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DERIVATIVES AND HEDGING ACTIVITIES
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES AND HEDGING ACTIVITIES DERIVATIVES AND HEDGING ACTIVITIES
The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts. The Company’s objectives in using interest rate derivatives are to manage its exposure to interest rate movements and to add stability to net interest income. To accomplish this objective, the Company has entered into interest rate cash flow hedges and fair value hedges as part of its interest rate risk management strategy.
Cash Flow Hedges

Cash flow hedges consist of interest rate swaps and interest rate floors. Interest rate swaps involve the receipt of fixed amounts from a counterparty in exchange for the Company making variable-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate floors provide protection against declines in benchmark interest rates below a specified strike rate and are used to mitigate the impact of falling interest rates on cash flows generated by variable-rate assets. The Company uses these types of derivatives to hedge the variable cash flows associated with existing or forecasted variable-rate securities. As of June 30, 2026 and December 31, 2025, the Company had swaps and interest rate option contracts with floors with a notional value of $815.0 million and $465.0 million, respectively, hedging floating-rate available for sale securities.

Fair Value Hedges

Fair value hedges involve the payment of fixed amounts to a counterparty in exchange for the Company receiving variable-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company uses these types of derivatives to hedge the market value changes of fixed-rate securities. The Company had an interest rate swap with a notional value of $22.5 million which was terminated in the second quarter. As of June 30, 2026 and December 31, 2025, the Company had no fair value hedges.

Effect of Derivatives on the Consolidated Statements of Financial Condition

The Company presents all derivative positions gross on the Consolidated Statements of Financial Condition.

The tables below present the outstanding notional balances and the fair value of the Company’s derivative positions as of June 30, 2026 and December 31, 2025.

June 30, 2026December 31, 2025
(In thousands)Notional AmountFair Value (Other Assets)Notional AmountFair Value (Other Assets)
Derivatives designated as hedging instruments:
Cash flow hedges - interest rate products$590,000 $1,068 $465,000 $1,754 
June 30, 2026December 31, 2025
(In thousands)Notional Amount
Fair Value (Other Liabilities)
Notional AmountFair Value (Other Liabilities)
Derivatives designated as hedging instruments:
Cash flow hedges - interest rate products$225,000 $749 $— $— 
Effect of Derivatives on the Consolidated Statements of Operations

The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the three and six months ended June 30, 2026 and 2025. There were no fair value hedges during the three and six months ended June 30, 2025.

Three months endedSix months ended
June 30, 2026June 30, 2026
(In thousands)Interest IncomeInterest ExpenseInterest IncomeInterest Expense
Gain or (loss) on derivatives designated as hedging relationships:
Gain (loss) on cash flow hedging relationships:
Amount reclassified from accumulated OCI into income$(266)$— $(309)$— 
Gain (loss) on fair value hedging relationships:
Amount reclassified from accumulated OCI into income(21)— (21)— 
Amount reclassified from accumulated OCI into income for unrealized holding losses on available for sale securities(203)— — — 
Fair value hedges - available for sale securities203— — — 
Three months endedSix months ended
June 30, 2025June 30, 2025
(In thousands)Interest IncomeInterest ExpenseInterest IncomeInterest Expense
Gain or (loss) on derivatives designated as hedging relationships:
   Gain or (loss) on cash flow hedging relationships:
      Amount reclassified from accumulated OCI into income$106 $— $221 $— 

Effect of Derivatives on the Consolidated Statements of Comprehensive Income

For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (loss) and subsequently reclassified into interest income in the same periods during which the hedged transaction affects earnings.

The fair value of available for sale securities is initially recorded through accumulated other comprehensive income (loss). For derivatives designated and that qualify as fair value hedges, the change in fair value attributable to interest rates is reclassified out of accumulated other comprehensive income (loss) in the same periods during which the change in fair value of the underlying available for sale security is recorded.

Amounts reported in accumulated other comprehensive income (loss) related to cash flow hedges will be reclassified to interest income as interest payments are received or paid on the Company’s hedged securities. During the next twelve months, the Company estimates that an additional $1.9 million will be reclassified as a reduction to in interest income.

During the three and six months ended June 30, 2026, the Company terminated its fair value hedge with a notional value of $22.5 million as a result of the sale of the security that was hedged. The termination of the fair value hedge resulted in a gain of $0.2 million which is recognized in the net loss on sales of securities. The Company did not terminate any derivatives during the three and six months ended June 30, 2025.
The table below presents the effect of the Company's derivative financial instruments on accumulated other comprehensive income (loss) for the periods indicated:

Three months endedSix months ended
June 30,June 30,
(In thousands)2026202520262025
Gain (loss) recognized in other comprehensive income (loss) on cash flow hedges$(2,019)$(35)$(2,623)$177 
Gain (loss) reclassified from accumulated other comprehensive income into interest income from cash flow and fair value hedges(287)106 (330)221 
Unrealized gain on available for sale securities reclassified from accumulated other comprehensive income into interest income from fair value hedges203 — — —