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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Assets at Fair Value

As of September 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)						September 30, 2024						December 31, 2023						September 30, 2024						December 31, 2023
AFS debt securities						$	22,500					$	22,500					$	202					$	941
Deposits						1,614,617						300,000						22,191						1,432
FHLB advances						1,200,000						700,000						12,229						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 September 30, 2024 and December 31, 2023.

September 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

$

15,473

Other liabilities

$

21,474

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 nine months ended September 30, 2024 and 2023.

									Amount of Income (Loss) Recognized in Earnings
									Three Months Ended September 30,												Nine Months Ended September 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						$	42,717					$	6,377					$	54,453					$	13,209
Recognized on hedged AFS debt securities			Net interest income						(306)						(196)						(739)						(446)
Recognized on hedged deposits			Net interest income						(23,444)						—						(25,130)						—
Recognized on hedged FHLB advances			Net interest income						(18,967)						(6,181)						(28,584)						(12,763)
Total									$	—					$	—					$	—					$	—
Derivatives not designated as hedging instruments:
Interest rate swaps and caps			Other non-interest income						$	374					$	192					$	1,109					$	332

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
September 30, 2024
Interest rate derivative assets with institutional counterparties			$	10,647																	$	(5,079)					$	(5,568)					$	—
Interest rate derivative liabilities with institutional counterparties			$	5,079																	$	(5,079)					$	—					$	—

			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
September 30, 2024
Interest rate derivative assets with institutional counterparties			$	10,647																	$	(5,079)					$	(5,568)					$	—
Interest rate derivative liabilities with institutional counterparties			$	5,079																	$	(5,079)					$	—					$	—

			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)					$	—					$	—

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