Derivative Instruments and Hedging Activities (Tables)
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6 Months Ended |
Jun. 30, 2025 |
Derivative Instruments and Hedging Activities |
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Summary of the Company's RPA's to facilitate customer transactions |
The following table presents a summary of the Company’s RPA as of June 30, 2025 and December 31, 2024: | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | December 31, 2024 | | | Location of | | Notional | | Fair Value | | Notional | | Fair Value | (dollars in thousands) | | Gain (Loss) | | Amount | | Assets | | Liabilites | | Amount | | Assets | | Liabilites | Risk Participation Agreement | | Other Income | | $ | 9,987 | | $ | — | | $ | 19 | | $ | — | | $ | — | | $ | — |
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Effect of derivative instruments in cash flow hedging relationships |
The following table presents the effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income for the three and six months ended June 30, 2025 and 2024: | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | (dollars in thousands) | | 2025 | | 2024 | | 2025 | | 2024 | Derivatives in | | Location of Gain | | Gain | | Gain | Cash Flow Hedging | | Reclassified | | Reclassified from | | Reclassified from | Relationships | | from AOCI into Income | | AOCI into Earnings | | AOCI into Earnings | Interest rate swaps | | Interest expense | | $ | 707 | | $ | 1,475 | | $ | 1,635 | | $ | 3,071 | Interest rate caps | | Interest expense | | | 910 | | | 854 | | | 1,814 | | | 1,561 |
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Schedule of fair value hedge relationships on the income statement and balance sheet |
The effects of the Company’s fair value hedge relationships on the income statement during the three and six months ended June 30, 2025 and 2024 were as follows: | | | | | | | | | | | | | | | | | | | Amount of Gain (Loss) Recognized in Income | (dollars in thousands) | | Three Months Ended June 30, | | Six Months Ended June 30, | Securities | | Location of Gain (Loss) | | 2025 | | 2024 | | 2025 | | 2024 | Interest Rate Swaps | | Interest Income | | $ | 393 | | | — | | $ | (3,532) | | | — | Securities Available for Sale | | Interest Income | | | (393) | | | — | | | 3,532 | | | — |
The following table presents amounts that were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges at June 30, 2025 and December 31, 2024: | | | | | | | | | | | | | | | | | | | | | | Cumulative Amount of Fair Value Hedging Adjustment | | | | | | | | | | Included in the Carrying Amount of the Hedged | (dollars in thousands) | | Carrying Amount of The Hedged Assets/Liabilities | | | Assets/Liabilities | Line Item on the Balance Sheet | | June 30, 2025 | | December 31, 2024 | | June 30, 2025 | | December 31, 2024 | Securities Available for Sale | | $ | 201,942 | | | 156,337 | | $ | 6,955 | | | 10,487 |
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Schedule of derivative instruments eligible for offset |
The following table summarizes gross and net information about derivative instruments that are eligible for offset in the balance sheet at June 30, 2025 and December 31, 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gross Amounts Not Offset in the Balance Sheet | | | | | | | | | | | | Net Amounts of | | | | | | | | Gross Amounts | | Gross Amounts | | Assets (Liabilities) | | | | | | | | of Recognized | | Offset in the | | Presented in the | | Financial | | Cash Collateral | | Net Assets | (dollars in thousands) | | Assets (Liabilities) | | Balance Sheet | | Balance Sheet | | Instruments | | Received | | (Liabilities) | June 30, 2025 | | | | | | | | | | | | | | | | | | | Assets | | $ | 33,419 | | $ | — | | $ | 33,419 | | $ | — | | $ | 28,353 | | $ | 5,066 | Liabilities | | | (10,345) | | | — | | | (10,345) | | | — | | | — | | | (10,345) | | | | | | | | | | | | | | | | | | | | December 31, 2024 | | | | | | | | | | | | | | | | | | | Assets | | $ | 43,155 | | $ | — | | $ | 43,155 | | $ | — | | $ | 44,233 | | $ | (1,078) | Liabilities | | | (8,210) | | | — | | | (8,210) | | | — | | | — | | | (8,210) |
