Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative instruments in statement of financial condition and statements of income related to cumulative basis adjustment for fair value hedges

The following amounts were recorded on the consolidated statement of financial condition related to cumulative basis adjustment for fair value hedges as of the dates indicated:

Line Item in the Statement of Financial Position in Which the Hedged Item is Included	Carrying Amount of the Hedged Assets				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets
(Dollars in thousands)	September 30, 2021		December 31, 2020		September 30, 2021		December 31, 2020
Loans held for investment(1)	$	298,973	$	—	$	(1,027)	$	—
Total	$	298,973	$	—	$	(1,027)	$	—

______________________________

(1) These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At September 30, 2021, the amortized cost basis of the closed portfolios used in these hedging relationships was $815.2 million; the cumulative basis adjustments associated with these hedging relationships was $1.0 million; and the amounts of the designated hedged items were $300.0 million.

The following table presents the effect of fair value hedge accounting on the consolidated statements of income:

		Three Months Ended
(Dollars in thousands)	Location of Gain (Loss) Recognized in Income on Derivative Instruments	September 30, 2021
Gain (loss) on fair value hedging relationships:
Hedged items	Interest Income	$	(1,027)
Derivatives designated as hedging instruments	Interest Income	932

Schedule of derivative instruments

The following tables summarize the Company's derivative instruments included in other assets and other liabilities in the consolidated statements of financial condition:

	September 30, 2021
	Derivative Assets				Derivative Liabilities
(Dollars in thousands)	Notional		Fair Value		Notional		Fair Value
Derivative instruments designated as hedging instruments:
Fair value hedge - interest rate swap contracts	$	300,000	$	932	$	—	$	—
Total derivative designated as hedging instruments	300,000		932		—		—
Derivative instruments not designated as hedging instruments:
Interest rate swaps contracts	135,580		5,815		135,580		5,819
Equity warrants	—		1,895		—		—
Total derivative not designated as hedging instruments	$	135,580	$	7,710	$	135,580	$	5,819
Total derivatives	435,580		8,642		135,580		5,819

	December 31, 2020
	Derivative Assets				Derivative Liabilities
(Dollars in thousands)	Notional		Fair Value		Notional		Fair Value
Derivative instruments not designated as hedging instruments:
Interest rate swaps contracts	$	145,181	$	12,053	$	145,181	$	12,066
Equity warrants	—		1,914		—		—
Total derivative instruments	$	145,181	$	13,967	$	145,181	$	12,066

The following table summarizes the effect of the derivatives not designated as hedging instruments in the consolidated statements of income.

(Dollars in thousands)		Three Months Ended September 30,				Nine Months Ended September 30,
Derivatives Not Designated as Hedging Instruments:	Location of Gain (Loss) Recognized in Income on Derivative Instruments	2021		2020		2021		2020
Interest rate products	Other income	$	1	$	—	$	9	$	—
Other contracts	Other income	—		218		—		415
Equity warrants	Other income	(8)		(31)		(19)		(35)
Total		$	(7)	$	187	$	(10)	$	380