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Derivatives
 9 Months Ended
Sep. 30, 2022
Derivatives [Abstract]  
Derivatives
6.
 
DERIVATIVES
 
The Company utilizes interest rate swap agreements
 
as part of its asset liability management strategy
 
to help manage
its interest rate risk exposure
 
.
 
The notional amount of
 
the interest rate swaps
 
do not represent actual
 
amounts exchanged
by the
 
parties.
 
The amounts
 
exchanged
 
are determined
 
by reference
 
to the
 
notional amount
 
and the
 
other
 
terms
 
of the
individual interest rate swap agreements.
 
The Company enters into interest rate swaps with its loan customers. The Company had
16
 
and
18
 
interest rate swaps
with
 
loan
 
customers
 
with
 
an
 
aggregate
 
notional
 
amount
 
of
 
$
34.6
 
million
 
and
 
$
39.2
 
million
 
at
 
September 30,
 
2022
 
and
December 31, 2021,
 
respectively.
 
These interest
 
rate swaps
 
mature between
 
2025 and
 
2051. The
 
Company entered
 
into
corresponding
 
and
 
offsetting
 
derivatives
 
with
 
third
 
parties.
 
The
 
fair
 
value
 
of
 
liability
 
on
 
these
 
derivatives
 
requires
 
the
Company to provide the counterparty
 
with funds to be held as collateral
 
which the Company reports as other
 
assets under
the Consolidated
 
Balance Sheets.
 
While these
 
derivatives represent
 
economic hedges,
 
they do
 
not qualify
 
as hedges
 
for
accounting purposes.
The following table reflects the Company’s customer-related
 
interest rate swaps at the dates indicated (in thousands):
Fair Value
Notional
Amount
Collateral
Amount
Balance Sheet Location
Asset
Liability
September 30, 2022:
Derivatives not designated as hedging instruments:
Interest rate swaps related to customer loans
$
34,635
$
1,260
Other assets/Other liabilities
$
5,254
$
5,254
December 31, 2021:
Derivatives not designated as hedging instruments:
Interest rate swaps related to customer loans
$
39,156
$
1,260
Other assets/Other liabilities
$
1,434
$
1,434