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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended
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Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Interest Rate Swap Agreements and Non-Hedging Derivative Assets and Liabilities | Information about derivative assets and liabilities at September 30, 2024, follows:
|  |  | Weighted |  | Weighted Average Rate |  | Estimated
| Notional |  | Average |  |  |  | Contract |  | Fair Value
| Amount |  | Maturity |  | Received |  | pay rate |  | Asset (Liability)
| (In thousands) |  | (In years) |  |  |  |  |  | (In thousands)
Cash flow hedges: |  |  |  |  |  |  |  |  |
Interest rate swaps on commercial loans (1) | $ | 600,000 |  |  | 1.1 |  | 3.64 | % |  | 5.15 | % |  | $ | 1,015 |
Interest rate collars on commercial loans | 200,000 |  |  | 1.8 |  |  |  |  |  | 1,116 |
Total cash flow hedges | 800,000 |  |  |  |  |  |  |  |  | 2,131 |
Economic hedges: |  |  |  |  |  |  |  |  |
Interest rate swap on tax advantaged economic development bond | $ | 5,528 |  |  | 5.2 |  | 5.70 | % |  | 5.09 | % |  | $ | (185) |
Interest rate swaps on loans with commercial loan customers | 1,802,749 |  |  | 4.6 |  | 4.60 | % |  | 6.10 | % |  | (29,675) |
Offsetting interest rate swaps on loans with commercial loan customers (1) | 1,802,749 |  |  | 4.6 |  | 6.10 | % |  | 4.60 | % |  | 8,595 |
Risk participation agreements with dealer banks | 343,673 |  |  | 5.3 |  |  |  |  |  | 247 |
Forward sale commitments | 5,536 |  |  | 0.2 |  |  |  |  |  | 52 |
Total economic hedges | 3,960,235 |  |  |  |  |  |  |  |  | (20,966) |
Non-hedging derivatives: |  |  |  |  |  |  |  |  |
Commitments to lend | 24,185 |  |  | 0.2 |  |  |  |  |  | 165 |
Total non-hedging derivatives | 24,185 |  |  |  |  |  |  |  |  | 165 |
Total | $ | 4,784,420 |  |  |  |  |  |  |  |  | $ | (18,670) |
(1) Fair value estimates included the impact of $19.4 million settled to market contract agreements. Information about derivative assets and liabilities at December 31, 2023, follows:
|  |  | Weighted |  | Weighted Average Rate |  | Estimated
| Notional |  | Average |  |  |  | Contract |  | Fair Value
| Amount |  | Maturity |  | Received |  | pay rate |  | Asset (Liability)
| (In thousands) |  | (In years) |  |  |  |  |  | (In thousands)
Cash flow hedges: |  |  |  |  |  |  |  |  |
Interest rate swaps on commercial loans | $ | 600,000 |  |  | 1.9 |  | 3.64 | % |  | 5.35 | % |  | $ | — |
Interest rate collars on commercial loans | 200,000 |  |  | 2.5 |  |  |  |  |  | 1,658 |
| 800,000 |  |  |  |  |  |  |  |  | 1,658 |
Economic hedges: |  |  |  |  |  |  |  |  |
Interest rate swap on tax advantaged economic development bond | $ | 6,202 |  |  | 5.9 |  | 5.82 | % |  | 5.09 | % |  | $ | (172) |
Interest rate swaps on loans with commercial loan customers | 1,795,562 |  |  | 4.9 |  | 4.36 | % |  | 6.27 | % |  | (63,865) |
Offsetting interest rate swaps on loans with commercial loan customers (1) | 1,795,562 |  |  | 4.9 |  | 6.27 | % |  | 4.36 | % |  | 32,053 |
Risk participation agreements with dealer banks | 376,553 |  |  | 5.5 |  |  |  |  |  | (18) |
Forward sale commitments | 2,207 |  |  | 0.2 |  |  |  |  |  | 21 |
Total economic hedges | 3,976,086 |  |  |  |  |  |  |  |  | (31,981) |
Non-hedging derivatives: |  |  |  |  |  |  |  |  |
Commitments to lend | 11,104 |  |  | 0.2 |  |  |  |  |  | 34 |
Total non-hedging derivatives | 11,104 |  |  |  |  |  |  |  |  | 34 |
Total | $ | 4,787,190 |  |  |  |  |  |  |  |  | $ | (30,289) |
(1) Fair value estimates included the impact of $26.7 million settled to market contract agreements.
