v3.26.1
Derivatives and Hedging Activities
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives and Hedging Activities Derivatives and Hedging Activities
The Company executes loan level derivative products such as interest rate swap agreements with commercial banking customers to aid them in managing their interest rate risk. The interest rate swap contracts allow the commercial banking customers to convert floating rate loan payments to fixed rate loan payments. The Company concurrently enters into offsetting swaps with a third party financial institution, effectively minimizing its net risk exposure resulting from such transactions. The third party financial institution exchanges the customer's fixed rate loan payments for floating rate loan payments. As the interest rate swap agreements associated with this program do not meet hedge accounting requirements, changes in the fair value are recognized directly in earnings. Based on the Company's intended use for the loan level derivatives at inception, the Company designates the derivative as either an economic hedge of an asset or liability, or a hedging instrument subject to the hedge accounting provisions of FASB ASC Topic 815, "Derivatives and Hedging".
The Company believes using interest rate derivatives adds stability to interest income and expense and allows the Company to manage its exposure to interest rate movements. The Company enters into interest rate swaps as part of its interest rate risk management strategy. These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed payments. The Company enters into interest rate swaps as hedging instruments against the interest rate risk associated with the Company's FHLB borrowings and loan portfolio. For derivative instruments that are designated and qualify as cash flow hedging instruments, the effective portion of the gains or losses is reported as a component of OCI, and is reclassified into earnings in the period that the hedged forecasted transaction affects earnings.
The following table reflects the Company's derivative positions as of the date indicated below for interest rate derivatives which qualify as cash flow hedges for accounting purposes.
 At March 31, 2026
Notional AmountAverage MaturityWeighted Average RateFair Value
 Current Rate PaidReceived Fixed Swap Rate
 (in thousands)(in years)(in thousands)
Interest rate swaps on loans$149,679 0.73.65 %3.52 %$(46)
 At December 31, 2025
Notional AmountAverage MaturityWeighted Average RateFair Value
 Current Rate PaidReceived Fixed Swap Rate
 (in thousands)(in years)(in thousands)
Interest rate swaps on loans$192,468 0.93.79 %3.47 %$7 
The Company utilizes risk participation agreements with other banks participating in commercial loan arrangements. Participating banks guarantee the performance on borrower-related interest rate swap contracts. Risk participation agreements are derivative financial instruments and are recorded at fair value. These derivatives are not designated as hedges and therefore, changes in fair value are recorded directly through earnings in other non-interest income at each reporting period. Under a risk participation-out agreement, a derivative asset, the Company participates out a portion of the credit risk associated with the interest rate swap position executed with the commercial borrower, for a fee paid to the participating bank.
The Company offers foreign exchange contracts to commercial borrowers to accommodate their business needs. These foreign exchange contracts do not qualify as hedges for accounting purposes. To mitigate the market and liquidity risk associated with these foreign exchange contracts, the Company enters into similar offsetting positions.
Asset derivatives and liability derivatives are included in other assets and accrued expenses and other liabilities on the unaudited consolidated balance sheets.
The following tables present the Company's customer related derivative positions for the periods indicated below for those derivatives not designated as hedging.
 Notional Amount Maturing
 Number of PositionsLess than 1 yearLess than 2 yearsLess than 3 yearsLess than 4 yearsThereafterTotalFair Value
March 31, 2026
 (Dollars In Thousands)
Loan level derivatives
Receive fixed, pay variable304 $348,919 $332,118 $616,891 $460,263$1,742,093 $3,500,284 $70,480 
Pay fixed, receive variable305 348,919 332,118 616,891 464,3601,742,093 3,504,381 70,394 
Risk participation-out agreements87 67,441 44,412 145,481 52,348371,525 681,207 575 
Risk participation-in agreements22 28,039 6,855 26,083 18,313 67,779 147,069 141 
Foreign exchange contracts
Buys foreign currency, sells U.S. currency11 $2,965 $— $— $— $— $2,965 $125 
Sells foreign currency, buys U.S. currency11 2,978 — — — — 2,978 235 
 Notional Amount Maturing
 Number of PositionsLess than 1 yearLess than 2 yearsLess than 3 yearsLess than 4 yearsThereafterTotalFair Value
December 31, 2025
(Dollars In Thousands)
Loan level derivatives
Receive fixed, pay variable308 $280,333 $427,625 $368,548 $699,796 $1,729,538 $3,505,840 $58,840 
Pay fixed, receive variable308 280,333 427,625 368,548 699,796 1,729,538 3,505,840 58,853 
Risk participation-out agreements87 41,361 65,257 37,270 155,480 371,466 670,834 532 
Risk participation-in agreements23 29,862 10,321 26,468 18,473 68,061 153,185 139 
Foreign exchange contracts
Buys foreign currency, sells U.S. currency9 $2,785 $— $— $— $— $2,785 $274 
Sells foreign currency, buys U.S. currency9 2,800 — — — — 2,800 258 
Certain derivative agreements contain provisions that require the Company to post collateral if the derivative exposure exceeds a threshold amount. The Company posted collateral to dealer counterparties of $0.2 million in the normal course of business as of March 31, 2026, compare to $1.2 million as of December 31, 2025.
