Derivatives and hedging activities (Tables)

12 Months Ended

Dec. 31, 2023

Derivatives and hedging activities

Schedule of amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges

As of December 31, 2023, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges:

Line Item in the Statement of Financial Position in Which the Hedged Item is Included		Amortized Amount of the Hedged Assets/(Liabilities)				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities)
(Dollars in thousands)		2023		2022		2023		2022
AFS Securities (1)	$	143,573	$		$	871	$
Fixed Rate Loans (2)		50,462				462
Total	$	194,035	$		$	1,333	$

(1) Fixed Rate AFS Securities. 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 December 31, 2023, the amortized cost basis of the closed portfolios used in these hedging relationships was $143.6 million. The amounts of the designated hedged items were $100.0 million.

(2) Fixed Rate Loan Assets. These amounts include the carrying value of fixed rate loan 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 December 31, 2023, the principal value of the hedged item was $50.0 million.

Schedule of fair value of derivative financial instruments and balance sheet classification

Fair Values of Derivative Instruments
		Derivative Assets								Derivative Liabilities
		As of December 31, 2023				As of December 31, 2022 (1)				As of December 31, 2023				As of December 31, 2022
(Dollars in thousands)		Notional Amount	Balance Sheet Location		Fair Value	Balance Sheet Location		Fair Value		Notional Amount	Balance Sheet Location		Fair Value	Balance Sheet Location		Fair Value
Derivatives designated as hedging instruments
Interest Rate Products	$		Other Assets	$		Other Assets	$	1	$	150,000	Other Liabilities	$	1,270	Other Liabilities	$
Total derivatives designated as hedging instruments				$			$	1				$	$1,270		$
Derivatives not designated as hedging instruments
Interest Rate Products	$	230,323	Other Assets	$	19,833	Other Assets	$	22,195	$	230,323	Other Liabilities	$	19,364	Other Liabilities	$	21,466
Other Contracts		8,403	Other Assets		3	Other Assets				7,408	Other Liabilities			Other Liabilities
Total derivatives not designated as hedging instruments				$	19,836		$	22,195				$	19,364		$	21,466

(1) The notional amount of interest rate floor at December 31, 2022 was $25.0 million. Notional asset amount of interest rate swaps at December 31, 2022 was $187.3 million and $1.5 million for risk participation agreements.

Schedule of effect of fair value and cash flow hedge accounting on accumulated other comprehensive income

(Dollars in thousands) Twelve months ended December 31, 2023		Amount of (Loss) Recognized in OCI on Derivative		Amount of (Loss) Recognized in OCI Included Component		Amount of (Loss) Recognized in OCI Excluded Component	Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income		Amount of (Loss) Reclassified from Accumulated OCI into Income		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component		Amount of (Loss) Reclassified from Accumulated OCI into Income Excluded Component
Derivatives in Cash Flow Hedging Relationships
Interest Rate Products	$	(1)	$		$	(1)	Interest Income	$	(48)	$		$	(48)
Total	$	(1)	$		$	(1)		$	(48)	$		$	(48)
(Dollars in thousands) Twelve months ended December 31, 2022		Amount of (Loss) Recognized in OCI on Derivative		Amount of (Loss) Recognized in OCI Included Component		Amount of (Loss) Recognized in OCI Excluded Component	Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income		Amount of Gain Reclassified from Accumulated OCI into Income		Amount of Gain Reclassified from Accumulated OCI into Income Included Component		Amount of (Loss) Reclassified from Accumulated OCI into Income Excluded Component
Derivatives in Cash Flow Hedging Relationships
Interest Rate Products	$	(515)	$	(497)	$	(18)	Interest Income	$	212	$	276	$	(64)
Total	$	(515)	$	(497)	$	(18)		$	212	$	276	$	(64)

*     Amounts disclosed are gross and not net of taxes.

Schedule of effect of derivative financial instruments on Income Statement

	Location and Amount of Gain or (Loss)
	Recognized in Income on Fair Value and
	Cash Flow Hedging Relationships
	For the twelve months ended December 31,
		2023		2022
(Dollars in thousands)		Interest Income		Interest Income
Total amounts of income and expense line items presented in the statements of income and comprehensive
income (loss) in which the effects of fair value or cash flow hedges are recorded.	$	142	$	212
The effects of fair value and cash flow hedging:
Gain or (loss) on fair value hedging relationships
Interest contracts
Hedged items		871
Derivatives designated as hedging instruments		(681)
Gain or (loss) on cash flow hedging relationships
Interest contracts
Amount of (loss) gain reclassified from AOCI into income		(48)		212
Amount of gain reclassified from AOCI into income - Included Component				276
Amount of (loss) reclassified from AOCI into income - Excluded Component	$	(48)	$	(64)

Schedule of gain (loss) on derivative instruments not designated as hedging instruments

		Amount of Gain or (Loss)		Amount of Gain
		Recognized in		Recognized in
	Location of Gain or (Loss)	Income on Derivative		Income
	Recognized in Income on	Twelve Months Ended		Twelve Months Ended
(Dollars in thousands)	Derivative	December 31, 2023		December 31, 2022
Derivatives Not Designated as Hedging Instruments:
Interest Rate Products	Other income / (expense)	$	(262)	$	516
Other Contracts	Other income / (expense)		(6)		5
Total		$	(268)	$	521
Fee Income	Fee income	$	652	$	106

Schedule of offsetting derivatives

Offsetting of Derivative Assets
as of December 31, 2023
						Gross Amounts Not Offset in the Balance Sheet
	Gross			Net Amounts
	Amounts of		Gross Amounts	of Assets
	Recognized		Offset in the	presented in the		Financial		Cash Collateral		Net
(Dollars in thousands)	Assets		Balance Sheet	Balance Sheet		Instruments		Posted		Amount
Derivatives	$	19,833	$	$	19,833	$		$	17,590	$	2,243
Offsetting of Derivative Liabilities
as of December 31, 2023
						Gross Amounts Not Offset in the Balance Sheet
	Gross			Net Amounts
	Amounts of		Gross Amounts	of Liabilities
	Recognized		Offset in the	presented in the		Financial		Cash Collateral		Net
(Dollars in thousands)	Liabilities		Balance Sheet	Balance Sheet		Instruments		Posted*		Amount
Derivatives	$	20,633	$	$	20,633	$	20,633	$		$
*Cash collateral of $2,450 was paid but not presented as an offset above.
Offsetting of Derivative Assets
as of December 31, 2022
						Gross Amounts Not Offset in the Balance Sheet
	Gross			Net Amounts
	Amounts of		Gross Amounts	of Assets
	Recognized		Offset in the	presented in the		Financial		Cash Collateral		Net
(Dollars in thousands)	Assets		Balance Sheet	Balance Sheet		Instruments		Posted		Amount
Derivatives	$	22,196	$	$	22,196	$		$	14,530	$	7,666
Offsetting of Derivative Liabilities
as of December 31, 2022
						Gross Amounts Not Offset in the Balance Sheet
	Gross			Net Amounts
	Amounts of		Gross Amounts	of Liabilities
	Recognized		Offset in the	presented in the		Financial		Cash Collateral		Net
(Dollars in thousands)	Liabilities		Balance Sheet	Balance Sheet		Instruments		Posted		Amount
Derivatives	$	21,466	$	$	21,466	$	21,466	$		$