| Other Comprehensive Income (Loss) |
11.Other Comprehensive Income (Loss) The Company reports certain items as “other comprehensive income or loss” and reflects total accumulated other comprehensive loss (“AOCI”) in the consolidated financial statements for all periods containing elements of other comprehensive income or loss. The following table presents a reconciliation of the changes in the components of other comprehensive income or loss for the dates indicated, including the amount of income tax expense or benefit allocated to each component of other comprehensive income or loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
|
Reclassification Adjustments |
|
2026 |
|
|
2025 |
|
|
Affected Line Item in
Consolidated Statements of Income (Loss) |
|
|
(Dollars in thousands) |
|
|
|
Net amortization of bond premiums |
|
$ |
62 |
|
|
$ |
134 |
|
|
Interest on debt securities |
Tax effect |
|
|
(17 |
) |
|
|
(36 |
) |
|
Income tax (benefit) expense |
|
|
|
45 |
|
|
|
98 |
|
|
Net income (loss) |
Net interest expense on interest rate swaps |
|
|
18 |
|
|
|
— |
|
|
Interest expense on deposits |
Tax effect |
|
|
(5 |
) |
|
|
— |
|
|
Income tax (benefit) expense |
|
|
|
13 |
|
|
|
— |
|
|
Net income (loss) |
Total reclassification adjustments |
|
$ |
58 |
|
|
$ |
98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
|
Reclassification Adjustments |
|
2026 |
|
|
2025 |
|
|
Affected Line Item in
Consolidated Statements of Income (Loss) |
|
|
(Dollars in thousands) |
|
|
|
Net amortization of bond premiums |
|
$ |
176 |
|
|
$ |
290 |
|
|
Interest on debt securities |
Tax effect |
|
|
(47 |
) |
|
|
(78 |
) |
|
Income tax (benefit) expense |
|
|
|
129 |
|
|
|
212 |
|
|
Net income (loss) |
Net interest expense on interest rate swaps |
|
|
34 |
|
|
|
— |
|
|
Interest expense on deposits |
Tax effect |
|
|
(9 |
) |
|
|
— |
|
|
Income tax (benefit) expense |
|
|
|
25 |
|
|
|
— |
|
|
Net income (loss) |
Total reclassification adjustments |
|
$ |
154 |
|
|
$ |
212 |
|
|
|
The following tables present the changes in each component of AOCI for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands) |
|
Net Unrealized Losses on AFS
Securities(1) |
|
|
Net Unrealized Losses on Cash Flow
Hedges(1) |
|
|
AOCI(1) |
|
Balance at March 31, 2026 |
|
$ |
(5,540 |
) |
|
$ |
(14 |
) |
|
$ |
(5,554 |
) |
Other comprehensive income before
reclassification |
|
|
656 |
|
|
|
— |
|
|
|
656 |
|
Amounts reclassified from AOCI |
|
|
45 |
|
|
|
13 |
|
|
|
58 |
|
Other comprehensive income |
|
|
701 |
|
|
|
13 |
|
|
|
714 |
|
Balance at June 30, 2026 |
|
$ |
(4,839 |
) |
|
$ |
(1 |
) |
|
$ |
(4,840 |
) |
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2025 |
|
$ |
(6,923 |
) |
|
$ |
(46 |
) |
|
$ |
(6,969 |
) |
Other comprehensive income before
reclassification |
|
|
1 |
|
|
|
6 |
|
|
|
7 |
|
Amounts reclassified from AOCI |
|
|
98 |
|
|
|
— |
|
|
|
98 |
|
Other comprehensive income |
|
|
99 |
|
|
|
6 |
|
|
|
105 |
|
Balance at June 30, 2025 |
|
$ |
(6,824 |
) |
|
$ |
(40 |
) |
|
$ |
(6,864 |
) |
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2025 |
|
$ |
(4,809 |
) |
|
$ |
(30 |
) |
|
$ |
(4,839 |
) |
Other comprehensive (loss) income before
reclassification |
|
|
(159 |
) |
|
|
4 |
|
|
|
(155 |
) |
Amounts reclassified from AOCI |
|
|
129 |
|
|
|
25 |
|
|
|
154 |
|
Other comprehensive (loss) income |
|
|
(30 |
) |
|
|
29 |
|
|
|
(1 |
) |
Balance at June 30, 2026 |
|
$ |
(4,839 |
) |
|
$ |
(1 |
) |
|
$ |
(4,840 |
) |
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2024 |
|
$ |
(7,013 |
) |
|
$ |
(31 |
) |
|
$ |
(7,044 |
) |
Other comprehensive loss before
reclassification |
|
|
(23 |
) |
|
|
(9 |
) |
|
|
(32 |
) |
Amounts reclassified from AOCI |
|
|
212 |
|
|
|
— |
|
|
|
212 |
|
Other comprehensive income (loss) |
|
|
189 |
|
|
|
(9 |
) |
|
|
180 |
|
Balance at June 30, 2025 |
|
$ |
(6,824 |
) |
|
$ |
(40 |
) |
|
$ |
(6,864 |
) |
(1)All amounts are net of tax. |