v3.26.1
DERIVATIVE INSTRUMENTS (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position
Notional amounts are reference amounts from which contractual obligations are derived and are not recorded on the balance sheet. In our view, derivative notional is not an accurate measure of our derivative exposure when viewed in isolation from other factors, such as market rate fluctuations and counterparty credit risk.
June 30, 2026December 31, 2025
Fair ValueFair Value
(dollars in thousands)AssetsLiabilitiesNotional amountAssetsLiabilitiesNotional amount
Derivatives designated as accounting hedges:
Interest rate contracts
Fair value hedges
Investment securities available for sale$1,621 $803 $182,645 $608 $2,901 $228,157 
Cash flow hedges
Investment securities available for sale323 — 90,000 754 — 90,000 
Pools of commercial and commercial real estate loans635 890 225,000 1,528 1,180 300,000 
FHLB advances, brokered CDs and other borrowings549 — 100,000 29 502 125,000 
Total derivatives designated as accounting hedges$3,128 $1,693 $597,645 $2,919 $4,583 $743,157 
Derivatives not designated as accounting hedges:
Interest rate contracts
Swaps$211 $211 $62,974 $395 $395 $52,637 
Interest rate lock commitments166 — 6,944 137 — 4,594 
Forward commitments to sell mortgage-backed securities39 — 9,725 — 21 9,179 
Total derivatives not designated as accounting hedges$416 $211 $79,643 $532 $416 $66,410 
The following table presents amounts recorded in the consolidated balance sheets related to cumulative basis adjustments for fair value hedges:
Carrying amount of the hedged itemsCumulative amount of fair value hedging adjustment included in the carrying amount of the hedged items
(dollars in thousands)June 30, 2026December 31, 2025June 30, 2026December 31, 2025
Investment securities available for sale$169,641 $352,968 $818 $(2,293)
Schedule of Derivative Instruments, Gain (Loss)
The following table summarizes the effect of derivative instruments in fair value hedging relationships on the consolidated statements of income:
Location of gain (loss) recognized in income on derivativeGain (loss) recognized in income on derivativeLocation of gain (loss) recognized in income on related hedged itemGain (loss) recognized in income on related hedged items
(dollars in thousands)2026202520262025
Three Months Ended June 30,
Gain (loss) on fair value hedging relationships
Interest rate contracts
Fixed-rate mortgage-backed securitiesInterest income on investment securities available for sale$1,768 $(1,508)Interest income on investment securities available for sale$(1,774)$1,549 
Six Months Ended June 30,
Gain (loss) on fair value hedging relationships
Interest rate contracts
Fixed-rate mortgage-backed securitiesInterest income on investment securities available for sale$3,111 $(4,994)Interest income on investment securities available for sale$(2,933)$5,040 
The following table summarizes the effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income:
Gain (loss) recognized in AOCI on derivativeLocation of gain (loss) recognized in income on derivativeGain (loss) reclassified from AOCI into income
(dollars in thousands)2026202520262025
Three Months Ended June 30,
Gain (loss) on cash flow hedging relationships
Interest rate contracts
Pools of commercial and commercial real estate loans$(553)$238 Interest income on loans$(110)$(741)
Investment securities available for sale(336)71 Interest income on investment securities available for sale(54)(5)
FHLB advances, brokered CDs and other borrowings372 (86)Interest expense(30)104 
Total gain (loss) on cash flow hedging relationships$(517)$223 $(194)$(642)
Six Months Ended June 30,
Gain (loss) on cash flow hedging relationships
Interest rate contracts
Pools of commercial and commercial real estate loans$(603)$1,355 Interest income on loans$(219)$(1,806)
Investment securities available for sale(431)517 Interest income on investment securities available for sale(108)82 
FHLB advances, brokered CDs and other borrowings1,022 (785)Interest expense(60)245 
FHLB advances, brokered CDs and other borrowings(154)— Noninterest expense(154)— 
Total gain (loss) on cash flow hedging relationships$(166)$1,087 $(541)$(1,479)
The following table summarizes the effect of derivative instruments not designated as accounting hedges on the consolidated statements of income:
Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)Location of gain recognized in income on derivative2026202520262025
Gain (losses) on derivative instruments not designated as accounting hedges
Interest rate contractsResidential mortgage banking revenue$(120)$(11)$89 $59 
Total gain (loss) on derivative instruments not designated as accounting hedges$(120)$(11)$89 $59