v3.25.2
DERIVATIVES AND HEDGING (Tables)
 6 Months Ended
Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Derivative Financial Instruments
The following table presents the fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition as of the dates indicated:
Derivative AssetsDerivative Liabilities
(Dollars in thousands)Notional
Amount		 LocationFair
Value		Notional
Amount		LocationFair
Value
June 30, 2025    
Derivatives designated as hedging instruments:
Interest rate contracts(1)
$210,000 Other Assets$9,062 $693,000 Accrued interest and other liabilities$2,048 
Total derivatives designated as hedging instruments$210,000 $9,062 $693,000 $2,048 
Derivatives not designated as hedging instruments:
Customer loan swaps(1)
$349,739 Other assets$10,757 $349,739 Accrued interest and other liabilities$10,797 
Risk participation agreements35,203 Other assets— 65,661 Accrued interest and other liabilities— 
Fixed rate mortgage interest rate lock commitments18,402 Other assets250 5,271 Accrued interest and other liabilities30 
Forward delivery commitments10,984 Other assets131 11,376 Accrued interest and other liabilities79 
Total derivatives not designated as hedging instruments$414,328 $11,138 $432,047 $10,906 
December 31, 2024
Derivatives designated as hedging instruments:
Interest rate contracts(1)
$643,000 Other assets$14,040 $225,000 Accrued interest and other liabilities$232 
Total derivatives designated as hedging instruments$643,000 $14,040 $225,000 $232 
Derivatives not designated as hedging instruments:
Customer loan swaps(1)
$313,413 Other assets$11,717 $313,413 Accrued interest and other liabilities$11,787 
Risk participation agreements27,568 Other assets— 60,228 Accrued interest and other liabilities— 
Fixed rate mortgage interest rate lock commitments4,737 Other assets65 5,331 Accrued interest and other liabilities55 
Forward delivery commitments9,813 Other assets203 1,110 Accrued interest and other liabilities4 
Total derivatives not designated as hedging instruments$355,531 $11,985 $380,082 $11,846 
(1)    Reported fair values include accrued interest receivable and payable.

The following table shows the carrying amount and associated cumulative basis adjustments related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships:
Location in Consolidated Statements of ConditionCarrying Amount of Hedged Assets/(Liabilities)Cumulative Fair Value Hedging Adjustment in the Carrying Amount of the Hedged Assets/(Liabilities)
(Dollars in thousands)June 30,
2025		December 31,
2024		June 30,
2025		December 31,
2024
Loans(1)
$475,689 $372,724 $689 $(2,276)
Total $475,689 $372,724 $689 $(2,276)
(1)These amounts include the amortized cost basis of residential real estate loans that were used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. As of June 30, 2025 and December 31, 2024, the amortized cost basis of the residential real estate loans used in these hedging relationships was $731.3 million and $752.4 million, respectively, and the amount of the designated hedged residential loans was $475.0 million and $375.0 million, respectively.
