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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 9 Months Ended
Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Value of Derivative Instruments
The following table summarizes the fair value of the Company's derivative instruments at September 30, 2024 and December 31, 2023:
September 30, 2024December 31, 2023
Notional AmountBalance Sheet LocationFair ValueNotional AmountBalance Sheet LocationFair Value
Derivatives designated as hedging instruments:
Cash flow hedge designation:
Interest rate swaps -FHLB advances$75,000 Other liabilities$(611)$75,000 Other assets$135 
Interest rate swaps - AFS securitiesn/aOther liabilitiesn/a50,000 Other liabilities(426)
Fair value hedge designation:
Interest rate swaps - commercial loans100,000 Other liabilities(2,255)100,000 Other liabilities(1,718)
Total derivatives designated as hedging instruments$(2,866)$(2,009)
Derivatives not designated as hedging instruments:
Interest rate swaps$340,193 Other assets$14,237 $216,485 Other assets$11,157 
Interest rate swaps340,193 Other liabilities(14,792)216,485 Other liabilities(11,253)
Purchased options – rate cap5,837 Other assets3 5,909 Other assets8 
Written options – rate cap5,837 Other liabilities(3)5,909 Other liabilities(8)
Risk participations - sold credit protection47,014 Other liabilities(166)32,722 Other liabilities(59)
Risk participations - purchased credit protection23,779 Other assets109 11,035 Other assets28 
Interest rate lock commitments with customers6,647 Other assets118 2,181 Other assets55 
Forward sale commitments3,253 Other liabilities(9)688 Other assets(4)
Total derivatives not designated as hedging instruments$(503)$(76)
The following table presents the carrying amount and associated cumulative basis adjustment related to the application of fair value hedge accounting that is included in the carrying amount of hedged assets as of September 30, 2024 and 2023.
Carrying Amounts of Hedged AssetsCumulative Amounts of Fair Value Hedging Adjustments Included in the Carrying Amounts of the Hedged Assets
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Commercial loans$100,000 $— $2,260 $— 
Effect of Derivative Financial Instruments on OCI and Net Income
The following tables summarize the effect of the Company's derivative financial instruments on OCI and net income for the three and nine months ended September 30, 2024 and 2023:
Amount of (Loss) Gain Recognized in OCI on DerivativeAmount of (Loss) Gain Recognized in OCI on Derivative
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Derivatives in cash flow hedging relationships:
Interest rate products$(2,182)$1,439 $(320)$2,831 

Amount of Loss Reclassified from AOCI into IncomeAmount of Loss Reclassified from AOCI into IncomeLocation of Loss Recognized from AOCI into Income
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Derivatives in cash flow hedging relationships:
Interest rate products$— $— $— $— Interest income

Amount of (Loss) Gain Recognized in IncomeAmount of (Loss) Gain Recognized in IncomeLocation of Gain Recognized in Income
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Derivatives designated as hedging instruments
Fair value hedge designation:
Interest rate swaps - commercial loans (1)
$(5)n/a$3 n/aInterest income on loans
Derivatives not designated as hedging instruments:
Interest rate products$(530)$307 $(459)$188 Other operating expenses
Risk participation agreements87 31 160 58 Other operating expenses
Interest rate lock commitments with customers45 (52)62 (20)Mortgage banking activities
Forward sale commitments(12)— (5)(139)Mortgage banking activities
Total derivatives not designated as hedging instruments$(410)$286 $(242)$87 
(1) Amount includes the net of the change in the fair value of the interest rate swaps hedging commercial loans and the change in the carrying value included in the hedged commercial loans.
Summary of Components of Interest Rate Swaps
The following table is a summary of components for interest rate swaps designated as hedging instruments at September 30, 2024 and December 31, 2023:
Weighted Average Pay RateWeighted Average Receive RateWeighted Average Maturity in Years
September 30, 2024
Cash flow hedge designation:
Interest rate swaps - FHLB advances3.49 %5.17 %3.5
Fair value hedge designation:
Interest rate swaps - commercial loans4.12 %5.17 %2.9
December 31, 2023
Cash flow hedge designation:
Interest rate swaps - FHLB advances3.49 %5.34 %4.3
Interest rate swaps - AFS securities5.34 %3.73 %0.7
Fair value hedge designation:
Interest rate swaps - commercial loans4.12 %5.34 %3.7