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Derivative Instruments (Tables)
3 Months Ended
Mar. 31, 2023
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 IncludedCarrying Amount of the Hedged AssetsCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets
(Dollars in thousands)March 31, 2023December 31, 2022March 31, 2023December 31, 2022
Loans held for investment (1)
$1,149,995 $1,138,074 $(50,005)$(61,926)
Total$1,149,995 $1,138,074 $(50,005)$(61,926)
______________________________
(1) These amounts were included in the amortized cost basis of closed portfolios of loans held for investment used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. At March 31, 2023 and December 31, 2022, the amortized cost basis of the closed portfolios used in these hedging relationships was $3.27 billion and $3.35 billion, respectively, the cumulative basis adjustments associated with these hedging relationships was $(50.0) million and $(61.9) 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:
Three Months Ended
(Dollars in thousands)Location of Gain (Loss) Recognized in Income on Derivative InstrumentsMarch 31, 2023March 31, 2022
Gain (loss) on fair value hedging relationships:
Hedged itemsInterest Income$11,921 $(33,924)
Derivatives designated as hedging instrumentsInterest Income(3,586)32,257 
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:
March 31, 2023
Derivative AssetsDerivative Liabilities
(Dollars in thousands)NotionalFair ValueNotionalFair Value
Derivative instruments designated as hedging instruments:
Fair value hedge - interest rate swap contracts$900,000 $52,195 $300,000 $24 
Total derivative designated as hedging instruments900,000 52,195 300,000 24 
Derivative instruments not designated as hedging instruments:
Foreign exchange contracts1,913 37 2,197 
Interest rate swaps contracts110,599 10,067 110,599 10,068 
Equity warrants— 412 — — 
Total derivative not designated as hedging instruments112,512 10,516 112,796 10,076 
Total derivatives$1,012,512 62,711 $412,796 10,100 
Netting adjustments - cleared positions (1)
56,632 477 
Total derivatives in the Balance Sheet$6,079 $10,577 
______________________________
(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, 2022
Derivative AssetsDerivative Liabilities
(Dollars in thousands)NotionalFair ValueNotionalFair 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 instruments900,000 63,710 300,000 72 
Derivative instruments not designated as hedging instruments:
Foreign exchange contracts22 143 
Interest rate swaps contracts112,124 12,524 112,124 12,525 
Equity warrants— 1,894 — — 
Total derivative not designated as hedging instruments112,146 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.
The following table summarizes the effect of the derivatives not designated as hedging instruments in the consolidated statements of income.
(Dollars in thousands)Three Months Ended
Derivatives Not Designated as Hedging Instruments:Location of Gain (Loss) Recognized in Income on Derivative InstrumentsMarch 31, 2023March 31, 2022
Foreign exchange contractsOther income$220 $46 
Interest rate productsOther income— 
Equity warrantsOther income(251)19 
Total$(31)$66