| Summary of Company's Outstanding Interest Rate Swaps |
The following table summarizes the terms of the Company’s outstanding interest rate swap agreements entered into to manage its exposure to the variability in future cash flows at June 30, 2026 (dollars in thousands):
|
|
|
|
|
|
|
|
|
Effective Date |
|
Expiration Date |
|
Notional Amount |
|
|
Pay Fixed Rate |
4/11/2022 |
|
4/11/2027 |
|
$ |
50,000 |
|
|
0.787% |
The following table summarizes the terms of the Company’s interest rate swap agreements that expired in 2026 (dollars in thousands):
|
|
|
|
|
|
|
|
|
Effective Date |
|
Expiration Date |
|
Notional Amount |
|
|
Pay Fixed Rate |
1/24/2023 |
|
1/24/2026 |
|
$ |
30,000 |
|
|
3.669% |
5/5/2023 |
|
5/5/2026 |
|
$ |
25,000 |
|
|
3.462% |
|
| Fair Values of Derivative Instruments on the Balance Sheet |
The table below presents the notional amounts, respective fair values of the Company’s derivative financial instruments, as well as their classification on the balance sheet as of June 30, 2026 and December 31, 2025 (in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset derivatives |
|
|
Liability derivatives |
|
|
|
Gross notional amount |
|
|
|
|
Fair value |
|
|
|
|
Fair value |
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
|
Balance Sheet Line Item |
|
June 30, 2026 |
|
|
December 31, 2025 |
|
|
Balance Sheet Line Item |
|
June 30, 2026 |
|
|
December 31, 2025 |
|
Derivatives designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedges |
|
$ |
50,000 |
|
|
$ |
105,000 |
|
|
Other assets |
|
$ |
1,653 |
|
|
$ |
2,188 |
|
|
Other liabilities |
|
$ |
— |
|
|
$ |
— |
|
Total derivatives |
|
$ |
50,000 |
|
|
$ |
105,000 |
|
|
|
|
$ |
1,653 |
|
|
$ |
2,188 |
|
|
|
|
$ |
— |
|
|
$ |
— |
|
Derivatives not designated as hedging instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps(1) |
|
$ |
1,171,318 |
|
|
$ |
1,257,516 |
|
|
Other assets |
|
$ |
27,402 |
|
|
$ |
26,817 |
|
|
Other liabilities |
|
$ |
27,404 |
|
|
$ |
26,819 |
|
Credit contracts |
|
|
88,870 |
|
|
|
87,859 |
|
|
Other assets |
|
|
— |
|
|
|
— |
|
|
Other liabilities |
|
|
— |
|
|
|
— |
|
Mortgage banking |
|
|
17,289 |
|
|
|
17,293 |
|
|
Other assets |
|
|
128 |
|
|
|
112 |
|
|
Other liabilities |
|
|
20 |
|
|
|
13 |
|
Total derivatives |
|
$ |
1,277,477 |
|
|
$ |
1,362,668 |
|
|
|
|
$ |
27,530 |
|
|
$ |
26,929 |
|
|
|
|
$ |
27,424 |
|
|
$ |
26,832 |
|
(1)The Company was holding collateral of $24.3 million and $21.3 million against its net obligations under these contracts at June 30, 2026 and December 31, 2025, respectively.
|
| Effect of Derivative Instruments on the Income Statement |
The table below presents the effect of the Company’s derivative financial instruments on the income statement for the three and six months ended June 30, 2026 and 2025 (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, |
|
|
Six months ended
June 30, |
|
|
|
Line item of gain (loss) recognized in Statement of Operations |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Undesignated derivatives: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
|
Income from derivative instruments, net |
|
$ |
550 |
|
|
$ |
304 |
|
|
$ |
748 |
|
|
$ |
425 |
|
Credit contracts |
|
Income from derivative instruments, net |
|
|
— |
|
|
|
22 |
|
|
|
— |
|
|
|
137 |
|
Mortgage banking |
|
Income from derivative instruments, net |
|
|
(32 |
) |
|
|
13 |
|
|
|
9 |
|
|
|
27 |
|
Total undesignated |
|
|
|
$ |
518 |
|
|
$ |
339 |
|
|
$ |
757 |
|
|
$ |
589 |
|
|