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DERIVATIVE FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Value of Derivative Instruments
The following table summarizes the notional values and fair value of the Company's derivative instruments at December 31, 2022 and 2021:
December 31, 2022December 31, 2021
Notional AmountBalance Sheet LocationFair ValueNotional AmountBalance Sheet LocationFair Value
Derivatives designated as hedging instruments:
Interest rate swaps - balance sheet hedge$100,000 Other liabilities$(973)$— Not applicable$— 
Total derivatives designated as hedging instruments$(973)$— 
Derivatives not designated as hedging instruments:
Interest rate swaps$128,385 Other assets$10,437 $37,915 Other assets$764 
Interest rate swaps128,385 Other liabilities(10,262)37,915 Other liabilities(758)
Purchased Options – Rate Cap6,000 Other assets29 — Not applicable— 
Written Options – Rate Cap6,000 Other liabilities(29)— Not applicable— 
Risk participations - sold credit protection29,019 Other liabilities(69)15,855 Other liabilities(2)
Risk participations - purchased credit protection4,941 Other assets16 — Not applicable— 
Interest rate lock commitments with customers1,356 Other assets35 16,604 Other assets353 
Forward sale commitments3,483 Other assets140 8,665 Other assets52 
Total derivatives not designated as hedging instruments$297 $409 
Effect of Derivative Financial Instruments on OCI and Net Income
The following tables summarize the effect of the Company's derivative financial instruments on OCI and net income at December 31, 2022 and 2021:
Amount of (Loss) Gain Recognized in OCI on Derivative
20222021
Derivatives in cash flow hedging relationships:
Interest rate products$(972)$473 
Total$(972)$473 
Amount of Loss Reclassified from AOCI into IncomeLocation of Loss Recognized from AOCI into Income
20222021
Derivatives in cash flow hedging relationships:
Interest rate products$— $(757)
Interest income(1) / Interest expense(2)
Total$— $(757)
(1) For interest rate swaps designated as cash flow hedges entered into for the year ended December 31, 2022, the amount of loss reclassified from AOCI will be recorded to other income in the unaudited condensed consolidated statements of income.
(2) For the year ended December 31, 2021, the Company terminated its interest rate swap designated as a hedging instrument with a notional value of $50.0 million. The Company recorded a $514 thousand loss in other operating expenses in the consolidated statements of income.
Amount of Gain (Loss) Recognized in IncomeLocation of Gain (Loss) Recognized in Income
20222021
Derivatives not designated as hedging instruments:
Interest rate products$30 $41 Other operating expenses
Risk participation agreements88 (2)Other operating expenses
Interest rate lock commitments with customers(318)(320)Mortgage banking activities
Forward sale commitments88 113 Mortgage banking activities
Total$(113)$(168)
Summary of Interest Rate Swap Components
The following table is a summary of components for interest rate swap designated as cash flow hedges at December 31, 2022 and 2021. At December 31, 2022, the Company had two interest rate derivatives designated as cash flow hedges with a total notional of $100.0 million. During the year ended December 31, 2021, the Company terminated its remaining interest rate derivative of $50.0 million.
December 31, 2022December 31, 2021
Weighted average pay rate3.81 %— %
Weighted average receive rate3.81 %— %
Weighted average maturity in years1.20.0