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | Amounts included in the Consolidated Statements of Income and in the other comprehensive income section of the Consolidated Statements of Comprehensive Income/(Loss) (related to interest rate derivatives designated as hedges of cash flows), were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) | 2024 |  | 2023 |  | 2024 |  | 2023
Interest rate swaps on commercial loans: |  |  |  |  |  |  |
Unrealized gain/(loss) recognized in accumulated other comprehensive loss | $ | 9,190 |  |  | $ | (3,118) |  |  | $ | 3,776 |  |  | $ | (9,545) |
Less: Reclassification of unrealized (loss) from accumulated other comprehensive loss to interest expense | (159) |  |  | (159) |  |  | (473) |  |  | (473) |
Net tax benefit on items recognized in accumulated other comprehensive income | (2,542) |  |  | 794 |  |  | (1,155) |  |  | 2,435 |
Other comprehensive gain/(loss) recorded in accumulated other comprehensive income, net of reclassification adjustments and tax effects | $ | 6,807 |  |  | $ | (2,165) |  |  | $ | 3,094 |  |  | $ | (6,637) |
Net interest expense recognized on hedged commercial loans | $ | 2,687 |  |  | $ | 2,621 |  |  | $ | 8,135 |  |  | $ | 6,262 |
Schedule of Amounts Included in the Consolidated Statements of Income Related to Economic Hedges and Non-Hedging Derivatives | Amounts included in the Consolidated Statements of Income related to economic hedges and non-hedging derivatives were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) | 2024 |  | 2023 |  | 2024 |  | 2023
Economic hedges |  |  |  |  |  |  |
Interest rate swap on industrial revenue bond: |  |  |  |  |  |  |
Unrealized (loss)/gain recognized in other non-interest income | $ | (124) |  |  | $ | 88 |  |  | $ | (13) |  |  | $ | 163 |
Interest rate swaps on loans with commercial loan customers: |  |  |  |  |  |  |
Unrealized gain/(loss) recognized in other non-interest income | 53,303 |  |  | (24,728) |  |  | 34,124 |  |  | (21,934) |
Favorable change in credit valuation adjustment recognized in other non-interest income | — |  |  | — |  |  | — |  |  | — |
Offsetting interest rate swaps on loans with commercial loan customers: |  |  |  |  |  |  |
Unrealized (loss)/gain recognized in other non-interest income | (53,303) |  |  | 24,728 |  |  | (34,124) |  |  | 21,934 |
Risk participation agreements: |  |  |  |  |  |  |
Unrealized gain recognized in other non-interest income | 120 |  |  | 65 |  |  | 264 |  |  | 73 |
Forward commitments: |  |  |  |  |  |  |
Unrealized gain/(loss) recognized in other non-interest income | 20 |  |  | (53) |  |  | 31 |  |  | 2 |
Non-hedging derivatives |  |  |  |  |  |  |
Commitments to lend |  |  |  |  |  |  |
Unrealized gain/(loss) recognized in other non-interest income | $ | 64 |  |  | $ | (46) |  |  | $ | 131 |  |  | $ | (26) |
Realized gain in other non-interest income | 350 |  |  | 210 |  |  | 1,909 |  |  | 304 |
Schedule of Assets Subject to an Enforceable Master Netting Arrangement | Offsetting of Financial Assets and Derivative Assets
|  | Gross Amounts of |  | Gross Amounts Offset in the |  | Net Amounts of Assets Presented in the |  | Gross Amounts Not Offset in the Consolidated Balance Sheets |  |
|  | Recognized |  | Consolidated |  | Consolidated |  | Financial |  | Cash |  |
(In thousands) |  | Assets |  | Balance Sheets |  | Balance Sheets |  | Instruments |  | Collateral Received |  | Net Amount
September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Swap Agreements: |  |  |  |  |  |  |  |  |  |  |  |
Institutional counterparties |  | $ | 49,312 |  |  | $ | (21,080) |  |  | $ | 28,232 |  |  | $ | — |  |  | $ | (10,620) |  |  | $ | 17,612 |
Commercial counterparties |  | 16,939 |  |  | — |  |  | 16,939 |  |  | — |  |  | — |  |  | 16,939 |
Total |  | $ | 66,251 |  |  | $ | (21,080) |  |  | $ | 45,171 |  |  | $ | — |  |  | $ | (10,620) |  |  | $ | 34,551 |
Offsetting of Financial Assets and Derivative Assets
|  | Gross Amounts of |  | Gross Amounts Offset in the |  | Net Amounts of Assets Presented in the |  | Gross Amounts Not Offset in the Consolidated Balance Sheets |  |
|  | Recognized |  | Consolidated |  | Consolidated |  | Financial |  | Cash |  |
(In thousands) |  | Assets |  | Balance Sheets |  | Balance Sheets |  | Instruments |  | Collateral Received |  | Net Amount
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Swap Agreements: |  |  |  |  |  |  |  |  |  |  |  |
Institutional counterparties |  | $ | 71,579 |  |  | $ | (31,812) |  |  | $ | 39,767 |  |  | $ | — |  |  | $ | — |  |  | $ | 39,767 |
Commercial counterparties |  | 5,992 |  |  | — |  |  | 5,992 |  |  | — |  |  | — |  |  | 5,992 |
Total |  | $ | 77,571 |  |  | $ | (31,812) |  |  | $ | 45,759 |  |  | $ | — |  |  | $ | — |  |  | $ | 45,759 |
Schedule of Liabilities Subject to an Enforceable Master Netting Arrangement | Offsetting of Financial Liabilities and Derivative Liabilities
|  | Gross Amounts of |  | Gross Amounts Offset in the |  | Net Amounts of Liabilities Presented in the |  | Gross Amounts Not Offset in the Consolidated Balance Sheets |  |
|  | Recognized |  | Consolidated |  | Consolidated |  | Financial |  | Cash |  |
(In thousands) |  | Liabilities |  | Balance Sheets |  | Balance Sheets |  | Instruments |  | Collateral Pledged |  | Net Amount
September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Swap Agreements: |  |  |  |  |  |  |  |  |  |  |  |
Institutional counterparties |  | $ | (18,973) |  |  | $ | 1,714 |  |  | $ | (17,259) |  |  | $ | 9,208 |  |  | $ | — |  |  | $ | (8,051) |
Commercial counterparties |  | (46,614) |  |  | — |  |  | (46,614) |  |  | — |  |  | — |  |  | (46,614) |
Total |  | $ | (65,587) |  |  | $ | 1,714 |  |  | $ | (63,873) |  |  | $ | 9,208 |  |  | $ | — |  |  | $ | (54,665) |
Offsetting of Financial Liabilities and Derivative Liabilities
|  | Gross Amounts of |  | Gross Amounts Offset in the |  | Net Amounts of Liabilities Presented in the |  | Gross Amounts Not Offset in the Consolidated Balance Sheets |  |
|  | Recognized |  | Consolidated |  | Consolidated |  | Financial |  | Cash |  |
(In thousands) |  | Liabilities |  | Balance Sheets |  | Balance Sheets |  | Instruments |  | Collateral Pledged |  | Net Amount
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Interest Rate Swap Agreements: |  |  |  |  |  |  |  |  |  |  |  |
Institutional counterparties |  | $ | (11,277) |  |  | $ | 5,142 |  |  | $ | (6,135) |  |  | $ | 9,633 |  |  | $ | — |  |  | $ | 3,498 |
Commercial counterparties |  | (69,796) |  |  | — |  |  | (69,796) |  |  | — |  |  | — |  |  | (69,796) |
Total |  | $ | (81,073) |  |  | $ | 5,142 |  |  | $ | (75,931) |  |  | $ | 9,633 |  |  | $ | — |  |  | $ | (66,298) |

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