XML 79 R40.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Derivative Assets at Fair Value | As of June 30, 2024 and December 31, 2023, the following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges.
|  | Amortized Cost |  | Cumulative Amount of Fair Value Hedging Adjustment to Hedged Items
(amounts in thousands) |  | June 30, 2024 |  | December 31, 2023 |  | June 30, 2024 |  | December 31, 2023
AFS debt securities |  | $ | 22,500 |  |  | $ | 22,500 |  |  | $ | 508 |  |  | $ | 941 |
Deposits |  | 1,183,063 |  |  | 300,000 |  |  | (939) |  |  | 1,432 |
FHLB advances |  | 1,200,000 |  |  | 700,000 |  |  | (6,651) |  |  | 3,206 |
Fair Value of Derivative Financial Instruments | The following tables present the fair value of Customers’ derivative financial instruments as well as their presentation on the consolidated balance sheets as of June 30, 2024 and December 31, 2023.
|  | June 30, 2024
|  | Derivative Assets |  | Derivative Liabilities
(amounts in thousands) |  | Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Interest rate swaps and caps (1) |  | Other assets |  | $ | 20,180 |  |  | Other liabilities |  | $ | 29,105 |
|  | December 31, 2023
|  | Derivative Assets |  | Derivative Liabilities
(amounts in thousands) |  | Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Interest rate swaps and caps (1) |  | Other assets |  | $ | 17,903 |  |  | Other liabilities |  | $ | 27,097 |
(1) Customers’ centrally cleared derivatives are legally settled through variation margin payments and these payments are reflected as a reduction of the related derivative asset or liability, including accrued interest, on the consolidated balance sheet.
Effect of Derivative Financial Instruments on Net Income and Comprehensive Income | The following table presents amounts included in the consolidated statements of income related to derivatives designated as fair value hedges and derivatives not designated as hedges for the three and six months ended June 30, 2024 and 2023.
|  |  | Amount of Income (Loss) Recognized in Earnings
|  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
(amounts in thousands) | Income Statement Location |  | 2024 |  | 2023 |  | 2024 |  | 2023
Derivatives designated as fair value hedges: |  |  |  |  |  |  |  |
Recognized on interest rate swaps | Net interest income |  | $ | 3,563 |  |  | $ | 6,532 |  |  | $ | 11,736 |  |  | $ | 6,832 |
Recognized on hedged AFS debt securities | Net interest income |  | (256) |  |  | 50 |  |  | (433) |  |  | (250) |
Recognized on hedged deposits | Net interest income |  | (1,686) |  |  | — |  |  | (1,686) |  |  | — |
Recognized on hedged FHLB advances | Net interest income |  | (1,621) |  |  | (6,582) |  |  | (9,617) |  |  | (6,582) |
Total |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |
Interest rate swaps and caps | Other non-interest income |  | $ | 63 |  |  | $ | 165 |  |  | $ | 735 |  |  | $ | 140 |
Summary of Offsetting of Financial Assets and Derivative Assets | The following tables present derivative instruments that are subject to enforceable master netting arrangements. Customers’ interest rate swaps and interest rate caps with institutional counterparties are subject to master netting arrangements and are included in the tables below. Interest rate swaps and interest rate caps with commercial banking customers are not subject to master netting arrangements and are excluded from the tables below. Customers has not made a policy election to offset its derivative positions.
| Gross Amounts Recognized on the Consolidated Balance Sheet |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheet |  | Net Amount
(amounts in thousands) | Financial Instruments |  | Cash Collateral Received/Posted |
June 30, 2024 |  |  |  |  |  |  |  |  |  |  |
Interest rate derivative assets with institutional counterparties | $ | 19,876 |  |  |  |  |  |  | $ | (511) |  |  | $ | (19,365) |  |  | $ | — |
Interest rate derivative liabilities with institutional counterparties | $ | 511 |  |  |  |  |  |  | $ | (511) |  |  | $ | — |  |  | $ | — |
| Gross Amounts Recognized on the Consolidated Balance Sheet |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheet |  | Net Amount
(amounts in thousands) | Financial Instruments |  | Cash Collateral Received/Posted |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |
Interest rate derivative assets with institutional counterparties | $ | 17,439 |  |  |  |  |  |  | $ | (500) |  |  | $ | (16,939) |  |  | $ | — |
Interest rate derivative liabilities with institutional counterparties | $ | 500 |  |  |  |  |  |  | $ | (500) |  |  | $ | — |  |  | $ | — |
Summary of Offsetting of Financial Liabilities and Derivative Liabilities | The following tables present derivative instruments that are subject to enforceable master netting arrangements. Customers’ interest rate swaps and interest rate caps with institutional counterparties are subject to master netting arrangements and are included in the tables below. Interest rate swaps and interest rate caps with commercial banking customers are not subject to master netting arrangements and are excluded from the tables below. Customers has not made a policy election to offset its derivative positions.
| Gross Amounts Recognized on the Consolidated Balance Sheet |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheet |  | Net Amount
(amounts in thousands) | Financial Instruments |  | Cash Collateral Received/Posted |
June 30, 2024 |  |  |  |  |  |  |  |  |  |  |
Interest rate derivative assets with institutional counterparties | $ | 19,876 |  |  |  |  |  |  | $ | (511) |  |  | $ | (19,365) |  |  | $ | — |
Interest rate derivative liabilities with institutional counterparties | $ | 511 |  |  |  |  |  |  | $ | (511) |  |  | $ | — |  |  | $ | — |
| Gross Amounts Recognized on the Consolidated Balance Sheet |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheet |  | Net Amount
(amounts in thousands) | Financial Instruments |  | Cash Collateral Received/Posted |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |
Interest rate derivative assets with institutional counterparties | $ | 17,439 |  |  |  |  |  |  | $ | (500) |  |  | $ | (16,939) |  |  | $ | — |
Interest rate derivative liabilities with institutional counterparties | $ | 500 |  |  |  |  |  |  | $ | (500) |  |  | $ | — |  |  | $ | — |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial assets that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483466/210-20-50-4 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483466/210-20-50-3 + Details
Name: | us-gaap_OffsettingAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial liabilities that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483466/210-20-50-4 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483466/210-20-50-3 + Details
Name: | us-gaap_OffsettingLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative assets at fair value. + References No definition available. + Details
Name: | us-gaap_ScheduleOfDerivativeAssetsAtFairValueTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: 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 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration