| ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
NOTE 11 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following tables present the tax effects allocated to each component of Other Comprehensive Income (Loss) (in thousands): | | | | | | | | | | | | | | | | | | | | | | Three months ended | | | | June 30, 2026 | | June 30, 2025 | | | | Before | | Tax | | After | | Before | | Tax | | After | | | | Tax | | Effect | | Tax | | Tax | | Effect | | Tax | | Unrealized gain (loss) arising on AFS securities | | | | | | | | | | | | | | | | | | | | Unrealized gain (loss) arising during the period | | $ | (2,663) | | $ | 798 | | $ | (1,865) | | $ | 4,386 | | $ | (1,314) | | $ | 3,072 | | | | | | | | | | | | | | | | | | | | | | Unrealized gain (loss) arising on cash flow hedges | | | | | | | | | | | | | | | | | | | | Unrealized gain (loss) arising during the period | | | 2,933 | | | (879) | | | 2,054 | | | (1,937) | | | 580 | | | (1,357) | | Total other comprehensive income (loss) | | $ | 270 | | $ | (81) | | $ | 189 | | $ | 2,449 | | $ | (734) | | $ | 1,715 | |
| | | | | | | | | | | | | | | | | | | | | Six months ended | | | June 30, 2026 | | June 30, 2025 | | | Before | | Tax | | After | | Before | | Tax | | After | | | Tax | | Effect | | Tax | | Tax | | Effect | | Tax | Unrealized gain (loss) arising on AFS securities | | | | | | | | | | | | | | | | | | | Unrealized gain (loss) arising during the period | | $ | (6,766) | | $ | 2,028 | | $ | (4,738) | | $ | 14,368 | | $ | (4,306) | | $ | 10,062 | | | | | | | | | | | | | | | | | | | | Unrealized gain (loss) arising on cash flow hedges | | | | | | | | | | | | | | | | | | | Unrealized gain (loss) arising during the period | | $ | 7,427 | | $ | (2,226) | | $ | 5,201 | | $ | (2,501) | | $ | 749 | | $ | (1,752) | Reclassification adjustment for gain included in net income | | | 331 | | | (99) | | | 232 | | | (911) | | | 280 | | | (631) | Net Change | | | 7,758 | | | (2,325) | | | 5,433 | | | (3,412) | | | 1,029 | | | (2,383) | Total other comprehensive income (loss) | | $ | 992 | | $ | (297) | | $ | 695 | | $ | 10,956 | | $ | (3,277) | | $ | 7,679 |
The following tables present the after-tax changes in the balances of each component of Accumulated Other Comprehensive Income (Loss) at the dates indicated (in thousands): | | | | | | | | | | | | | | | | Total | | | | | | | Accumulated | | | | | | | Other | | | AFS | | Cash Flow | | Comprehensive | | | Securities | | Hedge | | Income (Loss) | | | | | | | | | | | Balance at April 1, 2026 | | $ | (39,807) | | $ | 574 | | $ | (39,233) | Other comprehensive income (loss), net of tax | | | (1,865) | | | 2,054 | | | 189 | Balance at June 30, 2026 | | $ | (41,672) | | $ | 2,628 | | $ | (39,044) | | | | | | | | | | | Balance at April 1, 2025 | | $ | (46,341) | | $ | (829) | | $ | (47,170) | Other comprehensive income (loss), net of tax | | | 3,072 | | | (1,357) | | | 1,715 | Balance at June 30, 2025 | | $ | (43,269) | | $ | (2,186) | | $ | (45,455) | | | | | | | | | | |
| | | | | | | | | | | | | | | | Total | | | | | | | Accumulated | | | | | | | Other | | | AFS | | Cash Flow | | Comprehensive | | | Securities | | Hedge | | Income (Loss) | Balance at January 1, 2026 | | $ | (36,934) | | $ | (2,805) | | $ | (39,739) | Unrealized gain (loss) arising during the period, net of tax | | | (4,738) | | | 5,201 | | | 463 | Reclassification adjustment for (gain) loss included in net income, net of tax | | | — | | | 232 | | | 232 | Other comprehensive income (loss), net of tax | | | (4,738) | | | 5,433 | | | 695 | Balance at June 30, 2026 | | $ | (41,672) | | $ | 2,628 | | $ | (39,044) | | | | | | | | | | | Balance at January 1, 2025 | | $ | (53,331) | | $ | 197 | | $ | (53,134) | Unrealized gain (loss) arising during the period, net of tax | | | 10,062 | | | (1,752) | | | 8,310 | Reclassification adjustment for gain included in net income, net of tax | | | — | | | (631) | | | (631) | Other comprehensive income (loss), net of tax | | | 10,062 | | | (2,383) | | | 7,679 | Balance at June 30, 2025 | | $ | (43,269) | | $ | (2,186) | | $ | (45,455) |
The following table shows the amounts reclassified out of AOCI for the realized gain on cash flow hedges (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Affected line item in | | | Three months ended | | Six months ended | | | | the Consolidated Statements | | | June 30, | | June 30, | | | | of Operations | | | 2026 | | 2025 | | 2026 | | 2025 | | | | | Realized gain (loss) on derivative cash flow hedges | | $ | — | | $ | — | | $ | (331) | | $ | 911 | | | | Deposit related program fees and Interest expense | Income tax (expense) benefit | | | — | | | — | | | 99 | | | (280) | | | | Income tax expense | Total reclassifications, net of income tax | | $ | — | | $ | — | | $ | (232) | | $ | 631 | | | | |
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