XML 27 R16.htm IDEA: XBRL DOCUMENT
v3.21.1

DERIVATIVES | 3 Months Ended
--- | ---
Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVES | 8. DERIVATIVES We utilize various designated and undesignated derivative financial instruments to reduce our exposure to movements in interest rates including interest rate lock commitments and forward sale commitments. We measure all derivatives at fair value on our consolidated balance sheet. In each reporting period, we record the derivative instruments in other assets or other liabilities depending on whether the derivatives are in an asset or liability position. For derivative instruments that are designated as cash flow hedging instruments, we record the effective portion of the changes in the fair value of the derivative in AOCI, net of tax, until earnings are affected by the variability of cash flows of the hedged transaction. We immediately recognize the portion of the gain or loss in the fair value of the derivative that represents hedge ineffectiveness in current period earnings. For derivative instruments that are not designated as hedging instruments, changes in the fair value of the derivative are included in current period earnings. At March 31, 2021 and December 31, 2020, we were not party to any derivatives designated as part of a fair value or cash flow hedge. Interest Rate Lock and Forward Sale Commitments We enter into interest rate lock commitments on certain mortgage loans that are intended to be sold. To manage interest rate risk on interest rate lock commitments, we also enter into forward loan sale commitments. The interest rate locks and forward loan sale commitments are accounted for as undesignated derivatives and are recorded at their respective fair values in other assets or other liabilities, with changes in fair value recorded in current period earnings. These instruments serve to reduce our exposure to movements in interest rates. At March 31, 2021, we were a party to interest rate lock and forward sale commitments on $1.9 million and $7.1 million of mortgage loans, respectively. Risk Participation Agreements In the first and fourth quarters of 2020, the Company entered into credit risk participation agreements ("RPA") with financial institution counterparties for interest rate swaps related to loans in which we participate. The risk participation agreements entered into by us and a participant bank provide credit protection to the financial institution counterparties should the borrowers fail to perform on their interest rate derivative contracts with the financial institutions. The following table presents the location of all assets and liabilities associated with our derivative instruments within the consolidated balance sheets:
Derivatives Financial Instruments Not Designated as Hedging Instruments |  | Asset Derivatives |  | Liability Derivatives
| Fair Value at |  | Fair Value at
(dollars in thousands) |  | Balance Sheet Location |  | March 31, 2021 |  | December 31, 2020 |  | March 31, 2021 |  | December 31, 2020
Interest rate lock and forward sale commitments and risk participation agreements |  | Other assets / other liabilities |  | $ | 84 |  |  | $ | 18 |  |  | $ | 18 |  |  | $ | 163 |
The following table presents the impact of derivative instruments and their location within the consolidated statements of income:
Derivatives Financial Instruments Not Designated as Hedging Instruments |  | Location of Gain (Loss) Recognized in Earnings on Derivatives |  | Amount of Gain (Loss) Recognized in Earnings on Derivatives
(dollars in thousands) |  |
Three Months Ended March 31, 2021 |  |  |  |
Interest rate lock and forward sale commitments |  | Mortgage banking income |  | $ | 180 |
Loans held for sale |  | Other income |  | (1) |
Risk participation agreements |  | Other service charges and fees |  | 31 |
Three Months Ended March 31, 2020 |  |  |  |
Interest rate lock and forward sale commitments |  | Mortgage banking income |  | 99 |
Risk participation agreements |  | Other service charges and fees |  | 1,288 |

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 http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration