Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2024

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, 2024		December 31, 2023		March 31, 2024		December 31, 2023
Loans held for investment (1)	$	1,317,676	$	1,320,449	$	(32,324)	$	(29,551)
Total	$	1,317,676	$	1,320,449	$	(32,324)	$	(29,551)

______________________________

(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, 2024 and December 31, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $3.19 billion and $3.25 billion, respectively, the cumulative basis adjustments associated with these hedging relationships was $(32.3) million and $(29.6) million, respectively, and the amounts of the designated hedged items were $1.35 billion and $1.35 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, 2024		March 31, 2023
Gain (loss) on fair value hedging relationships:
Hedged items	Interest Income	$	(2,773)	$	11,921
Derivatives designated as hedging instruments	Interest Income	10,016		(3,586)

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, 2024
	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	$	34,461	$	450,000	$	461
Total derivative designated as hedging instruments	900,000		34,461		450,000		461
Derivative instruments not designated as hedging instruments:
Foreign exchange contracts	475		8		56		—
Interest rate swaps contracts	102,428		11,899		102,428		11,908
Total derivative not designated as hedging instruments	102,903		11,907		102,484		11,908
Total derivatives	$	1,002,903	46,368		$	552,484	12,369
Netting adjustments - cleared positions (1)			39,872				350
Total derivatives in the Statement of Financial Condition			$	6,496			$	12,019

______________________________

(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, 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	$	600,000	$	34,541	$	750,000	$	3,184
Total derivative designated as hedging instruments	600,000		34,541		750,000		3,184
Derivative instruments not designated as hedging instruments:
Foreign exchange contracts	19		1		410		10
Interest rate swaps contracts	103,954		10,397		103,954		10,409
Total derivative not designated as hedging instruments	103,973		10,398		104,364		10,419
Total derivatives	$	703,973	$	44,939	$	854,364	$	13,603
Netting adjustments - cleared positions (1)			39,295				2,888
Total derivatives in the Statement of Financial Condition			$	5,644			$	10,715

______________________________

(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, 2024		March 31, 2023
Foreign exchange contracts	Other income	$	145	$	220
Interest rate products	Other income	2		—
Equity warrants	Other income	—		(251)
Total		$	147	$	(31)