v3.26.1
DERIVATIVES (Tables)
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of derivative instruments
The Company presents derivative position gross on the balance sheet. The following reflects the fair value of derivatives recorded on the Condensed Consolidated Balance Sheets as of the dates noted:
As of June 30, 2026As of December 31, 2025
(dollars in thousands)
Notional AmountFair ValueNotional AmountFair Value
Included in other assets:
Derivatives designated as hedges:
Interest rate swaps – cash flow hedge$200,000 $2,083 $— $— 
Interest rate swaps – fair value hedge200,000 1,899 — — 
Derivatives not designated as hedging instruments:
Interest rate swaps related to customer loans65,474 659 70,703 952 
Total included in other assets$4,641 $952 
Included in other liabilities:
Derivatives designated as hedges:
Interest rate swaps – cash flow hedge$— $— $250,000 $777 
Interest rate swaps – fair value hedge— — 200,000 719 
Derivatives not designated as hedging instruments:
Interest rate swaps related to customer loans65,474 684 70,703 976 
Total included in other liabilities$684 $2,472 
The effect of cash flow hedge accounting on Accumulated other comprehensive income were as follows:
Three Months Ended June 30,
20262025
(dollars in thousands)Location of Gain (Loss) Reclassified from OCI into IncomeAmount of Gain (Loss) Recognized in OCI on DerivativeAmount of Gain (Loss) Reclassified from OCI into IncomeAmount of Gain (Loss) Recognized in OCI on DerivativeAmount of Gain (Loss) Reclassified from OCI into Income
Interest rate swap - FHLB borrowings
Interest expense - Other borrowed funds$(1)$(1)$66 $60 
Interest rate swaps - Variable rate deposits
Interest expense - Deposits1,331 121 — — 
$1,330 $120 $66 $60 
Six Months Ended June 30,
20262025
(dollars in thousands)Location of Gain (Loss) Reclassified from OCI into IncomeAmount of Gain (Loss) Recognized in OCI on DerivativeAmount of Gain (Loss) Reclassified from OCI into IncomeAmount of Gain (Loss) Recognized in OCI on DerivativeAmount of Gain (Loss) Reclassified from OCI into Income
Interest rate swap - FHLB borrowings
Interest expense - Other borrowed funds$(6)$(25)$41 $119 
Interest rate swaps - Variable rate deposits
Interest expense - Deposits2,412 246 — — 
$2,406 $221 $41 $119 
The following amounts were recorded on the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges for the respective period (dollars in thousands):
June 30, 2026
Condensed Consolidated Balance Sheet line itemAmortized Cost of the Hedged AssetsAmortized Cost of Fair Value Hedging Included in the Carrying Amount of the Hedged Assets
Loans$410,528 $(1,885)
The effects of the fair value hedge relationships on the Condensed Consolidated Statements of Income were as follows:
Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)Location of Gain (Loss)2026202520262025
Interest rate swapInterest income - Loans$1,562 $— $2,834 $— 
LoansInterest income - Loans(1,465)$— (2,824)—