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DERIVATIVES
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES

Note 24—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.

 

The following table presents the gross notional amounts and estimated fair value of derivative instruments employed by the Company as of December 31, 2023:

             
       Fair Value 
(Dollars in thousands)  Notional
Amount		   Assets   Liabilities 
Fair Value Hedges:            
Interest rate contracts               
Pay fixed, receive variable – loans  $150,000   $1,069   $— 
Total derivatives  $150,000   $1,069   $— 

The above derivative is under a master netting arrangement. However, as of December 31, 2023, there were no other outstanding derivative contracts. The net fair value of the hedged item and derivative item is recorded in other assets in the statement of financial condition. There were no outstanding derivative contracts as of December 31, 2022. The following represents the carrying value of hedged items in fair value hedging relationships:

             
   Hedge Asset   Hedge Basis Adjustment 
(Dollars in thousands)  Basis   Designated   Discounted 
Fair Value Hedges:               
Interest rate contracts               
Commercial real estate loans  $900   $—   $— 
Total  $900   $—   $— 

 

During the year ended December 31, 2023, income on interest settlements totaled $1.6 million. Changes in the fair value of the hedged item of $1.1 million was offset by changes in the fair value of the swap derivative of $1.1 million. The residual was a result of hedge ineffectiveness and recorded in other income on the consolidated statement of operations. No portion of the change in fair value of derivatives designated as hedges has been excluded from effectiveness testing. No hedges were terminated during the year ended December 31, 2023.