Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments According to Type of Hedge Designation

Our derivative financial instruments according to the type of hedge in which they are designated follows:

	September 30, 2023
	Notional Amount		Average Maturity (years)	Fair Value
	(Dollars in thousands)
Fair value hedge designation
Pay-fixed interest rate swap agreement - commercial	$	6,127	5.6	$	560
Pay-fixed interest rate swap agreements - securities available for sale	148,895		4.1	20,456
Pay-fixed interest rate swap agreements - installment	100,000		3.7	1,439
Pay-fixed interest rate swap agreements - mortgage	75,000		4.9	785
Interest rate cap agreements - securities available for sale	40,970		4.6	1,062
Total	$	370,992	4.2	$	24,302
Cash flow hedge designation
Interest rate floor agreements - commercial	$	75,000	3.9	$	1,398
No hedge designation
Rate-lock mortgage loan commitments	$	28,704	0.1	$	(140)
Mandatory commitments to sell mortgage loans	41,034		0.1	484
Pay-fixed interest rate swap agreements - commercial	348,825		5.8	21,757
Pay-variable interest rate swap agreements - commercial	348,825		5.8	(21,757)
Total	$	767,388	5.3	$	344

	December 31, 2022
	Notional Amount		Average Maturity (years)	Fair Value
	(Dollars in thousands)
Fair value hedge designation
Pay-fixed interest rate swap agreement - commercial	$	6,401	6.4	$	447
Pay-fixed interest rate swap agreements - securities available for sale	148,895		4.8	19,906
Pay-fixed interest rate swap agreements - installment	25,000		2.0	77
Interest rate cap agreements - securities available for sale	40,970		5.3	931
Total	$	221,266	4.6	$	21,361
No hedge designation
Rate-lock mortgage loan commitments	19,918		0.1	(1,056)
Mandatory commitments to sell mortgage loans	49,258		0.1	315
Pay-fixed interest rate swap agreements - commercial	279,005		6.0	17,063
Pay-variable interest rate swap agreements - commercial	279,005		6.0	(17,063)
Total	$	627,186	5.3	$	(741)

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

Fair Values of Derivative Instruments

	Asset Derivatives						Liability Derivatives
	September 30, 2023			December 31, 2022			September 30, 2023			December 31, 2022
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
	(In thousands)
Derivatives designated as hedging instruments
Pay-fixed interest rate swap agreements	Other assets	$	23,240	Other assets	$	20,430	Other liabilities	$	—	Other liabilities	$	—
Interest rate cap agreements	Other assets	1,062		Other assets	931		Other liabilities	—		Other liabilities	—
Interest rate floor agreements	Other assets	1,398		Other assets	—		Other liabilities	—		Other liabilities	—
		25,700			21,361			—			—
Derivatives not designated as hedging instruments
Rate-lock mortgage loan commitments	Other assets	—		Other assets	—		Other liabilities	140		Other liabilities	1,056
Mandatory commitments to sell mortgage loans	Other assets	484		Other assets	315		Other liabilities	—		Other liabilities	—
Pay-fixed interest rate swap agreements - commercial	Other assets	22,400		Other assets	17,567		Other liabilities	643		Other liabilities	504
Pay-variable interest rate swap agreements - commercial	Other assets	643		Other assets	504		Other liabilities	22,400		Other liabilities	17,567
		23,527			18,386			23,183			19,127
Total derivatives		$	49,227		$	39,747		$	23,183		$	19,127

Derivative Instruments, Gain (Loss)

The effect of derivative financial instruments on the Condensed Consolidated Statements of Operations follows:

	Loss Recognized in Other Comprehensive Income (Loss) (Effective Portion)				Location of Loss Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion)	Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)					Gain (Loss) Recognized in Income
	Three Month Periods Ended September 30,					Three Month Periods Ended September 30,				Location of Gain (Loss) Recognized in Income	Three Month Periods Ended September 30,
	2023		2022			2023		2022			2023		2022
											(In thousands)
Fair Value Hedges
Pay-fixed interest rate swap agreement - commercial										Interest and fees on loans	$	96	$	292
Pay-fixed interest rate swap agreements - securities available for sale										Interest on securities available for sale - tax - exempt	926		5,881
Pay-fixed interest rate swap agreements - Installment										Interest and fees on loans	765		—
Pay-fixed interest rate swap agreements - Mortgage										Interest and fees on loans	785		—
Interest rate cap agreements - securities available for sale	$	(25)	$	—	Interest on securities available for sale - tax - exempt	$	(55)	$	—	Interest on securities available for sale - tax - exempt	39		—
Interest rate cap agreements - installment	—		—		Interest and fees on loans	—		—		Interest and fees on loans	—		—
Total	$	(25)	$	—		$	(55)	$	—		$	2,611	$	6,173
Cash Flow Hedges
Interest rate floor agreements - commercial	$	(502)	$	—	Interest and fees on loans	$	(17)	$	—	Interest and fees on loans	(17)		—
No hedge designation
Rate-lock mortgage loan commitments										Net gains on mortgage loans	$	(147)	$	(1,284)
Mandatory commitments to sell mortgage loans										Net gains on mortgage loans	238		2,250
Pay-fixed interest rate swap agreements - commercial										Interest income	5,579		$	9,015
Pay-variable interest rate swap agreements - commercial										Interest income	(5,579)		(9,015)
Interest rate swaption agreement										Net gains on mortgage loans	—		$	—
Pay-fixed interest rate swap agreements - mortgage										Net gains on mortgage loans	—		(650)
Pay-variable interest rate swap agreement										Non-interest expense - other	—		$	—
Interest rate cap agreements										Interest expense	—		—
Total											$	91	$	316

	Loss Recognized in Other Comprehensive Income (Loss) (Effective Portion)				Location of Loss Reclassified from Accumulated Other Comprehensive Income (Loss) into Income (Effective Portion)	Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)					Gain (Loss) Recognized in Income
	Nine Month Periods Ended September 30,					Nine Month Periods Ended September 30,				Location of Gain (Loss) Recognized in Income	Nine Month Periods Ended September 30,
	2023		2022			2023		2022			2023		2022
	(In thousands)
Fair Value Hedges
Pay-fixed interest rate swap agreement - commercial										Interest and fees on loans	$	113	$	868
Pay-fixed interest rate swap agreements - securities available for sale										Interest on securities available for sale - tax - exempt	550		16,929
Pay-fixed interest rate swap agreements - Installment										Interest and fees on loans	1,362		—
Pay-fixed interest rate swap agreements - Mortgage										Interest and fees on loans	785		—
Interest rate cap agreements - securities available for sale	$	(438)	$	—	Interest on securities available for sale - tax - exempt	$	(207)	$	—	Interest on securities available for sale - tax - exempt	286		—
Interest rate cap agreements - installment	—		—		Interest and fees on loans	—		—		Interest and fees on loans	(14)		—
Total	$	(438)	$	—		$	(207)	$	—		$	3,082	$	17,797
Cash Flow Hedges
Interest rate floor agreements - commercial	$	(502)	$	—	Interest and fees on loans	$	(17)	$	—	Interest and fees on loans	$	(17)	$	—
No hedge designation
Rate-lock mortgage loan commitments										Net gains on mortgage loans	$	916	$	(8,496)
Mandatory commitments to sell mortgage loans										Net gains on mortgage loans	169		2,874
Pay-fixed interest rate swap agreements - commercial										Interest income	4,694		23,739
Pay-variable interest rate swap agreements - commercial										Interest income	(4,694)		(23,739)
Interest rate swaption agreement										Net gains on mortgage loans	—		(186)
Pay-fixed interest rate swap agreements - mortgage										Net gains on mortgage loans	—		633
Pay-variable interest rate swap agreement										Non-interest expense - other	(12)		—
Interest rate cap agreements										Interest expense	—		245
Total											$	1,073	$	(4,930)