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Derivative Financial Instruments | 12 Months Ended
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Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Derivative Financial Instruments Derivative Positions and Offsetting Derivatives Designated in Hedge Relationships. Interest rate swaps allow the Company to change the fixed or variable nature of an interest rate without the exchange of the underlying notional amount. Certain pay fixed/receive variable interest rate swaps are designated as cash flow hedges to effectively convert variable-rate debt into fixed-rate debt, whereas certain receive fixed/pay variable interest rate swaps are designated as fair value hedges to effectively convert fixed-rate debt into variable-rate debt. Certain purchased options are also designated as cash flow hedges, allowing the Company to limit the potential adverse impact of variable interest rates by establishing a cap rate or floor rate in exchange for an upfront premium. The purchased options designated as cash flow hedges represent interest rate caps where payment is received from the counterparty if interest rates rise above the cap rate, and interest rate floors where payment is received from the counterparty when interest rates fall below the floor rate. The maximum length of time over which forecasted transactions are hedged is 2.1 years. Derivatives Not Designated in Hedge Relationships. The Company also enters into derivative transactions that are not designated in hedge relationships. The Company has a back-to-back swap program, whereby it enters into an interest rate swap with a qualified customer and simultaneously enters into an equal and opposite interest-rate swap with a swap counterparty, to hedge interest rate risk. Derivative assets and derivative liabilities with the same counterparty are presented on a net basis when master netting agreements are in place. The following tables present the notional amounts and fair values, including accrued interest, of derivative positions:
| December 31, 2025
| Asset Derivatives |  | Liability Derivatives
(In thousands) | Notional Amounts | Fair Value |  | Notional Amounts | Fair Value
Designated in hedge relationships: |  |  |  |  |
Interest rate derivatives (1) | $ | 4,500,000 |  | $ | 6,258 |  |  | $ | 500,000 |  | $ | 403 |
Not designated in hedge relationships: |  |  |  |  |
Interest rate derivatives (1) | 9,989,160 |  | 223,685 |  |  | 9,989,160 |  | 222,794 |
Mortgage banking derivatives | 4,032 |  | 67 |  |  | — |  | — |
Other (2) | 412,075 |  | 191 |  |  | 1,014,621 |  | 517 |
Total not designated as hedging instruments | 10,405,267 |  | 223,943 |  |  | 11,003,781 |  | 223,311 |
Gross derivative instruments, before netting | $ | 14,905,267 |  | 230,201 |  |  | $ | 11,503,781 |  | 223,714 |
Less: Master netting agreements |  | 65,063 |  |  |  | 65,063 |
Cash collateral pledged |  | 84,056 |  |  |  | 12,053 |
Total derivative instruments, after netting |  | $ | 81,082 |  |  |  | $ | 146,598 |
| December 31, 2024
| Asset Derivatives |  | Liability Derivatives
(In thousands) | Notional Amounts | Fair Value |  | Notional Amounts | Fair Value
Designated as hedging instruments: |  |  |  |  |
Interest rate derivatives (1) | $ | 750,000 |  | $ | 719 |  |  | $ | 4,250,000 |  | $ | 13,169 |
Not designated in hedge relationships: |  |  |  |  |
Interest rate derivatives (1) | 8,693,493 |  | 300,120 |  |  | 8,728,767 |  | 298,296 |
Mortgage banking derivatives | 584 |  | 3 |  |  | — |  | — |
Other (2) | 337,370 |  | 1,300 |  |  | 833,449 |  | 96 |
Total not designated as hedging instruments | 9,031,447 |  | 301,423 |  |  | 9,562,216 |  | 298,392 |
Gross derivative instruments, before netting | $ | 9,781,447 |  | 302,142 |  |  | $ | 13,812,216 |  | 311,561 |
Less: Master netting agreements |  | 31,881 |  |  |  | 31,881 |
Cash collateral pledged |  | 251,212 |  |  |  | 80 |
Total derivative instruments, after netting |  | $ | 19,049 |  |  |  | $ | 279,600 |
(1)The notional amounts of interest rate swaps that were centrally-cleared through clearing housings was $65.3 million at December 31, 2025, and $71.1 million at December 31, 2024, for asset derivatives, and $126.5 million at December 31, 2025, and zero at December 31, 2024, for liability derivatives. Interest rate swaps that are centrally-cleared through clearing houses are “settled-to-market” and considered a single unit of account. In accordance with their rule books, clearing houses record the variation margin transferred for settled-to-market derivatives as a legal settlement of the derivative contract (i.e., the variation margin legally settles the outstanding exposure, but does not result in any other change or reset of the contractual terms of the derivative). The fair values of the Company’s settled-to-market interest rate swaps are presented net on the accompanying Consolidated Balance Sheets and approximated zero. (2)Other derivatives not designated in hedge relationships included foreign currency forward contracts related to lending arrangements, a Visa equity swap transaction, and risk participation agreements. The notional amount of risk participation agreements was $370.1 million at December 31, 2025, and $294.5 million at December 31, 2024, for asset derivatives, and $965.4 million at December 31, 2025, and $796.6 million at December 31, 2024, for liability derivatives, all of which had immaterial related fair values. The following tables represent the offsetting of derivative financial instruments that are subject to master netting agreements:
