DERIVATIVES

3 Months Ended

Mar. 31, 2024

DERIVATIVES

DERIVATIVES

13. DERIVATIVES

The Company may use interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The Company had no interest rate swaps as of March 31, 2024 and December 31, 2023.

In April 2023, the Company’s remaining interest rate swap with a notional amount of $20.0 million designated as a cash flow hedge on a short-term FHLB advance matured. Changes in the fair value of the swap were recorded in other comprehensive income. The interest rate swap was determined to be fully effective during the 2023 period and, as such, no amount of ineffectiveness was included in net income.

The effect of cash flow hedge accounting on accumulated other comprehensive income for the period ended December 31, 2023 was as follows:

(Dollars in thousands)	December 31, 2023
	Amount of Gain		Location of Gain	Amount of Gain
	Recognized in		Reclassified	Reclassified from
	OCI on Derivatives		from OCI into Income	OCI into Income
Interest rate contract	$	2	Interest expense on short-term borrowings and repurchase agreements	$	(269)
Total	$	2		$	(269)

The gain recognized into income for the cash flow hedging relationship on the Consolidated Statements of Income was $214,000 for the three months ended March 31, 2023.