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Note 5 - DERIVATIVES AND HEDGING ACTIVITIES | 9 Months Ended
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Sep. 30, 2024
DERIVATIVES AND HEDGING ACTIVITIES |
DERIVATIVES AND HEDGING ACTIVITIES | NOTE 5 – DERIVATIVES AND HEDGING ACTIVITIES Derivatives are summarized as follows as of September 30, 2024 and December 31, 2023: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, 2024 |  | December 31, 2023
​ | ​ | (dollars in thousands)
Assets: | ​ | ​ | ​ | ​ | ​ | ​
Hedged Derivatives | ​ | ​ | ​ | ​ | ​ | ​
Cash Flow Hedges | ​ | ​ | ​ | ​ | ​ | ​
Interest rate caps | ​ | $ | 753 | ​ | $ | 2,847
Interest rate collars | ​ | ​ | 62 | ​ | ​ | —
Interest rate swaps | ​ |  | 958 | ​ |  | 1,689
​ | ​ | ​ | ​ | ​ | ​ | ​
Unhedged Derivatives | ​ | ​ | ​ | ​ | ​ | ​
Cash Flow Hedges | ​ | ​ | ​ | ​ | ​ | ​
Swaptions | ​ | ​ | 4,086 | ​ | ​ | —
Fair Value Hedges | ​ | ​ | ​ | ​ | ​ | ​
Interest rate caps | ​ | ​ | 314 | ​ | ​ | 951
Interest rate swaps | ​ |  | 255,740 | ​ |  | 181,854
​ | ​ | $ | 261,913 | ​ | $ | 187,341
​ | ​ | ​ | ​ | ​ | ​ | ​
Liabilities: | ​ | ​ | ​ | ​ | ​ | ​
Hedged Derivatives | ​ | ​ | ​ | ​ | ​ | ​
Cash Flow Hedges | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swaps | ​ | $ | (25,060) | ​ | $ | (30,407)
Interest rate collars | ​ | ​ | — | ​ | ​ | (166)
Fair Value Hedges | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swaps | ​ | ​ | (4,969) | ​ | ​ | (3,308)
Unhedged Derivatives | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swaps | ​ | ​ | (255,740) | ​ | ​ | (181,854)
​ | ​ | $ | (285,769) | ​ | $ | (215,735)
​ | ​ | ​ | ​ | ​ | ​ | ​
​ The Company uses interest rate swap, cap and collar instruments as well as swaptions to manage interest rate risk and the impact of changing interest rates on our net interest income and capital. The Company has entered into interest rate caps to hedge against the risk of rising interest rates on liabilities. The liabilities consist of $300.0 million of deposits and the benchmark rates hedged vary at 1-month SOFR, 3-month SOFR and the Prime Rate. The interest rate caps are designated as cash flow hedges in accordance with ASC 815. An initial premium of $3.5 million was paid upfront for the caps executed. The details of the interest rate caps are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | Balance Sheet | ​ | ​ | ​ | ​ | ​ | ​ | Fair Value as of | ​ | ​
Hedged Item | ​ | Effective Date | ​ | Maturity Date | ​ | Location | ​ | Notional Amount | ​ | Strike Rate | ​ | September 30, 2024 | ​ | ​ | December 31, 2023 | ​ | ​
(dollars in thousands) | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deposits | ​ | 1/1/2020 | ​ | 1/1/2024 | ​ | Derivatives - Assets | ​ | $ | 25,000 | ​ | 1.75 | % | ​ | $ | - | ​ | ​ | $ | (79) | ​ | ​
Deposits | ​ | 1/1/2020 | ​ | 1/1/2024 | ​ | Derivatives - Assets | ​ | ​ | 50,000 | ​ | 1.57 | % | ​ | ​ | - | ​ | ​ | ​ | - | ​ | ​
Deposits | ​ | 1/1/2020 | ​ | 1/1/2024 | ​ | Derivatives - Assets | ​ | ​ | 25,000 | ​ | 1.80 | % | ​ | ​ | - | ​ | ​ | ​ | - | ​ | ​
Deposits | ​ | 1/1/2020 | ​ | 1/1/2025 | ​ | Derivatives - Assets | ​ | ​ | 25,000 | ​ | 1.75 | % | ​ | ​ | 188 | ​ | ​ | ​ | 672 | ​ | ​
Deposits | ​ | 1/1/2020 | ​ | 1/1/2025 | ​ | Derivatives - Assets | ​ | ​ | 50,000 | ​ | 1.57 | % | ​ | ​ | 376 | ​ | ​ | ​ | 1,503 | ​ | ​
