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Derivative Financial Instruments (Tables) | 9 Months Ended
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Sep. 30, 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 September 30, 2024, and December 31, 2023 were as follows:
|  | September 30, 2024 |  |  | December 31, 2023 |
(dollars in thousands) |  | Notional Amount |  |  | Fair Value |  |  | Notional Amount |  |  | Fair Value |
Derivatives designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Swap Agreements 1 |  | $ | 2,800,000 |  |  | $ | (40,563 | ) |  | $ | 3,000,000 |  |  | $ | (48,672 | )
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Lock Commitments |  |  | 9,149 |  |  |  | 152 |  |  |  | 5,899 |  |  |  | 148 |
Forward Commitments |  |  | 12,635 |  |  |  | 3 |  |  |  | 8,583 |  |  |  | (105 | )
Interest Rate Swap Agreements |  |  |  |  |  |  |  |  |  |  |  |
Receive Fixed/Pay Variable Swaps |  |  | 2,066,209 |  |  |  | (76,476 | ) |  |  | 2,067,624 |  |  |  | (114,701 | )
Pay Fixed/Receive Variable Swaps |  |  | 2,066,209 |  |  |  | 76,324 |  |  |  | 2,067,624 |  |  |  | 114,542 |
Foreign Exchange Contracts |  |  | 224 |  |  |  | (2 | ) |  |  | 745 |  |  |  | — |
Conversion Rate Swap Agreements 2 |  |  | 85,114 |  |  | NA |  |  |  | 155,196 |  |  | NA |
Makewhole Agreements 3 |  |  | 58,317 |  |  | NA |  |  |  | — |  |  | NA |
1 As of September 30, 2024, the amounts presented in the table above excluded forward starting swaps with a notional value of $300 million and a fair value of ($0.1) million. These swaps are scheduled to begin between August 2025 and March 2026 upon maturity of currently active swaps with a notional value of $300 million. 2 The conversion rate swap agreements we re valued at zero as further reductions to the conversion rate were not reasonably estimable. 3 The makewhole agreements were valued at zero as the like lihood of a payment required to the counterparty were not 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 unaudited consolidated statements of condition as of September 30, 2024 and December 31, 2023:
|  | September 30, 2024 |  |  | December 31, 2023 |
|  | Asset |  |  | Liability |  |  | Asset |  |  | Liability |
(dollars in thousands) |  | Derivatives 1 |  |  | Derivatives 1 |  |  | Derivatives 1 |  |  | Derivatives 1 |
Interest Rate Swap Agreements |  |  |  |  |  |  |  |  |  |  |  |
Not designated as hedging instruments |  | $ | 114,914 |  |  | $ | 115,066 |  |  | $ | 143,593 |  |  | $ | 143,752 |
Designated as hedging instruments |  |  | (40,679 | ) |  |  | — |  |  |  | (48,672 | ) |  |  | — |
|  |  | 74,235 |  |  |  | 115,066 |  |  |  | 94,921 |  |  |  | 143,752 |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Lock Commitments |  |  | 158 |  |  |  | 6 |  |  |  | 148 |  |  |  | — |
Forward Commitments |  |  | 21 |  |  |  | 18 |  |  |  | — |  |  |  | 105 |
Foreign Exchange Contracts |  |  | — |  |  |  | 2 |  |  |  | — |  |  |  | — |
Total Derivatives |  | $ | 74,414 |  |  | $ | 115,092 |  |  | $ | 95,069 |  |  | $ | 143,857 |
1 Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the unaudited consolidated statements of condition. The Company’s free-standing derivative financial instruments are carried at fair value on the Company’s unaudited 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 unaudited consolidated statements of income for the three and nine months ended September 30, 2024 and 2023:
|  | Location of |  |  |  |  |  |  |  |  |  |  |  |
|  | Net Gains (Losses) |  | Three Months Ended |  |  | Nine Months Ended |
|  | Recognized in the |  | September 30, |  |  | September 30, |
(dollars in thousands) |  | Statements of Income |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Derivatives designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |
Recognized on Interest Rate Swap Agreements |  | Interest Income on Investment Securities Available-for-Sale |  | $ | (22,380 | ) |  | $ | 4,954 |  |  | $ | (2,405 | ) |  | $ | 4,954 |
Recognized on Hedged Item |  | Interest Income on Investment Securities Available-for-Sale |  |  | 22,435 |  |  |  | (5,035 | ) |  |  | 2,288 |  |  |  | (5,035 | )
Recognized on Interest Rate Swap Agreements |  | Interest and Fees on Loans and Leases |  |  | (31,458 | ) |  |  | 2,828 |  |  |  | (4,634 | ) |  |  | 3,262 |
Recognized on Hedged Item |  | Interest and Fees on Loans and Leases |  |  | 31,781 |  |  |  | (2,885 | ) |  |  | 4,721 |  |  |  | (3,321 | )
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Lock Commitments |  | Mortgage Banking |  |  | 506 |  |  |  | 75 |  |  |  | 751 |  |  |  | 553 |
Forward Commitments |  | Mortgage Banking |  |  | (137 | ) |  |  | 199 |  |  |  | 79 |  |  |  | 260 |
Interest Rate Swap Agreements |  | Other Noninterest Income |  |  | (47 | ) |  |  | 21 |  |  |  | 6 |  |  |  | 3 |
Foreign Exchange Contracts |  | Other Noninterest Income |  |  | 1,109 |  |  |  | 816 |  |  |  | 3,349 |  |  |  | 2,460 |
Conversion Rate Swap Agreement |  | Investment Securities Gains (Losses), Net |  |  | — |  |  |  | (798 | ) |  |  | — |  |  |  | (1,362 | )
Total |  |  |  | $ | 1,809 |  |  | $ | 175 |  |  | $ | 4,155 |  |  | $ | 1,774 |
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 unaudited consolidated statements of condition related to the cumulative basis adjustment for fair value hedges as of September 30, 2024 and December 31, 2023:
Derivative Financial Instruments |  |  |  |  |  |  |  |  |
Designated as Hedging Instruments |  |  |  |  |  |  |  |  |
Line Item in the Unaudited Consolidated Statements 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) | September 30, 2024 |  | December 31, 2023 |  |  | September 30, 2024 |  | December 31, 2023 |
Investment Securities, Available-for-Sale 1 | $ | 1,622,548 |  | $ | 1,320,260 |  |  | $ | 22,548 |  | $ | 20,260 |
Loans and Leases 2 |  | 1,517,866 |  |  | 1,728,386 |  |  |  | 17,866 |  |  | 28,386 |
1 These amounts were included in the fair value o f closed portfolios of investment securities, AFS 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 September 30, 2024 and December 31, 2023, the fair value of the closed portfolios used in these hedging relationships was $1.7 billion and $1.8 billion, respectively. 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 September 30, 2024 and December 31, 2023 the amortized cost basis of the closed portfolios used in these hedging relationships was $3.0 billion and $3.2 billion, respectively.

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- 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
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- 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -SubTopic 10 -Topic 815 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1B Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-8 Reference 5: 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 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5 Reference 9: 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 + Details
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