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Interest Rate Derivatives - Cumulative Basis Adjustments for Fair Value Hedges (Details) - Interest Rate Derivatives [Member] - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Available for Sale Securities [Member]    
Derivative [Line Items]    
Average Notional Balance [1] $ 76,279 $ 76,303
Cumulative Amount of Fair Value Hedging Adjustment Included in The Carrying Amount of the Hedged Assets [1] 1,994 3,199
Loans Receivable [Member]    
Derivative [Line Items]    
Average Notional Balance [2] 132,246 133,765
Cumulative Amount of Fair Value Hedging Adjustment Included in The Carrying Amount of the Hedged Assets [2] $ 1,116 $ 2,887
[1] The $76.3 million carrying amount of hedged assets represents the hedge-adjusted amortized cost basis of individually evaluated municipal, private label, and GSE-backed securities designated as the underlying assets for the hedging relationships. The notional amount of the designated hedges were $78.2 million and $73.9 million at March 31, 2025 and December 31, 2024, respectively. The fair value of the derivatives (an unrealized gain, receivable from derivative counterparties) recorded in other assets resulted in a net asset position of $2.0 million and $3.2 million at March 31, 2025 and December 31, 2024, respectively. The Company's participation in fair value hedging transactions increased investment security interest income by $302,000 and $632,000 in the three month periods ended March 31, 2025 and March 31, 2024, respectively.
[2] The $132.2 million net carrying amount of hedged assets represents the hedge-adjusted amortized cost of a designated pool of residential
mortgages and the aggregate hedge-adjusted amortized cost of four specified purchased consumer loan pools. These pools of loans were
designated as the underlying assets for the hedging relationships in which the hedged underlying asset's notional amounts were the amortized cost projected to be remaining at the end of the contractual term of the hedging instruments. The amount of the designated hedged items were $133.4 million and $128.9 million at March 31, 2025 and December 31, 2024, respectively. At March 31, 2025, the fair value of the derivatives recorded in other assets (an unrealized gain, receivable from derivative counterparties) resulted in a net asset position of $1.1 million, recorded by the Company as a component of other assets. The Company’s participation in fair value hedging transactions increased interest income by $267,000 and $628,000, for the three month periods ended March 31, 2025 and March 31, 2024, respectively. Details of the two hedging strategies, in place at March 31, 2025 are presented below:

 

a.
On April 7, 2023 the Bank entered into an amortizing swap transaction with an initial notional amount of $100.0 million whereby
the Bank will receive 3-month SOFR rate monthly, based on the notional amount of the swap contract at the beginning of each month until the swap transaction expires in 2035. The notional amount of the swap declines monthly according to a predetermined amortization schedule and was $74.6 million at March 31, 2025. The Bank will pay a fixed rate of 3.208% to the contract's counterparty throughout the life of the contract based on each month's beginning notional balance. The fair value of this swap contract was $1.5 million at March 31, 2025.

 

b.
On December 7, 2023, the Bank entered into five fixed-pay interest rate swap contracts with a total notional amount of $50.0
million, whereby the Bank will receive 3-month SOFR monthly until the respective maturity dates of the contracts. The contracts
expire in annual increments on December 1 of 2025 ($5.0 million, fixed rate of 4.463%), 2026 ($5.0 million, fixed rate of 4.136%), 2027 ($10.0 million, fixed rate of 3.973%), 2028 ($15.0 million, fixed rate of 3.887%), and 2029 ($15.0 million, fixed rate of 3.845%). The fair value of these swap contracts in aggregate was a reduction of $377,000 at March 31, 2025.