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Derivatives and Hedging Activities | 12 Months Ended
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Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company executes loan level derivative products such as interest rate swap agreements with commercial banking customers to aid them in managing their interest rate risk. The interest rate swap contracts allow the commercial banking customers to convert floating rate loan payments to fixed rate loan payments. The Company concurrently enters into offsetting swaps with a third party financial institution, effectively minimizing its net risk exposure resulting from such transactions. The third party financial institution exchanges the customer's fixed rate loan payments for floating rate loan payments. As the interest rate swap agreements associated with this program do not meet hedge accounting requirements, changes in the fair value are recognized directly in earnings. Based on the Company's intended use for the loan level derivatives at inception, the Company designates the derivative as either an economic hedge of an asset or liability, or a hedging instrument subject to the hedge accounting provisions of FASB ASC Topic 815, "Derivatives and Hedging". The Company believes using interest rate derivatives adds stability to interest income and expense and allows the Company to manage its exposure to interest rate movements. The Company enters into interest rate swaps as part of its interest rate risk management strategy. These interest rate swaps are designated as cash flow hedges and involve the receipt of variable rate amounts from a counterparty in exchange for the Company making fixed payments. The Company enters into interest rate swaps as hedging instruments against the interest rate risk associated with the Company's FHLB borrowings and loan portfolio. For derivative instruments that are designated and qualify as cash flow hedging instruments, the effective portion of the gains or losses is reported as a component of OCI, and is reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The following table reflects the Company's derivative positions as of the date indicated below for interest rate derivatives which qualify as cash flow hedges for accounting purposes.
| At December 31, 2025
| Notional Amount |  | Average Maturity |  | Weighted Average Rate |  | Fair Value
|  |  | Current Rate Paid |  | Received Fixed Swap Rate |
| (in thousands) |  | (in years) |  |  |  |  |  | (in thousands)
Interest rate swaps on loans | $ | 192,468 |  |  | 0.9 |  | 3.79 | % |  | 3.47 | % |  | $ | 7 |
| At December 31, 2024
| Notional Amount |  | Average Maturity |  | Weighted Average Rate |  | Fair Value
|  |  | Current Rate Paid |  | Received Fixed Swap Rate |
| (in thousands) |  | (in years) |  |  |  |  |  | (in thousands)
Interest rate swaps on loans | $ | 225,000 |  |  | 1.90 |  | 4.53 | % |  | 3.39 | % |  | $ | (2,033) |
The Company utilizes risk participation agreements with other banks participating in commercial loan arrangements. Participating banks guarantee the performance on borrower-related interest rate swap contracts. Risk participation agreements are derivative financial instruments and are recorded at fair value. These derivatives are not designated as hedges and therefore, changes in fair value are recorded directly through earnings in other non-interest income at each reporting period. Under a risk participation-out agreement, a derivative asset, the Company participates out a portion of the credit risk associated with the interest rate swap position executed with the commercial borrower, for a fee paid to the participating bank. The Company offers foreign exchange contracts to commercial borrowers to accommodate their business needs. These foreign exchange contracts do not qualify as hedges for accounting purposes. To mitigate the market and liquidity risk associated with these foreign exchange contracts, the Company enters into similar offsetting positions. Asset derivatives and liability derivatives are included in other assets and accrued expenses and other liabilities on the consolidated balance sheets. The following tables present the Company's customer related derivative positions for the periods indicated below for those derivatives not designated as hedging:
| Notional Amount Maturing
| Number of Positions |  | Less than 1 year |  | Less than 2 years |  | Less than 3 years |  | Less than 4 years |  | Thereafter |  | Total |  | Fair Value
