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Derivatives and Hedging Activities | 6 Months Ended
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Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives and Hedging Activities | Note 6 Derivative Financial Instruments Derivatives designated as hedging instruments The Company has entered into interest rate derivatives designated as cash flow hedges with the objective of limiting the variability of interest payment cash flows. Changes in fair value of derivative instruments designated as cash flow hedges are reported in accumulated other comprehensive income. The following table summarizes the Company's derivatives designated as hedging instruments as of the dates indicated (in thousands):
| June 30, 2025 |  | December 31, 2024
| Notional Amount |  | Fair Value(1) |  | Notional Amount |  | Fair Value(1)
|  | Asset |  | Liability |  |  | Asset |  | Liability
Derivatives designated as cash flow hedges: |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | $ | 3,405,000 |  |  | $ | 5,259 |  |  | $ | (191) |  |  | $ | 4,030,000 |  |  | $ | — |  |  | $ | (4,011) |
Interest rate caps purchased | 100,000 |  |  | 1,575 |  |  | — |  |  | 200,000 |  |  | 3,395 |  |  | — |
Interest rate collar | 125,000 |  |  | 17 |  |  | — |  |  | 125,000 |  |  | — |  |  | (30) |
| $ | 3,630,000 |  |  | $ | 6,851 |  |  | $ | (191) |  |  | $ | 4,355,000 |  |  | $ | 3,395 |  |  | $ | (4,041) |
(1)The fair values of derivatives are included in other assets or other liabilities in the consolidated balance sheets. The following table provides information about the amount of gain (loss) related to derivatives designated as cash flow hedges reclassified from AOCI into interest income or expense for the periods indicated (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024 |  |
Location of gain (loss) reclassified from AOCI into income: |  |  |  |  |  |  |  |  |  |
Interest expense on deposits |  | $ | 832 |  |  | $ | 4,683 |  |  | $ | 2,177 |  |  | $ | 9,609 |  |  |
Interest expense on borrowings |  | 5,074 |  |  | 12,018 |  |  | 11,115 |  |  | 27,730 |  |  |
Interest income on loans |  | (1,305) |  |  | (810) |  |  | (2,609) |  |  | (1,626) |  |  |
|  | $ | 4,601 |  |  | $ | 15,891 |  |  | $ | 10,683 |  |  | $ | 35,713 |  |  |
During the three and six months ended June 30, 2025 and 2024, no derivative positions designated as cash flow hedges were discontinued and none of the gains and losses reported in AOCI were reclassified into earnings as a result of the discontinuance of cash flow hedges or because of the early extinguishment of debt. As of June 30, 2025, the amount of net gain expected to be reclassified from AOCI into earnings during the next 12 months was $7.7 million, based on the forward curve. See Note 7 to the consolidated financial statements for additional information about the reclassification adjustments from AOCI into earnings. Derivatives not designated as hedging instruments The Company enters into interest rate derivative contracts with certain of its commercial borrowers to enable those borrowers to manage their exposure to interest rate fluctuations. To mitigate interest rate risk associated with these derivative contracts, the Company enters into offsetting derivative contract positions with primary dealers. The Company purchases and sells credit protection under RPAs with the objective of sharing with financial institution counterparties some of the credit exposure related to interest rate derivative contracts entered into with commercial borrowers related to participations purchased or sold. The Company will make or receive payments under these agreements if a customer defaults on an obligation to perform under certain interest rate derivative contracts. The Company also enters into foreign currency forward derivative contracts with commercial borrowers to enable borrowers to manage their exposure to foreign currency fluctuations. The Company enters into offsetting forward contracts with primary dealers to mitigate the foreign currency risk associated with these contracts. These derivative contracts are not designated as hedging instruments; therefore, changes in the fair value of these derivatives are recognized in earnings. The impact on earnings related to changes in fair value of these derivatives was not material for the three and six months ended June 30, 2025 and 2024. The notional amount and fair value of the foreign currency forward derivative contracts were not material at June 30, 2025 and December 31, 2024. The Company may be exposed to credit risk in the event of non-performance by the counterparties to its commercial customer derivative agreements. The Company assesses the credit risk of its financial institution counterparties by monitoring publicly available credit rating and financial information. The Company manages dealer credit risk by entering into derivatives only with primary and highly rated counterparties, the use of ISDA master agreements, central clearing mechanisms and counterparty limits. The agreements contain bilateral collateral arrangements with the amount of collateral to be posted generally governed by the settlement value of outstanding swaps. The Company manages the risk of default by its commercial borrower counterparties through its normal loan underwriting and credit monitoring policies and procedures. The Company does not currently anticipate any significant losses from failure of derivative counterparties to honor their obligations. The following table summarizes the Company's interest rate derivatives not designated as hedging instruments as of the dates indicated (in thousands):
| June 30, 2025 |  | December 31, 2024
| Notional Amount |  | Fair Value(1) |  | Notional Amount |  | Fair Value(1)
|  | Asset |  | Liability |  |  | Asset |  | Liability
Pay-fixed interest rate swaps | $ | 3,321,081 |  |  | $ | 37,977 |  |  | $ | (46,475) |  |  | $ | 2,767,552 |  |  | $ | 69,802 |  |  | $ | (10,342) |
Pay-variable interest rate swaps | 3,321,081 |  |  | 46,460 |  |  | (37,977) |  |  | 2,767,552 |  |  | 10,342 |  |  | (69,802) |
Interest rate caps purchased | 228,417 |  |  | 516 |  |  | — |  |  | 210,398 |  |  | 1,418 |  |  | — |
Interest rate caps sold | 228,417 |  |  | — |  |  | (516) |  |  | 210,398 |  |  | — |  |  | (1,418) |
RPAs purchased | 170,070 |  |  | 304 |  |  | — |  |  | 126,578 |  |  | 175 |  |  | — |
RPAs sold | 505,796 |  |  | — |  |  | (414) |  |  | 424,424 |  |  | — |  |  | (296) |
| $ | 7,774,862 |  |  | $ | 85,257 |  |  | $ | (85,382) |  |  | $ | 6,506,902 |  |  | $ | 81,737 |  |  | $ | (81,858) |
(1)Fair values of these derivatives are included in other assets and other liabilities in the consolidated balance sheets. Some of the Company’s ISDA master agreements with financial institution counterparties contain provisions that permit either counterparty to terminate the agreements and require settlement in the event that regulatory capital ratios fall below certain designated thresholds, upon the initiation of other defined regulatory actions or upon suspension or withdrawal of the Bank’s credit rating. Currently, there are no circumstances that would trigger these provisions of the agreements. Master netting agreements The Company does not offset assets and liabilities under master netting agreements for financial reporting purposes. Information on interest rate swaps and caps subject to these agreements is as follows at the dates indicated (in thousands):
| June 30, 2025
|  |  | Gross Amounts Offset in Balance Sheet |  | Net Amounts Presented in Balance Sheet |  | Gross Amounts Not Offset in Balance Sheet |  |
| Gross Amounts Recognized |  |  |  | Derivative Instruments |  | Collateral Pledged |  | Net Amount
Derivative assets | $ | 45,344 |  |  | $ | — |  |  | $ | 45,344 |  |  | $ | (21,320) |  |  | $ | (23,997) |  |  | $ | 27 |
Derivative liabilities | (46,666) |  |  | — |  |  | (46,666) |  |  | 21,320 |  |  | 25,346 |  |  | — |
| $ | (1,322) |  |  | $ | — |  |  | $ | (1,322) |  |  | $ | — |  |  | $ | 1,349 |  |  | $ | 27 |
| December 31, 2024
|  |  | Gross Amounts Offset in Balance Sheet |  | Net Amounts Presented in Balance Sheet |  | Gross Amounts Not Offset in Balance Sheet |  |
| Gross Amounts Recognized |  |  |  | Derivative Instruments |  | Collateral Pledged |  | Net Amount
Derivative assets | $ | 74,615 |  |  | $ | — |  |  | $ | 74,615 |  |  | $ | (11,161) |  |  | $ | (63,376) |  |  | $ | 78 |
Derivative liabilities | (14,383) |  |  | — |  |  | (14,383) |  |  | 11,161 |  |  | 3,222 |  |  | — |
| $ | 60,232 |  |  | $ | — |  |  | $ | 60,232 |  |  | $ | — |  |  | $ | (60,154) |  |  | $ | 78 |
The difference between the amounts reported for interest rate swaps subject to master netting agreements and the total fair value of interest rate contract derivative financial instruments reported in the consolidated balance sheets is related to interest rate derivative contracts not subject to master netting agreements.

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