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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of financial instruments owned and pledged as collateral
To secure its obligations under derivative contracts, the Company pledged cash and held collateral as follows (dollars in thousands):
As of
September 30,
2022		December 31,
2021
Cash pledged to secure obligations under derivative contracts$36,048 $27,300 
Collateral held to secure obligations under derivative contracts31,550 — 
Summary of the interest-rate swaps designated as cash flow hedges
A summary of the interest-rate swaps designated as cash flow hedges is presented below (dollars in thousands):
As of
LocationSeptember 30,
2022		December 31,
2021
Debt Swap
Notional amount$50,000 $50,000 
Weighted average fixed pay rates1.79 %1.79 %
Weighted average variable 3-month LIBOR receive rates3.29 %0.20 %
Weighted average maturity, in years
1.96 yrs
2.71 yrs
Loan Swap
Notional amount$300,000 N/A
Weighted average fixed receive rates4.81 %N/A
Weighted average variable Prime pay rates5.80 %N/A
Weighted average maturity, in years
6.35 yrs
N/A
Gross aggregate fair value of the swaps
Gross aggregate fair value of swap assetsOther assets$2,486 $— 
Gross aggregate fair value of swap liabilitiesOther liabilities$34,515 $958 
Balances carried in AOCI
Unrealized gains (losses) on cash flow hedges, net of taxAOCI$(22,770)$(685)
Reclassification of unrealized gains and losses from OCI
The Company expects to reclassify unrealized gains and losses from OCI to interest income and interest expense as shown in the following table (dollars in thousands). Amounts actually recognized could differ from these expectations due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to September 30, 2022.
As of
September 30,
2022
Unrealized gains (losses) in OCI expected to be recognized in income
Unrealized gains expected to be reclassified from OCI to interest income$190 
Unrealized losses expected to be reclassified from OCI to interest expense(247)
Net unrealized gains (losses) in OCI expected to be recognized in net interest income$(57)
Schedule of interest income (expense) recorded on swap transactions
Interest expense recorded on these swap transactions was as follows for the periods presented (dollars in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Interest income (expense) on swap transactions$(370)$(288)$697 $(854)
Summary of Net gains (losses) relating to these derivative instruments
The following table reflects the net gains (losses) relating to cash flow derivative instruments that were recorded in AOCI and the unaudited Consolidated Statements of Income during the periods presented (dollars in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Unrealized gains (losses) on cash flow hedges
Gain (loss) recognized in OCI, net of tax$(10,192)$(5)$(21,587)$336 
(Gain) loss reclassified from OCI to interest expense, net of tax266 206 (498)611 
Net change in unrealized gains (losses) on cash flow hedges$(9,926)$201 $(22,085)$947 
Changes in fair value of these derivative assets and liabilities are recorded in noninterest expense in the unaudited Consolidated Statements of Income and summarized as follows (dollars in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
Location2022202120222021
Interest rate swaps
Pay floating, receive fixedNoninterest expense$18,317 $(2,024)$21,792 $(11,355)
Pay fixed, receive floatingNoninterest expense(18,317)2,024 (21,792)11,355 
Net change in fair value of interest rate swaps$— $— $— $— 
Net gains (losses) relating to these derivative instruments are summarized as follows for the periods presented (dollars in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
Location2022 20212022 2021
Net gains (losses)
Interest rate lock commitmentsMortgage revenue$(111)$537 $38 $1,502 
Forward sales commitmentsMortgage revenue295 (1,438)82 (3,616)
Net gains (losses)$184 $(901)$120 $(2,114)
Summary of fair values of derivative assets and liabilities recorded in consolidated balance sheet
Amounts and fair values of derivative assets and liabilities related to customer interest rate swaps recorded in the unaudited Consolidated Balance Sheets are summarized as follows (dollars in thousands):
As of September 30, 2022
Derivative AssetDerivative Liability
Notional
Amount		Fair
Value		Notional
Amount		Fair
Value
Derivatives not designated as hedging instruments
Interest rate swaps – pay floating, receive fixed$4,668 $46 $543,207 $42,001 
Interest rate swaps – pay fixed, receive floating543,207 42,001 4,668 46 
Total derivatives not designated as hedging instruments$547,875 $42,047 $547,875 $42,047 
As of December 31, 2021
Derivative AssetDerivative Liability
Notional
Amount		Fair
Value		Notional
Amount		Fair
Value
Derivatives not designated as hedging instruments
Interest rate swaps – pay floating, receive fixed$404,572 $17,839 $86,784 $2,259 
Interest rate swaps – pay fixed, receive floating86,784 2,259 404,572 17,839 
Total derivatives not designated as hedging instruments$491,356 $20,098 $491,356 $20,098 
Amounts and fair values of mortgage banking derivatives included in the unaudited Consolidated Balance Sheets are summarized as follows (dollars in thousands):
As of September 30, 2022As of December 31, 2021
LocationNotional
Amount		Fair
Value		Notional
Amount		Fair
Value
Derivatives with positive fair value
Interest rate lock commitmentsOther assets$3,434 $42 $19,384 $206 
Forward sales commitmentsOther assets4,107 134 1,884 10 
Mortgage banking derivatives recorded in other assets$7,541 $176 $21,268 $216 
Derivatives with negative fair value
Interest rate lock commitmentsOther liabilities$408 $4 $499 $6 
Forward sales commitmentsOther liabilities4,342 52 41,002 439 
Mortgage banking derivatives recorded in other liabilities$4,750 $56 $41,501 $445 
Schedule of notional amount and fair value of risk participation agreement The risk participation agreements mature in 2026 and 2028, and are summarized as follows (dollars in thousands):
As of
September 30,
2022		December 31,
2021
Risk participation agreements
Notional amount$18,921 $3,990 
Fair value4 11