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Derivative Financial Instruments | 12 Months Ended
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Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Derivative Financial Instruments The Company uses derivative financial instruments from time to time to help manage exposure to interest rate risk and the effects that changes in interest rates may have on net income and the fair value of assets and liabilities. The Company enters into interest rate swap agreements as part of its asset/liability management strategy to help manage its interest rate risk position. The Company offers interest rate swaps to certain loan customers to allow them to hedge the risk of rising interest rates on their variable rate loans. The Company originates a variable rate loan and enters into a variable-to-fixed interest rate contract with the customer. The Company also enters into an offsetting interest rate swap with a correspondent bank. These back-to-back swap agreements are intended to offset each other and allow the Company to originate a variable rate loan, while providing a contract for fixed interest payments for the customer. The net cash flow for the Company is equal to the interest income received from a variable rate loan originated with the customer. The fair value of these derivatives is based on a discounted cash flow approach. In December 2024, the Company terminated interest rate swaps utilized as cash flow hedges against Federal Home Loan Bank advances, which resulted in swap termination receipts from counterparties of $2.9 million. As the Company had no further liability exposure to the underlying index hedged, the Company reclassified this amount from accumulated other comprehensive loss to the consolidated statements of operations and recognized a gain on termination of interest rate swaps for the year ended December 31, 2024. In November 2024, the Company’s interest rate swap derivative designated as fair value hedges matured. As a result, the Company has no remaining fair value hedge exposure at December 31, 2024. In March 2021, the Company terminated the last of layer interest rate swaps associated with available-for-sale agency mortgage-backed securities - residential, which resulted in swap termination payments to counterparties totaling $1.9 million. The corresponding fair value hedging adjustment was allocated pro-rata to the underlying hedged securities and is being amortized over the remaining lives of the designated securities. The Company had amortization expense totaling less than $0.1 million for the years ended December 31, 2025 and 2024, which was recognized as a reduction to interest income on securities. In June 2020, the Company terminated all fair value hedging relationships associated with loans, which resulted in swap termination payments to counterparties totaling $46.1 million. The corresponding loan fair value hedging adjustment as of the date of termination is being amortized over the remaining lives of the designated loans, which have a weighted average term to maturity of 8.8 years as of December 31, 2025. During the years ended December 31, 2025 and 2024, amortization expense totaling $3.8 million and $4.9 million, respectively, related to these previously terminated fair value hedges was recognized as a reduction to interest income on loans. The following table presents the notional amount and fair value of interest rate swaps utilized by the Company at December 31, 2025 and 2024.
|  | December 31, 2025 |  | December 31, 2024
(amounts in thousands) |  | Notional Amount |  | Fair Value |  | Notional Amount |  | Fair Value
Asset Derivatives |  |  |  |  |  |  |  |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |
Back-to-back swaps |  | $ | 45,050 |  |  | $ | 210 |  |  | $ | 27,214 |  |  | $ | 200 |
Total contracts |  | $ | 45,050 |  |  | $ | 210 |  |  | $ | 27,214 |  |  | $ | 200 |
Liability Derivatives |  |  |  |  |  |  |  |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |
Back-to-back swaps |  | $ | 45,050 |  |  | $ | (210) |  |  | $ | 27,214 |  |  | $ | (200) |
Total contracts |  | $ | 45,050 |  |  | $ | (210) |  |  | $ | 27,214 |  |  | $ | (200) |
The fair values of interest rate swaps were estimated using a discounted cash flow method that incorporates current market interest rates as of the balance sheet date. Refer to “Note 16 - Fair Value of Financial Instruments” for additional information. Back-to-back swaps consist of two interest-rate swaps (a customer swap and an offsetting counterparty swap). As a result of this offsetting relationship, no net gains or losses are recognized in income. The Company received no cash collateral from counterparties as security for their obligations related to these swap transactions at December 31, 2025 and 2024. The Company pledged cash collateral of $0.3 million and $0 as of December 31, 2025 and 2024, respectively, to counterparties as security for its obligations related to these agreements. Collateral posted and received is dependent on the market valuation of the underlying hedges. The following table presents the effects of the Company's cash flow hedge relationships on the consolidated statements of comprehensive (loss) income during the twelve months ended December 31, 2025, 2024 and 2023.
|  | Amount of Loss Recognized in Other Comprehensive (Loss) Income in the Twelve Months Ended
(amounts in thousands) |  | December 31, 2025 |  | December 31, 2024 |  | December 31, 2023
Interest rate swap agreements |  | $ | — |  |  | $ | — |  |  | $ | (2,566) |
The Company had no changes in the fair value of derivatives not designated as hedging instruments on the condensed consolidated statements of operations during the twelve months ended December 31, 2025 and 2024. The following table summarizes the effect of periodic changes in the fair value of derivatives not designated as hedging instruments on the condensed consolidated statements of operations for the twelve months ended December 31, 2025, 2024 and 2023.
|  | Amount of Loss Recognized in the Twelve Months Ended
(amounts in thousands) |  | December 31, 2025 |  | December 31, 2024 |  | December 31, 2023
Liability Derivatives |  |  |  |  |  |
Derivatives not designated as hedging instruments |  |  |  |  |  |
IRLCs |  | $ | — |  |  | $ | — |  |  | $ | (133) |
Forward contracts |  | — |  |  | — |  |  | (119) |
The following table presents the effects of the Company's interest rate swap agreements on the condensed consolidated statements of operations during the twelve months ended December 31, 2025, 2024 and 2023.
Line Item in the Condensed Consolidated Statements of Operations |  |
| December 31, 2025 |  | December 31, 2024 |  | December 31, 2023 |  |
Interest income |  |  |  |  |  |  |  |
Securities - non-taxable |  | $ | — |  |  | $ | 1,367 |  |  | $ | 1,471 |  |  |
Total interest income |  | — |  |  | 1,367 |  |  | 1,471 |  |  |
Interest expense |  |  |  |  |  |  |  |
Deposits |  | — |  |  | (424) |  |  | (1,671) |  |  |
Other borrowed funds |  | — |  |  | (2,833) |  |  | (2,622) |  |  |
Total interest expense |  | — |  |  | (3,257) |  |  | (4,293) |  |  |
Net interest income |  | $ | — |  |  | $ | 4,624 |  |  | $ | 5,764 |  |  |
Noninterest income |  |  |  |  |  |  |  |
Other 1 |  | $ | — |  |  | $ | 2,904 |  |  | $ | — |  |  |
Total noninterest income |  | $ | — |  |  | $ | 2,904 |  |  | $ | — |  |  |
1 The Company recognized a gain on termination of interest rate swaps for the year ended December 31, 2024.

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