Derivative Financial Instruments (Tables)
|
9 Months Ended |
Sep. 30, 2026 |
|---|
| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
|
| Fair Value of Derivative Instruments |
As of September 30, 2026 and December 31, 2025, the notional amount, the location of the asset and liability, and their respective fair values, are summarized in the tables below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2026 |
|
|
|
Asset Derivatives |
|
|
Liability Derivatives |
|
(Dollars in thousands) |
|
Notional |
|
|
Balance Sheet Location |
|
Fair Value |
|
|
Notional |
|
|
Balance Sheet Location |
|
Fair Value |
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
$ |
272,258 |
|
|
Other assets |
|
$ |
31,674 |
|
|
$ |
272,258 |
|
|
Other liabilities |
|
$ |
31,674 |
|
Total derivatives |
|
|
|
|
|
|
$ |
31,674 |
|
|
|
|
|
|
|
$ |
31,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges: interest rate swaps |
|
$ |
700,000 |
|
|
Other assets |
|
$ |
23,774 |
|
|
$ |
— |
|
|
Other liabilities |
|
$ |
— |
|
Cash flow hedges: interest rate swaps |
|
|
150,000 |
|
|
Other assets |
|
|
88 |
|
|
|
150,000 |
|
|
Other liabilities |
|
|
56 |
|
Total |
|
|
|
|
|
|
$ |
23,862 |
|
|
|
|
|
|
|
$ |
56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
|
Asset Derivatives |
|
|
Liability Derivatives |
|
(Dollars in thousands) |
|
Notional |
|
|
Balance Sheet Location |
|
Fair Value |
|
|
Notional |
|
|
Balance Sheet Location |
|
Fair Value |
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
$ |
318,385 |
|
|
Other assets |
|
$ |
161 |
|
|
$ |
318,385 |
|
|
Other liabilities |
|
$ |
161 |
|
Total derivatives |
|
|
|
|
|
|
$ |
161 |
|
|
|
|
|
|
|
$ |
161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges: interest rate swaps |
|
$ |
— |
|
|
Other assets |
|
$ |
— |
|
|
$ |
700,000 |
|
|
Other liabilities |
|
$ |
8,650 |
|
Cash flow hedges: interest rate swaps |
|
|
— |
|
|
Other assets |
|
|
— |
|
|
|
300,000 |
|
|
Other liabilities |
|
|
2,619 |
|
Total |
|
|
|
|
|
|
$ |
— |
|
|
|
|
|
|
|
$ |
11,269 |
|
|
| Effect of Derivative Instruments on Consolidated Statement of Earnings |
The following table summarizes the effect of derivatives not designated as hedging instruments on the condensed consolidated statements of earnings for the periods presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of Gain Recognized in
Income on Derivative Instruments |
|
|
|
Location of Gain Recognized in
Income on Derivative Instruments |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
(Dollars in thousands) |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Derivatives Not Designated
as Hedging Instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
Other income |
|
$ |
4 |
|
|
$ |
— |
|
|
$ |
45 |
|
|
$ |
— |
|
Total |
|
|
|
$ |
4 |
|
|
$ |
— |
|
|
$ |
45 |
|
|
$ |
— |
|
The following table summarizes the effect of fair value and cash flow hedge on the condensed consolidated statements of earnings for the periods presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of (Losses) Gains Recognized in Interest
Income on Derivative Instruments |
|
|
|
Location of Gain Recognized in
Income on Derivative Instruments |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
(Dollars in thousands) |
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Derivatives Designated as Hedging Instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value hedges: interest rate swaps |
|
Interest income |
|
$ |
(165 |
) |
|
$ |
1,299 |
|
|
$ |
(410 |
) |
|
$ |
3,607 |
|
Cash flow hedges: interest rate swaps |
|
Interest expense |
|
|
(334 |
) |
|
|
168 |
|
|
|
(1,034 |
) |
|
|
498 |
|
Total |
|
|
|
$ |
(499 |
) |
|
$ |
1,467 |
|
|
$ |
(1,444 |
) |
|
$ |
4,105 |
|
|
| Schedule of Estimated Fair Value of Financial Instruments |
The following table presents amounts recorded on our condensed consolidated balance sheet related to cumulative basis adjustments for fair value hedges as of the dates indicated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortized Cost of the Hedged Assets |
|
|
Cumulative Amount of Fair Value Hedging Adjustments included in the Carrying Amount of the Hedged Assets |
|
(Dollars in thousands) |
|
September 30, 2026 |
|
|
December 31, 2025 |
|
|
September 30, 2026 |
|
|
December 31, 2025 |
|
Line Item in the Consolidated Balance Sheet |
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities available-for-sale (1) |
|
$ |
1,586,924 |
|
|
$ |
1,719,962 |
|
|
$ |
(22,173 |
) |
|
$ |
10,866 |
|
Total |
|
$ |
1,586,924 |
|
|
$ |
1,719,962 |
|
|
$ |
(22,173 |
) |
|
$ |
10,866 |
|
(1)These amounts were included in the amortized cost basis of closed portfolios of available-for-sale securities designated in hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. At September 30, 2026 and December 31, 2025, the amortized cost basis of the closed portfolios used in these hedging relationships was $1.6 billion and $1.7 billion, respectively. The cumulative basis adjustments associated with these hedging relationships were ($22.2) million and $10.9 million, respectively, of which $1.4 million and $1.5 million, respectively, related to discontinued hedging relationships. At September 30, 2026 and December 31, 2025, the notional amount of the designated hedged items was $700.0 million.
|