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DERIVATIVES

6 Months Ended

Jun. 30, 2022

DERIVATIVES

DERIVATIVES

NOTE 14 — DERIVATIVES

In 2020, the Company entered into an interest rate cap derivative contract (“interest rate cap” or “contract”) as a part of its asset liability management strategy to help manage its interest rate risk position. The interest rate cap has a notional amount of $300.0 million and matures on March 1, 2025. The notional amount of the interest rate cap does not represent the amount exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the contract. The interest rate subject to the cap is 30-day LIBOR.

The interest rate cap was designated as a cash flow hedge of certain deposit liabilities of the Company. The hedge was determined to be highly effective during the three and six months ended June 30, 2022 and 2021. The Company expects the hedge to remain highly effective during the remaining term of the contract.

The following tables reflect the derivatives recorded on the balance sheet (in thousands):

​	​	​	​	​	​	​
​	​	​	Notional	​	​	Fair
​	​	​	Amount	​	​	Value
At June 30, 2022	​	​	​	​	​	​
Derivatives designated as hedges:	​	​	​	​	​	​
Interest rate caps related to customer deposits	​	$	300,000	​	$	14,410
Total included in Other Assets	​	$	300,000	​	$	14,410
​	​	​	​	​	​	​
At December 31, 2021	​	​	​	​	​	​
Derivatives designated as hedges:	​	​	​	​	​	​
Interest rate caps related to customer deposits	​	$	300,000	​	$	3,385
Total included in Other Assets	​	$	300,000	​	$	3,385

​

​

The effect of cash flow hedge accounting on accumulated other comprehensive income is as follows (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three months ended June 30,

​

Six months ended June 30,

​

2022

2021

​

2022

2021

Interest rate caps related to customer deposits

​

​

​

​

​

​

​

​

​

​

​

​

Amount of gain (loss) recognized in OCI, net of tax

​

$

1,677

​

$

(382)

​

$

7,764

​

$

1,166

Amount of gain (loss) reclassified from OCI into income

​

$

—

​

$

—

​

$

—

​

$

—

Location of gain (loss) reclassified from OCI into income

​

N/A

​

N/A

​

N/A

​

N/A

​

​

​

X

- References

No definition available.

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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

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 http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008

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