v3.26.1
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. As of June 30, 2026, the Company anticipates reclassifying an estimated $130 thousand of pre-tax of deferred net gains from AOCI into earnings during the next 12 months. For the Company's accounting policy on derivatives, see Note 1. Significant Accounting Policies to the Consolidated Financial Statements in the 2025 Annual Report on Form 10-K.
The following table presents the notional amounts, fair values and classification on consolidated balance sheets of the Company's derivatives as of June 30, 2026 and December 31, 2025:
Derivative AssetsDerivative Liabilities
($ in thousands)Notional AmountBalance Sheet LocationFair ValueNotional AmountBalance Sheet LocationFair Value
June 30, 2026
Derivatives designated as hedging instruments:
Cash flow hedges:
Interest rate products$25,000 Other assets$142 $50,000 Other liabilities$339 
Total derivatives designated as hedging instruments$142 $339 
December 31, 2025
Derivatives designated as hedging instruments:
Cash flow hedges:
Interest rate products$— Other assets$— $75,000 Other liabilities$888 
Total derivatives designated as hedging instruments$— $888 

The following table presents the pre-tax changes in AOCI from cash flow hedges for the three and six months ended June 30, 2026 and 2025:

($ in thousands)
(Losses) Gains Recognized in AOCI Location of Gains (Losses) Reclassified from AOCI into EarningsAmount of Gains (Losses) Reclassified from AOCI into Earnings
Three Months Ended June 30, 2026
Interest rate products$(195)Interest expense on deposits$(103)
Total$(195)$(103)
Three Months Ended June 30, 2025
Interest rate products$(150)Interest expense on deposits$29 
Total$(150)$29 
Six Months Ended June 30, 2026
Interest rate products$(533)Interest expense on deposits$(198)
Total$(533)$(198)
Six Months Ended June 30, 2025
Interest rate products$(632)Interest expense on deposits$60 
Total$(632)$60 
The tables below present a gross presentation, the effects of offsetting, and a net presentation of the Company's derivatives as of June 30, 2026 and December 31, 2025. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the consolidated balance sheet:
Gross Amounts of Recognized AssetsGross Amounts Offset in the Balance SheetNet Amounts of Assets presented in the Balance SheetGross Amounts Not Offset in the Balance Sheet
($ in thousands)Financial InstrumentsCash Collateral ReceivedNet Amount
June 30, 2026
Derivatives assets$142 $— $142 $— $142 $— 
Total$142 $— $142 $— $142 $— 
December 31, 2025
Derivatives assets$— $— $— $— $— $— 
Total$— $— $— $— $— $— 
Gross Amounts of Recognized LiabilitiesGross Amounts Offset in the Balance SheetNet Amounts of Liabilities presented in the Balance SheetGross Amounts Not Offset in the Balance Sheet
($ in thousands)Financial InstrumentsCash Collateral PostedNet Amount
June 30, 2026
Derivatives liabilities$339 $— $339 $— $339 $— 
Total$339 $— $339 $— $339 $— 
December 31, 2025
Derivatives liabilities$888 $— $888 $— $888 $— 
Total$888 $— $888 $— $888 $—