DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
|
6 Months Ended |
Jun. 30, 2025 |
|---|
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES |
|
| Schedule of Information About Derivative Assets and Liabilities |
| | | | | | | | | | | | | | June 30, 2025 | | | | | 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 | | $ | — | | | — | | $ | — | | Other assets | Interest rate swap on variable rate loans | | | 50,000 | | | 0.7 | | | (1,188) | | Other liabilities | Total cash flow hedges | | | 50,000 | | | | | | (1,188) | | | | | | | | | | | | | | | Fair value hedges: | | | | | | | | | | | | Interest rate swap on securities | | | 37,190 | | | 4.1 | | | 2,744 | | Other assets | Total fair value hedges | | | 37,190 | | | | | | 2,744 | | | | | | | | | | | | | | | Economic hedges: | | | | | | | | | | | | Forward sale commitments | | | 7,450 | | | — | | | (54) | | Other liabilities | Customer Loan Swaps-MNA Counterparty | | | 255,282 | | | 3.8 | | | (7,678) | | Other liabilities | Customer Loan Swaps-RPA Counterparty | | | 170,194 | | | 5.3 | | | (1,965) | | Other liabilities | Customer Loan Swaps-Customer | | | 425,476 | | | 4.4 | | | 9,643 | | Other assets | Total economic hedges | | | 858,402 | | | | | | (54) | | | | | | | | | | | | | | | Non-hedging derivatives: | | | | | | | | | | | | Interest rate lock commitments | | | 5,193 | | | 0.1 | | | 238 | | Other assets | Total non-hedging derivatives | | | 5,193 | | | | | | 238 | | | | | | | | | | | | | | | Total | | $ | 950,785 | | | | | $ | 1,740 | | |
| | | | | | | | | | | | | | 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 | | |
|
| 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 | June 30, 2025 | | | | | | | | | Interest rate swap on securities | | Securities available for sale | | $ | 29,208 | | $ | (7,982) | | | | | | | | | | December 31, 2024 | | | | | | | | | Interest rate swap on securities | | Securities available for sale | | $ | 31,627 | | $ | (5,563) |
|
| Schedule of Derivative Instruments Gain (Loss) |
| | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | | 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 | | $ | (12) | | Interest expense | | $ | — | | Interest expense | | $ | 17 | Interest rate swap on variable rate loans | | | 285 | | Interest income | | | — | | Interest income | | | (459) | Total cash flow hedges | | | 273 | | | | | — | | | | | (442) | | | | | | | | | | | | | | | Fair value hedges: | | | | | | | | | | | | | | Interest rate swap on securities | | | (1,115) | | Interest income | | | — | | Interest income | | | 278 | Total fair value hedges | | | (1,115) | | | | | — | | | | | 278 | | | | | | | | | | | | | | | Economic hedges: | | | | | | | | | | | | | | Forward commitments | | | — | | Other income | | | — | | Mortgage banking income | | | (46) | Total economic hedges | | | — | | | | | — | | | | | (46) | | | | | | | | | | | | | | | Non-hedging derivatives: | | | | | | | | | | | | | | Interest rate lock commitments | | | — | | Other income | | | — | | Mortgage banking income | | | 124 | Total non-hedging derivatives | | | — | | | | | — | | | | | 124 | | | | | | | | | | | | | | | Total | | $ | (842) | | | | $ | — | | | | $ | (86) |
| | | | | | | | | | | | | | | | Three Months Ended June 30, 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 | | $ | (528) | | Interest expense | | $ | — | | Interest expense | | $ | 828 | Interest rate swap on variable rate loans | | | 262 | | Interest income | | | — | | Interest income | | | (585) | Total cash flow hedges | | | (266) | | | | | — | | | | | 243 | | | | | | | | | | | | | | | Fair value hedges: | | | | | | | | | | | | | | Interest rate swap on securities | | | 28 | | Interest income | | | — | | Interest income | | | 371 | Total economic hedges | | | 28 | | | | | — | | | | | 371 | | | | | | | | | | | | | | | Economic hedges: | | | | | | | | | | | | | | Forward commitments | | | — | | Other income | | | — | | Mortgage banking income | | | 31 | Total economic hedges | | | — | | | | | — | | | | | 31 | | | | | | | | | | | | | | | Non-hedging derivatives: | | | | | | | | | | | | | | Interest rate lock commitments | | | — | | Other income | | | — | | Mortgage banking income | | | 90 | Total non-hedging derivatives | | | — | | | | | — | | | | | 90 | | | | | | | | | | | | | | | Total | | $ | (238) | | | | $ | — | | | | $ | 735 |
| | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | | 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 | | $ | (200) | | Interest expense | | $ | — | | Interest expense | | $ | 269 | Interest rate swap on variable rate loans | | | 656 | | Interest income | | | — | | Interest income | | | (914) | Total cash flow hedges | | | 456 | | | | | — | | | | | (645) | | | | | | | | | | | | | | | Fair value hedges: | | | | | | | | | | | | | | Interest rate swap on securities | | | (2,768) | | Interest income | | | — | | Interest income | | | 552 | Total fair value hedges | | | (2,768) | | | | | — | | | | | 552 | | | | | | | | | | | | | | | Economic hedges: | | | | | | | | | | | | | | Forward commitments | | | — | | Other income | | | — | | Mortgage banking income | | | (67) | Total economic hedges | | | — | | | | | — | | | | | (67) | | | | | | | | | | | | | | | Non-hedging derivatives: | | | | | | | | | | | | | | Interest rate lock commitments | | | — | | Other income | | | — | | Mortgage banking income | | | 153 | Total non-hedging derivatives | | | — | | | | | — | | | | | 153 | | | | | | | | | | | | | | | Total | | $ | (2,312) | | | | $ | — | | | | $ | (7) |
