Derivatives

12 Months Ended

Dec. 31, 2024

Derivatives

Derivatives

12.  Derivatives

Interest Rate Swaps

The Company enters into interest rate swaps that allow commercial loan customers to effectively convert a variable-rate loan agreement to a fixed-rate loan agreement. Under these agreements, the Company simultaneously enters into a variable-rate loan and interest rate swap agreements with a customer. The Company then enters into a corresponding and offsetting swap agreement with a third party to hedge its exposure created by the customer agreements. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC Topic 815, Derivatives and Hedging, and are marked to market through earnings. The fair values of the swaps are recorded as both an asset and a liability, in other assets and other liabilities, respectively, in equal offsetting amounts for these transactions.  Accrued interest receivable and payable of $152 and $132 related to these swaps is recorded in other assets and other liabilities as of December 31, 2024 and 2023, respectively.

Summary information regarding these derivatives is presented below:

	December 31,			December 31,
	2024			2023
Notational amount	$	151,867		$	65,420
Fair value	$	6,458		$	5,343
Weighted average pay rates		5.48	%		5.06	%
Weighted average receive rates		6.67	%		7.49	%
Weighted average maturity (in years)		7.45			8.88
Number of Contracts		24			14

In addition, as of December 31, 2024, there were three contracted forward rate swaps with a notional value of $19,161 and a fair value of $285 with effective dates at various points in 2025. These forward swaps have a fixed weighted average pay rate of 6.28% and the related weighted average adjustable receive rates will be determined at the time the forward swaps become effective. As of December 31, 2023 there were five contracted forward rate swaps with a notional value of $35,326, a fair value of $935 and a fixed weighted average pay rate of 4.97%.