Derivatives and Hedging Activities (Tables)
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9 Months Ended |
Sep. 30, 2026 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Schedule of Fair Value of Derivative Financial Instruments as well as their Classification on Consolidated Balance Sheets |
The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets as of September 30, 2026 and December 31, 2025.
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As of September 30, 2026 |
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Derivative Assets |
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Derivative Liabilities |
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Notional Amount |
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Balance Sheet Location |
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Fair Value |
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Notional Amount |
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Balance Sheet Location |
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Fair Value |
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(in thousands) |
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Derivatives not designated as hedging instruments |
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Back-to-back interest rate swaps related to customer loans |
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$ |
59,099 |
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Other Assets |
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$ |
3,164 |
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$ |
59,099 |
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Other Liabilities |
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$ |
3,138 |
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Total derivatives not designated as hedging instruments |
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$ |
3,164 |
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$ |
3,138 |
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Derivatives designated as hedging instruments |
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Pay-fixed interest rate swap related to State of California time deposits |
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$ |
180,000 |
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Other Assets |
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$ |
853 |
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$ |
— |
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Other Liabilities |
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$ |
— |
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Interest rate cap related to trust preferred securities |
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26,000 |
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Other Assets |
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380 |
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— |
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Other Liabilities |
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— |
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Total derivatives designated as hedging instruments |
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$ |
1,233 |
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$ |
— |
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As of December 31, 2025 |
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Derivative Assets |
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Derivative Liabilities |
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Notional Amount |
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Balance Sheet Location |
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Fair Value |
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Notional Amount |
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Balance Sheet Location |
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Fair Value |
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(in thousands) |
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Derivatives not designated as hedging instruments |
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Back-to-back interest rate swaps related to customer loans |
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$ |
61,350 |
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Other Assets |
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$ |
2,579 |
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$ |
61,350 |
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Other Liabilities |
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$ |
2,568 |
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Total derivatives not designated as hedging instruments |
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$ |
2,579 |
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$ |
2,568 |
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Derivatives designated as hedging instruments |
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Pay-fixed interest rate swaps related to customer loans |
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$ |
175,000 |
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Other Assets |
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$ |
140 |
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$ |
— |
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Other Liabilities |
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$ |
— |
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Total derivatives designated as hedging instruments |
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$ |
140 |
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$ |
— |
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| Summary of Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income |
The table below presents the effect of cash flow hedge accounting on Accumulated Other Comprehensive Income for the three and nine months ended September 30, 2026 and 2025.
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Three Months Ended September 30, 2026 |
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Derivatives in Subtopic 815-20 Hedging Relationships |
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Amount of Gain or (Loss) Recognized in OCI on Derivative |
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Amount of Gain or (Loss) Recognized in OCI - Included Component |
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Amount of Gain or (Loss) Recognized in OCI - Excluded Component |
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Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income |
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Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income |
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Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Included Component |
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Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Excluded Component |
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(in thousands) |
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Derivatives in Cash Flow Hedging Relationships |
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Pay-fixed interest rate swap related to State of California time deposits |
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$ |
853 |
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$ |
853 |
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$ |
— |
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Interest Expense |
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$ |
— |
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$ |
— |
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$ |
— |
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Interest rate cap related to trust preferred securities |
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48 |
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48 |
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- |
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Interest Expense |
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(2 |
) |
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- |
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(2 |
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Total |
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$ |
901 |
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$ |
901 |
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$ |
— |
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$ |
(2 |
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$ |
— |
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$ |
(2 |
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Three Months Ended September 30, 2025 |
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Derivatives in Subtopic 815-20 Hedging Relationships |
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Amount of Gain or (Loss) Recognized in OCI on Derivative |
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Amount of Gain or (Loss) Recognized in OCI - Included Component |
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Amount of Gain or (Loss) Recognized in OCI - Excluded Component |
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Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income |
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Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income |
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Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Included Component |
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Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Excluded Component |
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(in thousands) |
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Derivatives in Cash Flow Hedging Relationships |
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Pay-fixed interest rate swaps related to customer loans |
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$ |
(94 |
) |
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$ |
(94 |
) |
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$ |
— |
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Interest Income |
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$ |
(241 |
) |
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$ |
(241 |
) |
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$ |
— |
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Total |
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$ |
(94 |
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$ |
(94 |
) |
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$ |
— |
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$ |
(241 |
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$ |
(241 |
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$ |
— |
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Nine Months Ended September 30, 2026 |
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Derivatives in Subtopic 815-20 Hedging Relationships |
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Amount of Gain or (Loss) Recognized in OCI on Derivative |
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Amount of Gain or (Loss) Recognized in OCI - Included Component |
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Amount of Gain or (Loss) Recognized in OCI - Excluded Component |
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Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income |
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Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income |
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Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Included Component |
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Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Excluded Component |
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(in thousands) |
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Derivatives in Cash Flow Hedging Relationships |
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Pay-fixed interest rate swap related to State of California time deposits |
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$ |
853 |
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$ |
853 |
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$ |
— |
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Interest Expense |
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$ |
— |
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$ |
— |
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$ |
— |
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Interest rate cap related to trust preferred securities |
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48 |
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48 |
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— |
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Interest Expense |
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(2 |
) |
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— |
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(2 |
) |
Pay-fixed interest rate swaps related to customer loans |
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(57 |
) |
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(57 |
) |
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— |
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Interest Income |
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82 |
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82 |
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— |
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Total |
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$ |
844 |
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$ |
844 |
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$ |
— |
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$ |
80 |
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$ |
82 |
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$ |
(2 |
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Nine Months Ended September 30, 2025 |
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Derivatives in Subtopic 815-20 Hedging Relationships |
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Amount of Gain or (Loss) Recognized in OCI on Derivative |
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Amount of Gain or (Loss) Recognized in OCI - Included Component |
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Amount of Gain or (Loss) Recognized in OCI - Excluded Component |
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Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income |
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Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income |
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Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Included Component |
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Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income - Excluded Component |
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(in thousands) |
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Derivatives in Cash Flow Hedging Relationships |
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Pay-fixed interest rate swaps related to customer loans |
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$ |
(139 |
) |
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$ |
(139 |
) |
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$ |
— |
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Interest Income |
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$ |
(734 |
) |
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$ |
(734 |
) |
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$ |
— |
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Total |
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$ |
(139 |
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$ |
(139 |
) |
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$ |
— |
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$ |
(734 |
) |
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$ |
(734 |
) |
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$ |
— |
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| Summary of Effect of Cash Flow Hedge Accounting on Consolidated Statements of Income |
The table below presents the effect of cash flow hedge accounting on the consolidated statements of income for the three and nine months ended September 30, 2026 and 2025.
