Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Condition and Statements of Income Related to Cumulative Basis Adjustment for Fair Value Hedges

The following amounts were recorded on the consolidated statement of financial condition related to cumulative basis adjustment for fair value hedges as of the dates indicated:

Line Item in the Statement of Financial Position in Which the Hedged Item is Included	Carrying Amount of the Hedged Assets				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets
(Dollars in thousands)	December 31, 2022		December 31, 2021		December 31, 2022		December 31, 2021
Loans held for investment(1)	$	1,138,074	$	1,194,702	$	(61,926)	$	(5,298)
Total	$	1,138,074	$	1,194,702	$	(61,926)	$	(5,298)

______________________________

(1) These amounts were included in the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At December 31, 2022 and December 31, 2021, the amortized cost basis of the closed portfolios used in these hedging relationships was $3.35 billion and 3.61 billion, respectively; the cumulative basis adjustments associated with these hedging relationships was $(61.9) million and $(5.3) million, respectively; and the amounts of the designated hedged items were $1.20 billion and $1.20 billion, respectively.

The following table presents the effect of fair value hedge accounting on the consolidated statements of income:

		For the Year Ended December 31,
(Dollars in thousands)	Location of Gain (Loss) Recognized in Income on Derivative Instruments	2022		2021
Gain (loss) on fair value hedging relationships:
Hedged items - loans	Interest Income	$	(56,628)	(5,298)
Interest rate swap contracts	Interest Income	68,322		4,383

Schedule of Derivative Instruments

The following tables summarize the Company’s derivative instruments included in “other assets” and “other liabilities” in the consolidated statements of financial condition as of the dates indicated:

	December 31, 2022
	Derivative Assets				Derivative Liabilities
(Dollars in thousands)	Notional		Fair Value		Notional		Fair Value
Derivative instruments designated as hedging instruments:
Fair value hedge - interest rate swap contracts	$	900,000	$	63,710	$	300,000	$	72
Total derivative designated as hedging instruments	900,000		63,710		300,000		72
Derivative instruments not designated as hedging instruments:
Foreign exchange contracts	22		1		143		1
Interest rate swap contracts	112,124		12,524		112,124		12,525
Equity warrants	—		1,894		—		—
Total derivative not designated as hedging instruments	112,146		14,419		112,267		12,526
Total derivatives	$	1,012,146	$	78,129	$	412,267	$	12,598
Netting adjustments - cleared positions (1)			69,181				67
Total derivatives in the Balance Sheet			$	8,948			$	12,531

______________________________

(1) Netting adjustments represents the variation margin payments that are considered legal settlements of derivative exposure and applied to net the fair value of the respective derivative contracts in accordance with the applicable accounting guidance on the settle-to-market rule for cleared derivatives.

	December 31, 2021
	Derivative Assets				Derivative Liabilities
(Dollars in thousands)	Notional		Fair Value		Notional		Fair Value
Derivative instruments designated as hedging instruments:
Fair value hedge - interest rate swap contracts	$	1,100,000	$	4,874	$	100,000	$	33
Total derivative designated as hedging instruments	1,100,000		4,874		100,000		33
Derivative instruments not designated as hedging instruments:
Interest rate swap contracts	132,056		5,226		132,056		5,230
Equity warrants	—		1,889		—		—
Total derivative not designated as hedging instruments	132,056		7,115		132,056		5,230
Total derivatives	$	1,232,056	$	11,989	$	232,056	$	5,263

The following table summarizes the effect of the derivative financial instruments in the consolidated statements of income.

(Dollars in thousands)		For the Year Ended December 31,
Derivative Not Designated as Hedging Instruments:	Location of Gain Recognized in Income on Derivative Instruments	2022		2021		2020
Foreign exchange contracts	Other income	$	490	$	82	$	—
Interest rate products	Other income	4		9		297
Other contracts	Other income	—		—		197
Equity warrants	Other income	4		(24)		(42)
Total		$	498	$	(15)	$	452