v3.26.1
Derivative Financial Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location
The following table presents the amounts recorded in the consolidated balance sheets related to the cumulative adjustments for fair value hedges (in thousands):
Amortized Cost of Hedged Assets (2)
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of the Hedged Items
June 30, 2026December 31, 2025June 30, 2026December 31, 2025
Securities AFS (1) (3)
$1,388,508 $1,091,568 $3,547 $1,142 
Loans (1) (3)
— 239,990 — (58)
1) Amounts include the amortized cost basis of closed portfolios used to designate hedging relationships under the portfolio layer method. The hedged item is a layer of the closed portfolio which is expected to be remaining at the end of the hedging relationship. As of June 30, 2026 and December 31, 2025, the amortized cost basis of the closed MBS portfolio used in these hedging relationships was $1.36 billion and $1.07 billion, respectively, the amount of the designated hedged items were $334.0 million and $301.0 million, respectively, and the cumulative amount of fair value hedging adjustments associated with these MBS hedging relationships was a gain of $2.8 million and $789,000, respectively. As of December 31, 2025, the amortized cost basis of the closed loan portfolio used in these hedging relationships was $240.0 million, the amount of the designated hedged items were $155.0 million, and the cumulative amount of fair value hedging adjustments associated with these loan hedging relationships was a loss of $58,000.
2) Excludes fair value hedging adjustments.
3) Excluded from the table above are the cumulative amount of fair value hedging adjustments for securities AFS and loans for which hedge accounting has been discontinued in the amounts of a loss of $503,000 and a loss of $2.6 million, respectively, at June 30, 2026, and a loss of $740,000 and a loss of $3.0 million, respectively, at December 31, 2025.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
The following tables present the notional and estimated fair value amount of derivative positions outstanding (in thousands):
June 30, 2026December 31, 2025
Estimated Fair ValueEstimated Fair Value
Notional
Amount (1)
Asset DerivativeLiability Derivative
Notional
Amount (1)
Asset DerivativeLiability Derivative
Derivatives designated as hedging instruments
Interest rate contracts:
Swaps-Cash Flow Hedge-Financial institution counterparties$615,000 $4,373 $583 $860,000 $2,978 $3,641 
Swaps-Fair Value Hedge-Financial institution counterparties358,110 3,212 81 480,110 862 161 
Derivatives designated as non-hedging instruments
Interest rate contracts:
Swaps-Financial institution counterparties893,244 17,263 1,869 706,372 13,212 7,100 
Swaps-Customer counterparties893,244 1,869 17,263 706,372 7,100 13,212 
Gross derivatives26,717 19,796 24,152 24,114 
Offsetting derivative assets/liabilities(2,533)(2,533)(10,902)(10,902)
Cash collateral received/posted(20,580)— (5,538)— 
Net derivatives included in the consolidated balance sheets (2)
$3,604 $17,263 $7,712 $13,212 
(1)    Notional amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the consolidated balance sheets.
(2)    Net derivative assets are included in other assets and net derivative liabilities are included in other liabilities on the consolidated balance sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and our credit risk. At June 30, 2026, we had $1.7 million credit exposure related to interest rate swaps with financial institutions and $1.9 million related to interest rate swaps with customers. At December 31, 2025, we had $612,000 credit exposure related to interest rate swaps with financial institutions and $7.1 million related to interest rate swaps with customers. The credit risk associated with customer transactions is partially mitigated as these are generally secured by the non-cash collateral securing the underlying transaction being hedged.
Weighted Average Maturity And Interest Rates On Risk Management Interest Rate Swaps
The summarized expected weighted average remaining maturity of the notional amount of interest rate swaps and the weighted average interest rates associated with the amounts expected to be received or paid on interest rate swap agreements are presented below (dollars in thousands). Variable rates received on fixed pay swaps are based on overnight SOFR rates in effect at June 30, 2026 and December 31, 2025:
June 30, 2026December 31, 2025
Weighted AverageWeighted Average
Notional AmountRemaining Maturity
 (in years)		Receive
Rate
Pay
Rate
Notional AmountRemaining Maturity
 (in years)		Receive
Rate		Pay
Rate
Swaps-Cash Flow hedge
Financial institution counterparties$615,000 1.33.66 %3.43 %$860,000 1.33.83 %3.20 %
Swaps-Fair Value hedge
Financial institution counterparties358,110 2.13.63 %3.47 %480,110 1.43.78 %3.47 %
Swaps-Non-hedging
Financial institution counterparties893,244 3.83.67 %3.59 %706,372 4.13.92 %3.54 %
Customer counterparties893,244 3.83.59 %3.67 %706,372 4.13.54 %3.92 %
Derivative Instruments, Gain (Loss)
The following table presents amounts included in the consolidated statements of income related to interest rate swap agreements (in thousands):
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2026202520262025
Derivatives designated as hedging instruments
Swaps-Cash Flow hedge
Gain (loss) included in interest expense on deposits$(48)$1,149 $43 $2,650 
Gain (loss) included in interest expense on FHLB borrowings(258)717 142 1,789 
Gain (loss) included in interest expense on other borrowings271 — 326 — 
(35)1,866 511 4,439 
Swaps-Fair Value hedge
Gain (loss) included in interest income on tax-exempt investment securities32 1,076 66 2,126 
Gain (loss) included in interest income on MBS188 318 389 573 
Gain (loss) included in interest income on loans— 274 1 546 
Derivatives designated as non-hedging instruments
Swaps-Non-hedging
Other noninterest income774 732 1,478 825