XML 26 R15.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Derivative Financial Instruments | 9 Months Ended
--- | ---
Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Derivative Financial Instruments Commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans are considered derivative instruments. See Note 8 for further information. The Company has certain interest rate derivative positions that are not designated as hedging instruments. Derivative assets and liabilities are recorded at fair value on the Consolidated Statements of Financial Condition and do not take into account the effects of master netting agreements. Master netting agreements allow the Company to settle all derivative contracts held with a single counterparty on a net basis, and to offset net derivative positions with related collateral, where applicable. These derivative positions relate to transactions in which the Company enters into an interest rate swap with a client while at the same time entering into an offsetting interest rate swap with another financial institution. In connection with each transaction, the Company agrees to pay interest to the client on a notional amount at a variable interest rate and receive interest from the client on the same notional amount at a fixed interest rate. At the same time, the Company agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows the client to effectively convert a variable rate loan to a fixed rate. Because the terms of the swaps with the customers and the other financial institutions offset each other, with the only difference being counterparty credit risk, changes in the fair value of the underlying derivative contracts are not materially different and do not significantly impact the Company’s results of operations. The following table shows the amounts of non-hedging derivative financial instruments.
|  |  |  | Asset derivatives |  | Liability derivatives
(Dollars in thousands) |  | Notional or contractual amount |  | Statement of Financial Condition classification |  | Fair value |  | Statement of Financial Condition classification |  | Fair value
September 30, 2022 |  |  |  |  |  |  |  |  |  |
Interest rate swap contracts |  | $ | 947,564 |  |  | Other assets |  | $ | 26,918 |  |  | Other liabilities |  | $ | 27,424 |
Loan commitments |  | 1,460 |  |  | Mortgages held for sale |  | 28 |  |  | N/A |  | — |
Forward contracts - mortgage loan |  | 2,250 |  |  | Mortgages held for sale |  | 82 |  |  | N/A |  | — |
Total |  | $ | 951,274 |  |  |  |  | $ | 27,028 |  |  |  |  | $ | 27,424 |
December 31, 2021 |  |  |  |  |  |  |  |  |  |
Interest rate swap contracts |  | $ | 1,064,721 |  |  | Other assets |  | $ | 20,735 |  |  | Other liabilities |  | $ | 21,172 |
Loan commitments |  | 15,086 |  |  | Mortgages held for sale |  | 452 |  |  | N/A |  | — |
Forward contracts - mortgage loan |  | 22,000 |  |  | N/A |  | — |  |  | Mortgages held for sale |  | 11 |
Total |  | $ | 1,101,807 |  |  |  |  | $ | 21,187 |  |  |  |  | $ | 21,183 |
The following table shows the amounts included in the Consolidated Statements of Income for non-hedging derivative financial instruments.
|  |  |  | Gain (loss)
|  |  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(Dollars in thousands) |  | Statement of Income classification |  | 2022 |  | 2021 |  | 2022 |  | 2021
Interest rate swap contracts |  | Other expense |  | $ | (252) |  |  | $ | 101 |  |  | $ | (69) |  |  | $ | 420 |
Interest rate swap contracts |  | Other income |  | 83 |  |  | 69 |  |  | 83 |  |  | 307 |
Loan commitments |  | Mortgage banking |  | (197) |  |  | (75) |  |  | (424) |  |  | (704) |
Forward contracts - mortgage loan |  | Mortgage banking |  | 83 |  |  | 246 |  |  | 93 |  |  | 512 |
Total |  |  |  | $ | (283) |  |  | $ | 341 |  |  | $ | (317) |  |  | $ | 535 |
The following table shows the offsetting of financial assets and derivative assets.
|  |  |  |  |  |  |  | Gross Amounts Not Offset in the Statement of Financial Condition |  |
(Dollars in thousands) |  | Gross Amounts of Recognized Assets |  | Gross Amounts Offset in the Statement of Financial Condition |  | Net Amounts of Assets Presented in the Statement of Financial Condition |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps |  | $ | 26,918 |  |  | $ | — |  |  | $ | 26,918 |  |  | $ | — |  |  | $ | 25,735 |  |  | $ | 1,183 |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps |  | $ | 24,436 |  |  | $ | 3,701 |  |  | $ | 20,735 |  |  | $ | — |  |  | $ | — |  |  | $ | 20,735 |
The following table shows the offsetting of financial liabilities and derivative liabilities.
|  |  |  |  |  |  |  | Gross Amounts Not Offset in the Statement of Financial Condition |  |
(Dollars in thousands) |  | Gross Amounts of Recognized Liabilities |  | Gross Amounts Offset in the Statement of Financial Condition |  | Net Amounts of Liabilities Presented in the Statement of Financial Condition |  | Financial Instruments |  | Cash Collateral Pledged |  | Net Amount
September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps |  | $ | 27,424 |  |  | $ | — |  |  | $ | 27,424 |  |  | $ | — |  |  | $ | — |  |  | $ | 27,424 |
Repurchase agreements |  | 130,192 |  |  | — |  |  | 130,192 |  |  | 130,192 |  |  | — |  |  | — |
Total |  | $ | 157,616 |  |  | $ | — |  |  | $ | 157,616 |  |  | $ | 130,192 |  |  | $ | — |  |  | $ | 27,424 |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps |  | $ | 24,873 |  |  | $ | 3,701 |  |  | $ | 21,172 |  |  | $ | 20,498 |  |  | $ | — |  |  | $ | 674 |
Repurchase agreements |  | 194,727 |  |  | — |  |  | 194,727 |  |  | 194,727 |  |  | — |  |  | — |
Total |  | $ | 219,600 |  |  | $ | 3,701 |  |  | $ | 215,899 |  |  | $ | 215,225 |  |  | $ | — |  |  | $ | 674 |
If a default in performance of any obligation of a repurchase agreement occurs, each party will set-off property held in respect of transactions against obligations owing in respect of any other transactions. At September 30, 2022 and December 31, 2021, repurchase agreements had a remaining contractual maturity of $126.92 million and $191.47 million in overnight and $3.27 million and $3.26 million in up to 30 days, respectively and were collateralized by U.S. Treasury and Federal agencies securities.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI https://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration