DERIVATIVES AND HEDGING (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Derivative Financial Instruments

The following table presents the fair value of the Company's derivative financial instruments as well as their classification on the consolidated statements of condition as of the dates indicated:

	Derivative Assets					Derivative Liabilities
(Dollars in thousands)	Notional Amount		Location	Fair Value		Notional Amount		Location	Fair Value
March 31, 2023
Derivatives designated as hedging instruments:
Interest rate contracts(1)	$	60,000	Other assets	$	10,996	$	433,000	Accrued interest and other liabilities	$	6,859
Total derivatives designated as hedging instruments				$	10,996				$	6,859
Derivatives not designated as hedging instruments:
Customer loan swaps(1)	$	288,076	Other assets	$	11,479	$	288,076	Accrued interest and other liabilities	$	11,554
Risk participation agreements	21,696		Other assets	—		44,127		Accrued interest and other liabilities	—
Fixed rate mortgage interest rate lock commitments	6,883		Other assets	71		5,843		Accrued interest and other liabilities	43
Forward delivery commitments	2,887		Other assets	32		1,651		Accrued interest and other liabilities	14
Total derivatives not designated as hedging instruments				$	11,582				$	11,611
December 31, 2022
Derivatives designated as hedging instruments:
Interest rate contracts(1)	$	110,000	Other assets	$	13,051	$	133,000	Accrued interest and other liabilities	$	5,515
Total derivatives designated as hedging instruments				$	13,051				$	5,515
Derivatives not designated as hedging instruments:
Customer loan swaps(1)	$	260,130	Other assets	$	14,802	$	345,545	Accrued interest and other liabilities	$	14,850
Risk participation agreements	21,818		Other assets	—		53,704		Accrued interest and other liabilities	—
Fixed rate mortgage interest rate lock commitments	4,493		Other assets	31		9,597		Accrued interest and other liabilities	87
Forward delivery commitments	5,259		Other assets	114		—		Accrued interest and other liabilities	—
Total derivatives not designated as hedging instruments				$	14,947				$	14,937

(1)    Reported fair values include accrued interest receivable and payable.

The following table shows the carrying amount and associated cumulative basis adjustments related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships:

Location in Consolidated Statements of Condition	Carrying Amount of Hedged Assets/(Liabilities)				Cumulative Fair Value Hedging Adjustment in the Carrying Amount of the Hedged Assets/(Liabilities)
(Dollars in thousands)	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022
Loans(1)	$	301,552	$	—	$	(1,552)	$	—
Total	$	301,552	$	—	$	(1,552)	$	—

(1)     These amounts include the amortized cost basis of closed portfolios of fixed rate assets used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At March 31, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $853.7 million and the amounts of the designated hedged items were $300.0 million.

Schedule of Cash Flow Hedging Instruments, Location

The table below presents the effect of cash flow hedge accounting, before tax, on AOCI for the periods indicated:

(Dollars in thousands)	Amount of Gain (Loss) Recognized in OCI on Derivative		Amount of Gain (Loss) Recognized in OCI Included Component		Amount of Gain (Loss) Recognized in OCI Excluded Component		Location of Gain (Loss) Recognized from AOCI into Income	Amount of Gain (Loss) Reclassified from AOCI into Income		Amount of Gain (Loss) Reclassified from AOCI into Income Included Component		Amount of Gain (Loss) Reclassified from AOCI into Income Excluded Component
For the Three Months Ended March 31, 2023
Interest rate contracts	$	182	$	182	$	—	Interest and fees on loans	$	(717)	$	(717)	$	—
Interest rate contracts	(1)		(1)		—		Interest on deposits	306		306		—
Interest rate contracts	(796)		(796)		—		Interest on borrowings	487		487		—
Interest rate contracts	(934)		(934)		—		Interest on junior subordinated debentures	133		133		—
Total	$	(1,549)	$	(1,549)	$	—		$	209	$	209	$	—
For the Three Months Ended March 31, 2022
Interest rate contracts	$	(3,011)	$	(3,011)	$	—	Interest and fees on loans	$	382	$	382	$	—
Interest rate contracts	3,488		3,488		—		Interest on deposits	(149)		(149)		—
Interest rate contracts	3,158		3,158				Interest on junior subordinated debentures	(351)		(351)
Total	$	3,635	$	3,635	$	—		$	(118)	$	(118)	$	—

The table below presents the effect of fair value and cash flow hedge accounting on the consolidated statements of income for the periods indicated:

	Location and Amount of Gain (Loss) Recognized in Income
	Three Months Ended March 31,
	2023								2022
(Dollars in thousands)	Interest and fees on loans		Interest on deposits		Interest on borrowings		Interest on junior subordinated debentures		Interest and fees on loans		Interest on deposits		Interest on junior subordinated debentures
Total presented on the consolidated statements of income in which the effects of cash flow hedges are recorded	$	45,332	$	15,832	$	2,085	$	528	$	32,035	$	1,833	$	529
Gain (loss) on fair value hedging relationships
Interest rate contracts:
Hedged items	$	1,552	$	—	$	—	$	—	$	—	$	—	$	—
Derivatives designated as hedging instruments	$	(1,077)	$	—	$	—	$	—	$	—	$	—	$	—
Gain (loss) on cash flow hedging relationships
Interest rate contracts:
Amount of gain (loss) reclassified from AOCI into income	$	(717)	$	306	$	487	$	133	$	382	$	(149)	$	(351)
Amount of gain (loss) reclassified from AOCI into income - included component	$	(717)	$	306	$	487	$	133	$	382	$	(149)	$	(351)
Amount of gain (loss) reclassified from AOCI into income - excluded component	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Schedule of Derivatives Not Designated as Hedging Instruments

The table below presents the effect of the Company's derivative financial instruments that are not designated as hedging instruments on the consolidated statements of income for the periods indicated:

	Location of Gain (Loss) Recognized in Income	Amount of Gain (Loss) Recognized in Income
		Three Months Ended March 31,
(Dollars in thousands)		2023		2022
Customer loan swaps	Other expense	$	(27)	$	94
Fixed rate mortgage interest rate lock commitments	Mortgage banking income, net	84		(459)
Forward delivery commitments	Mortgage banking income, net	(96)		166
Total		$	(39)	$	(199)