| Schedule of Derivative Instruments |
For hedges of the Company’s variable-rate loans, interest rate swaps designated as cash flow hedges involve the receipt of fixed amounts and the Company making variable rate payments. The Company has executed cash flow hedges to reduce a portion of variability in cash flows on the Company’s prime- and SOFR-based loan portfolio. Select terms of the hedges are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | ($ in thousands) | | | | | | | | | | Notional | | Fixed Rate | | Index | | Effective Date | | Maturity Date | | $ | 50,000 | | | 6.56% | | Prime | | January 25, 2023 | | February 1, 2027 | | 100,000 | | | 6.63% | | Prime | | December 20, 2022 | | January 1, 2028 | | 100,000 | | | 6.66% | | Prime | | April 1, 2025 | | April 1, 2030 | | 100,000 | | | 3.51% | | 1-month Term SOFR | | April 17, 2026 | | May 1, 2031 | | 100,000 | | | 3.69% | | 1-month Term SOFR | | May 11, 2026 | | May 1, 2029 | | 50,000 | | | 6.99% | | Prime | | February 1, 2027 | | February 1, 2032 |
The Company has also executed interest rate collars to reduce a portion of variability in cash flows on the Company’s prime- and SOFR-based loan portfolio. These transactions are commonly referred to as zero cost collars, which involves the Company selling an interest rate cap where payments will be made when the index exceeds the cap rate, and the purchase of a floor where payments will be received if the index falls below the floor. Select terms of the collars are as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | ($ in thousands) | | | | | | | | | | Notional | | Cap Rate | | Floor Rate | | Index | | Maturity Date | | $ | 100,000 | | | 8.14% | | 5.25% | | Prime | | October 1, 2029 | | 50,000 | | | 4.21% | | 3.23% | | 1-month Term SOFR | | November 1, 2029 | | 100,000 | | | 4.71% | | 3.25% | | 1-month Term SOFR | | July 9, 2031 |
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| Schedule of Derivative Instruments in Statement of Financial Position, Fair Value |
The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the Balance Sheet as of the dates indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Notional Amount | | Derivative Assets | | Derivative Liabilities | | ($ in thousands) | September 30,
2026 | | December 31, 2025 | | September 30,
2026 | | December 31, 2025 | | September 30,
2026 | | December 31, 2025 | | Derivatives designated as hedging instruments | | Interest rate swaps | $ | 500,000 | | | $ | 282,064 | | | $ | — | | | $ | 1,876 | | | $ | 13,611 | | | $ | — | | | Interest rate collars | 250,000 | | | 150,000 | | | — | | | 498 | | | 3,916 | | | — | | | Total | $ | 750,000 | | | $ | 432,064 | | | $ | — | | | $ | 2,374 | | | $ | 17,527 | | | $ | — | | | | | | | | | | | | | | | Derivatives not designated as hedging instruments | | Interest rate swaps | $ | 918,894 | | | $ | 878,278 | | | $ | 15,364 | | | $ | 10,110 | | | $ | 15,369 | | | $ | 10,114 | | | | | | | | | | | | | | | | | | | | | | | | | |
The following tables present a gross presentation, the effects of offsetting, and a net presentation of the Company’s financial instruments subject to offsetting. The gross amounts of assets or liabilities can be reconciled to the tabular disclosure of fair value. The fair value table above provides the location of financial assets and liabilities presented on the Consolidated Balance Sheets.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of September 30, 2026 | | | | Gross Amounts Not Offset in the Statement of Financial Position | | | | ($ in thousands) | Gross Amounts Recognized | | Gross Amounts Offset in the Statement of Financial Position | | Net Amounts of Assets presented in the Statement of Financial Position | | Financial Instruments | | Fair Value Collateral Posted | | Net Amount | | Assets: | | | | | | | | | | | | | Interest rate swaps | $ | 15,364 | | | $ | — | | | $ | 15,364 | | | $ | 15,364 | | | $ | 6,120 | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | Interest rate swaps | $ | 28,980 | | | $ | — | | | $ | 28,980 | | | $ | 15,364 | | | $ | 8,127 | | | $ | 5,489 | | | Interest rate collars | 3,916 | | | — | | | 3,916 | | | — | | | — | | | 3,916 | | | Securities sold under agreements to repurchase | 143,329 | | | — | | | 143,329 | | | — | | | 143,329 | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2025 | | | | Gross Amounts Not Offset in the Statement of Financial Position | | | | ($ in thousands) | Gross Amounts Recognized | | Gross Amounts Offset in the Statement of Financial Position | | Net Amounts of Assets presented in the Statement of Financial Position | | Financial Instruments | | Fair Value Collateral Posted | | Net Amount | | Assets: | | | | | | | | | | | | | Interest rate swaps | $ | 11,986 | | | $ | — | | | $ | 11,986 | | | $ | 3,142 | | | $ | 6,470 | | | $ | 2,374 | | | Interest rate collars | 498 | | | — | | | 498 | | | — | | | — | | | 498 | | | | | | | | | | | | | | | Liabilities: | | | | | | | | | | | | | Interest rate swaps | $ | 10,114 | | | $ | — | | | $ | 10,114 | | | $ | 3,142 | | | $ | — | | | $ | 6,972 | | | | | | | | | | | | | | | Securities sold under agreements to repurchase | 292,782 | | | — | | | 292,782 | | | — | | | 292,782 | | | — | |
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