DERIVATIVES (Tables)

3 Months Ended

Mar. 31, 2024

DERIVATIVES

Schedule of amounts recorded on the Consolidated Balance Sheets related to cumulative basis adjustment for fair value hedges

					Cumulative Amount of Fair Value
					Hedging Adjustment Included in the
Line Item in the Consolidated Balance Sheets	Carrying Amount of the Hedged				Carrying Amount of the Hedged
in Which the Hedged Item is Included	Assets				Assets
	March 31,		December 31,		March 31,		December 31,
	2024		2023		2024		2023
	(in thousands)
Loans held for investment (1)	$	99,464	$	100,855	$	(536)	$	855
Total	$	99,464	$	100,855	$	(536)	$	855

⁽¹⁾ These amounts were included in the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. At March 31, 2024, the amortized cost basis of the closed portfolios used in these hedging relationships was $1.20 billion; the cumulative basis adjustments associated with these hedging relationships was $(536,000) and the amount of the designated hedged items were $100.0 million.

Schedule of outstanding notional balances and fair values of outstanding derivative instruments

			Assets		Liabilities
	Notional		Fair		Fair
	Amount		Value		Value
	(in thousands)
March 31, 2024:
Derivatives designated as hedging instruments
Fair value hedge - interest rate swaps	$	100,000	$	565	$	—
Cashflow hedge - interest rate swaps		100,000		4,579		—
Total derivatives designated as hedging instruments			$	5,144	$	—
Derivatives not designated as hedging instruments
Derivative loan commitments	$	34,819	$	397	$	18
Forward loan sale commitments		37,000		52		32
Interest rate swaps		877,905		25,365		25,365
Interest rate futures		32,000		48		—
Risk participation agreements		202,967		—		—
Total derivatives not designated as hedging instruments			$	25,862	$	25,415
Total derivatives			$	31,006	$	25,415
December 31, 2023:
Derivatives designated as hedging instruments
Fair value hedge - interest rate swaps	$	100,000		—		855
Cashflow hedge - interest rate swaps		100,000		5,095		—
Total derivatives designated as hedging instruments			$	5,095	$	855
Derivatives not designated as hedging instruments
Derivative loan commitments	$	30,165	$	480	$	158
Forward loan sale commitments		30,000		4		293
Interest rate swaps		863,348		23,245		23,245
Risk participation agreements		189,275		—		—
Total derivatives not designated as hedging instruments			$	23,729	$	23,696
Total derivatives			$	28,824	$	24,551

Schedule of net gains and losses on derivative instruments

	Location of gain (loss)
	recognized in	Three Months Ended March 31,
	Income	2024		2023
		(in thousands)
Derivatives designated as fair value hedge
Hedged items - loans	Interest income	$	(1,429)	$	—
Interest rate swap contracts	Interest income		1,420		—
Total		$	(9)	$	—
Derivatives not designated as hedging instruments
Derivative loan commitments	Mortgage banking income	$	57	$	558
Forward loan sale commitments	Mortgage banking income		310		(477)
Interest rate futures	Mortgage banking income		(221)		—
Interest rate swaps	Other income		—		—
Total		$	146	$	81

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

	Three Months Ended March 31,
	2024		2023
	(in thousands)
Derivatives designated as hedging instruments
(Loss) gain in OCI on derivatives (effective portion), net of tax	$	(369)	$	(854)
Gain (loss) reclassified from OCI into interest income or interest expense (effective portion)	$	1,235	$	1,018

Schedule of offsetting of derivative and amounts subject to an enforceable master netting arrangement, not offset in the Consolidated Balance Sheets

							Gross Amounts Not Offset in the Consolidated Balance Sheets
					Net Amounts
	Gross Amounts		Gross Amounts		Assets (Liabilities)				Cash
	of Recognized		Offset in the		presented in the				Collateral
	Assets		Consolidated		Consolidated		Financial		(Received)		Net
	(Liabilities)		Balance Sheets		Balance Sheets		Instruments		Posted		Amount
	(in thousands)
Derivatives designated as hedging instruments
Interest rate swap on deposits	$	4,579	$	—	$	4,579	$	—	$	(4,579)	$	—
Interest rate swap on residential real estate loans	$	565	$	—	$	565	$	—	$	(580)	$	(15)
Derivatives not designated as hedging instruments
Customer interest rate swaps	$	24,241	$	—	$	24,241	$	—	$	(24,421)	$	(180)