XML 40 R30.htm IDEA: XBRL DOCUMENT v3.25.3
Derivative Financial Instruments and Hedging Activities (Tables)
 9 Months Ended
Sep. 30, 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
September 30, 2025December 31, 2024September 30, 2025December 31, 2024
Securities AFS (1) (3)
$368,356 $903,168 $1,174 $16,617 
Loans (1) (3)
244,309 265,845 43 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 September 30, 2025 and December 31, 2024, the amortized cost basis of the closed MBS portfolio used in these hedging relationships was $309.2 million and $558.5 million, respectively, the amount of the designated hedged items were $201.0 million and $134.0 million, respectively, and the cumulative amount of fair value hedging adjustments associated with these MBS hedging relationships was a gain of $610,000 and $1.1 million, respectively. As of September 30, 2025 and December 31, 2024, the amortized cost basis of the closed loan portfolio used in these hedging relationships was $244.3 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 $43,000 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 $769,000 and a loss of $3.1 million, respectively, at September 30, 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):
September 30, 2025December 31, 2024
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$860,000 $4,542 $3,684 $790,000 $12,625 $1,078 
Swaps-Fair Value Hedge-Financial institution counterparties412,225 1,157 229 602,950 18,331 217 
Derivatives designated as non-hedging instruments
Interest rate contracts:
Swaps-Financial institution counterparties637,248 13,459 7,129 408,749 21,534 1,321 
Swaps-Customer counterparties637,248 7,129 13,459 408,749 1,321 21,534 
Gross derivatives26,287 24,501 53,811 24,150 
Offsetting derivative assets/liabilities(11,042)(11,042)(2,616)(2,616)
Cash collateral received/posted(8,116)— (49,874)— 
Net derivatives included in the consolidated balance sheets (2)
$7,129 $13,459 $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 September 30, 2025, we had no credit exposure related to interest rate swaps with financial institutions and $7.1 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 September 30, 2025 and December 31, 2024:
September 30, 2025December 31, 2024
Weighted AverageWeighted Average
Notional AmountRemaining Maturity
 (in years)		Receive
Rate
Pay
Rate
Notional AmountRemaining Maturity
 (in years)		Receive
Rate		Pay
Rate
Swaps-Cash Flow hedge
Financial institution counterparties$860,000 1.54.30 %3.20 %$790,000 1.64.60 %2.62 %
Swaps-Fair Value hedge
Financial institution counterparties412,225 1.44.33 %3.51 %602,950 3.04.76 %3.33 %
Swaps-Non-hedging
Financial institution counterparties637,248 4.64.36 %3.51 %408,749 5.44.65 %3.39 %
Customer counterparties637,248 4.63.51 %4.36 %408,749 5.43.39 %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
September 30,		Nine Months Ended
September 30,
 2025202420252024
Derivatives designated as hedging instruments
Swaps-Cash Flow hedge
Gain (loss) included in interest expense on deposits$1,476 $3,587 $4,126 $11,436 
Gain (loss) included in interest expense on FHLB borrowings512 2,101 2,301 6,676 
1,988 5,688 6,427 18,112 
Swaps-Fair Value hedge
Gain (loss) included in interest income on tax-exempt investment securities926 2,142 3,052 7,245 
Gain (loss) included in interest income on MBS392 488 965 754 
Gain (loss) included in interest income on loans268 504 814 591 
Derivatives designated as non-hedging instruments
Swaps-Non-hedging
Other noninterest income741 — 1,566 53