v3.25.4
Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments Derivative Financial Instruments
Banking Derivative Financial Instruments:
We are exposed to changes in the fair value of certain of our fixed-rate assets due to changes in benchmark interest rates. We use interest rate swaps to manage our exposure to changes in fair value on these instruments attributable to changes a designated benchmark interest rate, such as SOFR. Interest rate swaps designated as fair value hedges involve the receipt of variable-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without the exchange of the underlying notional amount. The carrying amount of hedged loans receivable and available-for-sale securities as of December 31, 2025 and 2024 was $143,896 and $170,166, respectively. The cumulative amount of fair value hedge accounting adjustments included in the carrying amount of the hedged loans receivable as of December 31, 2025 and 2024 was $(4,835) and $(9,169), respectively. The cumulative amount of fair value hedge accounting adjustments included in the carrying amount of the hedged available-for-sale securities as of December 31, 2025 and 2024 was $(2,443) and $(4,285), respectively. The hedges were determined to be effective during all periods presented and we expect the hedges to remain effective during their remaining terms.
Derivatives not designated as hedges are not speculative and instead result from a service we provide to certain customers. We execute interest rate swaps with banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives that we execute with a third-party, such that we minimize our net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. These instruments are a component of prepaid expenses and other assets and accrued expenses and other liabilities.
The components of our banking derivative financial instruments consisted of the following as of December 31,:
Number of
Transactions		Expiration
Dates		Outstanding
Notional		Estimated
Fair
Value
2025
Derivative financial instruments designated as hedging instruments:
Assets:
Interest Rate Products322028-2036$149,092 $7,274 
Derivative financial instruments not designated as hedging instruments:
Assets:
Interest Rate Products642026-2037$698,702 $14,659 
Other42028$8,388 $7 
Liabilities:
Interest Rate Products642026-2037$698,702 $14,696 
Other62027-2029$52,568 $41 
2024
Derivative financial instruments designated as hedging instruments:
Assets:
Interest Rate Products362029 - 2034$175,967 $13,452 
Derivative financial instruments not designated as hedging instruments:
Assets:
Interest Rate Products572025 - 2037$502,080 $22,062 
Other12025$7,759 $— 
Liabilities:
Interest Rate Products572025 - 2037$502,080 $21,830 
Other52027 - 2028$38,756 $31 
We recorded gains and losses on banking derivatives assets as follows for the years ended December 31,:
202520242023
Recorded (loss) gain on banking derivative assets$(1,048)$10,118 $4,482 
Recorded gain (loss) on banking derivative liabilities$818 $(9,962)$(4,820)
For the years ended December 31, 2025, 2024 and 2023 our banking derivative financial instruments not designated as hedging instruments generated fee income of $2,218, $704 and $1,451, respectively.
Credit-risk-related Contingent Features:
We have agreements with each of our derivative counterparties that contain a provision where if we either default or are capable of being declared in default on any of our indebtedness, then we could also be declared in default on our derivative obligations.
We also have agreements with our derivative counterparties that contain a provision where if we fail to maintain our status as a well-capitalized institution, then our derivative counterparties have the right, but not the obligation to terminate existing swaps. As of December 31, 2025 and 2024, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $15,092 and $22,391, respectively. As of December 31, 2025 and 2024, we had minimum collateral posting thresholds with our derivative counterparties and have posted collateral of $7,120 and $5,890, respectively. If we had breached any of these provisions at December 31, 2025, we could have been required to settle our obligations under the agreements at their termination value of $15,092.
Mortgage Banking Derivative Financial Instruments:
The components of our mortgage banking derivative financial instruments consisted of the following as of December 31,:
Expiration
Dates		Outstanding
Notional		Estimated
Fair
Value
2025
Derivative financial instruments
Assets:
Interest rate lock commitments (IRLC)2026$57,215 $444 
Liabilities:
Forward MBS trades2026$116,500 $376 
Futures2026$94,400 $418 
2024
Derivative financial instruments
Assets:
Forward MBS trades2025$86,000 $464 
Interest rate lock commitments (IRLC)2025$44,701 $110 
Liabilities:
Futures2025$44,900 $1,002 
We recorded gains and losses on mortgage banking derivatives assets as follows for the years ended December 31,:
202520242023
Recorded gain (loss) on mortgage banking derivative assets$334 $928 $(857)
Recorded gain (loss) on mortgage banking derivative liabilities$1,264 $(4,370)$(642)