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Derivative Financial Instruments | 12 Months Ended
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Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS As part of the Company’s overall interest rate risk management, the Company enters into derivative instruments, including interest rate swaps, collars, caps, floors, foreign exchange contracts, risk participation agreements, and mortgage banking derivatives. The notional amount does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual agreements. Derivative instruments are recognized on the balance sheet at their fair value and are not reported on a net basis. The tables below present the fair value of the Company’s derivative financial instruments at December 31, 2024 and 2023. The Company’s derivative assets and derivative liabilities are located within other assets and other liabilities, respectively, on the Company’s Consolidated Statements of Financial Condition.
| December 31, 2024
| Notional Amount |  | Fair Value(1)
|  | Other Assets |  | Other Liabilities
| (Dollars in thousands)
Derivatives designated as cash flow hedges |  |  |  |  |
Interest rate swaps | $ | 1,125,000 |  |  | $ | — |  |  | $ | (2,330) |
Interest rate collars | 500,000 |  |  | — |  |  | (1,227) |
Forward interest rate swaps | 200,000 |  |  | — |  |  | (1,474) |
Total | $ | 1,825,000 |  |  | $ | — |  |  | $ | (5,031) |
Derivatives not designated as hedges |  |  |  |  |
Interest rate contracts with correspondent banks | $ | 1,120,217 |  |  | $ | 46,294 |  |  | $ | (1,400) |
Interest rate contracts with customers | 1,120,217 |  |  | 1,400 |  |  | (47,384) |
Foreign exchange contracts with correspondent banks | 16,056 |  |  | 894 |  |  | (1) |
Foreign exchange contracts with customers | 224 |  |  | 6 |  |  | — |
Risk participation agreement | 100,957 |  |  | — |  |  | (15) |
Mortgage banking derivatives | — |  |  | — |  |  | — |
Total | $ | 2,357,671 |  |  | $ | 48,594 |  |  | $ | (48,800) |
__________________________________ (1) The fair values of centrally-cleared derivative contracts are presented net of settled-to-market margin.
| December 31, 2023
| Notional Amount |  | Fair Value(1)
|  | Other Assets |  | Other Liabilities
| (Dollars in thousands)
Derivatives designated as cash flow hedges |  |  |  |  |
Interest rate swaps | $ | 725,000 |  |  | $ | — |  |  | $ | — |
Interest rate collars | 250,000 |  |  | — |  |  | 1,149 |
Forward interest rate swaps | 1,000,000 |  |  | 10,812 |  |  | — |
Forward interest rate collars | 250,000 |  |  | 148 |  |  | — |
Total | $ | 2,225,000 |  |  | $ | 10,960 |  |  | $ | 1,149 |
Derivatives not designated as hedges |  |  |  |  |
Interest rate contracts with correspondent banks | $ | 1,096,292 |  |  | $ | 53,185 |  |  | $ | 1,117 |
Interest rate contracts with customers | 1,096,292 |  |  | 1,117 |  |  | 54,505 |
Foreign exchange contracts with correspondent banks | 10,739 |  |  | 4 |  |  | 202 |
Foreign exchange contracts with customers | 1,744 |  |  | 57 |  |  | — |
Risk participation agreement | 130,365 |  |  | — |  |  | 28 |
Mortgage banking derivatives | 1,377 |  |  | 7 |  |  | 17 |
Total | $ | 2,336,809 |  |  | $ | 54,370 |  |  | $ | 55,869 |
__________________________________ (1) The fair values of centrally-cleared derivative contracts are presented net of settled-to-market margin. Derivatives designated as cash flow hedges The Company’s interest rate contracts designated as cash flow hedges were determined to be fully effective during the periods presented and were hedged to financial instruments tied to term SOFR and federal funds rate. The aggregate fair value of the cash flow hedges are recorded in assets or liabilities on the Consolidated Statements of Financial Condition, with changes in fair value recorded in other comprehensive income on the Consolidated Statements of Comprehensive Income. The gain or loss on derivatives is recorded in AOCI and is subsequently reclassified into interest income and interest expense in the period, during which the hedged forecasted transaction affects earnings. Amounts reported in AOCI related to interest rate agreements will be reclassified to interest income and interest expense as interest payments are received or paid on the Company’s derivatives. The Company expects the hedges to remain fully effective throughout the remaining terms. The Company expects to reclassify, during the next 12 months, approximately $2.2 million, net of taxes, from AOCI as an increase to net interest income, net of a decrease of $1.6 million from terminated swaps. During the year ended December 31, 2024, the Company terminated $400.0 million in notional value of forward-starting received fixed swaps set to mature through July 2027. The swaps were designated as cash flow hedges