| December 31, 2025
| (Dollars In Thousands)
Loan level derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Receive fixed, pay variable | 308 |  |  | $ | 280,333 |  |  | $ | 427,625 |  |  | $ | 368,548 |  |  | $ | 699,796 |  |  | $ | 1,729,538 |  |  | $ | 3,505,840 |  |  | $ | 58,840 |
Pay fixed, receive variable | 308 |  |  | 280,333 |  |  | 427,625 |  |  | 368,548 |  |  | 699,796 |  |  | 1,729,538 |  |  | 3,505,840 |  |  | 58,853 |
Risk participation-out agreements | 87 |  |  | 41,361 |  |  | 65,257 |  |  | 37,270 |  |  | 155,480 |  |  | 371,466 |  |  | 670,834 |  |  | 532 |
Risk participation-in agreements | 23 |  |  | 29,862 |  |  | 10,321 |  |  | 26,468 |  |  | 18,473 |  |  | 68,061 |  |  | 153,185 |  |  | 139 |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Buys foreign currency, sells U.S. currency | 9 |  |  | $ | 2,785 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,785 |  |  | $ | 274 |
Sells foreign currency, buys U.S. currency | 9 |  |  | 2,800 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,800 |  |  | 258 |
| Notional Amount Maturing
| Number of Positions |  | Less than 1 year |  | Less than 2 years |  | Less than 3 years |  | Less than 4 years |  | Thereafter |  | Total |  | Fair Value
| December 31, 2024
| (Dollars In Thousands)
Loan level derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Receive fixed, pay variable | 149 |  |  | $ | 153,724 |  |  | $ | 57,535 |  |  | $ | 237,601 |  |  | $ | 93,027 |  |  | $ | 1,131,061 |  |  | $ | 1,672,948 |  |  | $ | 95,720 |
Pay fixed, receive variable | 149 |  |  | 153,724 |  |  | 57,535 |  |  | 237,601 |  |  | 93,027 |  |  | 1,131,061 |  |  | 1,672,948 |  |  | 95,720 |
Risk participation-out agreements | 68 |  |  | 33,305 |  |  | 5,847 |  |  | 59,464 |  |  | 52,828 |  |  | 388,287 |  |  | 539,731 |  |  | 495 |
Risk participation-in agreements | 10 |  |  | — |  |  | 22,518 |  |  | 3,506 |  |  | 25,346 |  |  | 50,828 |  |  | 102,198 |  |  | 137 |
Foreign exchange contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Buys foreign currency, sells U.S. currency | 26 |  |  | $ | 5,849 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5,849 |  |  | $ | 459 |
Sells foreign currency, buys U.S. currency | 24 |  |  | 5,408 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5,408 |  |  | 482 |
Changes in the fair value are recognized directly in the Company's consolidated statements of income and are included in other non-interest income in the consolidated statements of income. The table below presents the net gain (loss) recognized in income due to changes in the fair value for the year ended December 31, 2025 and 2024.
| Year Ended December 31,
| 2025 |  | 2024
| (In Thousands)
Net (loss) gain recognized in income on: |  |  |
Net risk participation agreements | $ | (487) |  |  | $ | (571) |
Foreign exchange contracts | (8) |  |  | 16 |
Total | $ | (495) |  |  | $ | (555) |
By using derivative financial instruments, the Company exposes itself to credit risk which is the risk of failure by the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk for the Company. When the fair value of a derivative is negative, the Company owes the counterparty and, therefore, it does not possess credit risk. The credit risk in derivative instruments is mitigated by entering into transactions with highly-rated counterparties that management believes to be creditworthy and by limiting the amount of exposure to each counterparty by either cross collateralizing the underlying hedged loan or through bilateral posting of collateral to cover exposure. As the majority of the swaps are subject to master netting agreements, the Company had limited exposure relating to loan level derivatives with institutional counterparties as of December 31, 2025 and 2024. The estimated net credit risk exposure for derivative financial instruments was zero as of December 31, 2025, and 2024. Certain derivative agreements contain provisions that require the Company to post collateral if the derivative exposure exceeds a threshold amount. The Company posted collateral of $1.2 million and $0.9 million in the normal course of business as of December 31, 2025 and 2024, respectively. The tables below present the offsetting of derivatives and amounts subject to master netting agreements not offset in the consolidated balance sheet at the dates indicated:
| At December 31, 2025
| Gross Amounts Recognized |  | Gross Amounts Offset in the Statement of Financial Position |  | Net Amounts Presented in the Statement of Financial Position |  | Gross Amounts Not Offset in the Statement of Financial Position |  | Net Amount
