v3.26.1
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Commitments to originate residential mortgage loans held for sale and forward commitments to sell residential mortgage loans are considered derivative instruments. See Note 8 for further information.
The Company has certain interest rate derivative positions that are not designated as hedging instruments. Derivative assets and liabilities are recorded at fair value on the Consolidated Statements of Financial Condition and do not take into account the effects of master netting agreements. Master netting agreements allow the Company to settle all derivative contracts held with a single counterparty on a net basis, and to offset net derivative positions with related collateral, where applicable. These derivative positions relate to transactions in which the Company enters into an interest rate swap with a client while at the same time entering into an offsetting interest rate swap with another financial institution. In connection with each transaction, the Company agrees to pay interest to the client on a notional amount at a variable interest rate and receive interest from the client on the same notional amount at a fixed interest rate. At the same time, the Company agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows the client to effectively convert a variable rate loan to a fixed rate. Because the terms of the swaps with the customers and the other financial institutions offset each other, with the only difference being counterparty credit risk, changes in the fair value of the underlying derivative contracts are not materially different and do not significantly impact the Company’s results of operations.
The following table shows the amounts of non-hedging derivative financial instruments.
  Asset derivativesLiability derivatives
(Dollars in thousands)Notional or contractual amountStatement of Financial Condition classificationFair valueStatement of Financial Condition classificationFair value
June 30, 2026     
Interest rate swap contracts$1,338,448 Other assets$11,414 Other liabilities$11,624 
Loan commitments3,839 Mortgages held for sale110 N/A— 
Forward contracts - mortgage loan4,250 N/A— Mortgages held for sale3 
Total$1,346,537  $11,524  $11,627 
December 31, 2025     
Interest rate swap contracts$1,242,696 Other assets$16,486 Other liabilities$16,798 
Loan commitments8,208 Mortgages held for sale153 N/A— 
Forward contracts - mortgage loan10,000 N/A— Mortgages held for sale21 
Total$1,260,904  $16,639  $16,819 
The following table shows the amounts included in the Consolidated Statements of Income for non-hedging derivative financial instruments.
  Gain (loss)
 Three Months Ended
June 30,		Six Months Ended
June 30,
(Dollars in thousands)Statement of Income classification2026202520262025
Interest rate swap contractsOther expense$49 $(23)$101 $(44)
Interest rate swap contractsOther income491 426 707 877 
Loan commitmentsMortgage banking(45)20 (43)102 
Forward contracts - mortgage loanMortgage banking(40)(43)18 (68)
Total $455 $380 $783 $867 
The following table shows the offsetting of financial assets and derivative assets.
Gross Amounts Not Offset in the Statement of Financial Condition
(Dollars in thousands)Gross Amounts of Recognized AssetsGross Amounts Offset in the Statement of Financial ConditionNet Amounts of
Assets Presented in
the Statement of Financial Condition		Financial InstrumentsCash Collateral ReceivedNet Amount
June 30, 2026      
Interest rate swaps$11,414 $— $11,414 $— $1,135 $10,279 
December 31, 2025      
Interest rate swaps$16,486 $— $16,486 $— $105 $16,381 
The following table shows the offsetting of financial liabilities and derivative liabilities.
Gross Amounts Not Offset in the Statement of Financial Condition
(Dollars in thousands)Gross Amounts of Recognized LiabilitiesGross Amounts Offset in the Statement of Financial ConditionNet Amounts of Liabilities Presented in the Statement of Financial ConditionFinancial InstrumentsCash Collateral PledgedNet Amount
June 30, 2026      
Interest rate swaps$11,624 $— $11,624 $— $— $11,624 
Repurchase agreements63,494 — 63,494 — — 63,494 
Total$75,118 $— $75,118 $— $— $75,118 
December 31, 2025      
Interest rate swaps$16,798 $— $16,798 $— $6,230 $10,568 
Repurchase agreements62,470 — 62,470 62,470 — — 
Total$79,268 $— $79,268 $62,470 $6,230 $10,568 
If a default in performance of any obligation of a repurchase agreement occurs, each party will set-off property held in respect of transactions against obligations owing in respect of any other transactions. At June 30, 2026, and December 31, 2025, repurchase agreements had a remaining contractual maturity of $63.49 million and $62.42 million in overnight and $0.00 million and $0.05 million in up to 30 days, respectively, and were collateralized by U.S. Treasury and Federal agencies securities.