XML 41 R31.htm IDEA: XBRL DOCUMENT v3.25.3
Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2025
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, 2025, and December 31, 2024 were as follows:
September 30, 2025December 31, 2024
(dollars in thousands)Notional AmountFair ValueNotional AmountFair Value
Derivatives designated as hedging instruments
Interest Rate Swap Agreements 1
$1,400,000 $(8,631)$2,000,000 $2,738 
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments2,286 49 1,534 34 
Forward Commitments3,250 (10)3,517 6 
Interest Rate Swap Agreements
Receive Fixed/Pay Variable Swaps2,285,594 (71,345)2,123,665 (136,218)
Pay Fixed/Receive Variable Swaps2,285,594 71,222 2,123,665 136,125 
Conversion Rate Swap Agreements 2
103,508  NA 96,466  NA
Makewhole Agreements 3
46,901  NA 65,763  NA
1As of September 30, 2025 and December 31, 2024, the amounts presented in the table above exclude forward starting swaps with notional values of $600 million and $300 million, respectively, and fair values of $1.5 million and $4.7 million, respectively. These swaps are scheduled to begin between October 2025 and September 2026.
2The conversion rate swap agreements were valued at zero as further reductions to the conversion rate were not reasonably estimable.
3The 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 unaudited consolidated statements of condition as of September 30, 2025 and December 31, 2024:
September 30, 2025December 31, 2024
(dollars in thousands)
Asset
Derivatives 1
Liability
Derivatives 1
Asset
Derivatives 1
Liability
Derivatives 1
Interest Rate Swap Agreements
Not Designated as Hedging Instruments$101,508 $101,631 $146,923 $147,016 
Designated as Hedging Instruments2,551 9,713 14,507 7,039 
104,059 111,344 161,430 154,055 
Derivatives not designated as hedging instruments
Interest Rate Lock Commitments49 — 34 — 
Forward Commitments3 13 9 3 
Total Derivatives$104,111 $111,357 $161,473 $154,058 
1Asset derivatives are included in other assets and liability derivatives are included in other liabilities in the unaudited consolidated statements of condition. Derivatives are recognized on the Company's unaudited 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 unaudited consolidated statements of income for the three and nine months ended September 30, 2025 and 2024:
Location of Net Gains (Losses) Recognized in the Statements of IncomeThree Months Ended September 30,Nine Months Ended September 30,
(dollars in thousands)2025202420252024
Derivatives designated as hedging instruments
Recognized on Interest Rate Swap AgreementsInterest Income on Investment Securities Available-for-Sale$726 $(22,380)$(6,764)$(2,405)
Recognized on Hedged ItemInterest Income on Investment Securities Available-for-Sale(750)22,435 6,746 2,288 
Net Cash SettlementsInterest Income on Investment Securities Available-for-Sale226 2,615 205 8,073 
Recognized on Interest Rate Swap AgreementsInterest and Fees on Loans and Leases173 (31,458)(11,654)(4,634)
Recognized on Hedged ItemInterest and Fees on Loans and Leases(238)31,781 11,551 4,721 
Net Cash SettlementsInterest and Fees on Loans and Leases2,130 3,976 5,639 10,691 
Derivatives not designated as hedging instruments
Interest Rate Lock CommitmentsMortgage Banking85 506 337 751 
Forward CommitmentsMortgage Banking(4)(137)(8)79 
Interest Rate Swap AgreementsOther Noninterest Income(19)(47)(29)6 
Conversion Rate Swap AgreementsInvestment Securities Gains (Losses), Net(780)— (1,343)— 
Total$1,549 $7,291 $4,680 $19,570 
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, 2025 and December 31, 2024:
Line Item in the Unaudited Consolidated Statements of ConditionCarrying Amount of the Hedged AssetsCumulative Amount of Fair Value Hedging Adjustment Included In the Carrying Amount of the Hedged Assets
(dollars in thousands)September 30, 2025December 31, 2024September 30, 2025December 31, 2024
Investment Securities, Available-for-Sale 1
$1,206,340 $999,594 $6,340 $(406)
Loans and Leases 2
1,804,221 1,292,670 (2,798)(7,330)
1These 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, 2025 and December 31, 2024, the fair value of the closed portfolios used in these hedging relationships was $1.5 billion and $1.7 billion, respectively.
2These 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, 2025 and December 31, 2024, the amortized cost basis of the closed portfolios used in these hedging relationships was $2.8 billion and $3.0 billion, respectively.