| December 31, 2025
| Gross Amounts of Recognized Assets/Liabilities |  | Gross Amounts Offset in the Statement of Financial Position |  | Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position |  | Gross Amounts Not Offset in the Statement of Financial position |  |
(In thousands) |  |  |  | Financial Instruments |  | Cash Collateral Pledged |  | Net Amount
Asset derivatives | $ | 153,854 |  |  | $ | 65,063 |  |  | $ | 88,791 |  |  | $ | — |  |  | $ | 84,056 |  |  | $ | 4,735 |
Liability derivatives | 77,167 |  |  | 65,063 |  |  | 12,104 |  |  | — |  |  | 12,053 |  |  | 51 |
| December 31, 2024
| Gross Amounts of Recognized Assets/Liabilities |  | Gross Amounts Offset in the Statement of Financial Position |  | Net Amounts of Assets/Liabilities Presented in the Statement of Financial Position |  | Gross Amounts Not Offset in the Statement of Financial position |  |
(In thousands) |  |  |  | Financial Instruments |  | Cash Collateral Pledged |  | Net Amount
Asset derivatives | $ | 283,185 |  |  | $ | 31,881 |  |  | $ | 251,304 |  |  | $ | — |  |  | $ | 251,212 |  |  | $ | 92 |
Liability derivatives | 32,218 |  |  | 31,881 |  |  | 337 |  |  | — |  |  | 80 |  |  | 257 |
Derivative Activity The following table summarizes the income statement effect of derivatives designated in hedge relationships:
| Recognized In | Years ended December 31,
(In thousands) | Net Interest Income | 2025 |  | 2024 |  | 2023
Fair value hedges: |  |  |  |  |  |
Interest rate derivatives | Deposits interest expense | $ | — |  |  | $ | (1,320) |  |  | $ | 3,194 |
Hedged item | Deposits interest expense | — |  |  | — |  |  | (15) |
Net recognized on fair value hedges (1) |  | $ | — |  |  | $ | 1,320 |  |  | $ | (3,179) |
Cash flow hedges: |  |  |  |  |  |
Interest rate derivatives | Long-term debt interest expense | $ | — |  |  | $ | 34 |  |  | $ | 310 |
Interest rate derivatives | Interest and fees on loans and leases | (10,207) |  |  | (42,005) |  |  | (14,628) |
Net recognized on cash flow hedges (2) |  | $ | (10,207) |  |  | $ | (42,039) |  |  | $ | (14,938) |
(1)The Company de-designated its fair value hedging relationship on $400.0 million of deposits, which pertained to a portion of Ametros’ member deposits, in 2023. The $1.3 million basis adjustment included in the carrying amount of deposits at December 31, 2023, was amortized into interest expense in January 2024 upon the acquisition of Ametros. (2)Additional information regarding the amounts recognized in net income related to cash flow hedge activities can be found within Note 12: Accumulated Other Comprehensive (Loss), Net of Tax. The following table summarizes the income statement effect of derivatives not designated in hedge relationships:
| Recognized In | Years ended December 31,
(In thousands) | Non-interest Income | 2025 |  | 2024 |  | 2023
Interest rate derivatives | Other income | $ | 8,664 |  |  | $ | (1,480) |  |  | $ | (6,159) |
Mortgage banking derivatives | Other income | 63 |  |  | (34) |  |  | 5 |
Other | Other income | (5,526) |  |  | 4,246 |  |  | (2,476) |
Total not designated in hedge relationships | $ | 3,201 |  |  | $ | 2,732 |  |  | $ | (8,630) |
Derivative Exposure. At December 31, 2025, the Company had $84.5 million of cash collateral received and $13.8 million of cash collateral posted included in Cash and due from banks on the accompanying Consolidated Balance Sheets. In addition, the Company had $3.5 million in initial margin posted at clearing houses. The Company regularly evaluates the credit risk of its derivative customers, taking into account the likelihood of default, net exposures, and remaining contractual life, among other related factors. Credit risk exposure is mitigated as transactions with customers are generally secured by the same collateral of the underlying transactions. Current net credit exposure relating to derivatives with the Bank’s customers was $76.3 million at December 31, 2025. In addition, the Company monitors potential future exposure, representing its best estimate of exposure to remaining contractual maturity. The potential future exposure relating to derivatives with the Bank’s customers totaled $126.9 million at December 31, 2025. The Company has incorporated a credit valuation adjustment to reflect non-performance risk in the fair value measurement of its derivatives, which totaled $4.2 million at December 31, 2025, and $7.6 million at December 31, 2024. Various factors impact changes in the credit valuation adjustment over time, such as changes in the credit spreads of the contracted parties, and changes in market rates and volatilities, which affect the total expected exposure of the derivative instruments.

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