Derivative Instruments and Hedging Activities (Tables)
|
9 Months Ended |
Sep. 30, 2026 |
|---|
| Derivative Instruments and Hedging Activities |
|
| Schedule of notional amounts and gross fair values of derivatives |
The following table presents the total notional amounts and gross fair values of the Company’s derivatives as of September 30, 2026 and December 31, 2025: | | | | | | | | | | | | | | | Derivative Assets | | Derivative Liabilities | | | Notional | | Estimated | | Notional | | Estimated | (dollars in thousands) | | Amount | | Fair Value | | Amount | | Fair Value | September 30, 2026 | | | | | | | | | | | | | Designated as hedging instruments: | | | | | | | | | | | | | Fair Value hedges: | | | | | | | | | | | | | Interest rate swaps | | $ | 116,491 | | $ | 4,358 | | | — | | $ | — | Cash flow hedges: | | | | | | | | | | | | | Interest rate swaps | | | 318,000 | | | 11,308 | | | — | | | — | Interest rate caps | | | 125,000 | | | 16,124 | | | — | | | — | Total derivatives designated as hedging instruments | | $ | 559,491 | | $ | 31,790 | | $ | — | | $ | — | Not designated as hedging instruments: | | | | | | | | | | | | | Interest rate swaps | | $ | 360,042 | | $ | 13,400 | | $ | 360,042 | | $ | 13,400 | Risk participation agreements | | | 22,717 | | | — | | | 9,771 | | | 1 | Total derivatives not designated as hedging instruments | | $ | 382,759 | | $ | 13,400 | | $ | 369,813 | | $ | 13,401 | | | | | | | | | | | | | | December 31, 2025 | | | | | | | | | | | | | Designated as hedging instruments: | | | | | | | | | | | | | Fair Value hedges: | | | | | | | | | | | | | Interest rate swaps | | $ | 145,850 | | $ | 10,968 | | | 96,464 | | $ | 419 | Cash flow hedges: | | | | | | | | | | | | | Interest rate swaps | | | 185,500 | | | 2,012 | | | 77,500 | | | 725 | Interest rate caps | | | 125,000 | | | 13,221 | | | — | | | — | Total derivatives designated as hedging instruments | | $ | 456,350 | | $ | 26,201 | | $ | 173,964 | | $ | 1,144 | Not designated as hedging instruments: | | | | | | | | | | | | | Interest rate swaps | | $ | 267,831 | | $ | 8,699 | | $ | 267,831 | | $ | 8,699 | Risk participation agreements | | | 12,851 | | | 1 | | | 9,902 | | | 13 | Total derivatives not designated as hedging instruments | | $ | 280,682 | | $ | 8,700 | | $ | 277,733 | | $ | 8,712 |
|
| Effect of derivative instruments in cash flow hedging relationships |
The following table presents the effect of derivative instruments in cash flow hedging relationships on the consolidated statements of income for the three and nine months ended September 30, 2026 and 2025: | | | | | | | | | Gains (Losses) | | Gains (Losses) | | | Recognized in | | Reclassified from | (dollars in thousands) | | OCI | | OCI into Earnings | Three Months Ended September 30, 2026 | | | | | | | Cash flow hedges: | | | | | | | Interest rate swaps | | $ | 7,257 | | $ | 384 | Interest rate caps | | | 2,688 | | | 709 | Three Months Ended September 30, 2025 | | | | | | | Cash flow hedges: | | | | | | | Interest rate swaps | | $ | (676) | | $ | 683 | Interest rate caps | | | (965) | | | 917 |
| | | | | | | | | Gains (Losses) | | Gains (Losses) | | | Recognized in | | Reclassified from | (dollars in thousands) | | OCI | | OCI into Earnings | Nine Months Ended September 30, 2026 | | | | | | | Cash flow hedges: | | | | | | | Interest rate swaps | | $ | 10,021 | | $ | 1,261 | Interest rate caps | | | 3,496 | | | 2,088 | Nine Months Ended September 30, 2025 | | | | | | | Cash flow hedges: | | | | | | | Interest rate swaps | | $ | (4,504) | | $ | 2,318 | Interest rate caps | | | (5,083) | | | 2,731 |
|
| Effects of the company's hedging relationships on the income statement |
The effects of the Company’s hedging relationships on the income statement during the three and nine months ended September 30, 2026 and 2025 are presented in the table below: | | | | | | | | | | | | Location and Amount of Gains (Losses) Recognized in Income | | | Interest Income | | Interest Expense | | | Investment | | | | | Securities - | | | (dollars in thousands) | | Taxable | | Deposits | | FHLB Advances | Three Months Ended September 30, 2026 | | | | | | | | | | Total amounts in the Consolidated Statements of Income | | $ | 7,587 | | $ | 30,943 | | $ | 2,995 | Fair value hedges: | | | | | | | | | | Interest rate swaps | | | 4,009 | | | — | | | — | Cash flow hedges: | | | | | | | | | | Interest rate swaps | | | — | | | 11 | | | 373 | Interest rate caps | | | — | | | 420 | | | 289 | Three Months Ended September 30, 2025 | | | | | | | | | | Total amounts in the Consolidated Statements of Income | | $ | 10,371 | | $ | 34,615 | | $ | 2,933 | Fair value hedges: | | | | | | | | | | Interest rate swaps | | | (202) | | | — | | | — | Cash flow hedges: | | | | | | | | | | Interest rate swaps | | | — | | | 45 | | | 638 | Interest rate caps | | | — | | | — | | | 917 |
| | | | | | | | | | | | Location and Amount of Gains (Losses) Recognized in Income | | | Interest Income | | Interest Expense | | | Investment | | | | | Securities - | | | (dollars in thousands) | | Taxable | | Deposits | | FHLB Advances | Nine Months Ended September 30, 2026 | | | | | | | | | | Total amounts in the Consolidated Statements of Income | | $ | 21,414 | | $ | 89,447 | | $ | 7,927 | Fair value hedges: | | | | | | | | | | Interest rate swaps | | | 4,365 | | | — | | | — | Cash flow hedges: | | | | | | | | | | Interest rate swaps | | | — | | | 78 | | | 1,183 | Interest rate caps | | | — | | | 1,104 | | | 984 | Nine Months Ended September 30, 2025 | | | | | | | | | | Total amounts in the Consolidated Statements of Income | | $ | 28,968 | | $ | 99,215 | | $ | 7,941 | Fair value hedges: | | | | | | | | | | Interest rate swaps | | | (3,734) | | | — | | | — | Cash flow hedges: | | | | | | | | | | Interest rate swaps | | | — | | | 192 | | | 2,126 | Interest rate caps | | | — | | | — | | | 2,731 |
|
| Schedule of fair value hedge relationships on the balance sheet |
The following table presents amounts that were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges at September 30, 2026 and December 31, 2025: | | | | | | | | | | | | | | | | | | Cumulative Fair | | | | | | | | | Value Hedging | | | | | | | | | Adjustment in the | | | | | | Carrying Amount | | Carrying Amount of | | | Notional | | of Hedged Assets/ | | Hedged Assets/ | (dollars in thousands) | | Amount | | Liabilities | | Liabilities | September 30, 2026 | | | | | | | | | | Available for sale securities | | $ | 116,491 | | $ | 120,849 | | $ | 4,358 | | | | | | | | | | | December 31, 2025 | | | | | | | | | | Available for sale securities | | $ | 242,314 | | $ | 252,863 | | $ | 10,549 |
|
| Schedule of gain or (loss) recognized on derivatives not designated as hedging relationships |
The gain recognized on derivatives not designated as hedging relationships for the three and nine months ended September 30, 2026 and 2025 was as follows: | | | | | | | | | | | | | | (dollars in thousands) | | | | | | | | | | | | | | Derivatives not designated | Consolidated Statements | | Three Months Ended September 30, | | Nine Months Ended September 30, | as hedging Instruments | of Income Location | | 2026 | | 2025 | | 2026 | | 2025 | Risk participation agreements | Other Income | | $ | (4) | | $ | 36 | | $ | 1 | | $ | 17 |
|
| Schedule of derivative instruments eligible for offset |
| | | | | | | | | | | | | | | | | | | | | | | | | | | Net Amounts of | | | | | | | | Gross Amounts | | Gross Amounts | | Assets (Liabilities) | | Gross Amounts Not Offset in the Balance Sheet | | | | | | of Recognized | | Offset in the | | Presented in the | | Financial | | Cash Collateral | | Net Assets | (dollars in thousands) | | Assets (Liabilities) | | Balance Sheet | | Balance Sheet | | Instruments | | Received (Paid) | | (Liabilities) | September 30, 2026 | | | | | | | | | | | | | | | | | | | Assets | | $ | 45,190 | | $ | — | | $ | 45,190 | | $ | — | | $ | (45,463) | | $ | (273) | Liabilities | | | (13,400) | | | — | | | (13,400) | | | — | | | — | | | (13,400) | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | | | | | | | | | | | | | | | | | Assets | | $ | 34,900 | | $ | — | | $ | 34,900 | | $ | — | | $ | (26,183) | | $ | 8,717 | Liabilities | | | (9,844) | | | — | | | (9,844) | | | — | | | — | | | (9,844) |
|
| Designated as Hedging Instrument | Interest Rate Swaps | Fair Value Hedging |
|
| Derivative Instruments and Hedging Activities |
|
| Derivative Instruments and Hedging Activities |
The following table presents a summary of the Company’s interest rate swaps designated as fair value hedges as of September 30, 2026 and December 31, 2025: | | | | | | | | (dollars in thousands) | | September 30, 2026 | | December 31, 2025 | | Notional Amount | | $ | 116,491 | | $ | 242,314 | | Weighted Average Pay Rate | | | 4.38 | % | | 3.55 | % | Weighted Average Receive Rate | | | 3.76 | | | 4.20 | | Weighted Average Maturity (Years) | | | 15.55 | | | 14.54 | |
|
| Designated as Hedging Instrument | Interest Rate Swaps | Cash Flow Hedging |
|
| Derivative Instruments and Hedging Activities |
|
| Derivative Instruments and Hedging Activities |
The following table presents a summary of the Company’s interest rate swaps designated as cash flow hedges as of September 30, 2026 and December 31, 2025: | | | | | | | | (dollars in thousands) | | September 30, 2026 | | December 31, 2025 | | Notional Amount | | $ | 318,000 | | $ | 263,000 | | Weighted Average Pay Rate | | | 3.23 | % | | 2.96 | % | Weighted Average Receive Rate | | | 3.72 | % | | 3.94 | % | Weighted Average Maturity (Years) | | | 3.45 | | | 3.90 | | Net Unrealized Gain | | $ | 11,308 | | $ | 1,286 | |
|
| Designated as Hedging Instrument | Interest Rate Caps | Cash Flow Hedging |
|
| Derivative Instruments and Hedging Activities |
|
| Derivative Instruments and Hedging Activities |
The following table presents a summary of the Company’s interest rate caps designated as cash flow hedges as of September 30, 2026 and December 31, 2025: | | | | | | | | (dollars in thousands) | | September 30, 2026 | | December 31, 2025 | | Notional Amount | | $ | 125,000 | | $ | 125,000 | | Unamortized Premium Paid | | | 2,895 | | | 3,488 | | Weighted Average Strike Rate | | | 0.96 | % | | 0.96 | % | Weighted Average Maturity (Years) | | | 3.59 | | | 4.34 | |
|