The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements.

Interest Rate Swaps Designated as Cash Flow Hedges: Interest rate swaps with a notional amount of $360.0 million as of December 31, 2024 and $310.0 million as of December 31, 2023 were designated as cash flow hedges of certain interest-bearing deposits. On a quarterly basis, the Company performs a qualitative hedge effectiveness assessment. This assessment takes into consideration any adverse developments related to the counterparty’s risk of default and any negative events or circumstances that affect the factors that originally enabled the Company to assess that it could reasonably support, qualitatively, an expectation that the hedging relationship was and will continue to be highly effective. As of December 31, 2024, there were no events or market conditions that would result in hedge ineffectiveness. The aggregate fair value of the swaps is recorded in other assets/liabilities with changes in fair value recorded in other comprehensive income. The amount included in accumulated other comprehensive income would be reclassified to current earnings should the hedges no longer be considered effective. The Company expects the hedges to remain fully effective during the remaining terms of the swaps.

The following tables present information about the interest rate swaps designated as cash flow hedges as of December 31, 2024 and December 31, 2023:


(Dollars in thousands)	2024			2023
Notional amount	$	360,000		$	310,000
Weighted average pay rate		2.35	%		2.22	%
Weighted average receive rate		3.83	%		4.14	%
Weighted average maturity	2.08 years			2.98 years
Unrealized gain/(loss), net	$	7,815		$	6,814
Number of contracts		14			12


	2024
	Notional		Fair
(In thousands)	Amount		Value
Interest rate swaps related to interest-bearing deposits	$	360,000	$	7,815
Total included in other assets	$	360,000	$	7,815
Total included in other liabilities		—		—


	2023
	Notional		Fair
(In thousands)	Amount		Value
Interest rate swaps related to interest-bearing deposits	$	310,000	$	6,814
Total included in other assets		310,000		6,814
Total included in other liabilities		—		—

The following table presents the net gains/(losses) recorded in accumulated other comprehensive income and the consolidated financial statements relating to the cash flow derivative instruments for the year ended December 31:


(In thousands)	2024		2023
Interest rate contracts
Gain/(loss) recognized in other comprehensive income (effective portion)	$	1,001	$	(2,391	)
Gain/(loss) recognized in other noninterest income		—		84

Net interest income recorded on these swap transactions totaled $5.8 million for the year ended December 31, 2024. Net interest income/expense for these swap transactions is reported as a component of interest expense. Net interest income recorded on these swap transactions totaled $5.0 million for the year ended December 31, 2023.

The Company offers facility specific/loan level swaps to its customers and offsets its exposure from such contracts by entering mirror image swaps with a financial institution/swap counterparty (loan level-/-back-to-back swap program). The customer accommodations and any offsetting swaps are treated as non-hedging derivative instruments which do not qualify for hedge accounting (“standalone derivatives”). The notional amount of the swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual contracts. The fair value of the swaps is recorded as both an asset and a liability, in other assets and other liabilities, respectively, in equal amounts for these transactions.

The accrued interest receivable and payable related to these swaps of $849,000 and $1.4 million at December 31, 2024 and December 31, 2023, respectively, is recorded in other assets and other liabilities.

Information about these swaps at December 31 is as follows:


(Dollars in thousands)	2024			2023
Notional amount	$	430,785		$	545,983
Fair value	$	(21,426	)	$	(22,452	)
Weighted average pay rates		3.95	%		3.95	%
Weighted average receive rates		6.25	%		7.09	%
Weighted average maturity	3.65 years			3.93 years
Number of contracts		55			71