XML 59 R47.htm IDEA: XBRL DOCUMENT

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amount and Fair Value of Derivative Instruments Included on Company's Consolidated Balance Sheets on a net Basis

The following table reflects the notional amount and fair value of derivative instruments included on the Company’s Consolidated Balance Sheets on a net basis as of December 31, 2022 and 2021.


	As of December 31, 2022				As of December 31, 2021
			Estimated Fair Value				Estimated Fair Value
	Notional Amount		Gain (Loss) (1)		Notional Amount		Gain (Loss) (1)
	(Dollars in Thousands)
Derivatives designated as hedging instruments:
Fair value hedges:
Interest rate swaps related to fixed rate commercial real estate loans	$	20,000	$	1,101	$	20,000	$	(198	)
Total fair value hedges				1,101				(198	)
Cash flow hedges:
Interest rate swaps related to variable-rate money market deposit accounts		20,000		1,205		20,000		(472	)
Interest rate swaps related to FHLB advances		—		—		10,000		(104	)
Total cash flow hedges				1,205				(576	)
Total hedges designated as hedging instruments, net			$	2,306			$	(774	)

(1) Derivatives in a gain position are recorded as other assets and derivatives in a loss position are recorded as other liabilities in the consolidated balance sheets.

Schedule of Cumulative Basis Adjustments for Fair Value Hedges

The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges:


Location in the Consolidated Balance Sheet in Which the Hedged	Carrying Amount of the Hedged Assets		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets
Item is Included	December 31, 2022
	(Dollars in Thousands)
Loans and leases, net of allowance for loan and lease losses (1)	$	32,233	$	1,101

(1)

These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. As of December 31, 2022, the amortized cost basis of the closed portfolios used in these hedging relationships was $33.3 million, the cumulative basis adjustments associated with these hedging relationships were $1.1 million, and the amounts of the designated hedged items were $20 million.

Schedule of Hedging Derivative Instruments' Effect on Company's Consolidated Statement of Operations

The following table presents the effect of hedging derivative instruments on the Company’s Consolidated Statements of Operations.


	Location in the	Year Ended December 31,
	Consolidated Statements	2022			2021
	of Operations	(Dollars in Thousands)
Interest income	Interest and fees on loans	$	75		$	(253	)
Interest expense	Interest on deposits		56			(127	)
Interest expense	Interest on short-term borrowings		(5	)		(333	)
	Net increase (decrease) to income before income taxes	$	126		$	(713	)