Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes

The following tables reflect the Company's derivative positions as of the dates indicated below for interest rate derivatives which qualify as cash flow hedges for accounting purposes:

September 30, 2022
				Weighted Average Rate
	Notional Amount		Average Maturity	Current Rate Paid		Receive Fixed Swap Rate		Fair Value
	(in thousands)		(in years)					(in thousands)
Interest rate swaps on loans	$	1,050,000	3.23	2.72	%	2.66	%	$	(43,365)
				Current Rate Paid		Receive Fixed Swap Rate Cap - Floor
Interest rate collars on loans	400,000		2.52	2.69	%	3.09% - 2.19%		(10,375)
Total	$	1,450,000						$	(53,740)
December 31, 2021
				Weighted Average Rate
	Notional Amount		Average Maturity	Current Rate Received		Pay Fixed Swap Rate		Fair Value
	(in thousands)		(in years)					(in thousands)
Interest rate swaps on borrowings	$	25,000	0.62	0.16	%	1.88	%	$	(294)
				Current Rate Paid		Receive Fixed Swap Rate
Interest rate swaps on loans	550,000		2.58	0.11	%	2.16	%	11,830
				Current Rate Paid		Receive Fixed Swap Rate Cap - Floor
Interest rate collars on loans	400,000		1.66	0.11	%	2.73% - 2.20%		9,383
Total	$	975,000						$	20,919

Summary of customer related derivative positions, not designated as hedging

The following table reflects the Company’s customer related derivative positions as of the dates indicated below for those derivatives not designated as hedging:

		Notional Amount Maturing
	Number of  Positions  (1)	Less than 1 year		Less than 2 years		Less than 3 years		Less than 4 years		Thereafter		Total		Fair Value
	September 30, 2022
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	285	$	82,932	$	98,409	$	259,419	$	173,197	$	953,915	$	1,567,872	$	(127,611)
Pay fixed, receive variable	285	82,932		98,409		259,419		173,197		953,915		1,567,872		127,609
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	62	162,094		13,013		—		—		—		175,107		(15,992)
Buys U.S. currency, sells foreign currency	62	162,094		13,013		—		—		—		175,107		16,079
Risk participation agreements
Participation out	11	2,605		—		24,538		—		72,045		99,188		64
Participation in	7	22,802		16,329		—		—		25,944		65,075		(15)
		Notional Amount Maturing
	Number of  Positions  (1)	Less than 1 year		Less than 2 years		Less than 3 years		Less than 4 years		Thereafter		Total		Fair Value
	December 31, 2021
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	296	$	37,589	$	139,844	$	123,507	$	260,953	$	1,060,276	$	1,622,169	$	55,984
Pay fixed, receive variable	296	37,589		139,844		123,507		260,953		1,060,276		1,622,169		(55,982)
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	52	149,588		8,784		—		—		—		158,372		5,734
Buys U.S. currency, sells foreign currency	52	149,588		8,784		—		—		—		158,372		(5,734)
Risk participation agreements
Participation out	11	—		2,635		7,138		24,539		68,408		102,720		279
Participation in	7	29,972		28,235		—		—		8,339		66,546		(55)

(1)The Company may enter into one dealer swap agreement which offsets multiple commercial borrower swap agreements.

Fair value of derivative financial instruments as well as their classification on the balance sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheet and the potential effect of netting arrangements on its financial position, at the dates indicated:

	Asset Derivatives (1)						Liability Derivatives (2)
	Fair Value at			Fair Value at			Fair Value at			Fair Value at
	September 30 2022			December 31 2021			September 30 2022			December 31 2021
	(Dollars in thousands)
Derivatives designated as hedges
Interest rate derivatives	$	—		$	21,951	(3)	$	53,740	(4)	$	1,032	(4)
Derivatives not designated as hedges
Customer Related Positions
Loan level derivatives	127,625		(3)	68,726		(3)	127,627		(4)	68,724		(4)
Foreign exchange contracts	16,520			6,147			16,433			6,147
Risk participation agreements	64			279			15			55
Mortgage Derivatives
Interest rate lock commitments	6			753			16			—
Forward sale loan commitments	86			56			—			—
Forward sale hedge commitments	73			—			—			57
Total derivatives not designated as hedges	144,374			75,961			144,091			74,983
Total	144,374			97,912			197,831			76,015
Netting Adjustments (5)	(62,614)			(5,727)			35,293			6,769
Net Derivatives on the Balance Sheet	81,760			92,185			162,538			69,246
Financial instruments (6)	17,744			22,378			17,744			22,378
Cash collateral pledged (received)	—			—			—			33,838
Net Derivative Amounts	$	64,016		$	69,807		$	144,794		$	13,030

(1)All asset derivatives are reflected in other assets on the balance sheet.

(2)All liability derivatives are reflected in other liabilities on the balance sheet.

(3)Approximately $660,000 of accrued interest receivable is included in the fair value of the loan level derivative assets at September 30, 2022, in comparison to accrued interest receivable of approximately $1.2 million and $1.5 million in included in the fair value of interest rate and loan level derivative assets, respectively, at December 31, 2021.

(4)Approximately $36,000 and $660,000 of accrued interest payable is included in the fair value of interest rate and loan level derivative liabilities, respectively, at September 30, 2022. Accrued interest payable of approximately $5,000 and $1.5 million is included in the fair value of the interest rate and loan level derivative liabilities, respectively, at December 31, 2021.

(5)Netting adjustments represent the amounts recorded to convert derivative assets and liabilities cleared through CME from a gross basis to a net basis, inclusive of the variation margin payments, in accordance with applicable accounting guidance. As displayed in the table above, derivatives that cleared through the CME were either in a net asset position or a net liability position at September 30, 2022.

(6)Reflects offsetting derivative positions with the same counterparty that are not netted on the balance sheet.

Effect of derivative financial instruments included in OCI and current earnings

The table below presents the effect of the Company’s derivative financial instruments included in OCI and current earnings for the periods indicated:

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2022		2021		2022		2021
	(Dollars in thousands)
Derivatives designated as hedges
Loss in OCI on derivatives (effective portion), net of tax	$	(27,144)	$	(3,383)	$	(52,743)	$	(11,559)
Gain reclassified from OCI into interest income or interest expense (effective portion)	$	407	$	4,791	$	8,427	$	13,869
Derivatives not designated as hedges
Changes in fair value of customer related positions
Other income	$	26	$	54	$	147	$	137
Other expense	(67)		(80)		(239)		(374)
Changes in fair value of mortgage derivatives
Mortgage banking income	41		(213)		(603)		(3,840)
Total	$	—	$	(239)	$	(695)	$	(4,077)