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Derivative Financial Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location
The following table presents the amounts recorded in the consolidated balance sheets related to the cumulative adjustments for fair value hedges (in thousands):
Amortized Cost of Hedged Assets (2)
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of the Hedged Items
June 30, 2024December 31, 2023June 30, 2024December 31, 2023
Securities AFS (1)
$1,049,861 $487,486 $18,684 $13,642 
Loans (1)
282,631 — 437 — 
1) Amounts include the amortized cost basis of closed portfolios used to designate hedging relationships under the portfolio layer method. The hedged item is a layer of the closed portfolio which is expected to be remaining at the end of the hedging relationship. As of June 30, 2024, the amortized cost basis of the closed MBS portfolio used in these hedging relationships was $658.8 million, the cumulative amount of fair value hedging adjustments associated with these MBS hedging relationships was a loss of $787,000, and the amount of the designated hedged items were $201.0 million. As of June 30, 2024, the amortized cost basis of the closed loan portfolio used in these hedging relationships was $282.6 million, the cumulative amount of fair value hedging adjustments associated with these loan hedging relationships was a gain of $437,000, and the amount of the designated hedged items were $155.0 million.
2) Excludes fair value hedging adjustments.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following tables present the notional and estimated fair value amount of derivative positions outstanding (in thousands):
June 30, 2024December 31, 2023
Estimated Fair ValueEstimated Fair Value
Notional
Amount (1)
Asset DerivativeLiability Derivative
Notional
Amount (1)
Asset DerivativeLiability Derivative
Derivatives designated as hedging instruments
Interest rate contracts:
Swaps-Cash Flow Hedge-Financial institution counterparties$940,000 $24,042 $988 $1,010,000 $24,223 $6,910 
Swaps-Fair Value Hedge-Financial institution counterparties722,090 19,860 843 453,440 13,658 16 
Derivatives designated as non-hedging instruments
Interest rate contracts:
Swaps-Financial institution counterparties243,673 22,142 — 248,073 18,249 509 
Swaps-Customer counterparties243,673 — 22,142 248,073 509 18,249 
Gross derivatives66,044 23,973 56,639 25,684 
Offsetting derivative assets/liabilities(1,831)(1,831)(7,435)(7,435)
Cash collateral received/posted(64,171)— (46,760)— 
Net derivatives included in the consolidated balance sheets (2)
$42 $22,142 $2,444 $18,249 
(1)    Notional amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the consolidated balance sheets.
(2)    Net derivative assets are included in other assets and net derivative liabilities are included in other liabilities on the consolidated balance sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and our credit risk. At June 30, 2024, we had $42,000 credit exposure related to interest rate swaps with financial institutions and none related to interest rate swaps with customers. At December 31, 2023, we had $1.9 million credit exposure related to interest rate swaps with financial institutions and $509,000 related to interest rate swaps with customers. The credit risk associated with customer transactions is partially mitigated as these are generally secured by the non-cash collateral securing the underlying transaction being hedged.
Weighted Average Maturity And Interest Rates On Risk Management Interest Rate Swaps
The summarized expected weighted average remaining maturity of the notional amount of interest rate swaps and the weighted average interest rates associated with the amounts expected to be received or paid on interest rate swap agreements are presented below (dollars in thousands). Variable rates received on fixed pay swaps are based on overnight SOFR rates in effect at June 30, 2024 and December 31, 2023:
June 30, 2024December 31, 2023
Weighted AverageWeighted Average
Notional AmountRemaining Maturity
 (in years)		Receive Rate
Pay
Rate
Notional AmountRemaining Maturity
 (in years)		Receive RatePay
Rate
Swaps-Cash Flow hedge
Financial institution counterparties$940,000 2.15.41 %2.94 %$1,010,000 2.35.44 %2.65 %
Swaps-Fair Value hedge
Financial institution counterparties722,090 4.25.35 %3.72 %453,440 5.45.37 %3.13 %
Swaps-Non-hedging
Financial institution counterparties243,673 6.95.81 %2.87 %248,073 7.45.84 %2.88 %
Customer counterparties243,673 6.92.87 %5.81 %248,073 7.42.88 %5.84 %
Derivative Instruments, Gain (Loss)
The following table presents amounts included in the consolidated statements of income related to interest rate swap agreements (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Derivatives designated as hedging instruments
Swaps-Cash Flow hedge
Gain (loss) included in interest expense on deposits$3,738 $3,390 $7,849 $6,461 
Gain (loss) included in interest expense on FHLB borrowings2,044 1,868 4,575 3,769 
Gain (loss) included in interest expense on other borrowings— 796 — 932 
5,782 6,054 12,424 11,162 
Swaps-Fair Value hedge
Gain (loss) included in interest income on tax-exempt investment securities2,481 3,228 5,103 5,678 
Gain (loss) included in interest income on MBS266 — 266 — 
Gain (loss) included in interest income on loans87 — 87 — 
Derivatives designated as non-hedging instruments
Swaps-Non-hedging
Other noninterest income53 — 53 160