Derivatives and Hedging	9 Months Ended
Derivatives and Hedging	Sep. 30, 2022
Derivatives and Hedging [Abstract]
Derivatives and Hedging	Note 5: Derivatives and Hedging The Company is exposed to certain risks arising from both its business operations and economic conditions, including interest rate, liquidity, and credit risk. The Company uses derivative financial instruments as part of its risk management activities to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Cash Flow Hedges of Interest Rate Risk The Company uses interest rate derivatives to add stability to interest income and expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company uses interest rate swaps and collars as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate collars designated as cash flow hedges involve payments of variable-rate amounts if interest rates rise above the cap strike rate on the contract and the receipt of variable-rate amounts if interest rates fall below the floor strike rate on the contract. During 2022, such derivatives were used to hedge the variable cash flows associated with existing variable-rate loan assets. The five swaps that were entered into in 2021 were terminated during the third quarter of 2022, however, the amortization of the gains on these instruments will start in 2023 based on the original effective dates of these swaps. The Company also entered into a new interest rate collar during the third quarter of 2022. Derivatives designated and that qualify as cash flow hedges include one instrument with a notional amount of $ 250 million at September 30, 2022 and five instruments with an aggregate notional value of $ 100 million at December 31, 2021. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income (Loss) (“AOCI”) and subsequently reclassified into interest income or expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest income and expense as interest payments are received and made on the Company’s variable-rate assets and liabilities. The derivative financial instruments did not impact the Condensed Consolidated Statements of Income for the three- and nine-month periods ended September 30, 2022. The Company estimates that less than $ 0.1 million will be reclassified as a decrease to interest expense during the next twelve months. The Company is hedging its exposure to the variability in future cash flows for forecasted transactions over a maximum period of 6.6 years. Non-designated Hedges Derivatives not designated as hedges are not speculative and result from a service provided to clients. The Company executes interest rate swaps with customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives that the Company executes with a third-party, such that the Company minimizes its net risk exposure resulting from such transactions. Interest rate derivatives associated with this program do not meet the strict hedge accounting requirements and changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. Swap fees earned upon origination and credit valuation adjustments that represent the risk of a counterparty’s default are reported on the Consolidated Statements of Income as swap fee income, net. The effect of the Company’s derivative financial instruments gain (loss) is reported on the Consolidated Statements of Cash Flows within “other assets” and “other liabilities”. These 48 and 54 swaps had an aggregate notional amount of $ 409 million and $ 535 million at September 30, 2022 and December 31, 2021, respectively. Fair Values of Derivative Instruments on the Consolidated Balance Sheets The table below presents the fair value of the Company’s derivative financial instruments and their classification on the Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021: Asset Derivatives Liability Derivatives Balance Sheet September 30, December 31, Balance Sheet September 30, December 31, Location 2022 2021 Location 2022 2021 (Dollars in thousands) Interest rate products: Derivatives not designated as hedging instruments Interest receivable and Other assets $ 11,430 $ 11,305 Interest payable and other liabilities $ 11,431 $ 11,322 Derivatives designated as hedging instruments Other assets - 3 Interest payable and other liabilities 6,891 565 Total $ 11,430 $ 11,308 $ 18,322 $ 11,887 For the Three Months Ended For the Nine Months Ended September 30, 2022 September 30, 2022 Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income Gain or (Loss) Recognized in OCI on Derivative Gain or (Loss) Recognized in OCI Included Component Gain or (Loss) Recognized in OCI Excluded Component Gain or (Loss) Recognized in OCI on Derivative Gain or (Loss) Recognized in OCI Included Component Gain or (Loss) Recognized in OCI Excluded Component (Dollars in thousands) Derivatives in Cash Flow Hedging Relationships: Interest Rate Products Interest Income $ (6,891) $ (6,891) $ - $ (6,891) $ (6,891) $ - Interest Rate Products Interest expense (185) (185) - 3,855 $ 3,855 - $ (7,076) $ (7,076) $ - $ (3,036) $ (3,036) $ - The table below presents the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income (Loss) for the three- and nine-months ended September 30, 2022. The Company had no cash flow hedges for the nine-months ended September 30, 2021.