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Derivative Instruments and Hedging Activities
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities
Interest Rate Swaps

The Corporation periodically uses interest rate swap agreements to modify interest rate characteristics from variable to fixed or fixed to variable in order to reduce the impact of interest rate changes on future net interest income. The Corporation's credit exposure on interest rate swaps includes changes in fair value and any collateral that is held by a third party.

In May 2022, the Corporation entered into an interest rate swap classified as a cash flow hedge with a notional amount of $250.0 million to hedge the interest payments received on a pool of variable rate loans. Under the terms of the swap agreement, the Corporation pays a variable rate equal to the Prime Rate and receives a fixed rate of 5.99%. The swap matures in May 2026. The Corporation performed an assessment of the hedge for effectiveness at the inception of the hedge and performs an assessment on a recurring basis and determined that the derivative currently is and is expected to be highly effective in offsetting changes in cash flows of the hedged item. At December 31, 2022, approximately $4.0 million, net of tax, which is recorded in accumulated other comprehensive loss is expected to be reclassified into earnings during the next twelve months. This amount could differ from amounts actually recognized due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to December 31, 2022. At December 31, 2022, the notional amount of the interest rate swap was $250.0 million and the fair value was a liability of $8.6 million.

Credit Derivatives

The Corporation has agreements with third-party financial institutions whereby the third-party financial institution enters into interest rate derivative contracts with loan customers referred to them by the Corporation. By the terms of the agreements, the third-party financial institution has recourse to the Corporation for any exposure created under each swap contract in the event the customer defaults on the swap agreement and the agreement is in a paying position to the third-party financial institution. These transactions represent credit derivatives and are a customary arrangement that allows the Corporation to provide access to interest rate swap transactions for customers without issuing the swap.

At December 31, 2022, the Corporation had exposure to 127 variable-rate to fixed-rate interest rate swap transactions between the third-party financial institution and customers with a current notional amount of $815.5 million and remaining maturities ranging from 16 months to 12 years. At December 31, 2022, the fair value of the Corporation's interest rate swap credit derivatives was a liability of $360 thousand. At December 31, 2022, the fair value of the swaps to the customers was a net gain of $74.3 million. At December 31, 2022, the Corporation's credit exposure related to the customer totaled $833 thousand.

The maximum potential payments by the Corporation to the third-party financial institution under these credit derivatives are not estimable as they are contingent on future interest rates and the agreement does not provide for a limitation of the maximum potential payment amount.

Mortgage Banking Derivatives

Derivative loan commitments represent agreements for delayed delivery of financial instruments in which the buyer agrees to purchase and the seller agrees to deliver, at a specified future date, a specified instrument at a specified price or yield. The Corporation's derivative loan commitments are commitments to sell loans secured by 1-to 4-family residential properties whose predominant risk characteristic is interest rate risk.
Derivatives Tables

The following table presents the notional amounts and fair values of derivatives designated as hedging instruments recorded on the consolidated balance sheets at December 31, 2022 and 2021. The Corporation pledges cash or securities to cover the negative fair value of derivative instruments. Cash collateral associated with derivative instruments are not added to or netted against the fair value amounts.
  Derivative AssetsDerivative Liabilities
(Dollars in thousands)Notional
Amount		Balance Sheet
Classification		Fair
Value		Balance Sheet
Classification		Fair
Value
At December 31, 2022
Interest rate swap - cash flow hedge $250,000  $— Other liabilities$8,647 
Total$250,000 $— $8,647 
At December 31, 2021
Interest rate swap - cash flow hedge $14,611  $— Other liabilities$202 
Total$14,611 $— $202 

The following table presents the notional amounts and fair values of derivatives not designated as hedging instruments recorded on the consolidated balance sheets at December 31, 2022 and 2021:
  Derivative AssetsDerivative Liabilities
(Dollars in thousands)Notional
Amount		Balance Sheet
Classification		Fair
Value		Balance Sheet
Classification		Fair
Value
At December 31, 2022
Credit derivatives$815,469  $— Other liabilities$360 
Interest rate locks with customers10,269 Other assets119  — 
Forward loan sale commitments15,306 Other assets29  — 
Total$841,044 $148 $360 
At December 31, 2021
Interest rate swap$46  $— Other liabilities$2 
Credit derivatives755,576  — Other liabilities381 
Interest rate locks with customers33,876 Other assets765  — 
Forward loan sale commitments55,476 Other assets87  — 
Total$844,974 $852 $383 
The following table presents amounts included in the consolidated statements of income for derivatives designated as hedging instruments for the periods indicated:
 Statement of Income ClassificationFor the Years Ended December 31,
(Dollars in thousands)202220212020
Interest rate swaps—cash flow hedge—net interest paymentsInterest (income) expense$(521)$304 $254 
Total net gain (loss)$521 $(304)$(254)

The following table presents amounts included in the consolidated statements of income for derivatives not designated as hedging instruments for the periods indicated:
 Statement of Income ClassificationFor the Years Ended December 31,
(Dollars in thousands)202220212020
Credit derivativesOther noninterest income$2,871 $2,251 $5,733 
Interest rate locks with customersNet (loss) gain on mortgage banking activities(646)(2,129)2,495 
Forward loan sale commitmentsNet (loss) gain on mortgage banking activities(58)839 (733)
Total net gain$2,167 $961 $7,495 
The following table presents amounts included in accumulated other comprehensive (loss) income for derivatives designated as hedging instruments at December 31, 2022 and 2021:
 Accumulated Other
Comprehensive Income		At December 31,
(Dollars in thousands)20222021
Interest rate swap—cash flow hedgeFair value, net of taxes$(6,831)$(159)
Total$(6,831)$(159)