XML 46 R29.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Derivative Financial Instruments | 12 Months Ended
--- | ---
Dec. 31, 2024
Derivative Financial Instruments |
Derivative Financial Instruments | 20. Derivative Financial Instruments At December 31, 2024 and 2023, the Company’s derivative financial instruments consist of interest rate swaps. The Company’s interest rate swaps are used for three purposes: 1) to mitigate the Company’s exposure to rising interest rates on certain fixed rate loans and securities totaling $695.6 million and $902.5 million at December 31, 2024 and December 31, 2023, respectively; 2) to facilitate risk management strategies for our loan customers with $973.9 million of swaps outstanding, which include $486.9 million with customers and $486.9 million with bank counterparties at December 31, 2024 and $721.0 million of swaps outstanding, which include $360.5 million with customers and $360.5 million with bank counterparties at December 31, 2023; and 3) to mitigate exposure to rising interest rates on certain short-term advances, brokered deposits, and municipal deposits totaling $950.8 million and $826.8 million at December 31, 2024 and December 31, 2023, respectively. ​ At December 31, 2024, and 2023 the Company has portfolio layer hedges on a closed portfolio of loans with a notional amount of $500.0 million. At December 31, 2023, the Company had portfolio layer hedges on a closed portfolio of AFS securities with a notional amount of $200.0 million. During the year ended December 31, 2024, the Company sold all securities that were hedged under the portfolio layer method and as such terminated three hedges on a closed portfolio of AFS securities with a combined notional value of $200.0 million, resulting in a net gain of $3.0 million, which was recorded in interest and dividends on securities in the Consolidated Statements of Operations. No portfolio layer hedges were terminated during the year ending December 31, 2023. ​ At December 31, 2024 and 2023, we held derivatives designated as cash flow hedges, fair value hedges and certain derivatives not designated as hedges. At December 31, 2024 and 2023, derivatives with a combined notional amount of $973.9 million and $722.0 million, respectively, were not designated as hedges. At December 31, 2024 and 2023, derivatives with a combined notional amount of $695.6 million and $902.5 million were designated as fair value hedges. At December 31, 2024 and 2023, derivatives with a combined notional amount of $950.8 million and $825.8 million, respectively, were designated as cash flow hedges. For cash flow hedges, the changes in the fair value of the derivative are reported in accumulated other comprehensive income (loss), net of tax. Amounts in accumulated other comprehensive income (loss) are reclassified into earnings in the same period during which the hedged forecasted transaction effects earnings. During the years ended December 31, 2024 and 2023, $25.3 million and $25.4 million in reduced expense, respectively was reclassified from accumulated other comprehensive income (loss) to interest expense. The estimated amount to be reclassified in next 12 months out of accumulated other comprehensive income (loss) into earnings is $10.6 million in reduced expense. A portion of the reduced expense is driven by the amortization of income from terminated cash flow hedges. This income is amortized over the remaining original term of terminated cash flow hedges. During the year ended December 31, 2024, the Company terminated seven cash flow hedges with a combined notional value of $420.8 million, resulting in a net gain of $1.7 million. There were no cashflow hedges terminated during the year ended December 31, 2023. During the years ended December 31, 2024, 2023 and 2022, income from the amortization of terminated cash flow hedges totaled $1.4 million, $4.7 million and $0.7 million, respectively, which is recorded in deposits and other interest expense in the Consolidated Statements of Operations. The following table sets forth information regarding the Company’s derivative financial instruments at the periods indicated: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Assets |  | Liabilities
​ | ​ | Notional | ​ | ​ | ​ | ​ | Notional | ​ | ​ | ​
​ |  | Amount |  | Fair Value (1) |  | Amount |  | Fair Value (1)
December 31, 2024 | ​ | (In thousands)
Cash flow hedges: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swaps (deposits) | ​ | $ | 950,750 | ​ | $ | 14,686 | ​ | $ | — | ​ | $ | —
Fair value hedges: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swaps (loans) | ​ | ​ | 560,587 | ​ | ​ | 19,812 | ​ | ​ | 135,000 | ​ | ​ | 194
Non hedge: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swaps (loans) | ​ |  | 486,929 | ​ | ​ | 20,202 | ​ | ​ | 486,929 | ​ | ​ | 20,202
Total | ​ | $ | 1,998,266 | ​ | $ | 54,700 | ​ | $ | 621,929 | ​ | $ | 20,396
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
December 31, 2023 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cash flow hedges: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swaps (borrowings and deposits) | ​ | $ | 555,000 | ​ | $ | 21,973 | ​ | $ | 270,750 | ​ | $ | 1,076
Fair value hedges: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swaps (loans and securities) | ​ | ​ | 702,540 | ​ | ​ | 21,068 | ​ | ​ | 200,000 | ​ | ​ | 1,354
Non hedge: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swaps (loans and deposits) | ​ |  | 361,486 | ​ | ​ | 25,972 | ​ | ​ | 360,486 | ​ | ​ | 25,971
Total | ​ | $ | 1,619,026 | ​ | $ | 69,013 | ​ | $ | 831,236 | ​ | $ | 28,401
