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Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of the Notional Amount and Fair Value of the Derivative Financial Instruments

The notional amount and fair value of the Company’s derivative financial instruments as of March 31, 2024, and December 31, 2023, were as follows:


	March 31, 2024					December 31, 2023
(dollars in thousands)	Notional Amount		Fair Value			Notional Amount		Fair Value
Derivatives designated as hedging instruments
Interest Rate Swap Agreements	$	3,000,000	$	(9,176	)	$	3,000,000	$	(48,672	)
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments		7,694		115			5,899		148
Forward Commitments		8,278		(29	)		8,583		(105	)
Interest Rate Swap Agreements
Receive Fixed/Pay Variable Swaps		2,057,296		(148,100	)		2,067,624		(114,701	)
Pay Fixed/Receive Variable Swaps		2,057,296		147,986			2,067,624		114,542
Foreign Exchange Contracts		1,395		(2	)		745		—
Conversion Rate Swap Agreement 1		166,361	NA				155,196	NA

1 The conversion rate swap agreements were valued at zero as further reductions to the conversion rate were deemed neither probable nor reasonably estimable.

Derivative Financial Instruments, their Fair Values, and Balance Sheet Location

The following table presents the Company’s derivative financial instruments, their fair values, and their location in the consolidated statements of condition as of March 31, 2024, and December 31, 2023:


	March 31, 2024					December 31, 2023
	Asset			Liability		Asset			Liability
(dollars in thousands)	Derivatives1			Derivatives1		Derivatives1			Derivatives1
Interest Rate Swap Agreements
Not designated as hedging instruments	$	162,219		$	162,333	$	143,593		$	143,752
Designated as hedging instruments		(9,176	)		—		(48,672	)		—
		153,043			162,333		94,921			143,752
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments		117			2		148			—
Forward Commitments		—			29		—			105
Foreign Exchange Contracts		—			2		—			—
Total Derivatives	$	153,160		$	162,366	$	95,069		$	143,857

1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the consolidated statements of condition. The Company’s free-standing derivative financial instruments are carried at fair value on the Company’s consolidated statements of condition.

Derivative Financial Instruments and the Amount and Location of the Net Gains or Losses Recognized in the Statements of Income

The following table presents the Company’s derivative financial instruments and the amount and location of the net gains or losses recognized in the consolidated statements of income for the three months ended March 31, 2024, and March 31, 2023:


	Location of
	Net Gains (Losses)	Three Months Ended
	Recognized in the	March 31,
(dollars in thousands)	Statements of Income	2024			2023
Derivatives designated as hedging instruments
Recognized on Interest Rate Swap Agreements	Interest Income on Investment Securities Available-for-Sale	$	16,893		$	—
Recognized on Hedged Item	Interest Income on Investment Securities Available-for-Sale		(17,002	)		—
Recognized on Interest Rate Swap Agreements	Interest and Fees on Loans and Leases		22,603			—
Recognized on Hedged Item	Interest and Fees on Loans and Leases		(22,751	)		—
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments	Mortgage Banking		123			204
Forward Commitments	Mortgage Banking		96			(31	)
Interest Rate Swap Agreements	Other Noninterest Income		44			(16	)
Foreign Exchange Contracts	Other Noninterest Income		1,171			841
Total		$	1,177		$	998

Schedule of derivative instruments in statement of financial position related to cumulative basis adjustment for fair value hedges

The following amounts were recorded on the consolidated statement of financial condition related to the cumulative basis adjustment for fair value hedges as of March 31, 2024 and December 31, 2023:


Derivative Financial Instruments
Designated as Hedging Instruments
Line Item in the Consolidated Statement of Condition	Carrying Amount of the Hedged Assets		Cumulative Amount of Fair Value Hedging Adjustment Included In the Carrying Amount of the Hedged Assets
(dollars in thousands)	March 31, 2024	December 31, 2023	March 31, 2024	December 31, 2023
Investment Securities, Available-for-Sale1	$1,303,258	$1,320,260	$3,258	$20,260
Loans and Leases2	1,705,635	1,728,386	5,635	28,386

1 These amounts were included in the fair value of closed portfolios of investment securities, available-for-sale used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. As of March 31, 2024, the fair value of the closed portfolios used in these hedging relationships was $1.8 billion.

2 These amounts were included in the amortized cost basis of closed portfolios of loans used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. As of March 31, 2024, the amortized cost basis of the closed portfolios used in these hedging relationships was $3.1 billion.

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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