DERIVATIVES AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes

The following table reflects information about the Company’s derivative positions for the periods indicated below for interest rate swaps which qualify as cash flow hedges for accounting purposes:

December 31, 2018
				Weighted Average Rate
	Notional Amount		Weighted Average Maturity	Current Rate Received		Pay Fixed Swap Rate		Fair Value
	(in thousands)		(in years)					(in thousands)
Interest rate swaps on borrowings	$	75,000	3.18	2.74	%	1.53	%	$	2,282
				Current Rate Paid		Receive Fixed Swap Rate
Interest rate swaps on loans	250,000		4.52	2.57	%	2.67	%	2,938
				Current Rate Paid		Receive Fixed Swap Rate Cap - Floor
Interest rate collars on loans	250,000		4.17	2.47	%	3.02% - 2.51%		3,344
Total	$	575,000						$	8,564
December 31, 2017
				Weighted Average Rate
	Notional Amount		Weighted Average Maturity	Current Rate Received		Pay Fixed Swap Rate		Fair Value
	(in thousands)		(in years)					(in thousands)
Interest rate swaps on borrowings	$	100,000	3.37	1.54	%	1.89	%	$	1,616
Total	$	100,000						$	1,616

Summary of customer related derivative positions, not designated as hedging

The following table reflects the Company’s customer related derivative positions for the periods indicated below for those derivatives not designated as hedging:

	Number of Positions (1)	Notional Amount Maturing
		Less than 1 year		Less than 2 years		Less than 3 years		Less than 4 years		Thereafter		Total		Fair Value
	December 31, 2018
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	235	$	50,702	$	124,222	$	97,904	$	47,308	$	631,471	$	951,607	$	(2,907	)
Pay fixed, receive variable	220	$	50,702	$	124,222	$	97,904	$	47,308	$	631,471	$	951,607	$	2,903
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	27	$	60,297	$	3,505	$	—	$	—	$	—	$	63,802	$	(1,404	)
Buys U.S. currency, sells foreign currency	27	$	60,297	$	3,505	$	—	$	—	$	—	$	63,802	$	1,434
	December 31, 2017
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	246	$	36,023	$	61,500	$	152,287	$	111,147	$	591,385	$	952,342	$	3,875
Pay fixed, receive variable	231	$	36,023	$	61,500	$	152,287	$	111,147	591,385		$	952,342	$	(3,880	)
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	15	$	26,382	$	3,780	$	—	$	—	$	—	$	30,162	$	1,202
Buys U.S. currency, sells foreign currency	15	$	26,382	$	3,780	$	—	$	—	$	—	$	30,162	$	(1,188	)

(1)

The Company may enter into one dealer swap agreement which offsets multiple commercial borrower swap agreements.

Fair value of derivative financial instruments as well as their classification on the balance sheet

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheet at the periods indicated:

	Asset Derivatives					Liability Derivatives
		Fair Value at		Fair Value at			Fair Value at		Fair Value at
	Balance Sheet Location	December 31, 2018		December 31, 2017		Balance Sheet Location	December 31, 2018		December 31, 2017
	(Dollars in thousands)
Derivatives designated as hedges
Interest rate derivatives	Other assets	$	8,955	$	1,880	Other liabilities	$	391	$	264
Derivatives not designated as hedges
Customer Related Positions:
Loan level derivatives	Other assets	15,580		14,236		Other liabilities	15,584		14,241
Foreign exchange contracts	Other assets	1,578		1,202		Other liabilities	1,548		1,188
Mortgage Derivatives
Interest rate lock commitments	Other assets	91		149		Other liabilities	—		—
Forward sales agreements	Other assets	106		9		Other liabilities	—		—
		17,355		15,596			17,132		15,429
Total		$	26,310	$	17,476		$	17,523	$	15,693

Effect of derivative financial instruments included in OCI and current earnings

The table below presents the effect of the Company’s derivative financial instruments included in OCI and current earnings for the periods indicated:    

	Years Ended December 31
	2018			2017			2016
	(Dollars in thousands)
Derivatives designated as hedges
Gain in OCI on derivatives (effective portion), net of tax	$	4,829		$	443		$	2,170
Gain (loss) reclassified from OCI into interest income or interest expense (effective portion)	$	1,000		$	(441	)	$	(2,520	)
Loss recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)
Interest expense	$	—		$	—		$	—
Other expense	—			—			—
Total	$	—		$	—		$	—
Derivatives not designated as hedges
Changes in fair value of customer related positions
Other income	$	46		$	6		$	73
Other expenses	(29		)	(21		)	(82		)
Changes in fair value of mortgage derivatives
Mortgage banking income	39			(39		)	(35		)
Total	$	56		$	(54	)	$	(44	)