| | | | | | | | | | | | | | | | Six Months Ended June 30, 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 | | $ | (866) | | Interest expense | | $ | — | | Interest expense | | $ | 1,655 | Interest rate swap on variable rate loans | | | 151 | | Interest income | | | — | | Interest income | | | (1,170) | Total cash flow hedges | | | (715) | | | | | — | | | | | 485 | | | | | | | | | | | | | | | Fair value hedges: | | | | | | | | | | | | | | Interest rate swap on securities | | | (240) | | Interest income | | | — | | Interest income | | | 741 | Total economic hedges | | | (240) | | | | | — | | | | | 741 | | | | | | | | | | | | | | | Economic hedges: | | | | | | | | | | | | | | Forward commitments | | | — | | Other income | | | — | | Mortgage banking income | | | 35 | Total economic hedges | | | — | | | | | — | | | | | 35 | | | | | | | | | | | | | | | Non-hedging derivatives: | | | | | | | | | | | | | | Interest rate lock commitments | | | — | | Other income | | | — | | Mortgage banking income | | | 83 | Total non-hedging derivatives | | | — | | | | | — | | | | | 83 | | | | | | | | | | | | | | | Total | | $ | (955) | | | | $ | — | | | | $ | 1,344 |
|
| Schedule of Gain Loss in Statement of Income |
| | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2025 | | | 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 | | $ | 42,726 | | $ | 5,474 | | $ | 15,511 | | $ | 3,282 | | $ | 4,646 | | | | | | | | | | | | | | | | | The effects of cash flow and fair value hedging: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gain (loss) on cash flow hedges: | | | | | | | | | | | | | | | | Interest rate swap on wholesale funding | | | — | | | — | | | — | | | 17 | | | — | Interest rate swap on variable rate loans | | | (459) | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | Gain (loss) on fair value hedges: | | | | | | | | | | | | | | | | Interest rate swap on securities | | | — | | | 278 | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 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 | | $ | 40,634 | | $ | 6,204 | | $ | 14,780 | | $ | 4,299 | | $ | 9,633 | | | | | | | | | | | | | | | | | The effects of cash flow and fair value hedging: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gain (loss) on cash flow hedges: | | | | | | | | | | | | | | | | Interest rate swap on wholesale funding | | | — | | | — | | | — | | | 828 | | | — | Interest rate swap on variable rate loans | | | (585) | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | Gain (loss) on fair value hedges: | | | | | | | | | | | | | | | | Interest rate swap on securities | | | — | | | 371 | | | — | | | — | | | — |
| | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2025 | | | 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 | | $ | 84,530 | | $ | 10,757 | | $ | 31,023 | | $ | 6,301 | | $ | 13,564 | | | | | | | | | | | | | | | | | The effects of cash flow and fair value hedging: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gain (loss) on cash flow hedges: | | | | | | | | | | | | | | | | Interest rate swap on wholesale funding | | | — | | | — | | | — | | | 269 | | | — | Interest rate swap on variable rate loans | | | (914) | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | Gain (loss) on fair value hedges: | | | | | | | | | | | | | | | | Interest rate swap on securities | | | — | | | 552 | | | — | | | — | | | — | | | | | | | | | | | | | | | | |
| | Six Months Ended June 30, 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 | | $ | 80,104 | | $ | 12,557 | | $ | 29,312 | | $ | 7,535 | | $ | 18,219 | | | | | | | | | | | | | | | | | The effects of cash flow and fair value hedging: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gain (loss) on cash flow hedges: | | | | | | | | | | | | | | | | Interest rate swap on wholesale funding | | | — | | | — | | | — | | | 1,655 | | | — | Interest rate swap on variable rate loans | | | (1,169) | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | Gain (loss) on fair value hedges: | | | | | | | | | | | | | | | | Interest rate swap on securities | | | — | | | 741 | | | — | | | — | | | — |
|
| Schedule of derivatives no designated as hedging instruments on the consolidated statements of income |
| | | | | | | | | | | | | | | | | Location of Gain (Loss) Recognized | | Three Months Ended June 30, | | Six Months Ended June 30, | (In thousands) | | in Non-interest Income | | 2025 | | | 2024 | | 2025 | | | 2024 | Economic hedges: | | | | | | | | | | | | | | | Forward commitments | | Mortgage banking income | | $ | (46) | | $ | 31 | | $ | (67) | | $ | 35 | | | | | | | | | | | | | | | | Non-hedging derivatives: | | | | | | | | | | | | | | | Interest rate lock commitments | | Mortgage banking income | | | 124 | | | 90 | | | 153 | | | 83 |
|
| 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 June 30, 2025 | | | | | | | | | | | | | Customer Loan Derivatives: | | | | | | | | | | | | | MNA counterparty | | $ | (7,678) | | $ | 7,678 | | $ | — | | $ | — | RPA counterparty | | | (1,965) | | | 1,965 | | | — | | | — | Total | | $ | (9,643) | | $ | 9,643 | | $ | — | | $ | — |
| | | | | | | | | | | | | | | 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 | | $ | — | | $ | — |
|