Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2022

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 June 30, 2022
Derivatives not designated as hedging instruments
Interest rate derivatives	$	1,375,315	Other assets	$	75,173		$	1,375,315	Other liabilities	$	75,173
Risk participation agreements		89,969	Other assets		93			21,949	Other liabilities		20
Total derivatives not designated as hedging instruments				$	75,266					$	75,193
Netting adjustments(1)					15,935						-
Net derivatives in the balance sheet				$	59,331					$	75,193
Derivatives not offset on the balance sheet				$	3,989					$	3,989
Cash collateral(2)					-						-
Net derivative amounts				$	55,342					$	71,204
As of December 31, 2021
Derivatives not designated as hedging instruments
Interest rate derivatives	$	1,342,187	Other assets	$	60,203		$	1,342,187	Other liabilities	$	60,203
Risk participation agreements		90,938	Other assets		252			37,193	Other liabilities		60
Total derivatives not designated as hedging instruments				$	60,455					$	60,263
Netting adjustments(1)					(170	)					5,482
Net derivatives in the balance sheet				$	60,625					$	54,781
Derivatives not offset on the balance sheet				$	5,455					$	5,455
Cash collateral(2)					-						43,420
Net derivative amounts				$	55,170					$	5,906

(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. The 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 June 30,				Six Months Ended June 30,
(In thousands)	2022		2021		2022		2021
Derivatives designated as hedging instruments:
Interest rate derivatives - included component
Amount of loss reclassified from AOCI into interest expense	$	-	$	-	$	-	$	21

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 June 30,					Six Months Ended June 30,
(In thousands)	2022			2021		2022			2021
Derivatives not designated as hedging instruments:
(Decrease) increase in other income	$	(67	)	$	40	$	(119	)	$	(75	)