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Derivative Financial Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2025

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
						March 31, 2025									December 31, 2024						March 31, 2025						December 31, 2024
Securities AFS (1) (3)						$	746,770								$	903,168					$	8,780					$	16,617
Loans (1) (3)						252,782									265,845						410						1,545

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 March 31, 2025 and December 31, 2024, the amortized cost basis of the closed MBS portfolio used in these hedging relationships was $416.7 million and $558.5 million, respectively, the amount of the designated hedged items were $134.0 million for both periods, and the cumulative amount of fair value hedging adjustments associated with these MBS hedging relationships was a gain of $685,000 and $1.1 million, respectively. As of March 31, 2025 and December 31, 2024, the amortized cost basis of the closed loan portfolio used in these hedging relationships was $252.8 million and $265.8 million, respectively, the amount of the designated hedged items were $155.0 million for both periods, and the cumulative amount of fair value hedging adjustments associated with these loan hedging relationships was a gain of $410,000 and $1.5 million, respectively.

2) Excludes fair value hedging adjustments.

3) Excluded from the table above are the cumulative amount of fair value hedging adjustments for securities AFS and loans for which hedge accounting has been discontinued in the amounts of a loss of $3.4 million and a loss of $3.5 million, respectively, at March 31, 2025, and a loss of $4.8 million and a loss of $3.7 million, respectively, at December 31, 2024.

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):

						March 31, 2025																		December 31, 2024
												Estimated Fair Value																		Estimated Fair Value
						Notional Amount (1)						Asset Derivative						Liability Derivative						Notional Amount (1)						Asset Derivative						Liability Derivative
Derivatives designated as hedging instruments
Interest rate contracts:
Swaps-Cash Flow Hedge-Financial institution counterparties						$	680,000					$	7,741					$	2,428					$	790,000					$	12,625					$	1,078
Swaps-Fair Value Hedge-Financial institution counterparties						601,075						9,267						283						602,950						18,331						217
Derivatives designated as non-hedging instruments
Interest rate contracts:
Swaps-Financial institution counterparties						414,621						17,324						3,138						408,749						21,534						1,321
Swaps-Customer counterparties						414,621						3,138						17,324						408,749						1,321						21,534
Gross derivatives												37,470						23,173												53,811						24,150
Offsetting derivative assets/liabilities												(5,849)						(5,849)												(2,616)						(2,616)
Cash collateral received/posted												(28,483)						—												(49,874)						—
Net derivatives included in the consolidated balance sheets (2)												$	3,138					$	17,324											$	1,321					$	21,534

(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 March 31, 2025, we had no credit exposure related to interest rate swaps with financial institutions and $3.1 million related to interest rate swaps with customers. At December 31, 2024, we had no credit exposure related to interest rate swaps with financial institutions and $1.3 million 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 March 31, 2025 and December 31, 2024:

						March 31, 2025																								December 31, 2024
												Weighted Average																								Weighted Average
						Notional Amount						Remaining Maturity  (in years)						Receive Rate						Pay Rate						Notional Amount						Remaining Maturity  (in years)						Receive Rate						Pay Rate
Swaps-Cash Flow hedge
Financial institution counterparties						$	680,000					1.7						4.40		%				3.10		%				$	790,000					1.6						4.60		%				2.62		%
Swaps-Fair Value hedge
Financial institution counterparties						601,075						2.8						4.36		%				3.32		%				602,950						3.0						4.76		%				3.33		%
Swaps-Non-hedging
Financial institution counterparties						414,621						5.1						4.55		%				3.41		%				408,749						5.4						4.65		%				3.39		%
Customer counterparties						414,621						5.1						3.41		%				4.55		%				408,749						5.4						3.39		%				4.65		%

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 March 31,
			2025						2024
Derivatives designated as hedging instruments
Swaps-Cash Flow hedge
Gain (loss) included in interest expense on deposits			$	1,501					$	4,111
Gain (loss) included in interest expense on FHLB borrowings			1,072						2,531
			2,573						6,642
Swaps-Fair Value hedge
Gain (loss) included in interest income on tax-exempt investment securities			1,050						2,622
Gain (loss) included in interest income on MBS			255						—
Gain (loss) included in interest income on loans			272						—
Derivatives designated as non-hedging instruments
Swaps-Non-hedging
Other noninterest income			93						—

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Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments.

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Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

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Tabular disclosure of derivative instruments (including nonderivative instruments that are designated and qualify as hedging instruments) of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position.

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