XML 41 R30.htm IDEA: XBRL DOCUMENT v3.24.3

DERIVATIVES AND HEDGING (Tables)

9 Months Ended

Sep. 30, 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
September 30, 2024
Derivatives designated as hedging instruments:
Interest rate contracts(1)						$	135,000					Other Assets						$	9,362					$	733,000					Accrued interest and other liabilities						$	4,971
Total derivatives designated as hedging instruments																		$	9,362																	$	4,971
Derivatives not designated as hedging instruments:
Customer loan swaps(1)						$	299,025					Other assets						$	6,413					$	299,025					Accrued interest and other liabilities						$	6,451
Risk participation agreements						27,697						Other assets						—						60,598						Accrued interest and other liabilities						—
Fixed rate mortgage interest rate lock commitments						21,557						Other assets						230						2,667						Accrued interest and other liabilities						14
Forward delivery commitments						7,635						Other assets						81						3,972						Accrued interest and other liabilities						48
Total derivatives not designated as hedging instruments																		$	6,724																	$	6,513
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)						September 30, 2024						December 31, 2023						September 30, 2024						December 31, 2023
Loans(1)						$	376,663					$	374,032					$	1,663					$	(968)
Total						$	376,663					$	374,032					$	1,663					$	(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. As of September 30, 2024 and December 31, 2023, the amortized cost basis of the residential real estate loans used in these hedging relationships was $767.1 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 September 30, 2024
Interest rate contracts						$	—					$	—					$	—					Interest and fees on loans						$	—					$	—					$	—
Interest rate contracts						(3,360)						(3,360)						—						Interest on borrowings						952						952						—
Interest rate contracts						(1,588)						(1,588)						—						Interest on junior subordinated debentures						233						233						—
Total						$	(4,948)					$	(4,948)					$	—											$	1,185					$	1,185					$	—
For Nine Months Ended September 30, 2024
Interest rate contracts						$	(98)					$	(98)					$	—					Interest and fees on loans						$	(1,676)					$	(1,676)					$	—
Interest rate contracts						(675)						(675)						—						Interest on borrowings						2,348						2,348						—
Interest rate contracts						158						158						—						Interest on junior subordinated debentures						687						687						—
Total						$	(615)					$	(615)					$	—											$	1,359					$	1,359					$	—
For the Three Months Ended September 30, 2023
Interest rate contracts						$	(130)					$	(130)					$	—					Interest and fees on loans						$	(909)					$	(909)					$	—
Interest rate contracts						2,033						2,033						—						Interest on borrowings						650						650						—
Interest rate contracts						2,013						2,013						—						Interest on junior subordinated debentures						222						222						—
Total						$	3,916					$	3,916					$	—											$	(37)					$	(37)					$	—
For the Nine Months Ended September 30, 2023
Interest rate contracts						$	(812)					$	(812)					$	—					Interest and fees on loans						$	(2,488)					$	(2,488)					$	—
Interest rate contracts						(1)						(1)						—						Interest on deposits						306						306						—
Interest rate contracts						2,755						2,755						—						Interest on borrowings						1,674						1,674						—
Interest rate contracts						2,485						2,485						—						Interest on junior subordinated debentures						538						538						—
Total						$	4,427					$	4,427					$	—											$	30					$	30					$	—

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 September 30,
						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 and fair value hedges are recorded						$	55,484								$	4,549					$	534					$	50,115					$	20,969					$	3,577					$	539
Gain (loss) on fair value hedging relationships
Interest rate contracts:
Hedged items						$	7,164								$	—					$	—					$	(2,992)					$	—					$	—					$	—
Derivatives designated as hedging instruments						$	(5,616)								$	—					$	—					$	4,404					$	—					$	—					$	—
Gain (loss) on cash flow hedging relationships
Interest rate contracts:
Amount of gain (loss) reclassified from AOCI into income						$	—								$	952					$	233					$	(909)					$	—					$	650					$	222
Amount of gain (loss) reclassified from AOCI into income - included component						$	—								$	952					$	233					$	(909)					$	—					$	650					$	222
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,
						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 and fair value hedges are recorded						$	160,615											$	15,032					$	1,592					$	144,092					$	56,046					$	9,249					$	1,600
Gain (loss) on fair value hedging relationships
Interest rate contracts:
Hedged items						$	2,631											$	—					$	—					$	(9,095)					$	—					$	—					$	—
Derivatives designated as hedging instruments						$	2,024											$	—					$	—					$	12,190					$	—					$	—					$	—
Gain (loss) on cash flow hedging relationships
Interest rate contracts:
Amount of gain (loss) reclassified from AOCI into income						$	(1,676)											$	2,348					$	687					$	2,488					$	306					$	1,674					$	538
Amount of gain (loss) reclassified from AOCI into income - included component						$	(1,676)											$	2,348					$	687					$	2,488					$	306					$	1,674					$	538
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)												2024						2023						2024						2023
Customer loan swaps						Other expense						$	(15)					$	(12)					$	11					$	(1)
Fixed rate mortgage interest rate lock commitments						Mortgage banking income, net						69						(76)						12						(72)
Forward delivery commitments						Mortgage banking income, net						53						62						114						82
Total												$	107					$	(26)					$	137					$	9

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
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C

+ 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
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-SubTopic 10
-Topic 815
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-1A

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-1B

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-8

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-4B

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-1

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-4

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-5

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C

+ 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
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 4CC
-SubTopic 10
-Topic 815
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-4CC

+ Details

Name:	us-gaap_ScheduleOfOtherDerivativesNotDesignatedAsHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration