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Derivative Financial Instruments and Hedging Activities (Tables) | 9 Months Ended
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Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Information on our derivatives follows:
| Asset derivatives |  | Liability derivatives
(in thousands) | September 30, 2024 | December 31, 2023 |  | September 30, 2024 | December 31, 2023
Available-for-sale securities: |  |  |  |  |
Interest rate swaps - notional amount | $ | — |  | $ | — |  |  | $ | 101,770 |  | $ | 101,770 |
Interest rate swaps - fair value 1 | $ | — |  | $ | — |  |  | $ | 1,444 |  | $ | 1,359 |
Loans receivable: |  |  |  |  |
Interest rate contracts - notional amount | $ | 5,925 |  | $ | 6,441 |  |  | $ | 1,969 |  | $ | 2,157 |
Interest rate contracts - fair value 1 | $ | 181 |  | $ | 287 |  |  | $ | 22 |  | $ | 2 |
1 Refer to Note 3, Fair Value of Assets and Liabilities, for valuation methodology. The following table presents the carrying amount and associated cumulative basis adjustment related to the application of fair value hedge accounting that is included in the carrying amount of hedged assets as of September 30, 2024 and December 31, 2023.
| Carrying Amounts of Hedged Assets |  | Cumulative Amounts of Fair Value Hedging Adjustments Included in the Carrying Amounts of the Hedged Assets
(in thousands) | September 30, 2024 | December 31, 2023 |  | September 30, 2024 | December 31, 2023
Available-for-sale securities 1 | $ | 106,275 |  | $ | 107,181 |  |  | $ | (1,444) |  | $ | (1,359) |
Loans receivable 2 | $ | 7,624 |  | $ | 8,183 |  |  | $ | (227) |  | $ | (367) |
1 Carrying value equals the amortized cost basis of the securities underlying the hedge relationship, which is the book value net of the fair value hedge adjustment. Amortized cost excludes accrued interest totaling $227 thousand and $222 thousand as of September 30, 2024 and December 31, 2023, respectively.
2 Carrying value equals the amortized cost basis of the loans underlying the hedge relationship, which is the loan balance net of deferred loan origination fees and cost and the fair value hedge adjustment. Amortized cost excludes accrued interest, which was not material.
Schedule of Derivative Instruments, Losses in Statement of Financial Performance | The following table presents the pretax net gains (losses) recognized in interest income related to our fair value hedges for the years presented.
| Three months ended | Nine months ended
(in thousands) | September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023
Interest on investment securities 1 |  |  |  |
Increase in fair value of interest rate swaps hedging available-for-sale securities | $ | (1,584) |  | $ | 367 |  | $ | (85) |  | $ | 367 |
Hedged interest earned | 203 |  | 162 |  | 615 |  | 162 |
Decrease in carrying value included in the hedged available-for-sale securities | 1,584 |  | (367) |  | 85 |  | (367) |
Net gain (loss) recognized in interest income on investment securities | $ | 203 |  | $ | 162 |  | $ | 615 |  | $ | 162 |
Interest and fees on loans 1 |  |  |  |
Decrease (increase) in fair value of interest rate swaps hedging loans receivable | $ | (253) |  | $ | 223 |  | $ | (126) |  | $ | 252 |
Hedged interest earned | 53 |  | 74 |  | 161 |  | 192 |
Increase (decrease) in carrying value included in the hedged loans | 257 |  | (211) |  | 140 |  | (233) |
Decrease in value of yield maintenance agreement | (2) |  | (2) |  | (6) |  | (7) |
Net gain recognized in interest income on loans | $ | 55 |  | $ | 84 |  | $ | 169 |  | $ | 204 |
1 Represents the income line item in the statement of comprehensive loss in which the effects of fair value hedges are recorded.
Schedule of Offsetting Assets and Liabilities | Information on financial instruments that are eligible for offset in the consolidated statements of condition follows:
Offsetting of Financial Assets and Derivative Assets
|  | Gross Amounts | Net Amounts of | Gross Amounts Not Offset in |
| Gross Amounts | Offset in the | Assets Presented | the Statements of Condition |
| of Recognized | Statements of | in the Statements | Financial | Cash Collateral |
(in thousands) | Assets 1 | Condition | of Condition 1 | Instruments | Received | Net Amount
September 30, 2024 |  |  |  |  |  |
Counterparty | $ | 181 |  | $ | — |  | $ | 181 |  | $ | — |  | $ | — |  | $ | 181 |
Total | $ | 181 |  | $ | — |  | $ | 181 |  | $ | — |  | $ | — |  | $ | 181 |
December 31, 2023 |  |  |  |  |  |
Counterparty | $ | 287 |  | $ | — |  | $ | 287 |  | $ | — |  | $ | — |  | $ | 287 |
Total | $ | 287 |  | $ | — |  | $ | 287 |  | $ | — |  | $ | — |  | $ | 287 |
Offsetting of Financial Liabilities and Derivative Liabilities
|  | Gross Amounts | Net Amounts of | Gross Amounts Not Offset in |
| Gross Amounts | Offset in the | Assets Presented | the Statements of Condition |
| of Recognized | Statements of | in the Statements | Financial | Cash Collateral |
(in thousands) | Assets 1 | Condition | of Condition 1 | Instruments | Pledged | Net Amount
September 30, 2024 |  |  |  |  |  |
Counterparty | 1,466 |  | — |  | 1,466 |  | (181) |  | (1,180) |  | 105 |
Total | $ | 1,466 |  | $ | — |  | $ | 1,466 |  | $ | (181) |  | $ | (1,180) |  | $ | 105 |
December 31, 2023 |  |  |  |  |  |
Counterparty | $ | 1,361 |  | $ | — |  | $ | 1,361 |  | $ | (287) |  | $ | (330) |  | $ | 744 |
Total | $ | 1,361 |  | $ | — |  | $ | 1,361 |  | $ | (287) |  | $ | (330) |  | $ | 744 |
1 Amounts exclude accrued interest on swaps.

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