Note 6 – Derivatives
The Company utilizes interest rate swap agreements with commercial banking customers to facilitate their interest rate management strategies. The Company entered into corresponding
offsetting derivatives with third parties. While these derivatives represent economic hedges, they do not qualify as hedges for accounting purposes.
The Company presents derivatives on a gross basis on the consolidated statements of financial condition. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. The following tables present the amounts recorded on the consolidated statements of financial condition related to the Company’s interest rate swaps.
|
|
As of June 30, 2026
|
|
|
Notional
Amount
|
|
|
Fair Value
|
|
Consolidated
Statements of
Financial Condition
Category
|
|
|
(In thousands)
|
|
Derivatives in an asset position:
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
Interest rate swaps related to loan customers
|
|
$
|
17,000 |
|
|
$
|
203 |
|
Other Assets
|
|
Total derivatives in an asset position
|
|
$
|
17,000 |
|
|
$
|
203 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
Derivatives in a liability position:
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps related to loan customers
|
|
$
|
17,000 |
|
|
$
|
203 |
|
Accrued Expenses and
Other Liabilities
|
|
Total derivatives in a liability position
|
|
$
|
17,000 |
|
|
$
|
203 |
|
|
|
|
As of December 31, 2025
|
|
|
Notional
Amount
|
|
|
Fair Value
|
|
Consolidated
Statements of
Financial Condition
Category
|
|
|
(In thousands)
|
|
Derivatives in an asset position:
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
Interest rate swaps related to loan customers
|
|
$
|
17,000 |
|
|
$
|
105 |
|
Other Assets
|
|
Total derivatives in an asset position
|
|
$
|
17,000 |
|
|
$
|
105 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivatives in a liability position:
|
|
|
|
|
|
|
|
|
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps related to loan customers
|
|
$
|
17,000 |
|
|
$
|
105 |
|
Accrued Expenses and
Other Liabilities
|
|
Total derivatives in a liability position
|
|
$
|
17,000 |
|
|
$
|
105 |
|
|
|