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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

9 Months Ended

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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