Deposits | ​ | 1/1/2020 | ​ | 1/1/2025 | ​ | Derivatives - Assets | ​ | ​ | 25,000 | ​ | 1.80 | % | ​ | ​ | 189 | ​ | ​ | ​ | 751 | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 200,000 | ​ | ​ | ​ | ​ | $ | 753 | ​ | ​ | $ | 2,847 | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ The Company has entered into interest rate swaps to hedge against the risk of rising rates on one of its variable rate subordinated notes and its variable rate trust preferred securities. All of the interest rate swaps are designated as cash flow hedges in accordance with ASC 815. The details of the interest rate swaps are as follows: ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | Balance Sheet | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Fair Value as of
Hedged Item | ​ | Effective Date | ​ | Maturity Date | ​ | Location | ​ | Notional Amount | ​ | Receive Rate | ​ | ​ | Pay Rate | ​ | September 30, 2024 | ​ | December 31, 2023
​ | ​ | ​ | (dollars in thousands) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
QCR Holdings Statutory Trust V |  | 7/7/2018 | ​ | 7/7/2028 | ​ | Derivatives - Assets |  | $ | 10,000 | ​ | 5.37 | % | ​ |  | 4.54 | % | ​ | $ | 190 | ​ | $ | 335
Community National Statutory Trust III |  | 9/15/2018 | ​ | 9/15/2028 | ​ | Derivatives - Assets |  | ​ | 3,500 | ​ | 6.96 | % | ​ |  | 4.75 | % | ​ | ​ | 87 | ​ | ​ | 118
Guaranty Bankshares Statutory Trust I |  | 9/15/2018 | ​ | 9/15/2028 | ​ | Derivatives - Assets | ​ | ​ | 4,500 | ​ | 6.96 | % | ​ | ​ | 4.75 | % | ​ | ​ | 68 | ​ | ​ | 152
Community National Statutory Trust II |  | 9/20/2018 | ​ | 9/20/2028 | ​ | Derivatives - Assets |  | ​ | 3,000 | ​ | 7.25 | % | ​ |  | 5.17 | % | ​ | ​ | 58 | ​ | ​ | 101
QCR Holdings Statutory Trust II |  | 9/30/2018 | ​ | 9/30/2028 | ​ | Derivatives - Assets |  | ​ | 10,000 | ​ | 7.72 | % | ​ |  | 5.85 | % | ​ | ​ | 194 | ​ | ​ | 341
QCR Holdings Statutory Trust III |  | 9/30/2018 | ​ | 9/30/2028 | ​ | Derivatives - Assets |  | ​ | 8,000 | ​ | 7.72 | % | ​ |  | 5.85 | % | ​ | ​ | 155 | ​ | ​ | 272
Guaranty Statutory Trust II* |  | 5/23/2019 | ​ | 2/23/2026 | ​ | Derivatives - Assets |  | ​ | 10,310 | ​ | 6.81 | % | ​ |  | 4.09 | % | ​ | ​ | 206 | ​ | ​ | 370
QCR Holdings Subordinated Note |  | 3/1/2024 | ​ | 2/15/2028 | ​ | Derivatives - Liabilities |  | ​ | 65,000 | ​ | 5.34 | % | ​ |  | 4.02 | % | ​ | ​ | (1,582) | ​ | ​ | -
​ |  |  | ​ | ​ | ​ | ​ |  | $ | 114,310 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | (624) | ​ | $ | 1,689
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
* Acquired on April 1, 2022 with GFED acquisition. | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ The Company has entered into interest rate swaps to hedge against the risk of declining interest rates on floating rate loans. The interest rate swaps are designated as cash flow hedges in accordance with ASC 815. The details of the interest rate swaps are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | Balance Sheet | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Fair Value as of
Hedged Item |  | Effective Date |  | Maturity Date |  | Location |  | Notional Amount |  |  | Receive Rate | ​ |  |  | Pay Rate | ​ |  | September 30, 2024 |  | December 31, 2023
(dollars in thousands)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Loans |  | 7/1/2021 | ​ | 7/1/2031 | ​ | Derivatives - Liabilities |  | $ | 35,000 | ​ | ​ | 1.40 | % | ​ |  | 5.33 | % | ​ | $ | (4,167) | ​ | $ | (5,004)
Loans |  | 7/1/2021 | ​ | 7/1/2031 | ​ | Derivatives - Liabilities |  | ​ | 50,000 | ​ | ​ | 1.40 | % | ​ |  | 5.33 | % | ​ | ​ | (5,952) | ​ | ​ | (7,149)
Loans |  | 7/1/2021 | ​ | 7/1/2031 | ​ | Derivatives - Liabilities |  | ​ | 40,000 | ​ | ​ | 1.40 | % | ​ |  | 5.33 | % | ​ | ​ | (4,772) | ​ | ​ | (5,730)