on the changes in cash flows associated with certain variable rate loans. The termination of the swaps was performed to reduce prolonged exposure to higher interest rates. Prior to the termination of the swaps, the change in value of the swaps was recorded through AOCI. The unamortized fair value adjustments on terminated forward-starting received fixed swaps was $5.8 million in pre-tax losses in AOCI at December 31, 2024, which will be amortized as a reduction to net interest income over an expected period of 2.5 years. The table below presents the gains (losses) on derivative instruments designated as cash flow hedges, that were reclassified from AOCI into earnings for the periods indicated:
Derivative Instruments Designated as Cash Flow Hedges |  | Location of Gain (Loss) Recognized in Income |  | Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
|  |  |  | (Dollars in thousands)
Interest rate contracts |  | Interest income on cash and deposits at other banks |  | $ | — |  |  | $ | — |  |  | $ | 574 |
Interest rate contracts |  | Interest income and fees on loans |  | (6,531) |  |  | (96) |  |  | — |
Interest rate contracts |  | Interest expense on deposits |  | 12,514 |  |  | 11,589 |  |  | — |
Interest rate contracts |  | Interest expense on FHLB and FRB borrowings |  | 5,331 |  |  | 4,836 |  |  | 1,451 |
Total |  |  |  | $ | 11,314 |  |  | $ | 16,329 |  |  | $ | 2,025 |
Total cash held as collateral for interest rate contracts designated as cash flow hedges was $0 at December 31, 2024, and $22.9 million at December 31, 2023. Derivatives not designated as hedges The Company’s derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company offers a loan hedging program to certain loan customers. Through this program, the Company originates a variable rate loan with the customer. The Company and the customer will then enter into a fixed interest rate swap. Simultaneously, an identical offsetting swap is entered into by the Company with a correspondent bank. These “back-to-back” swap arrangements are intended to offset each other and allow the Company to book a variable rate loan, while providing the customer with a contract for fixed interest payments. In these arrangements, the Company’s net cash flow is equal to the interest income received from the variable rate loan originated with the customer. These customer interest rate contracts are not designated as hedging instruments and are recorded at fair value in other assets and other liabilities. The change in fair value is recognized in the Consolidated Statements of Income as other income and fees. The Company offers foreign exchange contracts to customers to purchase and/or sell foreign currencies at set rates in the future. The foreign exchange contracts allow customers to hedge the foreign exchange rate risk of their deposits and loans denominated in foreign currencies. In conjunction with this, the Company enters into offsetting back-to-back contracts with institutional counterparties to hedge the Company’s foreign exchange rate risk. The Company also enters into certain foreign exchange contracts with institutional counterparties, including non-deliverable forward contracts, to manage its foreign exchange rate risk. These foreign exchange contracts are not designated as hedging instruments and are recorded at fair value in other assets and other liabilities. During the years ended December 31, 2024, 2023, and 2022, the changes in fair value on foreign exchange contracts were gains of $1.0 million, losses of $147 thousand, and gain of $6 thousand, respectively, and were recognized in the Consolidated Statements of Income as other income and fees. At December 31, 2024, the Company had risk participation agreements with an outside counterparty for interest rate swaps related to loans in which it is a participant. The risk participation agreements provide credit protection to the financial institution should the borrowers fail to perform on their interest rate derivative contracts. Risk participation agreements are credit derivatives not designated as hedges. Credit derivatives are not speculative and are not used to manage interest rate risk in assets or liabilities. Changes in the fair value of credit derivatives are recognized directly in earnings. The fee received, less the estimate of the loss for credit exposure, is recognized in earnings at the time of the transaction. The Company enters into various stand-alone mortgage-banking derivatives in order to hedge the risk associated with the fluctuation of interest rates. Changes in fair value are recorded as mortgage banking revenue. Residential mortgage loans funded with interest rate lock commitments and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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