v3.25.2
DERIVATIVE INSTRUMENTS (Tables)
12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position
Notional amounts are reference amounts from which contractual obligations are derived and are not recorded on the balance sheet. In our view, derivative notional is not an accurate measure of our derivative exposure when viewed in isolation from other factors, such as market rate fluctuations and counterparty credit risk.
December 31, 2024
December 31, 2023 (restated)
Fair ValueFair Value
(dollars in thousands)AssetsLiabilitiesNotional amountAssetsLiabilitiesNotional amount
Derivatives designated as accounting hedges
Interest rate contracts
Fixed-rate mortgage-backed securities$2,653 $654 $167,363 $— $1,324 $150,000 
Pools of commercial and commercial real estate loans— 4,502 200,000 — 6,654 200,000 
FHLB advances, brokered CDs and other borrowings863 281 75,000 — 465 50,000 
Total derivatives designated as accounting hedges$3,516 $5,437 $442,363 $— $8,443 $400,000 
Derivatives not designated as accounting hedges
Interest rate contracts
Swaps$218 $218 $54,390 $310 $310 $13,832 
Interest rate lock commitments71 — 3,907 62 — 2,405 
Forward commitments to sell mortgage-backed securities32 — 10,198 — 83 5,000 
Total derivatives not designated as accounting hedges$321 $218 $68,495 $372 $393 $21,237 
The following table presents amounts recorded in the consolidated balance sheets related to cumulative basis adjustments for fair value hedges.
Carrying amount of the hedged itemsCumulative amount of fair value hedging adjustment included in the carrying amount of the hedged items
(dollars in thousands)December 31, 2024
December 31, 2023 (restated)
December 31, 2024
December 31, 2023 (restated)
Investment securities available for sale$286,982 $220,501 $3,323 $(1,324)
Schedule of Derivative Instruments, Gain (Loss)
The following table summarizes the effect of derivative instruments in fair value hedging relationships on the consolidated statements of income.
Location of gain (loss) recognized in income on derivativeGain (loss) recognized in income on derivativeLocation of gain (loss) recognized in income on related hedged itemGain (loss) recognized in income on related hedged items
(dollars in thousands)2024202320242023
Years Ended December 31,
Gain (loss) on fair value hedging relationships
Interest rate contracts
Fixed-rate mortgage-backed securitiesInterest income on investment securities available for sale$9,341 $— Interest income on investment securities available for sale$(9,484)$— 
The following table summarizes the effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income.
Gain (loss) recognized in AOCI on derivativeLocation of gain (loss) recognized in income on derivativeGain (loss) reclassified from AOCI into income
(dollars in thousands)2024
2023
(restated)
2022
(restated)
2024
2023
(restated)
2022
(restated)
Years Ended December 31,
Gain (loss) on cash flow hedging relationships
Interest rate contracts
Pools of commercial and commercial real estate loans$(3,705)$(2,242)$2,551 Interest income on loans$(5,857)$(5,588)$113 
Other noninterest income— — 17,531 
FHLB advances, brokered CDs and other borrowings2,013 (210)— Interest expense966 324 — 
Total gain (loss) on cash flow hedging relationships$(1,692)$(2,452)$2,551 $(4,891)$(5,264)$17,644 
During the next 12 months, we estimate $1.9 million of losses will be reclassified into pretax earnings from derivatives designated as cash flow hedges.
The following table summarizes the effect of derivative instruments not designated as accounting hedges on the consolidated statements of income.
(dollars in thousands)Location of gain (loss) recognized in income on derivative2024
2023
(restated)
2022
(restated)
Years Ended December 31,
Gain (loss) on derivative instruments not designated as accounting hedges
Interest rate contractsResidential mortgage banking revenue$123 $(70)$(269)
Other income— 15 (88)
Total gain (loss) on derivative instruments not designated as accounting hedges$123 $(55)$(357)
Disclosure of Credit Derivatives
The following table summarizes the most significant inputs and assumptions in determining the value of the credit enhancement derivatives as well as the resulting fair value as of December 31, 2024 and December 31, 2023:
December 31, 2024December 31, 2023
MacTools commercial portfolioGreensky consumer portfolioLendingPoint consumer portfolioMacTools commercial portfolio
Weighted average interest rate9.50 %10.47 %14.62 %10.50 %
Implied/selected cohort default rate (CDR)15.00 %4.02 %17.50 %15.00 %
Selected LGD85.00 %85.00 %85.00 %85.00 %
Annual expected loss12.75 %3.42 %14.88 %12.75 %
Credit mark(20.66)%(7.18)%(23.82)%(23.32)%
Interest mark10.04 %3.29 %13.23 %13.01 %
Fair value of derivative10.61 %1.56 %(0.34)%10.31 %