Loans |  | 10/1/2022 | ​ | 7/1/2031 | ​ | Derivatives - Liabilities |  | ​ | 25,000 | ​ | ​ | 1.30 | % | ​ |  | 5.33 | % | ​ | ​ | (3,005) | ​ | ​ | (3,696)
Loans |  | 4/1/2022 | ​ | 4/1/2027 | ​ | Derivatives - Liabilities |  | ​ | 15,000 | ​ | ​ | 1.91 | % | ​ |  | 5.33 | % | ​ | ​ | (558) | ​ | ​ | (868)
Loans |  | 4/1/2022 | ​ | 4/1/2027 | ​ | Derivatives - Liabilities |  | ​ | 50,000 | ​ | ​ | 1.91 | % | ​ |  | 5.33 | % | ​ | ​ | (1,861) | ​ | ​ | (2,892)
Loans |  | 4/1/2022 | ​ | 4/1/2027 | ​ | Derivatives - Liabilities |  | ​ | 35,000 | ​ | ​ | 1.91 | % | ​ |  | 5.33 | % | ​ | ​ | (1,303) | ​ | ​ | (2,024)
Loans | ​ | 4/1/2022 | ​ | 4/1/2027 | ​ | Derivatives - Liabilities | ​ | ​ | 50,000 | ​ | ​ | 1.91 | % | ​ | ​ | 5.33 | % | ​ | ​ | (1,860) | ​ | ​ | (3,044)
​ |  |  | ​ | ​ | ​ | ​ |  | $ | 300,000 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | (23,478) | ​ | $ | (30,407)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ The Company uses interest rate collars in an effort to manage future interest rate exposure on variable rate loans. The collar hedging strategy stabilizes interest rate fluctuations by setting both a floor and a cap. The collar is designated as a cash flow hedge in accordance with ASC 815. The details of the interest rate collar is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Fair Value as of
Hedged Item | ​ | Effective Date | ​ | Maturity Date | ​ | Location | ​ | Notional Amount | ​ | Cap Strike Rate | ​ | ​ | Floor Strike Rate | ​ | September 30, 2024 | ​ | December 31, 2023
Loans |  | 10/1/2022 | ​ | 10/1/2026 | ​ | Derivatives - Liabilities |  | $ | 50,000 | ​ | 4.40 | % |  | 2.44 | % | ​ | $ | 62 | ​ | $ | (166)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ The Company has entered into interest rate swaps to hedge against the risk of rising rates on loans. The interest rate swaps are designated as fair value hedges in accordance with ASC 815. The details of the interest rate swaps are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | Balance Sheet | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Fair Value as of
Hedged Item | ​ | Effective Date | ​ | Maturity Date | ​ | Location | ​ | Notional Amount | ​ | Receive Rate | ​ | ​ | ​ | Pay Rate | ​ | ​ | September 30, 2024 | ​ | December 31, 2023
(dollars in thousands)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Loans | ​ | 7/12/2023 | ​ | 8/1/2025 | ​ | Derivatives - Assets | ​ | $ | 15,000 | ​ | 5.15 | % | ​ | ​ | 4.60 | % | ​ | $ | (83) | ​ | $ | (69)
Loans |  | 7/12/2023 | ​ | 2/1/2026 | ​ | Derivatives - Assets |  | ​ | 25,000 | ​ | 5.15 | % | ​ |  | 4.38 | % | ​ | ​ | (252) | ​ | ​ | (195)
Loans |  | 7/12/2023 | ​ | 2/1/2026 | ​ | Derivatives - Assets |  | ​ | 15,000 | ​ | 5.15 | % | ​ |  | 4.38 | % | ​ | ​ | (151) | ​ | ​ | (117)
Loans | ​ | 7/12/2023 | ​ | 2/1/2026 | ​ | Derivatives - Assets | ​ | ​ | 20,000 | ​ | 5.15 | % | ​ | ​ | 4.38 | % | ​ | ​ | (202) | ​ | ​ | (140)
Loans |  | 7/12/2023 | ​ | 8/1/2026 | ​ | Derivatives - Assets |  | ​ | 30,000 | ​ | 5.15 | % | ​ |  | 4.21 | % | ​ | ​ | (413) | ​ | ​ | (293)
Loans |  | 7/12/2023 | ​ | 8/1/2026 | ​ | Derivatives - Assets |  | ​ | 15,000 | ​ | 5.15 | % | ​ |  | 4.21 | % | ​ | ​ | (207) | ​ | ​ | (146)
Loans | ​ | 7/12/2023 | ​ | 8/1/2026 | ​ | Derivatives - Assets | ​ | ​ | 20,000 | ​ | 5.15 | % | ​ | ​ | 4.21 | % | ​ | ​ | (276) | ​ | ​ | (176)
Loans |  | 7/12/2023 | ​ | 2/1/2027 | ​ | Derivatives - Assets |  | ​ | 32,500 | ​ | 5.15 | % | ​ |  | 4.08 | % | ​ | ​ | (539) | ​ | ​ | (364)
Loans | ​ | 7/12/2023 | ​ | 2/1/2027 | ​ | Derivatives - Assets | ​ | ​ | 15,000 | ​ | 5.15 | % | ​ | ​ | 4.08 | % | ​ | ​ | (249) | ​ | ​ | (168)
