Derivatives

9 Months Ended

Sep. 30, 2023

Derivatives

Derivatives

Note 5— Derivatives

The Company enters into interest rate swap agreements (“swaps”) with commercial loan customers to provide a facility for customers to manage their interest rate risk. These swaps are matched in exact offsetting terms with swaps that the Company enters into with an independent third party. These swaps qualify as derivatives, but are not designated as hedging instruments.

The following tables summarize the Company’s swaps at September 30, 2023 and December 31, 2022.

	September 30, 2023
				Estimated	Weighted Average
		Notional		Fair	Years to	Receive		Pay
(Dollars in thousands)		Amount		Value	Maturity	Rate		Rate
Interest rate swap agreements:
Pay fixed/receive variable swaps	$	19,591	$	1,390	3.5 years	6.60	%	3.39	%
Pay variable/receive fixed swaps		19,591		(1,390)	3.5 years	3.39	%	6.60	%
Total interest rate swap agreements	$	39,182	$	—	3.5 years	5.00	%	5.00	%

	December 31, 2022
				Estimated	Weighted Average
		Notional		Fair	Years to	Receive		Pay
(Dollars in thousands)		Amount		Value	Maturity	Rate		Rate
Interest rate swap agreements:
Pay fixed/receive variable swaps	$	13,767	$	1,217	2.8 years	6.02	%	2.59	%
Pay variable/receive fixed swaps		13,767		(1,217)	2.8 years	2.59	%	6.02	%
Total interest rate swap agreements	$	27,534	$	—	2.8 years	4.31	%	4.31	%

The estimated fair value of the swaps at September 30, 2023 and December 31, 2022 were recorded in other assets and liabilities in the Consolidated Balance Sheets. The associated net gains and losses on the swaps are recorded in other income in the Consolidated Statements of Income.