Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Details of derivative positions for interest rate swaps which qualify as hedges for accounting purposes

The following tables reflect the Company's derivative positions for the periods indicated below for interest rate derivatives which qualify as cash flow hedges for accounting purposes:

September 30, 2018
Notional Amount		Trade Date	Effective Date	Maturity Date		Receive (Variable) Index	Current Rate Received		Pay Fixed Swap Rate		Fair Value
(Dollars in thousands)
$	25,000	12/9/2008	12/10/2008	12/10/2018		3 Month LIBOR	2.33	%	2.94	%	$	(29	)
25,000		4/1/2016	1/17/2017	12/15/2021		3 Month LIBOR	2.33	%	1.36	%	1,260
25,000		4/1/2016	1/17/2017	12/15/2021		3 Month LIBOR	2.33	%	1.36	%	1,251
25,000		7/18/2017	8/15/2017	8/15/2022		3 Month LIBOR	2.31	%	1.88	%	1,041
Notional Amount		Trade Date	Effective Date	Maturity Date		Pay (Variable) Index	Current Rate Paid		Receive Fixed Swap Rate		Fair Value
50,000		1/9/2018	1/16/2018	1/15/2023		1 Month LIBOR	2.16	%	2.24	%	$	(1,347	)
50,000		7/31/2018	8/15/2018	8/15/2023		1 Month LIBOR	2.16	%	2.82	%	(189		)
Notional Amount		Trade Date	Effective Date	Maturity Date		Pay (Variable) Index	Current Rate Paid		Receive Fixed Swap Rate Cap - Floor		Fair Value
50,000		1/9/2018	1/16/2018	1/15/2022		1 Month LIBOR	2.16	%	2.75% - 1.80%		$	(516	)
50,000		7/31/2018	8/15/2018	8/15/2022		1 Month LIBOR	2.16	%	3.08% - 2.50%		(128		)
50,000		9/24/2018	10/15/2018	4/15/2023	(1)	1 Month LIBOR	N/A		3.09% - 2.75%		32
											$	1,375
December 31, 2017
Notional Amount		Trade Date	Effective Date	Maturity Date		Receive (Variable) Index	Current Rate Received		Pay Fixed Swap Rate		Fair Value
(Dollars in thousands)
$	25,000	12/9/2008	12/10/2008	12/10/2018		3 Month LIBOR	1.54	%	2.94	%	$	(264	)
25,000		4/1/2016	1/17/2017	12/15/2021		3 Month LIBOR	1.59	%	1.36	%	772
25,000		4/1/2016	1/17/2017	12/15/2021		3 Month LIBOR	1.59	%	1.36	%	763
25,000		7/18/2017	8/15/2017	8/15/2022		3 Month LIBOR	1.42	%	1.88	%	345
											$	1,616

(1) In September 2018, the Company entered into a forward-starting interest rate collar with a notional amount of $50.0 million, with the intention of hedging against adverse fluctuations in interest rates by reducing its exposure to variability in cash flows relating to interest income on the Company's variable-rate loans.     

Summary of customer related derivative positions, not designated as hedging

The following tables reflect the Company’s customer related derivative positions for the periods indicated below for those derivatives not designated as hedging:

		Notional Amount Maturing
	Number of  Positions (1)	Less than 1 year		Less than 2 years		Less than 3 years		Less than 4 years		Thereafter		Total		Fair Value
	September 30, 2018
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	246	$	47,115	$	65,256	$	168,249	$	57,508	$	619,232	$	957,360	$	(22,233	)
Pay fixed, receive variable	231	$	47,115	$	65,256	$	168,249	$	57,508	$	619,232	$	957,360	$	22,219
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	24	$	43,013	$	2,796	$	—	$	—	$	—	$	45,809	$	(1,021	)
Buys U.S. currency, sells foreign currency	24	$	43,013	$	2,796	$	—	$	—	$	—	$	45,809	$	1,043
	December 31, 2017
	(Dollars in thousands)
Loan level swaps
Receive fixed, pay variable	246	$	36,023	$	61,500	$	152,287	$	111,147	$	591,385	$	952,342	$	3,875
Pay fixed, receive variable	231	$	36,023	$	61,500	$	152,287	$	111,147	$	591,385	$	952,342	$	(3,880	)
Foreign exchange contracts
Buys foreign currency, sells U.S. currency	15	$	26,382	$	3,780	$	—	$	—	$	—	$	30,162	$	1,202
Buys U.S. currency, sells foreign currency	15	$	26,382	$	3,780	$	—	$	—	$	—	$	30,162	$	(1,188	)

 

(1)

The Company may enter into one dealer swap agreement which offsets multiple commercial borrower swap agreements.

Fair value of derivative financial instruments as well as their classification on the balance sheet

The table below presents the fair value of the Company’s derivative financial instruments, as well as their classification on the balance sheet at the periods indicated:

	Asset Derivatives					Liability Derivatives
		Fair Value at		Fair Value at			Fair Value at		Fair Value at
	Balance Sheet Location	September 30 2018		December 31 2017		Balance Sheet Location	September 30 2018		December 31 2017
	(Dollars in thousands)
Derivatives designated as hedges
Interest rate derivatives	Other assets	$	3,584	$	1,880	Other liabilities	$	2,209	$	264
Derivatives not designated as hedges
Customer Related Positions
Loan level derivatives	Other assets	$	25,041	$	14,236	Other liabilities	$	25,055	$	14,241
Foreign exchange contracts	Other assets	1,143		1,202		Other liabilities	1,121		1,188
Mortgage Derivatives
Interest rate lock commitments	Other assets	233		149		Other liabilities	—		—
Forward sales agreements	Other assets	—		9		Other liabilities	61		—
		$	26,417	$	15,596		$	26,237	$	15,429
Total		$	30,001	$	17,476		$	28,446	$	15,693

Effect of derivative financial instruments included in OCI and current earnings

The table below presents the effect of the Company’s derivative financial instruments included in OCI and current earnings for the periods indicated:

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2018			2017			2018			2017
	(Dollars in thousands)
Derivatives designated as hedges
Gain (loss) in OCI on derivatives (effective portion), net of tax	$	(405	)	$	109		$	(302	)	$	8
Gain (loss) reclassified from OCI into interest income or interest expense (effective portion)	$	268		$	(91	)	$	525		$	(264	)
Loss recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)
Interest expense	$	—		$	—		$	—		$	—
Other expense	—			—			—			—
Total	$	—		$	—		$	—		$	—
Derivatives not designated as hedges
Changes in fair value of customer related positions
Other income	$	3		$	7		$	27		$	7
Other expense	(10		)	(7		)	(28		)	(17		)
Changes in fair value of mortgage derivatives
Mortgage banking income	(139		)	(33		)	14			71
Total	$	(146	)	$	(33	)	$	13		$	61