The tables below present the offsetting of derivatives and amounts subject to master netting agreements not offset in the unaudited consolidated balance sheet at the dates indicated.
 At March 31, 2026
Gross
Amounts Recognized		Gross Amounts
Offset in the
Statement of Financial Position		Net Amounts  Presented in the Statement of Financial PositionGross Amounts Not Offset in the
Statement of Financial Position		Net Amount
 Financial Instruments PledgedCash Collateral Pledged
 (In Thousands)
Asset derivatives
Derivatives designated as hedging instruments:
Interest rate derivatives$77 $— $77 $— $— $77 
Derivatives not designated as hedging instruments:
Loan level derivatives$98,732 $— $98,732 $— $50,526 $48,206 
Risk participation-out agreements575 — 575 — — 575 
Foreign exchange contracts360 — 360 — — 360 
Total$99,744 $— $99,744 $— $50,526 $49,218 
Liability derivatives
Derivatives designated as hedging instruments:
Interest rate derivatives$123 $— $123 $— $— $123 
Derivatives not designated as hedging instruments:
Loan level derivatives$113,495 $— $113,495 $— $219 $113,276 
Risk participation-in agreements141 — 141 — — 141 
Foreign exchange contracts— — — — — — 
Total$113,759 $— $113,759 $— $219 $113,540 
 At December 31, 2025
Gross
Amounts Recognized		Gross Amounts
Offset in the
Statement of Financial Position		Net Amounts  Presented in the Statement of Financial PositionGross Amounts Not Offset in the
Statement of Financial Position		Net Amount
 Financial Instruments PledgedCash Collateral Pledged
 (In Thousands)
Asset derivatives
Derivatives designated as hedging instruments:
Interest rate derivatives$185 $— $185 $— $— $185 
Derivatives not designated as hedging instruments:
Loan level derivatives$102,237 $— $102,237 $— $33,113 $69,124 
Risk participation-out agreements532 — 532 — — 532 
Foreign exchange contracts274 — 274 — — 274 
Total$103,228 $— $103,228 $— $33,113 $70,115 
Liability derivatives
Derivatives designated as hedging instruments:
Interest rate derivatives$179 $— $179 $— $— $179 
Derivatives not designated as hedging instruments:
Loan level derivatives$115,937 $— $115,937 $— $1,180 $114,757 
Risk participation-in agreements139 — 139 — — 139 
Foreign exchange contracts258 — 258 — — 258 
Total$116,513 $— $116,513 $— $1,180 $115,333 
The Company has agreements with certain of its derivative counterparties that contain credit-risk-related contingent provisions. These provisions provide the counterparty with the right to terminate its derivative positions and require the Company to settle its obligations under the agreements if the Company defaults on certain of its indebtedness or if the Company fails to maintain its status as a well-capitalized institution.
Fair Value
Three Months Ended 
 March 31, 2026		Three Months Ended 
 March 31, 2025
 (Dollars in Thousands)
Derivatives designated as hedges$(46)$(1,114)
(Loss) gain in OCI on derivatives (effective portion), net of tax$(14)$(678)
Gain (loss) reclassified from OCI into interest income or interest expense (effective portion)$(49)$(534)
The guidance in ASU 2017-12 requires that amounts in accumulated OCI that are included in the assessment of effectiveness should be reclassified into earnings in the same period in which the hedged forecasted transactions impact earnings. A portion of the balance reported in accumulated OCI related to derivatives will be reclassified to interest expense as interest payments are made or received on the Company’s interest rate swaps. The Company monitors the risk of counterparty default on an ongoing basis.