|  |  |  | Financial Instruments Pledged |  | Cash Collateral Received/Paid |
| (In Thousands)
Asset derivatives |  |  |  |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives | $ | 185 |  |  | $ | — |  |  | $ | 185 |  |  | $ | — |  |  | $ | — |  |  | $ | 185 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |
Loan level derivatives | $ | 102,237 |  |  | $ | — |  |  | $ | 102,237 |  |  | $ | — |  |  | $ | 33,113 |  |  | $ | 69,124 |
Risk participation-out agreements | 532 |  |  | — |  |  | 532 |  |  | — |  |  | — |  |  | 532 |
Foreign exchange contracts | 274 |  |  | — |  |  | 274 |  |  | — |  |  | — |  |  | 274 |
Total | $ | 103,228 |  |  | $ | — |  |  | $ | 103,228 |  |  | $ | — |  |  | $ | 33,113 |  |  | $ | 70,115 |
Liability derivatives |  |  |  |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives | $ | 179 |  |  | $ | — |  |  | $ | 179 |  |  | $ | — |  |  | $ | — |  |  | $ | 179 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |
Loan level derivatives | $ | 115,937 |  |  | $ | — |  |  | $ | 115,937 |  |  | $ | — |  |  | $ | 1,180 |  |  | $ | 114,757 |
Risk participation-in agreements | 139 |  |  | — |  |  | 139 |  |  | — |  |  | — |  |  | 139 |
Foreign exchange contracts | 258 |  |  | — |  |  | 258 |  |  | — |  |  | — |  |  | 258 |
Total | $ | 116,513 |  |  | $ | — |  |  | $ | 116,513 |  |  | $ | — |  |  | $ | 1,180 |  |  | $ | 115,333 |
| At December 31, 2024
| Gross Amounts Recognized |  | Gross Amounts Offset in the Statement of Financial Position |  | Net Amounts Presented in the Statement of Financial Position |  | Gross Amounts Not Offset in the Statement of Financial Position |  | Net Amount
|  |  |  | Financial Instruments Pledged |  | Cash Collateral Pledged |
| (In Thousands)
Asset derivatives |  |  |  |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives | $ | 18 |  |  | $ | — |  |  | $ | 18 |  |  | $ | — |  |  | $ | — |  |  | $ | 18 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |
Loan level derivatives | $ | 102,608 |  |  | $ | — |  |  | $ | 102,608 |  |  | $ | — |  |  | $ | 79,592 |  |  | $ | 23,016 |
Risk participation-out agreements | 495 |  |  | — |  |  | 495 |  |  | — |  |  | — |  |  | 495 |
Foreign exchange contracts | 482 |  |  | — |  |  | 482 |  |  | — |  |  | — |  |  | 482 |
Total | $ | 103,603 |  |  | $ | — |  |  | $ | 103,603 |  |  | $ | — |  |  | $ | 79,592 |  |  | $ | 24,011 |
Liability derivatives |  |  |  |  |  |  |  |  |  |  |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |
Interest rate derivatives | $ | 2,051 |  |  | $ | — |  |  | $ | 2,051 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,051 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |  |
Loan level derivatives | $ | 102,608 |  |  | $ | — |  |  | $ | 102,608 |  |  | $ | — |  |  | $ | 870 |  |  | $ | 101,738 |
Risk participation-in agreements | 137 |  |  | — |  |  | 137 |  |  | — |  |  | — |  |  | 137 |
Foreign exchange contracts | 459 |  |  | — |  |  | 459 |  |  | — |  |  | — |  |  | 459 |
Total | $ | 105,255 |  |  | $ | — |  |  | $ | 105,255 |  |  | $ | — |  |  | $ | 870 |  |  | $ | 104,385 |
The Company has agreements with certain of its derivative counterparties that contain credit-risk-related contingent provisions. These provisions provide the counterparty with the right to terminate its derivative positions and require the Company to settle its obligations under the agreements if the Company defaults on certain of its indebtedness or if the Company fails to maintain its status as a well-capitalized institution.
| Fair Value
| Year Ended December 31, 2025 | Year Ended December 31, 2024
| (Dollars in Thousands)
Derivatives designated as hedges | $ | 7 |  | $ | (2,033) |
Gain (loss) in OCI on derivatives (effective portion), net of tax | $ | 50 |  | $ | (1,324) |
Gain (loss) reclassified from OCI into interest income or interest expense (effective portion) | $ | (1,875) |  | $ | (4,036) |
The guidance in ASU 2017-12 requires that amounts in accumulated other comprehensive income that are included in the assessment of effectiveness should be reclassified into earnings in the same period in which the hedged forecasted transactions impact earnings. A portion of the balance reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made or received on the Company’s interest rate swaps. The Company monitors the risk of counterparty default on an ongoing basis.

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