v3.26.3
DERIVATIVES
 9 Months Ended
Sep. 30, 2026
DERIVATIVES [Abstract]  
DERIVATIVES
11.  DERIVATIVES
 
The Company utilizes interest rate swap agreements as part of its asset-liability management strategy to help manage its interest rate risk position. These interest rate swaps are designated and qualify as fair value hedges and are entered into to reduce exposure to changes in fair value of fixed rate financial instruments. The notional amounts of the interest rate swaps do not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amounts and the other terms of the individual interest rate swap agreements.
 
The following table reflects the changes in fair value hedges included in the consolidated statements of comprehensive income (loss) for the periods indicated (dollars in thousands):
 
           
    Three Months Ended
September 30, 		 
Interest Rate Contracts Location   2026    2025 
Change in fair value of interest rate swaps hedging investment securities  Other noninterest expense $972  $(912) 
Change in fair value of hedged investment securities  Other noninterest expense  (936)   878 
Change in fair value of interest rate swaps hedging fixed rate loans  Interest income-loans  5   (43) 
Change in fair value of hedged fixed rate loans  Interest income-loans  (8)   23 
 
           
    Nine Months Ended
September 30, 		 
Interest Rate Contracts Location   2026    2025 
Change in fair value of interest rate swaps hedging investment securities  Other noninterest expense $1,186  $(5,016) 
Change in fair value of hedged investment securities  Other noninterest expense  (1,172)   4,703 
Change in fair value of interest rate swaps hedging fixed rate loans  Interest income-loans  10   (145) 
Change in fair value of hedged fixed rate loans  Interest income-loans  (15)   150 
 
The following table reflects the fair value hedges included in the consolidated balance sheets at the dates indicated (dollars in thousands):
 
                 
  September 30, 2026   December 31, 2025  
   Notional
Amount		  Fair
Value		   Notional
Amount		  Fair
Value		 
Included in other liabilities:                
Interest rate swaps related to fixed rate loans $-  $-  $-  $- 
Interest rate swaps related to state and municipal securities  -   -   -   - 
                 
Included in other assets:                
Interest rate swaps related to fixed rate loans $1,958  $34  $2,030  $24 
Interest rate swaps related to state and municipal securities  116,145   10,916   117,860   9,730 
 
Mortgage banking derivatives
 
The net gains (losses) relating to free standing derivative instruments used for risk management are summarized below for the periods indicated (dollars in thousands):
 
           
    Three Months Ended
September 30, 		 
  Location   2026    2025 
Gain (loss) on mortgage banking derivatives Net gain on sales of loans $(159)  $(42) 
 
           
    Nine Months Ended
September 30, 		 
  Location   2026    2025 
Gain (loss) on mortgage banking derivatives Net gain on sales of loans $(68)  $(5) 
The following table reflects the amount and fair value of mortgage banking derivatives in the consolidated balance sheets at the dates indicated (dollars in thousands):
 
                 
  September 30, 2026   December 31, 2025  
   Notional
Amount		   Fair
Value		   Notional
Amount		  Fair
Value		 
Included in other assets:                
Forward contracts related to mortgage loans held for sale $6,750  $111  $-  $- 
Interest rate lock commitments  9,067   101   16,127   216 
                 
Included in other liabilities:                
Forward contracts related to mortgage loans held for sale $4,888  $129  $15,746  $65 
 
The Company had received cash collateral of $9.3 million and $10.5 million to offset asset derivative positions on its interest rate swaps at September 30, 2026 and December 31, 2025, respectively. This amount is reported in other liabilities in the consolidated balance sheets. The Company had advanced $1.1 million to offset liability derivative positions on its interest rate swaps at September 30, 2026 and December 31, 2025. Additionally, the Company had advanced $270 thousand on its mortgage forward contracts at September 30, 2026 and December 31, 2025. The advanced cash collateral amounts are reported in cash and due from banks in the consolidated balance sheets.