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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 12 Months Ended
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

 
$
—