v3.26.1
Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
The Company uses derivative financial instruments to help manage exposure to interest rate risk and the effects that changes in interest rates may have on net income and the fair value of assets and liabilities. The Company has certain interest rate derivative positions that are not designated as hedging instruments. Derivative assets and liabilities are recorded at fair value on the Condensed Consolidated Balance Sheet and do not take into account the effects of master netting agreements. Master netting agreements allow the Company to settle all derivative contracts held with a single counterparty on a net basis, and to offset net derivative positions with related collateral, where applicable. These derivative positions relate to transactions in which the Company enters into an interest rate swap with a client while at the same time entering into an offsetting interest rate swap with another financial institution. In connection with each transaction, the Company agrees to pay interest to the client on a notional amount at a variable interest rate and receive interest from the client on the same notional amount at a fixed interest rate. At the same time, the Company agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows the client to effectively convert a variable rate loan to a fixed rate. Because the terms of the swaps with the customers and the other financial institutions offset each other, with the only difference being counterparty credit risk, changes in the fair value of the underlying derivative contracts are not materially different and do not significantly impact the Company’s results of operations.
The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (i.e., interest rate lock commitment). The interest rate lock commitments are considered derivatives and are recorded on the accompanying condensed consolidated balance sheets at fair value in accordance with FASB ASC 815, Derivatives and Hedging.
The following table shows the amounts of non-hedging derivative financial instruments:
March 31, 2026
Asset derivativesLiability derivatives
(Dollars in thousands)Notional or contractual amountStatement of Financial Condition classificationFair valueStatement of Financial Condition classificationFair value
Interest rate swap contracts$99,145 Other assets$3,445 Other liabilities$3,445 
Interest rate lock commitments1,820 Other assets31 N/A- 
Total$100,965 $3,476 $3,445 
December 31, 2025
Asset derivativesLiability derivatives
(Dollars in thousands)Notional or contractual amountStatement of Financial Condition classificationFair valueStatement of Financial Condition classificationFair value
Interest rate swap contracts$96,275 Other assets$3,641 Other liabilities$3,641 
Interest rate lock commitments2,939 Other assets50 N/A- 
Total$99,214 $3,691 $3,641 
The following table shows the amounts included in the Statements of Income for non-hedging derivative financial instruments:
Three Months Ended March 31,
(Dollars in thousands)Statement of Income Classification20262025
Interest rate swap contractsFees and service charges$81 $(30)
Interest rate lock commitmentsGain on sale of loans held-for-sale, net(19)(35)
Total$62 $(65)
The following table shows the offsetting of financial assets and derivative assets:
Gross Amounts not Offset in the
Statement of Financial Condition
(Dollars in thousands)Gross Amounts of Recognized AssetsGross Amounts Offset in the Statement of Financial
Condition		Net Amounts of Assets Presented in the Statement of Financial
Condition		Financial InstrumentsCash Collateral ReceivedNet Amount
March 31, 2026
Interest rate swap contracts$3,445 $- $3,445 $- $2,510 $935 
Interest rate lock commitments31 - 31 - - 31 
Total$3,476 $- $3,476 $- $2,510 $966 
Gross Amounts not Offset in the
Statement of Financial Condition
(Dollars in thousands)Gross Amounts of Recognized AssetsGross Amounts Offset in the Statement of Financial
Condition		Net Amounts of Assets Presented in the Statement of Financial
Condition		Financial InstrumentsCash Collateral ReceivedNet Amount
December 31, 2025
Interest rate swap contracts$3,641 $- $3,641 $- $1,900 $1,741 
Interest rate lock commitments50 - 50 - - 50 
Total$3,691 $- $3,691 $- $1,900 $1,791 
The following table shows the offsetting of financial liabilities and derivative liabilities:
Gross Amounts not Offset in the
Statement of Financial Condition
(Dollars in thousands)Gross Amounts of Recognized LiabilitiesGross Amounts Offset in the Statement of Financial
Condition		Net Amounts of Assets Presented in the Statement of Financial
Condition		Financial InstrumentsCash Collateral PledgedNet Amount
March 31, 2026
Interest rate swap contracts$3,445 $- $3,445 $- $- $3,445 
Gross Amounts not Offset in the
Statement of Financial Condition
(Dollars in thousands)Gross Amounts of Recognized LiabilitiesGross Amounts Offset in the Statement of Financial
Condition		Net Amounts of Assets Presented in the Statement of Financial
Condition		Financial InstrumentsCash Collateral PledgedNet Amount
December 31, 2025
Interest rate swap contracts$3,641 $- $3,641 $- $- $3,641