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Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
We are required to record derivatives on our interim Condensed Consolidated Statements of Financial Condition as assets and liabilities measured at their fair value. The accounting for increases and decreases in the value of derivatives depends upon the use of derivatives and whether the derivatives qualify for hedge accounting.
Our derivative financial instruments according to the type of hedge in which they are designated follows:
September 30, 2025
Notional
Amount		Average
Maturity
(years)		Fair
Value
(Dollars in thousands)
Fair value hedge designation
Pay-fixed interest rate swap agreement - commercial$5,345 3.6$189 
Pay-fixed interest rate swap agreements - securities available for sale148,895 2.17,931 
Pay-fixed interest rate swap agreements - installment100,000 1.7(917)
Pay-fixed interest rate swap agreements - mortgage
117,000 1.9(1,272)
Interest rate cap agreements - securities available for sale40,970 2.651 
Total$412,210 2.0$5,982 
Cash flow hedge designation
Interest rate floor agreements - commercial
$450,000 1.9$5,090 
Interest rate cap agreements - short-term funding liabilities
50,000 2.479 
Total500,000 1.95,169 
No hedge designation
Rate-lock mortgage loan commitments$20,929 0.1$187 
Mandatory commitments to sell mortgage loans30,147 0.139 
Pay-fixed interest rate swap agreements - commercial633,139 4.7(3,422)
Pay-variable interest rate swap agreements - commercial633,139 4.73,422 
Total$1,317,354 4.5$226 
December 31, 2024
Notional
Amount		Average
Maturity
(years)		Fair
Value
(Dollars in thousands)
Fair value hedge designation
Pay-fixed interest rate swap agreement - commercial$5,647 4.4$361 
Pay-fixed interest rate swap agreements - securities available for sale148,895 2.813,265 
Pay-fixed interest rate swap agreements - installment100,000 2.477 
Pay-fixed interest rate swap agreements - mortgage
147,000 2.2283 
Interest rate cap agreements - securities available for sale40,970 3.3334 
Total$442,512 2.6$14,320 
Cash flow hedge designation
Interest rate floor agreements - commercial
$375,000 2.3$3,642 
Interest rate cap agreements - short-term funding liabilities
25,000 3.4312 
Total400,000 2.13,954 
No hedge designation
Rate-lock mortgage loan commitments12,703 0.1100 
Mandatory commitments to sell mortgage loans19,874 0.162 
Pay-fixed interest rate swap agreements - commercial538,053 5.013,325 
Pay-variable interest rate swap agreements - commercial538,053 5.0(13,325)
Total$1,108,683 4.9$162 

We have established management objectives and strategies that include interest-rate risk parameters for maximum fluctuations in net interest income and market value of portfolio equity. We monitor our interest rate risk position via simulation modeling reports. The goal of our asset/liability management efforts is to maintain profitable financial leverage within established risk parameters.

We have entered into pay-fixed interest rate swaps and caps to protect a portion of the fair value of a certain fixed rate commercial loan and certain mortgage and installment loans (‘‘Fair Value Hedge – Portfolio Loans’’). As a result, changes in the fair values of the pay-fixed interest rate swaps and caps are expected to offset changes in the fair values of the fixed rate portfolio loans due to fluctuations in interest rates. We record the fair values of Fair Value Hedge – Portfolio Loans in accrued income and other assets and accrued expenses and other liabilities on our interim Condensed Consolidated Statements of Financial Condition. The hedged items (a fixed rate commercial loan and certain fixed rate mortgage and installment loans) are also recorded at fair value which offsets the adjustment to the Fair Value Hedge – Portfolio Loans. On an ongoing basis, we adjust our interim Condensed Consolidated Statements of Financial Condition to reflect the then current fair values of both the Fair Value Hedge – Portfolio Loans and the hedged items. The related gains or losses are reported in interest income – interest and fees on loans in our interim Condensed Consolidated Statements of Operations. During the second quarter of 2023 we terminated the interest rate cap that was previously hedging certain installment loans. The remaining unrealized gain on this terminated interest cap of $0.14 million as of September 30, 2025 is being amortized into earnings over the original life of the interest rate cap which was February, 2030.

We have entered into pay-fixed interest rate swap and interest rate cap agreements to protect a portion of the fair value of certain securities available for sale (‘‘Fair Value Hedge – AFS Securities’’). As a result, the change in the fair value of the pay-fixed interest rate swap and interest rate cap agreements is expected to offset a portion of the change in the fair value of the fixed rate securities available for sale due to fluctuations in interest rates. We record the fair value of Fair Value Hedge – AFS Securities in accrued income and other assets and accrued expenses and other liabilities on our interim Condensed Consolidated Statements of Financial Condition. The hedged items (fixed rate securities available for sale) are also recorded at fair value which offsets the adjustment to the Fair Value Hedge – AFS Securities. On an ongoing basis, we
adjust our interim Condensed Consolidated Statements of Financial Condition to reflect the then current fair value of both the Fair Value Hedge – AFS Securities and the hedged item. The related gains or losses are reported in interest income – interest on securities – tax-exempt in our interim Condensed Consolidated Statements of Operations.

We have entered into interest rate floor agreements to manage the variability in future expected cash flows of certain commercial loans (‘‘Cash Flow Hedge – Portfolio Loans’’). We record the fair value of Cash Flow Hedge – Portfolio Loans in accrued income and other assets and accrued expenses and other liabilities on our interim Condensed Consolidated Statements of Financial Condition. The changes in the fair value of Cash Flow Hedge - Portfolio Loans are recorded in accumulated other comprehensive loss and are reclassified into the line item in our interim Condensed Consolidated Statements of Operations in which the hedged items are recorded in the same period the hedged items affect earnings.
We have entered into an interest rate cap agreement to manage the variability in future expected cash flows of certain short-term funding liabilities (‘‘Cash Flow Hedge – Short-term Funding Liabilities’’). We record the fair value of Cash Flow Hedge – Short-term Funding Liabilities in accrued income and other assets and accrued expenses and other liabilities on our interim Condensed Consolidated Statements of Financial Condition. The changes in the fair value of Cash Flow Hedge - Short-term Funding Liabilities are recorded in accumulated other comprehensive loss and are reclassified into the line item in our interim Condensed Consolidated Statements of Operations in which the hedged items are recorded in the same period the hedged items affect earnings.

For Cash Flow Hedges, it is anticipated that as of September 30, 2025, $1.3 million will be reclassified from accumulated other comprehensive loss as a reduction to earnings over the next twelve months. The maximum term of any Cash Flow Hedge at September 30, 2025 is 3.7 years.
Certain derivative financial instruments have not been designated as hedges. The fair value of these derivative financial instruments has been recorded on our interim Condensed Consolidated Statements of Financial Condition and is adjusted on an ongoing basis to reflect their then current fair value. The changes in fair value of derivative financial instruments not designated as hedges are recognized in earnings.
In the ordinary course of business, we enter into rate-lock mortgage loan commitments with customers (“Rate-Lock Commitments”). These commitments expose us to interest rate risk. We also enter into mandatory commitments to sell mortgage loans (“Mandatory Commitments”) to reduce the impact of price fluctuations of mortgage loans held for sale and Rate-Lock Commitments. Mandatory Commitments help protect our loan sale profit margin from fluctuations in interest rates. The changes in the fair value of Rate-Lock Commitments and Mandatory Commitments are recognized currently as part of net gains on mortgage loans in our interim Condensed Consolidated Statements of Operations. We obtain market prices on Mandatory Commitments and Rate-Lock Commitments. Net gains on mortgage loans, as well as net income may be more volatile as a result of these derivative instruments, which are not designated as hedges.
We have a program that allows commercial loan customers to lock in a fixed rate for a longer period of time than we would normally offer for interest rate risk reasons. We will enter into a variable rate commercial loan and an interest rate swap agreement with a customer and then enter into an offsetting interest rate swap agreement with an unrelated party. The interest rate swap agreement fair values will generally move in opposite directions resulting in little or no net impact on our interim Condensed Consolidated Statements of Operations. All of the interest rate swap agreements - commercial with no hedge designation in the table above relate to this program.
The following tables illustrate the impact that the derivative financial instruments discussed above have on individual line items in the interim Condensed Consolidated Statements of Financial Condition for the periods presented:
Fair Values of Derivative Instruments
Asset DerivativesLiability Derivatives
September 30,
2025		December 31,
2024		September 30,
2025		December 31,
2024
Balance
Sheet
Location		Fair
Value		Balance
Sheet
Location		Fair
Value		Balance
Sheet
Location		Fair
Value		Balance
Sheet
Location		Fair
Value
(In thousands)
Derivatives designated as hedging instruments
Pay-fixed interest rate swap agreementsOther assets$8,160 Other assets$14,336 Other liabilities$2,229 Other liabilities$350 
Interest rate cap agreementsOther assets130 Other assets646 Other liabilities— Other liabilities— 
Interest rate floor agreements
Other assets5,090 Other assets3,642 Other liabilities— Other liabilities— 
13,380 18,624 2,229 350 
Derivatives not designated as hedging instruments
Rate-lock mortgage loan commitmentsOther assets187 Other assets100 Other liabilities— Other liabilities— 
Mandatory commitments to sell mortgage loansOther assets39 Other assets62 Other liabilities— Other liabilities— 
Pay-fixed interest rate swap agreements - commercialOther assets7,539 Other assets15,799 Other liabilities10,961 Other liabilities2,474 
Pay-variable interest rate swap agreements - commercialOther assets10,961 Other assets2,474 Other liabilities7,539 Other liabilities15,799 
18,726 18,435 18,500 18,273 
Total derivatives$32,106 $37,059 $20,729 $18,623 
The effect of derivative financial instruments on the interim Condensed Consolidated Statements of Operations follows:
Gain (Loss) Recognized in Other
Comprehensive Income (Effective Portion)
Location of Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)
Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)Gain (Loss)
Recognized
in Income
Three Month
Periods Ended
September 30,		Three Month
Periods Ended
September 30,		Location of
Gain (Loss)
Recognized
in Income		Three Month
Periods Ended
September 30,
202520242025202420252024
(In thousands)
Fair Value Hedges
Pay-fixed interest rate swap agreement - commercial
Interest and fees on loans$(25)$(184)
Pay-fixed interest rate swap agreements - securities available for sale
Interest on securities
(1,162)(4,882)
Pay-fixed interest rate swap agreements - Installment
Interest and fees on loans(15)(2,421)
Pay-fixed interest rate swap agreements - Mortgage
Interest and fees on loans(91)(2,940)
Interest rate cap agreements - securities available for sale$(43)$(255)
Interest on securities
$(55)$(57)
Interest on securities
— (119)
Total$(43)$(255)$(55)$(57)$(1,293)$(10,546)
Cash Flow Hedges
Interest rate floor agreements - commercial
$(1,046)$2,999 Interest and fees on loans$(551)$(333)Interest and fees on loans$(551)$(333)
Interest rate cap agreements - short-term funding liabilities
(93)— 
Interest expense
(4)— 
Interest expense
(4)— 
Total
$(1,139)$2,999 $(555)$(333)$(555)$(333)
No hedge designation
Rate-lock mortgage loan commitmentsNet gains on mortgage loans$(184)$111 
Mandatory commitments to sell mortgage loansNet gains on mortgage loans171 (122)
Pay-fixed interest rate swap agreements - commercialInterest and fees on loans(1,879)(15,031)
Pay-variable interest rate swap agreements - commercialInterest and fees on loans1,879 15,031 
Total$(13)$(11)
Gain (Loss) Recognized in Other
Comprehensive Income (Effective Portion)
Location of Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)
Loss Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)Gain (Loss)
Recognized
in Income
Nine Month
Periods Ended
September 30,		Nine Month
Periods Ended
September 30,		Location of
Gain (Loss)
Recognized
in Income		Nine Month
Periods Ended
September 30,
202520242025202420252024
(In thousands)
Fair Value Hedges
Pay-fixed interest rate swap agreement - commercial
Interest and fees on loans$(172)$(110)
Pay-fixed interest rate swap agreements - securities available for sale
Interest on securities
(5,334)(4,028)
Pay-fixed interest rate swap agreements - installment
Interest and fees on loans(994)(513)
Pay-fixed interest rate swap agreements - mortgage
Interest and fees on loans(1,555)(648)
Interest rate cap agreements - securities available for sale$(283)$(194)
Interest on securities
$(172)$(167)
Interest on securities
— (81)
Total$(283)$(194)$(172)$(167)$(8,055)$(5,380)
Cash Flow Hedges
Interest rate floor agreements - commercial
$91 $246 Interest and fees on loans$(1,363)$(838)Interest and fees on loans$(1,363)$(838)
Interest rate cap agreements - short-term funding liabilities
(293)— 
Interest expense
(8)— 
Interest expense
(8)— 
Total
$(202)$246 $(1,371)$(838)$(1,371)$(838)
No hedge designation
Rate-lock mortgage loan commitmentsNet gains on mortgage loans$87 $80 
Mandatory commitments to sell mortgage loansNet gains on mortgage loans(23)304 
Pay-fixed interest rate swap agreements - commercialInterest and fees on loans(16,747)(8,482)
Pay-variable interest rate swap agreements - commercialInterest and fees on loans16,747 8,482 
Total$64 $384