(1) Derivatives in a positive position are recorded as “Other assets” and derivatives in a negative position are recorded as “Other liabilities” in the Consolidated Statements of Financial Condition. ​ ​ The following table presents information regarding the Company’s fair value hedged items for the periods indicated: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Cumulative Amount
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | of the Fair Value Hedging Adjustment
Line Item in the Consolidated Statement | ​ | Carrying Amount of the | ​ | Included in the Carrying Amount of
of Financial Condition in Which | ​ | Hedged | ​ | the Hedged
the Hedged Item Is Included | ​ | Assets/(Liabilities) | ​ | Assets/(Liabilities)
(In thousands) | ​ | December 31, 2024 | ​ | December 31, 2023 | ​ | December 31, 2024 | ​ | December 31, 2023
Loans | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Multi-family residential | ​ | $ | 76,882 | ​ | $ | 81,471 | ​ | $ | (11,015) | ​ | $ | (9,078)
Commercial real estate | ​ | ​ | 62,843 | ​ | ​ | 70,198 | ​ | ​ | (4,009) | ​ | ​ | (4,778)
Commercial business | ​ | ​ | 39,500 | ​ | ​ | 40,468 | ​ | ​ | (3,113) | ​ | ​ | (3,523)
Total | ​ | $ | 179,225 | ​ | $ | 192,137 | ​ | $ | (18,137) | ​ | $ | (17,379)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Portfolio Layer | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Loans held for Investment (1) | ​ | $ | 500,000 | ​ | $ | 500,000 | ​ | $ | (2,025) | ​ | $ | (949)
Securities available for sale (2) | ​ | ​ | — | ​ | ​ | 200,000 | ​ | ​ | — | ​ | ​ | (2,254)
Total | ​ | $ | 500,000 | ​ | $ | 700,000 | ​ | $ | (2,025) | ​ | $ | (3,203)
​ (1) Carrying amount represents the amortized cost of the portfolio layer method closed portfolio at December 31, 2024 and 2023, totaling $2.4 billion and $2.6 billion, respectively. The cumulative amount of basis adjustments at December 31, 2024 and 2023 were $2.0 million and $0.9 million, respectively. (2) Carrying amount represents the fair value of the portfolio layer method closed portfolio at December 31, 2023 totaling $283.2 million. The cumulative basis adjustment at December 31, 2023 was $2.3 million. There were no portfolio layer method hedges on securities outstanding at December 31, 2024. . ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ The following table sets forth the effect of derivative instruments on the Consolidated Statements of Operations for the periods indicated: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ |  | For the years ended
​ | ​ | Affected Line Item in the Statements | ​ | ​ | December 31,
(In thousands) |  | Where Net Income is Presented |  |  | 2024 |  | 2023 | ​ | 2022
Financial Derivatives: | ​ | ​ | ​ |  | ​ |  |  | ​ |  | ​ | ​ |
Interest rate swaps - fair value hedge (loans) | ​ | Interest and fees on loans | ​ | ​ | ​ | 13,826 | ​ | ​ | 15,909 | ​ | ​ | 96
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swaps - fair value hedge (securities) | ​ | Interest and dividends on securities | ​ | ​ | ​ | 6,736 | ​ | ​ | 2,912 | ​ | ​ | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swaps - non hedge (municipal deposit) | ​ | Interest expense - Deposits | ​ | ​ | ​ | 1 | ​ | ​ | 3 | ​ | ​ | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ |  | ​
Interest rate swaps - cash flow hedge (short-term advances) | ​ | Other interest expense | ​ | ​ | ​ | 589 | ​ | ​ | 5,312 | ​ | ​ | (2,218)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ |  | ​
Interest rate swaps - cash flow hedge (brokered deposits) | ​ | Interest expense - Deposits | ​ | ​ | ​ | 24,755 | ​ | ​ | 20,112 | ​ | ​ | 2,504
Total net income (expense) from the effects of derivative instruments | ​ | ​ | ​ | ​ | $ | 45,907 | ​ | $ | 44,248 | ​ | $ | 382
​ The Company’s interest rate swaps are subject to master netting arrangements between the Company and its three designated counterparties. The Company has not made a policy election to offset its derivative positions. The interest rate swaps with borrowers are cross collateralized with the underlying loan and, therefore, there is no posted collateral. Interest rate swap agreements with third-party counterparties contain provisions that require the Company to post collateral if the derivative exposure exceeds a threshold amount and receive collateral for agreements in a net asset position. The following tables present the effect of the master netting arrangements on the presentation of the derivative assets and liabilities in the Consolidated Statements of Condition as of the dates indicated: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | Gross Amount | ​ | Net Amount | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Gross Amounts | ​ | Offset in Statement of | ​ | Presented in Statement of | ​ | Financial | ​ | Cash | ​ | ​
(In thousands) |  | Recognized |  | Financial Condition |  | Financial Condition |  | Instruments |  | Collateral |  | Net Amount
December 31, 2024 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Assets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swaps | ​ | $ | 54,700 | ​ | $ | — | ​ | $ | 54,700 | ​ | $ | — | ​ | $ | (47,665) | ​ | $ | 7,035
Liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swaps | ​ | ​ | 20,396 | ​ | ​ | — | ​ | ​ | 20,396 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 20,396
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
December 31, 2023 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Assets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swaps | ​ | $ | 69,013 | ​ | $ | — | ​ | $ | 69,013 | ​ | $ | — | ​ | $ | (48,505) | ​ | $ | 20,508
Liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swaps | ​ | ​ | 28,401 | ​ | ​ | — | ​ | ​ | 28,401 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 28,401
​
​

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration