DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of financial instruments owned and pledged as collateral

The Company pledged loans as collateral to the FHLB and Federal Reserve Bank for liquidity as set forth in the table below (dollars in thousands):

	As of December 31,
	2022		2021
Pledged loans
FHLB	$	5,095,448	$	4,656,331
Federal Reserve Bank	804,718		808,254
Total pledged loans	$	5,900,166	$	5,464,585

To secure its obligations under derivative contracts, the Company pledged cash and held collateral as follows (dollars in thousands):

	As of December 31,
	2022		2021
Cash pledged to secure obligations under derivative contracts	$	38,609	$	27,300
Collateral held to secure obligations under derivative contracts	29,830		—

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 December 31,
	Location	2022			2021
Debt Swap
Notional amount		$	50,000		$	50,000
Weighted average fixed pay rates		1.79		%	1.79		%
Weighted average variable 3-month LIBOR receive rates		4.77		%	0.20		%
Weighted average maturity, in years		1.71 yrs			2.71 yrs
Loan Swap
Notional amount		$	300,000		N/A
Weighted average fixed receive rates		4.81		%	N/A
Weighted average variable Prime pay rates		7.32		%	N/A
Weighted average maturity, in years		6.10 yrs			N/A
Gross aggregate fair value of the swaps
Gross aggregate fair value of swap assets	Other assets	$	2,535		$	—
Gross aggregate fair value of swap liabilities	Other liabilities	$	32,367		$	958
Balances carried in AOCI
Unrealized gains (losses) on cash flow hedges, net of tax	AOCI	$	(20,985)		$	(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, during the next 12 months (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 December 31, 2022.

	As of December 31, 2022
Unrealized gains (losses) in OCI expected to be recognized in income
Unrealized gains expected to be reclassified from OCI to interest income	$	372
Unrealized losses expected to be reclassified from OCI to interest expense	(648)
Net unrealized gains (losses) in OCI expected to be recognized in net interest income	$	(276)

Schedule of interest income (expense) recorded on swap transactions

Interest income (expense) recorded on swap transactions was as follows for the periods presented (dollars in thousands):

	Years Ended December 31,
	2022		2021		2020
Interest income (expense) on swap transactions	$	(583)	$	(1,067)	$	(758)

Summary of net gains (losses) relating to these derivative instruments

The following table reflects the net gains (losses) recorded in AOCI and the Consolidated Statements of Comprehensive Income relating to cash flow derivative instruments for the periods presented (dollars in thousands):

	Years Ended December 31,
	2022		2021		2020
Unrealized gains (losses) on cash flow hedges
Net gain (loss) recognized in OCI, net of tax	$	(20,717)	$	736	$	(2,526)
(Gain) loss reclassified from OCI to interest income	395		—		—
(Gain) loss reclassified from OCI to interest expense	22		763		542
Net change in unrealized gains (losses) on cash flow hedges, net of tax	$	(20,300)	$	1,499	$	(1,984)

Changes in fair value of these derivative assets and liabilities are recorded in noninterest expense in the Consolidated Statements of Income and summarized as follows (dollars in thousands):

		Years Ended December 31,
	Location	2022		2021		2020
Interest rate swaps
Pay floating, receive fixed	Noninterest expense	$	19,308	$	(12,587)	$	20,331
Pay fixed, receive floating	Noninterest expense	(19,308)		12,587		(20,331)
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):

		Years Ended December 31,
	Location	2022		2021		2020
Net gains (losses)
Interest rate lock commitments	Mortgage revenue	$	15	$	1,702	$	9,667
Forward sales commitments	Mortgage revenue	(38)		(4,045)		(18,329)
Net gains (losses)		$	(23)	$	(2,343)	$	(8,662)

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, included in other assets and other liabilities in the Consolidated Balance Sheets, are summarized as follows (dollars in thousands):

	As of December 31, 2022
	Derivative Asset				Derivative Liability
	Notional Amount		Fair Value		Notional Amount		Fair Value
Derivatives not designated as hedging instruments
Interest rate swaps – pay floating, receive fixed	$	48,728	$	370	$	528,183	$	39,685
Interest rate swaps – pay fixed, receive floating	528,183		39,685		48,728		370
Total derivatives not designated as hedging instruments	$	576,911	$	40,055	$	576,911	$	40,055

	As of December 31, 2021
	Derivative Asset				Derivative 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 floating	86,784		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 Consolidated Balance Sheets are summarized as follows (dollars in thousands):

		As of December 31, 2022				As of December 31, 2021
	Location	Notional Amount		Fair Value		Notional Amount		Fair Value
Derivatives with positive fair value
Interest rate lock commitments	Other assets	$	1,517	$	16	$	19,384	$	206
Forward sales commitments	Other assets	83		1		1,884		10
Mortgage banking derivatives recorded in other assets		$	1,600	$	17	$	21,268	$	216
Derivatives with negative fair value
Interest rate lock commitments	Other liabilities	$	83	$	1	$	499	$	6
Forward sales commitments	Other liabilities	2,757		39		41,002		439
Mortgage banking derivatives recorded in other liabilities		$	2,840	$	40	$	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 December 31,
	2022		2021
Risk participation agreements
Notional amount	$	18,899	$	3,990
Fair value	5		—