Accumulated Other Comprehensive Loss ("AOCL")

9 Months Ended

Sep. 30, 2025

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Loss ("AOCL")

Accumulated Other Comprehensive Loss (“AOCL”)

A summary of changes in AOCL follows:


	Unrealized Losses on Securities AFS		Unrealized Losses on Securities Transferred to Securities HTM (1)		Dispropor- tionate Tax Effects from Securities AFS		Unrealized Gains (Losses) on Derivative Instruments		Total
	(In thousands)
For the three months ended September 30,
2025
Balances at beginning of period	$	(51,816)	$	(11,489)	$	(5,798)	$	(784)	$	(69,887)
Other comprehensive income (loss) before reclassifications	9,066		614		—		(932)		8,748
Amounts reclassified from AOCL	27		—		—		482		509
Net current period other comprehensive income (loss)	9,093		614		—		(450)		9,257
Balances at end of period	$	(42,723)	$	(10,875)	$	(5,798)	$	(1,234)	$	(60,630)

2024
Balances at beginning of period	$	(49,482)	$	(14,084)	$	(5,798)	$	(1,464)	$	(70,828)
Other comprehensive income before reclassifications	9,340		646		—		2,168		12,154
Amounts reclassified from AOCL	114		—		—		308		422
Net current period other comprehensive income	9,454		646		—		2,476		12,576
Balances at end of period	$	(40,028)	$	(13,438)	$	(5,798)	$	1,012	$	(58,252)

For the nine months ended September 30,
2025
Balances at beginning of period	$	(49,301)	$	(12,775)	$	(5,798)	$	(2,070)	$	(69,944)
Other comprehensive income (loss) before reclassifications	6,298		1,900		—		(383)		7,815
Amounts reclassified from AOCL	280		—		—		1,219		1,499
Net current period other comprehensive income	6,578		1,900		—		836		9,314
Balances at end of period	$	(42,723)	$	(10,875)	$	(5,798)	$	(1,234)	$	(60,630)

2024
Balances at beginning of period	$	(51,113)	$	(15,408)	$	(5,798)	$	177	$	(72,142)
Other comprehensive income before reclassifications	10,758		1,970		—		41		12,769
Amounts reclassified from AOCL	327		—		—		794		1,121
Net current period other comprehensive income	11,085		1,970		—		835		13,890
Balances at end of period	$	(40,028)	$	(13,438)	$	(5,798)	$	1,012	$	(58,252)

(1)Represents the remaining unrealized loss to be accreted on securities that were transferred from AFS to HTM on April 1, 2022.

The disproportionate tax effects from securities AFS arose due to tax effects of other comprehensive income (“OCI”) in the presence of a valuation allowance against our deferred tax assets and a pretax loss from operations. Generally, the amount of income tax expense or benefit allocated to operations is determined without regard to the tax effects of other categories of income or loss, such as OCI. However, an exception to the general rule is provided when, in the presence of a valuation allowance against deferred tax assets, there is a pretax loss from operations and pretax income from other categories in the current period. In such instances, income from other categories must offset the current loss from operations, the tax benefit of such offset being reflected in operations. Release of material disproportionate tax effects from other comprehensive income to earnings is done by the portfolio method whereby the effects will remain in AOCL as long as we carry a more than inconsequential portfolio of securities AFS.

A summary of reclassifications out of each component of AOCL for the three months ended September 30 follows:


AOCL Component	Amount Reclassified From AOCL		Affected Line Item in Interim Condensed Consolidated Statements of Operations
	(In thousands)
2025
Unrealized losses on securities available for sale
	$	(36)	Net losses on securities available for sale
	(9)		Income tax expense
	$	(27)	Reclassifications, net of tax

Unrealized gains (losses) on derivative instruments
	$	(606)	Interest income
	4		Interest expense
	(610)
	(128)		Income tax expense
	$	(482)	Reclassifications, net of tax

	$	(509)	Total reclassifications for the period, net of tax

2024
Unrealized losses on securities available for sale
	$	(145)	Net losses on securities available for sale
	(31)		Income tax expense
	$	(114)	Reclassifications, net of tax

Unrealized gains (losses) on derivative instruments
	$	(390)	Interest income
	(82)		Income tax expense
	$	(308)	Reclassifications, net of tax

	$	(422)	Total reclassifications for the period, net of tax

A summary of reclassifications out of each component of AOCL for the nine months ended September 30 follows:


AOCL Component	Amount Reclassified From AOCL		Affected Line Item in Interim Condensed Consolidated Statements of Operations
	(In thousands)
2025
Unrealized losses on securities available for sale
	$	(355)	Net losses on securities available for sale
	(75)		Income tax expense
	$	(280)	Reclassifications, net of tax

Unrealized gains (losses) on derivative instruments
	$	(1,535)	Interest income
	8		Interest expense
	(1,543)
	(324)		Income tax expense
	$	(1,219)	Reclassifications, net of tax

	$	(1,499)	Total reclassifications for the period, net of tax

2024
Unrealized losses on securities available for sale
	$	(414)	Net losses on securities available for sale
	(87)		Income tax expense
	$	(327)	Reclassifications, net of tax

Unrealized gains (losses) on derivative instruments
	$	(1,005)	Interest income
	211		Income tax expense
	$	(794)	Reclassifications, net of tax

	$	(1,121)	Total reclassifications for the period, net of tax