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Derivatives | 6 Months Ended
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Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | (14) Derivatives To accommodate customer need and to support the Company’s asset/liability positioning, on occasion the Company enters into interest rate swaps with a customer and a bank counterparty. The interest rate swaps are free-standing derivatives and are recorded at fair value. The Company enters into a floating rate loan and a fixed rate swap with our customer. Simultaneously, the Company enters into an offsetting fixed rate swap with a bank counterparty. In connection with each swap transaction, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on the same notional amount at a fixed interest rate. At the same time, the Company agrees to pay a bank counterparty the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. These transactions allow the Company’s customer to effectively convert variable rate loans to fixed rate loans. Since the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts offset each other and do not significantly impact the Company’s results of operations. None of the Company’s derivatives are designated as hedging instruments. The Company presents derivative positions gross on the balance sheet for customers and net for financial institution counterparty positions subject to master netting arrangements. The fair value on the asset side was reduced by the margin call adjustment per the Company's netting arrangement in the amounts of $3,900 and $6,330 as of June 30, 2025 and December 31, 2024, respectively. The following table reflects the derivatives recorded on the balance sheet as of June 30, 2025 and December 31, 2024:
|  | June 30, 2025 |  |  | December 31, 2024 |
|  | Notional Amount |  |  | Fair Value |  |  | Notional Amount |  |  | Fair Value |
Included in swap assets: |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps with loan customers in an asset position |  | $ | 108,797 |  |  | $ | 2,865 |  |  | $ | 68,621 |  |  | $ | 1,169 |
Counterparty positions with financial institutions in an asset position |  |  | 258,000 |  |  |  | 4,165 |  |  |  | 247,727 |  |  |  | 10,469 |
Total before netting adjustments |  |  |  |  |  | 7,030 |  |  |  |  |  |  | 11,638 |
Netting adjustments - cash collateral posted by counterparties* |  |  |  |  |  | (3,900 | ) |  |  |  |  |  | (6,330 | )
Total Swap assets |  |  |  |  | $ | 3,130 |  |  |  |  |  | $ | 5,308 |
Included in swap liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps with loan customers in a liability position |  | $ | 149,203 |  |  | $ | 7,030 |  |  | $ | 179,106 |  |  | $ | 11,638 |
Counterparty positions with financial institutions in a liability position |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total before netting adjustments |  |  |  |  |  | 7,030 |  |  |  |  |  |  | 11,638 |
Netting adjustments - cash collateral posted to counterparties** |  |  |  |  |  | — |  |  |  |  |  |  | — |
Total Swap liabilities |  |  |  |  | $ | 7,030 |  |  |  |  |  | $ | 11,638 |
*Cash collateral posted by counterparties represents the obligation to return cash collateral received from counterparties. |  |  |  |  |  |  |  |  |  |  |  |
**Cash collateral posted to counterparties represents the right to reclaim cash collateral that was paid to counterparties. |  |  |  |  |  |  |  |  |  |  |  |
Gross notional positions with customers |  | $ | 258,000 |  |  |  |  |  | $ | 247,727 |  |  |  |
Gross notional positions with financial institution counterparties |  | $ | 258,000 |  |  |  |  |  | $ | 247,727 |  |  |  |
The Company monitors and controls all derivative products with a comprehensive Board of Director approved commercial loan swap policy. All hedge transactions must be approved in advance by the Lenders Loan Committee or the Board of Directors. The Company classifies changes in fair value of derivatives in Other noninterest income in the Consolidated Statements of Operation. There was no gain or loss recognized on derivatives for the period ended June 30, 2025 or the period ended June 30, 2024. At June 30, 2025 and December 31, 2024, the Company did no t have any cash or securities pledged for collateral on its interest rate swaps with third party financial institutions. Cash pledged for collateral on interest rate swaps is classified as restricted cash on the Consolidated Balance Sheets.

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