DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative instruments in statement of financial position, fair value

The following tables present the notional and estimated fair value amount of derivative positions outstanding (in thousands):



	December 31, 2018								December 31, 2017
	Estimated Fair Value								Estimated Fair Value
	Notional Amount ⁽¹⁾		Asset Derivative			Liability Derivative			Notional Amount ⁽¹⁾		Asset Derivative			Liability Derivative
Derivatives designated as hedging instruments
Interest rate contracts:
Swaps-Cash Flow Hedge-Financial institution counterparties	$	270,000	$	9,388		$	457		$	240,000	$	7,922		$	22
Swaps-Fair Value Hedge-Financial institution counterparties	21,100		—			657			—		—			—
Derivatives designated as non-hedging instruments
Interest rate contracts:
Swaps-Financial institution counterparties	93,967		1,119			1,087			67,220		92			612
Swaps-Customer counterparties	93,967		1,087			1,119			67,220		612			92
Gross derivatives			11,594			3,320					8,626			726
Offsetting derivative assets/liabilities			(2,201		)	(2,201		)			(114		)	(114		)
Cash collateral received/posted			(8,306		)	—					(7,900		)	(520		)
Net derivatives included in the consolidated balance sheets ⁽²⁾			$	1,087		$	1,119				$	612		$	92


(1)	Notional amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the consolidated balance sheets.

(2)

Net derivative assets are included in other assets and net derivative liabilities are included in other liabilities on the consolidated balance sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and our credit risk. We had no credit exposure related to interest rate swaps with financial institutions and $1.1 million related to interest rate swaps with customers at December 31, 2018. We had net credit exposure of $30,000 related to interest rate swaps with financial institutions and $612,000 related to interest rate swaps with customers at December 31, 2017. The credit risk associated with customer transactions is partially mitigated as these are generally secured by the non-cash collateral securing the underlying transaction being hedged.

Weighted average maturity and interest rates on risk management interest rate swaps

The summarized expected weighted average remaining maturity of the notional amount of interest rate swaps and the weighted average interest rates associated with the amounts expected to be received or paid on interest rate swap agreements are presented below (dollars in thousands). Variable rates received on pay fixed swaps are based on one-month or three-month LIBOR rates in effect at December 31, 2018 and December 31, 2017:



	December 31, 2018							December 31, 2017
			Weighted Average							Weighted Average
	Notional Amount		Remaining Maturity (in years)	Receive Rate		Pay Rate		Notional Amount		Remaining Maturity (in years)	Receive Rate		Pay Rate
Swaps-Cash Flow Hedge
Financial institution counterparties	$	270,000	4.8	2.45	%	1.58	%	$	240,000	5.3	1.44	%	1.43	%
Swaps-Fair Value Hedge
Financial institution counterparties	21,100		7.5	2.56		3.00		—		—	—		—
Swaps-Non-Hedging
Financial institution counterparties	93,967		11.6	2.36		2.58		67,220		12.7	1.39		2.37
Customer counterparties	93,967		11.6	2.58		2.36		67,220		12.7	2.37		1.39