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Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of the Notional Amount and Fair Value of the Derivative Financial Instruments

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

 

 

 

December 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 1

 

$

2,000,000

 

 

$

2,738

 

 

$

3,000,000

 

 

$

(48,672

)

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Lock Commitments

 

 

1,534

 

 

 

34

 

 

 

5,899

 

 

 

148

 

Forward Commitments

 

 

3,517

 

 

 

6

 

 

 

8,583

 

 

 

(105

)

Interest Rate Swap Agreements

 

 

 

 

 

 

 

 

 

 

 

 

Receive Fixed/Pay Variable Swaps

 

 

2,123,665

 

 

 

(136,218

)

 

 

2,067,624

 

 

 

(114,701

)

Pay Fixed/Receive Variable Swaps

 

 

2,123,665

 

 

 

136,125

 

 

 

2,067,624

 

 

 

114,542

 

Foreign Exchange Contracts

 

 

1,302

 

 

 

(2

)

 

 

745

 

 

 

—

 

Conversion Rate Swap Agreement 2

 

 

96,466

 

 

NA

 

 

 

155,196

 

 

NA

 

Makewhole agreements 3

 

 

65,763

 

 

NA

 

 

 

—

 

 

NA

 

 

1 As of December 31, 2024, the amounts presented in the table above exclude forward starting swaps with a notional value of $300 million and a fair value of $4.7 million. These swaps are scheduled to begin between August 2025 and March 2026.

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 buyer was 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 consolidated statements of condition as of December 31, 2024 and 2023:

 

 

 

December 31, 2024

 

 

December 31, 2023

 

(dollars in thousands)

 

Asset
Derivatives 1

 

 

Liability
Derivatives 1

 

 

Asset
Derivatives 1

 

 

Liability
Derivatives 1

 

Interest Rate Swap Agreements

 

 

 

 

 

 

 

 

 

 

 

 

  Not designated as hedging instruments

 

$

146,923

 

 

$

147,016

 

 

$

143,593

 

 

$

143,752

 

  Designated as hedging instruments

 

 

14,507

 

 

 

7,039

 

 

 

(48,672

)

 

 

—

 

 

 

161,430

 

 

 

154,055

 

 

 

94,921

 

 

 

143,752

 

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Lock Commitments

 

 

34

 

 

 

—

 

 

 

148

 

 

 

—

 

Forward Commitments

 

 

9

 

 

 

3

 

 

 

—

 

 

 

105

 

Foreign Exchange Contracts

 

 

—

 

 

 

2

 

 

 

—

 

 

 

—

 

Total Derivatives

 

$

161,473

 

 

$

154,060

 

 

$

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. Derivatives are recognized on the Company’s consolidated statements of condition at fair value.
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 years ended December 31, 2024, 2023 and 2022:

 

 

 

 

 

Year Ended December 31,

 

(dollars in thousands)

 

Location of Net Gains (Losses) Recognized in the Consolidated Statements of Income

 

2024

 

 

2023

 

 

2022

 

Derivatives designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

  Recognized on Interest Rate Swap Agreements

 

Interest Income on Investment Securities Available-for-Sale

 

$

17,679

 

 

$

(20,293

)

 

$

—

 

  Recognized on Hedged Item

 

Interest Income on Investment Securities Available-for-Sale

 

 

(17,903

)

 

 

20,260

 

 

 

—

 

  Net Cash Settlements

 

Interest Income on Investment Securities Available-for-Sale

 

 

8,772

 

 

 

3,682

 

 

 

—

 

  Recognized on Interest Rate Swap Agreements

 

Interest and Fees on Loans and Leases

 

 

18,301

 

 

 

(28,379

)

 

 

—

 

  Recognized on Hedged Item

 

Interest and Fees on Loans and Leases

 

 

(18,296

)

 

 

28,386

 

 

 

—

 

  Net Cash Settlements

 

Interest and Fees on Loans and Leases

 

 

13,435

 

 

 

4,161

 

 

 

—

 

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Lock Commitments

 

Mortgage Banking

 

 

805

 

 

 

828

 

 

 

(915

)

Forward Commitments

 

Mortgage Banking

 

 

210

 

 

 

—

 

 

 

2,348

 

Interest Rate Swap Agreements

 

Other Noninterest Income

 

 

64

 

 

 

(96

)

 

 

44

 

Foreign Exchange Contracts

 

Other Noninterest Income

 

 

4,398

 

 

 

3,745

 

 

 

1,792

 

Conversion Rate Swap Agreement

 

Investment Securities Gains (Losses), Net

 

 

(2,390

)

 

 

(1,598

)

 

 

—

 

Total

 

 

 

$

25,075

 

 

$

10,696

 

 

$

3,269

 

 
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 statements of condition related to the cumulative basis adjustment for fair value hedges of derivative financial instruments designated as hedging instruments as of December 31, 2024 and 2023:

Line Item in the 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)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Investment Securities, Available-for-Sale 1

 

$

999,594

 

 

$

1,320,260

 

 

$

(406

)

 

$

20,260

 

Loans and Leases 2

 

 

1,292,670

 

 

 

1,728,386

 

 

 

(7,330

)

 

 

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 December 31, 2024 and 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 December 31, 2024 and 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $3.0 billion and $3.2 billion, respectively.