Loans | ​ | 7/12/2023 | ​ | 2/1/2027 | ​ | Derivatives - Assets | ​ | ​ | 20,000 | ​ | 5.15 | % | ​ | ​ | 4.08 | % | ​ | ​ | (332) | ​ | ​ | (202)
Loans |  | 7/12/2023 | ​ | 8/1/2027 | ​ | Derivatives - Assets |  | ​ | 32,500 | ​ | 5.15 | % | ​ |  | 3.98 | % | ​ | ​ | (606) | ​ | ​ | (397)
Loans | ​ | 7/12/2023 | ​ | 8/1/2027 | ​ | Derivatives - Assets | ​ | ​ | 15,000 | ​ | 5.15 | % | ​ | ​ | 3.98 | % | ​ | ​ | (280) | ​ | ​ | (183)
Loans | ​ | 7/12/2023 | ​ | 8/1/2027 | ​ | Derivatives - Assets | ​ | ​ | 25,000 | ​ | 5.15 | % | ​ | ​ | 3.98 | % | ​ | ​ | (466) | ​ | ​ | (276)
Loans |  | 7/12/2023 | ​ | 2/1/2028 | ​ | Derivatives - Assets |  | ​ | 30,000 | ​ | 5.15 | % | ​ |  | 3.90 | % | ​ | ​ | (609) | ​ | ​ | (388)
Loans | ​ | 7/12/2023 | ​ | 2/1/2028 | ​ | Derivatives - Assets | ​ | ​ | 15,000 | ​ | 5.15 | % | ​ | ​ | 3.90 | % | ​ | ​ | (304) | ​ | ​ | (194)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 325,000 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | (4,969) | ​ | $ | (3,308)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ Changes in fair values of derivative financial instruments accounted for as cash flow hedges, to the extent that they are included in the assessment of effectiveness, are recorded as a component of AOCI. Changes in fair values of derivative financial instruments accounted for as fair value hedges, to the extent that they are included in the assessment of effectiveness, are recorded as a component of other assets or other liabilities. For derivative instruments that are designated as unhedged, the change in fair value of the derivative instrument is recognized into current earnings. The details of the unhedged interest rate caps are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Balance Sheet | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Fair Value as of | ​ | ​
Effective Date | ​ | Maturity Date | ​ | Location | ​ | Notional Amount | ​ | Strike Rate | ​ | ​ | September 30, 2024 | ​ | ​ | December 31, 2023 | ​ | ​
(dollars in thousands) | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
2/1/2020 | ​ | 2/1/2024 | ​ | Derivatives - Assets | ​ | $ | 25,000 | ​ | 1.90 | % | ​ | $ | - | ​ | ​ | $ | 79 | ​ | ​
3/1/2020 | ​ | 3/3/2025 | ​ | Derivatives - Assets | ​ | ​ | 25,000 | ​ | 1.90 | % | ​ | ​ | 314 | ​ | ​ | ​ | 872 | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | $ | 50,000 | ​ | ​ | ​ | ​ | $ | 314 | ​ | ​ | $ | 951 | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ ​ During the third quarter of 2024, the Company executed a derivative strategy more commonly known as a swaption. The swaptions are designed to hedge the Company’s regulatory capital ratios against the adverse effects of a significant decline in long-term interest rates. The swaptions are designated as unhedged in accordance with ASC 815, therefore the change in fair value of the derivative instrument is recognized into current earnings. The details of the swaptions are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Fair Value as of
Effective Date | ​ | Maturity Date | ​ | Location | ​ | Notional Amount | ​ | Strike Rate | ​ | September 30, 2024 | ​ | December 31, 2023
(dollars in thousands)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
7/30/2024 | ​ | 7/30/2025 | ​ | Derivatives - Assets |  | $ | 77,600 | ​ | 2.13 | % | ​ | $ | 317 | ​ | ​ | N/A
7/30/2024 | ​ | 7/30/2025 | ​ | Derivatives - Assets | ​ | ​ | 33,100 | ​ | 2.63 | % | ​ | ​ | 390 | ​ | ​ | N/A
7/30/2024 | ​ | 7/30/2025 | ​ | Derivatives - Assets | ​ | ​ | 28,254 | ​ | 2.64 | % | ​ | ​ | 342 | ​ | ​ | N/A
