Derivatives Financial Instruments (Tables)
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6 Months Ended |
Jun. 30, 2024 |
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| Derivative [Line Items] |
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| Schedule of Hedge Relationships on Income Statement |
The following table presents the effect of fair value and cash flow hedge accounting on the income statement (in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2024 | | 2023 | | 2024 | | 2023 | Total interest income | | $ | 61,487 | | $ | 52,190 | | $ | 121,473 | | $ | 105,376 | Effects of cash flow hedge relationships | | | (202) | | | (96) | | | (406) | | | (103) | Reported total interest income | | $ | 61,285 | | $ | 52,094 | | $ | 121,067 | | $ | 105,273 | | | | | | | | | | | | | | Total interest expense | | $ | 28,725 | | $ | 20,527 | | $ | 57,028 | | $ | 37,724 | Effects of cash flow hedge relationships | | | (254) | | | (8) | | | (496) | | | (8) | Reported total interest expense | | $ | 28,471 | | $ | 20,519 | | $ | 56,532 | | $ | 37,716 |
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| Schedule of interest rate swaps related to loan hedging program |
At June 30, 2024 and December 31, 2023, interest rate swaps related to the Company’s loan hedging program that were outstanding are presented in the following table (in thousands): | | | | | | | | | | | | | | | June 30, 2024 | | December 31, 2023 | | | | Notional | | | Estimated | | | Notional | | | Estimated | | | | Amount | | | Fair Value | | | Amount | | | Fair Value | Interest rate swap agreements: | | | | | | | | | | | | | Assets | | $ | 293,663 | | $ | 12,794 | | $ | 294,133 | | $ | 12,813 | Liabilities | | | 293,663 | | | (12,794) | | | 294,133 | | | (12,813) |
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| Schedule of interest rate swap to facilitate customer's transactions |
The Company establishes limits and monitors exposures for customer swap positions. Any fees received to enter the swap agreements at inception are recognized in earnings when received and is included in noninterest income. Such fees were as follows (in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2024 | | 2023 | | 2024 | | 2023 | Interest rate swap agreements | | $ | 163 | | $ | 158 | | $ | 275 | | $ | 497 |
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| Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] |
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| Derivative [Line Items] |
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| Schedule of Hedge Relationships on Income Statement |
| | | | | | | | | | | | | | | | | | | Weighted | | | | | | | | | | | | | | | Average | | | | | | | | | | | | | Balance | | Remaining | | Weighted | | | | | | | | | | | Sheet | | Maturity | | Average | | Receive | | Notional | | Estimated | Asset/Liability derivatives | | Location | | (In Years) | | Pay Rate | | Rate | | Amount | | Fair Value | June 30, 2024: | | | | | | | | | | | | | | | Interest rate swap agreements - securities | | Other assets | | 1.87 | | 4.32 | % | SOFR Overnight | | $ | 38,457 | | $ | 139 | Interest rate swap agreements - securities | | Other liabilities | | 3.19 | | 4.25 | % | SOFR Overnight | | $ | 17,050 | | $ | (25) | | | | | | | | | | | | | | | | December 31, 2023: | | | | | | | | | | | | | | | Interest rate swap agreements - securities | | Other liabilities | | 3.40 | | 4.25 | % | SOFR Overnight | | $ | 27,050 | | $ | (536) |
The effects of the Company’s fair value hedge relationships reported in interest income on taxable securities on the consolidated income statement were as follows (in thousands): | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2024 | | 2023 | | 2024 | | 2023 | Interest income on taxable securities | | $ | 5,177 | | $ | 4,335 | | $ | 9,620 | | $ | 7,986 | Effects of fair value hedge relationships | | | 143 | | | — | | | 249 | | | — | Reported interest income on taxable securities | | $ | 5,320 | | $ | 4,335 | | $ | 9,869 | | $ | 7,986 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | Gain (loss) on fair value hedging relationship | | 2024 | | 2023 | | 2024 | | 2023 | Interest rate swap agreements - securities: | | | | | | | | | | | | | Hedged items | | $ | 123 | | $ | — | | $ | 114 | | $ | — | Derivative designated as hedging instruments | | | (123) | | | — | | | (114) | | | — | Carry amount of hedged assets - mortgage-backed securities | | | 47,132 | | | — | | | 47,132 | | | — |
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| Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] |
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| Derivative [Line Items] |
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| Schedule of Fair Value Hedge Relationships in Balance Sheet |
At June 30, 2024 and December 31, 2023, cash flow hedges are as follows (in thousands): | | | | | | | | | | | | | | | | | | | June 30, 2024 | | December 31, 2023 | | | Balance Sheet | | Notional | | Estimated | | Balance Sheet | | Notional | | Estimated | | | Location | | Amount | | Fair Value | | Location | | Amount | | Fair Value | Cash flow hedges: | | | | | | | | | | | | | | | | | Assets | | Other liabilities | | $ | 100,000 | | $ | (1,201) | | Other liabilities | | $ | 100,000 | | $ | (556) | Liabilities | | Other assets | | | 175,000 | | | 309 | | Other liabilities | | | 150,000 | | | (881) | Liabilities | | Other liabilities | | | - | | | - | | Other assets | | | 25,000 | | | 7 |
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| Schedule of Hedge Relationships on AOCI |
The following table presents the effect of fair value and cash flow hedge accounting on AOCI (in thousands): | | | | | | | | | Derivatives in cash flow hedging relationships: | | | Amount of Gain (Loss) Recognized on OCI on Derivative | | Location of Gain or (Loss) Recognized from AOCI into Income | | | Amount of Gain or (Loss) Reclassified from AOCI into Income | Three Months Ended June 30, 2024 | | | | | | | | | Interest rate swaps - Assets | | $ | (80) | | Interest income | | $ | (202) | Interest rate swaps - Liabilities | | | 102 | | Interest expense | | | 254 | | | | | | | | | | Three Months Ended June 30, 2023 | | | | | | | | | Interest rate swaps - Assets | | $ | (1,152) | | Interest income | | $ | (96) | Interest rate swaps - Liabilities | | | 113 | | Interest expense | | | 8 | | | | | | | | | | Six Months Ended June 30, 2024 | | | | | | | | | Interest rate swaps - Assets | | $ | (1,201) | | Interest income | | $ | (406) | Interest rate swaps - Liabilities | | | 309 | | Interest expense | | | 496 | | | | | | | | | | Six Months Ended June 30, 2023 | | | | | | | | | Interest rate swaps - Assets | | $ | (1,733) | | Interest income | | $ | (103) | Interest rate swaps - Liabilities | | | 113 | | Interest expense | | | 8 |
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