Derivative Financial Instruments (Tables)
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9 Months Ended |
Sep. 30, 2024 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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Derivative Financial Instruments According to Type of Hedge Designation |
Our derivative financial instruments according to the type of hedge in which they are designated follows: | | | | | | | | | | | | | | | | | | | September 30, 2024 | | Notional Amount | | Average Maturity (years) | | Fair Value | | (Dollars in thousands) | Fair value hedge designation | | | | | | Pay-fixed interest rate swap agreement - commercial | $ | 5,745 | | | 4.6 | | $ | 239 | | Pay-fixed interest rate swap agreements - securities available for sale | 148,895 | | | 3.1 | | 11,259 | | Pay-fixed interest rate swap agreements - installment | 100,000 | | | 2.7 | | (1,741) | | Pay-fixed interest rate swap agreements - mortgage | 150,000 | | | 2.8 | | (2,779) | | Interest rate cap agreements - securities available for sale | 40,970 | | | 3.6 | | 181 | | Total | $ | 445,610 | | | 2.9 | | $ | 7,159 | | | | | | | | Cash flow hedge designation | | | | | | Interest rate floor agreements - commercial | $ | 325,000 | | | 2.5 | | $ | 7,281 | | | | | | | | No hedge designation | | | | | | Rate-lock mortgage loan commitments | $ | 26,947 | | | 0.1 | | $ | 253 | | Mandatory commitments to sell mortgage loans | 40,399 | | | 0.1 | | 25 | | Pay-fixed interest rate swap agreements - commercial | 492,129 | | | 5.2 | | (1,313) | | Pay-variable interest rate swap agreements - commercial | 492,129 | | | 5.2 | | 1,313 | | Total | $ | 1,051,604 | | | 4.9 | | $ | 278 | |
| | | | | | | | | | | | | | | | | | | December 31, 2023 | | Notional Amount | | Average Maturity (years) | | Fair Value | | (Dollars in thousands) | Fair value hedge designation | | | | | | Pay-fixed interest rate swap agreement - commercial | $ | 6,033 | | | 5.4 | | $ | 349 | | Pay-fixed interest rate swap agreements - securities available for sale | 148,895 | | | 3.9 | | 15,287 | | Pay-fixed interest rate swap agreements - installment | 100,000 | | | 3.4 | | (1,228) | | Pay-fixed interest rate swap agreements - mortgage | 100,000 | | | 4.3 | | (2,131) | | Interest rate cap agreements - securities available for sale | 40,970 | | | 4.3 | | 456 | | Total | $ | 395,898 | | | 3.9 | | $ | 12,733 | | | | | | | | Cash flow hedge designation | | | | | | Interest rate floor agreements - commercial | $ | 150,000 | | | 3.5 | | $ | 4,221 | | | | | | | | No hedge designation | | | | | | Rate-lock mortgage loan commitments | 18,081 | | | 0.1 | | 173 | | Mandatory commitments to sell mortgage loans | 30,442 | | | 0.1 | | (279) | | Pay-fixed interest rate swap agreements - commercial | 379,012 | | | 5.9 | | 7,169 | | Pay-variable interest rate swap agreements - commercial | 379,012 | | | 5.9 | | (7,169) | | Total | $ | 806,547 | | | 5.5 | | $ | (106) | |
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value |
Fair Values of Derivative Instruments | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Asset Derivatives | | Liability Derivatives | | September 30, 2024 | | December 31, 2023 | | September 30, 2024 | | December 31, 2023 | | Balance Sheet Location | | Fair Value | | Balance Sheet Location | | Fair Value | | Balance Sheet Location | | Fair Value | | Balance Sheet Location | | Fair Value | | (In thousands) | Derivatives designated as hedging instruments | | | | | | | | | | | | | | | | Pay-fixed interest rate swap agreements | Other assets | | $ | 11,519 | | | Other assets | | $ | 15,636 | | | Other liabilities | | $ | 4,541 | | | Other liabilities | | $ | 3,359 | | | | | | | | | | | | | | | | | | Interest rate cap agreements | Other assets | | 181 | | | Other assets | | 456 | | | Other liabilities | | — | | | Other liabilities | | — | | Interest rate floor agreements | Other assets | | 7,281 | | | Other assets | | 4,221 | | | Other liabilities | | — | | | Other liabilities | | — | | | | | 18,981 | | | | | 20,313 | | | | | 4,541 | | | | | 3,359 | | Derivatives not designated as hedging instruments | | | | | | | | | | | | | | | | Rate-lock mortgage loan commitments | Other assets | | 253 | | | Other assets | | 173 | | | Other liabilities | | — | | | Other liabilities | | — | | Mandatory commitments to sell mortgage loans | Other assets | | 25 | | | Other assets | | — | | | Other liabilities | | — | | | Other liabilities | | 279 | | Pay-fixed interest rate swap agreements - commercial | Other assets | | 9,101 | | | Other assets | | 12,683 | | | Other liabilities | | 10,414 | | | Other liabilities | | 5,514 | | Pay-variable interest rate swap agreements - commercial | Other assets | | 10,414 | | | Other assets | | 5,514 | | | Other liabilities | | 9,101 | | | Other liabilities | | 12,683 | | | | | 19,793 | | | | | 18,370 | | | | | 19,515 | | | | | 18,476 | | Total derivatives | | | $ | 38,774 | | | | | $ | 38,683 | | | | | $ | 24,056 | | | | | $ | 21,835 | |
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Derivative Instruments, Gain (Loss) |
