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DERIVATIVES AND HEDGING (Tables) | 9 Months Ended
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Sep. 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
September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts(1) |  | $ | 110,000 |  |  | Other assets |  | $ | 13,806 |  |  | $ | 133,000 |  |  | Accrued interest and other liabilities |  | $ | 5,459 |
Total derivatives designated as hedging instruments |  |  |  |  |  | $ | 13,806 |  |  |  |  |  |  | $ | 5,459 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |  |
Customer loan swaps(1) |  | $ | 264,758 |  |  | Other assets |  | $ | 16,112 |  |  | $ | 264,758 |  |  | Accrued interest and other liabilities |  | $ | 16,134 |
Risk participation agreements |  | 21,937 |  |  | Other assets |  | — |  |  | 44,741 |  |  | Accrued interest and other liabilities |  | — |
Fixed rate mortgage interest rate lock commitments |  | 2,400 |  |  | Other assets |  | 11 |  |  | 12,166 |  |  | Accrued interest and other liabilities |  | 395 |
Forward delivery commitments |  | 4,863 |  |  | Other assets |  | 318 |  |  | — |  |  | Accrued interest and other liabilities |  | — |
Total derivatives not designated as hedging instruments |  |  |  |  |  | $ | 16,441 |  |  |  |  |  |  | $ | 16,529 |
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 September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | (1,798) |  |  | $ | (1,798) |  |  | $ | — |  |  | Interest and fees on loans |  | $ | (121) |  |  | $ | (121) |  |  | $ | — |
Interest rate contracts |  | 146 |  |  | 146 |  |  | — |  |  | Interest on deposits |  | 189 |  |  | 189 |  |  | — |
Interest rate contracts |  | 2,544 |  |  | 2,544 |  |  | — |  |  | Interest on borrowings |  | 185 |  |  | 185 |  |  | — |
Interest rate contracts |  | 2,489 |  |  | 2,489 |  |  | — |  |  | Interest on subordinated debentures |  | (133) |  |  | (133) |  |  | — |
Total |  | $ | 3,381 |  |  | $ | 3,381 |  |  | $ | — |  |  |  |  | $ | 120 |  |  | $ | 120 |  |  | $ | — |
For the Nine Months Ended September 30, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | (5,713) |  |  | $ | (5,713) |  |  | $ | — |  |  | Interest and fees on loans |  | $ | 498 |  |  | $ | 498 |  |  | $ | — |
Interest rate contracts |  | 5,867 |  |  | 5,867 |  |  | — |  |  | Interest on deposits |  | 72 |  |  | 72 |  |  | — |
Interest rate contracts |  | 2,544 |  |  | 2,544 |  |  | — |  |  | Interest on borrowings |  | 185 |  |  | 185 |  |  | — |
Interest rate contracts |  | 7,906 |  |  | 7,906 |  |  | — |  |  | Interest on subordinated debentures |  | (755) |  |  | (755) |  |  | — |
Total |  | $ | 10,604 |  |  | $ | 10,604 |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |
For the Three Months Ended September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | 48 |  |  | $ | 48 |  |  | $ | — |  |  | Interest and fees on loans |  | $ | 410 |  |  | $ | 410 |  |  | $ | — |
Interest rate contracts |  | 190 |  |  | 190 |  |  | — |  |  | Interest on deposits |  | (170) |  |  | (170) |  |  | — |
Interest rate contracts |  | 228 |  |  | 228 |  |  |  |  | Interest on subordinated debentures |  | (369) |  |  | (369) |  |  |
Total |  | $ | 466 |  |  | $ | 466 |  |  | $ | — |  |  |  |  | $ | (129) |  |  | $ | (129) |  |  | $ | — |
For the Nine Months Ended September 30, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | (688) |  |  | $ | (688) |  |  | $ | — |  |  | Interest and fees on loans |  | $ | 1,205 |  |  | $ | 1,205 |  |  | $ | — |
