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Derivatives | 3 Months Ended
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Mar. 31, 2024
Derivatives [Abstract] |
Derivatives | DERIVATIVES To a limited extent, the Company utilizes interest rate swaps contracts with clients and counterparty banks for the purpose of offsetting or hedging exposures arising out of lending and borrowing transactions. The Company offers borrowers interest rate swaps under a "back-to-back" loan hedging program and offsets these "pay floating/receive fixed" contracts with borrowers with "receive floating/pay fixed" swaps with counterparty banks. The total notional balance of these offsetting hedging contracts was $167.0 million at March 31, 2024. The Company has also hedged the interest rate risk and foreign currency risk on €25.8 million of subordinated debt utilizing a combined cross currency swap/interest rate swap, which has had the effect of hedging the foreign currency risk and fixing the Euribor-based floating rate instrument at a fixed rate of 2.76% through July 2025. The outputs from the Company's NII simulation analysis and MVE modeling reflect the impact of these interest rate/currency swaps, however, the impact is not material. Our derivatives are carried at fair value and recorded in "Other assets" or "Accrued interest payable and other liabilities," as appropriate, in the consolidated balance sheets. For derivatives not designated as hedging instruments, the changes in fair value of our derivatives and the related fees are recognized in "Noninterest income - other" in the condensed consolidated statements of earnings (loss). For the three months ended March 31, 2024, changes in fair value and fees recorded to noninterest income in the condensed consolidated statements of earnings (loss) were immaterial. See Note 6. Other Assets for additional information regarding equity warrant assets. Included in the interest rate contracts in the table below are pay-fixed, receivable-variable interest rate swap contracts classified as cash flow hedges with notional amounts aggregating $300.0 million, five year terms, and varying maturity dates throughout 2028. These swap contracts were entered into with institutional counterparties to hedge against variability in cash flow attributable to interest rate risk on a portion of the Company's variable rate deposits and borrowings. The cash flow hedges were deemed highly effective at inception and thereafter. For derivatives designated as cash flow hedges, the portion of changes in fair value considered to be highly effective are reported as a component of "Accumulated other comprehensive loss, net" on the consolidated balance sheets until the related cash flows from the hedged items are recognized in earnings. As of March 31, 2024, the fair value of the cash flow hedges represented an asset of $1.7 million, related to which $0.3 million (net of tax) was included in "Accumulated other comprehensive loss, net." The following table presents the U.S. dollar notional amounts and fair values of our derivative instruments included in the condensed consolidated balance sheets as of the dates indicated:
| March 31, 2024 |  | December 31, 2023
| Notional |  | Fair |  | Notional |  | Fair
| Amount |  | Value |  | Amount |  | Value
| (In thousands)
Derivative Assets: |  |  |  |  |  |  |
Interest rate contracts | $ | 466,990 |  |  | $ | 9,035 |  |  | $ | 168,850 |  |  | $ | 6,426 |
Foreign exchange contracts | 42,417 |  |  | 1,170 |  |  | 45,742 |  |  | 1,883 |
Interest rate and economic contracts | 509,407 |  |  | 10,205 |  |  | 214,592 |  |  | 8,309 |
Equity warrant assets | 16,944 |  |  | 3,708 |  |  | 17,008 |  |  | 3,869 |
Total | $ | 526,351 |  |  | $ | 13,913 |  |  | $ | 231,600 |  |  | $ | 12,178 |
Derivative Liabilities: |  |  |  |  |  |  |
Interest rate contracts | $ | 166,990 |  |  | $ | 7,262 |  |  | $ | 468,850 |  |  | $ | 10,421 |
Foreign exchange contracts | 42,417 |  |  | 75 |  |  | 45,742 |  |  | 128 |
Total | $ | 209,407 |  |  | $ | 7,337 |  |  | $ | 514,592 |  |  | $ | 10,549 |
For further information regarding our derivatives, see Note 1. Nature of Operations and Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements contained in "Item 8. Financial Statements and Supplementary Data" of the Form 10-K.

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- 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
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