| Fair Values of Derivative Financial Instruments |
The table below presents the notional or contractual amounts and fair values of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets at June 30, 2026 and December 31, 2025.
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June 30, 2026 |
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December 31, 2025 |
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Notional or |
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Notional or |
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Type of |
Contractual |
|
Derivative (1) |
|
Contractual |
|
Derivative (1) |
|
($ in thousands) |
Hedge |
Amount |
|
Assets |
|
Liabilities |
|
Amount |
|
Assets |
|
Liabilities |
|
Derivatives designated as hedging instruments: |
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|
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|
|
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|
|
|
Interest rate swaps - variable rate loans |
Cash Flow |
$ |
1,825,000 |
|
$ |
270 |
|
$ |
21,541 |
|
$ |
1,775,000 |
|
$ |
4,026 |
|
$ |
16,335 |
|
Interest rate swaps - securities |
Fair Value |
|
359,000 |
|
|
26,849 |
|
|
— |
|
|
397,500 |
|
|
23,569 |
|
|
— |
|
Total derivatives designated as hedging instruments |
|
$ |
2,184,000 |
|
$ |
27,119 |
|
$ |
21,541 |
|
$ |
2,172,500 |
|
$ |
27,595 |
|
$ |
16,335 |
|
Derivatives not designated as hedging instruments: |
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Interest rate swaps |
N/A |
$ |
5,438,388 |
|
$ |
67,176 |
|
$ |
67,245 |
|
$ |
5,308,711 |
|
$ |
73,725 |
|
$ |
73,829 |
|
Risk participation agreements |
N/A |
|
436,574 |
|
|
9 |
|
|
25 |
|
|
373,117 |
|
|
10 |
|
|
10 |
|
Interest rate-lock commitments on residential mortgage loans |
N/A |
|
37,497 |
|
|
684 |
|
|
33 |
|
|
23,192 |
|
|
497 |
|
|
— |
|
Forward commitments to sell residential mortgage loans |
N/A |
|
9,124 |
|
|
— |
|
|
135 |
|
|
9,081 |
|
|
2 |
|
|
108 |
|
To Be Announced (TBA) securities |
N/A |
|
41,250 |
|
|
69 |
|
|
44 |
|
|
30,000 |
|
|
4 |
|
|
62 |
|
Foreign exchange forward contracts |
N/A |
|
64,416 |
|
|
1,691 |
|
|
1,672 |
|
|
82,157 |
|
|
3,779 |
|
|
3,745 |
|
Visa Class B derivative contract |
N/A |
|
41,435 |
|
|
— |
|
|
986 |
|
|
41,588 |
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|
— |
|
|
1,284 |
|
Total derivatives not designated as hedging instruments |
|
$ |
6,068,684 |
|
$ |
69,629 |
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$ |
70,140 |
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$ |
5,867,846 |
|
$ |
78,017 |
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$ |
79,038 |
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Total derivatives |
|
$ |
8,252,684 |
|
$ |
96,748 |
|
$ |
91,681 |
|
$ |
8,040,346 |
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$ |
105,612 |
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$ |
95,373 |
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Less: netting adjustment (2) |
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(47,611 |
) |
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— |
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(42,486 |
) |
|
(6 |
) |
Total derivative assets/liabilities |
|
|
|
$ |
49,137 |
|
$ |
91,681 |
|
|
|
$ |
63,126 |
|
$ |
95,367 |
|
(1)Derivative assets and liabilities are reported in other assets and other liabilities, respectively, in the consolidated balance sheets. (2)Represents balance sheet netting of derivative assets and liabilities for variation margin collateral held or placed with the same central clearing counterparty. See offsetting assets and liabilities for further information.
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| Effects of Derivative Instruments on the Statement of Income |
The effects of derivative instruments on the Consolidated Statements of Income for the three and six months ended June 30, 2026 and 2025 are presented in the table below. Amounts in parentheses indicate a reduction of net income.
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Three Months Ended |
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Six Months Ended |
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($ in thousands) |
|
Income Statement Line Item |
|
June 30, |
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|
June 30, |
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Derivative Instruments: |
|
of Recognized Gain (Loss) |
|
2026 |
|
|
2025 |
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|
2026 |
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|
2025 |
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Cash flow hedges: |
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Variable rate loans |
|
Interest income - loans |
|
$ |
(5,664 |
) |
|
$ |
(8,735 |
) |
|
$ |
(11,644 |
) |
|
$ |
(17,195 |
) |
Fair value hedges: |
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Securities |
|
Interest income - securities - taxable (1) |
|
|
1,386 |
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|
4,690 |
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|
3,060 |
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|
8,600 |
|
Securities - sold |
|
Noninterest income - securities transaction, net |
|
|
— |
|
|
|
— |
|
|
|
50,381 |
|
|
|
— |
|
Derivatives not designated as hedging: |
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|
|
|
|
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Residential mortgage banking |
|
Noninterest income - secondary mortgage market operations |
|
|
516 |
|
|
|
556 |
|
|
|
648 |
|
|
|
860 |
|
Customer and all other instruments |
|
Noninterest income - other noninterest income |
|
|
395 |
|
|
|
1,969 |
|
|
|
1,355 |
|
|
|
1,698 |
|
Total gain (loss) |
|
|
|
$ |
(3,367 |
) |
|
$ |
(1,520 |
) |
|
$ |
43,800 |
|
|
$ |
(6,037 |
) |
(1)Includes the effects of both active derivative instruments and the impact from realization of basis adjustments to hedged assets resulting from previously terminated hedges.
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| Offsetting Derivative Assets and Liabilities Subject to Master Netting Arrangements |
Offsetting information in regards to all derivative assets and liabilities, including accrued interest, subject to these master netting agreements at June 30, 2026 and December 31, 2025 is presented in the following tables
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As of June 30, 2026 |
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Gross |
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Gross Amounts Offset in the |
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Net Amounts Presented in the |
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Gross Amounts Not Offset in the
Statement of Financial Condition |
|
($ in thousands) |
|
Amounts
Recognized |
|
Statement of Financial Condition |
|
Statement of Financial Condition |
|
|
Financial
Instruments |
|
Cash
Collateral |
|
Net
Amount |
|
Derivative Assets |
|
$ |
93,859 |
|
$ |
(48,456 |
) |
$ |
45,403 |
|
|
$ |
27,078 |
|
$ |
30,990 |
|
$ |
49,315 |
|
Derivative Liabilities |
|
$ |
27,078 |
|
$ |
— |
|
$ |
27,078 |
|
|
$ |
27,078 |
|
$ |
— |
|
$ |
— |
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As of December 31, 2025 |
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Gross |
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Gross Amounts Offset in the |
|
Net Amounts Presented in the |
|
|
Gross Amounts Not Offset in the
Statement of Financial Condition |
|
($ in thousands) |
|
Amounts
Recognized |
|
Statement of Financial Condition |
|
Statement of Financial Condition |
|
|
Financial
Instruments |
|
Cash
Collateral |
|
Net
Amount |
|
Derivative Assets |
|
$ |
89,930 |
|
$ |
(43,810 |
) |
$ |
46,120 |
|
|
$ |
36,259 |
|
$ |
32,890 |
|
$ |
42,751 |
|
Derivative Liabilities |
|
$ |
36,264 |
|
$ |
(5 |
) |
$ |
36,259 |
|
|
$ |
36,259 |
|
$ |
— |
|
$ |
— |
|
|