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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended
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Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of information about derivative assets and liabilities | Information about derivative assets and liabilities at December 31, 2019 and December 31, 2018, follows:
|  | December 31, 2019
|  | Notional Amount |  | Weighted Average Maturity |  | Fair Value Asset (Liability) |  | Location Fair Value Asset (Liability)
|  | (in thousands) |  | (in years) |  | (in thousands) |  |
Cash flow hedges: |  |  |  |  |  |  |  |  |  |
Interest rate swap on deposits |  | $ | 100,000 |  |  | 4.6 |  | $ | (1,311 | ) |  | Other liabilities
Total cash flow hedges |  | 100,000 |  |  |  |  | (1,311 | ) |  |
Fair value hedges: |  |  |  |  |  |  |  |  |  |
Interest rate swap on securities |  | 37,190 |  |  | 9.6 |  | 593 |  |  | Other liabilities
Total fair value hedges |  | 37,190 |  |  |  |  | 593 |  |  |
Economic hedges: |  |  |  |  |  |  |  |  |  |
Forward sale commitments |  | 11,228 |  |  | 0.1 |  | (84 | ) |  | Other liabilities
Customer Loan Swaps - MNA Counterparty |  | 135,598 |  |  | 7.5 |  | (4,669 | ) |  | (1)
Customer Loan Swaps - RPA Counterparty |  | 69,505 |  |  | 8.8 |  | (3,377 | ) |  | (1)
Customer Loan Swaps - Customer |  | 205,103 |  |  | 8.1 |  | 8,046 |  |  | (1)
Total economic hedges |  | 421,434 |  |  |  |  | (84 | ) |  |
Non-hedging derivatives: |  |  |  |  |  |  |  |
Interest rate lock commitments |  | 21,748 |  |  | 0.1 |  | 59 |  |  | Other assets
Total non-hedging derivatives |  | 21,748 |  |  |  |  | 59 |  |  |
Total |  | $ | 580,372 |  |  |  |  | $ | (743 | ) |  |
(1) | Customer loan derivatives are subject to MNA or RPA arrangements with financial institution counterparties, thus assets and liabilities with the counterparty are netted for financial statement presentation.
|  | December 31, 2018
|  | Notional Amount |  | Weighted Average Maturity |  | Fair Value Asset (Liability) |  | Location Fair Value Asset (Liability)
|  | (in thousands) |  | (in years) |  | (in thousands) |  |
Cash flow hedges: |  |  |  |  |  |  |  |  |  |
Interest rate caps agreements |  | $ | 90,000 |  |  | 4.1 |  | $ | 803 |  |  | Other liabilities
Total cash flow hedges |  | 90,000 |  |  |  |  | 803 |  |  |
Non-hedging derivatives: |  |  |  |  |  |  |  |  |  |
Interest rate lock commitments |  | 957 |  |  | 0.1 |  | 8 |  |  | Other assets
Customer loan derivative liability |  | 45,641 |  |  | 9.9 |  | (1,353 | ) |  | (1)
Customer loan derivative asset |  | 45,641 |  |  | 9.9 |  | 1,353 |  |  | (1)
Total non-hedging derivatives |  | 92,239 |  |  |  |  | 8 |  |  |
Total |  | $ | 182,239 |  |  |  |  | $ | 811 |  |  |
(1) | Customer loan derivatives are subject to MNA or RPA arrangements with financial institution counterparties, thus assets and liabilities with the counterparty are netted for financial statement presentation.
As of December 31, 2019, and 2018, the following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges:
|  | Location of Hedged Item on Balance Sheet |  | Carrying Amount of Hedged Assets (Liabilities) |  | Cumulative Amount of Fair Value Hedging Adjustment in Carrying Amount
December 31, 2019 |  |  |  |  |  |
Fair value hedges: |  |  |  |  |  |
Interest rate swap on securities |  | Securities Available for Sale |  | $ | 39,026 |  |  | $ | 523 |
December 31, 2018 |  |  |  |  |  |
Fair value hedges: |  |  |  |  |  |
Interest rate swap on securities |  | Securities Available for Sale |  | $ | — |  |  | $ | — |
Information about derivative assets and liabilities for December 31, 2019 and December 31, 2018, follows:
|  | Twelve Months Ended December 31, 2019
(in thousands) |  | Amount of Gain (Loss) Recognized in Other Comprehensive Income |  | Location of Gain (Loss) Reclassified from Other Comprehensive Income |  | Amount of Gain (Loss) Reclassified from Other Comprehensive Income(1) |  | Location of Gain (Loss) Recognized in Income |  | Amount of Gain (Loss) Recognized in Income
Cash flow hedges: |  |  |  |  |  |  |  |  |  |
Interest rate cap agreements |  | $ | — |  |  | Acquisition, restructuring, and other expenses |  | $ | 3,156 |  |  | Interest expense |  | $ | (603 | )
Interest rate swap on deposits |  | 2,291 |  |  | Interest expense |  | — |  |  | Interest expense |  | (2 | )
Total cash flow hedges |  | 2,291 |  |  |  |  | 3,156 |  |  |  |  | (605 | )
Fair value hedges: |  |  |  |  |  |  |  |  |  |
Interest rate swap on securities |  | (523 | ) |  | Interest income |  | — |  |  | Interest income |  | 7 |
Total fair value hedges |  | (523 | ) |  |  |  | — |  |  |  |  | 7 |
Economic hedges: |  |  |  |  |  |  |  |  |  |
Forward commitments |  | — |  |  | Other income |  | — |  |  | Other income |  | (84 | )
Total economic hedges |  | — |  |  |  |  | — |  |  |  |  | (84 | )
Non-hedging derivatives: |  |  |  |  |  |  |  |  |  |
Interest rate lock commitments |  | — |  |  | Other Income |  | — |  |  | Other Income |  | 52 |
Total non-hedging derivatives |  | — |  |  |  |  | — |  |  |  |  | 52 |
Total |  | $ | 1,768 |  |  |  |  | $ | 3,156 |  |  |  |  | $ | (630 | )
(1) | As of December 31, 2019 the Company does not expect any gains or losses from accumulated other comprehensive income into earnings withing the next 12 months.
|  | Twelve Months Ended December 31, 2018
(in thousands) |  | Amount of Gain (Loss) Recognized in Other Comprehensive Income |  | Location of Gain (Loss) Reclassified from Other Comprehensive Income |  | Amount of Gain (Loss) Reclassified from Other Comprehensive Income(1) |  | Location of Gain (Loss) Recognized in Income |  | Amount of Gain (Loss) Recognized in Income
Cash flow hedges: |  |  |  |  |  |  |  |  |  |
Interest rate cap agreements |  | $ | 486 |  |  | Acquisition, restructuring, and other expenses |  | $ | — |  |  | Interest expense |  | $ | (519 | )
Total cash flow hedges |  | 486 |  |  |  |  | — |  |  |  |  | (519 | )
Economic hedges: |  |  |  |  |  |  |  |  |  |
Forward commitments |  | — |  |  | Other income |  | — |  |  | Other income |  | 221 |
Total economic hedges |  | — |  |  |  |  | — |  |  |  |  | — |
Non-hedging derivatives: |  |  |  |  |  |  |  |  |  |
Interest rate lock commitments |  | — |  |  | Other Income |  | — |  |  | Other Income |  | 9 |
Total non-hedging derivatives |  | — |  |  |  |  | — |  |  |  |  | 9 |
Total |  | $ | 486 |  |  |  |  | $ | — |  |  |  |  | $ | (510 | )
(1) | As of December 31, 2019 the Company does not expect any gains or losses from accumulated other comprehensive income into earnings withing the next 12 months.
Offsetting Liabilities | The below table describes the potential effect of master netting arrangements on the consolidated balance sheet and the financial collateral pledged for these arrangements:
|  | Gross Amounts Offset in the Consolidated Balance Sheet
(in thousands) |  | Derivative Liabilities |  | Derivative Assets |  | Cash Collateral Pledged |  | Net Amount
As of December 31, 2019 |  |  |  |  |  |  |  |
Customer Loan Derivatives: |  |  |  |  |  |  |  |
MNA counterparty |  | $ | (4,669 | ) |  | $ | 4,669 |  |  | $ | 10,700 |  |  | $ | — |
RPA counterparty |  | (3,377 | ) |  | 3,377 |  |  | — |  |  | — |
Total |  | $ | (8,046 | ) |  | $ | 8,046 |  |  | $ | 10,700 |  |  | $ | — |
Offsetting Assets | The below table describes the potential effect of master netting arrangements on the consolidated balance sheet and the financial collateral pledged for these arrangements:
|  | Gross Amounts Offset in the Consolidated Balance Sheet
(in thousands) |  | Derivative Liabilities |  | Derivative Assets |  | Cash Collateral Pledged |  | Net Amount
As of December 31, 2019 |  |  |  |  |  |  |  |
Customer Loan Derivatives: |  |  |  |  |  |  |  |
MNA counterparty |  | $ | (4,669 | ) |  | $ | 4,669 |  |  | $ | 10,700 |  |  | $ | — |
RPA counterparty |  | (3,377 | ) |  | 3,377 |  |  | — |  |  | — |
Total |  | $ | (8,046 | ) |  | $ | 8,046 |  |  | $ | 10,700 |  |  | $ | — |

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