Derivatives

12 Months Ended

Dec. 31, 2025

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 $115 and $152 related to these swaps is recorded in other assets and other liabilities as of December 31, 2025 and 2024, respectively.

Summary information regarding these derivatives is presented below:

	December 31,
	2025			2024
Notational amount	$	240,092		$	151,867
Fair value	$	7,204		$	6,458
Weighted average pay rates		5.77	%		5.48	%
Weighted average receive rates		6.03	%		6.67	%
Weighted average maturity (in years)		5.41			7.45
Number of Contracts		42			24

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 had a fixed weighted average pay rate of 6.28% and the related weighted average adjustable receive rates were determined at the time the forward swaps became effective. There were no contracted forward rate swaps at December 31, 2025.