DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2022

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

Schedule of Information About Derivative Assets and Liabilities

	December 31, 2022
			Weighted
	Notional		Average		Fair Value		Location Fair
	Amount		Maturity		Asset (Liability)		Value Asset
	(in thousands)		(in years)		(in thousands)		(Liability)
Cash flow hedges:
Interest rate swap on wholesale fundings	$	75,000		2.0	$	4,978	Other assets
Interest rate swap on variable rate loans		50,000		3.2		(4,941)	Other liabilities
Total cash flow hedges		125,000				37
Fair value hedges:
Interest rate swap on securities		37,190		6.6		4,774	Other assets
Total fair value hedges		37,190				4,774
Economic hedges:
Customer Loan Swaps-MNA Counterparty		191,987		5.8		(20,287)	Other liabilities
Customer Loan Swaps-RPA Counterparty		113,928		6.0		—	Other liabilities
Customer Loan Swaps-Customer		305,914		5.9		20,287	Other assets
Total economic hedges		611,829				—
Total	$	774,019			$	4,811

	December 31, 2021
			Weighted
	Notional		Average		Fair Value		Location Fair
	Amount		Maturity		Asset (Liability)		Value Asset
	(in thousands)		(in years)		(in thousands)		(Liability)
Cash flow hedges:
Interest rate swap on wholesale fundings	$	75,000		3.0	$	(121)	Other liabilities
Interest rate swap on variable rate loans		50,000		4.2		(756)	Other liabilities
Total cash flow hedges		125,000				(877)
Fair value hedges:
Interest rate swap on securities		37,190		7.6		(530)	Other liabilities
Total fair value hedges		37,190				(530)
Economic hedges:
Forward sale commitments		16,600		0.1		15	Other assets
Customer Loan Swaps-MNA Counterparty		260,102		6.2		(9,429)	Other liabilities
Customer Loan Swaps-RPA Counterparty		115,285		6.7		(4,421)	Other liabilities
Customer Loan Swaps-Customer		375,387		6.4		13,850	Other assets
Total economic hedges		767,374				15
Non-hedging derivatives:
Interest rate lock commitments		14,059		0.1		283	Other assets
Total non-hedging derivatives		14,059				283
Total	$	943,623			$	(1,109)

Schedule of Amounts Recorded On The Balance Sheet

				Cumulative Amount of Fair
	Location of Hedged Item on	Carrying Amount of Hedged		Value Hedging Adjustment in
	Balance Sheet	Assets		Carrying Amount
December 31, 2022
Interest rate swap on securities	Securities Available for Sale	$	30,045	$	(7,145)
December 31, 2021
Interest rate swap on securities	Securities Available for Sale	$	39,726	$	2,536

Schedule of Derivative Instruments Gain (Loss)

	Year Ended December 31, 2022
	Amount of			Amount of
	Gain (Loss)			Gain (Loss)
	Recognized in			Reclassified		Location of	Amount of
	Other		Location of Gain (Loss)	from Other		Gain (Loss)	Gain (Loss)
	Comprehensive		Reclassified from Other	Comprehensive		Recognized in	Recognized
(in thousands)	Income (1)		Comprehensive Income	Income		Income	in Income
Cash flow hedges:
Interest rate swap on wholesale funding	$	3,922	Interest expense	$	—	Interest expense	$	475
Interest rate swap on variable rate loans		(3,218)	Interest income		—	Interest income		(601)
Total cash flow hedges		704			—			(126)
Fair value hedges:
Interest rate swap on securities		—	Interest income		—	Interest income		140
Total fair value hedges		—			—			140
Economic hedges:
Forward commitments		—	Other income		—	Mortgage banking income		(15)
Total economic hedges		—			—			(15)
Non-hedging derivatives:
Interest rate lock commitments		—	Other income		—	Mortgage banking income		(283)
Total non-hedging derivatives		—			—			(283)
Total	$	704		$	—		$	(284)

(1) As of December 31, 2022, we do not expect any gains or losses from accumulated other comprehensive income into earnings within the next 12 months.

	Year Ended December 31, 2021
	Amount of			Amount of
	Gain (Loss)			Gain (Loss)
	Recognized in			Reclassified		Location of	Amount of
	Other		Location of Gain (Loss)	from Other		Gain (Loss)	Gain (Loss)
	Comprehensive		Reclassified from Other	Comprehensive		Recognized in	Recognized
(in thousands)	Income		Comprehensive Income	Income		Income	in Income
Cash flow hedges:
Interest rate swap on wholesale funding	$	1,950	Interest expense	$	—	Interest expense	$	(727)
Interest rate swap on variable rate loans		(582)	Interest income			Interest income		211
Total cash flow hedges		1,368			—			(516)
Fair value hedges:
Interest rate swap on securities		3,087	Interest income		—	Interest income		(566)
Total economic hedges		3,087			—			(566)
Economic hedges:
Forward commitments		—	Other income		—	Mortgage banking income		110
Total economic hedges		—			—			110
Non-hedging derivatives:
Interest rate lock commitments		—	Other income		—	Mortgage banking income		261
Total non-hedging derivatives		—			—			261
Total	$	4,455		$	—		$	(711)

Schedule of Gain Loss in Statement of Income

	Year Ended December 31, 2022
	Interest and Dividend Income				Interest Expense
(in thousands)	Loans		Securities and other		Deposits		Borrowings		Non-interest Income
Income and expense line items presented in the consolidated statements of income	$	107,797	$	18,729	$	7,344	$	5,501	$	35,321
The effects of cash flow and fair value hedging:
Gain (loss) on cash flow hedges:
Interest rate swap on wholesale funding		—		—		—		475		—
Interest rate swap on variable rate loans		(601)		—		—		—		—
Gain (loss) on fair value hedges:
Interest rate swap on securities		—		140		—		—		—
	Year Ended December 31, 2021
	Interest and Dividend Income				Interest Expense
(in thousands)	Loans		Securities and other		Deposits		Borrowings		Non-interest Income
Income and expense line items presented in the consolidated statements of income	$	95,236		15,568	$	8,543		6,688	$	42,261
The effects of cash flow and fair value hedging:
Gain (loss) on cash flow hedges:
Interest rate swap on wholesale funding		—		—		(58)		(669)		—
Interest rate swap on variable rate loans		211		—		—		—		—
Gain (loss) on fair value hedges:
Interest rate swap on securities		—		(566)		—		—		—

Schedule of Offsetting Liabilities

	Gross Amounts Offset in the Consolidated Balance Sheet
	Derivative				Cash Collateral
(in thousands)	Liabilities		Derivative Assets		Pledged		Net Amount
As of December 31, 2022
Customer Loan Derivatives:
MNA counterparty	$	(20,287)	$	20,287	$	—	$	—
RPA counterparty		—		—		—		—
Total	$	(20,287)	$	20,287	$	—	$	—