Quarterly report pursuant to Section 13 or 15(d)

Derivatives and Hedging Activities (Tables)

v3.24.3
Derivatives and Hedging Activities (Tables)
9 Months Ended
Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Fair Value of Derivative Financial Instruments as well as their Classification on 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 as of September 30, 2024 and December 31, 2023.

 

As of September 30, 2024

 

Derivative Assets

 

 

Derivative Liabilities

 

 

 

Notional Amount

 

 

Balance Sheet Location

 

Fair Value

 

 

Notional Amount

 

 

Balance Sheet Location

 

Fair Value

 

 

 

(in thousands)

 

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate products

 

$

102,569

 

 

Other Assets

 

$

4,559

 

 

$

102,569

 

 

Other Liabilities

 

$

4,559

 

Total derivatives not designated as hedging instruments

 

 

 

 

 

 

$

4,559

 

 

 

 

 

 

 

$

4,559

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate products

 

$

175,000

 

 

Other Assets

 

$

725

 

 

$

 

 

Other Liabilities

 

$

 

Total derivatives designated as hedging instruments

 

 

 

 

 

 

$

725

 

 

 

 

 

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023

 

Derivative Assets

 

 

Derivative Liabilities

 

 

 

Notional Amount

 

 

Balance Sheet Location

 

Fair Value

 

 

Notional Amount

 

 

Balance Sheet Location

 

Fair Value

 

 

 

(in thousands)

 

Derivatives not designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate products

 

$

104,571

 

 

Other Assets

 

$

5,939

 

 

$

104,571

 

 

Other Liabilities

 

$

5,920

 

Total derivatives not designated as hedging instruments

 

 

 

 

 

 

$

5,939

 

 

 

 

 

 

 

$

5,920

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives designated as hedging instruments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate products

 

$

100,000

 

 

Other Assets

 

$

306

 

 

$

 

 

Other Liabilities

 

$

 

Total derivatives designated as hedging instruments

 

 

 

 

 

 

$

306

 

 

 

 

 

 

 

$

 

 

Summary of Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income

The table below presents the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income for the three and nine months ended September 30, 2024 and 2023.

 

Three Months Ended September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives in Subtopic 815-20 Hedging Relationships

 

Amount of Gain or (Loss) Recognized in OCI on Derivative

 

 

Amount of Gain or (Loss)
Recognized in OCI Included
Component

 

 

Amount of Gain or (Loss)
Recognized in OCI Excluded
Component

 

 

Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income

 

Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income

 

 

Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component

 

 

Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component

 

 

 

(in thousands)

 

Derivatives in Cash Flow Hedging Relationships

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Products

 

$

2,427

 

 

$

2,427

 

 

$

 

 

Interest Income

 

$

(673

)

 

$

(673

)

 

$

 

Total

 

$

2,427

 

 

$

2,427

 

 

$

 

 

 

 

$

(673

)

 

$

(673

)

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives in Subtopic 815-20 Hedging Relationships

 

Amount of Gain or (Loss) Recognized in OCI on Derivative

 

 

Amount of Gain or (Loss)
Recognized in OCI Included
Component

 

 

Amount of Gain or (Loss)
Recognized in OCI Excluded
Component

 

 

Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income

 

Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income

 

 

Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component

 

 

Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component

 

 

 

(in thousands)

 

Derivatives in Cash Flow Hedging Relationships

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Products

 

$

 

 

$

 

 

$

 

 

Interest Income

 

$

 

 

$

 

 

$

 

Total

 

$

 

 

$

 

 

$

 

 

 

 

$

 

 

$

 

 

$

 

 

Nine Months Ended September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives in Subtopic 815-20 Hedging Relationships

 

Amount of Gain or (Loss) Recognized in OCI on Derivative

 

 

Amount of Gain or (Loss)
Recognized in OCI Included
Component

 

 

Amount of Gain or (Loss)
Recognized in OCI Excluded
Component

 

 

Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income

 

Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income

 

 

Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component

 

 

Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component

 

 

 

(in thousands)

 

Derivatives in Cash Flow Hedging Relationships

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Products

 

$

(526

)

 

$

(526

)

 

$

 

 

Interest Income

 

$

(1,133

)

 

$

(1,133

)

 

$

 

Total

 

$

(526

)

 

$

(526

)

 

$

 

 

 

 

$

(1,133

)

 

$

(1,133

)

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives in Subtopic 815-20 Hedging Relationships

 

Amount of Gain or (Loss) Recognized in OCI on Derivative

 

 

Amount of Gain or (Loss)
Recognized in OCI Included
Component

 

 

Amount of Gain or (Loss)
Recognized in OCI Excluded
Component

 

 

Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income

 

Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income

 

 

Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Included Component

 

 

Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income Excluded Component

 

 

 

(in thousands)

 

Derivatives in Cash Flow Hedging Relationships

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Products

 

$

 

 

$

 

 

$

 

 

Interest Income

 

$

 

 

$

 

 

$

 

Total

 

$

 

 

$

 

 

$

 

 

 

 

$

 

 

$

 

 

$

 

 

Summary of Effect of Cash Flow Hedge Accounting on Income Statement

The table below presents the effect of cash flow hedge accounting on the Income Statement for the three and nine months ended September 30, 2024 and 2023.

 

 

 

Location and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationship

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

Interest Income

 

 

Interest Expense

 

 

Interest Income

 

 

Interest Expense

 

 

Interest Income

 

 

Interest Expense

 

 

Interest Income

 

 

Interest Expense

 

 

 

(in thousands)

 

Gain or (loss) on cash flow hedging relationships in Subtopic 815-20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest contracts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income

 

$

(673

)

 

$

 

 

$

 

 

$

 

 

$

(1,133

)

 

$

 

 

$

 

 

$

 

Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income - included component

 

 

(673

)

 

 

 

 

 

 

 

 

 

 

 

(1,133

)

 

 

 

 

 

 

 

 

 

Effect of Derivative Financial Instruments that are Not Designated as Hedging Instruments on Income Statement

The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Income Statement for the three and nine months ended September 30, 2024 and 2023.

 

Derivatives Not Designated as Hedging
Instruments under Subtopic 815-20

 

Location of Gain or (Loss) Recognized in Income on Derivative

 

Amount of Gain or (Loss)
Recognized in Income on Derivative

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

(in thousands)

 

Interest rate products

 

Other income

 

$

(44

)

 

$

62

 

 

$

(18

)

 

$

(23

)

Total

 

 

 

$

(44

)

 

$

62

 

 

$

(18

)

 

$

(23

)

Summary of Gross Presentation, Effects of Offsetting and a Net Presentation of Derivatives

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of September 30, 2024 and December 31, 2023. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The derivative assets are located within the prepaid and other assets line item on the Consolidated Balance Sheets and the derivative liabilities are located within the accrued expenses and other liabilities line item on the Consolidated Balance Sheets.

 

Offsetting of Derivative Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Amounts Not Offset in the Consolidated Balance Sheets

 

 

 

Gross Amounts of Recognized Assets

 

 

Gross Amounts Offset in the Consolidated Balance Sheets

 

 

Net Amounts of Assets presented in the Consolidated Balance Sheets

 

 

Financial Instruments

 

 

Cash Collateral Received

 

 

Net Amount

 

 

 

(in thousands)

 

Derivatives

 

$

5,284

 

 

$

 

 

$

5,284

 

 

$

631

 

 

$

4,653

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Offsetting of Derivative Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Amounts Not Offset in the Consolidated Balance Sheets

 

 

 

Gross Amounts of Recognized Liabilities

 

 

Gross Amounts Offset in the Consolidated Balance Sheets

 

 

Net Amounts of Liabilities presented in the Consolidated Balance Sheets

 

 

Financial Instruments

 

 

Cash Collateral Provided

 

 

Net Amount

 

 

 

(in thousands)

 

Derivatives

 

$

4,559

 

 

$

 

 

$

4,559

 

 

$

631

 

 

$

 

 

$

3,927

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Offsetting of Derivative Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Amounts Not Offset in the Consolidated Balance Sheets

 

 

 

Gross Amounts of Recognized Assets

 

 

Gross Amounts Offset in the Consolidated Balance Sheets

 

 

Net Amounts of Assets presented in the Consolidated Balance Sheets

 

 

Financial Instruments

 

 

Cash Collateral Received

 

 

Net Amount

 

 

 

(in thousands)

 

Derivatives

 

$

6,245

 

 

$

 

 

$

6,245

 

 

$

284

 

 

$

5,731

 

 

$

230

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Offsetting of Derivative Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Amounts Not Offset in the Consolidated Balance Sheets

 

 

 

Gross Amounts of Recognized Liabilities

 

 

Gross Amounts Offset in the Consolidated Balance Sheets

 

 

Net Amounts of Liabilities presented in the Consolidated Balance Sheets

 

 

Financial Instruments

 

 

Cash Collateral Provided

 

 

Net Amount

 

 

 

(in thousands)

 

Derivatives

 

$

5,920

 

 

$

 

 

$

5,920

 

 

$

284

 

 

$

 

 

$

5,636