Derivative Instrument and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Company's Outstanding Interest Rate Swaps

The following table summarizes the terms of the Company’s outstanding interest rate swap agreements entered into to manage its exposure to the variability in future cash flows at September 30, 2024 (dollars in thousands):

Effective Date	Expiration Date	Notional Amount		Pay Fixed Rate
4/11/2022	4/11/2027	$	50,000	0.787%
1/24/2023	1/24/2026	$	30,000	3.669%
5/5/2023	5/5/2026	$	25,000	3.4615%

Fair Values of Derivative Instruments on the Balance Sheet

The table below presents the notional amounts, respective fair values of the Company’s derivative financial instruments, as well as their classification on the balance sheet as of September 30, 2024 and December 31, 2023 (in thousands):

					Asset derivatives					Liability derivatives
	Gross notional amount					Fair value					Fair value
	September 30, 2024		December 31, 2023		Balance sheet line item	September 30, 2024		December 31, 2023		Balance sheet line item	September 30, 2024		December 31, 2023
Derivatives designated as hedging instruments
Cash flow hedges	$	105,000	$	105,000	Other assets	$	4,097	$	5,939	Other liabilities	$	31	$	—
Total derivatives	$	105,000	$	105,000		$	4,097	$	5,939		$	31	$	—
Derivatives not designated as hedging instruments
Interest rate swaps (1)	$	1,130,680	$	1,104,804	Other assets	$	31,597	$	37,517	Other liabilities	$	31,600	$	37,519
Credit contracts		81,878		81,211	Other assets		—		—	Other liabilities		—		—
Mortgage banking		16,376		5,292	Other assets		159		50	Other liabilities		14		2
Total derivatives	$	1,228,934	$	1,191,307		$	31,756	$	37,567		$	31,614	$	37,521

(1)The Company was holding collateral of $28.3 million and $40.4 million against its net obligations under these contracts at September 30, 2024 and December 31, 2023, respectively.

Effect of Derivative Instruments on the Income Statement

The table below presents the effect of the Company’s derivative financial instruments on the income statement for the three and nine months ended September 30, 2024 and 2023 (in thousands):

		Gain (loss) recognized in income				Gain (loss) recognized in income
	Line item of gain (loss)	Three months ended September 30,				Nine months ended September 30,
Undesignated derivatives	recognized in income	2024		2023		2024		2023
Interest rate swaps	Income from derivative instruments, net	$	212	$	93	$	661	$	1,219
Credit contracts	Income from derivative instruments, net		—		58		5		109
Mortgage banking	Income from derivative instruments, net		—		68		97		90
Total undesignated		$	212	$	219	$	763	$	1,418