Derivatives and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value of Derivative Financial Instruments on Consolidated Balance Sheet

The table below presents the fair value of derivative financial instruments, which are included in other assets and other liabilities on the consolidated balance sheet, as of the dates indicated:

	March 31, 2024						December 31, 2023
	Notional Amount		Fair Value				Notional Amount		Fair Value
(in thousands)			Derivative Asset		Derivative Liability				Derivative Asset		Derivative Liability
Derivatives designated as hedging instruments:
Cash flow hedge of subordinated debt	$	100,000	$	13,840	$	—	$	100,000	$	13,168	$	—
Cash flow hedges of trust preferred securities	20,000		—		—		20,000		—		—
Fair value hedges of AFS debt securities	649,520		—		—		655,511		—		—
Fair value hedges of loans	1,650,000		—		—		150,000		—		—
Total	2,419,520		13,840		—		925,511		13,168		—
Derivatives not designated as hedging instruments:
Customer derivative positions	1,173,714		1,358		77,635		1,177,275		3,461		68,384
Dealer offsets to customer derivative positions	1,173,714		25,588		1,337		1,197,364		23,061		4,597
Risk participations	89,811		1		6		90,597		1		8
Mortgage banking - loan commitments	67,260		1,630		—		48,452		1,089		—
Mortgage banking - forward sales commitment	105,251		89		180		81,671		20		658
Bifurcated embedded derivatives	51,935		10,696		—		51,935		9,552		—
Dealer offsets to bifurcated embedded derivatives	51,935		—		12,255		51,935		—		11,164
Total	2,713,620		39,362		91,413		2,699,229		37,184		84,811
Total derivatives	$	5,133,140	$	53,202	$	91,413	$	3,624,740	$	50,352	$	84,811
Total gross derivative instruments			$	53,202	$	91,413			$	50,352	$	84,811
Less: Amounts subject to master netting agreements			(1,444)		(1,444)				(4,683)		(4,683)
Less: Cash collateral received/pledged			(39,841)		(12,593)				(33,921)		(11,330)
Net amount			$	11,917	$	77,376			$	11,748	$	68,798

Schedule of Effect of Derivatives in Hedging Relationships on the Consolidated Statement of Income

The table below presents the effect of derivatives in hedging relationships, all of which are interest rate contracts, on net interest income for the periods indicated. 

	Affected Income Statement Line Item Increase/(Decrease) to Earnings	Three Months Ended March 31,
(in thousands)		2024		2023
Fair value hedges:
AFS securities:
Amounts related to interest settlements on derivatives		$	2,856	$	—
Gain recognized on derivative		9,462		—
Loss recognized on hedged items		(9,798)		—
Net income recognized on AFS securities fair value hedges	Interest revenue- investment securities	$	2,520	$	—
Loans:
Amounts related to interest settlements on derivatives		1,298		—
Gain recognized on derivatives		2,158		—
Loss recognized on hedged items		(2,295)		—
Net income recognized on loan fair value hedges	Interest revenue - loans, including fees	1,161		—
Cash flow hedges:
Long-term debt (1)	Interest expense- long term debt	$	1,440	$	822

 (1) Includes premium amortization expense excluded from the assessment of hedge effectiveness of $118,000 and $116,000 for the three months ended March 31, 2024 and 2023, respectively.

Schedule of Fair Value Hedging Instruments, Carrying Value and Basis Adjustments

The table below presents the carrying amount of hedged items and cumulative fair value hedging basis adjustments for the periods presented. All fair value hedges of AFS debt securities and loans at March 31, 2024 and December 31, 2023 were designated under the portfolio layer method.

(in thousands)	March 31, 2024						December 31, 2023
Balance Sheet Location	Carrying Amount		Hedge Accounting Basis Adjustment		Hedged Portfolio Layer		Carrying Amount		Hedge Accounting Basis Adjustment		Hedged Portfolio Layer
Debt securities AFS (1)	$	783,148	$	(14,471)	$	649,520	$	789,908	$	(4,673)	$	655,511
Loans and leases held for investment	5,408,116		(402)		1,650,000		1,017,379		1,893		150,000

(1) Carrying amount for AFS debt securities reflects amortized cost, which excludes the hedge accounting basis adjustment.

Schedule of Gains and Losses Recognized in Income on Derivatives Not Designated as Hedging Instruments

The table below presents the gains and losses recognized in income on derivatives not designated as hedging instruments for the periods indicated. 

	Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives
			Three Months Ended March 31,
(in thousands)			2024		2023
Customer derivatives and dealer offsets	Other noninterest income		$	(245)	$	367
Bifurcated embedded derivatives and dealer offsets	Other noninterest income		(192)		(533)
Mortgage banking derivatives	Mortgage loan revenue		901		1,227
Risk participations	Other noninterest income		2		(12)
			$	466	$	1,049