v3.26.1
Derivatives
3 Months Ended
Mar. 31, 2026
Derivatives  
Derivatives

Note 5— Derivatives

The Company enters into interest rate swap agreements (“swaps”) with commercial loan customers to provide a facility for customers to manage their interest rate risk. These swaps are matched in exact offsetting terms with swaps that the Company enters into with an independent third party. These swaps qualify as derivatives, but are not designated as hedging instruments.

The following tables summarize the Company’s swaps at March 31, 2026 and December 31, 2025.

March 31, 2026

Estimated

Weighted Average

Notional

Fair

Years to

Receive

Pay

(Dollars in thousands)

Amount

Value

Maturity

Rate

Rate

Interest rate swap agreements:

Pay fixed/receive variable swaps

$

22,751

$

(152)

4.0 years

6.12

%

6.26

%

Pay variable/receive fixed swaps

22,751

152

4.0 years

6.26

%

6.12

%

Total interest rate swap agreements

$

45,502

$

4.0 years

6.19

%

6.19

%

December 31, 2025

Estimated

Weighted Average

Notional

Fair

Years to

Receive

Pay

(Dollars in thousands)

Amount

Value

Maturity

Rate

Rate

Interest rate swap agreements:

Pay fixed/receive variable swaps

$

22,823

$

(175)

4.3 years

6.00

%

6.26

%

Pay variable/receive fixed swaps

22,823

175

4.3 years

6.26

%

6.00

%

Total interest rate swap agreements

$

45,646

$

4.3 years

6.13

%

6.13

%

The estimated fair value of the swaps at March 31, 2026 and December 31, 2025 was recorded in other assets and liabilities in the Consolidated Balance Sheets. The associated net gains and losses on the swaps are recorded in other income in the Consolidated Statements of Income.