DERIVATIVES |
9 Months Ended |
---|---|
Sep. 30, 2024 | |
Derivatives [Abstract] | |
Derivatives |
NOTE 5 – DERIVATIVES
The Company enters into derivative financial instruments to manage exposures
receipt or payment of future known and uncertain cash amounts, the value of
derivative financial instruments are used to manage differences in
expected cash receipts and its known or expected cash payments principally
Cash Flow Hedges of Interest Rate Risk
Interest rate swaps with notional amounts totaling $
30
subordinated debt.
2.50
% and receive a variable interest
rate based on three-month CME Term
For derivatives designated and that qualify as cash flow hedges of interest rate
accumulated other comprehensive income (“AOCI”) and subsequently
which the hedged transaction affects earnings. Amounts reported
will be reclassified to interest expense as interest payments are made on the
The following table reflects the cash flow hedges included in the consolidated
Statement of Financial
Notional
Fair
Weighted Average
(Dollars in Thousands)
Condition Location
Amount
Value
September 30, 2024
Interest rate swaps related to subordinated debt
Other Assets
$
30,000
$
4,444
5.8
December 31, 2023
Interest rate swaps related to subordinated debt
Other Assets
$
30,000
$
5,317
6.5
The following table presents the change in net gains (losses) recorded
the cash flow derivative instruments (interest rate swaps related to subordinated
30, 2024.
Change in Gain
Amount of Gain
(Loss) Recognized
(Loss) Reclassified
(Dollars in Thousands)
Category
in AOCI
from AOCI to Income
Three months ended September 30, 2024
Interest expense
$
(941)
$
377
Three months ended September 30, 2023
Interest expense
574
375
Nine months ended September 30, 2024
Interest expense
$
(652)
$
1,128
Nine months ended September 30, 2023
Interest expense
413
1,016
The Company estimates there will be approximately $
1.0
months.
The Company had a collateral liability of $
4.4
5.5
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