Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments

Schedule of total notional amounts and gross fair values of the Company's derivatives

		December 31, 2023				December 31, 2022
		Fair		Notional		Fair		Notional
(dollars in thousands)		Value		Amount		Value		Amount
Designated as hedging instruments:	Consolidated Balance Sheet Location
Fair value hedges:
Interest rate swaps	Accrued expenses and other liabilities	$	352	$	600,000	$	—	$	—
Cash flow hedges:
Interest rate swaps	Accrued expenses and other liabilities		297		200,000		—		—
Total derivatives designated as hedging instruments		$	649	$	800,000	$	—	$	—
Not designated as hedging instruments:
Asset Derivatives
Interest rate swaps (1)	Other assets	$	8,327	$	120,671	$	6,277	$	43,430
Interest rate lock commitments	Other assets		179		8,126		121		10,462
Forward loan sales commitments	Other assets		6		190		7		351
Total asset derivatives not designated as hedging instruments		$	8,512	$	128,987	$	6,405	$	54,243
Liability Derivatives
Interest rate swaps (1)	Accrued expenses and other liabilities	$	8,348	$	120,671	$	6,277	$	43,430
To-be-announced mortgage backed securities	Accrued expenses and other liabilities		183		20,500		26		25,750
Total liability derivatives not designated as hedging instruments		$	8,531	$	141,171	$	6,303	$	69,180

(1) Reported fair values include accrued interest receivable and payable.

Schedule of effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) before tax, reclassified from other comprehensive income (loss) into earnings

			Gains (Losses)
	Gains (Losses)		Reclassified
	Recognized in		from OCI
(dollars in thousands)	OCI		into Earnings
Derivatives designated as hedging instruments
For the year ended December 31, 2023
Cash flow hedges:
Interest rate swaps	$	176	$	473

The following table shows the effect of fair value and cash flow hedge accounting on derivatives designated as hedging instruments in the Consolidated Statements of Income:

	Location and Amount of Gains (Losses) Recognized in Income
	Interest Income				Interest Expense
	Loans,		Investment
	including		securities -		Short-term
(dollars in thousands)	fees		Taxable		borrowings
For the year ended December 31, 2023
Total amounts in the Consolidated Statements of Income	$	136,918	$	24,262	$	20,976
Fair value hedges:
Interest rate swaps		252		1,881		—
Cash flow hedges:
Interest rate swaps		—		—		(473)

Schedule of notional amount, carrying amount and associated cumulative basis adjustments related to the application of hedge accounting

	December 31, 2023
					Cumulative Fair
					Value Hedging
					Adjustment in the
			Carrying Amount		Carrying Amount of
	Notional		of Hedged Assets/		Hedged Assets/
(dollars in thousands)	Amount		Liabilities		Liabilities
Mortgage-backed securities
Residential agency (1)	$	200,000	$	200,241	$	241
Mortgage loan pools (2)		400,000		400,098		98
Total	$	600,000	$	600,339	$	339

(1) Includes amounts related to residential agency mortgage-backed securities currently designated as the hedged item in a fair value hedge using the portfolio layer method. At December 31, 2023, the amortized cost of the closed portfolios used in these hedging relationships was $323.4 million.

(2) These amounts include the amortized cost basis of residential real estate loans that were used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolio anticipated to be outstanding for the designated hedged period. At December 31, 2023, the amortized cost basis of the residential real estate loans used in these hedging relationships was $687.5 million.

Schedule of gain (loss) recognized on derivatives instruments

(dollars in thousands)		Year ended December 31,
Derivatives not designated as hedging instruments	Consolidated Statements of Income Location	2023		2022		2021
Interest rate swaps	Other noninterest income	$	(20)	$	2	$	1
Interest rate lock commitments	Mortgage banking		165		(1,464)		(8,660)
Forward loan sales commitments	Mortgage banking		(1)		(483)		(2,174)
To-be-announced mortgage backed securities	Mortgage banking		118		4,916		5,220
Total gain (loss) from derivatives not designated as hedging instruments		$	262	$	2,971	$	(5,613)

Schedule of derivative positions and the potential effect of netting arrangements on its financial position

							Gross Amount
							Not Offset in the
							Consolidated
							Balance Sheets
	Gross Amount		Gross Amount		Net Amount
	Recognized in the		Offset in the		Presented in the
	Consolidated		Consolidated		Consolidated		Cash Collateral
(dollars in thousands)	Balance Sheets		Balance Sheets		Balance Sheets		Pledged (Received)		Net Amount
December 31, 2023
Derivative assets:
Interest rate swaps - Company (1)	$	—	$	—	$	—	$	—	$	—
Interest rate swaps - dealer bank (1)		8,327		—		8,327		(1,740)		6,587
To-be-announced mortgage backed securities		—		—		—		—		—
Total	$	8,327	$	—	$	8,327	$	(1,740)	$	6,587
Derivative liabilities:
Interest rate swaps - Company (1)	$	649	$	—	$	649	$	550	$	99
Interest rate swaps - customer (2)		8,348		—		8,348		—		8,348
To-be-announced mortgage backed securities		183		—		183		—		183
Total	$	9,180	$	—	$	9,180	$	550	$	8,630
December 31, 2022
Derivative assets:
Interest rate swaps - Company (1)	$	—	$	—	$	—	$	—	$	—
Interest rate swaps - dealer bank (1)		6,277		—		6,277		(6,030)		247
To-be-announced mortgage backed securities		—		—		—		—		—
Total	$	6,277	$	—	$	6,277	$	(6,030)	$	247
Derivative liabilities:
Interest rate swaps - customer (2)	$	6,277	$	—	$	6,277	$	309	$	5,968
To-be-announced mortgage backed securities		26		—		26		—		26
Total	$	6,303	$	—	$	6,303	$	309	$	5,994

(1) The Company maintains a master netting agreement with each counterparty and settles collateral on a net basis for all interest rate swaps with counterparty banks.

(2) The Company manages its net exposure on its customer loan swaps by obtaining collateral as part of the normal loan policy and underwriting practices. The Company does not post collateral to its customers as part of its contract.