
Interest rate derivatives	$	660	(3)	$	2,724	(3)	$	12,579	(4)	$	22,734	(4)
Derivatives not designated as hedges
Customer Related Positions
Loan level derivatives	65,921		(3)	95,606		(3)	65,963		(4)	95,644		(4)
Foreign exchange contracts	7,365			5,424			7,316			5,363
Risk participation agreements	89			56			13			12
Mortgage Derivatives
Interest rate lock commitments	613			77			—			2
Forward sale loan commitments	5			13			—			—
Forward sale hedge commitments	—			58			255			—
Total derivatives not designated as hedges	73,993			101,234			73,547			101,021
Total	74,653			103,958			86,126			123,755
Netting Adjustments (5)	(30,671)			(46,664)			11,934			21,078
Net Derivatives on the Balance Sheet	43,982			57,294			74,192			102,677
Financial instruments (6)	6,116			2,894			6,116			2,894
Cash collateral pledged (received)	(14,077)			(33,283)			2,283			—
Net Derivative Amounts	$	23,789		$	21,117		$	65,793		$	99,783

(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 $145,000 and $1.4 million of accrued interest receivable is included in the fair value of interest rate and loan level derivative assets, respectively, at June 30, 2025, in comparison to accrued interest receivable of approximately $195,000 and $2.2 million, respectively, at December 31, 2024.

(4)Approximately $649,000 and $1.4 million of accrued interest payable is included in the fair value of interest rate and loan level derivative liabilities, respectively, at June 30, 2025, in comparison to accrued interest payable of approximately $825,000 and $2.2 million, respectively, at December 31, 2024.

(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 other comprehensive income (“OCI”) and current earnings for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30				June 30
	2025		2024		2025		2024
	(Dollars in thousands)
Derivatives designated as hedges
Gain in OCI on derivatives (effective portion), net of tax	$	2,329	$	1,735	$	5,785	$	247
Loss reclassified from OCI into interest income or interest expense (effective portion)	$	(2,509)	$	(5,030)	$	(5,179)	$	(10,886)
Derivatives not designated as hedges
Changes in fair value of customer related positions
Other income	$	16	$	31	$	52	$	66
Other expense	(29)		(33)		(46)		(105)
Changes in fair value of mortgage derivatives
Mortgage banking income	92		237		217		368
Total	$	79	$	235	$	223	$	329