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Derivative Financial Instruments | 6 Months Ended
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Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Derivative Financial Instruments The Company offers a loan hedging program to certain loan customers. Through this program, the Company originates a variable rate loan with the customer. The Company and the customer will then enter into a fixed interest rate swap. Lastly, an identical offsetting swap is entered into by the Company with a correspondent bank. These “back-to-back” swap arrangements are intended to offset each other and allow the Company to book a variable rate loan, while providing the customer with a contract for fixed interest payments. In these arrangements, the Company’s net cash flow is equal to the interest income received from the variable rate loan originated with the customer. These customer swaps are not designated as hedging instruments and are recorded at fair value in other assets and other liabilities. The changes in fair value is recognized in the income statement in other income and fees. At June 30, 2019 and December 31, 2018, interest rate swaps related to the Company’s loan hedging program that were outstanding is presented in the following table:
|  | June 30, 2019 |  | December 31, 2018
|  | (Dollars in thousands)
Interest rate swaps on loans with correspondent banks (included in other assets) |  |  |  |
Notional amount |  | $ | 71,201 |  |  | $ | 237,916 |
Weighted average remaining term (years) |  | 4.6 |  |  | 6.8 |
Pay fixed rate (weighted average) |  | 3.96 | % |  | 4.36 | %
Received variable rate (weighted average) |  | 4.97 | % |  | 4.69 | %
Estimated fair value |  | $ | 646 |  |  | $ | 6,191 |
Interest rate swaps on loans with correspondent banks (included in other liabilities) |  |  |  |
Notional amount |  | $ | 221,900 |  |  | $ | 36,972 |
Weighted average remaining term (years) |  | 7.0 |  |  | 6.4 |
Pay fixed rate (weighted average) |  | 4.65 | % |  | 5.12 | %
Received variable rate (weighted average) |  | 4.77 | % |  | 4.56 | %
Estimated fair value |  | $ | (8,414 | ) |  | $ | (868 | )
Back to back interest rate swaps with loan customers (included in other liabilities) |  |  |  |
Notional amount |  | $ | 71,201 |  |  | $ | 237,916 |
Weighted average remaining term (years) |  | 4.6 |  |  | 6.8 |
Received fixed rate (weighted average) |  | 3.96 | % |  | 4.36 | %
Pay variable rate (weighted average) |  | 4.97 | % |  | 4.69 | %
Estimated fair value |  | $ | (646 | ) |  | $ | (6,191 | )
Back to back interest rate swaps with loan customers (included in other assets) |  |  |  |
Notional amount |  | $ | 221,900 |  |  | $ | 36,972 |
Weighted average remaining term (years) |  | 7.0 |  |  | 6.4 |
Received variable rate (weighted average) |  | 4.65 | % |  | 5.12 | %
Pay fixed rate (weighted average) |  | 4.77 | % |  | 4.56 | %
Estimated fair value |  | $ | 8,414 |  |  | $ | 868 |
The Company enters into various stand-alone mortgage-banking derivatives in order to hedge the risk associated with the fluctuation of interest rates. Changes in fair value are recorded as mortgage banking revenue. Residential mortgage loans funded with interest rate lock commitments and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. At June 30, 2019, the Company had approximately $23.5 million in interest rate lock commitments and total forward sales commitments for the future delivery of residential mortgage loans. At December 31, 2018, the Company had approximately $874 thousand in interest rate lock commitments and total forward sales commitments for the future delivery of residential mortgage loans. The following table reflects the notional amount and fair value of mortgage banking derivatives for the dates indicated:
| As of June 30, 2019 |  | As of December 31, 2018
| Notional Amount |  | Fair Value |  | Notional Amount |  | Fair Value
| (Dollars in thousands)
Assets: |  |  |  |  |  |  |
Interest rate lock commitments | $ | 16,710 |  |  | $ | 142 |  |  | $ | 874 |  |  | $ | 10 |
Forward sale contracts related to mortgage banking | $ | 8,397 |  |  | $ | 23 |  |  | $ | — |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |
Interest rate lock commitments | $ | 6,805 |  |  | $ | 38 |  |  | $ | — |  |  | $ | — |
Forward sale contracts related to mortgage banking | $ | 15,118 |  |  | $ | 58 |  |  | $ | 874 |  |  | $ | 3 |

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- References No definition available. + Details
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- 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 http://asc.fasb.org/topic&trid=2229140 + Details
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