The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements.

Interest Rate Swaps Designated as Cash Flow Hedges: Interest rate swaps with a notional amount of $230.0 million as of March 31, 2019 and December 31, 2018 were designated as cash flow hedges of certain interest-bearing deposits. On a quarterly basis, the Company performs a qualitative hedge effectiveness assessment. This assessment takes into consideration any adverse developments related to the counterparty’s risk of default and any negative events or circumstances that affect the factors that originally enabled the Company to assess that it could reasonably support, qualitatively, an expectation that the hedging relationship was and will continue to be highly effective. As of March 31, 2019, there were no events or market conditions that would result in hedge ineffectiveness. The aggregate fair value of the swaps is recorded in other assets/liabilities with changes in fair value recorded in other comprehensive income. The amount included in accumulated other comprehensive income would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining terms of the swaps.

The following table presents information about the interest rate swaps designated as cash flow hedges as of March 31, 2019 and December 31, 2018:

(Dollars in thousands)	March 31, 2019				December 31, 2018
Notional amount	$	230,000			$	230,000
Weighted average pay rate		2.04		%		2.04	%
Weighted average receive rate		2.54		%		2.33	%
Weighted average maturity		2.40		years		2.65	years
Unrealized (loss)/gain, net	$	(739	)		$	808

Number of contracts		11				11

Net interest income/(expense) recorded on these swap transactions totaled $335 thousand and $20 thousand for the three months ended March 31, 2019 and 2018, respectively, and is reported as a component of interest expense.

The following table presents the net gain recorded in accumulated other comprehensive (loss)/income and the consolidated financial statements relating to the cash flow derivative instruments for the three months ended March 31, 2019 and March 31, 2018:

	For the Three Months Ended March 31,
(In thousands)	2019			2018
Interest rate contracts
Amount of gain/(loss) recognized in OCI	$	(1,547	)	$	741
Amount of loss reclassified from OCI to interest expense		(31	)		(31	)

During the first quarter of 2018, the Company recognized an unrealized after-tax gain of $220 thousand in accumulated other comprehensive income/(loss) related to the termination of two interest rate swaps designated as cash flow hedges. The gain is being amortized into earnings over the remaining life of the terminated swaps. The Company recognized pre-tax interest income of $31 thousand for the three months ended March 31, 2019 related to the amortization of the gain on the terminated interest rate swaps designated as cash flow hedges.

The following tables reflect the cash flow hedges included in Other Assets and Other Liabilities in the financial statements as of March 31, 2019 and December 31, 2018:

	March 31, 2019
	Notional		Fair
(In thousands)	Amount		Value
Interest rate swaps related to interest-bearing deposits	$	230,000	$	(739	)
Total included in other assets		130,000		1,096
Total included in other liabilities		100,000		(1,835	)

	December 31, 2018
	Notional		Fair
(In thousands)	Amount		Value
Interest rate swaps related to interest-bearing deposits	$	230,000	$	808
Total included in other assets		130,000		1,657
Total included in other liabilities		100,000		(849	)

Derivatives Not Designated as Accounting Hedges: The Company offers facility specific / loan level swaps to its customers and offsets its exposure from such contracts by entering into mirror image swaps with a financial institution / swap counterparty (loan level / back to back swap program). The customer accommodations and any offsetting swaps are treated as non-hedging derivative instruments which do not qualify for hedge accounting (“standalone derivatives”). The notional amount of the swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual contracts. The fair value of the swaps is recorded as both an asset and a liability, in other assets and other liabilities, respectively, in equal amounts for these transactions.

(Dollars in thousands)	March 31, 2019			December 31, 2018
Notional amount	$	567,842		$	558,690
Fair value	$	16,515		$	9,689
Weighted average pay rates		4.44	%		4.44	%
Weighted average receive rates		4.37	%		4.24	%
Weighted average maturity		7.0	years		7.1	years

Number of contracts		69			67