Derivative Financial Instruments (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Summary of Derivatives Recorded on Balance Sheet |
The following tables reflects the derivatives recorded on the balance sheet as of the dates indicated:
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Included in Other Assets |
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Included in Other Liabilities |
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(In thousands of dollars) |
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Notional |
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Fair |
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Notional |
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Fair |
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June 30, 2026 |
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Amount |
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Value |
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Amount |
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Value |
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Derivatives designated as hedges: |
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Interest rate swaps related to
cash flow hedges |
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$ |
25,000 |
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$ |
3,044 |
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$ |
- |
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$ |
- |
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Interest rate collars related to
cash flow hedges |
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150,000 |
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357 |
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- |
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- |
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Interest rate swaps related to
fair value hedges |
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25,535 |
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2,160 |
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- |
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- |
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Total |
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$ |
5,561 |
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$ |
- |
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Included in Other Assets |
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Included in Other Liabilities |
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(In thousands of dollars) |
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Notional |
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Fair |
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Notional |
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Fair |
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December 31, 2025 |
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Amount |
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Value |
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Amount |
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Value |
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Derivatives designated as hedges: |
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Interest rate swaps related to
cash flow hedges |
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$ |
75,000 |
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$ |
2,931 |
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$ |
- |
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$ |
- |
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Interest rate collars related to
cash flow hedges |
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150,000 |
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1,195 |
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- |
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- |
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Interest rate swaps related to
fair value hedges |
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25,535 |
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2,009 |
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- |
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- |
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Total |
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$ |
6,135 |
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$ |
- |
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| Summary of Effect of Fair Value Hedges on Balance Sheet and Consolidated Statements of Income |
The following table presents the amounts recorded on the balance sheet related to cumulative basis adjustment for the fair value hedges as of June 30, 2026 and December 31, 2025:
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Cumulative Amount of Fair |
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Line Item in the |
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Value Hedging Adjustment |
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Balance Sheet in |
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Included in the Carrying |
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Which the Hedged |
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Carrying Amount |
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Amount of the |
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Item is Included |
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of the Hedged Assets |
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Hedged Assets |
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June 30, |
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December 31, |
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June 30, |
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December 31, |
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(In thousands of dollars) |
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2026 |
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2025 |
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2026 |
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2025 |
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Securities available-for-sale |
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$ |
23,537 |
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$ |
23,725 |
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$ |
(2,262 |
) |
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$ |
(2,109 |
) |
The following table presents the effect of fair value hedge accounting on the Consolidated Statements of Income and the location and amount of gain or (loss) recognized in income on fair value hedging relationships for the periods indicated:
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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Interest Income |
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Interest Income |
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Interest Income |
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Interest Income |
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(In thousands of dollars) |
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(Offset to AOCI) |
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(Offset to AOCI) |
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(Offset to AOCI) |
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(Offset to AOCI) |
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Gain or (loss) on fair value hedging relationships |
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Interest contracts: |
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Change in fair value of interest rate swaps hedging
available-for-sale securities |
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$ |
122 |
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$ |
(380 |
) |
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$ |
151 |
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$ |
(891 |
) |
Change in fair value of hedged available-for-sale securities |
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$ |
(123 |
) |
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$ |
388 |
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$ |
(153 |
) |
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$ |
907 |
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| Summary of Interest Rate Swaps Designated as Fair Value Hedges |
The following table summarizes information about the interest rate swaps designated as fair value hedges at June 30, 2026:
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(Dollars in thousands) |
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Notional amount of fair value hedges |
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$ |
25,535 |
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Weighted average maturity in years |
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3.49 |
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| Summary of Change in Fair Value for Derivatives Designated as Fair Value Hedges and Offsetting Change in Fair Value on Hedged Item |
The following table presents the change in fair value for derivatives designated as fair value hedges as well as the offsetting change in fair value on the hedged item for the periods indicated:
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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(In thousands of dollars) |
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2026 |
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2025 |
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2026 |