The effect of derivative financial instruments on the Condensed Consolidated Statements of Operations follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | | Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | | Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | | | | Gain (Loss) Recognized in Income | | Three Month Periods Ended September 30, | | | Three Month Periods Ended September 30, | | Location of Gain (Loss) Recognized in Income | | Three Month Periods Ended September 30, | 2024 | | 2023 | | | 2024 | | 2023 | | | 2024 | | 2023 | | | | | | | | | | | | | | (In thousands) | Fair Value Hedges | | | | | | | | | | | | | | | | Pay-fixed interest rate swap agreement - commercial | | | | | | | | | | | Interest and fees on loans | | $ | (184) | | | $ | 96 | | Pay-fixed interest rate swap agreements - securities available for sale | | | | | | | | | | | Interest on securities available for sale - tax - exempt | | (4,882) | | | 926 | | Pay-fixed interest rate swap agreements - Installment | | | | | | | | | | | Interest and fees on loans | | (2,421) | | | 765 | | Pay-fixed interest rate swap agreements - Mortgage | | | | | | | | | | | Interest and fees on loans | | (2,940) | | | 785 | | | | | | | | | | | | | | | | | | Interest rate cap agreements - securities available for sale | $ | (255) | | | $ | (25) | | | Interest on securities available for sale - tax - exempt | | $ | (57) | | | $ | (55) | | | Interest on securities available for sale - tax - exempt | | (119) | | | 39 | | Interest rate cap agreements - installment | — | | | — | | | Interest and fees on loans | | — | | | — | | | Interest and fees on loans | | — | | | — | | Total | $ | (255) | | | $ | (25) | | | | | $ | (57) | | | $ | (55) | | | | | $ | (10,546) | | | $ | 2,611 | | | | | | | | | | | | | | | | | | Cash Flow Hedges | | | | | | | | | | | | | | | | Interest rate floor agreements - commercial | $ | 2,999 | | | $ | (502) | | | Interest and fees on loans | | $ | (333) | | | $ | (17) | | | Interest and fees on loans | | $ | (333) | | | $ | (17) | | | | | | | | | | | | | | | | | | No hedge designation | | | | | | | | | | | | | | | | Rate-lock mortgage loan commitments | | | | | | | | | | | Net gains on mortgage loans | | $ | 111 | | | $ | (147) | | Mandatory commitments to sell mortgage loans | | | | | | | | | | | Net gains on mortgage loans | | (122) | | | 238 | | Pay-fixed interest rate swap agreements - commercial | | | | | | | | | | | Interest income | | (15,031) | | | $ | 5,579 | | Pay-variable interest rate swap agreements - commercial | | | | | | | | | | | Interest income | | 15,031 | | | (5,579) | | Pay-variable interest rate swap agreement | | | | | | | | | | | Non-interest expense - other | | — | | | $ | — | | Total | | | | | | | | | | | | | $ | (11) | | | $ | 91 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Gain (Loss) Recognized in Other Comprehensive Income (Effective Portion) | | Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | | Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion) | | | | Gain (Loss) Recognized in Income | | Nine Month Periods Ended September 30, | | | Nine Month Periods Ended September 30, | | Location of Gain (Loss) Recognized in Income | | Nine Month Periods Ended September 30, | 2024 | | 2023 | | | 2024 | | 2023 | | | 2024 | | 2023 | | | | | | | | | | | | | | (In thousands) | Fair Value Hedges | | | | | | | | | | | | | | | | Pay-fixed interest rate swap agreement - commercial | | | | | | | | | | | Interest and fees on loans | | $ | (110) | | | $ | 113 | | Pay-fixed interest rate swap agreements - securities available for sale | | | | | | | | | | | Interest on securities available for sale - tax - exempt | | (4,028) | | | 550 | | Pay-fixed interest rate swap agreements - Installment | | | | | | | | | | | Interest and fees on loans | | (513) | | | 1,362 | | Pay-fixed interest rate swap agreements - Mortgage | | | | | | | | | | | Interest and fees on loans | | (648) | | | 785 | | | | | | | | | | | | | | | | | | Interest rate cap agreements - securities available for sale | $ | (194) | | | $ | (438) | | | Interest on securities available for sale - tax - exempt | | $ | (167) | | | $ | (207) | | | Interest on securities available for sale - tax - exempt | | (81) | | | 286 | | Interest rate cap agreements - installment | — | | | — | | | Interest and fees on loans | | — | | | — | | | Interest and fees on loans | | — | | | (14) | | Total | $ | (194) | | | $ | (438) | | | | | $ | (167) | | | $ | (207) | | | | | $ | (5,380) | | | $ | 3,082 | | | | | | | | | | | | | | | | | | Cash Flow Hedges | | | | | | | | | | | | | | | | Interest rate floor agreements - commercial | $ | 246 | | | $ | (502) | | | Interest and fees on loans | | $ | (838) | | | $ | (17) | | | Interest and fees on loans | | $ | (838) | | | $ | (17) | | | | | | | | | | | | | | | | | | No hedge designation | | | | | | | | | | | | | | | | Rate-lock mortgage loan commitments | | | | | | | | | | | Net gains on mortgage loans | | $ | 80 | | | $ | 916 | | Mandatory commitments to sell mortgage loans | | | | | | | | | | | Net gains on mortgage loans | | 304 | | | 169 | | Pay-fixed interest rate swap agreements - commercial | | | | | | | | | | | Interest income | | (8,482) | | | 4,694 | | Pay-variable interest rate swap agreements - commercial | | | | | | | | | | | Interest income | | 8,482 | | | (4,694) | | Pay-variable interest rate swap agreement | | | | | | | | | | | Non-interest expense - other | | — | | | (12) | | Total | | | | | | | | | | | | | $ | 384 | | | $ | 1,073 | |
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