Derivative and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Schedule of Cumulative Basis Adjustment for Fair Value Hedges

As of September 30, 2020, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges:

(in thousands)	September 30, 2020
Line Item in the Consolidated Statements of Condition in which the Hedge Item is Included	Carrying Amount of the Hedged Assets		Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of the Hedged Assets
Total loans and leases, net (1)	$	2,071,316	$	71,316

(1) These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At September 30, 2020, the amortized cost basis of the closed portfolios used in these hedging relationships was $3.9 billion; the cumulative basis adjustments associated with these hedging relationships was $71.3 million; and the amount of the designated hedged items was $2.0 billion.

As of December 31, 2019, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges:

(in thousands)	December 31, 2019
Line Item in the Consolidated Statements of Condition in which the Hedge Item is Included	Carrying Amount of the Hedged Assets		Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of the Hedged Assets
Total loans and leases, net (1)	$	2,053,483	$	53,483

(1) These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At December 31, 2019, the amortized cost basis of the closed portfolios used in these hedging relationships was $4.5 billion; the cumulative basis adjustments associated with these hedging relationships was $53.5 million; and the amount of the designated hedged items was $2.0 billion.

Information Regarding Derivative Financial Instruments

The following table sets forth information regarding the Company’s derivative financial instruments at September 30, 2020 and December 31, 2019:

	Notional Amount		Other Assets		Other Liabilities
Derivatives designated as fair value hedging    instruments:
Interest rate swap	$	2,000,000	$	—	$	—
Total derivatives designated as fair value hedging    instruments	$	2,000,000	$	—	$	—

Effect of Derivative Instruments on Consolidated Statements of Income and Comprehensive Income

The following table sets forth the effect of derivative instruments on the Consolidated Statements of Income and Comprehensive Income for the periods indicated.

(in thousands)	For the Three Months Ended September 30, 2020			For the Nine Months Ended September 30, 2020			For the Three Months Ended September 30, 2019			For the Nine Months Ended September 30, 2019
Derivative – interest rate swap:
Interest income	$	(23,953	)	$	17,833		$	10,016		$	(48,338	)
Hedged item – loans:
Interest income	$	23,953		$	(17,833	)	$	(10,016	)	$	48,338

Information about Interest Rate Swaps Designated as Cash Flow Hedges

The following table summarizes information about the interest rate swaps designated as cash flow hedges at September 30, 2020 and December 31, 2019:

(dollars in thousands)	September 30, 2020			December 31, 2019
Notional amounts	$	2,250,000		$	800,000
Cash collateral posted		51,778			1,185
Weighted average pay rates		1.27	%		1.62	%
Weighted average receive rates		0.25	%		1.90	%
Weighted average maturity	2.2 years			2.5 years

Effect of Cash Flow Derivative Instruments on AOCL

The following table presents the effect of the Company’s cash flow derivative instruments on AOCL for the nine months ended September 30, 2020. The Company had no such derivative financial instruments during the nine months ended September 30, 2019:  

(in thousands)	For the Nine Months Ended September 30, 2020
Amount of loss recognized in AOCL	$	58,936
Amount of gain reclassified from AOCL to interest expense		5,973