XML 61 R40.htm IDEA: XBRL DOCUMENT

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2024

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

Schedule of Information About Derivative Assets and Liabilities


		December 31, 2024
					Weighted
		Notional			Average			Fair Value			Location Fair
		Amount			Maturity			Asset (Liability)			Value Asset
		(in thousands)			(in years)			(in thousands)			(Liability)
Cash flow hedges:
Interest rate swap on wholesale funding		$	25,000			0.3		$	261		Other assets
Interest rate swap on variable rate loans			50,000			1.2			(2,036)		Other liabilities
Total cash flow hedges			75,000						(1,775)

Fair value hedges:
Interest rate swap on securities			37,190			4.6			3,969		Other assets
Total fair value hedges			37,190						3,969

Economic hedges:
Forward sale commitments			4,786			—			13		Other assets
Customer Loan Swaps-MNA Counterparty			240,031			4.3			(14,243)		Other liabilities
Customer Loan Swaps-RPA Counterparty			162,302			5.2			(286)		Other liabilities
Customer Loan Swaps-Customer			402,333			4.7			14,529		Other assets
Total economic hedges			809,452						13

Non-hedging derivatives:
Interest rate lock commitments			3,760			0.1			85		Other assets
Total non-hedging derivatives			3,760						85

Total		$	925,402					$	2,292


		December 31, 2023
					Weighted
		Notional			Average			Fair Value			Location Fair
		Amount			Maturity			Asset (Liability)			Value Asset
		(in thousands)			(in years)			(in thousands)			(Liability)
Cash flow hedges:
Interest rate swap on wholesale funding		$	75,000			1.0		$	2,803		Other assets
Interest rate swap on variable rate loans			50,000			2.2			(3,459)		Other liabilities
Total cash flow hedges			125,000						(656)

Fair value hedges:
Interest rate swap on securities			37,190			5.6			3,844		Other assets
Total fair value hedges			37,190						3,844

Economic hedges:
Forward sale commitments			5,000			—			(20)		Other liabilities
Customer Loan Swaps-MNA Counterparty			197,683			4.9			(14,842)		Other liabilities
Customer Loan Swaps-RPA Counterparty			133,703			4.9			(286)		Other liabilities
Customer Loan Swaps-Customer			331,386			4.9			15,128		Other assets
Total economic hedges			667,772						(20)

Non-hedging derivatives:
Interest rate lock commitments			3,153			0.1			63		Other assets
Total non-hedging derivatives			3,153						63

Total		$	833,115					$	3,231

Schedule of Amounts Recorded On The Balance Sheet


							Cumulative Amount of Fair
		Location of Hedged Item on		Carrying Amount of Hedged			Value Hedging Adjustment in
		Balance Sheet		Assets			Carrying Amount
December 31, 2024
Interest rate swap on securities		Securities available for sale		$	31,627		$	(5,563)

December 31, 2023
Interest rate swap on securities		Securities available for sale		$	32,680		$	(4,510)

Schedule of Derivative Instruments Gain (Loss)


		Year Ended December 31, 2024
		Amount of					Amount of
		Gain (Loss)					Gain (Loss)
		Recognized in					Reclassified			Location of		Amount of
		Other			Location of Gain (Loss)		from Other			Gain (Loss)		Gain (Loss)
		Comprehensive			Reclassified from Other		Comprehensive			Recognized in		Recognized
(in thousands)		Income			Comprehensive Income		Income			Income		in Income
Cash flow hedges:
Interest rate swap on wholesale funding		$	(1,941)		Interest expense		$	—		Interest expense		$	3,020
Interest rate swap on variable rate loans			1,082		Interest income			—		Interest income			(2,269)
Total cash flow hedges			(859)					—					751

Fair value hedges:
Interest rate swap on securities			(713)		Interest income			—		Interest income			1,429
Total fair value hedges			(713)					—					1,429

Economic hedges:
Forward commitments			—		Other income			—		Mortgage banking income			33
Total economic hedges			—					—					33

Non-hedging derivatives:
Interest rate lock commitments			—		Other income			—		Mortgage banking income			22
Total non-hedging derivatives			—					—					22

Total		$	(1,572)				$	—				$	2,235

(1)	As of December 31, 2024, we do not expect any gains or losses from accumulated other comprehensive income into earnings within the next 12 months.


		Year Ended December 31, 2023
		Amount of					Amount of
		Gain (Loss)					Gain (Loss)
		Recognized in					Reclassified			Location of		Amount of
		Other			Location of Gain (Loss)		from Other			Gain (Loss)		Gain (Loss)
		Comprehensive			Reclassified from Other		Comprehensive			Recognized in		Recognized
(in thousands)		Income			Comprehensive Income		Income			Income		in Income
Cash flow hedges:
Interest rate swap on wholesale funding		$	(1,687)		Interest expense		$	—		Interest expense		$	3,062
Interest rate swap on variable rate loans			1,157		Interest income			—		Interest income			(2,167)
Total cash flow hedges			(530)					—					895

Fair value hedges:
Interest rate swap on securities			1,314		Interest income			—		Interest income			1,359
Total economic hedges			1,314					—					1,359

Economic hedges:
Forward commitments			—		Other income			—		Mortgage banking income			(20)
Total economic hedges			—					—					(20)

Non-hedging derivatives:
Interest rate lock commitments			—		Other income			—		Mortgage banking income			(20)
Total non-hedging derivatives			—					—					(20)

Total		$	784				$	—				$	2,214

Schedule of Gain Loss in Statement of Income


		Year Ended December 31, 2024
		Interest and Dividend Income						Interest Expense
(in thousands)		Loans			Securities and other			Deposits			Borrowings			Non-interest Income
Income and expense line items presented in the consolidated statements of income		$	163,846		$	24,878		$	61,696		$	13,189		$	36,888

The effects of cash flow and fair value hedging:

Gain (loss) on cash flow hedges:
Interest rate swap on wholesale funding			—			—			—			3,020			—
Interest rate swap on variable rate loans			(2,269)			—			—			—			—

Gain (loss) on fair value hedges:
Interest rate swap on securities			—			1,429			—			—			—

		Year Ended December 31, 2023
		Interest and Dividend Income						Interest Expense
(in thousands)		Loans			Securities and other			Deposits			Borrowings			Non-interest Income
Income and expense line items presented in the consolidated statements of income		$	149,420		$	24,762		$	38,232		$	18,275		$	35,829

The effects of cash flow and fair value hedging:

Gain (loss) on cash flow hedges:
Interest rate swap on wholesale funding			—			—			—			3,062			—
Interest rate swap on variable rate loans			(2,167)			—			—			—			—

Gain (loss) on fair value hedges:
Interest rate swap on securities			—			1,359			—			—			—

Schedule of derivatives no designated as hedging instruments on the consolidated statements of income


		Location of Gain (Loss) Recognized		Year Ended December 31,
(In thousands)		in Non-interest Income		2024				2023
Economic hedges:
Forward commitments		Mortgage banking income		$	33		$	(20)

Non-hedging derivatives:
Interest rate lock commitments		Mortgage banking income			22			(20)

Schedule of Offsetting Liabilities


		Gross Amounts Offset in the Consolidated Balance Sheet
		Derivative						Cash Collateral
(in thousands)		Liabilities			Derivative Assets			Pledged			Net Amount
As of December 31, 2024
Customer Loan Derivatives:
MNA counterparty		$	(14,243)		$	14,243		$	—		$	—
RPA counterparty			(286)			286			—			—
Total		$	(14,529)		$	14,529		$	—		$	—

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 + Details