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Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended
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Jun. 30, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items] |
Summary of Derivatives Outstanding | The following table summarizes the derivatives outstanding:
(In thousands) |  | Notional Amount |  | Balance Sheet Location |  | Fair Value |  |  | Notional Amount |  | Balance Sheet Location |  | Fair Value
As of June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives |  | $ | 1,306,215 |  | Other assets |  | $ | 78,213 |  |  | $ | 1,306,215 |  | Other liabilities |  | $ | 78,213
Risk participation agreements |  |  | 71,741 |  | Other assets |  |  | 172 |  |  |  | 38,507 |  | Other liabilities |  |  | 80
Total derivatives not designated as hedging instruments |  |  |  |  |  |  | $ | 78,385 |  |  |  |  |  |  |  | $ | 78,293
Netting adjustments(1) |  |  |  |  |  |  |  | (46) |  |  |  |  |  |  |  |  | 4,096
Net derivatives in the balance sheet |  |  |  |  |  |  | $ | 78,431 |  |  |  |  |  |  |  | $ | 74,197
Derivatives not offset on the balance sheet |  |  |  |  |  |  | $ | 3,745 |  |  |  |  |  |  |  | $ | 3,745
Cash collateral(2) |  |  |  |  |  |  |  | - |  |  |  |  |  |  |  |  | 65,480
Net derivative amounts |  |  |  |  |  |  | $ | 74,686 |  |  |  |  |  |  |  | $ | 4,972
As of December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives |  | $ | - |  | Other assets |  | $ | - |  |  | $ | 25,000 |  | Other liabilities |  | $ | 34
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives |  | $ | 1,223,584 |  | Other assets |  | $ | 108,487 |  |  | $ | 1,223,584 |  | Other liabilities |  | $ | 108,487
Risk participation agreements |  |  | 72,528 |  | Other assets |  |  | 292 |  |  |  | 39,785 |  | Other liabilities |  |  | 125
Total derivatives not designated as hedging instruments |  |  |  |  |  |  | $ | 108,779 |  |  |  |  |  |  |  | $ | 108,612
Cash collateral(2) |  |  |  |  |  |  |  | - |  |  |  |  |  |  |  |  | 107,350
Net derivative amounts |  |  |  |  |  |  | $ | 108,779 |  |  |  |  |  |  |  | $ | 1,262
(1) Netting adjustments represents the amounts recorded to convert derivatives assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance on the settle to market rules for cleared derivatives. The CME legally characterizes the variation margin posted between counterparties as settlements of the outstanding derivative contracts instead of cash collateral. Company began to clear certain derivative transactions through the CME in 2021. (2) Cash collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The other collateral consists of securities and is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the other collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above.
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] |
Derivative Instruments and Hedging Activities Disclosures [Line Items] |
Effect of Derivatives on AOCI and on Consolidated Statement of Income | The following table indicates the effect of cash flow hedge accounting on AOCI and on the unaudited interim consolidated statement of income:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
(In thousands) |  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives - included component |  |  |  |  |  |  |  |  |  |  |  |
Amount of (loss) recognized in other comprehensive income |  | $ | - |  |  | $ | (19 | ) |  | $ | - |  |  | $ | (274 | )
Amount of loss reclassified from AOCI into interest expense |  |  | - |  |  |  | 81 |  |  |  | 21 |  |  |  | 91 |
Not Designated as Hedging Instrument [Member] |
Derivative Instruments and Hedging Activities Disclosures [Line Items] |
Effect of Derivatives on AOCI and on Consolidated Statement of Income | The following table indicates the gain or loss recognized in income on derivatives not designated as a hedging relationship:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
(In thousands) |  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |
Increase (decrease) in other income |  | $ | 40 |  |  | $ | 4 |  |  | $ | (75 | ) |  | $ | 147 |

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- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5580258-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41620-113959 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5579245-113959 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41638-113959 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41678-113959 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41641-113959 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5579240-113959 + Details
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