v3.25.2
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
The Company uses derivatives to manage exposure to market risk, primarily interest rate risk, and to assist customers with their risk management objectives (customer-related derivatives). Management typically designates its risk management derivatives as hedging instruments in a qualifying hedge accounting relationship, while derivatives not designated as qualifying hedges primarily consist of customer-related derivatives.
Cash Flow Hedges
We enter into cash flow hedge relationships to mitigate exposure to the variability of future cash flows from interest rate risk. The Company uses interest rate swaps, floors, caps and collars to manage cash flow changes from the exposure to benchmark interest rates. To qualify for hedge accounting, a formal assessment is prepared to determine whether the hedging relationship, both at inception and on an ongoing basis, is expected to be highly effective in offsetting cash flows attributable to the hedged risk during the term of the cash flow hedge. At inception, a statistical regression analysis is prepared to determine hedge effectiveness. At each reporting period thereafter, a statistical regression or qualitative analysis is performed. Cash flow hedges are recorded at fair value in other assets and accounts payable and other liabilities on the consolidated balance sheets with changes in fair value recorded in AOCI, net of tax. Amounts recorded to AOCI are reclassified into earnings in the same period in which the hedged asset or liability affects earnings through periodic settlements and are presented in the same income statement line item as the earnings effect of the hedged asset or liability.    
Interest Rate Swap, Floor, Cap and Collar Agreements Not Designated as Hedging Derivatives
In order to accommodate the borrowing needs of certain commercial customers, the Company has entered into interest rate agreements with those customers. These interest rate derivative contracts effectively allow the Company’s customers to convert a variable rate loan into a fixed rate loan. In order to offset the exposure and manage interest rate risk, at the time an agreement is entered into with a customer, the Company enters into an interest rate contract with offsetting terms with a correspondent bank counterparty. These derivative instruments are not designated as accounting hedges and changes in the net fair value are recognized in noninterest income. Because the Company acts as an intermediary for its customers, changes in the fair value of the derivative contracts substantially offset each other and do not have a material impact on the Company’s results of operations. The fair value of derivative positions outstanding is included in other assets and accounts payable and other liabilities on the accompanying consolidated balance sheets and in the net change in each of these financial statement line items in the accompanying consolidated statements of cash flows.
The notional amounts and estimated fair values as of June 30, 2025 and December 31, 2024 are as shown in the table below.

 June 30, 2025December 31, 2024
Estimated Fair ValueEstimated Fair Value
(Dollars in thousands)Notional
Amount		Asset DerivativeLiability DerivativeNotional
Amount		Asset DerivativeLiability Derivative
Derivatives designated as hedging instruments (cash flow hedges):
Interest rate swap on money market deposit account payments$— $— $— $250,000 $2,361 $— 
Interest rate swaps on variable rate funding sources275,000 114 2,334 275,000 201 1,821 
Interest rate swaps on customer loan interest payments375,000 — 27,689 375,000 — 39,517 
Interest rate collars on customer loan interest payments700,000 8,068 173 700,000 3,780 555 
Interest rate floor on customer loan interest payments200,000 1,553 — 200,000 1,444 — 
Total derivatives designated as hedging instruments$1,550,000 $9,735 $30,196 $1,800,000 $7,786 $41,893 
Derivatives not designated as hedging instruments:      
Financial institution counterparty:      
Interest rate swaps$861,988 $13,006 $6,523 $857,625 $25,328 $1,651 
Interest rate caps and collars43,070 — 556 4,000 — — 
Commercial customer counterparty:
Interest rate swaps861,988 6,134 12,383 857,625 1,514 24,817 
Interest rate caps and collars43,070 518 — 4,000 — — 
Total derivatives not designated as hedging instruments$1,810,116 $19,658 $19,462 $1,723,250 $26,842 $26,468 
Offsetting derivative assets/liabilities— (22,579)(22,579)— (28,239)(28,239)
Total derivatives$3,360,116 $6,814 $27,079 $3,523,250 $6,389 $40,122 
Pre-tax (loss) gain included in the consolidated statements of income and related to derivative instruments for the three and six months ended June 30, 2025 and 2024 were as follows.
For the Three Months Ended June 30, 2025For the Three Months Ended June 30, 2024
(Dollars in thousands)(Loss) gain recognized in other comprehensive income on derivativeGain (loss) reclassified from AOCI into incomeLocation of (loss) gain reclassified from AOCI into incomeGain (loss) recognized in other comprehensive income on derivativeGain (loss) reclassified from AOCI into incomeLocation of (loss) gain reclassified from AOCI into income
Derivatives designated as hedging instruments (cash flow hedges):
Interest rate swap on borrowing advances$(1,093)$1,093 Interest Expense$(1,094)$1,094 Interest Expense
Interest rate swaps on variable rate funding sources74 (5)Interest Expense(1,835)3,517 Interest Expense
Interest rate swaps, collars and floors on customer loan interest payments7,584 (4,160)Interest Income701 (5,499)Interest Income
Total$6,565 $(3,072)$(2,228)$(888)
Net gain recognized in other noninterest incomeNet gain recognized in other noninterest income
Derivatives not designated as hedging instruments:
Interest rate swaps, caps and collars$1,550 $326 

For the Six Months Ended June 30, 2025For the Six Months Ended June 30, 2024
(Dollars in thousands)(Loss) gain recognized in other comprehensive income on derivativeGain (loss) reclassified from AOCI into incomeLocation of (loss) gain reclassified from AOCI into incomeGain (loss) recognized in other comprehensive income on derivativeGain (loss) reclassified from AOCI into incomeLocation of (loss) gain reclassified from AOCI into income
Derivatives designated as hedging instruments (cash flow hedges):
Interest rate swap on borrowing advances$(2,175)$2,175 Interest Expense$(2,187)$2,187 Interest Expense
Interest rate swaps on variable rate funding sources(2,961)2,397 Interest Expense14 6,956 Interest Expense
Interest rate swaps, collars and floors on customer loan interest payments18,417 (8,180)Interest Income(8,550)(10,867)Interest Income
Total$13,281 $(3,608)$(10,723)$(1,724)
Net gain recognized in other noninterest incomeNet gain recognized in other noninterest income
Derivatives not designated as hedging instruments:
Interest rate swaps, caps and collars$2,250 $775