XML 27 R21.htm IDEA: XBRL DOCUMENT
v3.25.1

DERIVATIVES | 3 Months Ended
--- | ---
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVES | 12. DERIVATIVES 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 at both March 31, 2025 and December 31, 2024 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 March 31, 2025, 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 table presents information about the interest rate swaps designated as cash flow hedges as of March 31, 2025 and December 31, 2024:
(Dollars in thousands) |  | March 31, 2025 |  |  | December 31, 2024 |
Notional amount |  | $ | 360,000 |  |  | $ | 360,000 |
Weighted average pay rate |  |  | 2.35 | % |  |  | 2.35 | %
Weighted average receive rate |  |  | 3.51 | % |  |  | 3.83 | %
Weighted average maturity |  | 1.83 years |  |  | 2.08 years |
Unrealized gain/(loss), net |  | $ | 5,262 |  |  | $ | 7,815 |
Number of contracts |  |  | 14 |  |  |  | 14 |
|  | March 31, 2025 |
|  | Notional |  |  | Fair |
(In thousands) |  | Amount |  |  | Value |
Interest rate swaps related to interest-bearing deposits |  | $ | 360,000 |  |  | $ | 5,262 |
Total included in other assets |  | $ | 360,000 |  |  |  | 5,262 |
Total included in other liabilities |  |  | — |  |  |  | — |
|  | December 31, 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 |  |  | — |  |  |  | — |
Cash Flow Hedges The following table presents the net gains/(losses) recorded in accumulated other comprehensive income/(loss) and the consolidated financial statements relating to the cash flow derivative instruments for the three months ended March 31, 2025 and 2024:
| For the Three Months Ended March 31, |
(In thousands) | 2025 |  |  | 2024 |
Interest rate contracts |  |  |  |  |
Gain/(loss) recognized in other comprehensive income (effective portion) | $ | (2,553 | ) |  | $ | 2,872 |
Net interest income recorded on these swap transactions totaled $1.0 million and $1.5 million for the three months ended March 31, 2025 and March 31, 2024, respectively, and is reported as a component of interest expense. Derivatives Not Designated as Accounting Hedges 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 $754,000 and $849,000 at March 31, 2025 and December 31, 2024, respectively, is recorded in other assets and other liabilities. Information about these swaps is as follows:
(Dollars in thousands) |  | March 31, 2025 |  |  | December 31, 2024 |
Notional amount |  | $ | 423,910 |  |  | $ | 430,785 |
Fair value |  | $ | (15,599 | ) |  | $ | (21,426 | )
Weighted average pay rates |  |  | 3.95 | % |  |  | 3.95 | %
Weighted average receive rates |  |  | 6.03 | % |  |  | 6.25 | %
Weighted average maturity |  | 3.44 years |  |  | 3.65 years |
Number of contracts |  |  | 54 |  |  |  | 55 |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration