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Derivatives and Hedging Activities | 3 Months Ended
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Mar. 31, 2023
Derivative Instruments And Hedging Activities Disclosure [Abstract] |
Derivatives and Hedging Activities | Note 15 — Derivatives and Hedging Activities The Company’s derivative financial instruments consist entirely of interest rate swap agreements between the Company and its customers and other third party counterparties. The Company enters into “back-to-back swap” arrangements whereby the Company executes interest rate swap agreements with its customers and acquires an offsetting swap position from a third party counterparty. These derivative financial statements are accounted for at fair value, with changes in fair value recognized in the Company’s Consolidated Statements of Income. The table below presents the fair value of the Company’s derivative financial instruments as well as their location on the Balance Sheet as of March 31, 2023 and December 31, 2022.
As of March 31, 2023 |  | Derivative Assets |  |  | Derivative Liabilities |
|  | Notional Amount |  |  | Balance Sheet Location |  | Fair Value |  |  | Notional Amount |  |  | Balance Sheet Location |  | Fair Value |
|  | (in thousands) |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate products |  | $ | 106,480 |  |  | Other Assets |  | $ | 5,621 |  |  | $ | 106,480 |  |  | Other Liabilities |  | $ | 5,617 |
Total derivatives not designated as hedging instruments |  |  |  |  |  |  | $ | 5,621 |  |  |  |  |  |  |  | $ | 5,617 |
As of December 31, 2022 |  | Derivative Assets |  |  | Derivative Liabilities |
|  | Notional Amount |  |  | Balance Sheet Location |  | Fair Value |  |  | Notional Amount |  |  | Balance Sheet Location |  | Fair Value |
|  | (in thousands) |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate products |  | $ | 61,460 |  |  | Other Assets |  | $ | 7,507 |  |  | $ | 61,460 |  |  | Other Liabilities |  | $ | 7,375 |
Total derivatives not designated as hedging instruments |  |  |  |  |  |  | $ | 7,507 |  |  |  |  |  |  |  | $ | 7,375 |
The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Income Statement for the three months ended March 31, 2023 and 2022.
Derivatives Not Designated as Hedging Instruments under Subtopic 815-20 |  | Location of Gain or (Loss) Recognized in Income on Derivative |  | Amount of Gain or (Loss) Recognized in Income on Derivative |
|  |  |  | Three Months Ended March 31, |
|  |  |  | 2023 |  |  | 2022 |
|  |  |  | (in thousands) |
Interest rate products |  | Other income |  | $ | (128 | ) |  | $ | 55 |
Total |  |  |  | $ | (128 | ) |  | $ | 55 |
The Company recognized $0.6 million of fee income from its derivative financial instruments for the three months ended March 31, 2023. No fee income was earned for the three months ended March 31, 2022. The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of March 31, 2023 and December 31, 2022. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The derivative assets are located within the prepaid and other assets line item on the Consolidated Balance Sheets and the derivative liabilities are located within the accrued expenses and other liabilities line item on the Consolidated Balance Sheets.
Offsetting of Derivative Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of March 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheets |
|  | Gross Amounts of Recognized Assets |  |  | Gross Amounts Offset in the Consolidated Balance Sheets |  |  | Net Amounts of Assets presented in the Consolidated Balance Sheets |  |  | Financial Instruments |  |  | Cash Collateral Received |  |  | Net Amount |
|  | (in thousands) |
Derivatives |  | $ | 5,621 |  |  | $ | — |  |  | $ | 5,621 |  |  | $ | 5,617 |  |  | $ | 4 |  |  | $ | — |
Offsetting of Derivative Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of March 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheets |
|  | Gross Amounts of Recognized Liabilities |  |  | Gross Amounts Offset in the Consolidated Balance Sheets |  |  | Net Amounts of Liabilities presented in the Consolidated Balance Sheets |  |  | Financial Instruments |  |  | Cash Collateral Provided |  |  | Net Amount |
|  | (in thousands) |
Derivatives |  | $ | 5,617 |  |  | $ | — |  |  | $ | 5,617 |  |  | $ | 5,617 |  |  | $ | — |  |  | $ | — |
Offsetting of Derivative Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheets |
|  | Gross Amounts of Recognized Assets |  |  | Gross Amounts Offset in the Consolidated Balance Sheets |  |  | Net Amounts of Assets presented in the Consolidated Balance Sheets |  |  | Financial Instruments |  |  | Cash Collateral Received |  |  | Net Amount |
|  | (in thousands) |
Derivatives |  | $ | 7,507 |  |  | $ | — |  |  | $ | 7,507 |  |  | $ | 7,375 |  |  | $ | 132 |  |  | $ | — |
Offsetting of Derivative Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Gross Amounts Not Offset in the Consolidated Balance Sheets |
|  | Gross Amounts of Recognized Liabilities |  |  | Gross Amounts Offset in the Consolidated Balance Sheets |  |  | Net Amounts of Liabilities presented in the Consolidated Balance Sheets |  |  | Financial Instruments |  |  | Cash Collateral Provided |  |  | Net Amount |
|  | (in thousands) |
Derivatives |  | $ | 7,375 |  |  | $ | — |  |  | $ | 7,375 |  |  | $ | 7,375 |  |  | $ | — |  |  | $ | — |
The Company has agreements with each of its derivative counterparties that contain a provision stating if the Company either defaults or is capable of being declared in default on any of its indebtedness, then the Company could also be declared in default on its derivative obligations. In addition, these agreements may also require the Company to post additional collateral should it fail to maintain its status as a well- or adequately- capitalized institution. As of March 31, 2023 and December 31, 2022, the fair value of derivatives in a net asset position for counterparty transactions, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $5.6 million and $7.4 million, respectively. As of March 31, 2023, the Company had not posted any collateral with its counterparties related to these agreements and is adequately collateralized since its net asset position was $4,000 ($5.6 million of fair value of assets less $5.6 million of fair value of liabilities) as of March 31, 2023. As of December 31, 2022, the Company had not posted collateral related to these agreements and was adequately collateralized since its net asset position was $132,000 ($7.5 million of fair value of assets less $7.4 million of fair value of liabilities).

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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 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
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