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Derivative Financial Instruments (Tables)

9 Months Ended

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 were valued at zero as further reductions to the conversion rate were not reasonably estimable.

3 The makewhole agreements were valued at zero as the likelihood 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 of 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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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.

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