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Location and Amount of Gain or (Loss) Recognized in Income on Cash Flow Hedging Relationship |
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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Interest Income |
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Interest Expense |
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Interest Income |
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Interest Expense |
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Interest Income |
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Interest Expense |
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Interest Income |
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Interest Expense |
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(in thousands) |
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Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 |
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Interest contracts |
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Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income |
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$ |
— |
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$ |
(2 |
) |
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$ |
(241 |
) |
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$ |
— |
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$ |
82 |
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$ |
(2 |
) |
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$ |
(734 |
) |
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$ |
— |
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Amount of gain or (loss) reclassified from accumulated other comprehensive loss into income - included component |
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— |
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— |
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(241 |
) |
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— |
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82 |
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— |
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(734 |
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— |
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| Effect of Derivative Financial Instruments that are Not Designated as Hedging Instruments on Consolidated Statements of Income |
The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the consolidated statements of income for the three and nine months ended September 30, 2026 and 2025.
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Derivatives Not Designated as Hedging
Instruments under Subtopic 815-20 |
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Location of Gain or (Loss) Recognized in Income on Derivative |
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Amount of Gain or (Loss) Recognized in Income on Derivative |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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(in thousands) |
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Back-to-back interest rate swaps related to customer loans |
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Other income |
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$ |
7 |
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$ |
(1 |
) |
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$ |
14 |
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$ |
(29 |
) |
Total |
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$ |
7 |
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$ |
(1 |
) |
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$ |
14 |
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$ |
(29 |
) |
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| Summary of Gross Presentation, Effects of Offsetting and a Net Presentation of Derivatives |
The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of September 30, 2026 and December 31, 2025. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The derivative assets are located within the prepaid and other assets line item on the consolidated balance sheets and the derivative liabilities are located within the accrued expenses and other liabilities line item on the consolidated balance sheets.
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Offsetting of Derivative Assets |
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As of September 30, 2026 |
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Gross Amounts of Recognized Assets |
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Gross Amounts Offset in the Statement of Financial Position |
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Net Amounts of Assets presented in the Statement of Financial Position |
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Gross Amounts Not Offset in the Consolidated Balance Sheets |
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Financial Instruments |
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Cash Collateral Received |
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Net Amount |
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(in thousands) |
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Derivatives |
|
$ |
4,397 |
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|
$ |
— |
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$ |
4,397 |
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|
$ |
— |
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$ |
3,890 |
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$ |
507 |
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Offsetting of Derivative Liabilities |
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As of September 30, 2026 |
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Gross Amounts of Recognized Liabilities |
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Gross Amounts Offset in the Statement of Financial Position |
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Net Amounts of Liabilities presented in the Statement of Financial Position |
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Gross Amounts Not Offset in the Consolidated Balance Sheets |
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Financial Instruments |
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Cash Collateral Received |
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Net Amount |
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|
|
(in thousands) |
|
Derivatives |
|
$ |
3,138 |
|
|
$ |
— |
|
|
$ |
3,138 |
|
|
$ |
— |
|
|
$ |
— |
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|
$ |
3,138 |
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Offsetting of Derivative Assets |
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|
As of December 31, 2025 |
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Gross Amounts of Recognized Assets |
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Gross Amounts Offset in the Statement of Financial Position |
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Net Amounts of Assets presented in the Statement of Financial Position |
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Gross Amounts Not Offset in the Consolidated Balance Sheets |
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Financial Instruments |
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Cash Collateral Received |
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Net Amount |
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|
|
(in thousands) |
|
Derivatives |
|
$ |
2,719 |
|
|
$ |
— |
|
|
$ |
2,719 |
|
|
$ |
397 |
|
|
$ |
1,938 |
|
|
$ |
384 |
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Offsetting of Derivative Liabilities |
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|
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|
As of December 31, 2025 |
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Gross Amounts of Recognized Liabilities |
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Gross Amounts Offset in the Statement of Financial Position |
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Net Amounts of Liabilities presented in the Statement of Financial Position |
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Gross Amounts Not Offset in the Consolidated Balance Sheets |
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Financial Instruments |
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Cash Collateral Received |
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Net Amount |
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|
|
(in thousands) |
|
Derivatives |
|
$ |
2,568 |
|
|
$ |
— |
|
|
$ |
2,568 |
|
|
$ |
397 |
|
|
$ |
— |
|
|
$ |
2,171 |
|
|