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Derivative Instruments and Hedging Activities
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities
Interest Rate Swaps

The Corporation periodically uses interest rate swap agreements to modify interest rate characteristics from variable to fixed or fixed to variable in order to reduce the impact of interest rate changes on future net interest income. The Corporation's credit exposure on interest rate swaps includes changes in fair value and any collateral that is held by a third party.

In May 2022, the Corporation entered into an interest rate swap classified as a cash flow hedge with a notional amount of $250.0 million to hedge the interest payments received on a pool of variable rate loans. Under the terms of the swap agreement, the Corporation paid a variable rate equal to the Prime Rate and received a fixed rate of 5.99% with a maturity date of May 4, 2026. On August 2, 2024, the Corporation terminated the swap pursuant to the termination clause. The Corporation incurred an unwind fee of $4.0 million, of which $946 thousand was reclassified to earnings as a reduction to interest income since termination. Additionally, unamortized origination and third-party fees totaled $198 thousand at December 31, 2024. The remaining $3.3 million will be amortized into interest income over the remaining 16 months of the original swap.

Credit Derivatives

The Corporation has agreements with third-party financial institutions whereby the third-party financial institution enters
into interest rate derivative contracts with loan customers referred to them by the Corporation. By the terms of the agreements, the third-party financial institution has recourse to the Corporation for any exposure created under each swap contract in the event the customer defaults on the swap agreement and the agreement is in a paying position to the third-party financial institution. These transactions represent credit derivatives and are a customary arrangement that allows the Corporation to provide access to interest rate swap transactions for customers without issuing the swap.

At December 31, 2024, the Corporation had exposure to 135 variable-rate to fixed-rate interest rate swap transactions between the third-party financial institution and customers with a current notional amount of $860.4 million and remaining maturities ranging from 4 months to 10 years. At December 31, 2024, the fair value of the Corporation's interest rate swap credit derivatives was a liability of $67 thousand. At December 31, 2024, the fair value of the swaps to the customers was a net gain of $56.6 million. At December 31, 2024, the Corporation's credit exposure related to the customer totaled $959 thousand.

The maximum potential payments by the Corporation to the third-party financial institution under these credit derivatives are not estimable as they are contingent on future interest rates and the agreements do not provide for a limitation of the maximum potential payment amount.

Mortgage Banking Derivatives

Derivative loan commitments represent agreements for delayed delivery of financial instruments in which the buyer agrees to purchase, and the seller agrees to deliver, at a specified future date, a specified instrument at a specified price or yield. The Corporation's derivative loan commitments are commitments to sell loans secured by 1- to 4-family residential properties whose predominant risk characteristic is interest rate risk.

Derivatives Tables

The following table presents the notional amounts and fair values of derivatives designated as hedging instruments recorded on the consolidated balance sheets at December 31, 2024 and 2023. The Corporation pledges cash or securities to cover the negative fair value of derivative instruments. Cash collateral associated with derivative instruments are not added to or netted against the fair value amounts.
  Derivative AssetsDerivative Liabilities
(Dollars in thousands)Notional
Amount		Balance Sheet
Classification		Fair
Value		Balance Sheet
Classification		Fair
Value
At December 31, 2024
Total$— $— $— 
At December 31, 2023
Interest rate swap - cash flow hedge $250,000  $— Other liabilities$5,779 
Total$250,000 $— $5,779 

The following table presents the notional amounts and fair values of derivatives not designated as hedging instruments recorded on the consolidated balance sheets at December 31, 2024 and 2023:
  Derivative AssetsDerivative Liabilities
(Dollars in thousands)Notional
Amount		Balance Sheet
Classification		Fair
Value		Balance Sheet
Classification		Fair
Value
At December 31, 2024
Credit derivatives$860,423  $— Other liabilities$67 
Interest rate locks with customers23,291 Other assets214  — 
Forward loan sale commitments39,944 Other assets12  — 
Total$923,658 $226 $67 
At December 31, 2023
Credit derivatives$862,756  $— Other liabilities$186 
Interest rate locks with customers21,174 Other assets717  — 
Forward loan sale commitments32,811  — Other liabilities427 
Total$916,741 $717 $613 
The following table presents amounts included in the consolidated statements of income for derivatives designated as hedging instruments for the periods indicated:
 Statement of Income ClassificationFor the Years Ended December 31,
(Dollars in thousands)202420232022
Interest rate swaps—cash flow hedge—net interest paymentsInterest income$(3,747)$(5,593)$521 
Reclassification adjustment included in earnings (1)Interest income(946)— — 
Total net (loss) gain$(4,693)$(5,593)$521 
(1) Represents reclassification to earnings as a reduction to interest income of amounts included in accumulated other comprehensive income on the consolidated balance sheet related to the interest rate swap terminated on August 2, 2024.

The following table presents amounts included in the consolidated statements of income for derivatives not designated as hedging instruments for the periods indicated:
 Statement of Income ClassificationFor the Years Ended December 31,
(Dollars in thousands)202420232022
Credit derivativesOther noninterest income$562 $1,167 $2,871 
Interest rate locks with customersNet (loss) gain on mortgage banking activities(503)597 (646)
Forward loan sale commitmentsNet gain (loss) on mortgage banking activities439 (456)(58)
Total net gain$498 $1,308 $2,167 

The following table presents amounts included in accumulated other comprehensive (loss) income for derivatives designated as hedging instruments at December 31, 2024 and 2023:
 Accumulated Other
Comprehensive Income		At December 31,
(Dollars in thousands)20242023
Interest rate swap—cash flow hedge (1)Fair value, net of taxes$(2,422)$(4,566)
Total$(2,422)$(4,566)