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Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments DERIVATIVE FINANCIAL INSTRUMENTS
Risk Management Objective of Using Derivatives
The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s loans and borrowings. The Company does not enter into derivative financial instruments for trading purposes.

Cash Flow Hedges of Interest Rate Risk
The Company’s objectives in using interest rate derivatives are to add stability to interest income and expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy.

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 based loan portfolio. Select terms of the hedges are as follows:

($ in thousands)
Notional Fixed RateEffective DateMaturity Date
$50,000 6.56 %January 25, 2023February 1, 2027
$100,000 6.63 %December 20, 2022January 1, 2028
$100,000 6.66 %April 1, 2025April 1, 2030

The Company executed a prime based interest rate collar in the fourth quarter of 2022 with a notional amount of $100.0 million. The collar includes a cap of 8.14% and a floor of 5.25%. The collar matures on October 1, 2029.
The Company also executed a 1-month SOFR based interest rate collar in the fourth quarter of 2024 with a notional amount of $50.0 million. The collar includes a cap of 4.21% and a floor of 3.23%. The collar matures on November 1, 2029. 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.

For hedges of the variable-rate liabilities, interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company has executed a series of cash flow hedges to fix the effective interest rate for payments due on $32.1 million of junior subordinated debentures to a weighted-average-fixed rate of 2.64%.

The following table presents select terms of the hedges as follows:

($ in thousands)
Notional Fixed RateMaturity Date
$18,5582.64%March 15, 2026
$13,5062.64%March 17, 2026

During the next twelve months, the Company estimates $0.1 million will be reclassified as a decrease to interest expense and $0.5 million will be reclassified as a decrease to interest income.

Non-designated Hedges
Derivatives not designated as hedges are not considered speculative and result from a service the Company provides to certain clients. The Company executes interest rate swaps with commercial banking clients to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the client derivatives and the offsetting derivatives are recognized directly in earnings as a component of other noninterest income.

The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheet as of December 31st of the year presented:
Notional AmountDerivative AssetsDerivative Liabilities
($ in thousands)202520242025202420252024
Derivatives designated as hedging instruments
Interest rate swaps$282,064 $282,064 $1,876 $649 $— $3,139 
Interest rate collars150,000 150,000 498 — — 1,056 
Total$432,064 $432,064 $2,374 $649 $— $4,195 
Derivatives not designated as hedging instruments
Interest rate swaps$878,278 $854,171 $10,110 $14,495 $10,114 $14,497 

Derivative assets are reported in “Other assets” on the Consolidated Balance Sheet. Derivative liabilities are reported in the Consolidated Balance Sheet in “Other liabilities.”
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 Sheet.
As of December 31, 2025
Gross Amounts Not Offset in the Statement of Financial Position
($ in thousands)Gross Amounts RecognizedGross Amounts Offset in the Statement of Financial PositionNet Amounts of Assets presented in the Statement of Financial PositionFinancial InstrumentsFair Value Collateral PostedNet Amount
Assets:
Interest rate swaps$11,986 $— $11,986 $3,142 $6,470 $2,374 
Interest rate collar498 — 498 — — 498 
Liabilities:
Interest rate swaps$10,114 $— $10,114 $3,142 $— $6,972 
Securities sold under agreements to repurchase292,782 — 292,782 — 292,782 — 
As of December 31, 2024
Gross Amounts Not Offset in the Statement of Financial Position
($ in thousands)Gross Amounts RecognizedGross Amounts Offset in the Statement of Financial PositionNet Amounts of Assets presented in the Statement of Financial PositionFinancial InstrumentsFair Value Collateral PostedNet Amount
Assets:
Interest rate swaps$15,144 $— $15,144 $4,975 $9,710 $459 
Liabilities:
Interest rate swaps$17,636 $— $17,636 $4,975 $— $12,661 
Interest rate collar1,056 — 1,056 — — 1,056 
Securities sold under agreements to repurchase244,618 — 244,618 — 244,618 — 

As of December 31, 2025, the fair value of counterparty derivatives in a net liability position, which includes accrued interest related to these agreements was $7.1 million. The Company has minimum collateral posting thresholds with certain derivative counterparties and posts collateral related to derivatives in a net liability position. The Company has received cash collateral from counterparties on derivatives that were in a net asset position as noted in the tables above.