The fair value of derivative positions outstanding is included in accrued interest receivable and other assets and accrued interest payable and other liabilities in the accompanying consolidated balance sheets and in the net change in each of these financial statement line items in the accompanying consolidated statements of cash flows.

Interest Rate Derivatives. We utilize interest rate swaps, caps and floors to mitigate exposure to interest rate risk and to facilitate the needs of our customers. Our objectives for utilizing our currently outstanding derivative positions are described below:

We have entered into certain interest rate derivative contracts that are not designated as hedging instruments to accommodate the business needs of our customers. These derivative contracts relate to transactions in which we enter into an interest rate swap, cap and/or floor with a customer while at the same time entering into an offsetting interest rate swap, cap and/or floor with a third-party financial institution. In connection with each swap transaction, we agree to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, we agree to pay a third-party financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows our customer to effectively convert a variable rate loan to a fixed rate. Because we act as an intermediary for our customers, changes in the fair value of the underlying derivative contracts largely offset each other and do not significantly impact our results of operations.

The notional amounts and estimated fair values of interest rate derivative contracts outstanding are presented in the following table. The fair values of these contracts are estimated utilizing internal valuation methods with observable market data inputs, or as determined by the Chicago Mercantile Exchange (“CME”) for centrally cleared derivative contracts. CME rules legally characterize variation margin payments for centrally cleared derivatives as settlements of the derivatives' exposure rather than collateral. As a result, the variation margin payment and the related derivative instruments are considered a single unit of account for accounting and financial reporting purposes. Variation margin, as determined by the CME, is settled daily. As a result, derivative contracts that clear through the CME have an estimated fair value of zero as of June 30, 2025 and December 31, 2024.


	June 30, 2025			December 31, 2024
	Notional Amount	Estimated Fair Value		Notional Amount	Estimated Fair Value




Non-hedging interest rate derivatives:
Financial institution counterparties:
Loan/lease interest rate swaps – assets	821,359	$	39,336	1,213,519	$	63,001
Loan/lease interest rate swaps – liabilities	1,100,546	(21,782)		663,078	(9,068)
Loan/lease interest rate caps – assets	196,091	4,563		205,164	7,053
Customer counterparties:
Loan/lease interest rate swaps – assets	1,100,546	21,783		663,078	9,068
Loan/lease interest rate swaps – liabilities	821,359	(39,336)		1,213,519	(63,000)
Loan/lease interest rate caps – liabilities	196,091	(4,564)		205,164	(7,054)

Commodity Derivatives. We enter into certain commodity derivative contracts that are not designated as hedging instruments to accommodate the business needs of our customers. Upon the origination of a commodity derivative contract with a customer, we simultaneously enter into an offsetting contract with a third-party financial institution to mitigate our exposure to fluctuations in commodity prices. Because we act as an intermediary for our customers, changes in the fair value of the underlying derivative contracts largely offset each other and do not significantly impact our results of operations.

The notional amounts and estimated fair values of non-hedging commodity derivative contracts outstanding are presented in the following table. The fair values of these contracts are estimated utilizing internal valuation methods with observable market data inputs.


		June 30, 2025			December 31, 2024
	Notional Units	Notional Amount	Estimated Fair Value		Notional Amount	Estimated Fair Value
Financial institution counterparties:
Oil – assets	Barrels	9,247	$	47,032	7,097	$	27,471
Oil – liabilities	Barrels	6,324	(13,874)		4,768	(12,897)
Natural gas – assets	MMBTUs	26,784	5,880		25,454	3,804
Natural gas – liabilities	MMBTUs	39,267	(10,257)		26,082	(4,054)
Customer counterparties:
Oil – assets	Barrels	6,426	14,331		4,872	12,973
Oil – liabilities	Barrels	9,146	(45,885)		6,993	(26,753)
Natural gas – assets	MMBTUs	39,267	10,601		26,767	4,255
Natural gas – liabilities	MMBTUs	26,784	(5,808)		24,769	(3,600)

Foreign Currency Derivatives. We enter into foreign currency derivative contracts that are not designated as hedging instruments to accommodate the business needs of our customers and to mitigate our exposure to foreign currency. Upon the origination of a foreign currency derivative contract with a customer, we simultaneously enter into an offsetting contract with a third-party financial institution to mitigate our exposure to fluctuations in foreign currency exchange rates. Because we act as an intermediary for our customers, changes in the fair value of the underlying derivative contracts largely offset each other and do not significantly impact our results of operations. We also utilize foreign currency derivative contracts that are not designated as hedging instruments to mitigate the economic effect of fluctuations in foreign currency exchange rates on foreign currency holdings and certain short-term, non-U.S. dollar denominated loans. The notional amounts and fair values of non-hedging foreign currency derivative contracts are presented in the following table. The fair values of these contracts are estimated utilizing internal valuation methods with observable market data inputs.


		June 30, 2025			December 31, 2024
	Notional Currency	Notional Amount	Estimated Fair Value		Notional Amount	Estimated Fair Value
Financial institution counterparties:
Forward and option contracts – assets	EUR	8,000	$	454	—	$	—




Forward and option contracts – liabilities	EUR	8,000	(5)		—	—




Customer counterparties:
Forward and option contracts – assets	EUR	8,000	5		—	—




Forward and option contracts – liabilities	EUR	8,000	(454)		—	—

Gains, Losses and Derivative Cash Flows. For non-hedging derivative instruments, gains and losses due to changes in fair value and all cash flows are included in other non-interest income and other non-interest expense as presented in the table below.


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Non-hedging interest rate derivatives:
Other non-interest income	$	733	$	512	$	1,122	$	1,637
Other non-interest expense	—		3		(1)		3
Non-hedging commodity derivatives:
Other non-interest income	937		946		2,703		1,325
Non-hedging foreign currency derivatives:
Other non-interest income	—		—		55		11