Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional and Gross Fair Value Amounts of Derivatives used for Hedging

The table below presents the notional and gross fair value amounts of the Company’s derivatives used for hedging as of September 30, 2023:

	Notional		Gross Derivative Asset Fair Value (1)
Derivatives used for hedging:
Interest rate swaps	$	1,500,000	$	3,483

(1)    Recorded in “Other assets” on the Balance Sheet.

Schedule of Gains (Losses) Related to Fair Value Hedges

The following table summarizes the gains (losses) recognized on the Company’s fair value hedges for both the three and nine months ended September 30, 2023:

Gains (losses) recognized on:
Hedged item	$	(3,020)
Derivatives used for hedging	3,483
Interest settlement on derivative (1)	883
Total gains on fair value hedges (2)	$	1,346

(1)    Includes accrued interest receivable and accrued interest payable.

(2)    Recorded in “Interest and fees on loans held for investment at amortized cost” on the Income Statement.

Schedule of Cumulative Basis Adjustments for Fair Value Hedges

The following table presents the cumulative basis adjustments for fair value hedges as of September 30, 2023:

Balance Sheet Line Item	Carrying Amount of Closed Portfolio (1)		Cumulative Fair Value Adjustment to Hedged Item
Loans and leases held for investment at amortized cost	$	3,586,394	$	(3,020)

(1)    Represents the amortized cost of the total closed portfolio of loans designated in a portfolio method hedge relationship in which the hedged item is a stated layer that is expected to be remaining at the end of the hedging relationship. At September 30, 2023, the amortized cost of loans designated as the hedged item in the portfolio layer hedging relationship was $1.5 billion.