7/30/2024 | ​ | 7/30/2025 | ​ | Derivatives - Assets | ​ | ​ | 66,247 | ​ | 2.14 | % | ​ | ​ | 278 | ​ | ​ | N/A
7/30/2024 | ​ | 1/29/2026 | ​ | Derivatives - Assets | ​ | ​ | 20,750 | ​ | 2.62 | % | ​ | ​ | 384 | ​ | ​ | N/A
7/30/2024 | ​ | 1/29/2026 | ​ | Derivatives - Assets | ​ | ​ | 41,700 | ​ | 2.12 | % | ​ | ​ | 335 | ​ | ​ | N/A
7/30/2024 | ​ | 1/30/2026 | ​ | Derivatives - Assets | ​ | ​ | 36,546 | ​ | 2.14 | % | ​ | ​ | 301 | ​ | ​ | N/A
7/30/2024 | ​ | 1/30/2026 | ​ | Derivatives - Assets | ​ | ​ | 18,453 | ​ | 2.64 | % | ​ | ​ | 350 | ​ | ​ | N/A
7/30/2024 | ​ | 7/30/2026 | ​ | Derivatives - Assets | ​ | ​ | 16,100 | ​ | 2.63 | % | ​ | ​ | 385 | ​ | ​ | N/A
7/30/2024 | ​ | 7/30/2026 | ​ | Derivatives - Assets | ​ | ​ | 29,800 | ​ | 2.13 | % | ​ | ​ | 348 | ​ | ​ | N/A
7/30/2024 | ​ | 7/30/2026 | ​ | Derivatives - Assets | ​ | ​ | 25,971 | ​ | 2.14 | % | ​ | ​ | 309 | ​ | ​ | N/A
7/30/2024 | ​ | 7/30/2026 | ​ | Derivatives - Assets | ​ | ​ | 14,280 | ​ | 2.64 | % | ​ | ​ | 347 | ​ | ​ | N/A
​ | ​ | ​ | ​ | ​ |  | $ | 408,801 | ​ | ​ | ​ | ​ | $ | 4,086 | ​ | ​ | N/A
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ The Company has also entered into interest rate swap contracts that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Company enters into an interest rate swap with a customer while at the same time entering into an equal and offsetting interest rate swap with an upstream counterparty. Additionally, the Company receives an upfront, non-refundable fee from the upstream counterparty, dependent upon the pricing that is recognized upon receipt from the counterparty. Because the Company acts as an intermediary for the customer, changes in the fair value of the underlying derivative contracts, for the most part, offset each other and do not significantly impact the Company’s results of operations. Interest rate swaps that are not designated as hedging instruments are summarized as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | September 30, 2024 | ​ | December 31, 2023
​ | ​ | ​ | Notional Amount | ​ | Estimated Fair Value | ​ | Notional Amount | ​ | Estimated Fair Value
​ | ​ | ​ | (dollars in thousands)
Non-Hedging Interest Rate Derivatives Assets: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swap contracts | ​ | ​ | $ | 3,898,579 | ​ | $ | 255,740 | ​ | $ | 3,308,024 | ​ | $ | 181,854
Non-Hedging Interest Rate Derivatives Liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate swap contracts | ​ | ​ | $ | 3,898,579 | ​ | $ | 255,740 | ​ | $ | 3,308,024 | ​ | $ | 181,854
​ ​ The effect of cash flow hedging and fair value accounting on the consolidated statements of income for the three and nine months ended September 30, 2024 and 2023 are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended September 30, 2024 | ​ | Three Months Ended September 30, 2023
​ | ​ | Interest and | ​ | Interest | ​ | ​ | Interest and | ​ | Interest | ​
​ | ​ | Dividend Income | ​ | Expense | ​ | ​ | Dividend Income | ​ | Expense | ​
​ | ​ | (dollars in thousands)
Income and expense line items presented in the consolidated statements of income | ​ | $ | 125,420 | ​ | $ | 65,698 | ​ | ​ | $ | 108,568 | ​ | $ | 53,313 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
The effects of cash flow hedging: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Gain on interest rate caps on deposits | ​ | ​ | - | ​ | ​ | (1,029) | ​ | ​ | ​ | - | ​ | ​ | (2,066) | ​
Gain on interest rate swaps on junior subordinated debentures | ​ | ​ | - | ​ | ​ | (339) | ​ | ​ | ​ | - | ​ | ​ | (328) | ​
Loss on interest rate swaps and collars on loans | ​ | ​ | (3,000) | ​ | ​ | - | ​ | ​ | ​ | (2,495) | ​ | ​ | - | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
The effects of fair value hedging: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Gain on interest rate swaps on loans | ​ | ​ | 968 | ​ | ​ | - | ​ | ​ | ​ | 828 | ​ | ​ | - | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Nine Months Ended September 30, 2024 | ​ | ​ | Nine Months Ended September 30, 2023 | ​
​ | ​ | Interest and | ​ | Interest | ​ | ​ | Interest and | ​ | Interest | ​
​ | ​ | Dividend Income | ​ | Expense | ​ | ​ | Dividend Income | ​ | Expense | ​
​ | ​ | (dollars in thousands)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Income and expense line items presented in the consolidated statements of income | ​ | $ | 360,215 | ​ | $ | 189,631 | ​ | ​ | $ | 301,162 | ​ | $ | 135,892 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
The effects of cash flow hedging: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Gain on interest rate caps on deposits | ​ | ​ | - | ​ | ​ | (3,184) | ​ | ​ | ​ | - | ​ | ​ | (5,522) | ​
Gain on interest rate swaps on junior subordinated debentures | ​ | ​ | - | ​ | ​ | (1,012) | ​ | ​ | ​ | - | ​ | ​ | (830) | ​
Loss on interest rate swaps and collars on loans | ​ | ​ | (8,961) | ​ | ​ | - | ​ | ​ | ​ | (6,757) | ​ | ​ | - | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
The effects of fair value hedging: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Gain on interest rate swaps on loans | ​ | ​ | 2,930 | ​ | ​ | - | ​ | ​ | ​ | 828 | ​ | ​ | - | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ The Company’s hedged interest rate swaps and non-hedged interest rate swaps are collateralized with cash and investment securities with carrying values as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, 2024 | ​ | December 31, 2023
​ | ​ | (dollars in thousands)
​ | ​ | ​ | ​ | ​ | ​ | ​
Cash | ​ | $ | 94,100 | ​ | $ | 51,680
U.S. govt. sponsored agency securities | ​ | ​ | 6,571 | ​ | ​ | 6,413
Municipal securities | ​ | ​ | 156,358 | ​ | ​ | 68,651
Residential mortgage-backed and related securities | ​ |  | 19,855 | ​ |  | 23,358
​ | ​ | $ | 276,884 | ​ | $ | 150,102
​ | ​ | ​ | ​ | ​ | ​ | ​
​ The Company may be exposed to credit risk in the event of non-performance by the counterparties to its interest rate derivative agreements. The Company assesses the credit risk of its financial institution counterparties by monitoring publicly available credit ratings and financial information. Additionally, the Company manages financial institution counterparty credit risk by entering into interest rate derivatives only with primary and highly rated counterparties, and uses ISDA master agreements, central clearing mechanisms and counterparty limits. The agreements contain bilateral collateral agreements with the amount of collateral to be posted generally governed by the settlement value of outstanding swaps. The Company manages the risk of default by its borrower/customer counterparties through its normal loan underwriting and credit monitoring policies and procedures. The Company underwrites the combination of the base loan amount and potential swap exposure and focuses on high quality borrowers with strong collateral values. The majority of the Company’s swapped loan portfolio consists of loans on projects, with loan-to-values, including the potential swap exposure, below 65%. The Company does not currently anticipate any losses from failure of interest rate derivative counterparties to honor their obligations.

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