Schedule of Cash Flow Hedging Instruments, Location
The table below presents the effect of cash flow hedge accounting, before tax, on AOCI for the periods indicated:
(Dollars in thousands)Amount of Gain (Loss) Recognized in OCI on DerivativeAmount of Gain (Loss) Recognized in OCI Included ComponentAmount of Gain (Loss) Recognized in OCI Excluded ComponentLocation of Gain (Loss) Recognized
from AOCI into Income		Amount of Gain (Loss) Reclassified from AOCI into IncomeAmount of Gain (Loss) Reclassified from AOCI into Income Included ComponentAmount of Gain (Loss) Reclassified from AOCI into Income Excluded Component
For the Three Months Ended June 30, 2025
Interest rate contracts$(44)$(44)$— Interest on borrowings$672 $672 $— 
Interest rate contracts(297)(297)— Interest on junior subordinated debentures130 130 — 
Total$(341)$(341)$— $802 $802 $— 
For the Six Months Ended June 30, 2025
Interest rate contracts$(895)$(895)$— Interest on borrowings$1,293 $1,293 $— 
Interest rate contracts(976)(976)— Interest on junior subordinated debentures246 246 — 
Total$(1,871)$(1,871)$— $1,539 $1,539 $— 
For the Three Months Ended June 30, 2024
Interest rate contracts$(10)$(10)$— Interest and fees on loans$(740)$(740)$— 
Interest rate contracts695 695 — Interest on borrowings718 718 — 
Interest rate contracts481 481 — Interest on junior subordinated debentures227 227 — 
Total$1,166 $1,166 $— $205 $205 $— 
For the Six Months Ended June 30, 2024
Interest rate contracts$(98)$(98)$— Interest and fees on loans$(1,676)$(1,676)$— 
Interest rate contracts2,684 2,684 — Interest on borrowings1,396 1,396 — 
Interest rate contracts1,746 1,746 — Interest on junior subordinated debentures454 454 — 
Total$4,332 $4,332 $— $174 $174 $— 

The tables below present the effect of fair value and cash flow hedge accounting on the consolidated statements of income for the periods indicated:
Location and Amount of Gain (Loss) Recognized in Income
Three Months Ended
June 30,
20252024
(Dollars in thousands)Interest and fees on loansInterest on borrowingsInterest on junior subordinated debenturesInterest and fees on loansInterest on borrowingsInterest on junior subordinated debentures
Total presented on the consolidated statements of income in which the effects of cash flow and fair value hedges are recorded
$67,477 $4,620 $900 $53,422 $5,285 $524 
Gain (loss) on fair value hedging relationships
Interest rate contracts:
Hedged items$834 $— $— $(118)$— $— 
Derivatives designated as hedging instruments(59)— — 1,679 — — 
Gain (loss) on cash flow hedging relationships
Interest rate contracts:
Amount of gain (loss) reclassified from AOCI into income
$— $672 $130 $(740)$718 $227 
Amount of gain (loss) reclassified from AOCI into income - included component
— 672 130 (740)718 227 
Amount of gain (loss) reclassified from AOCI into income - excluded component— — — — — — 
Location and Amount of Gain (Loss) Recognized in Income
Six Months Ended
June 30,
20252024
(Dollars in thousands)Interest and fees on loansInterest on borrowingsInterest on junior subordinated debenturesInterest and fees on loansInterest on borrowingsInterest on junior subordinated debentures
Total presented on the consolidated statements of income in which the effects of cash flow and fair value hedges are recorded
$134,026 $8,638 $1,058 $105,131 $10,483 $1,058 
Gain (loss) on fair value hedging relationships
Interest rate contracts:
Hedged items$2,965 $— $— $(4,534)$— $— 
Derivatives designated as hedging instruments(1,576)— — 7,640 — — 
Gain (loss) on cash flow hedging relationships
Interest rate contracts:
Amount of gain (loss) reclassified from AOCI into income$— $1,293 $246 $(1,676)$1,396 $454 
Amount of gain (loss) reclassified from AOCI into income - included component— 1,293 246 (1,676)1,396 454 
Amount of gain (loss) reclassified from AOCI into income - excluded component— — — — — — 
Schedule of Derivatives Not Designated as Hedging Instruments
The table below presents the effect of the Company's derivative financial instruments that are not designated as hedging instruments on the consolidated statements of income for the periods indicated:
Location of Gain (Loss) Recognized in IncomeAmount of Gain (Loss)
Recognized in Income
Three Months Ended
June 30,		Six Months Ended
June 30,
(Dollars in thousands)2025202420252024
Customer loan swapsOther expense$7 $7 $(30)$26 
Fixed rate mortgage interest rate lock commitmentsMortgage banking income, net188 (155)210 (57)
Forward delivery commitmentsMortgage banking income, net(66)(24)(147)61 
Total $129 $(172)$33 $30