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Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2026
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 entered into offsetting interest rate swaps 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. The fair value assets and liabilities of centrally cleared interest rate swaps are net of variation margin settled-to-market.

In March 2021, the Company terminated the last layer of 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 both the three and six months ended June 30, 2026 and 2025, 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 8.4 years as of June 30, 2026. The Company had amortization expense totaling $0.8 million and $1.8 million for the three and six months ended June 30, 2026, respectively, and $0.9 million and $1.7 million for the three and six months ended June 30, 2025, respectively, related to these previously terminated fair value hedges which 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 June 30, 2026 and December 31, 2025.

June 30, 2026December 31, 2025
(amounts in thousands)Notional
Amount		Fair
Value		Notional
Amount		Fair
Value
Asset Derivatives
Derivatives not designated as hedging instruments
Back-to-back swaps$62,606 $119 $45,050 $210 
Total contracts
$62,606 $119 $45,050 $210 
Liability Derivatives
Derivatives not designated as hedging instruments
Back-to-back swaps$62,606 $(119)$45,050 $(210)
Total contracts
$62,606 $(119)$45,050 $(210)

The fair value of interest rate swaps was estimated using a discounted cash flow method that incorporates current market interest rates as of the balance sheet date.

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 both June 30, 2026 and December 31, 2025. The Company pledged cash collateral of $0.1 million and $0.3 million to counterparties as security for its obligations related to these agreements as of June 30, 2026 and December 31, 2025, respectively.