Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Notes Tables

Summary of information regarding the Company's derivative financial instruments

	Assets				Liabilities
	Notional				Notional
	Amount		Fair Value (1)		Amount		Fair Value (1)
June 30, 2023	(In thousands)
Cash flow hedges:
Interest rate swaps (borrowings and deposits)	$	921,500	$	35,655	$	-	$	-
Fair value hedges:
Interest rate swaps (loans and securities)		864,192		35,564		-		-
Non hedge:
Interest rate swaps (loans and deposits)		121,351		16,513		120,351		16,510
Total	$	1,907,043	$	87,732	$	120,351	$	16,510
December 31, 2022
Cash flow hedges:
Interest rate swaps (borrowings and deposits)	$	700,750	$	31,716	$	170,750	$	210
Fair value hedges:
Interest rate swaps (loans)		273,607		24,673		-		-
Non hedge:
Interest rate swaps (loans)		110,598		18,197		110,598		18,197
Total	$	1,084,955	$	74,586	$	281,348	$	18,407

(1) Derivatives in a positive position are recorded as “Other assets” and derivatives in a negative position are recorded as “Other liabilities” in the Consolidated Statements of Financial Condition.

Schedule of fair value hedged items for the periods indicated

						Cumulative Amount
						of the Fair Hedging Adjustment
Line Item in the Consolidated Statement		Carrying Amount of the				Included in the Carrying Amount of
of Financial Condition in Which		Hedged				the Hedged
the Hedged Item Is Included		Assets/(Liabilities)				Assets/(Liabilities)
(In thousands)		June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
Loans
Multi-family residential	$	81,741	$	82,613	$	(10,094)	$	(10,480)
Commercial real estate		159,727		167,353		(14,686)		(15,442)
Total	$	241,468	$	249,966	$	(24,780)	$	(25,922)
Portfolio Layer
Loans held for Investment (1)	$	2,651,394	$	—	$	(6,625)	$	—
Securities available for sale (2)		294,931		—		(5,504)		—
Total	$	2,946,325	$	—	$	(12,129)	$	—

(1) Carrying amount represents the amortized cost. At June 30, 2023, the amortized cost of the portfolio layer method closed portfolio was $2.7 billion, of which $400 million was designated as hedged. The basis adjustments at June 30, 2023 totaled $6.6 million.

(2) Carrying amount represents the fair value. At June 30, 2023, the fair value of the portfolio layer method closed portfolio was $295 million, of which $200 million was designated as hedged. The basis adjustments at June 30, 2023 totaled $5.5 million.

Schedule of effect of derivative instruments on the Consolidated Statements of Income

		For the three months ended				For the six months ended
	Affected Line Item in the Statements	June 30,				June 30,
(In thousands)	Where Net Income is Presented	2023		2022		2023		2022
Financial Derivatives:
Interest rate swaps - fair value hedge (loans)	Interest and fees on loans	$	2,669	$	(886)	$	4,566	$	(2,321)
Interest rate swaps - fair value hedge (securities)	Interest and dividends on securities		788		—		846		—
Interest rate swaps - non hedge (municipal deposits)	Deposits		3		—		3		—
Interest rate swaps - cash flow hedge (short-term advances)	Other interest expense		1,922		(1,489)		3,343		(3,954)
Interest rate swaps - cash flow hedge (brokered deposits)	Deposits		4,958		104		7,825		49
Total net income (expense) from the effects of derivative instruments		$	10,340	$	(2,271)	$	16,583	$	(6,226)

Schedule of effect of the master netting arrangements on the presentation of the derivative assets and liabilities in the Consolidated Statements of Condition

			Gross Amount		Net Amount
	Gross Amounts		Offset in Statement of		Presented in Statement of		Financial		Cash
(In thousands)	Recognized		Financial Condition		Financial Condition		Instruments		Collateral		Net Amount
June 30, 2023
Assets:
Interest rate swaps	$	87,732	$	—	$	87,732	$	—	$	(83,485)	$	4,247
Liabilities:
Interest rate swaps		16,510		—		16,510		—		—		16,510
December 31, 2022
Assets:
Interest rate swaps	$	74,586	$	—	$	74,586	$	—	$	(72,185)	$	2,401
Liabilities:
Interest rate swaps		18,407		—		18,407		—		—		18,407