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DERIVATIVES AND HEDGING (Tables)

3 Months Ended

Mar. 31, 2024

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
(Dollars in thousands)						Notional Amount						Location						Fair Value						Notional Amount						Location						Fair Value
March 31, 2024
Derivatives designated as hedging instruments:
Interest rate contracts(1)						$	568,000					Other Assets						$	17,636					$	125,000					Accrued interest and other liabilities						$	1,239
Total derivatives designated as hedging instruments																		$	17,636																	$	1,239
Derivatives not designated as hedging instruments:
Customer loan swaps(1)						$	295,892					Other assets						$	14,343					$	295,892					Accrued interest and other liabilities						$	14,373
Risk participation agreements						27,951						Other assets						—						61,310						Accrued interest and other liabilities						—
Fixed rate mortgage interest rate lock commitments						17,354						Other assets						331						2,011						Accrued interest and other liabilities						29
Forward delivery commitments						3,355						Other assets						76						6,086						Accrued interest and other liabilities						72
Total derivatives not designated as hedging instruments																		$	14,750																	$	14,474
December 31, 2023
Derivatives designated as hedging instruments:
Interest rate contracts(1)						$	435,000					Other assets						$	12,206					$	258,000					Accrued interest and other liabilities						$	3,387
Total derivatives designated as hedging instruments																		$	12,206																	$	3,387
Derivatives not designated as hedging instruments:
Customer loan swaps(1)						$	298,143					Other assets						$	10,699					$	298,143					Accrued interest and other liabilities						$	10,748
Risk participation agreements						28,077						Other assets						—						52,193						Accrued interest and other liabilities						—
Fixed rate mortgage interest rate lock commitments						10,924						Other assets						215						2,092						Accrued interest and other liabilities						11
Forward delivery commitments						3,445						Other assets						51						6,706						Accrued interest and other liabilities						132
Total derivatives not designated as hedging instruments																		$	10,965																	$	10,891

(1)    Reported fair values include accrued interest receivable and payable.

The following table shows the carrying amount and associated cumulative basis adjustments related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships:

Location in Consolidated Statements of Condition						Carrying Amount of Hedged Assets/(Liabilities)												Cumulative Fair Value Hedging Adjustment in the Carrying Amount of the Hedged Assets/(Liabilities)
(Dollars in thousands)						March 31, 2024						December 31, 2024						March 31, 2024						December 31, 2023
Loans(1)						$	369,616					$	374,032					$	(5,384)					$	(968)
Total						$	369,616					$	374,032					$	(5,384)					$	(968)

(1)    These amounts include the amortized cost basis of residential real estate loans that were used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At March 31, 2024 and December 31, 2023, the amortized cost basis of the residential real estate loans used in these hedging relationships was $795.4 million and $806.5 million, respectively, and the amount of the designated hedged residential loans was $375.0 million.

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
For the Three Months Ended March 31, 2024
Interest rate contracts						$	(88)					$	(88)					$	—					Interest and fees on loans						$	(936)					$	(936)					$	—
Interest rate contracts						1,989						1,989						—						Interest on borrowings						678						678						—
Interest rate contracts						1,265						1,265						—						Interest on junior subordinated debentures						227						227						—
Total						$	3,166					$	3,166					$	—											$	(31)					$	(31)					$	—
For the Three Months Ended March 31, 2023
Interest rate contracts						$	182					$	182					$	—					Interest and fees on loans						$	(717)					$	(717)					$	—
Interest rate contracts						(1)						(1)						—						Interest on deposits						306						306						—
Interest rate contracts						(796)						(796)						—						Interest on borrowings						487						487						—
Interest rate contracts						(934)						(934)						—						Interest on junior subordinated debentures						133						133						—
Total						$	(1,549)					$	(1,549)					$	—											$	209					$	209					$	—

The table below presents the effect of fair value and 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 March 31,
						2024																		2023
(Dollars in thousands)						Interest and fees on loans									Interest on borrowings						Interest on junior subordinated debentures						Interest and fees on loans						Interest on deposits						Interest on borrowings						Interest on junior subordinated debentures
Total presented on the consolidated statements of income in which the effects of cash flow hedges are recorded						$	51,709								$	5,198					$	534					$	45,332					$	15,832					$	2,085					$	528
Gain (loss) on fair value hedging relationships
Interest rate contracts:
Hedged items						$	(4,416)								$	—					$	—					$	1,552					$	—					$	—					$	—
Derivatives designated as hedging instruments						$	5,961								$	—					$	—					$	(1,077)					$	—					$	—					$	—
Gain (loss) on cash flow hedging relationships
Interest rate contracts:
Amount of gain (loss) reclassified from AOCI into income						$	(936)								$	678					$	227					$	(717)					$	306					$	487					$	133
Amount of gain (loss) reclassified from AOCI into income - included component						$	(936)								$	678					$	227					$	(717)					$	306					$	487					$	133
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 March 31,
(Dollars in thousands)												2024						2023
Customer loan swaps						Other expense						$	19					$	(27)
Fixed rate mortgage interest rate lock commitments						Mortgage banking income, net						85						84
Forward delivery commitments						Mortgage banking income, net						98						(96)
Total												$	202					$	(39)

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