Interest rate contracts |  | 2,142 |  |  | 2,142 |  |  | — |  |  | Interest on deposits |  | (490) |  |  | (490) |  |  | — |
Interest rate contracts |  | 2,201 |  |  | 2,201 |  |  | — |  |  | Interest on subordinated debentures |  | (1,222) |  |  | (1,222) |  |  | — |
Total |  | $ | 3,655 |  |  | $ | 3,655 |  |  | $ | — |  |  |  |  | $ | (507) |  |  | $ | (507) |  |  | $ | — |
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 September 30,
|  | 2022 |  | 2021
(Dollars in thousands) |  | Interest and fees on loans |  | Interest on deposits |  | Interest on borrowings |  | Interest on subordinated debentures |  | Interest and fees on loans |  | Interest on deposits |  | Interest on borrowings |  | Interest on subordinated debentures
Total presented on the consolidated statements of income in which the effects of cash flow hedges are recorded |  | $ | 37,568 |  |  | $ | 5,442 |  |  | $ | 787 |  |  | $ | 539 |  |  | $ | 31,185 |  |  | $ | 1,973 |  |  | $ | 122 |  |  | $ | 538 |
Gain (loss) on cash flow hedging relationships
Interest rate contracts:
Amount of gain (loss) reclassified from AOCI into income |  | $ | (121) |  |  | $ | 189 |  |  | $ | 185 |  |  | $ | (133) |  |  | $ | 410 |  |  | $ | (170) |  |  | $ | — |  |  | $ | (369) |
Amount of gain (loss) reclassified from AOCI into income - included component |  | $ | (121) |  |  | $ | 189 |  |  | $ | 185 |  |  | $ | (133) |  |  | $ | 410 |  |  | $ | (170) |  |  | $ | — |  |  | $ | (369) |
Amount of gain (loss) reclassified from AOCI into income - excluded component |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
|  | Location and Amount of Gain (Loss) Recognized in Income
|  | Nine Months Ended September 30,
|  | 2022 |  | 2021
(Dollars in thousands) |  | Interest and fees on loans |  | Interest on deposits |  | Interest on borrowings |  | Interest on subordinated debentures |  | Interest and fees on loans |  | Interest on deposits |  | Interest on borrowings |  | Interest on subordinated debentures
Total presented on the consolidated statements of income in which the effects of cash flow hedges are recorded |  | $ | 102,724 |  |  | $ | 9,785 |  |  | $ | 1,372 |  |  | $ | 1,600 |  |  | $ | 92,610 |  |  | $ | 5,957 |  |  | $ | 454 |  |  | $ | 1,983 |
Gain (loss) on cash flow hedging relationships
Interest rate contracts:
Amount of gain (loss) reclassified from AOCI into income |  | $ | 498 |  |  | $ | 72 |  |  | $ | 185 |  |  | $ | (755) |  |  | $ | 1,205 |  |  | $ | (490) |  |  | $ | — |  |  | $ | (1,222) |
Amount of gain (loss) reclassified from AOCI into income - included component |  | $ | 498 |  |  | $ | 72 |  |  | $ | 185 |  |  | $ | (755) |  |  | $ | 1,205 |  |  | $ | (490) |  |  | $ | — |  |  | $ | (1,222) |
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 September 30, |  | Nine Months Ended September 30,
(Dollars in thousands) |  |  | 2022 |  | 2021 |  | 2022 |  | 2021
Customer loan swaps |  | Other expense |  | $ | 28 |  |  | $ | — |  |  | $ | 166 |  |  | $ | — |
Fixed rate mortgage interest rate lock commitments |  | Mortgage banking income, net |  | (473) |  |  | (434) |  |  | (664) |  |  | 22 |
Forward delivery commitments |  | Mortgage banking income, net |  | 227 |  |  | 65 |  |  | 238 |  |  | 78 |
Total |  |  |  | $ | (218) |  |  | $ | (369) |  |  | $ | (260) |  |  | $ | 100 |

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