XML 41 R31.htm IDEA: XBRL DOCUMENT
v3.22.2

DERIVATIVES AND HEDGING (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Summary of Derivative Financial Instruments | The following table presents the fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition as of the dates indicated:
|  | Derivative Assets |  | Derivative Liabilities
(In thousands) |  | Notional Amount |  | Location |  | Fair Value |  | Notional Amount |  | Location |  | Fair Value
June 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts(1) |  | $ | 110,000 |  |  | Other assets |  | $ | 10,909 |  |  | $ | 133,000 |  |  | Accrued interest and other liabilities |  | $ | 5,836 |
Total derivatives designated as hedging instruments |  |  |  |  |  | $ | 10,909 |  |  |  |  |  |  | $ | 5,836 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |
Customer loan swaps(1) |  | $ | 270,974 |  |  | Other assets |  | $ | 7,272 |  |  | $ | 270,974 |  |  | Accrued interest and other liabilities |  | $ | 7,322 |
Risk participation agreements |  | 22,055 |  |  | Other assets |  | — |  |  | 52,891 |  |  | Accrued interest and other liabilities |  | — |
Fixed Rate mortgage interest rate lock commitments |  | 13,923 |  |  | Other assets |  | 170 |  |  | 6,583 |  |  | Accrued interest and other liabilities |  | 81 |
Forward delivery commitments |  | 3,380 |  |  | Other assets |  | 91 |  |  | — |  |  | Accrued interest and other liabilities |  | — |
Total derivatives not designated as hedging instruments |  |  |  |  |  | $ | 7,533 |  |  |  |  |  |  | $ | 7,403 |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts(1) |  | $ | 160,000 |  |  | Other assets |  | $ | 5,589 |  |  | $ | 83,000 |  |  | Accrued interest and other liabilities |  | $ | 7,872 |
Total derivatives designated as hedging instruments |  |  |  |  |  | $ | 5,589 |  |  |  |  |  |  | $ | 7,872 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |
Customer loan swaps(1) |  | $ | 345,545 |  |  | Other assets |  | $ | 19,297 |  |  | $ | 345,545 |  |  | Accrued interest and other liabilities |  | $ | 19,485 |
Risk participation agreements |  | 25,347 |  |  | Other assets |  | — |  |  | 53,704 |  |  | Accrued interest and other liabilities |  | — |
Fixed rate mortgage interest rate lock commitments |  | 20,437 |  |  | Other assets |  | 371 |  |  | 8,587 |  |  | Accrued interest and other liabilities |  | 91 |
Forward delivery commitments |  | 3,882 |  |  | Other assets |  | 86 |  |  | 1,903 |  |  | Accrued interest and other liabilities |  | 6 |
Total derivatives not designated as hedging instruments |  |  |  |  |  | $ | 19,754 |  |  |  |  |  |  | $ | 19,582 |
(1) Reported fair values include accrued interest receivable and payable.
Schedule of Cash Flow Hedging Instruments, Location | The table below presents the effect of cash flow hedge accounting, before tax, on AOCI for the periods indicated:
(Dollars in thousands) |  | Amount of Gain (Loss) Recognized in OCI on Derivative |  | Amount of Gain (Loss) Recognized in OCI Included Component |  | Amount of Gain (Loss) Recognized in OCI Excluded Component |  | Location of Gain (Loss) Recognized from AOCI into Income |  | Amount of Gain (Loss) Reclassified from AOCI into Income |  | Amount of Gain (Loss) Reclassified from AOCI into Income Included Component |  | Amount of Gain (Loss) Reclassified from AOCI into Income Excluded Component
Derivatives in Cash Flow Hedge Relationships: |  |  |  |  |  |  |  |  |  |  |  |  |  |
For the Three Months Ended June 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | (904) |  |  | $ | (904) |  |  | $ | — |  |  | Interest and fees on loans |  | $ | 237 |  |  | $ | 237 |  |  | $ | — |
Interest rate contracts |  | 2,233 |  |  | 2,233 |  |  | — |  |  | Interest on deposits |  | 32 |  |  | 32 |  |  | — |
Interest rate contracts |  | 2,259 |  |  | 2,259 |  |  | — |  |  | Interest on subordinated debentures |  | (271) |  |  | (271) |  |  | — |
Total |  | $ | 3,588 |  |  | $ | 3,588 |  |  | $ | — |  |  |  |  | $ | (2) |  |  | $ | (2) |  |  | $ | — |
For the Six Months Ended June 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | (3,915) |  |  | $ | (3,915) |  |  | $ | — |  |  | Interest and fees on loans |  | $ | 619 |  |  | $ | 619 |  |  | $ | — |
Interest rate contracts |  | 5,721 |  |  | 5,721 |  |  | — |  |  | Interest on deposits |  | (117) |  |  | (117) |  |  | — |
Interest rate contracts |  | 5,417 |  |  | 5,417 |  |  | — |  |  | Interest on subordinated debentures |  | (622) |  |  | (622) |  |  | — |
Total |  | $ | 7,223 |  |  | $ | 7,223 |  |  | $ | — |  |  |  |  | $ | (120) |  |  | $ | (120) |  |  | $ | — |
For the Three Months Ended June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | 66 |  |  | $ | 66 |  |  | $ | — |  |  | Interest and fees on loans |  | $ | 403 |  |  | $ | 403 |  |  | $ | — |
Interest rate contracts |  | (1,511) |  |  | (1,511) |  |  | — |  |  | Interest on deposits |  | (164) |  |  | (164) |  |  | — |
Interest rate contracts |  | $ | (1,758) |  |  | (1,758) |  |  |  |  | Interest on subordinated debentures |  | (431) |  |  | (431) |  |  |
Total |  | $ | (3,203) |  |  | $ | (3,203) |  |  | $ | — |  |  |  |  | $ | (192) |  |  | $ | (192) |  |  | $ | — |
For the Six Months Ended June 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | (736) |  |  | $ | (736) |  |  | $ | — |  |  | Interest and fees on loans |  | $ | 795 |  |  | $ | 795 |  |  | $ | — |
Interest rate contracts |  | 1,952 |  |  | 1,952 |  |  | — |  |  | Interest on deposits |  | (320) |  |  | (320) |  |  | — |
Interest rate contracts |  | 1,973 |  |  | 1,973 |  |  | — |  |  | Interest on subordinated debentures |  | (853) |  |  | (853) |  |  | — |
Total |  | $ | 3,189 |  |  | $ | 3,189 |  |  | $ | — |  |  |  |  | $ | (378) |  |  | $ | (378) |  |  | $ | — |
The table below presents the effect of cash flow hedge accounting on the consolidated statements of income for the periods indicated:
|  | Location and Amount of Gain (Loss) Recognized in Income
|  | Three Months Ended June 30,
|  | 2022 |  | 2021
(Dollars in thousands) |  | Interest and fees on loans |  | Interest on deposits |  |  |  | Interest on subordinated debentures |  | Interest and fees on loans |  | Interest on deposits |  |  |  | Interest on subordinated debentures
Total presented on the consolidated statements of income in which the effects of cash flow hedges are recorded |  | $ | 33,121 |  |  | $ | 2,510 |  |  |  |  | $ | 532 |  |  | $ | 30,865 |  |  | $ | 1,921 |  |  |  |  | $ | 640 |
Gain (loss) on cash flow hedging relationships
Interest rate contracts:
Amount of gain (loss) reclassified from AOCI into income |  | $ | 237 |  |  | $ | 32 |  |  |  |  | $ | (271) |  |  | $ | 403 |  |  | $ | (164) |  |  |  |  | $ | (431) |
Amount of gain (loss) reclassified from AOCI into income - included component |  | $ | 237 |  |  | $ | 32 |  |  |  |  | $ | (271) |  |  | $ | 403 |  |  | $ | (164) |  |  |  |  | $ | (431) |
Amount of gain (loss) reclassified from AOCI into income - excluded component |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |
|  | Location and Amount of Gain (Loss) Recognized in Income
|  | Six Months Ended June 30,
|  | 2022 |  | 2021
(Dollars in thousands) |  | Interest and fees on loans |  | Interest on deposits |  |  |  | Interest on subordinated debentures |  | Interest and fees on loans |  | Interest on deposits |  |  |  | Interest on subordinated debentures
Total presented on the consolidated statements of income in which the effects of cash flow hedges are recorded |  | $ | 65,156 |  |  | $ | 4,343 |  |  |  |  | $ | 1,061 |  |  | $ | 61,425 |  |  | $ | 3,984 |  |  |  |  | $ | 1,445 |
Gain (loss) on cash flow hedging relationships
Interest rate contracts:
Amount of gain (loss) reclassified from AOCI into income |  | $ | 619 |  |  | $ | (117) |  |  |  |  | $ | (622) |  |  | $ | 795 |  |  | $ | (320) |  |  |  |  | $ | (853) |
Amount of gain (loss) reclassified from AOCI into income - included component |  | $ | 619 |  |  | $ | (117) |  |  |  |  | $ | (622) |  |  | $ | 795 |  |  | $ | (320) |  |  |  |  | $ | (853) |
Amount of gain (loss) reclassified from AOCI into income - excluded component |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |
Schedule of Derivatives Not Designated as Hedging Instruments | The table below presents the effect of the Company's derivative financial instruments that are not designated as hedging instruments on the consolidated statements of income for the periods indicated:
|  | Location of Gain (Loss) Recognized in Income |  | Amount of Gain (Loss) Recognized in Income
|  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
(Dollars in thousands) |  |  | 2022 |  | 2021 |  | 2022 |  | 2021
Customer loan swaps |  | Other expense |  | $ | 44 |  |  | $ | — |  |  | $ | 138 |  |  | $ | — |
Fixed rate mortgage interest rate lock commitments |  | Mortgage banking income, net |  | 268 |  |  | (489) |  |  | (191) |  |  | 456 |
Forward delivery commitments |  | Mortgage banking income, net |  | (155) |  |  | (469) |  |  | 11 |  |  | 13 |
Total |  |  |  | $ | 157 |  |  | $ | (958) |  |  | $ | (42) |  |  | $ | 469 |

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 Tabular disclosure for cash flow hedging instruments of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfCashFlowHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5580258-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41620-113959 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5579245-113959 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41638-113959 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41678-113959 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=125515794&loc=d3e41641-113959 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5579240-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative instrument not designated or qualifying as hedging instrument. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4CC -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL109998890-113959 + Details
Name: | us-gaap_ScheduleOfOtherDerivativesNotDesignatedAsHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration