Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Summary of Derivatives Outstanding

The following table summarizes the derivatives outstanding:

(In thousands)	Notional Amount		Balance Sheet Location	Fair Value		Notional Amount		Balance Sheet Location	Fair Value
As of September 30, 2021
Derivatives not designated as hedging instruments
Interest rate derivatives	$	1,346,853	Other assets	$	71,246	$	1,346,853	Other liabilities	$	71,246
Risk participation agreements		91,348	Other assets		235		37,852	Other liabilities		68
Total derivatives not designated as hedging instruments				$	71,481				$	71,314
Netting adjustments(1)					-					3,684
Net derivatives in the balance sheet				$	71,481				$	67,630
Derivatives not offset on the balance sheet				$	4,869				$	4,869
Cash collateral(2)					-					55,730
Net derivative amounts				$	66,612				$	7,031
As of December 31, 2020
Derivatives designated as hedging instruments
Interest rate derivatives	$	-	Other assets	$	-	$	25,000	Other liabilities	$	34
Derivatives not designated as hedging instruments
Interest rate derivatives	$	1,223,584	Other assets	$	108,487	$	1,223,584	Other liabilities	$	108,487
Risk participation agreements		72,528	Other assets		292		39,785	Other liabilities		125
Total derivatives not designated as hedging instruments				$	108,779				$	108,612
Cash collateral(2)					-					107,350
Net derivative amounts				$	108,779				$	1,262

(1) Netting adjustments represents the amounts recorded to convert derivatives assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance on the settle to market rules for cleared derivatives. The CME legally characterizes the variation margin posted between counterparties as settlements of the outstanding derivative contracts instead of cash collateral. Company began to clear certain derivative transactions through the CME in 2021.

(2) Cash collateral represents the amount that cannot be used to offset our derivative assets and liabilities from a gross basis to a net basis in accordance with the applicable accounting guidance. The other collateral consists of securities and is exchanged under bilateral collateral and master netting agreements that allow us to offset the net derivative position with the related collateral. The application of the other collateral cannot reduce the net derivative position below zero. Therefore, excess other collateral, if any, is not reflected above.

Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Effect of Derivatives on AOCI and on Consolidated Statement of Income

The following table indicates the effect of cash flow hedge accounting on AOCI and on the unaudited interim consolidated statement of income:

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2021		2020		2021		2020
Derivatives designated as hedging instruments:
Interest rate derivatives - included component
Amount of (loss) recognized in other comprehensive income	$	-	$	-	$	-	$	(274	)
Amount of loss reclassified from AOCI into interest expense		-		101		21		192

Not Designated as Hedging Instrument [Member]

Derivative Instruments and Hedging Activities Disclosures [Line Items]

Effect of Derivatives on AOCI and on Consolidated Statement of Income

The following table indicates the gain or loss recognized in income on derivatives not designated as a hedging relationship:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2021			2020			2021			2020
Derivatives not designated as hedging instruments:
(Decrease) increase in other income	$	(307	)	$	(20	)	$	(382	)	$	127