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Derivatives not designated as hedging instruments | Interest Rate Swaps |
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Derivative Instruments and Hedging Activities |
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Summary of interest rate derivatives |
The following table presents a summary of the Company’s interest rate swaps to facilitate customer transactions as of June 30, 2025 and December 31, 2024: | | | | | | | | | | | | | | | June 30, 2025 | | December 31, 2024 | | | Notional | | Estimated | | Notional | | Estimated | (dollars in thousands) | | Amount | | Fair Value | | Amount | | Fair Value | Interest rate swap agreements: | | | | | | | | | | | | | Assets | | $ | 165,375 | | $ | 8,790 | | $ | 115,577 | | $ | 8,210 | Liabilities | | | 165,375 | | | (8,790) | | | 115,577 | | | (8,210) | Total | | $ | 330,750 | | $ | — | | $ | 231,154 | | $ | — |
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Designated as Hedging Instrument |
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Derivative Instruments and Hedging Activities |
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Summary of interest rate derivatives |
The following table presents a summary of the Company’s interest rate contracts as of June 30, 2025 and December 31, 2024: | | | | | | | | | | | | | | | June 30, 2025 | | December 31, 2024 | | | Notional | | Estimated | | Notional | | Estimated | (dollars in thousands) | | Amount | | Fair Value | | Amount | | Fair Value | Interest Rate Swap Agreements - Borrowings: | | | | | | | | | | | | | Assets | | $ | 85,000 | | $ | 2,290 | | $ | 178,000 | | $ | 5,139 | Liabilities | | | 98,000 | | | (979) | | | — | | | — | Interest Rate Swap Agreements - Securities: | | | | | | | | | | | | | Assets | | | 145,850 | | | 7,531 | | | 145,850 | | | 10,487 | Liabilities | | | 49,137 | | | (576) | | | — | | | — | Interest Rate Cap Agreements: | | | | | | | | | | | | | Assets | | | 125,000 | | | 14,808 | | | 125,000 | | | 19,319 |
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Designated as Hedging Instrument | Interest Rate Swaps | Cash Flow Hedging |
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Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities |
The following table presents a summary of the Company’s interest rate swaps designated as cash flow hedges as of June 30, 2025 and December 31, 2024: | | | | | | | | (dollars in thousands) | | June 30, 2025 | | December 31, 2024 | | Notional Amount | | $ | 183,000 | | $ | 178,000 | | Weighted Average Pay Rate | | | 2.87 | % | | 2.20 | % | Weighted Average Receive Rate | | | 4.36 | % | | 4.80 | % | Weighted Average Maturity (Years) | | | 4.67 | | | 4.02 | | Net Unrealized Gain | | $ | 1,311 | | $ | 5,139 | |
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Designated as Hedging Instrument | Interest Rate Swaps | Fair Value Hedging |
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Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities |
The following table presents a summary of the Company’s interest rate swaps designated as fair value hedges as of June 30, 2025 and December 31, 2024: | | | | | | | | (dollars in thousands) | | June 30, 2025 | | December 31, 2024 | | Notional Amount | | $ | 194,987 | | $ | 145,850 | | Weighted Average Pay Rate | | | 3.60 | % | | 3.52 | % | Weighted Average Receive Rate | | | 4.32 | | | 4.82 | | Weighted Average Maturity (Years) | | | 17.71 | | | 19.47 | |
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Designated as Hedging Instrument | Interest Rate Caps | Cash Flow Hedging |
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Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities |
The following table presents a summary of the Company’s interest rate caps designated as cash flow hedges as of June 30, 2025 and December 31, 2024: | | | | | | | | (dollars in thousands) | | June 30, 2025 | | December 31, 2024 | | Notional Amount | | $ | 125,000 | | $ | 125,000 | | Unamortized Premium Paid | | | 3,888 | | | 4,281 | | Weighted Average Strike Rate | | | 0.96 | % | | 0.96 | % | Weighted Average Maturity (Years) | | | 4.85 | | | 5.34 | |
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