For further information on the Company's derivatives and hedging activities, see Note 9, "Derivatives and Hedging," to the Company's audited consolidated financial statements contained in the 2024 Annual Report on Form 10-K.


	March 31, 2025
(Dollars in thousands)	Asset Notional Amount		Asset Derivatives(1)(2)		Liability Notional Amount		Liability Derivatives(1)(2)
Derivatives designated as hedging instruments
Interest-rate contracts - pay fixed, receive floating	$	25,000	$	1	$	75,000	$	207
Total derivatives designated as hedging instruments	$	25,000	$	1	$	75,000	$	207

Derivatives not subject to hedge accounting
Interest-rate contracts - pay floating, receive fixed	$	—	$	—	$	3,168	$	260
Interest-rate contracts - pay fixed, receive floating	3,168		260		—		—
Risk participation agreements sold	—		—		46,236		30
Total derivatives not subject to hedge accounting	$	3,168	$	260	$	49,404	$	290


	December 31, 2024
(Dollars in thousands)	Asset Notional Amount		Asset Derivatives(1)(2)		Liability Notional Amount		Liability Derivatives(1)(2)




Derivatives designated as hedging instruments
Interest-rate contracts - pay fixed, receive floating	$	—	$	—	$	100,000	$	336
Total derivatives designated as hedging instruments	$	—	$	—	$	100,000	$	336

Derivatives not subject to hedge accounting
Interest-rate contracts - pay floating, receive fixed	$	—	$	—	$	3,212	$	321
Interest-rate contracts - pay fixed, receive floating	3,212		321		—		—
Risk participation agreements sold	—		—		46,387		25
Total derivatives not subject to hedge accounting	$	3,212	$	321	$	49,599	$	346

________________________________________________

(2) The assets and liabilities related to the pay fixed, receive floating interest-rate contracts are subject to a master netting agreement and are presented net in the Company's Consolidated Balance Sheet.

Derivatives designated as fair value hedges are utilized to mitigate the risk of adverse interest-rate fluctuations on specifically identified assets or liabilities. The Company's fair value hedges are used to manage its exposure to changes in the fair value of hedged items caused by changes in interest rates.

At March 31, 2025 and December 31, 2024, the Company had three interest rate swap agreements with a combined notional value of $100.0 million. Each interest rate swap agreement was designated as a fair value hedge and involves the net settlement

of receiving floating-rate payments from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.


		March 31, 2025				December 31, 2024
(Dollars in thousands)	Balance Sheet Location of Hedged Item	Carrying Amount of Hedged Assets		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets		Carrying Amount of Hedged Assets		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets
Interest-rate contracts - loans	Loans	$	100,168	$	168	$	100,305	$	305

The table below presents the gains (losses) from interest rate derivatives accounted for as fair value hedges and the related hedged items during the periods indicated:


		Three months ended
(Dollars in thousands)	Affected Income Statement Line Item	March 31, 2025		March 31, 2024
Derivatives designated as fair value hedges:
Fair value adjustments on derivatives	Net interest income	$	130	$	782
Fair value adjustments on hedged instrument	Net interest income	(137)		(797)
Total		$	(7)	$	(15)

Each back-to-back interest-rate swap consists of two interest-rate swaps (a customer swap and offsetting counterparty swap) and amounted to a total number of two interest-rate swaps outstanding at March 31, 2025 and December 31, 2024. As a result of this offsetting relationship, there were no net gains or losses recognized in income on back-to-back swaps during the three months ended March 31, 2025 or March 31, 2024.

Interest-rate swaps with counterparties are subject to master netting agreements, while interest-rate swaps with customers are not. At March 31, 2025 and December 31, 2024, all back-to-back swaps with the counterparty were in asset positions, therefore there was no netting reflected in the Company's Consolidated Balance Sheets as of the respective dates.

The Company enters into RPAs for which the Company has assumed credit risk for customers' performance under interest-rate swap agreements related to the customers' commercial loan and receives fee income commensurate with the risk assumed. The RPAs and the customers' loan are secured by the same collateral.

The Company's interest-rate swaps with counterparties contain credit-risk-related contingent provisions. These provisions provide the counterparty with the right to terminate its derivative positions and require the Company to settle its obligations under the agreements if the Company defaults on certain of its indebtedness.

By using derivative financial instruments, the Company exposes itself to counterparty credit risk. Credit risk is the risk of failure by the counterparty to perform under the terms of the derivative contract. The credit risk in derivative instruments is mitigated by entering into transactions with highly rated counterparties that management believes to be creditworthy. As of March 31, 2025, the Company had two active interest-rate swap institutional counterparties, both of which had investment grade credit ratings.

The Company’s interest rate swap agreements with counterparties have minimum collateral posting thresholds to manage credit risk outstanding from derivative market values.

As of March 31, 2025 and December 31, 2024, the Company had credit risk exposure from counterparties relating to interest-rate swaps of $260 thousand and $321 thousand, respectively, and cash posted by counterparties amounted to $120 thousand at both March 31, 2025 and December 31, 2024.

As of March 31, 2025 and December 31, 2024, counterparties had credit risk exposure from the Company relating to interest-rate swaps of $204 thousand and $332 thousand, respectively, and cash collateral posted by the Company amounted to $220 thousand and $480 thousand, respectively.

As of March 31, 2025, the fair value of derivatives related to these agreements was at a net asset position of $56 thousand, which excludes any adjustment for nonperformance risk.