| Schedule of derivative instruments |
The Company presents derivative position gross on the balance sheet. The following reflects the fair value of derivatives recorded on the Condensed Consolidated Balance Sheets as of the dates noted: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of September 30, 2026 | | As of December 31, 2025 | (dollars in thousands) | | Notional Amount | | Fair Value | | Notional Amount | | Fair Value | | Included in other assets: | | | | | | | | | | Derivatives designated as hedges: | | | | | | | | | | Interest rate swaps – cash flow hedge | | $ | 200,000 | | | $ | 4,785 | | | $ | — | | | $ | — | | | Interest rate swaps – fair value hedge | | 200,000 | | | 4,590 | | | — | | | — | | | | | | | | | | | | Derivatives not designated as hedging instruments: | | | | | | | | | | Interest rate swaps related to customer loans | | 45,790 | | | 1,220 | | | 70,703 | | | 952 | | | | | | | | | | | | Total included in other assets | | | | $ | 10,595 | | | | | $ | 952 | | | | | | | | | | | | Included in other liabilities: | | | | | | | | | | Derivatives designated as hedges: | | | | | | | | | | Interest rate swaps – cash flow hedge | | $ | — | | | $ | — | | | $ | 250,000 | | | $ | 777 | | | Interest rate swaps – fair value hedge | | — | | | — | | | 200,000 | | | 719 | | | | | | | | | | | | Derivatives not designated as hedging instruments: | | | | | | | | | | Interest rate swaps related to customer loans | | 45,790 | | | 1,236 | | | 70,703 | | | 976 | | | | | | | | | | | | Total included in other liabilities | | | | $ | 1,236 | | | | | $ | 2,472 | |
The effect of cash flow hedge accounting on Accumulated other comprehensive income were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | | | 2026 | | 2025 | | (dollars in thousands) | Location of Gain (Loss) Reclassified from OCI into Income | | Amount of Gain (Loss) Recognized in OCI on Derivative | | Amount of Gain (Loss) Reclassified from OCI into Income | | Amount of Gain (Loss) Recognized in OCI on Derivative | | Amount of Gain (Loss) Reclassified from OCI into Income | Interest rate swap - FHLB borrowings | Interest expense - Other borrowed funds | | $ | — | | | $ | — | | | $ | 25 | | | $ | 62 | | Interest rate swaps - Variable rate deposits | Interest expense - Deposits | | 2,205 | | | 141 | | | (324) | | | 367 | | | | | $ | 2,205 | | | $ | 141 | | | $ | (299) | | | $ | 429 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, | | | | 2026 | | 2025 | | (dollars in thousands) | Location of Gain (Loss) Reclassified from OCI into Income | | Amount of Gain (Loss) Recognized in OCI on Derivative | | Amount of Gain (Loss) Reclassified from OCI into Income | | Amount of Gain (Loss) Recognized in OCI on Derivative | | Amount of Gain (Loss) Reclassified from OCI into Income | Interest rate swap - FHLB borrowings | Interest expense - Other borrowed funds | | $ | (6) | | | $ | (25) | | | $ | 65 | | | $ | 180 | | Interest rate swaps - Variable rate deposits | Interest expense - Deposits | | 4,617 | | | 387 | | | (324) | | | 367 | | | | | $ | 4,611 | | | $ | 362 | | | $ | (259) | | | $ | 547 | |
The following amounts were recorded on the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges for the respective period (dollars in thousands): | | | | | | | | | | | | | | | | | | | | | September 30, 2026 | | | | Condensed Consolidated Balance Sheet line item | | Amortized Cost of the Hedged Assets | | | | Amortized Cost of Fair Value Hedging Included in the Carrying Amount of the Hedged Assets | | Loans | | $ | 398,720 | | | | | $ | (4,592) | | | |
The effects of the fair value hedge relationships on the Condensed Consolidated Statements of Income were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
September 30, | | Nine Months Ended
September 30, | | (dollars in thousands) | Location of Gain (Loss) | | 2026 | | 2025 | | 2026 | | 2025 | | Interest rate swap | Interest income - Loans | | $ | 2,817 | | | $ | (559) | | | $ | 5,651 | | | $ | (559) | | | Loans | Interest income - Loans | | (2,707) | | | $ | 915 | | | (5,531) | | | 915 | |
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