XML 46 R35.htm IDEA: XBRL DOCUMENT
v3.23.3

Derivative Financial Instruments (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Impact of Derivatives on the Consolidated Balance Sheet | The following tables summarize the fair values and notional amounts of all derivative instruments at September 30, 2023 and December 31, 2022, and their impact on earnings and other comprehensive income for the nine months ended September 30, 2023 and September 30, 2022. Please refer to Notes to Consolidated Financial Statements, Note 13, “Derivative Financial Instruments” in our 2022 Form 10-K for a full discussion of cash flow hedges, fair value hedges, and trading activities.
Impact of Derivatives on the Consolidated Balance Sheets
|  |  | Cash Flow Hedges |  | Fair Value Hedges |  | Trading |  | Total
|  |  | September 30, |  | December 31, |  | September 30, |  | December 31, |  | September 30, |  | December 31, |  | September 30, |  | December 31,
(Dollars in thousands) |  | 2023 |  | 2022 |  | 2023 |  | 2022 |  | 2023 |  | 2022 |  | 2023 |  | 2022
Fair Values(1) | Hedged Risk Exposure |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative Assets:(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | Interest rate |  | $ | — |  |  | $ | 972 |  |  | $ | 17 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 17 |  |  | $ | 972 |
Derivative Liabilities:(2) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | Interest rate |  | (268) |  |  | — |  |  | — |  |  | (567) |  |  | — |  |  | — |  |  | (268) |  |  | (567) |
Total net derivatives |  | $ | (268) |  |  | $ | 972 |  |  | $ | 17 |  |  | $ | (567) |  |  | $ | — |  |  | $ | — |  |  | $ | (251) |  |  | $ | 405 |
(1) Fair values reported include variation margin as legal settlement of the derivative contract. Assets and liabilities are presented without consideration of master netting agreements. Derivatives are carried on the balance sheet based on net position by counterparty under master netting agreements and classified in other assets or other liabilities depending on whether in a net positive or negative position. (2) The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification:
|  | Other Assets |  | Other Liabilities
|  | September 30, |  | December 31, |  | September 30, |  | December 31,
(Dollars in thousands) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Gross position(1) |  | $ | 17 |  |  | $ | 972 |  |  | $ | (268) |  |  | $ | (567) |
Impact of master netting agreement |  | (17) |  |  | (567) |  |  | 17 |  |  | 567 |
Derivative values with impact of master netting agreements (as carried on balance sheet) |  | — |  |  | 405 |  |  | (251) |  |  | — |
Cash collateral pledged(2) |  | 11,087 |  |  | 11,162 |  |  | — |  |  | — |
Net position |  | $ | 11,087 |  |  | $ | 11,567 |  |  | $ | (251) |  |  | $ | — |
(1)Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. (2)Cash collateral pledged excludes amounts that represent legal settlement of the derivative contracts.
Schedule of Offsetting Assets | The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification:
|  | Other Assets |  | Other Liabilities
|  | September 30, |  | December 31, |  | September 30, |  | December 31,
(Dollars in thousands) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Gross position(1) |  | $ | 17 |  |  | $ | 972 |  |  | $ | (268) |  |  | $ | (567) |
Impact of master netting agreement |  | (17) |  |  | (567) |  |  | 17 |  |  | 567 |
Derivative values with impact of master netting agreements (as carried on balance sheet) |  | — |  |  | 405 |  |  | (251) |  |  | — |
Cash collateral pledged(2) |  | 11,087 |  |  | 11,162 |  |  | — |  |  | — |
Net position |  | $ | 11,087 |  |  | $ | 11,567 |  |  | $ | (251) |  |  | $ | — |
(1)Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. (2)Cash collateral pledged excludes amounts that represent legal settlement of the derivative contracts.
Schedule of Offsetting Liabilities | The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification:
|  | Other Assets |  | Other Liabilities
|  | September 30, |  | December 31, |  | September 30, |  | December 31,
(Dollars in thousands) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Gross position(1) |  | $ | 17 |  |  | $ | 972 |  |  | $ | (268) |  |  | $ | (567) |
Impact of master netting agreement |  | (17) |  |  | (567) |  |  | 17 |  |  | 567 |
Derivative values with impact of master netting agreements (as carried on balance sheet) |  | — |  |  | 405 |  |  | (251) |  |  | — |
Cash collateral pledged(2) |  | 11,087 |  |  | 11,162 |  |  | — |  |  | — |
Net position |  | $ | 11,087 |  |  | $ | 11,567 |  |  | $ | (251) |  |  | $ | — |
(1)Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. (2)Cash collateral pledged excludes amounts that represent legal settlement of the derivative contracts.
Schedule of Notional Amounts of Outstanding Derivative Positions |
Notional Values |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Cash Flow |  | Fair Value |  | Trading |  | Total
(Dollars in thousands) |  | September 30, |  | December 31, |  | September 30, |  | December 31, |  | September 30, |  | December 31, |  | September 30, |  | December 31,
| 2023 |  | 2022 |  | 2023 |  | 2022 |  | 2023 |  | 2022 |  | 2023 |  | 2022
Interest rate swaps |  | $ | 1,229,011 |  |  | $ | 1,314,660 |  |  | $ | 702,309 |  |  | $ | 1,528,186 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,931,320 |  |  | $ | 2,842,846 |
Net total notional |  | $ | 1,229,011 |  |  | $ | 1,314,660 |  |  | $ | 702,309 |  |  | $ | 1,528,186 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,931,320 |  |  | $ | 2,842,846 |
Schedule of Cumulative Basis Adjustments for Fair Value Hedges | As of September 30, 2023 and December 31, 2022, the following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges:
(Dollars in thousands) |  | Carrying Amount of the Hedged Assets/(Liabilities) |  | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)
Line Item in the Balance Sheet in Which the Hedged Item is Included: |  | September 30, |  | December 31, |  | September 30, |  | December 31,
| 2023 |  | 2022 |  | 2023 |  | 2022
Deposits |  | $ | (681,292) |  |  | $ | (1,494,087) |  |  | $ | 20,755 |  |  | $ | 31,259 |
Schedule of Impact of Derivatives on the Consolidated Statements of Income |
Impact of Derivatives on the Consolidated Statements of Income
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(Dollars in thousands) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Fair Value Hedges |  |  |  |  |  |  |  |
Interest rate swaps: |  |  |  |  |  |  |  |
Interest recognized on derivatives |  | $ | (6,701) |  |  | $ | (1,783) |  |  | $ | (19,086) |  |  | $ | 24,418 |
Hedged items recorded in interest expense |  | (4,346) |  |  | 14,143 |  |  | (10,504) |  |  | 86,899 |
Derivatives recorded in interest expense |  | 4,265 |  |  | (14,425) |  |  | 10,596 |  |  | (86,896) |
Total |  | $ | (6,782) |  |  | $ | (2,065) |  |  | $ | (18,994) |  |  | $ | 24,421 |
Cash Flow Hedges |  |  |  |  |  |  |  |
Interest rate swaps: |  |  |  |  |  |  |  |
Amount of gain (loss) reclassified from accumulated other comprehensive income into interest expense |  | $ | 12,813 |  |  | $ | 2,771 |  |  | $ | 34,917 |  |  | $ | (4,033) |
Total |  | $ | 12,813 |  |  | $ | 2,771 |  |  | $ | 34,917 |  |  | $ | (4,033) |
Trading |  |  |  |  |  |  |  |
Interest rate swaps: |  |  |  |  |  |  |  |
Change in fair value of future interest payments recorded in earnings |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (248) |
Total |  | — |  |  | — |  |  | — |  |  | (248) |
Total |  | $ | 6,031 |  |  | $ | 706 |  |  | $ | 15,923 |  |  | $ | 20,140 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) |
Impact of Derivatives on the Statements of Changes in Stockholders’ Equity |  |  |  |  |  |  |  |
|  | Three Months Ended |  | Nine Months Ended |  |
|  | September 30, |  | September 30, |  |
(Dollars in thousands) |  | 2023 |  | 2022 |  | 2023 |  | 2022 |  |  |  |
Amount of gain (loss) recognized in other comprehensive income (loss) |  | $ | 7,046 |  |  | $ | 32,594 |  |  | $ | 21,726 |  |  | $ | 94,215 |  |  |  |  |
Less: amount of gain (loss) reclassified in interest expense |  | 12,813 |  |  | 2,771 |  |  | 34,917 |  |  | (4,033) |  |  |  |  |
Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit |  | $ | (5,767) |  |  | $ | 29,823 |  |  | $ | (13,191) |  |  | $ | 98,248 |  |  |  |  |

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 Tabular disclosure of derivative and other financial assets that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483466/210-20-50-4 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483466/210-20-50-3 + Details
Name: | us-gaap_OffsettingAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial liabilities that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483466/210-20-50-4 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483466/210-20-50-3 + Details
Name: | us-gaap_OffsettingLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of accumulated other comprehensive income (loss). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 220 -SubTopic 10 -Section 45 -Paragraph 14A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482790/220-10-45-14A Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 830 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481674/830-30-50-1 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 830 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 20 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481694/830-30-45-20 + Details
Name: | us-gaap_ScheduleOfAccumulatedOtherComprehensiveIncomeLossTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4E -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4E Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4A + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4B + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for fair value hedging instruments of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C + Details
Name: | us-gaap_ScheduleOfFairValueHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the notional amounts of outstanding derivative positions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-1A + Details
Name: | us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration