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 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)	March 31, 2023		December 31, 2022		March 31, 2023		December 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 Instruments	March 31, 2023		March 31, 2022
Gain (loss) on fair value hedging relationships:
Hedged items	Interest Income	$	11,921	$	(33,924)
Derivatives designated as hedging instruments	Interest 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 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	$	52,195	$	300,000	$	24
Total derivative designated as hedging instruments	900,000		52,195		300,000		24
Derivative instruments not designated as hedging instruments:
Foreign exchange contracts	1,913		37		2,197		8
Interest rate swaps contracts	110,599		10,067		110,599		10,068
Equity warrants	—		412		—		—
Total derivative not designated as hedging instruments	112,512		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 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 swaps 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.

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 Instruments	March 31, 2023		March 31, 2022
Foreign exchange contracts	Other income	$	220	$	46
Interest rate products	Other income	—		1
Equity warrants	Other income	(251)		19
Total		$	(31)	$	66