DERIVATIVES

12 Months Ended

Dec. 31, 2024

DERIVATIVES [Abstract]

DERIVATIVES

17. DERIVATIVES

The Company utilizes interest rate swap agreements as part of its asset-liability management strategy to help manage its interest rate risk position. These interest rate swaps are designated and qualify as fair value hedges and are entered into to reduce exposure to changes in fair value of fixed rate financial instruments. The notional amounts of the interest rate swaps do not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amounts and the other terms of the individual interest rate swap agreements.

The following table reflects the changes in fair value hedges included in the Consolidated Statements of Comprehensive Income (Loss) for the periods indicated (dollars in thousands):

		Year Ended December 31,
Interest Rate Contracts	Location	2024			2023			2022
Change in fair value of interest rate swaps hedging investment securities	Other noninterest expense	$	(1,133	)	$	(3,497	)	$	14,439
Change in fair value of hedged investment securities	Other noninterest expense		1,619			3,685			(14,607	)
Change in fair value of interest rate swaps hedging fixed rate loans	Interest income - Loans		57			(334	)		911
Change in fair value of hedged fixed rate loans	Interest income - Loans		24			335			(918	)

The following table reflects the fair value hedges included in the Consolidated Balance Sheets as of December 31 (dollars in thousands):

	2024				2023
	Notional Amount		Fair Value		Notional Amount		Fair Value
Included in other liabilities:
Interest rate swaps related to fixed rate loans	$	—	$	—	$	987	$	10
Interest rate swaps related to state and municipal securities		—		—		—		—
Included in other assets:
Interest rate swaps related to fixed rate loans		11,803		205		7,796		158
Interest rate swaps related to state and municipal securities		123,760		15,495		123,760		16,628

Mortgage banking derivatives

The net gains (losses) relating to free standing derivative instruments used for risk management are summarized below for the periods indicated (dollars in thousands):

		For the Year Ended December 31,
	Location	2024		2023			2022
Gain (loss) on mortgage banking derivatives	Net gain (loss) on sales of loans	$	264	$	(405	)	$	(1,109	)

The following table reflects the amount and fair value of mortgage banking derivatives in the Consolidated Balance Sheets as of December 31 (dollars in thousands):

	December 31, 2024				December 31, 2023
	Notional Amount		Fair Value		Notional Amount		Fair Value
Included in other assets:
Forward contracts related to mortgage loans held for sale	$	16,000	$	76	$	—	$	—
Interest rate lock commitments		12,937		222		16,887		444
Included in other liabilities:
Forward contracts related to mortgage loans held for sale	$	1,277	$	12	$	19,021	$	422
Interest rate lock commitments		—		—		—		—

The Company had received cash collateral of $17.0 million and $18.3 million to offset asset derivative positions on its interest rate swaps at December 31, 2024 and 2023, respectively. This amount is reported in other liabilities in the Consolidated Balance Sheets. The Company had advanced $1.1 million and $1.1 million to offset liability derivative positions on its interest rate swaps at December 31, 2024 and 2023, respectively. Additionally, the Company had advanced $270 thousand and $440 thousand on its mortgage forward contracts at December 31, 2024 and 2023, respectively. The advanced cash collateral amounts are reported in cash and due from banks in the Consolidated Balance Sheets.