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Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Notional Amounts and Fair Values of Derivative Financial Instruments

The following table presents a summary of the notional amounts and fair values of derivative financial instruments:

			March 31, 2025												December 31, 2024
			Notional Amount						Asset (Liability) Fair Value						Notional Amount						Asset (Liability) Fair Value
			(dollars in thousands)
Interest Rate Locks with Customers
Positive fair values			$	212,169					$	852					$	171,933					$	389
Negative fair values			668						(2)						3,888						(58)
Forward Commitments
Positive fair values			—						—						51,250						363
Negative fair values			44,185						(471)						—						—
Interest Rate Derivatives with Customers(1)
Positive fair values			1,275,789						24,899						767,905						8,480
Negative fair values			3,454,753						(183,590)						3,976,294						(239,058)
Interest Rate Derivatives with Dealer Counterparties
Positive fair values			3,454,753						110,551						3,976,294						150,480
Negative fair values			1,275,789						(25,265)						767,905						(10,734)
Interest Rate Derivatives used in Cash Flow Hedges
Positive fair values			2,250,000						4,011						2,500,000						227
Negative fair values			1,150,000						(537)						1,400,000						(2,971)
Foreign Exchange Contracts with Customers
Positive fair values			14,517						245						28,327						1,619
Negative fair values			12,352						(393)						693						(27)
Foreign Exchange Contracts with Correspondent Banks
Positive fair values			17,903						528						4,059						63
Negative fair values			12,100						(182)						32,406						(1,569)

Summary of Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income

The following table presents the effect of cash flow hedge accounting on AOCI:

			Amount of Gain (Loss) Recognized in OCI on Derivative						Amount of Gain (Loss) Recognized in OCI Included Component						Amount of Gain (Loss) Recognized in OCI Excluded Component						Location of Gain (Loss) Recognized from AOCI into Income						Amount of Gain (Loss) Reclassified from AOCI into Income						Amount of Gain (Loss) Reclassified from AOCI into Income Included Component						Amount of Gain (Loss) Reclassified from AOCI into Income Excluded Component
			(dollars in thousands)
Three months ended March 31, 2025
Interest Rate Products			$	3,541					$	3,541					$	—					Interest Income						$	(4,491)					$	(4,491)					$	—
Interest Rate Products			(1,260)						(1,260)						—						Interest Expense						(53)						(53)						—
Total			$	2,281					$	2,281					$	—											$	(4,544)					$	(4,544)					$	—
Three months ended March 31, 2024
Interest Rate Products			$	(5,659)					$	(5,659)					—						Interest Income						$	(7,032)					$	(7,032)					—
Interest Rate Products			11,215						11,215						—						Interest Expense						2,020						2,020						—
Total			$	5,556					$	5,556					—												$	(5,012)					$	(5,012)					—

The following table presents the effect of fair value and cash flow hedge accounting on the income statement:

			Consolidated Statements of Income Classification
			2025												2024
			Interest Income						Interest Expense						Interest Income						Interest Expense
			(dollars in thousands)
Three months ended March 31
Total amounts of income line items presented in the Consolidated Statements of Income in which the effects of fair value or cash flow hedges are recorded			$	(4,491)					$	(53)					$	(7,032)					$	2,020
The effects of fair value and cash flow hedging:
Amount of (loss) gain reclassified from AOCI into income			(4,491)						(53)						(7,032)						2,020
Interest rate derivatives:
Amount of (loss) gain reclassified from AOCI into income as a result that a forecasted transaction is no longer probable of occurring			—						—						—						—
Amount of (loss) gain reclassified from AOCI into income - included component			(4,491)						(53)						(7,032)						2,020
Amount of (loss) gain reclassified from AOCI into income - excluded component			—						—						—						—

During the next twelve months, the Corporation estimates that an additional $16.3 million will be reclassified as a decrease to net interest income.

Summary of Fair Value Gains and Losses on Derivative Financial Instruments

The following table presents the fair value gains (losses) on derivative financial instruments:

			Consolidated Statements of Income Classification						Three months ended March 31
									2025						2024
									(dollars in thousands)
Mortgage banking derivatives(1)			Mortgage banking income						$	802					$	1,167
Interest rate derivatives			Other income						149						151
Foreign exchange contracts			Other income						170						39
Net fair value gains (losses) on derivative financial instruments									$	1,121					$	1,357

(1) Includes interest rate locks with customers and forward commitments.

Summary of Corporation's Mortgage Loans Held for Sale

The following table presents mortgage loans held for sale and the impact of the fair value election on the Consolidated Financial Statements:

			March 31, 2025						December 31, 2024
			(dollars in thousands)
Amortized cost(1)			$	15,637					$	25,316
Fair value			15,965						25,618

(1) Cost basis of mortgage loans held for sale represents the unpaid principal balance.

Summary of Offsetting Derivative Assets

The following table presents the Corporation's financial instruments that are eligible for offset, and the effects of offsetting, on the Consolidated Balance Sheets:

			Gross Amounts						Gross Amounts Not Offset
			Recognized						on the Consolidated
			on the						Balance Sheets
			Consolidated						Financial						Cash						Net
			Balance Sheets						Instruments(1)						Collateral(2)						Amount
			(dollars in thousands)
March 31, 2025
Interest rate derivative assets			$	139,461					$	(16,003)					$	—					$	123,458
Foreign exchange derivative assets with correspondent banks			528						(528)						—						—
Total			$	139,989					$	(16,531)					$	—					$	123,458
Interest rate derivative liabilities			$	209,392					$	(19,477)					$	(72,464)					$	117,451
Foreign exchange derivative liabilities with correspondent banks			182						(528)						—						(346)
Total			$	209,574					$	(20,005)					$	(72,464)					$	117,105
December 31, 2024
Interest rate derivative assets			$	159,187					$	(12,739)					$	—					$	146,448
Foreign exchange derivative assets with correspondent banks			63						(63)						—						—
Total			$	159,250					$	(12,802)					$	—					$	146,448
Interest rate derivative liabilities			$	252,763					$	(9,995)					$	(94,339)					$	148,429
Foreign exchange derivative liabilities with correspondent banks			1,569						(63)						—						1,506
Total			$	254,332					$	(10,058)					$	(94,339)					$	149,935

(1) For interest rate derivative assets, amounts represent any derivative liability fair values that could be offset in the event of counterparty or customer default.

For interest rate derivative liabilities, amounts represent any derivative asset fair values that could be offset in the event of counterparty or customer default.

(2) Amounts represent cash collateral received from the counterparty or posted by the Corporation on interest rate derivative transactions and foreign exchange

contracts with financial institution counterparties. Interest rate derivatives with customers are collateralized by the same collateral securing the underlying

loans to those borrowers. Cash and securities collateral amounts are included in the table only to the extent of the net derivative fair values.

Cash Flow Hedge Terminations

In October 2024, the Corporation terminated interest rate derivatives designated as cash flow hedges with a combined notional amount of $250.0 million. As the hedged transaction continues to be probable, the unrealized losses will be recorded in AOCI and will be recognized as an increase to interest expense when the previously forecasted hedged items affect earnings in future periods. During the three months ended March 31, 2025, $0.2 million of these unrealized losses were reclassified as an increase to interest expense on borrowings on the Consolidated Statements of Income. During the year ended December 31, 2024, $0.2 million of these unrealized losses were reclassified as an increase to interest expense on borrowings on the Consolidated Statements of Income.

In January 2023, the Corporation terminated interest rate derivatives designated as cash flow hedges with a combined notional amount of $1.0 billion. As the hedged transaction continues to be probable, the unrealized losses that have been recorded in AOCI are recognized as a reduction to interest income, including fees, when the previously forecasted hedged item affects earnings in future periods. During the three months ended March 31, 2025, $3.3 million of these unrealized losses have been reclassified as a reduction of interest income on loans, including fees, on the Consolidated Statements of Income. During the year ended December 31, 2024, $27.9 million of these unrealized losses have been reclassified as a reduction of interest income on loans, including fees, on the Consolidated Statements of Income.

Summary of Offsetting Derivative Liabilities

The following table presents the Corporation's financial instruments that are eligible for offset, and the effects of offsetting, on the Consolidated Balance Sheets:

			Gross Amounts						Gross Amounts Not Offset
			Recognized						on the Consolidated
			on the						Balance Sheets
			Consolidated						Financial						Cash						Net
			Balance Sheets						Instruments(1)						Collateral(2)						Amount
			(dollars in thousands)
March 31, 2025
Interest rate derivative assets			$	139,461					$	(16,003)					$	—					$	123,458
Foreign exchange derivative assets with correspondent banks			528						(528)						—						—
Total			$	139,989					$	(16,531)					$	—					$	123,458
Interest rate derivative liabilities			$	209,392					$	(19,477)					$	(72,464)					$	117,451
Foreign exchange derivative liabilities with correspondent banks			182						(528)						—						(346)
Total			$	209,574					$	(20,005)					$	(72,464)					$	117,105
December 31, 2024
Interest rate derivative assets			$	159,187					$	(12,739)					$	—					$	146,448
Foreign exchange derivative assets with correspondent banks			63						(63)						—						—
Total			$	159,250					$	(12,802)					$	—					$	146,448
Interest rate derivative liabilities			$	252,763					$	(9,995)					$	(94,339)					$	148,429
Foreign exchange derivative liabilities with correspondent banks			1,569						(63)						—						1,506
Total			$	254,332					$	(10,058)					$	(94,339)					$	149,935

(1) For interest rate derivative assets, amounts represent any derivative liability fair values that could be offset in the event of counterparty or customer default.

For interest rate derivative liabilities, amounts represent any derivative asset fair values that could be offset in the event of counterparty or customer default.

(2) Amounts represent cash collateral received from the counterparty or posted by the Corporation on interest rate derivative transactions and foreign exchange

contracts with financial institution counterparties. Interest rate derivatives with customers are collateralized by the same collateral securing the underlying

loans to those borrowers. Cash and securities collateral amounts are included in the table only to the extent of the net derivative fair values.

Cash Flow Hedge Terminations

In October 2024, the Corporation terminated interest rate derivatives designated as cash flow hedges with a combined notional amount of $250.0 million. As the hedged transaction continues to be probable, the unrealized losses will be recorded in AOCI and will be recognized as an increase to interest expense when the previously forecasted hedged items affect earnings in future periods. During the three months ended March 31, 2025, $0.2 million of these unrealized losses were reclassified as an increase to interest expense on borrowings on the Consolidated Statements of Income. During the year ended December 31, 2024, $0.2 million of these unrealized losses were reclassified as an increase to interest expense on borrowings on the Consolidated Statements of Income.

In January 2023, the Corporation terminated interest rate derivatives designated as cash flow hedges with a combined notional amount of $1.0 billion. As the hedged transaction continues to be probable, the unrealized losses that have been recorded in AOCI are recognized as a reduction to interest income, including fees, when the previously forecasted hedged item affects earnings in future periods. During the three months ended March 31, 2025, $3.3 million of these unrealized losses have been reclassified as a reduction of interest income on loans, including fees, on the Consolidated Statements of Income. During the year ended December 31, 2024, $27.9 million of these unrealized losses have been reclassified as a reduction of interest income on loans, including fees, on the Consolidated Statements of Income.

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