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2025 |
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Interest rate contracts: Gain or (Loss) |
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Change in fair value of interest rate swaps hedging
available-for-sale securities |
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$ |
122 |
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$ |
(380 |
) |
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$ |
151 |
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$ |
(891 |
) |
Change in fair value of hedged available-for-sale securities |
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$ |
(123 |
) |
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$ |
388 |
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$ |
(153 |
) |
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$ |
907 |
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| Schedule of Gains and (Losses) Recognized in Accumulated Other Comprehensive Income ("AOCI") and Gains and (Losses) Reclassified from Other Comprehensive Income "OCI" into Earnings for Derivatives Designated as Cash Flow Hedges |
The tables below present the gains and (losses) recognized in accumulated other comprehensive income ("AOCI") and the location in the Consolidated Statements of Income of the gains and (losses) reclassified from other comprehensive income ("OCI") into earnings for derivatives designated as cash flow hedges for the periods indicated:
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Three Months Ended June 30, 2026 |
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(In thousands of dollars) |
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Derivatives in Cash Flow Hedging Relationships |
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Amount of Gain (Loss) Recognized in OCI on Derivative |
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Location of Gain (Loss) Reclassified from OCI into Income |
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Amount of Gain (Loss) Reclassified from OCI into Income (pre-tax) |
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Interest rate contracts |
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Interest income (expense) |
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Effective portion |
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$ |
(196 |
) |
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Effective portion |
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$ |
179 |
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Deferred tax |
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$ |
(84 |
) |
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Amount excluded from the assessment
of effectiveness and amortized into earnings |
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$ |
(108 |
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Three Months Ended June 30, 2025 |
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(In thousands of dollars) |
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Derivatives in Cash Flow Hedging Relationships |
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Amount of Gain (Loss) Recognized in OCI on Derivative |
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Location of Gain (Loss) Reclassified from OCI into Income |
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Amount of Gain (Loss) Reclassified from OCI into Income (pre-tax) |
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Interest rate contracts |
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Interest income (expense) |
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Effective portion |
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$ |
92 |
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Effective portion |
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$ |
312 |
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Deferred tax |
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$ |
28 |
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Amount excluded from the assessment
of effectiveness and amortized into earnings |
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$ |
(308 |
) |
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Six Months Ended June 30, 2026 |
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(In thousands of dollars) |
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Derivatives in Cash Flow Hedging Relationships |
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Amount of Gain (Loss) Recognized in OCI on Derivative |
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Location of Gain (Loss) Reclassified from OCI into Income |
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Amount of Gain (Loss) Reclassified from OCI into Income (pre-tax) |
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Interest rate contracts |
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Interest income (expense) |
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Effective portion |
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$ |
(239 |
) |
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Effective portion |
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$ |
364 |
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Deferred tax |
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$ |
(122 |
) |
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Amount excluded from the assessment
of effectiveness and amortized into earnings |
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$ |
(215 |
) |
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Six Months Ended June 30, 2025 |
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(In thousands of dollars) |
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Derivatives in Cash Flow Hedging Relationships |
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Amount of Gain (Loss) Recognized in OCI on Derivative |
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Location of Gain (Loss) Reclassified from OCI into Income |
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Amount of Gain (Loss) Reclassified from OCI into Income (pre-tax) |
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Interest rate contracts |
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Interest income (expense) |
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Effective portion |
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$ |
(190 |
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Effective portion |
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$ |
622 |
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Deferred tax |
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$ |
(104 |
) |
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Amount excluded from the assessment
of effectiveness and amortized into earnings |
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$ |
(482 |
) |
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| Summary Of Interest Rate Swaps And Option Collar Designated As Cash Flow Hedge |
The following tables summarizes information about the interest rate swaps and option collar designated as a cash flow hedge at June 30, 2026:
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(Dollars in thousands) |
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Notional Amount - Pay Fixed Swap |
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$ |
25,000 |
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Weighted average fixed pay rate |
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1.06 |
% |
Weighted average 3-month receive rate |
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3.90 |
% |
Weighted average maturity in years |
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4.31 |
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During the next twelve months, the Company estimates that will be
reclassified from OCI as a decrease to interest expense |
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$ |
591 |
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During the next twelve months, the Company estimates that will be
reclassified from Deferred Tax as a decrease to interest expense |
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$ |
187 |
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(Dollars in thousands) |
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Notional Amount Collar |
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$ |
150,000 |
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Weighted average bought floor strike |
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3.25 |
% |
Weighted average sold floor strike |
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1.00 |
% |
Weighted average bought cap strike |
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6.55 |
% |
Weighted average sold cap strike |
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5.25 |
% |
Weighted average maturity in years |
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2.42 |
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During the next twelve months, the Company estimates that will be
reclassified from OCI as a decrease to interest income |
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$ |
330 |
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During the next twelve months, the Company estimates that will be
reclassified from Deferred Tax as a decrease to interest income |
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$ |
104 |
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