XML 29 R19.htm IDEA: XBRL DOCUMENT
v3.23.2

Note 11 - Derivative Financial Instruments | 6 Months Ended
--- | ---
Jun. 30, 2023
Notes to Financial Statements |
Derivative Instruments and Hedging Activities Disclosure [Text Block] |
11. | Derivative Financial Instruments
Fair Value Hedges The Company uses interest rate swaps to convert certain long term fixed rate loans to floating rates to hedge interest rate risk exposure. The Company uses hedge accounting in accordance with ASC 815, with the unrealized gains and losses, representing the change in fair value of the derivative and the change in fair value of the risk being hedged on the related loan, being recorded in the consolidated statements of income. The ineffective portions of the unrealized gains or losses, if any, are recorded in interest income and interest expense in the consolidated statements of income. The Company was required to pledge $0.8 million and $1.0 million of securities as collateral for these fair value hedges at June 30, 2023, and December 31, 2022, respectively. The table below identifies the notional amount, fair value and balance sheet category of the Company's interest rate swaps at June 30, 2023, and December 31, 2022 (in thousands):
|  | Notional Amount |  |  | Fair Value |  | Balance Sheet Category
June 30, 2023 |  |  |  |  |  |  |  |  |
Interest rate swaps |  | $ | 9,123 |  |  | $ | 1,101 |  | Other assets
December 31, 2022 |  |  |  |  |  |  |  |  |
Interest rate swaps |  | $ | 9,314 |  |  | $ | 1,096 |  | Other assets
Back-to-Back Loan Swaps The Company has interest rate swap loan relationships with customers to assist them in managing their interest rate risk. Upon entering into these loan swaps, the Company enters into offsetting positions with counterparties in order to minimize interest rate risk. These back-to-back loan swaps qualify as free standing financial derivatives with the fair values reported in other assets and other liabilities on the consolidated balance sheets. The Company was not required to post collateral at June 30, 2023 and December 31, 2022, related to these back-to-back swaps. The Company's counterparties were not required to pledge collateral at June 30, 2023 and December 31, 2022. Any gains and losses on these back-to-back swaps are recorded in noninterest income on the consolidated statements of income, and for the three and six months ended June 30, 2023, and June 30, 2022, no gain or loss was recognized. The table below identifies the balance sheet category and fair values of the derivative instruments designated as loan swaps at June 30, 2023, and December 31, 2022 (in thousands):
|  |  |  |  |  |  |  |  |  |  | Weighted Average |  |  | Weighted Average |
|  | Notional Amount |  |  | Fair Value |  | Balance Sheet Category |  | Receive Rate |  |  | Pay Rate |
June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer interest rate swaps |  | $ | 4,393 |  |  | $ | 51 |  | Other assets |  |  | 7.15 | % |  |  | 5.62 | %
Customer interest rate swaps |  |  | 4,393 |  |  |  | (51 | ) | Other liabilities |  |  | 5.62 | % |  |  | 7.15 | %
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer interest rate swaps |  | $ | - |  |  | $ | - |  | Other assets |  |  | 0.00 | % |  |  | 0.00 | %
Customer interest rate swaps |  |  | - |  |  |  | - |  | Other liabilities |  |  | 0.00 | % |  |  | 0.00 | %

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//815/tableOfContent + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration